Switching from oil to gas production in a depleting field

Author's accepted version (post-print).Available from 26/05/2020.We derive an optimal decision rule with regards to making an irreversible switch from oil to gas production. The approach can be used by petroleum field operators to maximize the value creation from a petroleum field with diminishing oil production and remaining gas reserves. Assuming that both the oil and gas prices follow a geometric Brownian motion we derive an analytical solution for the exercise threshold. We also propose an explicit solution for the option value that is new to the literature. Numerical examples are used to demonstrate the threshold and option value for a generic petroleum field. Both the threshold and option value solutions are relevant for application to other real options cases with similar features (e.g. other types of switching options or a perpetual spread option).acceptedVersio

How Pakistan is coping with the Challenge of High Oil Prices

The paper is a review of possible consequences and challenges presented by high oil prices in Pakistan. Pakistan is heavily dependent on imported fuels and this dependence is expected to increase even further in future given the depleting gas resources. The rising oil prices in the international market has had effected negatively balance of payment position as well as on the budgetary position of the country and contributed in creating inflationary pressures in the economy. For long run development oil will remain an important source of energy. The government should chalk out strategies for ensuring efficiency in use; and development, adequacy and reliability of supply. Unless appropriate steps are taken this trend of rising oil prices will further aggravate the negative impacts on the economy.Oil; Prices; Deregulation; Pakistan; Macro-economy

Obtaining Boiler Fuel Gas to Reduce Air Pollution: The Policy of the Federal Power Commission

Receptors interacting with the constant domain of immunoglobulins (Igs) have a number of important functions in vertebrates. They facilitate phagocytosis by opsonization, are key components in antibody-dependent cellular cytotoxicity as well as activating cells to release granules. In mammals, four major types of classical Fc receptors (FcRs) for IgG have been identified, one high-affinity receptor for IgE, one for both IgM and IgA, one for IgM and one for IgA. All of these receptors are related in structure and all of them, except the IgA receptor, are found in primates on chromosome 1, indicating that they originate from a common ancestor by successive gene duplications. The number of Ig isotypes has increased gradually during vertebrate evolution and this increase has likely been accompanied by a similar increase in isotype-specific receptors. To test this hypothesis we have performed a detailed bioinformatics analysis of a panel of vertebrate genomes. The first components to appear are the poly-Ig receptors (PIGRs), receptors similar to the classic FcRs in mammals, so called FcRL receptors, and the FcR gamma chain. These molecules are not found in cartilagous fish and may first appear within bony fishes, indicating a major step in Fc receptor evolution at the appearance of bony fish. In contrast, the receptor for IgA is only found in placental mammals, indicating a relatively late appearance. The IgM and IgA/M receptors are first observed in the monotremes, exemplified by the platypus, indicating an appearance during early mammalian evolution. Clearly identifiable classical receptors for IgG and IgE are found only in marsupials and placental mammals, but closely related receptors are found in the platypus, indicating a second major step in Fc receptor evolution during early mammalian evolution, involving the appearance of classical IgG and IgE receptors from FcRL molecules and IgM and IgA/M receptors from PIGR

Novel Coupling Smart Water-CO₂ Flooding for Sandstone Reservoirs; Smart Seawater-Alternating-CO₂ Flooding (SMSW-AGF)

CO2 flooding is an environmentally friendly and cost-effective EOR technique that can be used to unlock residual oil from oil reservoirs. Smart water is any water that is engineered by manipulating the ionic composition, regardless of the resulting salinity of the water. One CO2 flooding mechanism is wettability alteration, which meets with the main smart water flooding function. Injecting CO2 alone raise an early breakthrough and gravity override problems, which have already been solved using water alternating gas (WAG) using regular water. WAG is an emerging enhanced oil recovery process designed to enhance sweep efficiency during gas flooding. In this study, we propose a new method to improve oil recovery via synergistically smart seawater with CO2. This new method takes advantage of the relative strengths of both processes. We hypothesized that SW depleted in NaCl provided more oil recovery. We also added that depleting NaCl in seawater is not the end of the story; diluting divalent cations/anions in the seawater depleted in NaCl provides higher oil recovery. Injecting smart seawater depleted in NaCl with diluted Ca2+ and CO2 resulted in a high oil recovery percentage among the other scenarios. Thus, the above water design was applied as a WAG in three cycles, which resulted in a much higher oil recovery of 24.5% of the OOIP. This improved heavy oil recovery is a surprising and promising percentage. The spontaneous imbibition agreed with the oil recovery results. This study sheds light on how manipulating ions in the water used in WAG can significantly enhance oil recovery

