Экономика нефтегазовой отрасли = Petroleum Economics

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-методическое 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 англоязычной коммуникативной компетенции в области международного профессионального 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 характера. Кроме того, в пособии включены задания на развитие умений конспектирования и аннотирования. Текстовый материал пособия подобран из научных журналов, учебников и учебных пособий по экономике и менеджменту в области энергетического сектора. Пособие может быть также использовано в группах магистрантов и аспирантов экономических специальностей вузов нефтегазового профиля.

Е.Ю. Симакова., 2011 Издательский центр РГУ нефти и газа имени И.М. Губкина, 2011

Содержание

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

4

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

28

UNIT III ................................................................................................................. Grammar: Revision TextThe Notion of Capacity Skills: Writing Summaries

46

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

69

Word Index ..............................................................................................................

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Unit I

Unit I Grammar Revision Text

ing-forms Oil Industry Structure

Ex. 1 Read and translate the international words, try to give more than one variant of translation, where possible: E.g.: combination – комбинация, сочетание Active Alternative Category Characterize Collection Combination Complex (adj.) Constitution Contaminant Conversion Conveyer Discrete Focus (v.) Generate Industry

Injection Installation Integrate Manufacture Operation Orient (v) Potential Production Salt Segment Transform Unique Parity

Ex. 2 Match the Russian words from A with the English words from B A

B

1. Вариант 2. Введение 3. Возможный 4. Действующий 5. Добыча 6. Изготовлять 7. Набор 8. Объединять 9. Передавать 10. Превращение 11. Преобразовывать 12. Промышленность 13. Технологический процесс 14. Раздельный 15. Раздел 4

1. Active 2. Alternative 3. Collection 4. Combination 5. Complex 6. Composition 7. Constitute 8. Conversion 9. Convey 10. Discrete 11. Focus 12. Generation 13. Industry 14. Injection 15. Installation

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16. Сложный 17. Создание 18. Сосредоточивать 19. Составлять 20. Состав 21. Сочетание 22. Установка

16. Integrate 17. Manufacture 18. Operation 19. Potential 20. Production 21. Segment 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, complex function, marketing specialist, service station, ocean-going barge, unique characteristics, 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 Russian, as in our language they have a different meaning, e.g. off-shore platform морская 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 E.g. value mixture to refinе to extract familiar to prospect provision

B значение, ценность извлекать, добывать знакомый обеспечение разведывать очищать, перерабатывать смесь

C валюта

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

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Words to Text 1 1.

gasoline n. petrol n.

амер. бензин; газолин брит. бензин

2.

heating oil

топливо коммунально-бытового назначения

3. 4. 5.

lubricating oil fuel oil dosmb. good

смазочное масло топочный мазут приносить кому-либо пользу, быть полезным Ex. Milk does you good. наносить вред, вредить, быть вредным Ex. Smoking does you harm.

ant. dosmb. 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 Ex. We don’t fish in this river, it’s contaminated.

contaminate v. 8.

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. 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.

value n.

~ v.

9.

сonvey v. to~goods (passengers, luggage) conveyance n.

6

перевозить, транспортировать, доставлять перевозить товары (пассажиров, багаж) Ex. Electricity is conveyed to our homes from power stations. перевозка, транспортировка

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осуществимый, выполнимый Ex. Your plan sounds quite feasible. технико-экономическое обоснование (ТЭО) Ex. The company is conducting a feasibility study for the Iran-India gas pipeline.

10. feasible a. feasibility study

11. sulfur n (Am) sulphur (Brit)

сера

12. fluid n.

жидкость, текучая среда, флюид Ex. Oil and gas are fluids. жидкий, текучий; подвижный, изменчивый Ex. As markets become more fluid and global, leaders must be more careful with investors.

~a.

обрабатывать, подвергать обработке Ex. One has to process a photographic film to print pictures from it. 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.

13. process v. processing of oil and gas n.

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. добыча добыча угля, руды, нефти, газа Ex. Production of oil has increased in the recent years. перерабатывать, очищать, рафинировать to ~ oil 1) перерабатывать, очищать нефть; 2) рафинировать масло Ex. Oil must be refined before it can be used. очистка, перегонка, переработка petroleum ~ переработка нефти Petroleum refining is a complex process. Нефтеперерабатывающий завод (НПЗ)

production n. ~ of coal, of ore, of oil, of gas

16. refine v. refining n. refinery n.

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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 material for gasoline. Ex. Coal was the feedstock for all kinds of chemicals until it was replaced by oil.

syn. feedstock

20. involve v.

be involved in smth 20.

21. contractor n.

8

1) включать, содержать Ex. What will the job of the personnel manager involve? 2) подразумевать, предполагать Ex. Taking the job involves living abroad. быть вовлеченным, участвовать в чем-либо Ex. China is currently involved in multiple international oil and gas projects. 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. Petroleum Economics

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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. Ex. When prices of oil rise significantly people tend to buy less.

~ to smth., to do smth. 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 The oilfield operation started a year ago.

operator n.

оператор, сервисная компания, подрядчик Ex. Transnefteproduct is an operator of oil products pipelines in Russia. 27. development n. oil field ~

E&D (exploration and development)

разработка месторождения разработка нефтяного месторождения Ex. Petroleum exploration, development and production require significant investment. Exploration and development работы по разведке и разработке месторождения Petroleum Economics

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принимать должность (и т.п.) от другого принять должность (пост) мэра принять на себя руководство делом (предприятием) приобретение контрольного пакета акций (какой-либо компанией другой компании) Ex. His only reason for investing in the company was to take it over.

