Welcome to Exploration - A Division Of Coastal Petro LLC located in our Houston Texas Office. Bringing our clients better resources.

 

Types of Oil and Gas Reserves

The availability of oil resources is correlated with market price and technology, but like many resources quality (often measured in level of concentration) is inversely proportional with quantity. High quality oil and gas resources have mostly been tapped leaving more marginal resources such as tar sands and gas shales to be considered. Still, extracting low quality resources is an expensive and technically intensive endeavor.

Petroleum Supply and Demand

The oil industry is oligopolistic both in its supply, demand, control and in its functional and geographical concentration. The demand is controlled by a few very large multinational conglomerates, each having a production and distribution system composed of refineries, storage facilities, distribution centers and at the end of the supply chain, gas stations. The supply is controlled by a few countries where the oil industry is often nationalized or by the OPEC umbrella, which regulates about 37% of the global oil production.

 

Coastal Petro LLC can provide alternative resources to better serve our clients.

Oil and gas are found in the depths below ground. They have been waiting for us for millions of years. So it is necessary to go and look for them, and to do that there is only one way: to dig until you reach the deposits. These deposits are deeply buried, often several kilometres underground. Wielding a pick is not sufficient to make the oil gush! We use the technique of drilling. From the surface we can try to guess where the deposits are and propose hypotheses. But we have data that exists and can reached them by drilling, until the hypotheses have been verified. Exploratory drilling is very expensive. It is better not to make a mistake when deciding but to call our company to assist in providing the data! There are several ways of knowing where to drill. Certain techniques even allow us to see below ground. It is by putting together the ideas and the work of a whole team that we can maximise the chances of success. After the exploratory drilling we decide, according to the results obtained, to continue or to stop the work in that area.

 

Reserves and Total Resources

Considering the finite aspect of the world, there is a fixed quantity of resources, often referred as total resources. Based upon what has been discovered and its cost of recovery, only a segment of the total resources can be considered as reserves. Thus, reserves are resources that are available under current market conditions (cost and technology). A significant amount of resources could be known to be present, but if the costs of their extraction and transformation is prohibitive, they will not be used, as they are considered sub-economic. A growth in the price of a resource (mainly due to scarcity and growing demand) can increase the quantity of resources that are recoverable in addition to technological improvements enabling resources that were not previously recoverable to become recoverable. Exploration can also identify resources that can either be immediately recoverable or could potentially be if investments were made. Some resources can be considered potentially unrecoverable since they they exist in concentrations and/or locations that are unlikely to ever available.


For petroleum, most of the exploration cycle is completed, implying that it is unlikely that additional reserves of significance are going to be found. The question of cost of recovery remains as scarcity (peak oil) has become a strong force in growing prices. Under such circumstances, new resources, such as tar sands, can become available

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E-mail: info@coastalpetro.com