Вы находитесь на странице: 1из 100

Министерство образования и науки Российской Федерации

РОССИЙСКИЙ ГОСУДАРСТВЕННЫЙ УНИВЕРСИТЕТ


НЕФТИ И ГАЗА имени И.М. ГУБКИНА

Кафедра иностранных языков

Е.Ю. Симакова

«PETROLEUM ECONOMICS
(ЭКОНОМИКА НЕФТЕГАЗОВОЙ ОТРАСЛИ)»
Учебно-методическое пособие по английскому языку
для студентов экономических специальностей высших учебных
заведений нефтегазового профиля

Москва 2011
УДК 802.0 (075)

Р е ц е н з е н т ы:
Е.Е. Жарова – к.ф.н., доцент кафедры иностранных языков РГУ нефти и газа
имени И.М. Губкина
И.В. Столярова – к.п.н., доцент кафедры иностранных языков РГУ нефти и газа
имени И.М. Губкина

Е.Ю. Симакова.
PetroleumEconomics (Экономика нефтегазовой отрасли). Учебно-мето-
дическое пособие по английскому языку для студентов экономических
специальностей высших учебных заведений нефтегазового профиля. – М.:
РГУ нефти и газа имени И.М. Губкина, 2011 – 99 с.
Учебно-методическое пособие предназначено для студентов факультета
экономики и управления II этапа обучения. Цель пособия развитие англоязыч-
ной коммуникативной компетенции в области международного профессиональ-
ного общения в сфере экономики нефтегазовой отрасли. Основное внимание
уделено развитию у учащихся умений зрелого просмотрового и изучающего
чтения, а также устного и письменного перевода текстов профессионального ха-
рактера. Кроме того, в пособии включены задания на развитие умений конспек-
тирования и аннотирования.
Текстовый материал пособия подобран из научных журналов, учебников и
учебных пособий по экономике и менеджменту в области энергетического сек-
тора.
Пособие может быть также использовано в группах магистрантов и аспиран-
тов экономических специальностей вузов нефтегазового профиля.

Е.Ю. Симакова., 2011


Издательский центр РГУ нефти и газа
имени И.М. Губкина, 2011
Содержание

Unit I ....................................................................................................................... 4
Grammar Revision ing-forms
Text Oil Industry Structure

Unit II...................................................................................................................... 28
Grammar Revision: Noun Structures, Participles
Text: The Distribution System

UNIT III ................................................................................................................. 46


Grammar: Revision
TextThe Notion of Capacity
Skills: Writing Summaries

Unit IV .................................................................................................................... 69
Text: Types of Oil, Types of Prices
Grammar: THAT/THOSE OF, WITH
Revision

Word Index .............................................................................................................. 98


Unit I

Unit I
Grammar Revision ing-forms
Text Oil Industry Structure
Ex. 1
Read and translate the international words, try to give more than one va-
riant of translation, where possible:

E.g.: combination – комбинация, сочетание


Active Injection
Alternative Installation
Category Integrate
Characterize Manufacture
Collection Operation
Combination Orient (v)
Complex (adj.) Potential
Constitution Production
Contaminant Salt
Conversion Segment
Conveyer Transform
Discrete Unique
Focus (v.) Parity
Generate
Industry

Ex. 2
Match the Russian words from A with the English words from B
A B
1. Вариант 1. Active
2. Введение 2. Alternative
3. Возможный 3. Collection
4. Действующий 4. Combination
5. Добыча 5. Complex
6. Изготовлять 6. Composition
7. Набор 7. Constitute
8. Объединять 8. Conversion
9. Передавать 9. Convey
10. Превращение 10. Discrete
11. Преобразовывать 11. Focus
12. Промышленность 12. Generation
13. Технологический процесс 13. Industry
14. Раздельный 14. Injection
15. Раздел 15. Installation

4 Petroleum Economics
Unit I

16. Сложный 16. Integrate


17. Создание 17. Manufacture
18. Сосредоточивать 18. Operation
19. Составлять 19. Potential
20. Состав 20. Production
21. Сочетание 21. Segment
22. Установка 22. Transform

Ex.3
Translate the following collocations into Russian:
Industry segment, chemical composition, engineering specialty, inter-pretation of
seismic information, combine geophysical information, geologic theory, production
engineer, method of production, professional discipline, prospect generation, com-
plex function, marketing specialist, service station, ocean-going barge, unique charac-
teristics, hydrocarbon molecules, to focus attention, production operations, integrated
company, paradox of interests

Ex. 4
Some international words are not always easy to translate from English into Rus-
sian, as in our language they have a different meaning, e.g. off-shore platform мор-
ская платформа, а не оффшорная платформа. Such words are called «translator’s
false friends» – ложные друзья переводчика.

Match A& B and try to give Russian words with international roots in C:
A B C
E.g. value значение, ценность валюта
mixture извлекать, добывать
to refinе знакомый
to extract обеспечение
familiar разведывать
to prospect очищать, перерабатывать
provision смесь

Ex. 5
Translate these sentences into Russian:
1. This tobacco is a mixture of three different sorts.
2. Refined oil is good for cooking, while unrefined oil is good for salads.
3. He extracted a promise from me that I’d come to the party.
4. Your face is familiar to me.
5. Geologists prospect for oil and gas.
6. In countries without adequate welfare (социальный) provisions for the poor,
unemployment may be very much more severe in its effects.
Petroleum Economics 5
Unit I

Words to Text 1
1. gasoline n. амер. бензин; газолин
petrol n. брит. бензин
2. heating oil топливо коммунально-бытового
назначения
3. lubricating oil смазочное масло
4. fuel oil топочный мазут
5. dosmb. good приносить кому-либо пользу,
быть полезным
ant. dosmb. harm Ex. Milk does you good.
наносить вред, вредить, быть
вредным
Ex. Smoking does you harm.
6. stuff n. 1) вещество, материал
Ex. What stuff is it made of?
2) вещь, штука
Ex. What is this stuff?
7. contaminant n. загрязняющее вещество,
загрязнитель, контаминант
загрязнять, заражать
contaminate v. Ex. We don’t fish in this river, it’s
contaminated.
8. value n. 1) ценность, стоимость,
рыночная цена товара,
финансового инструмента,
актива, услуги, права
Ex. Because of continual price increases
the value of the pound has fallen in
recent years.
~ v. I bought this picture for £10, but
its real value must be about £500.
2) оценивать
Ex. The house and its contents were
valued at $25, 000.
9. сonvey v. перевозить, транспортировать,
to~goods (passengers, luggage) доставлять
перевозить товары (пассажиров,
багаж)
conveyance n. Ex. Electricity is conveyed to our
homes from power stations.
перевозка, транспортировка

6 Petroleum Economics
Unit I

10. feasible a. осуществимый, выполнимый


Ex. Your plan sounds quite feasible.
feasibility study технико-экономическое обоснование
(ТЭО)
Ex. The company is conducting a
feasibility study for the Iran-India
gas pipeline.
11. sulfur n (Am) сера
sulphur (Brit)
12. fluid n. жидкость, текучая среда, флюид
Ex. Oil and gas are fluids.
~a. жидкий, текучий; подвижный,
изменчивый
Ex. As markets become more fluid
and global, leaders must be more careful
with investors.
13. process v. обрабатывать, подвергать обработке
Ex. One has to process a photographic
film to print pictures from it.
processing of oil and gas n. обработка нефти и газа (главным
образом химическая или термическая)
Ex. Although early processing procedures
were able to remove water, in the
nineteenth century discoveries were only
developed if consumers could use the gas
just as it came out of the ground.
14. extract v. извлекать, добывать
Ex. Norway extracts oil from the North Sea.
15. produce v. зд. добывать
Ex. Gas can be produced from coal.
production n. добыча
~ of coal, of ore, of oil, of gas добыча угля, руды, нефти, газа
Ex. Production of oil has increased in
the recent years.
16. refine v. перерабатывать, очищать, рафинировать
to ~ oil 1) перерабатывать, очищать
refining n. нефть; 2) рафинировать масло
Ex. Oil must be refined before it can be
used.
refinery n. очистка, перегонка, переработка
petroleum ~ переработка нефти
Petroleum refining is a complex process.
Нефтеперерабатывающий завод (НПЗ)

Petroleum Economics 7
Unit I

17. upstream n. «до трубы» первичные отрасли


нефтегазового хозяйства.
Совокупность производственных
операций, связанных с разведкой
и добычей нефти и газа
Ex. The location and extraction of
petroleum constitute the upstream
end of the oil industry.
18. downstream n. n. «после трубы» вторичные отрасли
нефтегазового хозяйства.
Совокупность производственных
операций, связанных с использованием
добытых нефти и газа; транспортировка,
переработка, хранение и сбыт.
Ex. The processing of crude into various
refined products, together with the
marketing of these products, is known as
the downstream end.
19. raw material сырье
Ex. Crude oil is the basic raw
syn. feedstock material for gasoline.
Ex. Coal was the feedstock for all
kinds of chemicals until it was
replaced by oil.
20. involve v. 1) включать, содержать
Ex. What will the job of the personnel man-
ager involve?
2) подразумевать, предполагать
be involved in smth Ex. Taking the job involves living abroad.
20. быть вовлеченным, участвовать
в чем-либо
Ex. China is currently involved in multiple
international oil and gas projects.
21. contractor n. подрядчик, компания-подрядчик.
Предприниматель или фирма,
выполняющие определенные виды
работ (сейсмическая разведка, бурение
скважин, прокладка трубопровода
и т.п.) на условиях подряда.
Ex. According to recent contracts,
contractors receive 10 % of the oil value
for crude oil supplied by them.

8 Petroleum Economics
Unit I

22. сrucial a. 1) решающий, ключевой


~ problem – ключевая проблема
to play a ~ role – играть решающую
роль
Ex. Speed is crucial to the success of the
reform.
2) критический, переломный
Ex. Help arrived at a crucial moment.
23. tend v. иметь тенденцию; стремиться
Ex. Oil prices are tending upwards.
~ to smth., to do smth. Ex. When prices of oil rise significantly
people tend to buy less.
24. blend v. 1) смешивать; изготовлять смесь
Ex. a story that blends fact and legend
Blend the sugar, eggs, and flour.
2) смешиваться; сливаться
Ex. Oil and water will never blend.
25. oil-bearing a. нефтеносный
~ layer – нефтеносный пласт
~ formation – нефтеносный горизонт
Ex. Geophysical data helps identify
potential oil-bearing areas.
26. operation n. 1) операция, действие,
рабочий/технологический процесс;
Ex. When preparing the project we
consulted experts in downstream
operations.
2) разработка, эксплуатация
operator n. The oilfield operation started a year ago.
оператор, сервисная компания,
подрядчик
Ex. Transnefteproduct is an operator
of oil products pipelines in Russia.
27. development n. разработка месторождения
oil field ~ разработка нефтяного месторождения
Ex. Petroleum exploration,
development and production require
E&D (exploration and significant investment.
development) Exploration and development
работы по разведке и разработке
месторождения

Petroleum Economics 9
Unit I

28. take over v. принимать должность (и т.п.) от другого


to ~ the office (of mayor) принять должность (пост) мэра
to ~ a business принять на себя руководство делом
(предприятием)
takeover n. приобретение контрольного пакета
акций (какой-либо компанией другой
компании)
Ex. His only reason for investing in the
company was to take it over.
29. еnhance v. усиливать, увеличивать, повышать
to ~ production увеличивать добычу
enhancement n. повышение, увеличение
~ of oil recovery повышение нефтеотдачи
30. сonsume v. потреблять, расходовать
to ~ fuel расходовать горючее
Ex. An economy consumes more
Energy when it is active.
consumer n. потребитель: лицо, которое, в конечном
итоге, пользуется данным товаром или
услугой (это не всегда покупатель).
Ex. Price determines whether
consumption n. consumers consume.
потребление
Ex. The nation’s consumption of oil and
gas increased last year.
31. сompete v. конкурировать
to ~ against smb. – конкурировать
competitor n. с кем-либо
конкурент, соперник по бизнесу
Ex. Natural gas is oil’s main
competition n. сompetitor on the fuel market.
конкуренция: столкновение спроса
и предложения.
Ex. Japanese TV-set manufacturers
are under price competition from
Korean and other makers.
32. supply n. 1) снабжение, поставка
to bring up / provide supplies обеспечить снабжение, поставки,
fresh supplies новые поступления, новые поставки,
power supply электроснабжение, энергоснабжение
supplies 2) ресурсы, припасы, запас;
to be in short supply быть в дефиците

10 Petroleum Economics
Unit I

to lay in supplies делать запасы


to replenish supplies пополнять запасы
to store supplies делать запасы
abundant/liberal/plentiful богатые запасы
supplies Ex. The nation's fuel supplies will not
last forever.
снабжать (чем-либо), поставлять;
~v. доставлять
Ex. The company supplies fish to
local shops and restaurants.
33. facility n. объект, сооружение, установка,
storage ~ хранилище. Наземное или подземное
сооружение для хранения товарных или
стратегических запасов минерального
сырья и топлива.
Ex. As production of hydrocarbons
increases, there is need for more storage
facilities.
34. disparity (between, in, of) n. несоответствие, несовпадение,
неравенство (отсутствие паритета)
Ex. There is a great disparity between the
amount of work that I do and what I get
paid for it.
35. independent company независимая компания
integrated company интегрированная компания
36. benefit n. прибыль, выгода
Ex. We will focus our marketing message
on the environmental benefits of our
~ smb v.. product.
Приносить прибыль, выгоду
37. barrel n. баррель (мера вместимости:
для нефти = 159 л.)
B/D [barrels per day] баррелей в день
bbl [barrels] баррели

Text A
Read the text and name the main oil industry functions.
Oil Industry Structure

Part I
1. Oil industry really is a collection of industries, each characterized by a unique
profession.
Petroleum Economics 11
Unit I

What consumers know as gasoline, heating oil, lubricating oil, diesel, and other
petroleum products start out as crude oil. In its natural state, crude oil has little value.
For one thing, in its natural state, it usually is underground, where it can do no one
any good. For another, its underground location begins as an unknown. Oil under-
ground has no value, therefore, until someone first finds it and then conveys it to the
Earth's surface, or at least proves that the conveyance is economically and technically
feasible. Even then, however, the crude has value only in its potential to be converted
into useful fuels. Usually, crude as it comes out of the ground is dark, gooey1 stuff,
mixed with mud and salt water and containing metals and perhaps sulfur and other
chemicals. It might be black, green, brown, sometimes orange, or occasionally nearly
clear. The really good stuff is nearly clear and very fluid, free of sulfur and other con-
taminants, approaching gasoline in chemical composition. The really bad stuff is so
thick that it must be heated in order to flow, high in sulfur and metal content. To be
worth anything, crude of any quality must be chemically transformed. The deliberate
chemical change falls under a broad industry category called processing.
2. Crude oil, then, must be found, extracted, and processed. And between these
steps it must be transported from place to place. The oil industry segment that
searches for oil is called exploration. Extraction is called production. Processing is
called refining. And transporting is called, well, transportation. These functions often
are categorized as «upstream» or «downstream.» The upstream business, including
exploration and production, provides the oil industry's raw material. The downstream
business is the manufacturing part of the industry; it takes the raw material, crude oil,
and turns it into valuable products through the process of refining.
Professional disciplines differ widely among these various functions, which is
why the industry seems so much like a collection of businesses to people familiar
with it. Exploration, for example, employs the sciences of geophysics and geology.
Production involves sophisticated engineering oriented to the behavior of under-
ground rock. In both upstream businesses, the crucial field activity is drilling, which
is a professional and engineering specialty.
3. Until the mid-1980s, the upstream industry segments tended to function dis-
cretely. A geophysicist produced a seismic section and interpreted it to produce a
map of the underground. A geologist combined the geophysical information with
field observations and information from any wells drilled in the study area to generate
a «prospect» a location to be drilled. Then a drilling crew, nowadays employees of
a contractor and not the prospect-generating company, moved onto the location to
drill a hole several thousand feet, or several tens of thousands of feet, into the ground
to test the geologic theory. If the hole, or well, found oil in sufficient quantity, the
production engineers took over to decide how best to get it out. The engineers' work
led to field development, which normally included the drilling of more wells, installa-
tion of equipment to handle produced fluids, and perhaps a program of water injec-
tion or other method of enhancing production.

1
Липкий.

12 Petroleum Economics
Unit I

4. All these physical steps still must be performed. Since the mid-1980s, howev-
er, extremely powerful computers have made it possible for oil companies to blend
information from each of the professional disciplines. Now, geophysicists work more
closely with geologists than before in prospect generation, and petroleum engineers
may enter the picture so that a prospective development program becomes available
before the first well has been started. The effect has been a blending of once-distinct
functions, although the sequence of upstream steps has not changed much.
5. The downstream petroleum industry employs a different set of professionals,
mainly chemists and engineers. Refining is a complex function that takes the general-
ly big molecules, constituting crude oil, and turns them into little, more useful mole-
cules that can be mixed to make gasoline and other products. In general, chemists
figure out what needs to be done, and refining engineers figure out how to do it. Re-
lated to their activities are those of marketing specialists who think of ways to make
consumers buy their products rather than those of competitors.
6. Connecting oil fields with refineries and refineries with service stations and
home heating oil distributors is the transportation network. It includes tank trucks,
ocean-going tankers, barges, pipelines, and storage facilities. Transportation, too,
makes up a business. In fact, trucking, pipelining, and shipping are all very distinct
businesses, each with its own professional specialty.

Part II
7. This, in very simple terms, is the mechanical part of the oil market, the indus-
try that produces what economists call supply. We will examine the parts in greater
detail later. What is important at this point is to recognize the unique characteristics
of the petroleum supply functions and the people who perform them. Indeed, as hy-
drocarbon molecules pass from function to function, their ownership often changes.
The number of ownership changes varies widely.
8. These disparities of function and ownership have important economic implica-
tions1. They relate to the organization of companies, patterns of trade, and market be-
havior.
Some companies, for example, organize around particular functions. Thus there
are independent producers, which specialize in upstream work. Their concentrations
may be even narrower; some independents focus on exploration, while some prefer to
conduct only development and production operations. And there are independent re-
finers, which concentrate on processing and marketing.
9. Other companies organize around the concept of integration owner-ship of
both upstream and downstream operations. An integrated company thus finds and
produces crude oil, refines it, and markets the products.
Integration introduces an interesting paradox of interests, the understanding of
which is crucial to an understanding of petroleum economics. High crude-oil prices
benefit producers for obvious reasons: The producer of 20 B/D of crude makes more

1
Скрытый смысл, подтекст.

Petroleum Economics 13
Unit I

money when crude sells for $22/bbl than when the price falls to $15. To refiners, the
crude-oil price is a feedstock cost. All else being equal especially product prices a
refiner makes more money from $15/bbl crude than from its dearer alternative.
10. An integrated company looks at crude prices from both perspectives. At least
in theory, it both sells crude (from its upstream divisions) and buys it (in its down-
stream units), even when the transactions occur internally. The advantages of integra-
tion have been the subjects of lively economic debate since John D. Rockefeller con-
trolled the market. Whatever its other merits and drawbacks, integration brings into
focus the vital dual nature of crude oil prices as both key determinant of producer
revenues and principal cost for refiners.

Text analysis
Ex. 6
1. Refer to paragraph 1 and a) translate the sentence containing «therefore»;
b) what is the meaning of «as» in the following phrase «crude as it comes out of the
ground is dark, gooey stuff»?
2. Read paragraph 2 and translate the word «functions» in the following sentence:
«These functions often are categorized as «upstream» or «downstream.»
3. Refer to paragraph 4 and using a dictionary, identify the meaning of «enter».
4. Look at paragraph 5. What is meant by the two «those» in the last sentence?
Do they have the same meaning?
5. Study paragraph 7 and say why the author says «indeed».
6. Look at paragraph 8 and translate the sentence: «Their concentrations may be
even narrower; some independents focus on exploration, while some prefer to con-
duct only development and production operations.» What is the meaning of «while»
in the sentence?
7. Go to paragraph 9. What is meant by «all else being equal»?
8. In paragraph 10 a) what is meant by «both perspectives»? b) explain the mean-
ing of the word «internally»; c) translate the sentence: «Whatever its other merits
and drawbacks, integration brings into focus the vital dual nature of crude oil prices
as both key determinant of producer revenues and principal cost for refiners.»

Ex. 7
Find English equivalents to the following Russian word combinations:

Part I
прежде всего
неизвестная величина
содержит много серы и металлов
почти прозрачная
специальное химическое преобразование
посредством процесса переработки
люди, которые знакомы с ней
14 Petroleum Economics
Unit I

по крайней мере
перерабатывать добытые флюиды
определение перспективного участка
действовать по отдельности
ранее отдельные операции
автомобильные перевозки
говоря простым языком

Part II
смена собственника
структура торговли
специализация может быть уже

Ex.8
Find in Text I the names of specialties related to oil industry and make a list
of them.