28. take over v. to ~ the office (of mayor) to ~ a business takeover n.

29. еnhance v. to ~ production enhancement n. ~ of oil recovery

усиливать, увеличивать, повышать увеличивать добычу повышение, увеличение повышение нефтеотдачи

30. сonsume v. to ~ fuel

потреблять, расходовать расходовать горючее Ex. An economy consumes more Energy when it is active. потребитель: лицо, которое, в конечном итоге, пользуется данным товаром или услугой (это не всегда покупатель). Ex. Price determines whether consumers consume. потребление Ex. The nation’s consumption of oil and gas increased last year.

consumer n.

consumption n.

31. сompete v.

конкурировать to ~ against smb. – конкурировать с кем-либо конкурент, соперник по бизнесу Ex. Natural gas is oil’s main сompetitor on the fuel market. конкуренция: столкновение спроса и предложения. Ex. Japanese TV-set manufacturers are under price competition from Korean and other makers.

competitor n.

competition n.

32. supply n. to bring up / provide supplies fresh supplies power supply supplies to be in short supply 10

1) снабжение, поставка обеспечить снабжение, поставки, новые поступления, новые поставки, электроснабжение, энергоснабжение 2) ресурсы, припасы, запас; быть в дефиците

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делать запасы пополнять запасы делать запасы богатые запасы Ex. The nation's fuel supplies will not last forever. снабжать (чем-либо), поставлять; доставлять Ex. The company supplies fish to local shops and restaurants.

to lay in supplies to replenish supplies to store supplies abundant/liberal/plentiful supplies

~v.

33. facility n. storage ~

объект, сооружение, установка, 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 integrated company

независимая компания интегрированная компания

36. benefit n.

прибыль, выгода Ex. We will focus our marketing message on the environmental benefits of our product. Приносить прибыль, выгоду

~ smb v.. 37. barrel n. B/D [barrels per day] bbl [barrels]

баррель (мера вместимости: для нефти = 159 л.) баррелей в день 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

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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 underground 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 contaminants, 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 underground 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 discretely. 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, installation of equipment to handle produced fluids, and perhaps a program of water injection or other method of enhancing production. 1

12

Липкий. Petroleum Economics

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4. All these physical steps still must be performed. Since the mid-1980s, however, 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 generally big molecules, constituting crude oil, and turns them into little, more useful molecules 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. Related 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 industry 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 hydrocarbon 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 implications1. They relate to the organization of companies, patterns of trade, and market behavior. 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 refiners, 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

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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 downstream units), even when the transactions occur internally. The advantages of integration have been the subjects of lively economic debate since John D. Rockefeller controlled 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 conduct 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 meaning 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

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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 information 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

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Words Ex.10 Match words in A with their explanations in B. A

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

1. Blend 2. Consumer 3. Contractor 4. Convey 5. Crude oil 6. Feasible 7. Feedstock 8. Involve 9. Raw material 10. Revenue 11. Rock 12. Stuff 13. Supply 14. Take over

15. Value

Ex.11 Build words and translate them into Russian: employ

employer employee

employment

-------------

blend

-------------category

----------------characterize consumption conveyor compete 16

conductivity ------------------------------------------

Petroleum Economics

employable

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contaminative --------------determinant --------------extract

contract enhancement

generator

generative heat

locate

-------------lubricant

-----------------

-------------product recognition refining specialization storage supply

performing

manufacturer organizer performance

--------------

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

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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 underground, 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 сразу 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

подробнее 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 объединились. 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 уменьшаться. 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 финансирования 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). in greater/more detail

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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 number 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 directly. 13. Supply, demand, and price constantly push and pull at one another as the result 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 factor 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

20

Работа. 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 of crude oil was practically unknown, because of the relatively high cost of transporting crude

rather than

the number of places oil could leak from.

We will examine the parts of the oil industry

in fact

products.

Trucking, pipelining, and shipping are

in greater detail

some prefer to conduct only development and production operations.

Oil underground has no value, therefore, until someone first finds it and then conveys it to the Earth's surface, or

at this point

all very distinct businesses, each with its own professional specialty.

The unit construction reduced the number

…there are independent producers, which specialize in upstream work.

Esso operates

at least

later.

Some independents focus on exploration,

thus

proves that the conveyance is economically and technically feasible.

Some companies, for example, organize around particular functions

while

upstream and downstream operations.

Other companies organize around the concept of integration ownership of

a number

of oil and gas platforms in Australia.

What is important

both

is to recognize the unique characteristics of the petroleum supply functions and the people who perform them.

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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, pipelining, and shipping are all very distinct businesses; independent refiners, which concentrate 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 relationships 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 comprehensible 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

22

Пик добычи нефти. Petroleum Economics

Unit I

closer to running out given demand is expected to rise strongly in the shortterm. 14. One more concept is crucial to an understanding of petroleum price movements. 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 mid1880s, 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 pricing 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 consumers. 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 marketing of these products, is known as the downstream. 12. Petroleum exploration, development and production require long-term investments. 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 sevenstoreyTower 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 Europe’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 nightfall and having none is amazing. It was not that the Europeans in the Dark Ages ignored 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 landbased resources of oil near London, Paris, Rome or any other centre of western Europe’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 продуктов относятся ко вторичным отраслям нефтегазового хозяйства. 8. Для того, чтобы добывать углеводородное сырье, требуется сложное оборудование. 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) такие 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 activities 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 increasing 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 нефтепродуктов и доставки их потребителям требуется участие большого количества организаций и предприятий, осуществляющих различные технологические процессы, тесно связанные между собой. В настоящее время можно выделить следующие сферы деятельности в нефтегазовой отрасли: поиск и разведка месторождений; 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 переработка нефти и газа, потому что они создают продукцию – сырую нефть и газ и продукты их переработки. Деятельность остальных сфер подчинена им.

