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Value Chain for Oil and Gas
- Land
- Mineral rights
- Establishing a legal framework
- Geological data
- Exploration concession auction
- Exploration
- Production concession auction
- Test drilling
- Production drilling
- Pipelines
- Storage
- Royalties
- Flares
- Air pollution (flares, gases)
- Water and ground pollution (oil)
- Oil field supplies
- Drill casing
- Drill mud
- Drill pipe
- Drill bits
- Pumps
- Derricks
- People
- People services – hotels / entertainment
- People services – food / water / clothing
- Oil storage
- Oil export terminals
- Crude oil transport – tankers
- Crude oil transport - pipelines
- Oil import terminals
- Oil storage
- Pollution
- Refining
- Refined product storage
- Refined product transport – pipeline
- Refined product transport – tanker truck
- Refined product transport – tanker ship
Value Chain for Oil and Gas
- Land ... Traditionally an assets of the community and the people ... now the basis of a culture of property rights based on new laws
- Mineral rights .. Under modern law are deemed to belong to the nation
- Establishing a legal framework
- Geological data ... This is the key to getting results from investment in exploration and drilling.
- Exploration concession auction ... This is the key to getting wealth flows accruing to national interests .
- How is this received?
- How is this accounted for?
- A necessary investment.
- How is this paid?
- Exploration ... A necessary investment
- Production
- Concession auction ...This is a second key to getting wealth flows accruing to national interests .
- How is this received? How is this accounted for? A necessary investment.
- How is this paid?
- Test drilling ... A necessary investment
- Production drilling ... A necessary investment
- Pipelines ... A necessary investment
- Storage tanks ... A necessary investment
- Item
- Community
- National Interests
- Local Investors
- External investors
- Royalties ... How is this received and accounted for? // How is this calculated? // How is this paid?
- Flares ... air pollution ... Pollutes the local area ... Cheapest way of handling gas that cannot be processed
- Water and ground pollution (oil) ... Pollutes the land, pollutes the water. ... Kills the fish ... Destroys livelihood.
- Oil field supplies ... Drill casing // Drill mud // Drill pipe // Drill bits // Pumps // Derricks
- Opportunity for others to be suppliers .. Need to be purchased and used all the time
- People ... Few local people have training and experience needed for the available work ... Some employment generated in the services and support businesses ... Most critical staff are international and very well paid
- People services ... hotels / entertainment //
- Opportunities for local business to provide services
- People services – food / water / clothing
- Opportunities for local business to provide services
- Oil storage ... A necessary investment ... Oil export terminals A necessary investment
- Export taxes, fees ... How is this received? ... How is this paid?
- Crude oil transport – tankers ... A necessary investment
- Crude oil transport - pipelines ... A necessary investment
- Oil import terminals ... A necessary investment
- Oil storage ... A necessary investment
- Pollution ... Local pollution a matter of course ... nobody cares
- Expensive ... very low public tolerance of pollution in any
- Item
- Community
- National Interests
- Local Investors
- External investors
- Refining
- A necessary investment
- Refined product storage
- A necessary investment
- Refined product transport – pipeline ... A necessary investment
- Refined product transport – tanker truck ... A necessary investment
- Refined product transport – tanker ship ... A necessary investment
- Distribution depots ... A necessary investment
- Gas stations ... A necessary investment
Profiting from the Value Chain for Oil and Gas
- Item
- Community
- National Interests
- Local Investors
- External investors
Case A Case B Case A Case B Case A Case B Case A Case B
- Land
- Mineral rights
- Establishing a legal framework
- Geological data
- Exploration concession auction
- Exploration
- Production concession auction
- Test drilling
- Production drilling
- Pipelines
- Storage
- Royalties 100
- Flares
- Air pollution (flares, gases) -10 0 0 +10
- Water and ground pollution (oil) -10 +10
- Oil field supplies
- Drill casing
- Drill mud
- Drill pipe
- Drill bits
- Pumps
- Derricks
- People
- People services – hotels / entertainment
- People services – food / water / clothing
- Oil storage
- Oil export terminals
- Item
- Community
- National Interests
- Local Investors
- External investors
Case A Case B Case A Case B Case A Case B Case A Case B
Value chaion ... oil
- Crude oil transport – tankers
- Crude oil transport - pipelines
- Oil import terminals
- Oil storage
- Pollution
- Refining
- Refined product storage
- Refined product transport – pipeline
- Refined product transport – tanker truck
- Refined product transport – tanker ship
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