Enhanced oil recovery is a process for ensuring optimum oil extraction from an oil well by adopting new and advanced scientific technologies. The term oil recovery indicates the process of extracting oil from oil well to the surface. The basic intention behind using enhanced oil recovery process or EOR is to obtain maximum oil from the oil reserve.
Basically the process of oil recovery consists of three stages. In the first stage or the primary stage, oil from the well will be extracted with the help of the natural pressure within the reservoir. The fluids that contain hydrocarbon formation are being commonly used to stimulate the oil wells at the first stage of oil extraction.
The process of extracting oil that remains in the well after the primary stage of oil extraction is then extracted through the secondary stage of oil recovery. Gas injection and water flooding are the commonly used techniques at this second stage of oil recovery.
It is in the tertiary recovery or the third stage of oil recovery that the enhanced oil recovery technology will be effectively utilized to get the maximum possible oil from the oil reservoir. Gas injection technology is the most commonly used enhanced oil recovery technology. It is the process by which natural gases like carbon dioxide, nitrogen or other similar gases that are capable of expanding or stimulating the oil well injected to the oil well whereby additional oil is pushed to the surface. Another advantage of using this EOR technology is that these gases are capable of brining maximum oil from the oil well by lowering the viscosity of the fluid in the well.
The use of carbon dioxide injection as the EOR technique has its own merits and demerits. The main advantage of using CO2 injection technique is that it can be stored away from the atmosphere and so it can be effectively used as a tool to combat the threat of global warming. But the additional oil that is extracted from the oil will add more carbon dioxide to the atmosphere while combustion and the benefits that we have achieved by offsetting CO2 will be of no use with this.
The other techniques used of EOR are the thermal recovery method and chemical injection method. Thermal recovery method makes use of steam to improve the flow of oil from the well. In chemical injection technology of EOR the polymers are injected to enhance the free flow of remaining oil from the oil reservoir. Detergent like surfactants are also being utilized by the petroleum plants to recover more oil from the oil well while adopting chemical injection method of enhanced oil recovery technique.
Only ten percent of the oil from the oil well will be able to be extracted at the preliminary stage of oil extraction. Twenty to forty percent of the total oil in the well will come out in the secondary stage whereas the new techniques involved in EOR technology ensures thirty to sixty percent of oil extraction of the total reserve. Therefore EOR technology enhances the life of an oil well.
petak, 20. ožujka 2009.
How to invest money: mutual funds or stocks?
The question has once come across every investors mind: Mutual funds or stocks? This question is mostly asked by the beginner who wants to start investing, but doesn't know where to put his or her money. What is the answer to the question? There is no correct answer, but it can be argued for either side. Determining whether to put your money in mutual funds or stocks depends on you. How you will determine which is best is what I'll show you.
Stocks are shares of ownership in a company. You can buy shares through a brokerage at the price per share. Historically, the stock market has averaged annual returns per year of 11 percent. Of all the different types of investments, stocks will give you the most for your money. However, stocks can also be the most volatile. Risk and return go hand-in-hand. In the long run history has shown that financial markets recover, so stocks should be considered investments for the long run.
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A mutual fund is a huge collected amount of money from a large group of investors that the mutual fund manager uses to buy lots of different stocks, bonds, and/or other assets that meet the company's investment criteria.
When you buy shares in the fund, you become a shareholder. When you give your money to the fund, you are giving your money to the expert money manager of the mutual fund.
Mutual funds give you diversification and expert money management which allows you to sit back and relax.
Your choice of whether to pick a stock or mutual fund, is based on comparing their risk, return, and their expenses. You should also look at the pros and cons of both mutual funds and stocks.
Mutual funds carry a low amount of risk. If you are a low risk taker, mutual funds may be for you. If you can't stand watching your money going up and down every day by large amounts, then invest in mutual funds. Why are mutual funds such safe and low risk investments? Because they diversify. They give your money a little taste of everything. The fund will invest your money in a number of different stocks in different industries. That way, a single company's depreciation can balance out with another company's appreciation.
Mutual funds are generally good investments for retiring, saving for college, or any other goal that needs time. If you have some money that you don't need anytime soon, and don't want to take too much risk or spend time tracking your investment, then invest your money into a mutual fund.
However, mutual funds do have their disadvantages. The biggest disadvantage to know about a mutual fund is that most mutual funds underperform the stock market's average (represented by the S&P 500 Index) every year. 90 percent of mutual funds, in the last decade, have underperformed the market. Think about it, all those "expert" money managers can't even beat the market.
"Mutual funds are boring!" That's what anxious investors who want to gain their wealth a little quicker say. They think of investing their money in stocks as an adventure and can live with price fluctuations, while they scowl at leaving their money in a snail speed mutual fund.