Petroleum Economics

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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 variant of translation, where possible: Terminal Product Reserve Service Station Boiler Automobile System

Invest Brand Function Tanker Dealer Marine Barge

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 E.g inventory local direction tank examination general

B Список, реестр

C Инвентарь

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 hospital. 28

Petroleum Economics

Unit II

Words to Text A 1.

liquid n.

liquefy v. LNG (liquefied natural gas)

жидкость Ex. Water is a liquid. a. жидкий Ex. Liquid gas is cheaper to transport. сжижать, превращать(ся) в жидкое состояние сжижать Ex. People learned to liquefy gas at the end of the 19th century. (СПГ) сжиженный природный газ Ex. The construction of LNG tankers demands a sophisticated technology, combining maximum safety with optimum economic conditions. устье скважины Ex. Pipelines convey oil, gas and petroleum products from the wellhead to consumers. 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.

2.

wellhead n.

3.

primary a.

4.

secondary a.

вторичный Ex. Price is the most important factor for us location is a secondary issue.

5.

tertiary a.

6.

handle v.

третичный Ex. 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

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Unit II

7.

8.

trunk pipeline n. syn. main to lay a pipeline

магистральный трубопровод

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 terminal in Murmansk. ~ plant – нефтебаза

retail a.

розничный, предназначенный для индивидуальных 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 managing a number of shopping centers in New Zealand. розничный торговец ~ trade (business) – оптовая торговля ~ dealer – оптовый торговец, оптовик Ex. Japan’s wholesale prices in December were unchanged.

8. 9.

nt. wholesale a. retailer n. = retail dealer

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.

10. outlet n.

рынок сбыта; торговая точка retail ~ розничный магазин Ex. Benetton has retail outlets in every major European city.

11. inventory n.

список, реестр Ex. We need a full inventory of the company’s product consumers. материально-производственные запасы, (товарно-)материальные запасы Ex. There is an interesting article on the inventories of the company in the «Economist»

inventories 12. lease n.

30

аренда Ex She has signed a lease contract with Texaco to drill for oil on the land she owns. Petroleum Economics

Unit II

13. tank n. ~ truck ~ farm fuel oil ~ gasoline ~

резервуар, емкость, хранилище, цистерна автоцистерна нефтебаза топливный бак бензобак

14. marine terminal

морской терминал, портовая база, перевалочная 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

17. purchase n. purchase v.

готовая продукция, готовый продукт Ex. Finished products move from refinery storage by pipeline покупка, закупка, купля Ex. House purchase is the biggest decision that most people make. покупать, закупать, приобретать Ex. The land was purchased for investment purposes.

18. avoid v. ~ smth.,doing smth.

избегать, уклоняться избегать чего-либо, делать что-либо. Ex. She avoided answering my questions.

~ costs 19. logistics n.

избегать расходов 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

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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 pattern. 2. The U.S. distribution system has three parts. What is called the primary distribution system handles crude oil and products from the wellhead to large bulk terminals for petroleum products. The secondary distribution system divides the large quantities of product from large bulk terminals into smaller quantities for delivery to retail outlets and smaller bulk storage facilities. The tertiary system includes storage facilities 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 stations 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. Imported crude oil arrives by tanker for unloading at marine terminals, which have storage 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 Reserve. 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, stopping usually at the large bulk terminal that represents the end of the primary distribution system. 5. The secondary distribution system includes localized storage facilities and retail outlets. The storage at this stage usually involves wholesale bulk plants that receive 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

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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 tertiary 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. Especially 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 attendant 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 likely 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 distribution 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

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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 boilers 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 products. 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

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Ex. 8 Build words and translate them into Russian: employ

employer employee

employment

----------

employable

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

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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) approximately 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 the number

in fact a number

in greater detail thus while

at this point indeed 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 военных целях. 3. За последнее время в Западной Сибири был пробурен целый ряд горизонтальных скважин. 4. Авиалинии закупают реактивное топливо напрямую у НПЗ, избегая, таким образом, дополнительных затрат. 5. В настоящее время компания проводит технико-экономическое обоснование 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

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нефть, в то время как Аргентина и Канада добывали нефть только для собственного 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 possessive case

prepositional

noun compounds

Examples

refiner’s brand

change of ownership

service station

Ex. 10 Join the words below in an appropriate noun structure; use necessary articles: 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

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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 коллекторе. 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

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12. Переработанная сырая нефть; компания, перерабатывающая сырую нефть. 13. Разработанное месторождение; разрабатывающий месторождение. 14. Повышенная добыча; метод, повышающий добычу; компания, повысившая уровень добычи. Grammar Consider the following sentences with verbals and the way they can be translated 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 математике за счет того, что много занималась. – Метод. On (after) returning from Beijing, he wrote to the Chinese embassy. – Вернувшись 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 functions 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

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13. Based on existing resource estimates world oil and gas resources are extensive. 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 inflation. 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 pipeline 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 exports 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 retailers 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