Ex. 9
Match A& B, and say what each specialist does.
A B
1. Geologist 1. Drills wells
2. Geophysicist 2. Develops the field
3. Geologist 3. Refines crude oil
4. Drilling crew 4. Explores for oil
5. Production engineer 5. Trucks, pipelines and ships oil and
gas
6. Chemical engineer 6. Combines geophysical information
with field observations and informa-
tion from any wells drilled in the
study area to generate a «prospect»
a location to be drilled
7. Transportation engineer 7. Thinks of ways to make consumers
buy products rather than those of
competitors
8. Marketing specialist 8. Produces seismic sections and
interprets them to produce a map
of the underground

Petroleum Economics 15
Unit I

Words

Ex.10
Match words in A with their explanations in B.
A B
1. Blend 1. Petroleum in its natural condition, before it has
been treated in an industrial process
2. Consumer 2. Include
3. Contractor 3. To provide people with something that they need or
want, especially regularly over a long period of time
4. Convey 4. To gain control over or responsibility for
5. Crude oil 5. Material of any sort, of which something is made
6. Feasible 6. A person or company that makes an agreement to do
work for another company
7. Feedstock 7. A material such as coal or oil in its natural state
before being treated in order to make things
8. Involve 8. A person who buys and uses goods and services
9. Raw material 9. A substance that is used to make a product
10. Revenue 10. To thoroughly mix together soft or liquid substances
to form a single smooth substance
11. Rock 11. The worth of something in money or as compared
with other goods for which it might be changed
12. Stuff 12. A large piece or mass of stone
13. Supply 13. Able to be done, possible
14. Take over 14. Money that a business or organization receives over
a period of time, especially from selling goods or
services
15. Value 15. To take or carry from one place to another

Ex.11
Build words and translate them into Russian:
employ employer employment ------------- employable
employee
blend --------------
----------------- category
characterize
conductivity
consumption ------------
conveyor ----------------
compete ----------------
16 Petroleum Economics
Unit I

contaminative
--------------- contract
determinant
--------------- enhancement
extract
generator generative
heat
locate -------------- -----------------
lubricant
manufacturer
organizer
performance -------------- performing
product
recognition
refining
-------------- specialization
storage
supply
usable

Ex.12
Some English words are used as both nouns and verbs without changing
their graphical form, e.g. use:
The use of oil for lighting is not very practical.
People use oil and its products for heating and powering engines.
Mind the pronunciation!
Use (n) [ju:s]
Use (v) [ju:z]
Here are some more words used as both nouns and verbs without changing their
graphical form.
Work in pairs. Check the pronunciation of these words in the dictionary and write
down Russian equivalents to these pairs in blank spaces:
Concentrate_______________ to concentrate ____________________
Market __________________ to market ____________________
Focus__________________ to focus ____________________
Extract__________________ to extract ____________________
Value __________________ to value ____________________
Service__________________ to service ____________________
Think of your own sentences with these pairs. Write them down.
Petroleum Economics 17
Unit I

Comprehension
Ex. 13
Refer closely to Text A and answer the questions:
1. Why does the author consider oil industry to be a collection of industries?
2. Why does crude oil in its natural state have no value?
3. What does the upstream business include?
4. What does the downstream business include?
5. What are the characteristics of high-quality oil?
6. How does crude oil get its value?
7. How did the upstream industry function in pre-computer times?
8. What professions and businesses are involved in the downstream petroleum
industry?
9. What does the type of company organization in the oil industry depend on?
10. What is the paradox of interests between producers and refiners?

Ex. 14
Refer to Text A again. Here are some answers. What are the questions?
1. There are two reasons. First, because in its natural state it is usually under-
ground, and, second, because its underground location begins as unknown.
2. It is called processing.
3. It provides the oil industry's raw material.
4. The crucial field activity is drilling.
5. The drilling of more wells, installation of equipment to handle produced fluids,
and perhaps a program of water injection or other method of enhancing production.
6. the mid 1980s
7. The effect has been a blending of once-distinct functions.
8. They think of ways to make consumers buy their products
9. It connects oil fields with refineries and refineries with service stations and
home heating oil distributors.
10. They are called independent companies.
11. It finds and produces crude oil, refines it, and markets the products.
Ex. 15
a) Study the following list of useful words and word combinations:
rather than вместо того, чтобы; скорее…, чем; больше…, чем; а не…
Ex. Rather than go straight on to university why not get
some work experience first?
Почему сначала не поработать, вместо того, чтобы сра-
зу поступать в университет?
in fact на самом деле; даже; к тому же
Ex. The sales revenues were expected to rise but in fact,
they fell.
Предполагалось, что доходы от продаж увеличатся, но,
на самом деле, они сократились.
18 Petroleum Economics
Unit I

in greater/more подробнее
detail Ex. This issue will be discussed in more detail
in Chapter 5.
Эта проблема более подробна рассматривается в гл. 5.
at this point тут, здесь (о времени)
Ex. At this point he paused a few seconds.
Тут он остановился на несколько секунд.
Indeed на самом деле, фактически
Ex. I was indeed impressed by her story.
Ее рассказ, в самом деле, произвел на меня впечатление
the number количество, число
Ex. The number of independent companies in Russia is
growing.
Число независимых компаний в России увеличивается.
a number ряд
Ex. There’s a number of reasons why these two companies
merged.
Существует ряд причин, почему эти две компании объ-
единились.
thus так, таким образом
Ex.We hope the new machine will work faster, thus
reducing our costs. Надеемся, что новая машина будет
работать быстрее, таким образом наши затраты умень-
шаться.
while хотя; несмотря на то, что; в то время как.
Ex. While teaching standards could be raised, more funding
would alsohelp. Хотя требования к уровню преподавания
можно было бы повысить, уве- личение финансирова-
ния также не помешало бы.
Their country has plenty of oil while ours has none. В их
стране много нефти, в то время как у нас ее совсем нет.
atleast по меньшей мере, по крайней мере, хотя бы
Ex. He had at least £100,000 in savings.
Сумма его сбережений составляла, по меньшей мере,
100 000 фунтов стерлингов.
both … and и… и; как…, так и …
Ex. Downstream involves both processing and marketing.
Даунстрим включает как переработку, так и маркетинг.
b) Find the useful words and word combinations in text A. (Do not try to find in
fact, it is not there).

Petroleum Economics 19
Unit I

Ex. 16
Translate the sentences into Russian, paying attention to «useful words»:
1. Before WW II foreign trade of crude oil was practically unknown, because of
the relatively high cost of transporting crude rather than products.
2. Taiwan’s gas demand is growing as electric power generators turn away from
nuclear sources in favor of LNG. In fact, in 2004 gas-fired power plants accounted
for 10 % of Taiwan’s electric generation.
3. I will speak about energy consumption in the developing countries in greater
detail in the third part of my presentation.
4. Futures trading in crude oil and key products developed rapidly in the 1980s.
Chapter 9 will discuss the subject in greater detail. At this point it is important to
recognize the extent to which futures trading open a window on the oil market.
5. Oil industry is indeed a collection of industries.
6. The rate at which oil can be produced from a given field depends upon a num-
ber of factors.
7. The newer class of ships burned oil rather than coal, lightening the ships and
making them faster.
8. A modern refinery involves a number of processes. The number of processes
depends on the type of oil.
9. When the dollar is weak against, say, the Japanese yen, crude oil producers
who spend a lot of money in Japansuffer. A weak dollar thus influences their trading
behavior.
10. What is important to remember is that oil can rise without creating inflation.
And inflation can occur while oil prices are falling.
11. It has been estimated that one in twelve of the largest oil tankers are being
used for the storage, rather than transportation of oil, and that if lined up end to end,
the tankers would stretch out for 26 miles.
12. Producers do not base their price decisions on refinery runs1, at least not di-
rectly.
13. Supply, demand, and price constantly push and pull at one another as the re-
sult of millions of producers, processors, traders, and consumers making decisions
to their best economic interests. Price is both a product of this process and a key fac-
tor in the outcome.
14. Just as there are different types of petroleum products, there are different
types of crude and different categories of price for both crude and products.
15. Historically, empires have been exporters of capital, rather than importers
like the US.

1
Работа.

20 Petroleum Economics
Unit I

Ex. 17
Match the first part of the sentences in column A with the second part in
column C using useful words in column B:

A B C
Before WW II foreign trade rather than the number of places oil could
of crude oil was practically leak from.
unknown, because of the
relatively high cost of
transporting crude
We will examine the parts in fact products.
of the oil industry
Trucking, pipelining, and in greater detail some prefer to conduct only
shipping are development and production
operations.
Oil underground has no at this point all very distinct businesses,
value, therefore, until each with its own professional
someone first finds it and specialty.
then conveys it to the Earth's
surface, or
The unit construction reduced the number …there are independent
producers, which specialize
in upstream work.
Esso operates at least later.
Some independents focus on thus proves that the conveyance is
exploration, economically and technically
feasible.
Some companies, for while upstream and downstream
example, organize around operations.
particular functions
Other companies organize a number of oil and gas platforms in
around the concept of Australia.
integration ownership of
What is important both is to recognize the unique
characteristics of the petroleum
supply functions and the people
who perform them.

Petroleum Economics 21
Unit I

Grammar
– ing-forms
Ex. 18
Translate the phrases with ing-forms into Russian:
heating oil; lubricating oil; stuff, mixed with mud and salt water and containing
metals; a broad industry category called processing; business, including exploration
and production; the manufacturing part of the industry; sophisticated engineering;
oil-bearing layers; method of enhancing production; a blending of once-distinct
functions; big molecules, constituting crude oil; сonnecting oil fields with refineries
and refineries with service stations is the transportation network; trucking, pipelin-
ing, and shipping are all very distinct businesses; independent refiners, which con-
centrate on processing and marketing; the understanding of which is crucial to an
understanding of petroleum economics.
Ex. 19
Read and translate the following sentences with – ing forms:
1. Many developing countries subsidize oil consumption in order to stimulate
economic activity. This is common in the petroleum-producing countries of Latin
America,
2. Rising oil prices by themselves cannot cause inflation.
3. The Soviet Union greatly expanded its internal pipeline system during the
1960s in order to link its central Asian gasfields to the main Soviet consuming areas.
4. As more becomes known about the oil-bearing rock more successful finds are
made.
5. A rising price of crude oil is neither inflation nor the cause of inflation.
6. The prices of all goods rise for reasons other than changing supply-demand re-
lationships for those goods.
7. The degree of inflation in important trading economies as well as the state of
international currency markets play crucial roles in the condition of oil markets.
8. «Who sets the price of oil?» someone inevitably asks, wanting a comprehensi-
ble answer that can be condensed into a sentence or two.
9. Before the First World War international trade in oil was structured around
product exports from refineries located in or near the main producing areas.
10. In Saudi Arabia, whose crude output continued to be processed in Bahrain
throughout the war, the construction of the RasTanura refinery regarded as a high
military priority by the US Government started in 1944, enabling the plant to start
production in late 1945.
11. A crude containing very small traces of sulphur is termed very sweet.
12. To consumers deciding whether to buy fuel it matters little where it comes
from.
13. At today's rate of use there is still enough oil to last the next 42 years,
according to BP oil company although those concerned about Peak Oil1 say we are

1
Пик добычи нефти.

22 Petroleum Economics
Unit I

closer to running out given demand is expected to rise strongly in the short-
term.
14. One more concept is crucial to an understanding of petroleum price move-
ments.
15. Imported crude oil arrives by tanker for unloading at marine terminals.
16. Futures trading in crude oil and key products developed rapidly in the 1980s.
17. The Russian oil industry developed a major export capability in the mid-
1880s, when the opening of a trans-Caucasian railway made it possible to ship oil
from the Black Sea.
18. Primary distillation, or «topping», is based on the fact that each fraction of oil
has a different boiling point.
19. Official government selling prices became the focal point of the OPEC pric-
ing system after the mid-1970s.

Ex. 20
Arrange the following into sentences:
1. integrated both and crude buys sells it an company.
2. the business manufacturing industry downstream is the the part of.
3. employs exploration for the sciences geophysics geology. of and example.
4. extracted oil must foundcrude and processed be.
5. the engineers mainly chemists downstream industry employs and petroleum.
6. are specialize in which producers upstream work there independent.
7. feasible oil sometimes is not convey ground it economically to to the.
8. is processing refining called.
9. for is more facilities there need storage.
10. main gas fuel market natural oil’s on competitor the is.
11. last of nation’s oil increased year consumption gas the and.
12. different used enhance are oil recovery methods to.
13. a operation drilling oil sophisticated for is.
14. the the crucial speed success to is reform of.
15. upwards are oil tending prices.

Ex. 21
Translate the following sentences into Russian:
1. Overproduction tends to cause deflation.
2. On November 30, 2007 Bruce Power signed a letter of intent to acquire Energy
Alberta and take over the project.
3. Independent companies now dominate exploration and development in
Alaska’s two producing provinces.
4. Integrated oil and gas companies tend today to reduce their E&D activities in
Alaska while independents move in.
5. Consumers reduced consumption during 2004 in response to gasoline prices
that were 20 % higher than in 2003.
6. One of the historical effects of technology was that large integrated companies
Petroleum Economics 23
Unit I

were granted a monopoly over the supply of energy in many countries and, on the
back of this, achieved a monopoly over producing oil and gas.
7. Throughout the 150-year history of the oil industry, technological progress has
been a force controlling production levels.
8. Refineries have processes for turning the lower-value products of distillation
into higher-value products.
9. Pipelines convey oil, gas and petroleum products from the wellhead to con-
sumers.
10. A state oil enterprise has general permission to engage foreign oil companies
as contractors in order to assist the state oil enterprise in fulfilling its task.
11. The processing of crude into various refined products, together with the mar-
keting of these products, is known as the downstream.
12. Petroleum exploration, development and production require long-term in-
vestments.
13. Many developing countries subsidize oil consumption in order to stimulate
economic activity or to keep government leaders in power.
14. Сompete.
15. Like supply and demand, price cannot be viewed in isolation.
16. Crude oil purchased by the U.S. government goes into storage facilities of the
Strategic Petroleum Reserve.
17. Iran's economy is a mixture of central planning, state ownership of oil and
other large enterprises, village agriculture, and small-scale private trading and service
ventures.
18. The 1986 oil price collapse benefited oil-consuming countries such as the
United States, Japan, Europe, and Third World nations, but represented a serious loss
in revenue for oil-producing countries in northern Europe, the Soviet Union, and
OPEC.
19. Azerbaijan produces about 800,000 barrels of oil per day and 1 bcm of gas.
20. Libya is considered a highly attractive oil area due to its low cost of oil
production (as low as $1 perbarrel at some fields), and proximity to European
markets
21. Petroleum engineers determine optimum rates and methods of production.
22. A modern refinery involves a number of processes, each designed to either
break down or rearrange hydrocarbon molecules.
23. Transport is crucial to the economy and culture of Niger, this vast landlocked
nation, with cities separated by huge uninhabited deserts, mountain ranges, and other
natural features.
24. When prices of a necessity such as oil rise significantly, demand for luxuries
tends to go down and their prices, therefore, to fall.
25. According to the doctrine prevailing in the 1960-s in the Soviet geological
science Siberia was not considered an oil-bearing region.
26. Drilling costs at this oilfield were very high.

24 Petroleum Economics
Unit I

Ex. 22
1. Fill in the gaps with the following words:

feasible, drilling, produced, stuff, harm, petroleum, mixture, to provide,


supplying, produce, well, good, natural gas, value, benefits, ownership, crude

In 1859 Edwin Drake drilled the first oil __________in Pennsylvania. In terms of
both time and distance, however, it was very far from where oil was first discovered
by ___________. Oil was first _________in China in around 200 BC. Long before
200 BC, however, people had realized the __________of crude oil and some of its
properties. As early as 3500 BC, in what is now Iraq, the Sumerians used asphalt as
an indestructible adhesive for bricks1. From 2200 BC, following the Sumerians, the
Babylonians built bridges, walls, tunnels, roads, the HangingGardens and the seven-
storeyTower of Babel with asphalt.
Under the pharaohs the Egyptians mummified their dead with a special ________
of bitumen and other things. By the 2nd century AD, the Romans also burned
_________oil as a fumigant. By the early 10th century, Arab nations understood that
it could be distilled.
Oil, however, has done people both _________ and _________. In the story of
__________ and __________ , fire and conflict have often taken place. In the 20 th
century battles and even whole wars have been fought over the _________of oil, and
have been won or lost through the possession or loss of it. The same was true of the
Middle Ages. Mo-reover, in the times of the Roman Empire it was discovered that
the________ of petroleum and calcium oxide was highly explosive. This had such
obvious _________ that it became a closely guarded secret.
But for most people the most common reason for burning oil or gas has been
_________ simple domestic lighting and heating. In 1272, passing through the town
of Baku, the great traveller Marco Polo noted that everyone used oil lamps, and that
people came from miles around to buy oil. Half a millennium later, in 1795, Britain’s
first ambassador to Borneo wrote about the island’s successful oil industry; there
were at least 500 wells (all dug by hand) _________ oil for lighting and
heating to over 7 million people.
Such comforts did not exist in Europe even then, in the late 18th cen-tury; and Eu-
rope’s earlier Dark Ages were not only metaphorically but lit erary so. When the
sun went down in the evening that, for most people, was that.
In any social or economic sphere, the difference between having light after night-
fall and having none is amazing. It was not that the Europeans in the Dark Ages ig-
nored the possibilities of oil; those few who were educated certainly knew it existed.
The reason that they did not _________ oil was simply that there was no oil, or so

1
Кирпичи.

Petroleum Economics 25
Unit I

very little that it was not ________ to produce it. If there had been significant land-
based resources of oil near London, Paris, Rome or any other centre of western Eu-
rope’s medieval civilization, they could have been exploited at the earliest possible
date; and the entire world’s history would have been different.
2. Define the functional style of the text

Ex. 23
TranslateintoEnglish:
1. Бензин, топливо коммунально-бытового назначения и смазочное масло
являются продуктами переработки сырой нефти.
2. Загрязняющие вещества наносят большой вред окружающей среде.
3. Люди давно поняли ценность нефти.
4. Газ доставляют потребителям по трубопроводам.
5. Технико-экономическое обоснование проводят для того, чтобы выяснить,
следует ли инвестировать средства в какой-либо проект.
6. К концу 1950-х годов стала возможной перевозка газа по морю.
7. Переработка сырой нефти в очищенные продукты и маркетинг этих про-
дуктов относятся ко вторичным отраслям нефтегазового хозяйства.
8. Для того, чтобы добывать углеводородное сырье, требуется сложное обо-
рудование.
9. Добыча нефти и газа в России постоянно растет.
10. Несмотря на то, что число НПЗ в мире сократилось, объем переработки
сырой нефти в минувшем году увеличился.
11. Россия является единственным поставщиком газа в Болгарию.
12. В первичных отраслях нефтегазового хозяйства заняты (вовлечены) та-
кие специалисты, как геологи, буровики и инженеры-разработчики.
13. Нефть впервые добыли в Китае около 200 г. до н.э.
14. ТЭО проекта подтвердило его экономическую эффективность.

Ex. 24
Translate Text B into Russian in writing. Use your dictionary.

Main Sectors of the Oil Industry

The location and extraction of crude petroleum constitute the upstream end of the
oil industry, while the processing of crude into various refined products, together
with the marketing of these products, is known as the downstream end. Trading activ-
ities between the extraction and refining stages constitute a «midstream» area, which
emerged as a distinct sector of the international oil industry in the late 1970s as in-
creasing volumes of crude came to be marketed outside the formerly dominant
«closed circuit» of integrated upstream and downstream interests controlled by the
major companies.

26 Petroleum Economics
Unit I

Ex. 25
RenderintoEnglish
Нефтяная и газовая промышленность представляют собой сложные отрасли
производства. Для обеспечения добычи нефти и газа, производства нефтепро-
дуктов и доставки их потребителям требуется участие большого количества ор-
ганизаций и предприятий, осуществляющих различные технологические про-
цессы, тесно связанные между собой. В настоящее время можно выделить сле-
дующие сферы деятельности в нефтегазовой отрасли: поиск и разведка место-
рождений; бурение и строительство скважин; добыча нефти, газа и конденсата;
транспорт, хранение и сбыт нефти, газа и продуктов их переработки.
Основными звеньями нефтяной и газовой цепочки являются добыча и пере-
работка нефти и газа, потому что они создают продукцию – сырую нефть и газ
и продукты их переработки. Деятельность остальных сфер подчинена им.

Petroleum Economics 27
Unit II

Unit II
Grammar Revision: Noun Structures, Participles
Text: The Distribution System
Ex. 1
Read and translate the international words, try to give more than one va-
riant of translation, where possible:
Terminal Invest
Product Brand
Reserve Function
Service Tanker
Station Dealer
Boiler Marine
Automobile Barge
System

Ex.2
Translate the following collocations into Russian:
product marketing, professional dealer, unique brand, universal automobile,
transportation by tanker, limited reserves, unique functions, to invest money, local
investors, marine terminal, system functions, local reserves, service station, product
brand.

Ex.3
Match «false friends» in A with Russian words in B and try, where possible,
to give Russian words with international roots in C:
A B C
E.g inventory Список, реестр Инвентарь
local
direction
tank
examination
general

Ex. 4
Translate these sentences with international words into Russian:
1. The company keeps a full inventory of its equipment.
2. You can find all these books in your local library.
3. Be sure you read the directions before using any piece of equipment.
4. The hot water tank is leaking.
5. After a brief examination by a local doctor, I was taken to the city's main hos-
pital.
28 Petroleum Economics
Unit II

Words to Text A
1. liquid n. жидкость
Ex. Water is a liquid.
a. жидкий
Ex. Liquid gas is cheaper to transport.
сжижать, превращать(ся) в жидкое состояние
сжижать
liquefy v. Ex. People learned to liquefy gas at the end of the
19th century.
(СПГ) сжиженный природный газ
LNG (liquefied natural Ex. The construction of LNG tankers demands a
gas) sophisticated technology, combining maximum
safety with optimum economic conditions.
2. wellhead n. устье скважины
Ex. Pipelines convey oil, gas and petroleum
products from the wellhead to consumers.
3. primary a. 1) первичный
Ex. Before the Internet appeared the radio used to
be the primary source of information and link to
the outside world.
2) первоочередной, основной
Ex. The primary objective of a business is to
make money.
4. secondary a. вторичный
Ex. Price is the most important factor for us
location is a secondary issue.
5. tertiary a. третичный
Ex.
6. handle v. 1) обращаться с чем-либо
Ex. Some customers are quite difficult to handle.
2) управлять, регулировать
Ex. Opposition leaders will be watching carefully
to see how the Prime Minister handles the crisis.
3) обрабатывать, перерабатывать
Ex. The finance department handles all the
accounts
4) торговать чем-либо.
Domestic car manufactures have said their dealers
are free to handle foreign cars if they wish.
5) грузить, выгружать, транспортировать
Ex. The Post Office handles nearly 2 billion letters
and parcels over the Christmas period.

Petroleum Economics 29
Unit II

7. trunk pipeline n. магистральный трубопровод


syn. main
to lay a pipeline прокладывать трубопровод
To meet the demand for Russian gas in Turkey
and the Balkan countries it is planned to lay new
gas pipelines in Romania and Bulgaria.
8. bulk n. 1) величина, масса, объем
2) большое количество;
Ex. We sell bulk coffee to restaurants.
in bulk – оптом, большими партиями, навалом,
наливом (о транспорте нефтепродуктов)
~ terminal – наливной терминал
Transneft is planning to build a second bulk
8. terminal in Murmansk.
~ plant – нефтебаза
9. retail a. розничный, предназначенный для индивиду-
альных клиентов или потребителей
оптовый
Ex. I've worked in retail trade for two years.
~ trade (business) – розничная торговля
~ price – розничная цена
Ex. His experience in retail trade includes manag-
ing a number of shopping centers in New Zealand.
nt. wholesale a. розничный торговец
~ trade (business) – оптовая торговля
retailer n. = retail dealer ~ dealer – оптовый торговец, оптовик
Ex. Japan’s wholesale prices in December were
unchanged.
10. outlet n. рынок сбыта; торговая точка
retail ~ розничный магазин
Ex. Benetton has retail outlets in every major Eu-
ropean city.
11. inventory n. список, реестр
Ex. We need a full inventory of the company’s
product consumers.
материально-производственные запасы,
(товарно-)материальные запасы
inventories Ex. There is an interesting article on the
inventories of the company in the «Economist»
12. lease n. аренда
Ex She has signed a lease contract with Texaco to
drill for oil on the land she owns.