The beginner often sees what the expert overlooks. Who says you can't invest better than a fund manager? Regular people do it all the time. A blind folded monkey can throw darts at a stock listing and compete very well with the money mananger. While the fund manager is looking at all his numbers the common investor is using common sense.
Both mutual funds and stocks can be for long term investors. But over the longer period of time, the stocks will prevail over the underachieving mutual funds. Those who cling too tightly to the familiar deny themselves many opportunities. There is no progress without risk.
Stocks are shares of ownership in a company. You can buy shares through a brokerage at the price per share. Historically, the stock market has averaged annual returns per year of 11 percent. Of all the different types of investments, stocks will give you the most for your money. However, stocks can also be the most volatile. Risk and return go hand-in-hand. In the long run history has shown that financial markets recover, so stocks should be considered investments for the long run.
window.google_render_ad();
A mutual fund is a huge collected amount of money from a large group of investors that the mutual fund manager uses to buy lots of different stocks, bonds, and/or other assets that meet the company's investment criteria.
When you buy shares in the fund, you become a shareholder. When you give your money to the fund, you are giving your money to the expert money manager of the mutual fund.
Mutual funds give you diversification and expert money management which allows you to sit back and relax.
Your choice of whether to pick a stock or mutual fund, is based on comparing their risk, return, and their expenses. You should also look at the pros and cons of both mutual funds and stocks.
Mutual funds carry a low amount of risk. If you are a low risk taker, mutual funds may be for you. If you can't stand watching your money going up and down every day by large amounts, then invest in mutual funds. Why are mutual funds such safe and low risk investments? Because they diversify. They give your money a little taste of everything. The fund will invest your money in a number of different stocks in different industries. That way, a single company's depreciation can balance out with another company's appreciation.
Mutual funds are generally good investments for retiring, saving for college, or any other goal that needs time. If you have some money that you don't need anytime soon, and don't want to take too much risk or spend time tracking your investment, then invest your money into a mutual fund.
However, mutual funds do have their disadvantages. The biggest disadvantage to know about a mutual fund is that most mutual funds underperform the stock market's average (represented by the S&P 500 Index) every year. 90 percent of mutual funds, in the last decade, have underperformed the market. Think about it, all those "expert" money managers can't even beat the market.
"Mutual funds are boring!" That's what anxious investors who want to gain their wealth a little quicker say. They think of investing their money in stocks as an adventure and can live with price fluctuations, while they scowl at leaving their money in a snail speed mutual fund.
The beginner often sees what the expert overlooks. Who says you can't invest better than a fund manager? Regular people do it all the time. A blind folded monkey can throw darts at a stock listing and compete very well with the money mananger. While the fund manager is looking at all his numbers the common investor is using common sense.
Both mutual funds and stocks can be for long term investors. But over the longer period of time, the stocks will prevail over the underachieving mutual funds. Those who cling too tightly to the familiar deny themselves many opportunities. There is no progress without risk.
World Energy Predictions 2006-2030
The World Energy Outlook (WEO) is a yearly energy forecast published by the Organisation for Economic Co-operation and Development (OECD), and the International Energy Agency (IEA). The 2006 report urges the international community to invest heavily in energy efficiency in order to avoid a global economic crisis. Governments will need to invest at least $20 billion into the energy infrastructure over the next 25 years to meet the growing worldwide demand for electronic technologies and gadgets. Demand for oil and energy resources from industrialized nations like China are expected to almost double by the year 2030. The report also predicts that many nations will increase their use of nuclear power to meet growing energy needs.
Thanks to the intergovernmental role of the IEA, the World Energy Outlook is in a unique position to provide objective energy analysis and energy projections covering the entire world, grouped as: OECD (USA, Canada, Mexico, EU, Japan, Korea, Oceania), Developing Countries (China, India, Indonesia, Latin America, Brazil, Middle East, Africa) and transition economies (Russia and eastern Europe).The report is sectioned into three main parts:1. Reference ScenarioThe Reference Scenario presents projections for supply and demand of oil, gas, coal, renewables, nuclear and electricity to 2030. It also assesses energy-related carbon dioxide emissions. The projections incorporate the latest energy-market and price developments as well as macroeconomic conditions. It covers 21 separate regions and the world as a whole. Includes key assumptions, global energy trends, oil market outlook, gas market outlook, coal market outlook and power sector outlook.
