LSAW steel pipe heat affected zone, and the quality of welded heat-affected zone is the weak link. As of the writing of this update, when swabbing, the data confirms the well artificially flows at a rate of approximately 90-110 barrels of fluid per day in the zone between 16,415 and 16,500 ft. The Oil & Gas Journal (OGJ) estimates that at the beginning of 2009, worldwide reserves were 1.34 trillion barrels of oil and 6,254 trillion cubic feet (Tcf) of natural gas. 0.12 under. During first quarter of 1994, how­ever, increased demand due in part to harsh weather conditions, pushed up Chicago City Gate natural gas prices substantially relative to NYMEX. That is, unlike an ounce of gold, a barrel of crude oil in London may not be the same thing as a barrel of crude oil in Chicago. Inaccurate price information may cause published index prices to respond differently to market conditions as compared to true transactions prices.

The NYMEX natural gas contract settles to the Henry Hub price. It is elementary to restate that the Federal Government of Nigeria is the owner of the entire property in and control of all minerals, mineral oils and natural gas in under or upon any land or territory of Nigeria. The lack of price transparency may increase basis risk for hedged natural gas or oil positions. While the price of oil may be stable on the world market, a pipeline disruption or an excessively cold winter in a local market will cause the basis between that market and the broad market to widen substantially. Because of a lack of price transparency, the potential exists to alter survey prices for economic gain. I believe that prices for refined commodities are still going to show a downwards trend for the next while, if market conditions continue with doubts about economic recovery. There’s still a thought out there amongst speculators out there that refined commodities are a place to cut your losses.

“While oil prices dropped feverishly, refined commodities didn’t go down as far as one would expect. Gasoline numbers are taking the biggest drop, now showing down by 6.1 cents a litre to consumers when the Public Utilities Board makes the adjustments early Thursday morning. Now you see why oil is a big business! Drilling rigs are massive structures which are used to drill hole for water, oil or natural gas. Rotation refers to the rotation of drill pipes which in turn rotates the drill bit deep down the hole and cuts the formation. “Heating and stove oils show a drop of 2.98 cents per litre coming for Thursday, while diesel is down by 3.7 cents. “The havoc and doubt about the world economy and how well the economy has actually been doing started the drop In oil prices that will result in a break to consumers this week”, Murphy said.

Shocks to supply, unexpected weather patterns, or market structure influences significantly affect the term structure of energy prices. However, if drilling results are not positive, it can adversely affect the value of your minerals. For example you could sell 75% of your minerals and maintain a 25% interest in future drilling (if there is even oil!). So even if you have the job they then recommend that you sort your affairs out with recommended companies or perhaps will ask you for a fee for placing you. Thus, even during an event of extreme uncertainty, the ability of so many market participants to transact virtually around-the-clock would probably serve to stem volatility. Because of its unique transportation method (pipelines instead of barges) pipeline disruptions are a major factor contributing to the volatility of the WTI contract. Liquidity, pipeline expansions and shutdowns, gas reserve develop­ment, strikes at production facilities, weather, and the pricing relationship of substitute fuels all impact basis risk.