30 Petroleum Economics
Unit II

13. tank n. резервуар, емкость, хранилище,


цистерна
~ truck автоцистерна
~ farm нефтебаза
fuel oil ~ топливный бак
gasoline ~ бензобак
14. marine terminal морской терминал, портовая база, перевалоч-
ная база с водного пути на железнодорожный
Ex. Two marine terminals were built last year.
15. capacity n. 1) емкость, вместимость, объем
Ex. The fuel tank has a capacity of 12 gallons
2) производственная мощность; максимальная
производительность;
пропускная способность; уровень добычи
Ex. Our production capacity has gone up again.
16. intermediate product промежуточный продукт
Ex. Intermediate oil products require further
processing
finished product готовая продукция, готовый продукт
Ex. Finished products move from refinery storage
by pipeline
17. purchase n. покупка, закупка, купля
Ex. House purchase is the biggest decision that
most people make.
purchase v. покупать, закупать, приобретать
Ex. The land was purchased for investment
purposes.
18. avoid v. избегать, уклоняться
~ smth.,doing smth. избегать чего-либо, делать что-либо.
Ex. She avoided answering my questions.

~ costs избегать расходов


19. logistics n. материально-техническое снабжение
Ex. Logistics is the management of the flow of
goods, information and other resources, including
energy and people, between the point of origin
and the point of consumption in order to meet the
requirements of consumers.
20. brand n. сорт, качество, марка
Ex. This is a company with strong brands and a
good position in many markets.

Petroleum Economics 31
Unit II

21. on behalf от лица, от имени


Ex. The president is ill, so I am speaking on his
behalf.
22. account for v. составлять, насчитывать, приходиться на
Ex. The economy of Venezuela is based in large
part on oil. The petroleum sector dominates the
economy, accounting for roughly a third of GDP,
around 80 % of export earnings.

Text A
Read the text and name the parts of the distribution system.
The Distribution System
1. As liquid hydrocarbons, oil or LNG, flow from the wellhead to the consumer,
patterns of ownership change along the course. Let us see how the distribution system
functions. The United States will serve as the example, since it is the world's single
biggest petroleum market and since other distribution systems follow the general pat-
tern.
2. The U.S. distribution system has three parts. What is called the primary distri-
bution system handles crude oil and products from the wellhead to large bulk termin-
als for petroleum products. The secondary distribution system divides the large quan-
tities of product from large bulk terminals into smaller quantities for delivery to retail
outlets and smaller bulk storage facilities. The tertiary system includes storage facili-
ties and inventories of product consumers.
3. The primary distribution system begins at the lease tank, a storage unit near
the producing well. Crude oil moves from there into gathering pipelines or tank
trucks. Gathering pipelines may connect to larger trunk pipelines or to loading sta-
tions for trucks, barges, or rail tank cars. The crude may travel to a storage terminal
or directly to a refinery, where it usually spends more time in a storage tank. Im-
ported crude oil arrives by tanker for unloading at marine terminals, which have sto-
rage capacity and pipeline links to refineries or trunk pipelines. Crude oil purchased
by the U.S. government goes into storage facilities of the Strategic Petroleum Re-
serve.
4. Refineries have storage tanks for crude, intermediate products (those requiring
further processing), and finished products. The finished products move from refinery
storage by pipeline, tank truck, barge, or tanker toward a general market area, stop-
ping usually at the large bulk terminal that represents the end of the primary distribu-
tion system.
5. The secondary distribution system includes localized storage facilities and re-
tail outlets. The storage at this stage usually involves wholesale bulk plants that re-
ceive products by tank car or truck. From wholesale storage, products move to tanks
at retail outlets, including service stations and retail fuel oil dealers.
32 Petroleum Economics
Unit II

6. Storage in the tertiary distribution system includes everything from fuel tanks
for boilers at factories to fuel oil tanks in homes, to gasoline tanks in automobiles.
Sometimes, products move directly from the primary distribution system to the ter-
tiary system. High-volume fuel users often invest in direct transportation links to the
primary system in order to avoid the costs of the secondary system. Large airlines, for
example, purchase jet fuel directly from refineries where logistics are favorable.
7. Downstream of refineries, product ownership can change several times. Espe-
cially in the case of gasoline, this is not always apparent because of widespread brand
identification with oil companies. A motorist filling up at a service station identified
by the brand of a major refiner indeed buys that refiner's gasoline, but the station at-
tendant may or may not be an employee of the refiner. In fact, the attendant probably
works for an independent business person who owns the station and pays for the right
to use the refiner's brand. The station owner might also be an investment company
operating stations on behalf of the refiner.
8. In 1985, 81,5 % of gasoline sales by all refiners were to independent dealers or
wholesalers. Service stations operated by refining company employees accounted for
only 16,4 % of total gasoline sales. The rest of the sales were to bulk purchasers.
9. When crude oil comes out of the ground, then, it and its derivatives most like-
ly will have several owners before a consumer buys the finished products. Each of
these changes in ownership implies a business transaction. Petroleum changes many
hands and rings many cash registers, as it passes through production, processing, and
distribution systems.

Text Analysis
Find English equivalents for the following in Text A
По мере продвижения; первичная распределительная система охватывает
операции с сырой нефтью и нефтепродуктами от устья скважины до крупных
нефтеналивных терминалов; промысловый трубопровод; отводы трубопровода;
после НПЗ; не всегда можно определить; крупная нефтеперерабатывающая
компания; заставляет работать не один кассовый аппарат.

Comprehension
Ex.5
Refer closely to Text A and answer the questions:
1. What is each part of the distribution system responsible for?
2. What are the starting and terminal points of the primary distribution system?
3. What storage and transportation facilities are employed in the primary distribu-
tion system?
4. Where does the secondary distribution system begin and where does it end?
5. What storage facilities are involved here?
6. How can high volume fuel users skip the secondary distribution system?
7. How do crude and products change ownership through the distribution system?
Petroleum Economics 33
Unit II

Ex. 6
Refer to Text A again. Here are some answers. What are the questions?
1. It includes storage facilities and inventories of product consumers.
2. This system handles crude oil and products from the wellhead to large bulk
terminals for petroleum products.
3. It goes into salt dome storage facilities of the Strategic Petroleum Reserve.
4. High volume users do so to avoid the costs of the secondary system.
5. Storage in this distribution system includes everything from fuel tanks for boi-
lers at factories to fuel oil tanks in homes, to gasoline tanks in automobiles.
6. They accounted for only 16,4 % of total gasoline sales.
7. They have storage tanks for crude, intermediate products, and finished prod-
ucts.

Ex. 7
Match the words in A with the definitions in B
A B
Retail The amount of stock, including raw materials, supplies
and finished goods, that a company has at a particular
time
Wholesale To form a particular amount or part of something.
Inventories The business of selling large quantities of goods at low
prices to other businesses, rather than to general public
Lease Marketing name given to a product by a company so that
the product can easily be recognized by its name or its
design
Logistics The amount of something that a machine, factory,
company
etc. can produce or deal with/
To account for A person or business that sells goods to customers in a
shop
Capacity The sale of goods for customers for their own use, rather
than to the shops.
Brand the practical arrangements that are needed in order to
make a plan that involves a lot of people and equipment
successful:
Retailer A legal contract that allows a person or organization to
make payments to use something for a particular time in
return for payment

34 Petroleum Economics
Unit II

Ex. 8
Build words and translate them into Russian:
employ employer employment ---------- employable
employee
retail
lease
purchasable
accountant
direction
examinee
investment
deal ------------
liquefaction

Ex. 9
Read and translate into Russian the following sentences, paying attention to
the words: handle, run, treat:
1. Royal Vopak is a Dutch company, that stores and handles various oil and
natural gas-related products. The company was created by the merger of Van
Ommeren and Pakhoed in 1999.
2. Standard Oil Company of Iowa was created in 1885 as a subsidiary of the
Standard Oil Trust to handle marketing along the Pacific Coast states of Idaho,
Oregon, Washington, California, and Arizona.
3. SaskOil is a Canadian state-owned oil and gas corporation handling oil
exploration and production.
4. The Louisiana Offshore Oil Port (LOOP) is a deepwater port in the Gulf of
Mexico off the coast of Louisiana near the town of Port Fourchon. LOOP provides
tanker offloading and temporary storage services for crude oil transported on some of
the largest tankers in the world. Most tankers offloading at LOOP are too large for
U.S. inland ports. LOOP handles 13 percent of the nation's foreign oil, about
1,2 million barrels a day, and connects by pipeline to 50 percent of the U.S. refining
capacity.
5. We treat all our customers’ complaints very seriously.
6. The crude leaving the well head must be processed and treated to make it safe,
environmentally acceptable, and economically viable1 for storage, processing and
export.
7. H-Bio is an oil refinery process developed in Brazil by the state run oil
company Petrobras for refining vegetable oil into standard petroleum products.

1
Рентабельный.

Petroleum Economics 35
Unit II

8. Central Asia-Center is a Gazprom controlled system of natural gas pipelines,


which run from Turkmenistan via Uzbekistan and Kazakhstan to Russia.
9. The Standard Oil Company of Kentucky or Kyso was an oil company and
gasoline distributor that operated in the southeastern United States from 1886 until it
was acquired by Chevron Oil Company in 1960. After the breakup of the Standard
Oil company in 1911, the company was awarded rights to run the oil operation of
Kentucky, Georgia, Florida, Alabama, and Mississippi.
10. Bombay High is an offshore oilfield 160 km off the coast of Mumbai
(Bombay). Despite the name of Bombay being changed to Mumbai, the name of the
rigs remains Bombay High. The oil operations are run by India's Oil and Natural Gas
Corporation.
11. Venezuela has the largest conventional oil reserves and the second-largest
natural gas reserves in the Western Hemisphere. In addition Venezuela has
nonconventional oil deposits (extra-heavy crude oil, bitumen and tar sands) appro-
ximately equal to the world's reserves of conventional oil. Venezuela nationalized
its oil industry in 1975 1976, creating Petróleos de Venezuela S.A. (PdVSA),
the country's state-run oil and natural gas company. Along with being Venezuela's
largest employer, PdVSA accounts for about one-third of the country’s GDP,
50 percent of the government’s revenue and 80 percent of Venezuela’s exports
earnings.

Ex. 10
Translate the sentences into English, using useful words in the box:

rather than in fact in greater detail at this point indeed


the number a number thus while at least both … and

1. За последнее время число скважин, пробуренных в Западной Сибири,


значительно возросло.
2. Уже в античном мире нефть использовалась как в мирных, так и в воен-
ных целях.
3. За последнее время в Западной Сибири был пробурен целый ряд горизон-
тальных скважин.
4. Авиалинии закупают реактивное топливо напрямую у НПЗ, избегая, та-
ким образом, дополнительных затрат.
5. В настоящее время компания проводит технико-экономическое обосно-
вание проекта.
6. Мы сообщим подробнее о результатах переговоров на нашей следующей
встрече.
7. На самом деле, как нефть, так и газ дешевле перевозить по морю, а не
транспортировать по трубопроводам.
8. В 1930-х годах Тринидад. Колумбия, Перу и Эквадор экспортировали
36 Petroleum Economics
Unit II

нефть, в то время как Аргентина и Канада добывали нефть только для собст-
венного потребления.
9. За последнее время цены на нефть увеличились, по меньшей мере, вдвое.
10. Вся работа была фактически выполнена одним человеком.

Grammar
Noun structures
Structure the prepositional noun compounds
possessive
case
Examples refiner’s change of service
brand ownership station

Ex. 10
Join the words below in an appropriate noun structure; use necessary ar-
ticles:
1. Facility /storage.
2. System/distribution.
3. Retail/outlet.
4. Construction/tankers.
5. Inventories/company.
6. Purchaser/bulk.
7. Amount/stock.
8. End/century.
9. Tanker/LNG.
10. Station/service.
11. User/fuel.
12. Taiwan/gas demand.
13. Geophysics/science.
14. Rock/underground.
15. Contractor/employees.
16. Equipment/installation.
17. Method/production.
18. Earth/surface.
19. Operations/upstream.
20. Set/professionals.
21. Product/consumer.
22. Competitor/price.
23. Trade/pattern.
24. Price/barrel.

Petroleum Economics 37
Unit II

Ex. 11
Rewrite the following phrases as noun structures:
1. Development of a field of oil.
2. The production of oil and gas in the world.
3. A station for serving cars which belongs to the Brown family.
4. A car for races belonging to my brother.
5. A tank containing oil.
6. A study made to determine if the project is feasible.
7. A tank for oil.
8. A user consuming high volumes of fuel.
9. An employee working for the refiner.
10. Dealers selling oil used as a fuel on retail basis.
11. A contractor involved in drilling operations.
12. A layer bearing oil.
13. Consumption of large volumes of energy.
14. The center which makes research into energy crisis.
15. The institute in Houston which trains teachers.
16. Increase of capacity to export Russian oil.

Participles

Импортированная/импортируемая нефть imported crude.


Страны, экспортирующие нефть oil exporting countries.
Страна, экспортировавшая нефть – the country that (which) exported oil.

Ex. 12
Translate into English:
1. Распределенные материально-технические запасы; отдел, распределяющий
материально-технические запасы.
2. Потребленный объем энергии; двигатель, потребляющий меньше энергии.
3. Нанятый персонал; чиновник, нанимающий персонал.
4. Арендованный участок; буровой подрядчик, арендующий оборудование.
5. СПГ, транспортируемый по трубопроводу; компания, транспортирующая
готовые продукты.
6. Добытый объем нефти; компания, добывающая природный газ.
7. Разведываемый участок; разведанный участок.
8. Газ, хранимый в подземном коллекторе; газ, хранящийся в подземном кол-
лекторе.
9. Продаваемый в розницу товар; АЗС, продающая бензин в розницу; АЗС,
продавшая бензин в розницу.
10. Нефть, закупленная у ОПЕК; страна, закупившая нефть у ОПЕК.
11. Сжиженный газ; агрегат, сжижающий газ (unit).

38 Petroleum Economics
Unit II

12. Переработанная сырая нефть; компания, перерабатывающая сырую


нефть.
13. Разработанное месторождение; разрабатывающий месторождение.
14. Повышенная добыча; метод, повышающий добычу; компания, повысив-
шая уровень добычи.

Grammar
Consider the following sentences with verbals and the way they can be trans-
lated into Russian:

Not knowing the language he couldn’t understand them Не зная языка, он


не мог понять их. Причина.
Knowing the language he could understand what they were saying. – Зная
язык, он понимал, о чем они говорят. Причина.
After spending so much money on the car I can’t afford a holiday. – Потратив
(поскольку я потратил) так много денег на машину, я не могу позволить себе
поехать отдохнуть. Причина.
By working hard she passed her maths exam – Она сдала экзамен по мате-
матике за счет того, что много занималась. – Метод.
On (after) returning from Beijing, he wrote to the Chinese embassy. – Вер-
нувшись из Пекина, он написал письмо в китайское посольство. – Время.
They left without paying. – Они ушли, не заплатив. – второе действие не
состоялось.

Ex. 13
Translate the sentences into Russian, pay attention to verbals and their func-
tions in the sentences:
1. While making the feasibility study experts found some mistakes.
2. By working in a team specialists learned from each other.
3. After signing the contract the company started exploration.
4. Many developing countries subsidize oil consumption in order to stimulate
economic activity or to keep government leaders in power.
5. Oil prices can rise without creating inflation.
6. Rising prices make investments in new capacity look attractive.
7. When preparing the project we consulted experts in downstream operations.
8. The company could not prepare the project without involving specialists in oil
refining.
9. Being very busy the President of the company did not attend the meeting.
10. To consumers deciding whether to buy fuel it matters little where it comes
from.
11. Tankers used to transport oil and gas are very expensive.
12. Large airlines purchasing jet fuel from refineries avoid costs of the tertiary
distribution system.
Petroleum Economics 39
Unit II

13. Based on existing resource estimates world oil and gas resources are exten-
sive.
14. Approximately 40 % of the energy consumed annually by the United States is
produced by burning oil.
15. What is important to remember is that oil prices can rise without creating in-
flation.
16. Processing adds value to oil.

Ex. 14
Translate into Russian, paying attention to the active vocabulary:
1. Oil is known to be one of the primary commodities.
2. France was the No. 1 purchaser of Iraqi oil.
3. The inventories of the Strategic Petroleum Reserve of the USA account for
727 bbl.
4. In 2000, Peru’s government awarded a license to develop Camisea gas field to
an upstream consortium. Another downstream consortium is building a 700 km pipe-
line to the coast.
5. BP has many retail outlets selling petrol and lubricating oils.
6. There will also be two plants on the Pacific coast to process and export gas to
Mexico and energy-hungry California.
7. The Asian Development Bank has provided financial assistance of $1 million
for the Turkmenistan-Afghanistan-Pakistan pipeline feasibility study.
8. The US has been actively involved in rehabilitation and reconstruction of oil
and gas facilities in Iraq since March 2003.
9. Crucial decisions had to be made, involving millions of dollars.
10. As of September 2005, 22 projects in the areas of crude oil production,
processing, gas-oil separation plants and distribution had been completed.
11. Gazprom operates 21 underground natural gas storages.
12. The Druzhba pipeline remains the main export artery for Russian crude,
transporting up to 1.3 million b/d.
13. Developing Lukoil’s new terminal at Vysotsk will increase Russia’s oil ex-
ports capacity in the Baltic.
14. High oil and gas prices are supporting the investment needed to increase
worldwide production capacity.
15. Afro-Americans account for 12 % of the US population.
16. Russia will not use all the pipeline capacity for its own crude, sharing it with
Kazakhstan and other central Asian exporters rather than using foreign facilities.
17. The company makes and distributes own-label products for supermarket re-
tailers and wholesalers.
18. Learning to work together is a crucial part of the training program.
19. Foreign investors are not permitted to purchase land.
20. If this product does not give complete satisfaction, please return it to the
manufacturer stating when and where it was purchased.
40 Petroleum Economics
Unit II

21. Import duties on some goods can be avoided if you know how.
22. She's a good manager, because she never avoids dealing with the problems of
her staff.
23. None of these ideas requires much in the way of money or logistics.
24. Coke and Pepsi are the most popular brands of cola.
25. We lease all our computers.
26. I am writing to you on behalf of a group of purchasers of your company’s
products.
27. Of this year’s E&D capital spending in the US, geological and geophysical
costs will account for $11,6 billion.
28. The early morning market is for wholesalers only, the general public have to
wait until later in the day.
29. Worldwide oil and gas industry capital investment will increase sharply this
year, especially for upstream work.
30. The US Minerals Management Service has recently conducted an inventory
of Outer Continental Shelf oil and gas resources.
31. As of 2000, oil and gas exports in Niger accounted for more than 98 % of
export earnings and about 83 % of federal government revenue, as well as generating
more than 40 % of its GDP.

Ex. 15
Translate into English:
1. Природный газ сжижают для удобства транспортировки.
2. Экологически чистое производство является первоочередной задачей
компании.
3. Основным средством транспорта нефти, газа и нефтепродуктов являются
магистральные трубопроводы.
4. Франция закупает большие объемы газа у Ирака.
5. Запасы стратегического нефтяного резерва США составляют 727 милли-
ардов баррелей.
6. Компания получила лицензию на разработку газового месторождения.
7. «Лукойл» обладает широкой сетью АЗС, продающих в розницу бензин и
смазочные масла.
8. Природный газ составляет 41,5 % общего потребления энергии в Паки-
стане.
9. На шельфовых месторождениях затраты на добычу довольно высоки.
10. Потребление природного газа в Индии в настоящее время невелико.
11. В настоящее время наша компания занята в ряде международных неф-
тяных проектов.
12. Иран, занимая второе место в мире по запасам природного газа, добыва-
ет около 70 млрд. баррелей.
13. Новый наливной терминал, построенный в прошлом году, работает на
полную мощность.
Petroleum Economics 41
Unit II

14. Взяв в аренду емкости для хранения нефтепродуктов, мы сможем избе-


жать дополнительных расходов.
15. Правильно организованное материально-техническое снабжение газо-
распределительной системы имеет решающее значение.

Text B

1. Read Text B and fill in the blanks with the words in the box in the correct
form.
2. Give Text B a heading.

producer LNG be privatized pipeline ownership account for


storage gas supplier consumer (2) distribution facility
demand

_____________________________________
Under the Gas Act 1986, the gas industry in Great Britain, in state ownership
since 1949, _______________ and the assets of the British Gas Corporation trans-
ferred to the new company, British Gas plc.1 The Act also established the Office of
Gas Supply to monitor British Gas’s activities as a public __________________, and
the Gas Consumers Council to look after the interests of _________________.
The British Gas national high-pressure _______________ system of some 5,900
km provides for the ____________ of natural gas. It is supplied by mains from four
North Sea shore terminals and from a terminal in Barrow-in-Furness (Cumbria). The
whole of the high-pressure transmission system is regularly inspected. Various me-
thods of _______________ of natural gas to meet the peak load conditions are used
including salt domes and storage _______________ for _______________.
Sales of gas by the supply industry in Britain __________________ 18,742
million therms2 in 1986. About half of all gas sold by British Gas to its 17 million
________________ is for industrial and commercial purposes, the remainder being
for household use. Gas is used extensively in industries requiring the control of tem-
peratures to a fine degree of accuracy such as the pottery industry and certain
processes of making iron and steel products. In 1986, 5,242 million therms of gas
were sold to industry in Britain, 197 million therms to fuel _______________ and
2,950 million therms to commercial and other non-domestic users. The domestic load
includes gas for cookers, space heaters, water heaters and refrigerators, but an
increasingly large part of domestic demand is for gas for central heating.
(Britain 1988, An official Handbook)

1
Public limited company – публичная компания с ограниченной отвественностью (Вели-
кобритания).
2
Единица теплосодержания газа (Великобритания).

