The American oil and gas industry


One of the five barrels in the US are filled with oil from the oil fields producing less than 15 barrels a day. US is the world’s largest oil percent in 2014, has been at the side of their multinational companies a large amount of small and medium-sized oil and gas companies.

Besides the large number of small and medium-sized companies in Texas and other states, acting fund owned by an investment company in the market by purchasing producing oil fields, drives these fields, and even engage in drilling for new reserves.
The multinationals often drift fields side by side with the smaller companies. The larger companies often sell their fields with less production and concentrating activities on finding new and larger oilfields. There are good opportunities to develop an oil company if you have knowledge of local conditions or can find
cooperation with other independent oil producers.

Price Composition between oil companies
Price composition of services between the oil companies varies assuming an accepted pricing that can be said to be a standard. When oil companies are growing through the oil and gas they find is the search for new reserves are a vital part of any oil company in the market. This has led to a joint effort of the independent oil companies, since they alone do not have enough venture capital to invest in drilling. Therefore it is very common that several oil companies unite to jointly exploit an area. Normally, work is up a development program offered to other oil companies. It may be a simple hole but also large programs of more than 100 wells. The holder of the exploration, the operator handles everything from leasing the land, manage price negotiations, working out decisions, supervise drilling, put the oil / gas production, to negotiate deposition rates with refineries or energy. Material should be as comprehensive as possible, and as an example, geological maps, electromagnetic logs, 2D seismic surveys, 3D seismic surveys and historical figures from agencies on oil production in the area.

The following information is standard terms for exploitation programs. Industrial terms vary based on parameters such as the resulting net interest rate, the size and quality of land lease location and development potential. The conditions negotiated at each bore, and may vary from below but the cost of arrangements for
a typical development projects in the United States is:

1. Geological fee
It is a variable cost that covers development costs, development costs and sales. It covers management of the exploitation and the operator’s analysis of the project.

2. Lease Fee (Leasing)
All companies pay 100 percent of the cost of land lease fees. All others except the operator can aggregate maximum receive 75 percent
operating interest (WI) in the field. (The operator has normally at least 25 percent operating interest in the field without cost)

3. Drilling Cost
All companies pay 100 percent of the cost to drill to completion – the operator usually gets 25 percent at no cost. Then pay each one for his part in
accordance with the movement of interest.

4. Royalty
0.5-2 percent royalty (ORRI) paid to the geologists and engineers of the proceeds from the well.