EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Lesson 5 Introduction

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Overview

Graphic illustration showing steps of process to get raw products from wells. Described in text below to markets
Figure 1. Overall Energy Commodity Logistics Chart - Natural Gas

This graphic illustrates the various steps in the process of getting crude oil and natural gas from the wells all the way to market. As you can see, there is wellhead aggregation (gathering), the "cleaning" of the raw stream, and production of valuable natural gas liquids (processing or refining), the transportation and storage, and finally, the distribution and retail delivery to the various end-users. As you will see, each step along this "path" will have some costs associated with it and most will represent an opportunity for generating revenue. These will add to the total profit that can be derived from the initial wellhead product.

The description of the graphic is confusing to me. Can we clarify what is going on here? For example, it says "there is a wellhead aggregation (gathering) and I do not see anything about wellhead aggregation, we should be using the same words from graphic to explaination. it also so the "cleaning" of... and I don't see anything about cleaning or raw stream. 

Learning Outcomes

At the successful completion of this lesson, students should be able to:

  • Define the steps in the movement of natural gas from the wellhead to the end-user (“wellhead-to-burnertip” path).
  • Recognize the “value chain” along the path.
  • Understand the general methods of transporting natural gas from well to end-user.
    • Gathering
    • Processing & Natural Gas Liquids (NGLs)
    • Pipeline
    • Storage
    • Distribution/End-Use
  • Become familiar with both the domestic and global markets for LNG.

What is due for this lesson?

This lesson will take us one week to complete. There are a number of required activities in this module. The chart below provides an overview of the activities for this lesson. For assignment details, refer to the location noted.

All assignments will be due Sunday, 11:59 p.m. Eastern Time.

Lesson 7 Requirements
To REad

Natural Gas - From Wellhead to Burner Tip

 American Association of Petroleum Landmen Form 610 - 1989

 
To Watch
  • Mini-lecture: Production and Gathering
  • Mini-lecture: Processing and Natural Gas Liquids
  • Mini-lecture: Transmission Pipelines
  • Mini-lecture: Storage
  • Mini-lecture: End-Users
  • Mini-lectue: LNG
 
To Do
  • Energy Commodities Activity
  • Lesson Quiz
  • Fundamental Factors
 

Questions?

If you have any questions, please post them to our General Course Questions discussion forum (not e-mail), located under Modules in Canvas. The TA and I will check that discussion forum daily to respond. While you are there, feel free to post your own responses if you, too, are able to help out a classmate.