42 Petroleum Economics
Unit II

Ex. 16
Refer to Text A and do the following assignments:
1. Write down key words from the text
2. Divide the text into logical parts and give each part a headline.
3. Make a plan of the text.
4. Speak about the distribution system following your plan.

Ex. 17
Translate the texts into Russian.

New Project for Transportation of Oil


«Sovcomflot», «Gazprom» and «Sevmorneftegaz» signed an agreement about
realization of projects for transportation of oil from the oil field Prirazlomnoe by sea,
informs the press-service of «Sovcomflot». The planned volume of oil extraction
amounts to 6.5 million tons per year, the shipment will start at the end of 2007 – be-
ginning of 2008. Within the frames of the project the company placed an order for
two tankers of the ice class with deadweight 70,000 tons each. The USA will be the
main consumer of oil from the oil field Prirazlomnoe.
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________
Russian Railways Increases Oil Transportation to China

Russian Railways increased its transportation of oil to China by 34.1 percent to 7.6m
tons in 2005 compared to the year before, the company’s press service reported.
Some 5.2m tons were supplied through the Zabaikalsk border terminal (a 68.2 per-
cent increase) and 2.47m tons through the Naushki terminal (down 5.9 percent).
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________

Petroleum Economics 43
Unit II

Kazakhstan's Gas Transportation System


Kazakhstan's gas transportation system is used mainly for international transit
in 2004, transit gas from Kazakhstan amounted to 120 bcm. Major gas pipelines are
concentrated in the west of the country, which prevents full-scale gas utilization and
adequate gas supply to the domestic market. As a result, exporting half of its gas pro-
duction Kazakhstan is compelled to import gas to meet 44 % of its domestic gas de-
mand. Given a significant degree of depreciation of Kazakhstan's mains the priority
objective is their upgrade and retooling. This is primarily the case with the Central
Asia-Center (CAC) Pipeline system constituting a major infrastructure facility sup-
porting the long-term agreements signed with Gazprom for gas transportation from
Turkmenistan, Uzbekistan, and Kazakhstan to Russia and farther to Europe. Ka-
zakhstan is upgrading the CAC system independently.
The projects for adding throughput capacity to domestic pipelines and new pipe-
line construction have been initiated under the National Program for Building up Ka-
zakhstan's Gas Industry for 2004 to 2010. The feasibility of major and most capital
consuming of these projects is contingent on the success of the gas project to China.
The currently considered China project scenarios include such projects as compo-
nents.
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
________________________________

Ex. 18
Render the following text in English in writing.

Трубопроводный транспорт сегодня


Развитие топливно-энергетического комплекса, определенное энергетиче-
ской стратегией России на период до 2020 года, во многом будет зависеть от
работы магистрального трубопроводного транспорта энергоресурсов. На сего-
дняшний день на территории Российской Федерации создана разветвленная
сеть газопроводов, нефтепроводов и продуктопроводов, проходящих по терри-
ториям многих регионов страны. Протяженность российских магистральных
трубопроводов, транспортирующих продукцию нефтегазового комплекса, со-
ставляет 219 тыс. км.
Важно отметить, что с помощью магистральных трубопроводов перемеща-
ется 100 % добываемого газа, около 99 % добываемой нефти, более 50 % про-
дукции, производимой подключенными к системе магистральных продукто-
проводов нефтеперерабатывающими предприятиями.
44 Petroleum Economics
Unit II

Трубопроводный транспорт включает в себя значительное количество со-


оружений. В частности, на магистральных трубопроводах и подземных газо-
хранилищах Единой (national) системы газоснабжения эксплуатируется 247 га-
зокомпрессорных станций общей мощностью более 42 млн кВт. Число газорас-
пределительных станций, обеспечивающих подачу газа потребителям, состав-
ляет 3,3 тыс.
За последние годы резко возросла роль трубопроводного транспорта в рос-
сийской экономике. Трубопроводный транспорт активно влияет на формирова-
ние и развитие ТЭК страны и отдельных регионов, являясь его важной частью,
и обеспечивает как передачу добытого и переработанного сырья, так и его экс-
порт. Кроме того, трубопроводный транспорт выполняет роль распределитель-
ной системы энергетического сектора. Таким образом, системы трубопроводно-
го транспорта являются эффективным инструментом реализации государствен-
ной политики, позволяющим регулировать поставки нефти, нефтепродуктов и
газа как на внешний, так и на внутренний рынки. Ведь, как известно, экспорт
газа, нефти и нефтепродуктов, в основном, осуществляется трубопроводным
транспортом, в том числе через (via) морские терминалы.
(по материалам журнала «Нефтегазовая вертикаль» № 11/2003)

Ex. 18
Render the following text in English in writing.
Необходимость в перевозке нефти и газа морским транспортом может воз-
никнуть в силу различных причин. Зачастую морской транспорт является един-
ственным технически возможным решением: море слишком глубоко, чтобы по
его дну проложить трубопровод. К тому же при транспортировке на большие
расстояния морской транспорт оказывается еще и дешевле по сравнению с ма-
гистральными нефте- и газопроводами. Помимо этого морской транспорт обес-
печивает еще одно важное преимущество: надежность поставок. Дело в том,
что при транспортировке углеводородов по морю не приходится пересекать
территорию других государств. Таким образом, уменьшаются экономические
(введение высоких транзитных пошлин) и политические риски (приостановка
поставок в результате введения санкций). Одним из первых судов, специально
спроектированных для перевозки нефти, стал «Мюрекс», построенный в 1892 г.
по заказу компании Шелл. Его грузоподъемность (или дедвейт от английского
dead weight) составляла 5 000 тонн. Стандартные танкеры времен Второй миро-
вой войны имели грузоподъемность уже в три раза больше – около 17 000 т.
Самые большие танкеры в истории начали строиться в конце 1970-х годов. Их
грузоподъемность достигала 550 000 тонн (фактически в сто раз больше, чем у
«Мюрекса»!).
По мере увеличения размеров танкеров непрерывно снижалась стоимость
морских перевозок.
(по материалам книги «Взгляд в будущее: Нефть и Природный Газ»)

Petroleum Economics 45
Unit III

UNIT III
Grammar : Revision
Text The Notion of Capacity
Skills: Writing Summaries

Ex. 1
Read and translate the international words, try to give more than one va-
riant of translation, where possible:
boiler isolate region
complex limit ruin
component modern substance
cracking modification technology
diameter modify technique
distillation theory
eguipment nature total
fraction optimum upgrade
function parity visualize
hydrocracking phase
invest reason

Words to Text I
1. handle v. обрабатывать, перерабатывать
Ex. The finance department handles all the
accounts
грузить, выгружать, транспортировать
Ex. The Post Office handles nearly 2 billion
letters and parcels over the Christmas period.
2. ultimate a. последний, окончательный, предельный
Ex. The ultimate outcome of the experiment
cannot be predicted.
ultimate capacity полная мощность
3. extent n. размер, величина
Ex. Government inspectors will assess the
extent of the damage.
4. estimate n. оценка, расчет
Ex. We're predicting a 10 % rise in oil prices
and that's a conservative (скромный) estimate.
cмета, калькуляция
Ex. The garage said they'd send me an estimate
for the work.

46 Petroleum Economics
Unit III

5. have to do with иметь отношение к, касаться


Ex. I'm sure her problems have something to
do with what happened when she was a child.
6. oil in place нефть в залежи/ в пласте
oil in situ
7. constraint ограничение
Ex. There have been financial and political
constraints on the development of the oilfield.
8. be on stream быть/находиться в эксплуатации
Ex. The field has been on stream for three
months.
be off stream простаивать
9. bring/put a field on начать эксплуатацию месторождения Ex
stream LUKOIL is going to bring two new fields on
stream this month.
10. stream day сутки эксплуатации
Ex. The capacity of this oilfield is n. barrels
per stream day.
11. once conj. как только, после того, как
Ex. Once I get him a job, he'll be fine.
12. flow поток, течение
Ex. the flow of oil from the Middle East
текучесть.
13. natural flow фонтанирование,
естественный поток
14. cash flow поток наличности
15. rate n. 1) темп, скорость
Ex. Children learn at different rates.
2) норма; ставка; тариф; расценка; цена;
стоимость
Ex. Hotel rates advertised are per person,
not per room.
16. deplete v. истощать
Ex. As oil reserves are depleted, its price will
continue to rise.
depletion n. истощение (запасов месторождения), обедне-
ние; исчерпание (запасов нефти или газа)
Ex. In recent years, crude oil production has
been falling, mostly due to depletion of existing
oil fields.

Petroleum Economics 47
Unit III

17. shrink v. (shrank shrunk) сжиматься, садиться


Ex. We want to expand the business,
not shrink it.
I'm worried about washing that shirt in case
it shrinks
18. surge v. подниматься, повышаться
Ex. Stocks surged Wednesday following
positive economic reports.
surge n. резкий скачок
Ex. Last year there was a surge in the company's
profits to $122m.
surge capacity пиковая мощность
Ex.
19. maintain v. поддерживать, сохранять
Ex. A lot depends on building and maintaining
a good relationship with your customers.
обслуживать, содержать в хорошем
состоянии
Ex. His first job was installing and maintaining
computers.
20. maintenance n. 1) поддержание, сохранение;
продолжение
Ex. The maintenance of a firm currency plays
an important part in the battle against inflation.
2) уход, ремонт и техническое обслуживание
Ex. A car is quite a big expense, especially
when you consider maintenance.
21. invest v. инвестировать, вкладывать денежные
средства; помещать капитал
Ex. Investing in property is no longer as safe
as it used to be.
22. investment n. инвестирование, вложение капитала
Ex. The lessons cost me over $500,
but I consider them a good investment.
make investments in делать инвестиции
recover investments возвращать вложенные средства
23. sustained a. длительный, поддерживаемый,
непрерывный
Ex. The Government can not maintain
conditions for sustained growth if they do
not introduce such conditions.

48 Petroleum Economics
Unit III

24. sustainable устойчивый


sustainable producing rate устойчивый темп добычи
sustainable growth неинфляционный стабильный
экономический рост с полной занятостью
Ex. The party is promising low inflation
and sustainable economic growth.
25. given prep. при наличии, с учетом,
принимая во внимание
Given the circumstances,
you've done really well.

given that Given that the patients have some disabilities,


we still try to enable them to be as independent
as possible
26. imply v. означать, косвенно выражать,
подразумевать
Ex. High profits do not necessarily imply
efficiency.
27. allowance n. (for) принятие во внимание, в расчет,
скидка на что-либо
Ex. There is always an allowance in insurance
premiums (страховая премия) for whether
someone smokes or not.
28. make allowances for делать поправку на что-либо
Ex. The budget makes allowances for extra
staff when needed.
29. volatile a. 1) летучий (о веществе)
Ex. A volatile liquid or substance changes
easily into a gas.
volatile market 2) неустойчивый, переменчивый
неустойчивый рынок: рынок с быстроизме-
няющимися ценами
Ex. People are afraid to change jobs in today's
volatile economy.
29. volatility n. изменчивость, непостоянство (напр. в
характере потребительского спроса)
Ex. It's common knowledge that types of assets
experience periods of high and low volatility.
That is, during some periods prices go up and
down quickly, while during other times they
might not seem to move at all.

Petroleum Economics 49
Unit III

30. average n среднее значение, число, величина


above the average выше среднего
below the average Ex. Executive1 salaries in financial services
on average and the communications industry were
18 percent above the average.
ниже среднего, в среднем
Ex. On average, men still earn more than wom-
en.
average a. средний, нормальный, обыкновенный,
обычный
Ex. Average world oil prices fell by over
50 percent in 1986 .
average v. составлять, равняться в среднем
Ex. Inflation averaged just under 2,8 % per year.
31. downtime n. простой по организационно-техническим
причинам
Ex. If the Internet service provider has a single
connection to the outside world, ask how often
it fails and the length of downtime.
32. constrict стягивать, сжимать, сокращать
Ex. Caffeine constricts the blood vessels
in your body.
33. constriction n. ограничение, стеснение
34. bottleneck n. узкое место, препятствие, помеха
Ex. Internet bottlenecks and overloaded servers
at popular Web sites can still create substantial
delays.
35. cooking n. коксование
36. counterpart n. аналог, эквивалент
Ex. Bars in Madrid offer more, and better,
food than their American counterparts.
коллега, должностное лицо, занимающее ана-
логичный пост (в другом учреждении, в дру-
гой стране и т.п.)
Ex. Belgian government officials are discussing
the matter with their counterparts in France.
37. upgrade v. улучшать/повышать качество
upgrading увеличение глубины переработки
(повышение качества/сортности)

1
Руководящий работник, руководитель.

50 Petroleum Economics
Unit III

Before you read


Match A & B:
A B
1. production capacity мощности хранения
2. pipeline capacity нефтеперерабатывающие мощности
3. refining capacity мощность трубопровода
4. storage capacity мощность добычи

Text A
The Notion of Capacity
Part I
1. Because it is a closed system, the market at any given time can handle only so
much oil. The limit is its capacity. And the market's ultimate capacity to deliver pe-
troleum products to consumers represents the sum of the physical capacities of the
industry's various functions.
Thus there are production capacity, pipeline capacity, refining capacity, and sto-
rage capacity.
2. Nature and money determine the capacities. Nature determined the extent and
location of Earth's reserves of crude oil. Money determines the amount of the effort to
find crude and the extent of investment in production, transportation, refining, and
storage equipment. Furthermore, the availability of money for operations performed
by that equipment depends greatly on prices of crude and petroleum products, which
in turn depend greatly, though not entirely, on demand.
3. Production capacity is a function of reserves and the capital invested in pro-
ducing equipment. The term «reserves» is important. It means the amount of oil
known with fair certainty to exist underground that can be produced under current
economic conditions with current technology. The rate at which oil can be produced
from a given field depends upon a number of factors. Some have to do with the na-
ture of the reservoir rock: how much pressure exists within it, how readily oil can
pass through it, how fluid the oil is, and so forth. It is possible to ruin oil fields by
producing crude oil too fast, a practice that exhausts natural pressures and renders
much of the oil in place unproducible. Petroleum engineers determine optimum rates
and methods of production.
4. Within those natural constraints, economics determines the rate and extent of
field development, which involves the drilling of production wells and installation of
production equipment. A company seldom makes all its investment in a field at once.
Usually, it drills enough wells and installs enough equipment to bring the field on
stream at some rate that generates an acceptable level of cash flow. Then, as initial
investments are recovered, subsequent phases of development may be undertaken to
increase or maintain production. The decision parameters are complicated. Crude
prices, and expectations for them, are crucial.
Petroleum Economics 51
Unit III

5. Once a field is on stream, its production capacity at any given time is the max-
imum rate, usually in barrels per day, at which it can produce on a sustained basis,
given the reservoir's characteristics and the equipment installed to handle production.
A company increases capacity by spending money to find and develop reserves and
to increase the maximum producing rate of existing reserves. If those investments are
not made, capacity shrinks because reserves deplete, underground pressures go down,
natural flowing rates decline, and equipment turns old and rusty1.
6. Often, production capacities are reported in two subcategories. One is a maxi-
mum rate called a surge capacity. Fields cannot produce at surge capacity for ex-
tended periods for a number of reasons. Among those reasons are pressure problems
with producing reservoirs and the inability of equipment to operate at maximum rates
forever. The more meaningful production capacity figure is the maximum sustainable
producing rate. As the name implies, it measures the highest rate of production that
can be maintained without damaging the underground reservoir and with proper al-
lowance for equipment maintenance, replacement, and operating necessities.
Ex. 2
Refer closely to Part I of Text A and answer the questions:
1. What does the market’s ultimate capacity represent?
2. What are the capacities determined by?
3. What does the availability of money for operations depend on?
4. What is production capacity a function of?
5. Does a company make all its investments in a field at once?
6. What does a company’s decision on investment depend on?
7. How does a company increase production capacity?
8. What happens if investments in production capacity are not made?
9. Why cannot fields produce at a surge capacity for long periods?
10. What does the maximum sustainable producing rate measure?
Ex. 3
Fill in the missing parts of the sentences from Part I of text A,
1. The availability of money for operations performed by that equipment depends
greatly on________________________________, which in turn depend greatly,
though not entirely, on ____________.
2. The ________ at which oil can be produced from a given field depends upon
___________________.
3. ___________________________ determine the capacities.
4. Nature determined _____________________________________ of crude oil.
5. Money determines ___________________to find crude and _______________
in production, transportation, refining, and storage equipment.
6. Petroleum engineers determine _____________________ production.
7. Economics determines________________________, which involves the drill-
ing of production wells and installation of production equipment.

1
Ржавый.

52 Petroleum Economics
Unit III

Part II
7. The capacities of transportation and storage functions are easier to visualize
than those of production. Pipelines have maximum volumes. Petroleum can pass
through them at rates that depend mostly on pipe diameters, the power of pumping
equipment installed, the resistance to flow (or viscosity) of the petroleum itself, and
the extent of efforts to reduce friction between the fluid and pipeline walls. Tanks
have obvious volume limits. Capacities in each case depend on investments. When
more storage is necessary, tank owners build more tanks. When more transportation
is necessary, pipeline owners install more pumps or lay new pipelines.
8. Refining capacities are more complicated. A modern refinery involves a num-
ber of processes, each designed to either break down or rearrange hydrocarbon mole-
cules. The basic process, the first main step in refining, is distillation. In it, crude oil
and other inputs such as natural gas condensates are heated to the point of boiling at
the bottom of a tall tower. Vapors rise through the tower, cooling along the way.
Heavier, less volatile substances condense first and are collected in trays 1 and carried
out of the tower. Lighter components of crude, or fractions, condense later higher in
the tower. Some fractions never condense and leave the tower as gases.
9. Basic refining capacity thus measures the maximum amount of crude a plant's
distillation towers2 can handle in a given period. Capacities are measured in barrels
per stream day, which is the maximum processing rate during a period of operation,
or barrels per calendar day, which are generally based on a year's operating averages
and include normal downtime for maintenance and repairs.
10. Obviously, a refiner can add capacity by building more distillation capacity.
To the extent distillation capacity is limited by some physical constriction of a prod-
uct stream, the refiner also can add capacity by wide-ning or eliminating the constric-
tion. This process is called debottlenecking.
11. Capacities of refining processes downstream of distillation are increasingly
important to petroleum economics. The market increasingly wants more light prod-
ucts, such as gasoline and jet fuel, than result from the distillation process, and less of
the heavy ones, such as residual oil3, which doesn't evaporate during distillation. Re-
fineries therefore have processes for turning the lower-value products of distillation
into higher-value products. They are called upgrading capacities. A rough way to
measure the relative refining productivity of plants, countries, or regions is to com-
pare their ratios of distillation capacity to upgrading capacity.
12. Deciding what types of processes to install in a refinery, or how to modify exist-
ing processes, is complex. Planners have to predict demand patterns for the various
petroleum products and decide how to match refining processes to their market pro-
jections. The ability to invest at all depends on current and expected refining profita-
bility, which is a function of crude costs, product prices, and operating expenses.

1
Тарелка.
2
Ректификационная колонна.
3
Мазут.

Petroleum Economics 53
Unit III

Ex. 4
Refer closely to Part II of Text A and answer the questions:
1. What does the rate at which petroleum can pass through the pipelines depend
on?
2. How can storage capacity be increased?
3. How can transportation capacity be increased?
4. How is refining capacity measured?
5. Which components of oil condense first: heavier or lighter ones?
6. Why are refining capacities downstream of distillation so important for petro-
leum economics?
7. What is debottlenecking?
8. How is the relative refining productivity of plants, countries, or regions meas-
ured?

Ex. 5
Fill in the missing parts of the sentences from Part II of text A.
1. Petroleum can pass through pipelines at ______ that depend mostly on pipe di-
ameters, the _________ of pumping equipment installed, the _________ to flow (or
viscosity) of the petroleum itself, and the __________ of efforts to reduce friction be-
tween the fluid and pipeline walls.
2. A modern refinery involves a number of processes, each designed to either
________ _________ or ______________ hydrocarbon molecules.
3. Capacities are measured in ____________ per ______________, which is the
maximum processing rate during a period of operation.
4. The process of widening or eliminating physical constrictions of a product
stream is called _____________________.
5. The market increasingly wants more light products, such as ____________ and
________ __________, than result from the distillation process, and less of the heavy
ones, such as ___________ __________, which doesn't evaporate during distillation.
6. Planners have ______________ demand patterns for the various petroleum
products and decide how _____________ refining processes to their market projec-
tions.
Ex. 6
Word Scramble
Put the letters in the correct order to form a word.
1. Tteiualm ____________________
2. Mestatei _____________________
3. Tasrme _____________________
4. Eeedptl _____________________
5. Aaiimtnn _____________________
6. Netmiensvt _____________________
7. Ausanlesbit _____________________
8. Piylm _____________________

54 Petroleum Economics
Unit III

9. Elavtilo _____________________
10. Pautconerrt _____________________
11. Evarega _____________________
Keys: 1. Ultimate. 2. Estimate. 3. Stream. 4. Deplete. 5. Maintain. 6. Investment.
7. Sustainable. 8. Imply. 9. Volatile. 10. Counterpart. 11. Average.