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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 миллиардов 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 Пакистане. 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 нефтяных проектов. 12. Иран, занимая второе место в мире по запасам природного газа, добывает около 70 млрд. баррелей. 13. Новый наливной терминал, построенный в прошлом году, работает на полную мощность. Petroleum Economics

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14. Взяв в аренду емкости для хранения нефтепродуктов, мы сможем избежать дополнительных расходов. 15. Правильно организованное материально-техническое снабжение газораспределительной 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 storage gas supplier consumer (2) distribution facility demand

for

_____________________________________ Under the Gas Act 1986, the gas industry in Great Britain, in state ownership since 1949, _______________ and the assets of the British Gas Corporation transferred 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 methods 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 temperatures 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 (Великобритания). 2 Единица теплосодержания газа (Великобритания). 42

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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 – beginning 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 percent increase) and 2.47m tons through the Naushki terminal (down 5.9 percent). ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________ Petroleum Economics

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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 production Kazakhstan is compelled to import gas to meet 44 % of its domestic gas demand. 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 supporting the long-term agreements signed with Gazprom for gas transportation from Turkmenistan, Uzbekistan, and Kazakhstan to Russia and farther to Europe. Kazakhstan is upgrading the CAC system independently. The projects for adding throughput capacity to domestic pipelines and new pipeline construction have been initiated under the National Program for Building up Kazakhstan'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 components. ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ________________________________ Ex. 18 Render the following text in English in writing. Трубопроводный транспорт сегодня Развитие топливно-энергетического комплекса, определенное энергетической стратегией России на период до 2020 года, во многом будет зависеть от работы магистрального трубопроводного транспорта энергоресурсов. На сегодняшний день на территории Российской Федерации создана разветвленная сеть газопроводов, нефтепроводов и продуктопроводов, проходящих по территориям многих регионов страны. Протяженность российских магистральных трубопроводов, транспортирующих продукцию нефтегазового комплекса, составляет 219 тыс. км. Важно отметить, что с помощью магистральных трубопроводов перемещается 100 % добываемого газа, около 99 % добываемой нефти, более 50 % продукции, производимой подключенными к системе магистральных продуктопроводов нефтеперерабатывающими предприятиями. 44

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Трубопроводный транспорт включает в себя значительное количество сооружений. В частности, на магистральных трубопроводах и подземных газохранилищах Единой (national) системы газоснабжения эксплуатируется 247 газокомпрессорных станций общей мощностью более 42 млн кВт. Число газораспределительных станций, обеспечивающих подачу газа потребителям, составляет 3,3 тыс. За последние годы резко возросла роль трубопроводного транспорта в российской экономике. Трубопроводный транспорт активно влияет на формирование и развитие ТЭК страны и отдельных регионов, являясь его важной частью, и обеспечивает как передачу добытого и переработанного сырья, так и его экспорт. Кроме того, трубопроводный транспорт выполняет роль распределительной системы энергетического сектора. Таким образом, системы трубопроводного транспорта являются эффективным инструментом реализации государственной 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 возникнуть в силу различных причин. Зачастую морской транспорт является единственным 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 магистральными нефте- и газопроводами. Помимо этого морской транспорт обеспечивает 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 мировой 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

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Unit III

UNIT III Grammar : Text Skills:

Revision The Notion of Capacity Writing Summaries

Ex. 1 Read and translate the international words, try to give more than one variant of translation, where possible: boiler complex component cracking diameter distillation eguipment fraction function hydrocracking invest

isolate limit modern modification modify nature optimum parity phase reason

region ruin substance technology technique theory total upgrade visualize

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. полная мощность

ultimate capacity 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.

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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.

нефть в залежи/ в пласте

7.

oil in place oil in situ constraint

8.

be on stream

быть/находиться в эксплуатации Ex. The field has been on stream for three months. простаивать начать эксплуатацию месторождения Ex LUKOIL is going to bring two new fields on stream this month.

be off stream 9. bring/put a field on stream

ограничение Ex. There have been financial and political constraints on the development of the oilfield.

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. истощение (запасов месторождения), обеднение; исчерпание (запасов нефти или газа) Ex. In recent years, crude oil production has been falling, mostly due to depletion of existing oil fields.

depletion n.

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17. shrink v. (shrank shrunk)

18. surge v.

surge n.

surge capacity 19. maintain v.

20. maintenance n.

21. invest v.

22. investment n.

make investments in recover investments 23. sustained a.

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сжиматься, садиться Ex. We want to expand the business, not shrink it. I'm worried about washing that shirt in case it shrinks подниматься, повышаться Ex. Stocks surged Wednesday following positive economic reports. резкий скачок Ex. Last year there was a surge in the company's profits to $122m. пиковая мощность Ex. 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. 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. инвестировать, вкладывать денежные средства; помещать капитал Ex. Investing in property is no longer as safe as it used to be. инвестирование, вложение капитала Ex. The lessons cost me over $500, but I consider them a good investment. делать инвестиции возвращать вложенные средства длительный, поддерживаемый, непрерывный Ex. The Government can not maintain conditions for sustained growth if they do not introduce such conditions. Petroleum Economics

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24. sustainable sustainable producing rate sustainable growth

устойчивый устойчивый темп добычи 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. 2) неустойчивый, переменчивый неустойчивый рынок: рынок с быстроизменяющимися ценами Ex. People are afraid to change jobs in today's volatile economy. 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.

volatile market

29. volatility n.

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30. average n above the average below the average on average

average a.

average v. 31. downtime n.

32. constrict

33. constriction n. 34. bottleneck n.