2. Alternative Policy ScenarioThe Alternative Policy Scenario is built on policy measures such as energy efficiency and increased use of renewables and nuclear. The Alternative Policy Scenario contained in the WEO 2004 showed that there is a large scope for reducing energy consumption and CO2 emissions. To deepen the analysis of developing country potential, the WEO 2006 contains separate models and analysis for China, Russia, Brazil, India and Indonesia. The analysis also describes the cost implications of new policies. Outlines how to map a new energy future, assess the cost effectiveness of alternative policies, deepen global analysis by sector and how to go beyond the alternative policy scenario.
3. Focus on Key TopicsThis year’s report focuses on some key energy related topics. The report examines the global economic impact of high energy prices by looking at current trends in oil and gas investment. There is an emphasis on nuclear power and the likely worldwide expansion of this dangerous technology. Other key topics of the report is the potential of biofuels and energy for cooking in developing countries, as well as a focus on Brazil’s energy future.Some questions the 2006 report answers:
Is the economic reaction to high energy prices merely delayed?Is oil and gas investment on track?Are the conditions shaping up for a nuclear energy revival?Can biofuels erode the oil monopoly in road transport?Can 2.5 billion people in developing countries switch to modern energy for cooking?Is Brazil learning new lessons or teaching the world?
The WEO report contains two types of analysis:1. Detailed global energy projections covering supply and demand by fuel and sector to 2030 and beyond in even-numbered years. Also included are in-depth analysis on key countries: India, China, Russia and Brazil.
2. Special topics concentrating on timely issues and challenges facing the energy sector in odd-numbered years including: energy subsidies, uranium supply, hydrogen, CO2 sequestration, energy investment projections and the importance of the Middle East and North Africa region.
The IEA World Energy Outlook explores both possible energy futures: the under-invested, vulnerable and dirty future and the clean, clever and competitive future. It responds to the G8 by mapping a new energy future and contrasting it with current economic trends. The 2006 WEO report also shows how to change the energy economy and demonstrates the benefits of energy efficiency using extensive statistics, detailed projections, analysis and advice.Ordering Information: IEA Publications Bookshop
Thanks to the intergovernmental role of the IEA, the World Energy Outlook is in a unique position to provide objective energy analysis and energy projections covering the entire world, grouped as: OECD (USA, Canada, Mexico, EU, Japan, Korea, Oceania), Developing Countries (China, India, Indonesia, Latin America, Brazil, Middle East, Africa) and transition economies (Russia and eastern Europe).The report is sectioned into three main parts:1. Reference ScenarioThe Reference Scenario presents projections for supply and demand of oil, gas, coal, renewables, nuclear and electricity to 2030. It also assesses energy-related carbon dioxide emissions. The projections incorporate the latest energy-market and price developments as well as macroeconomic conditions. It covers 21 separate regions and the world as a whole. Includes key assumptions, global energy trends, oil market outlook, gas market outlook, coal market outlook and power sector outlook.
2. Alternative Policy ScenarioThe Alternative Policy Scenario is built on policy measures such as energy efficiency and increased use of renewables and nuclear. The Alternative Policy Scenario contained in the WEO 2004 showed that there is a large scope for reducing energy consumption and CO2 emissions. To deepen the analysis of developing country potential, the WEO 2006 contains separate models and analysis for China, Russia, Brazil, India and Indonesia. The analysis also describes the cost implications of new policies. Outlines how to map a new energy future, assess the cost effectiveness of alternative policies, deepen global analysis by sector and how to go beyond the alternative policy scenario.
3. Focus on Key TopicsThis year’s report focuses on some key energy related topics. The report examines the global economic impact of high energy prices by looking at current trends in oil and gas investment. There is an emphasis on nuclear power and the likely worldwide expansion of this dangerous technology. Other key topics of the report is the potential of biofuels and energy for cooking in developing countries, as well as a focus on Brazil’s energy future.Some questions the 2006 report answers:
Is the economic reaction to high energy prices merely delayed?Is oil and gas investment on track?Are the conditions shaping up for a nuclear energy revival?Can biofuels erode the oil monopoly in road transport?Can 2.5 billion people in developing countries switch to modern energy for cooking?Is Brazil learning new lessons or teaching the world?
The WEO report contains two types of analysis:1. Detailed global energy projections covering supply and demand by fuel and sector to 2030 and beyond in even-numbered years. Also included are in-depth analysis on key countries: India, China, Russia and Brazil.
2. Special topics concentrating on timely issues and challenges facing the energy sector in odd-numbered years including: energy subsidies, uranium supply, hydrogen, CO2 sequestration, energy investment projections and the importance of the Middle East and North Africa region.
