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Figure 17-4 shows first the life cycle of the asset under present technology, as indicated by the curve F 1. With present technology, the exploration phase covers 10 years (with negative cash flows), while the development and production period lasts for about 15 years, up to exhaustion at about year 27.

Prospects for these offshore deposits would be greatly improved by advances in drilling technology under the difficult conditions found in very deep water.

An advance in this technology, portrayed as curve F 2 , would extend the life cycle of the asset and vastly enhance financial returns: the exploration phase would be shorter, the development and production phases would be longer, and exhaustion of the deposit could be pushed out 5 years or more.

Of course, offshore drilling involved environmental risks that may cause host countries and foreign oil firms to have some second thoughts about undertaking very expensive and difficult-to-manage deepwater deposits. These risks become much in evidence after the May 2010 oil spill in waters off the Gulf of Mexico, involving British petroleum and several other firms.

Capturing benefits from energy endowments for emerging nations

As earlier noted no emerging nation, even those with large NOCs such as China’s CNooc or Brazil’s Petrobras has the technology to tap all available hydrocarbon sources, especially the relatively inaccessible and expensive newly diverse shale and pre-sal deposits and deposits lying under 10,000 feet of salt water.

For both types of deposits, there will be for some time need for foreign technology and capital to get hydrocarbons out of the shale, or out of deepwater deposits. That being the case, how can emerging nations best protect their interests in dealing with foreign firms such as Exxon, Chevron, Statoil, and Total.

One option would be to merely hire the firms to bring their exploration and drilling technology to the table and pay just for the technology? Ecuador attempted to do this in 1981. The State Oil Co. asked the author to advise them on whether or not they could just pay the foreign oil companies just to bring their technology capital, but with no share of any oil produced. It was clear that this would not work, for at least two reasons:

  1. Large oil companies are organized to be big oil companies. They do not see themselves of simply sellers of technology or suppliers of the billions of dollars of capital required for oil exploration and development. They seek a share of oil or gas produced. They are, after all, oil companies.
  2. For many emerging nations, such as Ecuador, Thailand, Colombia, the revenues of the oil companies are as big or usually even bigger than your EDP. That meant they are better able, or at least as able, to shoulder the major risks in all oil business:
    1. Market risk (what will be the price of oil internationally 2-5 years down the road, given volatile energy markets such as the world has experienced for decades).
    2. Technological risk – typical oil and gas projects today run into several billions of dollars. But there is no guarantee that commercial reserves will be found when this money is spent.

Questions & Answers

Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
what school?
biomolecules are e building blocks of every organics and inorganic materials.
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
sciencedirect big data base
Introduction about quantum dots in nanotechnology
Praveena Reply
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
Damian Reply
absolutely yes
how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
characteristics of micro business
for teaching engĺish at school how nano technology help us
Do somebody tell me a best nano engineering book for beginners?
s. Reply
there is no specific books for beginners but there is book called principle of nanotechnology
what is fullerene does it is used to make bukky balls
Devang Reply
are you nano engineer ?
fullerene is a bucky ball aka Carbon 60 molecule. It was name by the architect Fuller. He design the geodesic dome. it resembles a soccer ball.
what is the actual application of fullerenes nowadays?
That is a great question Damian. best way to answer that question is to Google it. there are hundreds of applications for buck minister fullerenes, from medical to aerospace. you can also find plenty of research papers that will give you great detail on the potential applications of fullerenes.
what is the Synthesis, properties,and applications of carbon nano chemistry
Abhijith Reply
Mostly, they use nano carbon for electronics and for materials to be strengthened.
is Bucky paper clear?
carbon nanotubes has various application in fuel cells membrane, current research on cancer drug,and in electronics MEMS and NEMS etc
so some one know about replacing silicon atom with phosphorous in semiconductors device?
s. Reply
Yeah, it is a pain to say the least. You basically have to heat the substarte up to around 1000 degrees celcius then pass phosphene gas over top of it, which is explosive and toxic by the way, under very low pressure.
Do you know which machine is used to that process?
how to fabricate graphene ink ?
for screen printed electrodes ?
What is lattice structure?
s. Reply
of graphene you mean?
or in general
in general
Graphene has a hexagonal structure
On having this app for quite a bit time, Haven't realised there's a chat room in it.
what is biological synthesis of nanoparticles
Sanket Reply
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Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
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