среднее значение, число, величина выше среднего Ex. Executive1 salaries in financial services and the communications industry were 18 percent above the average. ниже среднего, в среднем Ex. On average, men still earn more than women. средний, нормальный, обыкновенный, обычный Ex. Average world oil prices fell by over 50 percent in 1986 . составлять, равняться в среднем Ex. Inflation averaged just under 2,8 % per year. 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. стягивать, сжимать, сокращать Ex. Caffeine constricts the blood vessels in your body. ограничение, стеснение узкое место, препятствие, помеха Ex. Internet bottlenecks and overloaded servers at popular Web sites can still create substantial delays.

35. cooking n. 36. counterpart n.

коксование аналог, эквивалент Ex. Bars in Madrid offer more, and better, food than their American counterparts. коллега, должностное лицо, занимающее аналогичный пост (в другом учреждении, в другой стране и т.п.) Ex. Belgian government officials are discussing the matter with their counterparts in France.

37. upgrade v. upgrading

улучшать/повышать качество увеличение глубины переработки (повышение качества/сортности)

1

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Руководящий работник, руководитель. Petroleum Economics

Unit III

Before you read Match A & B: 1. 2. 3. 4.

A production capacity pipeline capacity refining capacity storage capacity

B мощности хранения нефтеперерабатывающие мощности мощность трубопровода 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 petroleum 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 storage 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 producing 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 nature 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

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5. Once a field is on stream, its production capacity at any given time is the maximum 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 maximum rate called a surge capacity. Fields cannot produce at surge capacity for extended 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 allowance 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 drilling of production wells and installation of production equipment. 1

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Ржавый. Petroleum Economics

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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 number of processes, each designed to either break down or rearrange hydrocarbon molecules. 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 product stream, the refiner also can add capacity by wide-ning or eliminating the constriction. 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 products, 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. Refineries 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 compare their ratios of distillation capacity to upgrading capacity. 12. Deciding what types of processes to install in a refinery, or how to modify existing processes, is complex. Planners have to predict demand patterns for the various petroleum products and decide how to match refining processes to their market projections. The ability to invest at all depends on current and expected refining profitability, which is a function of crude costs, product prices, and operating expenses. 1

Тарелка. Ректификационная колонна. 3 Мазут. 2

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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 petroleum economics? 7. What is debottlenecking? 8. How is the relative refining productivity of plants, countries, or regions measured? 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 diameters, the _________ of pumping equipment installed, the _________ to flow (or viscosity) of the petroleum itself, and the __________ of efforts to reduce friction between 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 projections. 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

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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 equivalents. 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 b) 1. ultimate c) 1.extent d) 1. estimate e) 1. constraint f) 1. flow g) 1. rate h) deplete i) 1. maintain j) 1. sustainable k) 1. imply l) 1. volatile m) 1. counterpart

2. produce 2. final 2. part 2. calculation 2. limitation 2. stream 2. pace 2. shrink 2. use 2. renewable 2. suggest 2. average 2. opposite number

3. treat 3. limited 3. degree 3. guess 3. law 3. river 3. speed 3. surge 3. care 3. suitable 3. mean 3. regular 3. colleague

Petroleum Economics

4. refine 4. last 4. amount 4. truth 4. restriction 4. series 4. method 4. reduce 4. look after 4. viable 4. know 4. standard 4. producer 55

Unit III

Ex. 9 Match A & B A Shrink Counterpart Handle rate imply

average

investment

flow

downtime

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

Ex. 10 Match A & B A Ultimate consumer Ultimate price Ultimate load Ultimate output Ultimate result Ultimate accuracy Ultimate reserves Ultimate authority Ultimate cause Ultimate gas recovery Ultimate holding company Ultimate life 56

B Предельный срок службы Последняя инстанция Конечный потребитель Максимальная мощность Первопричина Суммарная газоотдача Головная холдинговая компания Предельная нагрузка Предельная точность Окончательный результат Промышленные запасы (нефти или газа) Предельная цена Petroleum Economics

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Ex. 11 Translate into Russian, paying attention to variants of translation of «ultimate»: 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 barrels (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 formation Cost of oil field development Earnings Estimate of petroleum reserves Family Population growth Derrick height Gas-cap height

2. 3. 4.

5. 6. 7. 8. 1

9. 10. 11. 12. 13. 14.

Household Income per capita Gas pipe length Gas price level Life of a well Drilling rig service life Reservoir life

15. 16. Man 17. Number of well producing months 18. Person

19. 20. 21. 22. 23. 24. 25. 26. 27.

Price Production rate Employment rate Well depth Drilling speed Logging speed Pipeline laying speed Above Below

Личное материальное имущество. Petroleum Economics

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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 statistics 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 underground rock. 3. Refining is a complex function that takes the generally big moleсules, constituting 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 creative thinking, being sensitive to new issues and having powerful potential for innovation, 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

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8. The processing of crude into various refined products, together with the marketing 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 ambitious target of raising oil production to 3,0m b/d by 2012. The company is now targeting 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 government 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 2

Пик добычи нефти. Обособленное причастие. Petroleum Economics

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For example: The contract between the parties is drawn up in the Russian and English languages, 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 ethanol become more competitive in the overall energy mix. 3. The hydropower industry also is gaining ‘steam’, with the Canadian Hydropower 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 development 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 Natio-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 development deal for the offshore Nursultan block. KMG as majority owner will hold a 51 % 60

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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 increasingly 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 economic 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 maintenance that had been delayed because of the stresses placed on the industry by Hurricanes 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