The IEA World Energy Outlook explores both possible energy futures: the under-invested, vulnerable and dirty future and the clean, clever and competitive future. It responds to the G8 by mapping a new energy future and contrasting it with current economic trends. The 2006 WEO report also shows how to change the energy economy and demonstrates the benefits of energy efficiency using extensive statistics, detailed projections, analysis and advice.Ordering Information: IEA Publications Bookshop
Invest in an Oil Refinery Industry
The decision to invest in oil refining is a complex one, with manyfactors to consider. Government regulation, input prices, and outputprices all have a role to play in a long-term decision to invest in anincrease in capacity.In the United States especially, government regulation has played ahuge role in the profitability of oil refining. Many regulations havebeen introduced to improve air quality and prevent groundwaterpollution that have increased refining costs. A large number ofreformulated gasoline blends are required in many parts of the nation,which even vary over the course of the year based on seasonal changes. Environmental regulations and "not in my backyard" sentiments havealso made it extremely difficult to invest in additional refiningcapacity in the United States. In fact, no new refineries have beenbuilt since 1976.Recently, however, governments have shown considerable increasedinterest in promoting the development of new refineries. For example,the United States Congress is considering legislation to reduce theburden of environment regulations and to compensate oil companies fordelays resulting from unforeseen litigation and delays caused bygovernment authorities. Tax incentives relating to depreciation havealso been included in the Energy Bill.Input prices and availability play an important role because theycontribute significantly to the operating costs of a refinery. Highquality crude oil is increasingly harder to find. Middle Easternrefineries tend to have already refined oil once in less sophisticatedrefineries, leaving residual oil for many US refineries. This is amuch more difficult oil to process because it contains significantamounts of sulfur and heavy metals, and it must be heated in order toeven get it to flow into the refinery. These characteristics increaserefining costs.Output prices are also extremely important because they determine therefinery's revenue. As demand has increased for refined products,prices have risen, improving refinery margins. However, this has notalways been the case. A global excess of refining capacity resultedin many refineries being shut down. Many refineries in United Stateswere shut down in the early 1980s because they were unprofitable, anda second wave followed in the late 1980s and 1990s because ofcontinued poor profitability resulting from low gasoline prices. Oiland gas production has historically been far more profitable thanrefining and marketing, leading to a lack of interest in investing innew oil refining capacity.Given the considerable increase in refining margins in recent years,interest in investing in oil refining is increasing. Refineryutilization rates have increased significantly in recent years,increasing the risk of supply disruptions and keeping prices forrefined products high. Several existing refineries are planningsignificant expansions in the United States, and nontraditionalplayers, such as Virgin's Richard Branson, are considering enteringthe market. Branson believes the world needs as many as 20 new oilrefineries, which would indicate considerable room for expansion bymany players before margins would be adversely affected.When considering invest in oil refining, one must examine futuredemand, the availability and price of inputs, competitor activities,and future potential government regulations. Because an oil refineryis a long-term investment (typically requiring several years from thepreparation of engineering drawings to the start of operation, not tomention a multi-decade operating life), an investment climate thatlooks to be attractive for many years is critical. Global demandforecasts from the International Energy Agency suggest that as many as30-40 world scale refineries may be needed just by 2010 to preventconsiderable significant increases in prices of refined products. 50-70 world scale refineries would be needed to return refiningmargins to their historically lower levels. This suggests there isconsiderable room for error before excessive refinery investment wouldoccur globally, making such an investment more attractive.Reductions in sulfur appeared to be a major regulatory themeworldwide. In order to achieve this, demand for sweet crude oil willrise. Since Asian and European refineries have made less of aninvestment in sour crude refining capability than those in the UnitedStates, sweet crude will become even less available in the UnitedStates and even more expensive. A shortage of sweet crude and/or asecond rise in its price may make some marginal refineries in capableof producing low sulfur gasoline and diesel fuel, resulting in afurther decline in global refining capacity.Projected growth in China and India's demand for energy products playsa huge role in estimates of future demand. If the Goldman Sachsprojections for Indians owning 610 million automobiles, Chinese 514million automobiles, and Americans 233 million automobiles by 2050holds up, there will obviously be enormous demand for gasoline anddiesel fuels. Clearly, many more refineries would be required tosupply distillates to the world's drivers.It is always possible that the marketplace will overreact and too manyrefineries will be built or that a global economic slowdown will causethe growth projections to not pan out. Some speculations that globaloil production may be at or near its peak may also create insufficientsupplies of reasonably priced oil to allow a dramatic increase in thenumber of refineries. However, that could make existing refineriesmore valuable. Investors considering an investment in oil refiningmust incorporate data from many sources to formulate their ownforecasts of how supply and demand will interact with one another,along with the number of refineries, to determine refining margins. Many governments and private institutions make all kinds ofenergy-related forecasts that can be of considerable use, such asthose available in the sources below. I have collected severalresources you should find helpful in understanding the economics ofoil refining and how they may develop in the future.
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