Novel Coupling Smart Water-CO₂ Flooding for Sandstone Reservoirs

CO2 flooding is an environmentally friendly and cost-effective EOR technique that can be used to unlock residual oil from oil reservoirs. Smart water is any water that is engineered by manipulating the ionic composition, regardless of the resulting salinity of the water. One CO2 flooding mechanism is wettability alteration, which meets with the main smart water flooding function. Injecting CO2 alone increases the likelihood of an early breakthrough and gravity override problems, which have already been solved using water-alternating-gas (WAG) using regular water. WAG is an emerging enhanced oil recovery process designed to enhance sweep efficiency during gas flooding. In this study, we propose a new method to improve oil recovery via synergistically smart brine with CO2. This new method takes advantage of the relative strengths of both processes. We hypothesized that brine depleted in NaCl provides more oil recovery. We also determined that depleting NaCl in brine is not the end of the story; diluting divalent cations/anions in the brine depleted in NaCl provides higher oil recovery. Injecting smart brine depleted in NaCl with diluted Ca2+ and CO2 resulted in a high oil recovery percentage among the other scenarios. Thus, the above water design was applied as a WAG in three cycles, which resulted in a much higher oil recovery of 24.5% of the OOIP. This improved heavy-oil recovery is a surprising and promising result. The spontaneous imbibition agreed with the oil-recovery results. This study sheds light on how manipulating ions in the water used in WAG can significantly enhance oil recovery

Tradable Permits in Developing Countries: Evidence from Air Pollution in Santiago, Chile

Santiago was one of the first cities outside the OECD to implement a tradable permit program to control air pollution. This paper looks closely at the program’s performance over the past ten years, stressing its similarities and discrepancies with trading programs implemented in developed countries, and analyzing how it has reacted to regulatory adjustments and market shocks. Studying Santiago’s experience allows us to discuss the drawbacks and advantages of applying tradable permits in less developed countries.air pollution, environmental policy, tradable permits, developing countries

Macroeconomic framework for an oil-based economy : the case of Bahrain

Bahrain's economy is characterized by producer and consumer subsidies and, possibly misaligned currency. These subsidies have resulted in lower savings rates than would be consistent with the country's endowment in oil and gas. In addition, the misaligned real exchange rate has encouraged imports, at the same time creating incentives biased against the non-oil tradable sectors. So, Bahrain's economy remains largely dependent on a rapidly depleting hydrocarbon resource base. The authors espouse a macroeconomic consistency framework to focus on the behavior of Bahrain's economy along two paths. Part one is based on the assumption that the government's present macroeconomic policy will continue. In that case, the solution exhibits bubbles - fiscal and current account imbalances that would be unsustainable over time. Meanwhile, real appreciation of the dinar would suppress non-oil exports. As a result, the need for foreign borrowing would be more pressing. In an attempt to restore the equilibrium, the government would need to contain aggregate demand by compressing imports and investment, thereby worsening the economic situation. Path two is based on a reform strategy that includes policies to raise the domestic savings rate, improve the fiscal situation (by rationalizing expenditures and introducing income taxes and cost recovery measures), and correct the misaligned exchange rate. The results show that the expenditure-switching effect of the exchange rate alignment would shift resources in favor of the tradable sectors. Non-oil GDP and exports would register high growth rates while economic diversification, in the context of a growing and more dynamic economy, would foster investment efficiency. This would help Bahrainis maintain a high standard of living as the oil income dries up, without too much loss of consumption for the present generation.Economic Stabilization,Economic Theory&Research,Environmental Economics&Policies,Banks&Banking Reform,Macroeconomic Management

Multilateral Trade Measures in a Post-2012 Climate Change Regime?: What Can Be Taken from the Montreal Protocol and the WTO?

The climate-trade nexus gains increasing attention as governments are taking great efforts to forge a post-2012 climate change regime to succeed the Kyoto Protocol. This raises the issues of the scope of trade-related measures and of when and how they could be used. This paper discusses how far trade-related measures should be incorporated in that context. Drawing on an analogy to the Montreal Protocol and comparing developing country’s climate mitigation and adaptation needs with the funding available, the paper argues that such measures should initially be applied only among Annex I or II countries. To discipline the use of unilateral trade measures at the international level, the paper emphasizes a need to define comparable climate efforts. Moreover, the Lieberman-Warner bill in the U.S. Senate - taken as a proxy for future U.S. climate legislation - is assessed, and found to be neither effective nor likely to be WTO-consistent. The paper is concluded by arguing that, in order to encourage developing countries to do more to combat climate change, developed countries should focus on carrots. Sticks can be incorporated, but only if they are credible and realistic and serve as a useful supplement to push developing countries to take actions or adopt policies and measures earlier than would otherwise have been the case.Post-2012 climate negotiations, Trade-related measures, Lieberman-Warner bill, WTO, Montreal Protocol, Developing countries, United States

Transportation Life Cycle Assessment Synthesis: Life Cycle Assessment Learning Module Series

The Life Cycle Assessment Learning Module Series is a set of narrated, self-advancing slideshows on various topics related to environmental life cycle assessment (LCA). This research project produced the first 27 of such modules, which are freely available for download on the CESTiCC website http://cem.uaf.edu/cesticc/publications/lca.aspx. Each module is roughly 15- 20 minutes in length and is intended for various uses such as course components, as the main lecture material in a dedicated LCA course, or for independent learning in support of research projects. The series is organized into four overall topical areas, each of which contain a group of overview modules and a group of detailed modules. The A and α groups cover the international standards that define LCA. The B and β groups focus on environmental impact categories. The G and γ groups identify software tools for LCA and provide some tutorials for their use. The T and τ groups introduce topics of interest in the field of transportation LCA. This includes overviews of how LCA is frequently applied in that sector, literature reviews, specific considerations, and software tutorials. Future modules in this category will feature methodological developments and case studies specific to the transportation sector