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20. Investment in capital-intensive industries does not directly track changes in profits or prices. Analysis of historical data shows that annual investments in refinery 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. Given 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 origin. 25. It is necessary to make allowance for the time required by the sound to ascend 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 volatility. Yet, although gasoline price volatility has been generally trending up, current volatility 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) until 2005. 29. The profits the companies earned from their domestic and foreign refining operations are roughly comparable. On average between 1977 and 2005, the companies 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. Страховая премия (сумма, выплачиваемая ежегодно или ежемесячно владельцем полиса страховой компании за покрытие убытков в случае наступления страхового случая. 2

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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 principally used to meet seasonal load variations. Gas is injected into storage during periods 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 nondiscriminatory 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 pro1

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

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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 обеспечить существование ценовой конкуренции на рынке и устранение рыночной власти отдельных фирм). 3 Рыночный подход (подход к оценке предприятия, пакета акций, актива и т.п., при котором стоимость оцениваемого объекта определяется путем сравнения данного объекта с аналогичными объектами, цена которых известна). 64

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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 openaccess basis means offering off-stream capacities for leasing to third parties.

True False 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 магистрального 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 России. Нефть и нефтепродукты занимают сегодня одно из ведущих мест в структуре мировой экономики. Реализация проекта Балтийской трубопроводной системы позволяет получить экономически эффективный экспортный маршрут для доставки нефти из Тимано-Печерского, Западно-Сибирского и УралоПоволжского месторождений до главного центра нефтепереработки и нефтеторговли в Европе – Роттердама. Туда ежегодно доставляется свыше 300 млн. тонн грузов, 120 млн. из которых приходится на нефть и нефте-

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продукты. Технико-экономическое обоснование проекта, проведенное немецкими, американскими и российскими специалистами, показало, что транспортировка нефти до Роттердама через Приморск является наиболее выгодной по сравнению с маршрутами через Вентспилс, Бутинге, Муугу и Порвоо. Например, 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 использованием 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 ликвидировать узкие места и существующий дефицит мощностей в транспортировке нефти. Предполагается, что доля нефтепродуктов в общем объеме морских перевозок на Балтике составит 41 процент. При реализации проекта компания «Транснефть» применила лучшие мировые достижения и современное оборудование в области строительства трубопроводного транспорта для нефти. Балтийские трубопроводные системы – проект, отвечающий всем международным требованиям по технической и экологической 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 article 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 summary, 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

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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 include: 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 presented 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 author’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 capitalization 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 harnessing new sources of energy (moving from water to coal power, for example), the development of the factory system, and the human population explosion, they say, led directly to the current problems with waste disposal, air and water pollution, overcrowding, 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 environmentalism, the whales. 1

Пессимизм. Petroleum Economics

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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. Regular 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 cachalot). 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 always 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 extinct long ago. (to be continued) from The Freeman, August 1992

1 2

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Китовый ус. Хлыст для экипажа. Petroleum Economics

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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 E.g inventory Medium Gravity Reason Premium Determinant Marker Urban

B Cписок, реестр Плотность Городской Маркерный сорт нефти Среда Причина Определитель Повышенного качества

C Инвентарь

Words to Text A Рosted price

Hold true (for) v.

Pattern n.

(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. 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. 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

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Gravity n. Syn. density API (American Petroleum Institute) API gravity Apply to v.

Grade n. Regular grade Midgrade Premium grade Low end

High end

By far

Sour oil Sweet oil

Range (from… to; between) v.

Range n

Плотность Американский институт нефти плотность (нефтепродукта) в градусах Американского нефтяного института Касаться чего-либо, относиться к чему-либо Ex. The offer only applies to flights from London and Manchester. Сорт, качество Ex. The best grades of tea are expensive. Стандартное качество Среднее качество Высшее качество Недорогой Ex. A low end product is one of the cheapest in the range of products made by a company. Высококачественный Ex. The company blamed the loss on higher costs and lower sales of high end products. 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’) Высокосернистая нефть 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. Колебаться в пределах Ex. The population of theses cities ranges between 3 and 5 million people. Предел, размах, амплитуда; диапазон 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

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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°; Basrah 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, highvalue 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 other 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

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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 благосостояние; 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 Pattern Low end Range Premium Apply to

B Affect, refer to Of very high quality Structure The highest and lowest prices reached by a market within a certain period of time 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.

~ assets ~ profit ~ n.

72

Нетто, чистый Ex. Indonesia withdrew its membership in OPEC in 2008 after it became a net importer of oil. Чистые активы Чистая прибыль 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. Petroleum Economics

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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» эталонная (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 Intermediate (WTI)

Западно-техасская средняя, Базовый сорт 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

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10. Аdjust v. Аdjustment for smth. n. ~ for inflation Аdjusted adj. 11. Haul v. to haul freight

Корректировать, согласовывать, приводить в соответствие Ex. We adjusted our watches to local time. Поправка на что-либо Поправка на инфляцию Ex. Once we make the adjustments for inflation, the fall in interest rates is quite small. Согласованный Везти, перевозить; транспортировать; заниматься коммерческими перевозками 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. Маржинальные поставки 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.

~ supply ~ well

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, we cannot guarantee continuous employment.

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16. Сontinuity n. ~ Оf supply

~ Оf employment

Бесперебойность, непрерывность Ex. We should ensure continuity of care between hospital and home. 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. 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 Ex. A CIF sale contract requires the seller to obtain insurance cover for the voyage. На условиях сиф сиф Манчестер, на условиях сиф Манчестер.