Ex.7
Form abstract nouns from the following verbs and give their Russian equi-
valents.
Example: act – activity деятельность:
Arrange- __________________ ____________________
Deplete- __________________ ____________________
Eliminate- __________________ ____________________
Include- __________________ ____________________
Install- __________________ ____________________
Invest- __________________ ____________________
Maintain- __________________ ____________________
Sustain- __________________ ____________________
Produce- __________________ ____________________
Operate- __________________ ____________________
Profit- __________________ ____________________
Refine- __________________ ____________________
Replace- __________________ ____________________

Ex. 8
Odd one out
a) 1. handle 2. produce 3. treat 4. refine
b) 1. ultimate 2. final 3. limited 4. last
c) 1.extent 2. part 3. degree 4. amount
d) 1. estimate 2. calculation 3. guess 4. truth
e) 1. constraint 2. limitation 3. law 4. restriction
f) 1. flow 2. stream 3. river 4. series
g) 1. rate 2. pace 3. speed 4. method
h) deplete 2. shrink 3. surge 4. reduce
i) 1. maintain 2. use 3. care 4. look after
j) 1. sustainable 2. renewable 3. suitable 4. viable
k) 1. imply 2. suggest 3. mean 4. know
l) 1. volatile 2. average 3. regular 4. standard
m) 1. counterpart 2. opposite number 3. colleague 4. producer
Petroleum Economics 55
Unit III

Ex. 9
Match A & B
A B
Shrink a smooth steady movement of liquid, gas,
or electricity
Counterpart to suggest that something is true,
without saying this directly
Handle to become or to make something smaller
in amount, size, or value
rate to do the things that are necessary to complete
a job
imply the amount calculated by adding together several
quantities, and then dividing this amount by the
total number of quantities
average time during which a machine, plant etc. is not
working because it is incapable of production
as when under repair
investment someone or something that has the same job
or purpose as someone or something else in
a different place
flow the use of money to get a profit or to make a
business activity successful, or the money that
is used
downtime the speed at which something happens over
a period of time

Ex. 10
Match A & B
A B
Ultimate consumer Предельный срок службы
Ultimate price Последняя инстанция
Ultimate load Конечный потребитель
Ultimate output Максимальная мощность
Ultimate result Первопричина
Ultimate accuracy Суммарная газоотдача
Ultimate reserves Головная холдинговая компания
Ultimate authority Предельная нагрузка
Ultimate cause Предельная точность
Ultimate gas recovery Окончательный результат
Ultimate holding company Промышленные запасы (нефти или газа)
Ultimate life Предельная цена

56 Petroleum Economics
Unit III

Ex. 11
Translate into Russian, paying attention to variants of translation of «ulti-
mate»:
1. Specialists believe that the world's ultimate reserves of non-conventional oil
such as heavy crude oil, tar sands, and oil shale are several times as large as those of
conventional oil and will be highly profitable.
2. The Atlantis oil field is the third largest oil field in the Gulf of Mexico. The
field was discovered in 1998 and is located in US federal waters about 130 miles
(210 km) from the coast of Louisiana in 6,500 feet (2,000 m) of water. It has
estimated ultimate reserves of about 600 million barrels (95 million m³).
3. In 2006, Elm Coulee was producing about 53,000 barrels (8,400 m3) of oil per
day from more than 350 wells. Ultimate production is expected to exceed
270 million barrels (45 million m³), with some estimates as high as 500 million bar-
rels (80 million m³). Production at Elm Coulee has more than doubled the oil output
of the state of Montana.
4. In October 1981 OPEC reaches an agreement to unify crude price at $32 per
barrel through 1982 and sets an ultimate price ceiling of $38 per barrel.
5. Our ultimate objective is to have as many female members of parliament as
there are male.
6. Natural gas processing plants have no other ultimate purpose than to quickly,
safely and profitably turn raw gas into products to be safely shipped to market.
7. In general, sales tax is required on all purchases of tangible personal property 1
to its ultimate consumer. Services are not subject to sales tax (but may be subject to
other taxes).

Ex. 12
The word «average» combines with the following nouns and adverbs. Write
down and translate into Russian these combinations.
1. Age of geological 9. Household 19. Price
formation 10. Income per capita 20. Production rate
2. Cost of oil field 11. Gas pipe length 21. Employment rate
development 12. Gas price level 22. Well depth
3. Earnings 13. Life of a well 23. Drilling speed
4. Estimate of 14. Drilling rig service life 24. Logging speed
petroleum Reservoir life 25. Pipeline laying
reserves 15. speed
5. Family 16. Man 26. Above
6. Population growth 17. Number of well 27. Below
7. Derrick height producing months
8. Gas-cap height 18. Person

1
Личное материальное имущество.

Petroleum Economics 57
Unit III

Ex. 13
Translate into Russian:
1. Oil companies base their budgets on an average price of a barrel of crude.
2. Average earnings in this state are about $2 500 a month.
3. Households below average income is an annual publication on poverty statis-
tics in the United Kingdom.
4. Burma is one of the poorest nations in the world, suffering from decades of
stagnation, mismanagement, and isolation. Burma’s GDP grows at an average rate of
2,9 % annually – the lowest rate of economic growth in the Mekong1 region.
5. As of the census2 of 2000 the average household size in California was 3,59
and the average family size was 3,92.
6. It was estimated in the early 1980s that the world average recovery rate of oil
in place could be increased to a maximum level of 40 per cent through the wider use
of sophisticated recovery techniques.
7. Production in 1992 averaged 51,000 boepd.(barrels of oil equivalent per day)3.

Grammar: Gerund
Ex. 14
Read and translate the following sentences into Russian.
1. Processing is called refining.
2. Production involves sophisticated engineering oriented to the behavior of un-
derground rock.
3. Refining is a complex function that takes the generally big moleсules, consti-
tuting crude oil, and turns them into little, more useful molecules that can be mixed to
make gasoline and other products.
4. The energy sector has a crucial role in driving economic growth and the World
Petroleum Council encourages young people to their part in en- suring the sustainable
development of the world’s petroleum industry. Characteristics of youth, such as cre-
ative thinking, being sensitive to new issues and having powerful potential for inno-
vation, are vital for the future of our industry.
5. Satisfying demand for oil and gas will not be easy in the coming decades.
6. By ensuring services providers are included in operator’s project planning at an
early stage the technology offering would be much better adapted to the needs of the
industry.
7. The setting of a good example from the top, training in how to be successful in
every area of the business, at every level, without corruption, and in how to apply
principals of good business conduct to new situations: these are essential components
for building a good reputation of a company.

1
The Mekong, a river in southeast Asia, which flows from Tibet through Cambodia and Laos to
Vietnam.
2
Перепись населения.
3
Баррель нефтяного эквивалента, 6600 МДж.

58 Petroleum Economics
Unit III

8. The processing of crude into various refined products, together with the mar-
keting of these products, is known as the downstream end.
9. His only reason for investing in the company was to take it over.
10. At today's rate of use there is still enough oil to last the next 42 years,
according to BP oil company although those concerned about Peak Oil 1 say we are
closer to running out given demand is expected to rise strongly in the short-term.
11. Russia's Gazprom has accused the Ukrainian government of not pumping gas
into its underground storage facilities as required in the first half of June.
12. France's Total says it wants to build another gas-export facility in Nigeria.
But piping natural gas across the Sahara desert to supply Europe faces big problems.
13. The Lybian National Oil Corporation (NOC) has lowered its ambi-
tious target of raising oil production to 3,0m b/d by 2012. The company is now tar-
geting an increase to 2,3m b/d by 2013, from present capacity of about 1.8m b/d.
14. Supreme Petroleum Council of Kuweit is responsible for approving all gov-
ernment policy and expenditure related to the hydrocarbons sector. The new five-year
development programme currently debated in the Parliament may extend the timeline
for expanding crude production capacity and put more emphasis on developing the
country's gas reserves. Present plans call for producing 4m b/d by 2020, up from
around 3m b/d. But this deadline may be put back to 2030.

Grammar: Absolute constructions


Absolute constructions consist of a noun and some kind of modifier, the most
common being a participle. Because they often come at the beginning of a sentence,
they are easily confused with dangling participles2. But an absolute construction
modifies the rest of the sentence, not the subject of the sentence (as a participial
phrase does). You can use absolute constructions to compress two sentences into one
and to vary sentence structure as a means of holding a reader’s interest. Depending on
the context, these may be translated into Russian:
i) with the help of conjunctions: так как (поскольку, ввиду того что), после
того как (когда)
Here are some examples:
No other business arising, the meeting was adjourned.
Поскольку не возникло новых вопросов, встреча была перенесена.
The paint now dry, we brought the furniture out on the deck.
Когда краска высохла, мы вынесли мебель на палубу.
The truck finally loaded, they said goodbye to their neighbors and drove off.
После того, как грузовик наконец загрузили, они попрощались со своими
соседями и уехали.
ii) by an independent sentence starting with the conjunctions причем, в то время
как, а, и

1
Пик добычи нефти.
2
Обособленное причастие.

Petroleum Economics 59
Unit III

For example:
The contract between the parties is drawn up in the Russian and English languag-
es, both texts being equally valid.
Контракт между сторонами составлен на русском и английском языках,
причем оба текста имеют одинаковую силу.
Business on the London Stock Exchange was very active that day, oil being trade
at $105 a barrel.
В тот день сделки на лондонской фондовой бирже проходили оживленно, и
нефть продавали по цене 105 долларов за баррель.
Constructions like these are used more often in writing than in speaking, where it
is more common to use a full clause:
When the paint was dry, we brought the furniture out on the deck.
There are, however, many fixed absolute constructions that occur frequently in
speech:
The picnic is scheduled for Saturday, weather permitting. – при благоприятной
погоде.
All things considered, it’s not a bad idea. – в конечном счете.

Ex. 15
Read and translate the following sentences into Russian:
1. All else being equal especially product prices a refiner makes more money
from $15/bbl crude than from its dearer alternative.
2. With the prices increasing, we are seeing solar, geothermal, biomass and etha-
nol become more competitive in the overall energy mix.
3. The hydropower industry also is gaining ‘steam’, with the Canadian Hydro-
power Association estimating that water power already delivers two-thirds of the
electricity generated.
4. With current record-breaking oil and gas prices having been sustained for at
least a year, producing companies around the world are driving exploration and de-
velopment drilling to peak levels, particularly offshore and in difficult environments.
5. With energy consumption expected to grow in the coming decades, the country
needs access to its untapped domestic resources.
6. Hurricane Katrina having struck the US oil industry in summer 2005, a lot of
refinery capacity was down for maintenance.
7. Gas storage in underground reservoirs being economically attractive; it is
considered the most important type of storage.
8. Nippon Oil first announced in May 2008 that it had agreed with China’s Na-
tio-nal Development and Reform Commission to turn the Osaka refinery into a joint
ven-ture operation, with Nippon Oil holding a 51 % stake and CNPC the remaining
stake.
9. Abu Dhabi's Mubadala Development has teamed up with ConocoPhillips and
state-owned KazMunaiGaz (KMG) to sign up for a joint exploration and develop-
ment deal for the offshore Nursultan block. KMG as majority owner will hold a 51 %
60 Petroleum Economics
Unit III

interest in the block, with the remaining 49 % shared equally between ConocoPhillips
and Muba-dala.

Ex. 16
1. Translate the sentences into Russian, paying attention to the active vocabulary
of the unit:
2. Computers can handle huge amounts of data.
3. Three or four staff members handle incoming telephone calls.
4. The ultimate responsibility for policy lies with the President.
5. Since the first Federal Clean Air Law in 1955, U.S. citizens have increasingly
desired a cleaner environment, and environmental protection laws have become in-
creasingly strict. Various estimates have been made of the cost to the industry to
comply with these regulations.
6. Construction did not begin in 2006 and the refinery is unlikely to be on
stream before 2009.
7. Exploration in Russia’s West Siberian Basin Province has led to the discovery
of several giant oil and gas fields, including Urengoy gas field with more than 3,500
tcf of estimated ultimate recovery.
8. Costs should fall as new technology comes on-stream.
9. Prices were relatively stable from 1918 to 1970, when large multinational oil
companies controlled much of the oil flow.
10. Cash flow is the balance of the amounts of cash being received and paid by a
business during a defined period of time.
11. Imports of petroleum products have grown at an annual rate of over 10 % in
the last decade, although still providing only 5 % of U.S. gasoline consumption.
12. If we continue to deplete the Earth's natural resources, we will cause serious
damage to the environment.
13. Bitumen is much thicker than traditional crude oil, so it must be either mixed
with lighter petroleum (either liquid or gas) or chemically split before it can be
transported by pipeline for upgrading into synthetic crude oil.
14. Contrary to the familiar industrial image of «boomtowns», the size of some
cities has declined, despite a growth in world population. Cities shrink when eco-
nomic investment moves elsewhere in the world.
15. An upgrader is a facility that upgrades bitumen (extra heavy oil) into
synthetic crude oil.
16. Stores are expecting a surge in demand as Christmas approaches.
17. Air France has maintained a high level of service for many years.
18. In spring 2006, an unusual amount of refinery capacity was down for main-
tenance that had been delayed because of the stresses placed on the industry by Hur-
ricanes Katrina and Rita in the late summer and fall of 2005.
19. Between 1990 and 2002, the number of different grades of gasoline increased
from three to fourteen. This trend made refining more complex, requiring refineries
to reconfigure their operations at lower production levels or invest money to sustain
the same output.
Petroleum Economics 61
Unit III

20. Investment in capital-intensive industries does not directly track changes in


profits or prices. Analysis of historical data shows that annual investments in refi-
nery capacity are more stable than profits.
21. Power plants in Syria are undergoing intensive maintenance, and four new
generating plants have been built. The power distribution network has serious
problems, with transmission losses estimated as high as 25 percent of total generated
capacity as a result of poor quality wires1 and transformer stations. A project for the
expansion and upgrading of the power transmission network was scheduled for
completion in 2005.
22. Some analysts have argued that refinery capacity should be substantially
higher and that such increases would reduce gasoline prices to $1,50 per gallon. Giv-
en that refiners needed $1,95 per gallon to cover their costs in 2005, this theoretical
combination of higher capacity and lower prices would not be sustainable.
23. Given the number of people we invited, I'm surprised so few came.
24. The high level of radiation in the rocks implies that they are volcanic in ori-
gin.
25. It is necessary to make allowance for the time required by the sound to as-
cend from the bottom.
26. Oil markets surged on aggressive U.S. statements toward Iraq.
27. One might expect the decline in inventories to increase gasoline price volatil-
ity. Yet, although gasoline price volatility has been generally trending up, current vo-
latility levels are actually less than in the years 1979–1992, when inventories were
higher. The volatility in those years is probably explained by the more volatile price
of crude oil, which is the major determinant of gasoline prices.
28. Real prices reached a historical low in 1998 during the Asian economic crisis
and did not return to their historical average of $2,13 per gallon (in 2005 dollars) un-
til 2005.
29. The profits the companies earned from their domestic and foreign refining
operations are roughly comparable. On average between 1977 and 2005, the compa-
nies earned a combined $4,7 billion annually from their overseas refining operations,
about 10 % less than from domestic operations.
30. Regular maintenance is a sure way to minimize costly downtime.
31. At low levels of capacity utilization, refineries lose some of their economies
of scale (повышение эффективности от роста масштабов производства) and are
likely to have higher costs. At levels of capacity utilization over 95 %, costs may also
increase because of process bottlenecks.
32. A male 35-year-old smoker will pay 78 % more in life insurance premiums 2
than his non-smoking counterpart.
33. Russian foreign minister is the counterpart of British secretary of state.

1
Провод.
2
Страховая премия (сумма, выплачиваемая ежегодно или ежемесячно владельцем полиса
страховой компании за покрытие убытков в случае наступления страхового случая.

62 Petroleum Economics
Unit III

34. Because of oil price increases since 2003, upgrading bitumen to synthetic
crude oil has become highly profitable.
Ex. 17
Read the text about gas storage in the US and do the assignments below

Text B
Natural Gas Storage in the US
Natural gas, like many other commodities, can be stored for an indefinite period
of time in natural gas storage facilities for later consumption. Gas storage is princi-
pally used to meet seasonal load variations. Gas is injected into storage during pe-
riods of low demand and withdrawn from storage during periods of peak demand.
It is also used for a variety of secondary purposes, such as market speculation,
insuring against any unforeseen accidents and reducing price volatility. Producers and
marketers use gas storage as a speculative tool, storing gas when they believe that
prices will increase in the future and then selling it when it does reach those levels.
Gas storage can be used as an insurance that may affect either production or delivery
of natural gas. These may include natural factors such as hurricanes, or malfunction
of production or distribution systems. Gas storage ensures commodity liquidity at the
market centers. This helps contain natural gas price volatility and uncertainty.
Gas storage in underground reservoirs being economically attractive; it is
considered the most important type of storage. There are also other types of storage
such as: LNG storage tanks and pipeline capacity which have both advantages and
disadvantages over underground reservoirs.
Gas storage facilities in the US are operated by interstate pipline companies and
independent storage operators. There are twenty-five interstate pipeline companies
currently operating 172 underground natural gas storage facilities. They are subject to
the jurisdiction of Federal Energy Regulatory Commission. Prior to 1994, these
companies owned all the gas that flowed through their systems. This also included
gas in their storage facility, over which they had complete control.
Then FERC Order 636 was implemented. This required the companies to operate
their facilities, including gas storage on an open access basis. For gas storage, this
meant that these companies could only reserve the capacity needed to maintain
system integrity. The rest of the capacity would be available for leasing to third
parties – producers, marketers and independent storage operators on a nondisc-
riminatory basis.1
Open access has opened a wide variety of application for gas storage, particularly
for marketers who can now exploit price arbitrage2 opportunities. Arbitrage is the pro-

1
На единых условиях.
2
Арбитраж, арбитражные операции одновременная покупка и продажа одного и того
же финансового инструмента или товара на разных рынках с целью получить выгоду от раз-
ницы цен; а также все операции, позволяющие получать повышенный доход в силу неравно-
весия на рынке.

Petroleum Economics 63
Unit III

cess of buying a commodity or a currency in one place and selling them immediately
in another place in order to make a profit from the difference in prices? Any storage
capacity would be priced at cost-based pricing1, unless the provider can demonstrate
to FERC that it lacks market power2, in which case it may be allowed to price at
market-based rates3 to gain market share. FERC defines market power as «..the
ability of a seller profitably to maintain prices above competitive levels for a
significant period of time.». The underlying pricing structure for storage has
discouraged development in the gas storage sector, which has not seen many new
storage facilities constructed, besides current ones being expanded. In 2005, FERC
announced a new Order 678 targeted particularly at gas storage. This rule is intended
to stimulate the development of new gas storage facility in the ultimate goal of
reducing natural gas price volatility.
Commission Chairman Joseph T. Kelliher observed: «Since 1988, natural gas
demand in the United States has risen 24 percent. Over the same period, gas storage
capacity has increased only 1,4 percent. Construction of storage capacity lagging
behind the demand for natural gas, we have seen record levels of price volatility. This
suggests that current storage capacity is inadequate. Further, this year, what storage
capacity exists may be full far earlier than in any previous year. According to some
analysts, that raises the prospect that some domestic gas production may be shut-in.
Our final rule should help reduce price volatility and expand storage capacity.»
It is expected that this new order will entice developers, especially independent
storage operators, to develop new facilities in the near future.
(from Wikipedia)

А. Say whether the following is true to the text:


1. Gas storage is principally used for later consumption.
2. Marketers use gas as a speculative tool.
3. Gas as a commodity is liquid at market centers.
4. Gas is stored in underground reservoirs because it is economically attractive.
5. Before 1994 all the gas that flowed through the US pipelines belonged to
twenty-five interstate companies.
6. Prior to 2005 many new storage facilities were constructed and the current
ones were expanded on the basis of the exsisting pricing structure.

1
Цена на основе затрат [себестоимости] (цена, определенная только исходя из полных
затрат на производство).
2
Рыночная власть (наличие возможности у фирмы оказывать влияние на рыночную цену
или увеличивать цены, не снижая объемы продаж; антимонопольные законы призваны обес-
печить существование ценовой конкуренции на рынке и устранение рыночной власти от-
дельных фирм).
3
Рыночный подход (подход к оценке предприятия, пакета акций, актива и т.п., при кото-
ром стоимость оцениваемого объекта определяется путем сравнения данного объекта с ана-
логичными объектами, цена которых известна).

64 Petroleum Economics
Unit III

7. The ultimate goal of Order 678 is to stimulate the development of new gas
storage facility.
8. The Commission Chairman observed correlation between price volatilityon the
one hand and natural gas demand/storage capacity ratio on the other hand.
B.Say if the following is:
Operating gas facilities on an open- True
access basis means offering off-stream False
capacities for leasing to third parties. Not stated in the text

Ex. 18
Render the text into Russian

Балтийская трубопроводная система (БТС)


В марте 2006 года в порту Приморск состоялся пуск Балтийского магист-
рального трубопровода на проектную мощность в 65 млн. тонн нефти в год и
открытие второго причала для загрузки танкерных судов. Это событие явилось
знаменательным не только для Ленинградской области, но и в целом для Рос-
сии. Нефть и нефтепродукты занимают сегодня одно из ведущих мест в струк-
туре мировой экономики. Реализация проекта Балтийской трубопроводной сис-
темы позволяет получить экономически эффективный экспортный маршрут для
доставки нефти из Тимано-Печерского, Западно-Сибирского и Урало-
Поволжского месторождений до главного центра нефтепереработки и нефте-
торговли в Европе – Роттердама. Туда ежегодно доставляется свыше
300 млн. тонн грузов, 120 млн. из которых приходится на нефть и нефте-

Petroleum Economics 65
Unit III

продукты. Технико-экономическое обоснование проекта, проведенное немец-


кими, американскими и российскими специалистами, показало, что транс-
портировка нефти до Роттердама через Приморск является наиболее выгодной
по сравнению с маршрутами через Вентспилс, Бутинге, Муугу и Порвоо. На-
пример, затраты при доставке тонны нефти через Приморск на 3–5 долларов
меньше, чем через Вентспилс. Прокладка трубопровода через Бутинге, Муугу и
Порвоо увеличила бы эту разницу еще больше.
Общий объем экспорта российской нефти и нефтепродуктов с исполь-
зованием всех видов транспорта составляет свыше 100 млн. тонн. При этом
дефицит мощностей (shortfall) для транспортировки нефти и нефтепродуктов
морским транспортом составляет около 40 млн. тонн. В итоге, после выхода на
проектную мощность, Балтийская трубопроводная система позволит ликви-
дировать узкие места и существующий дефицит мощностей в транспортировке
нефти. Предполагается, что доля нефтепродуктов в общем объеме морских пе-
ревозок на Балтике составит 41 процент.
При реализации проекта компания «Транснефть» применила лучшие миро-
вые достижения и современное оборудование в области строительства трубо-
проводного транспорта для нефти. Балтийские трубопроводные системы – про-
ект, отвечающий всем международным требованиям по технической и эко-
логической безопасности. Это подтвердила проверка экспертов из Финляндии и
стран Балтии.

