OIL INDUSTRY
The petroleum industry, also known as the oil industry or the oil patch, includes the global processes of exploration, extraction, refining, transporting, and marketing of petroleum products. The largest volume products of the industry are fuel oil and gasoline. Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, synthetic fragrances, and plastics. The extreme monetary value of oil and its products has led to it being known as “black gold”. The industry is usually divided into three major components: upstream, midstream, and downstream. Upstream deals with Drilling and Production mainly .
Exploration policy
Under the NELP (New Exploration Licensing Policy), operating companies (those involved in the production of oil and gas) have to compete with all oil and gas companies, including national oil companies, for auctioned oil and gas blocks. The operative company submits bids based on available technical data from the host country’s relevant department overseeing oil and gas resources and its technical arm.
The operating company has to invest money with government approval and explore the field to find the oil and gas. This involves several stages, like exploration drilling, appraisal drilling and development drilling. Crossing each stage is dependent on economic and technical feasibility. Sometimes, huge money is invested in finding a successful production well. The success of operations also depends on asset management skills.
Uniqueness
Oil and gas operations are not like other businesses. Each and every stage involves significant risk to investments and approvals from local governments. Oil and gas operating companies should produce the oil and gas quantity committed to by the government, irrespective of reservoir complexity, uncertainty and external threats. All the committed production is to be taken out by the operating company irrespective of influences of external factors on assets. When oil and gas production is involved with high capital expenditures for infrastructure and production facilities, the operating company should invest money to establish the needed facilities. After having all of these, the organization cannot bear potential incidents which can hamper production operations. So every function of oil and gas operations should work for sustaining invested facilities.
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Role of Inspection by, LIA – Lloyds Inspection Agency America :
Inspection is the critical function of oil and gas assets, which also have a statutory compliance. Inspection teams confirm the healthiness of oil and gas facilities, such as platforms, pipelines, flowlines, umbilicals, subsea structures, vessels, columns, heat exchangers, tanks, PSV/TSV/ relief valves and lifting devices. These facilities are critical for taking out the production from the field. Most of these facilities are costlier and without a stand-by. Ensuring the availability of all these facilities is highly essential for the productivity of the assets. Even though inspection teams are conducting healthiness checks on the facilities, these facilities are only in the hands of operations teams.
Integration with Operations by LIA – Lloyds Inspection Agency America :
LIA Inspection teams takes a proactive approach in preventing damages to the facilities from operational disturbances and should create awareness among the operations teams. We know and respect the terms as an Agency Inspection teams should not be passive by just giving inspection reports; they should be dynamic and strong enough to confirm the healthiness of facilities by using all available resources and opportunities.
Inspection teams should join hands with operations teams to protect the asset facilities. Inspection teams should work with operations teams to prevent damage to the facilities with some operational consequences. Operations teams should also cooperate with inspection teams for the same purpose and should follow best practices to save facilities at least for the designed period. Even though the field has the potential to produce, subsurface and surface facilities are required to produce crude oil and natural gas as per the expectation of the operating company’s management.