On CIF terms CIF Manchester

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; франковагон Цена FOB (цена, включающая собственно стоимость товара, а также транспортные и страховые расходы, понесенные продавцом вплоть до завершения 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.

Free on board price

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Types of prices Part II 1. Except for the most specialized ones, market information services do not attempt to report prices for every type of crude traded. Instead, they cover crudes considered 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 purchased cargo by cargo. They are distinguished from term prices, which are determined 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 representative 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» prices 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 transportation, 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 example, 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 comprehensible 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.

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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 непрерывности поставок переработчики закупали сырье на срок; связать себя обязательствами 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 Benchmark Net Vommitment Spot price Haulage Adjustment Shortfall Quotation Margin Continuous

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

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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 market. 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

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Ex. 7 Match A & B 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 % Decontaminate drinking water sources

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 competitors. 3. The capacities of transportation and storage functions are easier to visualize than those of production. Petroleum Economics

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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 comparable to those that followed the 1973 and 1979 energy crises or a potentially worse situation 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 доставке 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 истощаемости запасов нефти отличаются от прогнозов сторонников теории Пика добычи нефти. 7. Зарплата сотрудников северного филиала нашего предприятия выше зарплаты сотрудников московского отделения. 8. Запасы природной нефти превышают нетрадиционные (unconventional) запасы нефти. 9. Отличительной чертой газопроводов является то, что их диаметр намного больше диаметра нефтепроводов. 10. Размер капиталовложений в строительство газопровода пропорционален.

1

80

Резкий скачок цен.

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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 economy. 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 spying activities. 7. Fast food is certainly a growth market with some of the main names developing 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 instead 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 profitable. 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 investments: 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

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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

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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 HewlettPackard 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 2

Mile. West-south-west. Petroleum Economics

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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 longrun, 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

84

Жесткие цены.

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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 midOctober. 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

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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 sentences 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. Война Судного дня. 3 Вызывать перенасыщение рынка. 4 Наследие. 2

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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 примесей) 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 Великобритании Brent, в Норвегии Statfjord, в Ираке Kirkuk, в США Light Sweet и WTI. Часто бывает, что страна производит два сорта нефти лѐгкую и тяжѐлую. Например в Иране это Iran Light и Iran Heavy. 1

Grades of quality. Petroleum Economics

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Ex. 17 Do you know any magic numbers? Read about the magic number for oil and translate it into Russian in writing: 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 2

88

Несут все издержки. Уровень безубыточности.

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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 резкому 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. Новые дома строятся с улучшенной теплоизоляцией, так что на их обогрев тратится 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 увеличивается за счет увеличения количества автомобилей и им подобной техники. Относительно недавно в число крупнейших мировых потребителей нефти вошли Китай и Индия. В XX веке рост спроса на нефть уравновешивался нахождением новых месторождений, позволявшим увеличить и добычу нефти. Однако 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 кризис 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 «наPetroleum Economics

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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 время 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 несколько 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 годов. 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 середине 2000 года цены достигли $30 за баррель. С конца 2003 до 2005 год включительно произошѐл новый резкий скачок цен, в мае 2008 г. была достигнута цена $135, и удерживается на уровне выше $100. Некоторые считают причиной этого скачка цен предполагаемое вторжение США в Иран. По мнению других, он знаменует начало давно ожидаемого нефтяного кризиса, когда истощающимся месторождениям всѐ труднее удовлетворить растущий спрос на нефть. Большинство аналитиков считают, что эта цена будет снижена. Одни называют цифру 40, другие 75 долларов за баррель. Цена нефти в феврале 2008-го уже превышала психологически важную отметку в 100 долларов за барель, в марте высокие темпы роста цен продолжились(110$). Максимальная цена нефти сорта WTI (Light Sweet) была достигнута 11 июля 2008 года, превысив $147 за баррель. В октябре 2008 цена на нефть опустилась ниже 67 долларов за баррель в результате глобального экономического кризиса и достигла своего 12-месячного минимума. Следует отметить, что рост мировых цен на нефть всегда разгоняет долларовую 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 decline 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

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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 distilled 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 efficient 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 Andrews, 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 invested in its processing. Backed by investors, he set up a network of kerosene distilleries 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 produced 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 fashions, and as automobiles supplanted horse-drawn carriages, demand for whalebone buggy whips and wagon suspensions collapsed. A few American whalers stayed in bu1

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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 endeavor, such as whaling, can outlaw any enterprise. The unpredictability and capriciousness 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 potential 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 better 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 necessary 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 anticipate the indirect or unintended favorable consequences of technological innovation. 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. 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. 2

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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 Union. 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 margarine. 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 number; 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 courtimposed dissolution of Standard Oil3 and the «independents.» These were companies that had been «independent» of Standard Oil. They had no experience working together, 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. 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 multinational 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 billionaire and eventually the richest man in history. 2

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The National Petroleum War Service Committee, which oversaw this effort, was initially formed under the U.S. Chamber of Commerce and subsequently as a quasigovernmental1 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 statistics. 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 coupling3. 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 covering all segments of the oil and gas industry to promote the use of safe, interchangeable equipment and proven and sound engineering practices. The third major area of activity was taxation. Initially the efforts included working with the Treasury Department and congressional committees to develop an orderly, 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. Резьба. 3 Муфта обсадной трубы. 2