Skills: WRITING SUMMARIES


Preparing a summary requires a special kind of writing. Unlike most types of
writing a summary should not include any of your personal ideas. The only purpose
of a summary is to condense what another author has written. This means reducing
what the author has said to its main points.
Summarizing an Article
A good summary should present a clear, concise idea of the main points of an ar-
ticle to someone who has not read it. For example, at your future job you can be
asked to summarize an article from Petroleum Economist or Oil and Gas Journal for
your boss who is too busy to read it him/herself. In order to write an effective sum-
mary, you need to have a true understanding of the original article. This means taking
time to read the article carefully to determine the author’s purpose, thesis and main
supporting points.
Here, let us specify the term thesis. A thesis is the sentence or group of sentences
which state what the main idea of a piece of writing.
How to Write a One-Paragraph Summary
Read the article once to determine the author’s purpose:
to inform the reader,
to persuade the reader,
to entertain the reader.

66 Petroleum Economics
Unit III

Reread the article to determine the author’s thesis and take notes of the main
points.
Using the notes as a guide, write the first draft of your summary. It should in-
clude:
A topic sentence stating the name of the article, the author and the source. It
should also include the main point (thesis) of the article.
A body that focuses on explaining, in your own words, the main ideas pre-
sented in the article. An effective way to do this is by answering the questions what,
where, when, who and why.
A final statement that summarizes any conclusions the author made.
Revise the draft summary. Check to see that you accurately summarized the au-
thor’s main ideas. If you have included any of the author’s minor points, eliminate
them. Besides, be sure that you did not include any of your own thoughts or opinions
about the topic.
Edit your summary to make sure that the grammar, spelling, punctuation and ca-
pitalization are correct.

Ex. 19
Read the story below and make a summary:

Text C
How Capitalism Saved the Whales

by James S. Robbins

Part I
It is the credo among environmentalists that the ills of the world can be traced to
economic and technological development, especially since the industrial revolution.
The changes that took place in the late 18th and early 19th centuries, such as harness-
ing new sources of energy (moving from water to coal power, for example), the de-
velopment of the factory system, and the human population explosion, they say, led
directly to the current problems with waste disposal, air and water pollution, over-
crowding, and misused resources, not to mention global warming, ozone depletion,
acid rain, and other highly possible developments.
Fixation on doomsaying1 can cause environmentalists to forget that the negative
consequences of industrialization are minute compared to the positive developments
of the industrial age. People are healthier, live longer, and are more productive than
ever before in history. But defenders of industrialism can go even further to show that
in many cases technological progress has benefited the environment. This is vividly
demonstrated in the case of one of the most emotion-laden symbols of environmen-
talism, the whales.

1
Пессимизм.

Petroleum Economics 67
Unit III

At the dawn of the industrial age, whales were an important natural resource
which humans had been exploiting for centuries. Whales were especially valued for
their oil, which was used primarily as fuel for lamps. It was also used for heating, for
lubrication, soap, paint and varnish manufacturing, and the processing of textiles and
rope. The Japanese among others had long ago acquired a taste for whale meat. Regu-
lar whale oil («train oil») was extracted from the fat which encased the whale's body.
But the best oil was spermaceti, found only in the nose of the sperm whale (the ca-
chalot). It was used for smokeless candles, regarded as the finest quality candles ever
made.
The sperm whale also sometimes produced ambergris, a sticky substance used in
the manufacture of perfume. Baleen1, the bony, plankton-straining ribs in the mouths
of most whales (excepting the sperm whale), was lightweight and had good tensile
qualities. It was used for a variety of things, including corset stays, umbrella ribs,
fishing rods, buggy whips2, carriage springs, and skirt hoops. Bones from the body
were generally used as fertilizer.
Whaling was a major industry in the 19th century, and the United States was the
pre-eminent whaling nation. According to tradition, American commercial whaling
began in 1712 in New England. Whaling expanded through the 18th century, but was
disrupted by the American Revolution and the Napoleonic Wars. In 1815 came peace
and rapid growth in the industry. By 1833 there were 392 American whaling vessels.
By 1846 there were 735 whalers, comprising 80 percent of the whaling fleet of
the entire world. Each year whaling produced 4 5 million gallons of sperm oil, 6
10 million gallons of train oil, and 1.6 5.6 million pounds of bone. The price of train
oil rose from 35 cents per gallon 9 cents per litre in 1825 to 95 cents 25 cents per litre
in 1855.
Though large, whaling was not a strong industry. Even with rising prices, profit
margins were always slim, and one in ten ships typically lost money on a voyage.
In 1858, a very poor year, 64 percent failed to make a profit. But whalers could al-
ways count on an increasing demand for their products, as populations grew and
markets expanded accordingly. Had the whaling industry matched the 300 percent
population growth from 1850 to 1900, many species of whale would have been ex-
tinct long ago.

(to be continued)
from The Freeman, August 1992

1
Китовый ус.
2
Хлыст для экипажа.

68 Petroleum Economics
Unit IV

Unit IV
Text: Types of Oil, Types of Prices
Grammar: THAT/THOSE OF, WITH
Revision
Ex. 1
Match «false friends» in A with Russian words in B and give Russian words
with international roots in C:
A B C
E.g inventory Cписок, реестр Инвентарь
Medium Плотность
Gravity Городской
Reason Маркерный сорт нефти
Premium Среда
Determinant Причина
Marker Определитель
Urban Повышенного качества

Words to Text A
Рosted price (Официально) объявленная цена (указанная в
рекламе или иным образом официально заявленная
цена, по которой данное лицо намерено продать
или приобрести какой-либо товар или услугу)
Ex. OPEC used the Israeli-Arabian conflict to double
the posted price for a barrel of Saudi Arabian light oil,
to US$5.14.
Hold true (for) v. Иметь силу, действовать, распространяться на,
быть верным, быть справедливым, годиться
Ex. According to current physical theory, Nature in
fact, only inorganic, physical matter seems to obey
numerous laws, which are of universal character, e.g.
they hold true at any place and time in the universe.
Pattern n. Система, структура; принцип, модель
(организации чего-либо)
Сonsumption pattern структура потребления
Spending pattern схема (статей) расходов
Ex. After the two oil crises of the 1970s, the pattern
of energy consumption in Japan changed from heavy
dependence on oil to some diversification to other
forms of energy resources in order to increase energy
security.

Petroleum Economics 69
Unit IV

Gravity n. Плотность
Syn. density
API (American Американский институт нефти
Petroleum Institute) плотность (нефтепродукта) в градусах
API gravity Американского нефтяного института
Apply to v. Касаться чего-либо, относиться к чему-либо
Ex. The offer only applies to flights from London
and Manchester.
Grade n. Сорт, качество
Ex. The best grades of tea are expensive.
Regular grade Стандартное качество
Midgrade Среднее качество
Premium grade Высшее качество
Low end Недорогой
Ex. A low end product is one of the cheapest in the
range of products made by a company.
High end Высококачественный
Ex. The company blamed the loss on higher costs
and lower sales of high end products.
By far Значительно, гораздо
Ex. The whole world has greeted the triumphant
flight of the Soviet spaceship as by far the greatest
scientific achievement of man. (‘Daily Worker’)
Sour oil Высокосернистая нефть
Sweet oil Ex. Sour crude oil is crude oil containing the impurity
sulfur .
Малосернистая нефть
Ex. Sweet crude oil is a type of petroleum. Petroleum
is considered «sweet» if it contains less than 0,5 %
sulfur, compared to a higher level of sulfur in sour
crude oil.
Range (from… to; Колебаться в пределах
between) v. Ex. The population of theses cities ranges between 3
and 5 million people.
Предел, размах, амплитуда; диапазон
Range n ex. Oil remained in a $26 to$30-a barrel range
for several years.

Before you read.

What do you think the classification of oil into different types is based on?

70 Petroleum Economics
Unit IV

Text A

Part I
Types of oil
1. Although it is quite normal to hear mention of «the oil price,» no such thing
exists. There is no single price of oil. The term «oil» can mean crude oil or petroleum
products. Generally, products are worth more than crude for the same reason that
bread is worth more than wheat. Processing adds value.
2. Even when the chemical distinctions are clear, prices for a single product vary
from region to region. Gasoline prices, posted as they are in most places for all the
world to see, can vary from one urban intersection to the next and usually do. The
same holds true for heating oil, lubricants, and crude oil itself. Patterns of supply
and demand vary geographically. Economic health changes from place to place.
3. Furthermore, crudes vary tremendously in quality and composition. Just as
there are grades of gasoline regular, midgrade, and premium so are there grades
of crude. But there are more of them for crude than there are for gasoline many
more. And the market must evaluate the differences.
4. The main parameters of crude quality are density and sulfur content. Density is
measured by something called API gravity, which is expressed in degrees. Crudes
with relatively high API gravities are considered light; those with lower API gravities
are heavy. There also are medium or intermediate weights.
5. Crudes between the «light,» «medium,» and «heavy» categories apply mainly
to crudes within particular families, which have names. For example, Iraq exports
three crudes in the Basrah1 family: Basrah Heavy with an API gravity of 24.7°; Ba-
srah Medium, 31.1°; and Basrah Light, 33.7°. In general, heavy crudes have API
gravities below 25°; mediums have API gravities of 25 32°; lights have API gravities
higher than that.
6. Everything else being equal, light crudes are more valuable than medium or
heavy crudes because they produce comparatively greater quantities of light, high-
value products such as gasoline and light distillates, in distillation.
7. Sulfur content is measured as a simple weight percent. Crudes with more than
1,5 % sulfur are considered sour. Those containing less sulfur are" said to be sweet.
Sweet crudes, because they do not require the added cost of desulfurization in
processing, have higher values.
8. Grades of crude by these main determinants of value range from heavy and
sour on the low end to light and sweet on the high. There are other factors of crude
quality, such as volatility, pour point, viscosity, and concentrations of metals and oth-
er materials. In the market, however, density and sulfur content are by far the most
common quality measures.

1
Basra is Iraq's main port near the Persian Gulf. The area surrounding Basra has substantial
large petroleum resources and many oil wells.

Petroleum Economics 71
Unit IV

Text Analysis

Find English equivalents for the following in Part I of Text A:


Paragraph 2: хотя цены на бензин официально объявлены во всеуслышание;
характер спроса и предложения; городской перекресток, экономическое благо-
состояние;
Paragraph 5: сорта сырой нефти, относящиеся к определенным группам;
Paragraph 7: весовой процент; дополнительные расходы; удаление серы;
Paragraph 8: от недорогих …до высококачественных

Ex. 2 Match A & B


A B
Pattern Affect, refer to
Low end Of very high quality
Range Structure
Premium The highest and lowest prices reached by a
market within a certain period of time
Apply to Low quality

Ex. 3 Answer the questions to Part I of Text A


1. What are the main parameters of crude quality?
2. Why do prices for a single product vary from region to region?
3. What crudes are considered light /heavy?
4. What names of crudes do you know?
5. What gravities do medium grades have?
6. Why are light crudes more valuable?
7. How is sulfur content measured?
8. What crudes are considered sour/sweet?
9. What crudes are low/high end?

Words to Part II
1. Net a. Нетто, чистый
Ex. Indonesia withdrew its membership in OPEC in
2008 after it became a net importer of oil.
~ assets Чистые активы
~ profit Чистая прибыль
~ n. а) цифра за вычетом налогов и других расходов,
обязательств и т. д., т. е. сумма, уменьшенная на
все относящиеся к ней вычеты
Ex. In economics, net means after deductions.
The antonym is gross, meaning before deductions.

72 Petroleum Economics
Unit IV

Nett is an alternative spelling used in British English.


б) чистая прибыль после налогообложения
Ex. Saudi Arabia net oil export revenues were
forecast to increase in 2005 and 2006, to $150 billion
and $154 billion, respectively, mainly due to higher
oil prices
2. Brent crude Нефтяная смесь марки «Брент» эталон-
ная (маркерная) марка (сорт) нефти, добываемой
в Северном море
Ex. The price of Brent Crude, one of the first types of
oil extracted from the North Sea, is used today as a
standard price for comparison for crude oil from the
rest of the world.
3. West Texas Западно-техасская средняя, Базовый сорт
Intermediate (WTI) нефти (США)
Ex. WTI often referenced in North American news
reports about oil prices, alongside North Sea Brent
Crude.
4. Dubai crude Ex. Dubai crude is generally used for pricing Persian
Gulf crude oil exports to Asia
5. Spot price «Спот» (условия расчетов, при которых оплата
и поставка осуществляются немедленно)
цена при продаже за наличные (с немедленной
доставкой)
6. Term price Цена долгосрочного/среднесрочного контракта
7. Benchmark n. База (сравнения), ориентир, эталон, стандарт для
сопоставлений, отправная (контрольная) точка
(любой показатель, выбранный за основу при
сравнении или оценке других показателей)
Ex. In the 1960s and 1970s the Swedish political
system was regarded as a benchmark for other
European countries
8. Quote n. (quotation) Котировка, расценка, цена
9. Quote v. Назначать цену, котировать
Ex. Neste Oil is a Finnish oil refining and marketing
company producing mainly transportation fuels and
other refined petroleum products. Neste Oil shares are
quoted on the Helsinki Stock Exchange.

Petroleum Economics 73
Unit IV

10. Аdjust v. Корректировать, согласовывать, приводить


в соответствие
Аdjustment for smth. Ex. We adjusted our watches to local time.
n. Поправка на что-либо
Поправка на инфляцию
~ for inflation Ex. Once we make the adjustments for inflation,
the fall in interest rates is quite small.
Аdjusted adj. Согласованный
11. Haul v. Везти, перевозить; транспортировать; заниматься
коммерческими перевозками
to haul freight Перевозить грузы
Ex. The ship was hauling a load of iron ore.
12. Нaulage n. Перевозка, транспортировка; доставка, подвозка
(товаров, грузов; термин обычно применяется для
обозначения автодорожной и железнодорожной
перевозки)
Ex. This contract, which is reproduced here, is a
typical example of a standard form contract found in
the haulage industry.
13. Marginal a. 1) Незначительный, небольшой, несущественный,
неважный, малодоходный
Ex. There has been only a marginal increase
in sales recently.
~ supply Маржинальные поставки
~ well Малодебитная (истощенная) скважина
Ex. A stripper well or marginal well is an oil or gas
well that is nearing the end of its economically useful
life.
2) Дополнительный
Ex. The marginal return is the added output resulting
from employing one more farmer.
14. Margin n. Маржа, разница между себестоимостью
и продажной ценой, прибыль
Ex. A store that sells for $1 an item costing it 90 cents
has a 10 % margin.
15. Continuous a. Постоянный, непрерывный
Ex. Although we nearly always need extra drivers,
Ant. discreet we cannot guarantee continuous employment.

74 Petroleum Economics
Unit IV

16. Сontinuity n. Бесперебойность, непрерывность


Ex. We should ensure continuity of care between hos-
pital and home.
~ Оf supply Бесперебойность снабжения
Ex. Feasibility studies showed that the creation of a
regional electric transmission system would be very
positive for the region and lead to a reduction in
electricity costs and to improvements in the continuity
and reliability of supply.
~ Оf employment Непрерывный стаж работы.
17. Shortfall n. Дефицит, недостача
Ex. The Mauritanian government announced a 112
million USD budget deficit, mostly due to shortfalls in
oil exports due to technical problems.
18. Cif (CIF or c.i.f.) Сокр. от cost, insurance, freight; сиф; стоимость,
страхование и фрахт
On CIF terms Ex. A CIF sale contract requires the seller to obtain
CIF Manchester insurance cover for the voyage.
На условиях сиф
сиф Манчестер, на условиях сиф Манчестер.
19. Delivered price Цена с доставкой; цена, включая доставку
(цена товара, включающая в себя расходы на
транспортировку продукта от производителя
(места продажи))
к помещениям покупателя или другому,
указанному покупателем, пункту назначения.
20. Clear customs 1) Уплачивать таможенные пошлины
2) Проходить таможню
Ex. It took ages to clear customs but then we were out
of the airport quite quickly.
21. Fob (FOB or f.o.b.) Сокр. от free on board франко-борт, фоб; франко-
вагон
Free on board price Цена FOB (цена, включающая собственно стои-
мость товара, а также транспортные и страховые
расходы, понесенные продавцом вплоть до завер-
шения погрузки товара на борт судна)
Ex. The delivery locations of crude oil products are
usually sea ports close to the oil fields from which the
crude was obtained and the pricing is usually quoted
based on F.O.B.

Petroleum Economics 75
Unit IV

Types of prices

Part II
1. Except for the most specialized ones, market information services do not at-
tempt to report prices for every type of crude traded. Instead, they cover crudes con-
sidered representative of particular refining centers. At Rotterdam in the Netherlands,
for example, Brent crude from the North Sea is a normal benchmark. Brent also is
quoted on the U.S. Gulf Coast, along with West Texas Intermediate. In Singapore,
Dubai crude serves as a marker crude. In general, other crudes trade against these and
other markers, with adjustments for quality differences. Price variances of one crude
against a marker are called differentials, which must be calculated for haul distances
as well as quality.
2. Within the Organization of Petroleum Exporting Countries, Saudi Arabian
Light crude once functioned as a benchmark. In recent years, the exporters' group has
used a so-called basket of eight crudes in establishing its prices.
3. Price quotations for marker crudes at refining centers are usually spot prices.
That is, they are the prices refiners pay for marginal volumes of crude, generally pur-
chased cargo by cargo. They are distinguished from term prices, which are deter-
mined by contracts for continuous deliveries. Refiners once relied on term purchases
for most feedstock needs to assure continuity of supply and used spot purchases to fill
temporary shortfalls. In recent years they have tended to rely on spot purchases for
more of their basic feedstock needs than before so as not to get locked into long term
commitments to buy crude at prices that may prove higher than the market. Since
spot purchases by nature represent marginal supply they are considered most repre-
sentative of the market in which they are made at the time of transaction.
4. Quotes for spot transactions at refining centers are usually cif prices. The
acronym stands for «cargo, insurance, and freight.» Cif prices thus represent not just
the price of the crude but also the costs of transporting it to market. «Delivered» pric-
es are similar but include additional costs, such as those of clearing customs.
5. At the other end of the scale are fob prices. Another acronym: «free on
board.» The oil market usually assumes this to mean fob seller. The fob price
represents crude costs at a seller's loading terminal to a buyer paying his own trans-
portation, insurance, and other expenses. It should be obvious that cif prices vary
with distance to market. When the fob price for Saudi Light crude is $17/bbl, for ex-
ample, its cif price on the U.S. Gulf Coast exceeds its cif price in Rotterdam because
of the greater haul distance. Like crude prices, product prices are quoted on both fob
and cif bases.
6. «So who sets the price of oil?» someone inevitably asks, wanting a compre-
hensible answer that can be condensed into a sentence or two. When the victim of
such an inquiry is a person who understands all the forces at work in the oil market
and all the things «price of oil» can mean, the best answer is an indulgent smile and
polite change of subject.

76 Petroleum Economics
Unit IV

Text analysis
Find in Part II English equivalents to the following:
Paragraph 1: они дают информацию о сортах нефти; другие сорта нефти
торгуются против этих и других маркерных сортов;
Paragraph 3: отдельными партиями; раньше с целью обеспечения непре-
рывности поставок переработчики закупали сырье на срок; связать себя обяза-
тельствами по долгосрочным контрактам;
Paragraph 4: сокращенно от;
Paragraph 5: на другой чаше весов;
Paragraph 6: внятный ответ; лицо, подвергшееся такому допросу; все силы,
действующие на рынке; снисходительная улыбка.

Ex. 4 Match A & B


A B
Benchmark The difference between the price that something
is sold for and the cost of producing it
Net A written statement of exactly how much money
something will cost
Vommitment Something that is used as a standard by which
other things can be judged or measured
Spot price Happening or existing without stopping,
prolonged without interruption
Haulage The difference between the amount you have
and the amount you need or expect
Adjustment The business of carrying goods in trucks or
trains for other companies
Shortfall Remaining after all deductions, as for taxes, ex-
penses, losses, etc
Quotation A promise to do something or to behave in
a particular way
Margin a small change made to a machine, system,
or calculation
Continuous The price for immediate delivery of a commodity

Ex. 5
Say whether the following statements are true or false.
1. Market information services cover every type of crude traded.
2. Brent crude serves as a universal benchmark for all stock exchanges.
3. Crude prices are calculated without considerations for haul distances and
quality.
Petroleum Economics 77
Unit IV

4. A basket of eight crudes is used for establishing prices at Rotterdam.


5. Marker crude prices at refining centers are usually term prices.
6. Spot prices are distinguished from term prices by the quality of crude.
7. Refiners used to rely on spot purchases so as not to get locked into long term
commitments.
8. Term prices are usually higher than the market.
9. Cif prices include the price of the crude and the costs of transporting it to mar-
ket.
10. Fob prices vary with distance to the market.
11. Product prices are quoted on both fob and cif bases.

Word-building
Negative prefix de- is used to form words with the opposite meaning,
e.g. increase decrease

Ex. 6 Translate the following verbs into Russian without a dictionary


decontaminate
deactivate
decaffeinate
dechlorinate
decode
decolorize
decompose
decompress
decrement
de-energize
deform
degas
degenerate
dehydrate
demonopolize
deodorize
depopulate
depreciate
desalinate
desulfurize
devaluate

78 Petroleum Economics
Unit IV

Ex. 7

Match A & B
Decontaminate drinking water sources Сокращение выбросов двуокиси
углерода
Depreciation of the value of the US Сокращение численности сельского
dollar населения
Dehydrated fruits Отключенная линия
Decaffeinated coffee Распад Советсткого Союза
Dehydration of crude oil Сжигание органического топлива
и уничтожение лесов привело к
увеличению концентрации двуокиси
углерода в атмосфере
Decolorizing agent Сухофрукты
Decrement in carbon dioxide emissions Списанные активы
The Bolivian peso devaluated by 93 % Обеззараживать питьевую воду
Rural depopulation Обезвоживание нефти
Deenergized line Обесцвечивающее средство
Decomposition of the Soviet Union Кофе без кофеина
Combustion of fossil fuels and Падение курса доллара
deforestation have caused an increase
of atmospheric concentration of carbon
dioxide
Deactivated assets Боливийский песо обесценился на 93 %

GRAMMAR
Pronoun «that/those» is used to refer to a particular person/people or thing/things
of the general type that has/have just been mentioned:
His own experience was different from that of his friends.
Его собственный жизненный опыт отличался от жизненного опыта его
друзей.

Ex. 8 Read and translate the following sentences into Russian:


1. In Norway wages from industry exceed those from agriculture.
2. In general, chemists figure out what needs to be done, and refining engineers
figure out how to do it. Related to their activities are those of marketing specialists
who think of ways to make consumers buy their products rather than those of com-
petitors.
3. The capacities of transportation and storage functions are easier to visualize
than those of production.
Petroleum Economics 79
Unit IV

4. The value of the dollar, like those of all currencies except those of centrally
planned economies, is determined by international currency trading.
5. Russia's oil exports exceeded those of the United States between 1897 and
1902, when there was a temporary increase in Russian output.
6. Costs that change in proportion to the amount of crude run through the refinery
are said to be variable; obviously, the principal variable cost is that of crude.
7. The Soviet Union lost its leading position in oil production once more in
1928 this time to Venezuela, whose output was to remain either slightly above or
slightly below that of the Soviet Union until the early 1940s.
8. Last year the consumption of gasoline went up to 5,430,000 tonnes, and that of
motor oil was 5,504,000 tonnes.
9. There is debate over what the effects of the 2000s energy crisis will be over the
long term. Some speculate that an oil-price spike1 could create a recession compara-
ble to those that followed the 1973 and 1979 energy crises or a potentially worse situ-
ation such as a global oil crash. Increased petroleum prices are however reflected in a
vast number of products derived from petroleum, as well as those transported using
petroleum fuels.

Ex. 9 Translate the sentences into English:


1. Затраты при доставке тонны нефти через Приморск ниже, чем при дос-
тавке через Вентспилс.
2. Ожидается, что уровень добычи нефти на данном месторождении будет
выше, чем на месторождениях Северного моря.
3. Мощность введенного в строй в этом году НПЗ превышает мощность
старого завода в три раза.
4. Уровень и качество жизни в развитых странах значительно отличается от
уровня и качества жизни в развивающихся странах.
5. Глубина переработки на этом НПЗ лучше, чем у их конкурентов.
6. Прогнозы специалистов компании Бритиш Петролеум относительно ис-
тощаемости запасов нефти отличаются от прогнозов сторонников теории Пика
добычи нефти.
7. Зарплата сотрудников северного филиала нашего предприятия выше зар-
платы сотрудников московского отделения.
8. Запасы природной нефти превышают нетрадиционные (unconventional)
запасы нефти.
9. Отличительной чертой газопроводов является то, что их диаметр намно-
го больше диаметра нефтепроводов.
10. Размер капиталовложений в строительство газопровода пропорциона-
лен.

1
Резкий скачок цен.

80 Petroleum Economics
Unit IV

Ex. 10 State the function of italicized words and translate the sentences into
Russian:
N–v
1. Porsche said its new 911 Carrera 4s would be very competitively priced.
2. The price of fuel keeps going up.
3. After agriculture, overseas trade accounts for the largest portion of the econo-
my.
4. The company trades in silk, tea, and other items.
5. $29,90 a month covers the cost of all your insurance.
6. For years he had used his position at the United Nations as a cover for his spy-
ing activities.
7. Fast food is certainly a growth market with some of the main names develop-
ing their brands with great success.
8. Many companies market their products abroad through distributors.
9. Real estate values continue to rise.
10. The new managers had to learn how to think, feel, and value as managers in-
stead of as individual contributors.
11. The GNP (gross national product) figures measure the rate of growth in the
economy.
12. An inch is a measure of length.
13. The company supplies products and services to the energy sector.
14. The nation's fuel supplies will not last forever.
15. ‘Datapost’ offers a delivery service to over 160 countries.
16. The weakness of the economy still makes it harder for companies to service
their debt.

Active vocabulary

Ex. 11 Read and translate the sentences into Russian:


1. The oil company has closed the refinery, which was only marginally profita-
ble.
2. Canada’s unemployment rate declined to 7,5 % in June from 7,6 in May, as a
result of a marginal increase in employment.
3. Brent blend is a light crude oil, containing approximately 0,37 % of sulphur,
classifying it as sweet crude.
4. Companies need to know how much return they can expect from their IT in-
vestments: they need benchmarks to see how their systems are performing.
5. B&H Maritime transports dry bulk cargo (coal, food grains, iron) and refined
petroleum products.
6. From the mid-1980s to September 2003, the price of a barrel of crude oil on
NYMEX1 with adjustment for inflation was generally under $25/barrel.

1
Нью-Йоркская товарно-сырьевая биржа.

Petroleum Economics 81
Unit IV

7. This year the company is expecting a $300 million budget shortfall.


8. Many new oil and gas fields in the UK are small, technically complex and
economically marginal.
9. One-quarter of the nation’s oil supply is shipped via the pipeline.
10. Do not be afraid to seek professional advice before making a contractual
commitment.
11. A mortgage may be the largest financial commitment you will make in your
life.
12. The OPEC Basket is a weighted average of prices for petroleum blends
produced by OPEC countries. It is used as an important benchmark for crude oil
prices.
13. The International Petroleum Exchange, based in London, is one of the world's
largest energy futures and options exchanges. Its flagship commodity, Brent Crude is
a world benchmark for oil prices, but the exchange also handles futures contracts
and options on gas oil, natural gas, electricity (baseload and peakload), coal contracts
and, as of 22 April 2005, carbon emission allowances with the European Climate
Exchange.
14. The agreement signed between Lybia and Western oil companies in
1971 raised posted prices of oil delivered to Mediterranean from $2,55 to $3,45 per
barrel.
15. Experts agree that oil is a pollutant and that its usage should be made as
efficient as possible and not wasted. The same holds true for electricity
16. The American Petroleum Institute, commonly referred to as API, is the main
U.S trade association for the oil and natural gas industry, representing about 400
corporations involved in production, refinement, distribution, and many other aspects
of the industry.
17. Although Hubbert peak theory receives most attention in relation to peak oil
production, it has also been applied to other natural resources.
18. Supertanker is an informal term used to describe the largest tankers. Today it
is applied to very-large crude carriers (VLCC) and ultra large crude carriers (ULCC)
with capacity over 250,000 DWT. These ships can transport two million barrels of
oil. By way of comparison, the combined oil consumption of Spain and the United
Kingdom in 2005 was about 3,4 million barrels (540,000 m3) of oil a day.
19. Crude oil benchmarks, also known as oil markers, were first introduced in
the mid 1980s. There are three primary benchmarks, WTI (West Texas Intermediate),
Brent Blend, and Dubai. Other well known blends include the Opec basket used by
OPEC, Tapis Crude which is traded in Singapore, Bonny Light used in Nigeria and
Mexico's Isthmus. The Energy Intelligence Group has published a handbook which
identifies 161 different blends in total. Benchmarks are used because there are many
different varieties and grades of crude oil. Using benchmarks makes referencing
types of oil easier for sellers and buyers.
20. In the USA, as well as in most developed countries, the low-end market
consists of lower-priced products suitable for customers who are not willing or able
82 Petroleum Economics
Unit IV

to spend large amounts of money. In developing countries, some low-end products


may be considered high-end or even luxury items.
21. The HP LaserJet 1012 is a low-end, monochrome laser printer from Hewlett-
Packard that retails for US $199.99
22. Upmarket (or high-end) commodities are products, services or real estate
targeted at high-income consumers. Examples of products would include items from
Lexus, Mercedes-Benz, Hammacher-Schlemmer, and Chanel.
23. Ghawar (Arabic:‫ )راوغلا‬is an oil field in Saudi Arabia. It is located about
100 km (62 mi1) WSW2 from the city of Dhahran in Al-Ahsa county of the Eastern
Province. Measuring 280 km × 30 km (170 mi × 19 mi), it is by far the largest
conventional oil field in the world.
24. Saudi Aramco is the state-owned national oil company of Saudi Arabia. It is
the largest oil corporation in the world with the largest proven crude oil reserves and
production. It is thought to be by far the world's most profitable company.
25. Petroleum is vital to many industries, and is of importance to the maintenance
of industrialized civilization itself, and thus is a critical concern for many nations. Oil
accounts for a large percentage of the world’s energy consumption, ranging from a
low of 32 % for Europe and Asia, up to a high of 53 % for the Middle East.
26. Pengrowth, a Canadian oil company, produces petroleum ranging from
heavy crude oil to light oil, natural gas liquids, and natural gas.
27. Much of Nigeria's petroleum is classified as «light» or «sweet», meaning the
oil is largely free of sulphur. Nigeria is the largest producer of sweet oil in OPEC.
This sweet oil is similar in constitution to petroleum extracted from North Sea.
28. Dubai Crude is a light sour crude oil extracted from Dubai. Dubai Crude is
used as a price benchmark or oil marker because it is one of only a few Persian
Gulf crude oils available immediately. The other two main oil markers are Brent
Crude and West Texas Intermediate.
29. Statoil was one of the largest net sellers of crude oil in the world, and a major
supplier of natural gas to the European continent.
30. The US dollar and the euro are by far the most used currencies in terms of
global reserves, making up 90 % of all reserves globally.
31. A wide variety of benchmark crude oils worldwide are considered to be light.
The most prominent in North America is West Texas Intermediate which has an API
gravity of 39,6° API (827 kg/m3). It is often referred to by publications when quoting
oil prices.
32. Chemical processes may be run in continuous or batch operation. In
continuous operation, all steps are ongoing continuously in time. During usual
continuous operation, the feeding and product removal are ongoing streams of
moving material, which together with the process itself, all take place simultaneously
and continuously.

1
Mile.
2
West-south-west.

Petroleum Economics 83
Unit IV

33. When prices of a necessity such as oil rise significantly, demand for luxuries
tends to decline and their prices, therefore, to fall. The adjustment has nothing to do
with inflation, although it might occur with inflation in progress for other reasons.

Ex. 12 Fill in the gaps in the sentences with the following words and word
combinations:
Adjust, hold true, net, clearing customs, marginally, shortfall, commitments,
range (2 n., v.)
1. Holding a reserve currency in significant quantities permits the issuing country
to purchase the commodities at a ___________ lower rate than other nations, which
must exchange their currency with each purchase and pay a transaction cost.
2. In early 2007 the Canadian House of Commons Standing Committee on
Natural Resources considered that the use of nuclear power to process oil sands could
reduce CO2 emissions and help Canada meet its Kyoto ____________.
3. The 2005 Atlantic hurricane season was the most active hurricane season in
the SUA and had far-reaching economic consequences. Because of the vulnerability
of both oil extracting and refining capacity in the Gulf of Mexico, storms led
to speculative spikes in the price of crude oil. The damage to refinery capacity in
the United States caused gasoline to soar to record prices (even _______ for
inflation).
4. There is a wide of organic, or hydrocarbon, compounds in any
given fuel mixture.
5. In monetary economics, the quantity theory of money is the theory that money
supply has a direct, positive relationship with the price level. The theory was
challenged by Keynesian economics, but updated by the monetarist school of
economics. While mainstream economists agree that the quantity theory in the long-
run, there is still disagreement about its applicability in the short-run. Critics of the
theory argue that money velocity is not stable and, in the short-run, prices are sticky1,
so the direct relationship between money supply and price level does not hold.
6. The petroleum industry in Mexico makes it the sixth largest producer of oil in
the world and the tenth largest in terms of export as of 2007. It is the second largest
oil producer in the Western Hemisphere behind only the United States and just ahead
of Canada.
7. After the government announced a 112 million USD budget deficit, mostly due
to in oil exports due to technical problems, the president decided to take a 25 % pay
cut and encourage other members of the government to do so.
8. Customs broker is a profession that involves the barriers for importers and
exporters (usually businesses). This involves the preparation of documents and/or
electronic submissions, the calculation (and usually the payment) on behalf of the
client of taxes, duties and excises, and facilitating communication between the
importer/exporter and governmental authorities.

1
Жесткие цены.

84 Petroleum Economics
Unit IV

9. Fossil fuels from volatile materials with low carbon:hydrogen ratios like
methane, to liquid petroleum to nonvolatile materials composed of almost pure
carbon, like anthracite coal.

Ex. 13 Translate the following collocations into Russian. Use a dictionary:


1. Prices go up
2. Prices rise
3. Prices increase
4. Prices soar
5. Prices reach their high
6. Prices go down
7. Prices fall
8. Prices drop
9. Prices fluctuate
10. A price rise/increase
11. A twofold price increase
12. a reduction/fall/drop in prices
13. Put up/increase/raise prices
14. Cut/lower/slash prices
15. Agree (on) a price
16. Fix a price
17. Quote a price
18. Price freeze (= when prices are kept at the same level)
19. Price war (= when shops try to have the lowest prices)
20. Trigger a price war
21. Prices peak

Ex. 14 Translate into Russian


1. Oil prices soared to a new record.
2. An energy crisis is any great bottleneck (or price rise) in the supply of energy
resources to an economy.
3. The 1990 oil price shock was numerically milder and more brief than previous
oil crises, lasting only 3 quarters, and contributed to the early 1990s recession. The
price increases occurred after the Iraqi invasion of Kuwait on August 2. Prices rose
from $21 per barrel at the end of July to $28 on August 6, reaching $46 by mid-
October. Although the 1990 oil price shock is often considered to have been mild, it
has been argued that its macroeconomic effects were on the same scale as previous
oil shocks. One explanation is that government regulatory reactions did not react in a
flexible manner.
4. Rising prices make investments in new capacity look attractive.
5. Crude oil peaked at $147 per barrel in July 2008, before dropping in mid
summer. The increase has been blamed on a number of factors, including increased
Petroleum Economics 85
Unit IV

demand from developing economies outstripping1 supply, political instability and


nervousness in oil exporting countries such as Iraq, Iran and Nigeria, as well as (at
various times) hurricanes off the American gulf coast.
6. Saudi Oil Minister claimed that Saudi Arabia would not sell over the OPEC
price but would remain committed to the reduction of oil prices.
7. OPEC pursues ways and means of ensuring the stabilization of prices in
international oil markets with a view to eliminating harmful and unnecessary
fluctuations.
8. In the 1973 energy crisis OPEC refused to ship oil to western countries that
had supported Israel in the Yom Kippur War2 or 6 Day War, which they fought
against Egypt and Syria. This refusal caused a fourfold increase in the price of oil,
which lasted five months.
9. From 1998 to 2004 the price of gasoline in the US was between $1 to $2 USD
per U.S. gallon. After 2004, the price increased until the average gas price reached a
high of $4,11 per U.S. gallon in mid-2008, but has receded to approximately $2,60
per U.S. gallon as of September 2009.
10. OPEC output in 1985 hit 18 MMB/D boosting a glut3 and triggering a price
war.

Ex. 15 Fill in the blanks with the word combinations and translate the sen-
tences into Russian:
investment pattern направление капиталовложений
patterns of ownership формы собственности
sales pattern структура сбыта
trading pattern структура торговли
consumption pattern структура потреблении
behavioural pattern – модель поведения
historic pattern – исторически сложившаяся структура

1. The recent recession has changed the _____________________ in the energy


sector.
2. Like other former Soviet States, Armenia's economy suffers from the legacy4
of a centrally planned economy and the breakdown of former Soviet
________________.
3. Petroleum is vital to many industries, and is of importance to the maintenance
of industrial civilization itself, and thus is a critical concern for many nations. Oil
accounts for a large percentage of the world’s energy consumption, ranging from a
low of 32 % for Europe and Asia, up to a high of 53 % for the Middle East. Other

1
Опережающий.
2
Война Судного дня.
3
Вызывать перенасыщение рынка.
4
Наследие.

86 Petroleum Economics
Unit IV

geographic regions’ __________________ are as follows: South and Central


America (44 %), Africa (41 %), and North America (40 %). The world consumes
30 billion barrels (4,8 km³) of oil per year, with developed nations being the largest
consumers.
4. Standard economic theory suggests that technological improvements increase
energy efficiency, rather than reduce energy use. This is called the Jevons Paradox
and it is said to occur in two ways. Firstly, increased energy efficiency makes the use
of energy relatively cheaper, thus encouraging increased use. Secondly, increased
energy efficiency leads to increased economic growth, which pulls up energy use in
the whole economy. Advocates of this theory believe that technology needs to be able
to change _____________________, it can do this by allowing energy users, business
and residential, to see graphically the impact their energy use can have in their
workplace or homes.
5. The economy of Bolivia has had a ________________ of a single-commodity
focus. From silver to tin to coca, Bolivia has enjoyed only occasional periods of
economic diversification. Political instability and difficult topography have
constrained efforts to modernize the agricultural sector.
6. As liquid hydrocarbons, oil or LNG, flow from the wellhead to the consumer,
____________________ change along the course.
The international oil _____________________ experienced a dramatic change
when Russian oil industry developed a major export capability in the mid-1880s, with
the opening of a trans-Caucasian railway which made it possible to ship oil from the
Black Sea. Russia subsequently established a dominant position in markets east of
Suez while taking a substantial minority share of the European market.

Ex. 16 Render the following into English:

Сорта нефти
Сорта товарной нефти вызванное неоднородностью качества сырой нефти
деление на сорта. Введение сортности1 необходимо в связи с разностью состава
нефти (содержания серы, различного содержания групп алканов, наличия при-
месей) в зависимости от месторождения. Стандартом для цен служит нефть
сорта «брент».
Чтобы упростить экспорт были придуманы некие стандартные сорта нефти,
связанные либо с основным месторождением, либо с группой месторождений.
Для России это тяжелая Urals и легкая нефть Siberian Light. В Великобрита-
нии Brent, в Норвегии Statfjord, в Ираке Kirkuk, в США Light Sweet и
WTI. Часто бывает, что страна производит два сорта нефти лѐгкую и тяжѐ-
лую. Например в Иране это Iran Light и Iran Heavy.

1
Grades of quality.

Petroleum Economics 87
Unit IV

Ex. 17

Do you know any magic numbers?


Read about the magic number for oil and translate it into Russian in writ-
ing:

The Magic Number


The magic number is a term in economics that denotes the price of crude oil
(measured in dollars per barrel) at which a crude oil exporting economy runs a
deficit.
Some countries support almost all spending1 from income derived from oil
exports. As the price of oil drops, these countries take in less revenue from oil. The
magic number denotes the point at which the revenue from oil is no longer sufficient
to pay for spending. Mathematically, this can be expressed by the inequality:
Q P>S
where Q is the quantity of oil exported, P is the price, and S is spending. The magic
number is the value of P at which this inequality no longer holds true that is, that
the economy runs a deficit.
PFC Energy, an energy consulting firm, publishes the magic number for all the
OPEC nations.
«Qatar is at $21 a barrel, because it brings in much more oil money than it
spends. Saudi Arabia's break-even point2 is at $49 a barrel. And Venezuela is at $58,
second only to Nigeria's $65.»

Ex. 18 Use the words below to fill in the gaps:


average, barrel, benchmarks, gravity, impact, inventories, marker, spot price,
storage facilities, sulphur,

Price of petroleum
Weekly reports on crude oil ________or total stockpiles in _________
_________ have a strong bearing on oil prices. The price of petroleum means the
_______ ______ of either WTI/Light Crude as traded on the New York Mercantile
Exchange (NYMEX) for delivery in Cushing, Oklahoma, or of Brent as traded on the
Intercontinental Exchange (ICE, into which the International Petroleum Exchange
has been incorporated) for delivery at Sullom Voe. The price of a _________of oil is
highly dependent on both its grade, determined by factors such as its specific
__________ or API and its __________ content, and its location. The vast majority
of oil is not traded on an exchange but on an over-the-counter basis, typically with

1
Несут все издержки.
2
Уровень безубыточности.

88 Petroleum Economics
Unit IV

reference to a __________ crude oil grade that is typically quoted via pricing
agencies such as Argus Media Ltd and Platts. Other important __________ include
Dubai, Tapis, and the OPEC basket. The Energy Information Administration (EIA)
uses the Imported Refiner Acquisition Cost, the weighted _________ cost of all oil
imported into the US, as its «world oil price».
The demand for oil is highly dependent on global macroeconomic conditions.
Some economists say that high oil prices have a large negative _________on the
global growth.
The Organization of the Petroleum Exporting Countries (OPEC) was formed to
maintain the price of oil at a level most beneficial to its membership considered as a
whole, and is considered to be a cartel by some observers.
Oil prices have witnessed significant falls and dramatic rises in the course of the
international oil trade history.
(from Wikipedia, the free encyclopedia)

Ex. 19 Render the following into English

Цены на нефть и их экономическое значение


Цены на нефть, как и на любой другой товар, определяются соотношением
спроса и предложения. Если предложение падает, цены растут до тех пор, пока
спрос не сравняется с предложением. Особенность нефти, однако, в том, что в
краткосрочной перспективе спрос малоэластичен: рост цен мало влияет на
спрос. Редкий владелец автомобиля начнѐт ездить в автобусе из-за роста цен на
бензин. Поэтому даже небольшое падение предложения нефти приводит к рез-
кому росту цен.
В среднесрочной перспективе (5 10 лет), однако, ситуация иная. Рост цен
на нефть заставляет потребителей покупать более экономичные автомобили, а
компании — вкладывать деньги в создание более экономичных двигателей. Но-
вые дома строятся с улучшенной теплоизоляцией, так что на их обогрев тратит-
ся меньше топлива. Благодаря этому, сокращение добычи нефти приводит к
росту цен лишь в первые годы, а затем цены на нефть опять падают.
В долгосрочной перспективе (десятилетия) спрос непрерывно увеличи-
вается за счет увеличения количества автомобилей и им подобной техники. От-
носительно недавно в число крупнейших мировых потребителей нефти вошли
Китай и Индия. В XX веке рост спроса на нефть уравновешивался нахож-
дением новых месторождений, позволявшим увеличить и добычу нефти. Одна-
ко многие считают, что в XXI веке нефтяные месторождения исчерпают себя и
диспропорция между спросом на нефть и еѐ предложением приведѐт к резкому
росту цен наступит нефтяной кризис. Некоторые считают, что нефтяной кри-
зис уже начался, и рост цен в 2003 2008 годах является его признаком.
Так, потерпев поражение в Войне Судного дня, арабские страны решили в
1973 1974 годах сократить добычу нефти на 5 млн баррелей в день, чтобы «на-
Petroleum Economics 89
Unit IV

казать» Запад. Другие страны сумели увеличить добычу на 1 млн баррелей в


день. Общая добыча нефти сократилась на 7 %, но цены выросли в 4 раза. Цены
на нефть сохранялись на высоком уровне (хотя и не таком высоком, как во вре-
мя бойкота) и в середине 1970-х годов, дальнейший толчок им дала иранская
революция и ирано-иракская война. Своего пика цены достигли в начале 1980-х
годов. После этого, по причинам, описанным выше, цены начали падать. За не-
сколько лет они упали более чем втрое. После вторжения Ирака в Кувейт в
1990 году цены выросли, но быстро упали опять, после того как стало ясно, что
другие страны легко могут увеличить добычу нефти. После разгрома Ирака в
1991 году цены продолжали падать и достигли своего минимума $11 за баррель
в 1998 году, что, с учѐтом инфляции, соответствует уровню начала 1970-х го-
дов. В России это привело, в частности, к упадку нефтяной промышленности и
стало одной из причин дефолта.
Страны ОПЕК сумели договориться о сокращении добычи нефти, и к сере-
дине 2000 года цены достигли $30 за баррель. С конца 2003 до 2005 год вклю-
чительно произошѐл новый резкий скачок цен, в мае 2008 г. была достигнута
цена $135, и удерживается на уровне выше $100. Некоторые считают причиной
этого скачка цен предполагаемое вторжение США в Иран. По мнению других,
он знаменует начало давно ожидаемого нефтяного кризиса, когда истощаю-
щимся месторождениям всѐ труднее удовлетворить растущий спрос на нефть.
Большинство аналитиков считают, что эта цена будет снижена. Одни называют
цифру 40, другие 75 долларов за баррель.
Цена нефти в феврале 2008-го уже превышала психологически важную от-
метку в 100 долларов за барель, в марте высокие темпы роста цен про-
должились(110$). Максимальная цена нефти сорта WTI (Light Sweet) была дос-
тигнута 11 июля 2008 года, превысив $147 за баррель.
В октябре 2008 цена на нефть опустилась ниже 67 долларов за баррель в ре-
зультате глобального экономического кризиса и достигла своего 12-месячного
минимума.
Следует отметить, что рост мировых цен на нефть всегда разгоняет долла-
ровую инфляцию, так как США крупнейший потребитель нефти.