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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 largest national trade associations, and the only one that represents all aspects of America’s oil and natural gas industry. [This short history of API is based on The Story of the American Petroleum Institute, by Leonard M. Fanning, 1959, and The American Petroleum Institute: An Informal 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 - маркерные сорта. Инвестор: Сейчас все и всюду говорят цены на нефть достигли 80 долларов за баррель. Как цена формируется? Насколько мне известно, при этом оценивается 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 нефтедобывающая страна поставляет на мировой рынок несколько сортов нефти. Химический состав нефти отличается от скважины к скважине и чтобы упростить экспорт 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, отличающихся 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

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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 говорим 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 организовать 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 месторождениях 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 Exchange. 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 Западную 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 договариваются, что нефть будет поставляться по цене на четыре доллара дешевле, чем стоит Brent. В дальнейшем смотрят на биржевые котировки и путем вычитания согласованной разницы получают цену исполнения контракта. Инвестор: Brent самая хорошая нефть? 1 2

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Аналитик: Нет, но одна из лучших. Urals хуже, чем Brent, он более сернистый, вязкий, из него получается меньше бензина. В России есть месторождения 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 смешивалась. Конечно, перевозка в цистернах очень дорога, но за счѐт того, что эта нефть продается дороже, чем Brent, такой способ транспортировки оправдан.

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WORD INDEX 1. Account for v. 2 2. Allowance 3 3. API (American Petroleum Institute) 4 4. API gravity 4 5. Apply to 4 6. Average 3 7. Avoid v. 2 8. B/D [barrels per day] 1 9. Barrel 1 10. Bbl [barrels] 1 11. Be off stream 3 12. Be on stream 3 13. Benefit 1 14. Bottleneck 3 15. Brand n. 2 16. Bring forth1 17. Bring/put a field on stream 3 18. Bulk 2 19. By far 4 20. Capacity 2 21. Cash flow 3 22. Compete 1 23. Competition 1 24. Competitor 1 25. Constraint 3 26. Constrict 3 27. Constriction 3 28. Consume 1 29. Consumer 1 30. Consumption 1 31. Contaminant 1 32. Contaminate 1 33. Contractor 1 34. Convey1 35. Conveyance 1 36. Cooking 3 37. cCost 1 38. Counterpart 3 39. Crucial 1 40. Crude 1 41. Crude oil 1 42. Debottlenecking 3 43. Density 4 98

44. Deplete 3 45. Depletion 3 46. Development 1 47. Disparity 1 48. Do smb. good 1 49. Do smb. harm 1 50. Downstream 1 51. Downtime 3. 52. Drill 1 53. Driller 1 54. Drilling 55. Drilling crew 1 56. E&D (exploration and development) 1 57. Enhance 1 58. Enhancement 1 59. Estimate 3 60. Exploration 1 61. Explore for oil 1 62. Extent 3 63. Extract 1 64. Facility 1 65. Feasibility study 1 66. Feasible 1 67. Feedstock 1 68. Finished product 2 69. Flow 3 70. Fluid 1 71. Fuel oil 1 72. Gasoline 1 73. Grade 4 74. Gravity 4. 75. Handle 3 76. Have to do with 3 77. Heating oil 1 78. High end 4 79. Imply w 80. Independent company 1 81. Integrated company 1 82. Intermediate product 2 83. Inventory 2 84. Invest 3 85. Investment 3 86. Involve 1

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87. Lay a pipeline 2 88. Lease 2 89. Liquefy 2 90. Liquid n. 2 91. LNG (liquefied natural gas) 2 92. Logistics n. 2 93. Low end 4 94. Lubricating oil 1 95. Main 2 96. Maintain 3 97. Maintenance 3 98. Make allowances for 3 99. Make investments in 3 100. Marine terminal 2 101. Midgrade 4 102. Natural flow 3 103. Oil-bearing 1 104. On behalf 2 105. Operation 1 106. Operator 1 107. Outlet 2 108. Ownership 1 109. Petrol 1 110. Petroleum 1 111. Petroleum products 1 112. Pipeline 1 113. Posted price 4 114. Premium grade 4 115. Primary 2 116. Process 1 117. Processing 1 118. Produce 1 119. Production 1 120. Prospect 1 121. Prospecting 1 122. Purchase 2 123. Purchase v. 2 124. Range 4. 125. Rate 3 126. Raw material 1 127. Recover investments 3 128. Refine 1

129. Refinery 1 130. Refining 1 131. Regular grade 4 132. Retail 2 133. Retailer 2 134. Revenue 1 135. Rock 1 136. Salt dome 2 137. Secondary 2 138. Seismic section 1 139. Shrink (shrank shrunk) 3 140. Sophisticated 1 141. Sort out 4 142. Sour oil 4 143. Storage facility 1 144. Stream day 3 145. Stuff 1 146. Sulphur 1 147. Supply 1 148. Surge 3 149. Sustainable 3 150. Sustained 3 151. Sweet oil 4 152. Take over 1 153. Tank 2 154. Tank truck 1 155. Tend 1 156. Tertiary 2 157. Hold true (for) 4 158. Transaction 1 159. Truck 2 160. Trunk pipeline 2 161. Ultimate 3 162. Ultimate capacity 3 163. Upstream 1 164. value 1 165. Volatile 3 166. Volatility 3 167. Well 1 168. Wellhead 2 169. Wholesale 2

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Учебное пособие

Е.Ю. Симакова

«PETROLEUM ECONOMICS (ЭКОНОМИКА НЕФТЕГАЗОВОЙ ОТРАСЛИ)»

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Petroleum Economics