Ex. 20 Read the text below and make a summary


How Capitalism Saved the Whales
by James S. Robbins
Part II

The Role of Technology in Saving the Whales


Yet, the American whaling industry peaked in the 1850s. The reason for its de-
cline was not because of public awareness of the evils of whaling, it was not because
of consciousness-raising efforts by pioneer environmentalists, and it definitely was not
because of legislation. The whales were saved because of the march of technology.
90 Petroleum Economics
Unit IV

The first step that led to saving the whales was made by Dr. Abraham Gesner, a
Canadian geologist. In 1849, he devised a method whereby kerosene could be dis-
tilled from petroleum. Petroleum had previously been considered either a nuisance, or
a miracle cure (an idea originating with Native Americans).
Earlier coal-gas methods had been used for lighting since the 1820s, but they
were prohibitively expensive. Gesner's kerosene was cheap, easy to produce, could be
burned in existing lamps, and did not produce an offensive odor as did most whale
oil. It could be stored indefinitely, unlike whale oil, which would eventually spoil.
The American petroleum boom began in the 1850s. By the end of the decade there
were thirty kerosene plants operating in the United States. The cheaper, more effi-
cient fuel began to drive whale oil out of the market.
The man most responsible for the commercial success of kerosene was John
D. Rockefeller. In 1865, at the age of 25, he went into partnership with Samuel An-
drews, the part-owner of a Cleveland refinery. Rockefeller had sensed that too much
capital was being invested in finding and extracting oil, and not enough was being in-
vested in its processing. Backed by investors, he set up a network of kerosene distill-
eries which would later develop into Standard Oil.
As kerosene became generally available throughout the country, the demand for
whale oil dropped dramatically. The 735-ship fleet of 1846 had shrunk to 39 by 1876.
The price of sperm oil reached its high of $1,77 per gallon 47 cents per litre in 1856;
by 1896 it sold for 40 cents per gallon 11 cents per litre. Yet it could not keep pace
with the price of refined petroleum, which dropped from 59 cents per gallon 16 cents
per litre in 1865 to a fraction over seven cents per gallon two cents per litre in 1895.
Rockefeller, too, would eventually find himself having to adapt to the changing
market. A new invention soon snuffed out both flame-based lighting systems. In 1879
Thomas A. Edison began marketing the incandescent light bulb he had invented the
previous year. Arc-light technologies had existed since the turn of the century, but it
was Edison who devised the modern, commercially feasible light bulb, which pro-
duced an even light, burned longer and brighter than oil or kerosene, and was much
safer than an open flame. As the country was electrified, whale oil and kerosene were
both driven from the illumination market.
American whaling might have expired then, but for the vagaries of fashion. The
peripheral market in baleen and whalebone suddenly exploded as more women began
to wear corsets, bustles, and other garments that relied for their shape upon the pliant
material. From 32 cents per pound 71 cents per kilogram in 1870, whalebone rose to
$1,12 per pound $2,47 per kilogram in 1875, and $3,25 $7,17 in 1878, reaching $5.00
$11.00 at the turn of the century. Whalebone constituted 80 percent of the value of a
bowhead1 sperm whales were given a respite because of their lack of baleen. But by
1908, this market crashed as well. Spring steel replaced whalebone in women's fash-
ions, and as automobiles supplanted horse-drawn carriages, demand for whalebone
buggy whips and wagon suspensions collapsed. A few American whalers stayed in bu-

1
Полярный кит.

Petroleum Economics 91
Unit IV

siness, but their time had passed. The last American whaler left port in 1924, and
grounded on Cuttyhunk Island1 the next day.
Stopping technology in its tracks in the 1850s would have doomed the whales.
But suppose whaling had been outlawed then, as it is now? The immediate effect
would have been a dramatic decline in quality of life. Would kerosene and electric
lamps have come on the scene any faster, in reaction to the sudden surge in demand
for substitutes? Maybe but at the cost of the spirit of innovation which brought the
inventions on the scene in the first place. A government which can squelch one en-
deavor, such as whaling, can outlaw any enterprise. The unpredictability and capri-
ciousness of the state is the true enemy of innovation. Gesner, Rockefeller and Edison
had no intention of saving the whales. Their primary motivation was to make a profit.
If the government fosters an atmosphere in which innovation and profit making po-
tential are subject to whims of bureaucrats, lawyers and politicians, and not based on
the abilities of creative people to find innovative solutions to public needs, innovators
will not set their minds to the task, and no state whip can force them to do so. In its
time, killing whales was rational, goal-oriented activity, fulfilling human needs. It
was not «mindless slaughter» for fun or sport. And the decline of whaling was also
rational; human needs remained, even increased-but human ingenuity had found bet-
ter ways to meet those needs. The whale industry declined not because of concern
for the whales, not because of legislation, but because they were no longer a neces-
sary resource.
The whales were not the only beneficiaries of the technological advancements of
the 19th century. The Galapagos tortoise was driven almost to extinction because the
islands were in the center of a major whaling area, and sailors killed the tortoises for
fresh meat. In northern lands, whalers sometimes killed blubber-rich arctic seals2 to
augment their oil stores. Both of these animals were saved by the decline of whaling.
Oil-drilling in Pennsylvania restored many lakes which had been contaminated by
natural petroleum leaks. These were all unintended consequences; but the fact that
technological development under capitalism manages to produce such consequences
consistently argues in favor of the system.
Humans are problem solvers, and the human mind should not be prevented from
doing what only it can do. Creative solutions are superior to state restrictions because
they strike at the causes of problems, not their effects. Furthermore, just as creative
action produces unintentional positive consequences, restricting innovation multiplies
negative effects. No one, especially government agencies or neo-Luddites3, can an-
ticipate the indirect or unintended favorable consequences of technological innova-
tion. This is why Abraham Gesner, John D. Rockefeller and Thomas Edison saved
more whales than Green Peace ever will.

1
Cuttyhunk Island is the outermost of the Elizabeth Islands in Massachusetts.
2
Морской котик.
3
The Luddites were a social movement of British textile workers in the early nineteenth century
who protested often by destroying mechanized looms (ткацкий станок) against the changes
produced by the Industrial Revolution, which they felt were leaving them without work.

92 Petroleum Economics
Unit IV

Despite the extinction of American whaling, the whales were not yet safe. The
whaling mantle passed to other countries, notably Norway, Japan, and the Soviet Un-
ion. Critics of technological development can point to other inventions which kept
whaling on the margins of profitability, notably the rocket harpoon, and the harpoon
cannon. The process of hydrogenation gave whale oil new markets in soap and mar-
garine. A by-product of whale oil is glycerine, used in manufacturing explosives, and
the two World Wars guaranteed a market. The Japanese took increasing numbers of
whales for food, and the Soviets used them for animal fodder1 and fertilizer. By the
middle of the 20th century whaling had revived.
The second cycle of whaling was more destructive than the first in absolute num-
ber; but it never equalled the per capita whale consumption of the previous century.
Had per-capita rates of the 1850s continued unabated, the total would have been three
times that number in the American market alone.
The situation would have been worse for less numerous species. In the first two
decades of the 19th century, American whalers killed right whales2 at an average of
almost 15,000 per year. When whaling dropped off at the end of the century, there
were only about 50,000 right whales left alive.
From The Freeman, August 1992

Ex. 21 Read the text about the API and answer the questions below:
1. What were the preconditions for establishing the API?
2. What were the missions of the API?
3. What are the main functions of the institute?

The American Petroleum Institute

The American Petroleum Institute traces its beginning to World War I, when
Congress and the domestic oil and natural gas industry worked together to help the
war effort.
At the time, the industry included the companies created in 1911 after the court-
imposed dissolution of Standard Oil3 and the «independents.» These were companies
that had been «independent» of Standard Oil. They had no experience working to-
gether, but they agreed to work with the government to ensure that vital petroleum
supplies were rapidly and efficiently deployed to the armed forces.

1
Корм для скота.
2
Китовидный дельфин.
3
Standard Oil was a predominant American integrated oil producing, transporting, refining, and
marketing company. Established in 1870 as an Ohio corporation, it was the largest oil refiner in the
world and operated as a major company trust and was one of the world's first and largest multina-
tional corporations until it was broken up by the United States Supreme Court in 1911. John D.
Rockefeller was a founder, chairman and major shareholder, and the company made him a billio-
naire and eventually the richest man in history.

Petroleum Economics 93
Unit IV

The National Petroleum War Service Committee, which oversaw this effort, was
initially formed under the U.S. Chamber of Commerce and subsequently as a quasi-
governmental1 body.
After the war, momentum began to build to form a national association that could
represent the entire industry in the postwar years. The industry’s efforts to supply
fuel during World War I not only highlighted the importance of the industry to the
country but also its obligation to the public.
The American Petroleum Institute was established on March 20, 1919:
to afford a means of cooperation with the government in all matters of national
concern,
to foster foreign and domestic trade in American petroleum products,
to promote in general the interests of the petroleum industry in all its branches,
to promote the mutual improvement of its members and the study of the arts
and sciences connected with the oil and natural gas industry.
API offices were established in New York City, and the organization focused its
efforts in several specific areas.
The first effort was to develop an authoritative program of collecting industry sta-
tistics. As early as 1920, API began to issue weekly statistics, beginning first with
crude oil production. The report, which was shared with both the government and the
press, was later expanded to include crude oil and product stocks, refinery runs and
other data.
API statistics remain one of the most credible sources of industry data and they
are used worldwide.
The second effort was the standardization of oil field equipment. During World
War I, drilling delays resulted from shortages of equipment at the drill site, and the
industry attempted to overcome that problem by pooling equipment. The program
reportedly failed because there was no uniformity of pipe sizes, threads2 and coupl-
ing3. Thus, the new association took up the challenge of developing industry-wide
standards and the first standards were published in 1924.
Today, API maintains more than 500 standards and recommended practices cov-
ering all segments of the oil and gas industry to promote the use of safe, interchange-
able equipment and proven and sound engineering practices.
The third major area of activity was taxation. Initially the efforts included work-
ing with the Treasury Department and congressional committees to develop an order-
ly, logical and easily administered way to tax oil assets. In the 1930s, these efforts
extended to working state governments. Both the federal and state governments tax
highways fuels to fund the building of roads, and the industry supported tougher laws
against tax evasion.

1
Контролируемый государством.
2
Резьба.
3
Муфта обсадной трубы.

94 Petroleum Economics
Unit IV

This led to the formation of the API state petroleum council network. API now
has offices in 21 state capitals and represents members in 33 states, all east of the
Rocky Mountains.
In late 1969, API made the decision to move its offices to Washington, DC where
we remain today. With 400 corporate members, we are one of the country's larg-
est national trade associations, and the only one that represents all aspects of Ameri-
ca’s oil and natural gas industry.
[This short history of API is based on The Story of the American Petroleum Insti-
tute, by Leonard M. Fanning, 1959, and The American Petroleum Institute: An Infor-
mal History (1919 – 1987) by Stephen P. Potter, 1990]

Ex. 22 Read the conversation between the analyst and investor. Play the
roles with your partner and discuss the topic of trading oil on the exchange
market.

Беседа. Биржевая торговля нефтью

Сорта нефти. Биржевая торговля нефтью. Brent и Light Sweet - мар-


керные сорта.

Инвестор: Сейчас все и всюду говорят цены на нефть достигли 80 долла-


ров за баррель. Как цена формируется? Насколько мне известно, при этом оце-
нивается баррель не российской нефти Urals, а сорта Brent. Как связана цена на
Urals с ценой на сорт Brent?
Аналитик: Сортов нефти в мире очень много. Почти каждая нефтедобы-
вающая страна поставляет на мировой рынок несколько сортов нефти. Химиче-
ский состав нефти отличается от скважины к скважине и чтобы упростить экс-
порт были придуманы некие стандартные сорта нефти. Для России это Urals и
Siberian Light. В Великобритании Brent, в Норвегии Statfjord, в Ираке
Kirkuk, в США Light Sweet. Часто бывает, что страна производит два сорта
нефти лѐгкую и тяжѐлую. Например в Иране это Iran Light и Iran Heavy. У нас
легкая нефть это Siberian Light, а Urals тяжелая.
Инвестор: Получается, что существует множество сортов нефти, отличаю-
щихся своими характеристиками. Соответственно, цены на эти сорта должны
быть разные?
Аналитик: Да. Цены на них разные и отличаются где-то в пределах 10
15 %. На самом деле, даже внутри сорта есть некоторая разница. Например,
есть понятие Urals черноморский и Urals балтийский.
Инвестор: А как между собой различаются черноморский и балтийский
Urals и откуда вообще взялось такое деление?
Аналитик: Два самых крупных российских порта это Новороссийск на
Черном море и Приморск на Балтийском море. Магистраль, которая идѐт к
Черному морю собирает нефть одних производителей, а магистраль, которая

Petroleum Economics 95
Unit IV

идет к Балтийскому морю других. В котировках мировых энергетических


агентств указывается Urals ex-Black Sea и Urals ex-Baltic Sea. Так что есть даже
такие различия. Вообще, сортов нефти очень много. Но почему мы обычно го-
ворим о сортах Brent и Light Sweet? Потому что эти сорта торгуются на биржах,
а Urals на бирже не торгуется.
Инвестор: Вообще не торгуется?
Аналитик: Вообще. Очень много лет идет дискуссия о том, что пора орга-
низовать торговлю российской нефтью. В конце концов, физически нефти Urals
добывается гораздо больше, чем Brent. Так почему же цена на Urals привязана к
цене Brent, а не наоборот?
Инвестор: То есть нефти марки Brent добывается совсем немного?
Аналитик: Brent это нефть, которая добывается на нескольких месторо-
ждениях в Северном море, у побережья Великобритании. Смесь Brent торгуется
в Лондоне на InterContinental Exchange Futures (ICE Futures).
Инвестор: Не слышал о такой бирже.
Аналитик: Она больше известна как International Petroleum Exchange (IPE).
Не так давно биржа сменила своѐ название на ICE Futures.
Инвестор: А в Америке что торгуется?
Аналитик: В Америке торгуется Light Sweet на New York Mercantile Ex-
change. Есть два мировых центра торговли нефтью это бывшая IPE в Лондоне
и NYMEX в Штатах. На них котируются так называемые маркерные сорта
Brent и Light Sweet. Другие сорта нефти продаются либо с надбавкой, либо
со скидкой к маркерным. Для России основным ориентиром служит цена на
Brent всѐ-таки Штаты от нас далеко.
Инвестор: Я так понимаю, что нефть-то мы в основном продаем в Европу?
Аналитик: Нефть мы продаем в Европу, потому что Европа географически
близка к нам. Небольшое количество дальневосточной нефти уходит в Японию
и в страны Юго-Восточной Азии. Из Восточной Сибири идут поставки в Китай.
Но всѐ это небольшие объѐмы. А вот то, что добывается на Урале, в Западной
Сибири, в европейской части страны (Поволжье, Тимано-Печора) уходит в За-
падную и Восточную Европу.
Инвестор: А что такое «маркерные сорта»?
Аналитик: В контрактах на поставку нефти цена указывается в виде скидки1
или надбавки2 к котировке маркерного сорта. Скажем, стороны договаривают-
ся, что нефть будет поставляться по цене на четыре доллара дешевле, чем стоит
Brent. В дальнейшем смотрят на биржевые котировки и путем вычитания со-
гласованной разницы получают цену исполнения контракта.
Инвестор: Brent самая хорошая нефть?

1
Discount.
2
Еxtra charge.

96 Petroleum Economics
Unit IV

Аналитик: Нет, но одна из лучших. Urals хуже, чем Brent, он более сер-
нистый, вязкий, из него получается меньше бензина. В России есть место-
рождения качественной нефти, например Сандибинское, разработку которого
ведѐт «РИТЭК». Такую нефть прямо на месторождении заливают в цистерны
и по железной дороге везут на Запад, чтобы она по дороге ни с чем не смеши-
валась. Конечно, перевозка в цистернах очень дорога, но за счѐт того, что
эта нефть продается дороже, чем Brent, такой способ транспортировки оправ-
дан.

Petroleum Economics 97
WORD INDEX

1. Account for v. 2 44. Deplete 3


2. Allowance 3 45. Depletion 3
3. API (American Petroleum Institute) 4 46. Development 1
4. API gravity 4 47. Disparity 1
5. Apply to 4 48. Do smb. good 1
6. Average 3 49. Do smb. harm 1
7. Avoid v. 2 50. Downstream 1
8. B/D [barrels per day] 1 51. Downtime 3.
9. Barrel 1 52. Drill 1
10. Bbl [barrels] 1 53. Driller 1
11. Be off stream 3 54. Drilling
12. Be on stream 3 55. Drilling crew 1
13. Benefit 1 56. E&D (exploration and development) 1
14. Bottleneck 3 57. Enhance 1
15. Brand n. 2 58. Enhancement 1
16. Bring forth1 59. Estimate 3
17. Bring/put a field on stream 3 60. Exploration 1
18. Bulk 2 61. Explore for oil 1
19. By far 4 62. Extent 3
20. Capacity 2 63. Extract 1
21. Cash flow 3 64. Facility 1
22. Compete 1 65. Feasibility study 1
23. Competition 1 66. Feasible 1
24. Competitor 1 67. Feedstock 1
25. Constraint 3 68. Finished product 2
26. Constrict 3 69. Flow 3
27. Constriction 3 70. Fluid 1
28. Consume 1 71. Fuel oil 1
29. Consumer 1 72. Gasoline 1
30. Consumption 1 73. Grade 4
31. Contaminant 1 74. Gravity 4.
32. Contaminate 1 75. Handle 3
33. Contractor 1 76. Have to do with 3
34. Convey1 77. Heating oil 1
35. Conveyance 1 78. High end 4
36. Cooking 3 79. Imply w
37. cCost 1 80. Independent company 1
38. Counterpart 3 81. Integrated company 1
39. Crucial 1 82. Intermediate product 2
40. Crude 1 83. Inventory 2
41. Crude oil 1 84. Invest 3
42. Debottlenecking 3 85. Investment 3
43. Density 4 86. Involve 1

98 Petroleum Economics
87. Lay a pipeline 2 129. Refinery 1
88. Lease 2 130. Refining 1
89. Liquefy 2 131. Regular grade 4
90. Liquid n. 2 132. Retail 2
91. LNG (liquefied natural gas) 2 133. Retailer 2
92. Logistics n. 2 134. Revenue 1
93. Low end 4 135. Rock 1
94. Lubricating oil 1 136. Salt dome 2
95. Main 2 137. Secondary 2
96. Maintain 3 138. Seismic section 1
97. Maintenance 3 139. Shrink (shrank shrunk) 3
98. Make allowances for 3 140. Sophisticated 1
99. Make investments in 3 141. Sort out 4
100. Marine terminal 2 142. Sour oil 4
101. Midgrade 4 143. Storage facility 1
102. Natural flow 3 144. Stream day 3
103. Oil-bearing 1 145. Stuff 1
104. On behalf 2 146. Sulphur 1
105. Operation 1 147. Supply 1
106. Operator 1 148. Surge 3
107. Outlet 2 149. Sustainable 3
108. Ownership 1 150. Sustained 3
109. Petrol 1 151. Sweet oil 4
110. Petroleum 1 152. Take over 1
111. Petroleum products 1 153. Tank 2
112. Pipeline 1 154. Tank truck 1
113. Posted price 4 155. Tend 1
114. Premium grade 4 156. Tertiary 2
115. Primary 2 157. Hold true (for) 4
116. Process 1 158. Transaction 1
117. Processing 1 159. Truck 2
118. Produce 1 160. Trunk pipeline 2
119. Production 1 161. Ultimate 3
120. Prospect 1 162. Ultimate capacity 3
121. Prospecting 1 163. Upstream 1
122. Purchase 2 164. value 1
123. Purchase v. 2 165. Volatile 3
124. Range 4. 166. Volatility 3
125. Rate 3 167. Well 1
126. Raw material 1 168. Wellhead 2
127. Recover investments 3 169. Wholesale 2
128. Refine 1

Petroleum Economics 99
Учебное пособие

Е.Ю. Симакова

«PETROLEUM ECONOMICS
(ЭКОНОМИКА НЕФТЕГАЗОВОЙ ОТРАСЛИ)»

Редактор Л.А. Суаридзе


Компьютерная верстка И.В. Севалкина

Подписано в печать 8.12.2011. Формат 60×84/8.


Бумага офсетная. Печать офсетная. Гарнитура «Таймс».
Усл. п.л. 6,0. Тираж 500 экз. Заказ № 554

Издательский центр
РГУ нефти и газа им. И.М. Губкина
Ленинский просп., 65
Тел./Факс: (499) 233 95 44

80 Petroleum Economics