Болсуновская Л.М., Абрамова Р.Н., Матвеенко И.А. (ред.) Petroleum engineering. Teachers book. Нефтегазовое дело. Книга для учителя
Подождите немного. Документ загружается.
211
Exercise 14. Quick reading.
Before discussion and text reading it is recommended to look through the
Words and expressions.
You may need some terms to grasp the main ideas of the text.
E&P spending (spending on exploration and production) – затраты на
поиск и добычу
to overspend – потратить больше, чем было запланировано
a survey – опрос, обследование, обзор
growth rate – темп роста
Questions
1. What is the main tendency of global exploration and production
spending? – After “extremely strong growths” of 20 % in 2005 and
30 % in 2006, global exploration and production spending is expected
to rise slower: rate of 9 % to $300 billion in 2007.
2. Will growth rate be quicker or slower in 2007 as compared to that one
in 2005 and 2006? – Slower.
3. Who made E&P Spending Survey? – analysts at Lehman Bros. Inc.,
New York.
4. Does Canada keep to this growth tendency? – Canadian spending will
be down 8 % next year however, compared with a 19 % increase in
2006.
5. What companies will have the largest spending growth? – National oil
companies will lead the 2007 increase in international spending with
the largest spending growth among the Russian companies.
6. What companies showed insignificant change in E&P spending? –
Anadarko, Cabot Oil&Gas Marathon Oil Corp., Newfield Exploration
Co., and Plains Exploration & Production Co.
7. Why will US E&P expenditures slow down in 2007? – The surveyed
companies plan a substantial slowdown in the growth rate of their US
E&P expenditures in 2007 due to concerns about cash flow and
perception of lower gas prices.
8. What is the expected oil price range? – Over half view the longterm
real price, of oil at $ 50–70/bbl, with half expecting the price to be
$ 50–70/bbl for the long term and half expecting crude to be
$ 60–70/bbl.
212
Exercise 15. Talking Point.
Imagine that you are an oil and gas analyst. Prepare a short report on the
problems and perspectives in oil and gas industry development.
It is recommended to give this exercise for the home task. Ask Ss to
choose any oil company and make presentation on problems and
perspectives of its development.
Exercise 16.
Listening.
A. Discuss the following with your partner
An embargo happens when a country stops trading with another. In
1973, there was an embargo on oil. What effects do you think this had
on the world’s economies?
B. Listen and complete the notes
1. After …………, industrial nations enjoyed economic growth.
2. They used huge amounts of ………….
3. A lot of oil came from countries in the ………….
4. The embargo began on the …………, 1973.
5. Prices of oil rose to …………times higher than before.
6. The New York Stock Exchange lost …………dollars in a few
weeks.
7. The embargo ended in ………….
Tapescript
One of the most dramatic supply shocks in the history of economics was
the 1973 Oil crisis. After the end of the Second World War the world's
industrial nations enjoyed steady economic growth. This growth was
possible through using huge amounts
of energy, and in particular the use
of oil. Much of this oil came from poorer countries, such as the Arab na-
tions of the Middle East.
On 17th October, 1973 the Arab nations stopped supplying oil to the
West. This was because of the West's support for Israel in the Arab-Israeli
war that was happening at this time. At the same time, the Arab nations
raised the price of the oil they sold to the rest of the world. Within a few
213
months, the price was four times higher than it had been before the crisis
began.
The shortage of oil in many western countries, especially the USA, had a
huge effect on the economy. Within a few weeks, the New York Stock
Exchange had lost 597 billion. People were queuing up for petrol at petrol
stations. A recession began and unemployment and inflation both grew.
The embargo lasted until March 1974, less than a year, but its effects on
the world economy lasted until the middle of the 1980s.
Answers:
1. World War 2
2. Energy/oil
3. Middle East
4. 17
th
October
5. four
6. 97 billion
7. March 1974
Exercise 17. Discuss.
Before doing this exercise study the key words which are given below.
1. What well-know foreign oil and gas companies have you heard of?
Can you give any names? What countries were they set up? What
countries do they operate in?
2. What Russian oil and gas companies do you know? What regions of
the country do they operate in? What are their main activities? Do you
know any facts from their history?
Key words: global energy provider, listed company, shareholder,
petroleum refining, drill bit, down hole tool, joint venture, lubricant, cost-
cutting program, licence, stake, proven reserves.
Exercise 18. Read the text.
It is recommended to read not the whole text at once, but separate
abstracts concerning definite companies. Study Words and expressions
before reading.
214
Exercise 19. Answer the following questions.
1. What spheres does Total operate in? – Total’s operations span the
entire oil and gas chain, from exploration, development and production
to midstream gas, refining and marketing, and crude oil and petroleum
product trading and shipping. Total is also a world-class chemicals
producer, as well as having interests in coal mines, cogeneration and
power generation.
2. Does Total operate only in France? – Operations in more than 130
countries.
3. When was Total created? – in December 31, 2005.
4. What does the abbreviation S.A. (Total S.A.) stand for? – Total S.A. is
a French société anonyme (limited company) created in March 1924.
5. When was Halliburton established? – it was established in 1919.
6. In what way did Halliburton expand? – Halliburton has expanded
through internal growth and acquisition.
7. How many countries does Halliburton operate in? – in over 120
countries.
8. What are the key goals of the company? –
• Technological Leadership
• Operational Excellence
• Innovative Business Relationships
• Dynamic Workforce
9. Can we say that British Petroleum operates worldwide? – The BP
group operates across six continents, and our products and services are
available in more than 100 countries.
10. Does BP form joint ventures in many countries? (Give some
examples). – Yes. In Africa, China, Russia, Canada, Brazil.
11. Where are BP’s corporate headquarters located? – London is where
BP’s corporate headquarters are located.
12. What is TNK-BP? What does the abbreviation TNK stand for? – In
Russia we have an important joint venture through our 50 per cent
ownership of TNK-BP, a major oil company with the majority of its
assets in Russia. Tjumenskaya Neftenaja Compania.
13. What are the major activities of BP? – exploration and production,
pipeline, refining, selling lubricants and other oil products, chemical
plants.
14. How was Rosneft established? – Rosneft was one of the last vertically
integrated oil companies to emerge from the reorganization and large-
scale privatization of Russia’s oil industry in the years following the
dissolution of the Soviet Union.
215
15. Was Rosneft a successful company from the start? – Rosneft endured a
series of rapid management changes that undermined the practical
control which successive Moscow-based executives were able to exert
over the Company’s assets. This undermined the coordination between
Rosneft’s various businesses and, thus, did significant harm to the
Company’s overall operational performance with production declining
and the limited utilization of refining capacity throughout the period.
16. Do you consider Rosneft’s growth and expansion very impressive? –
By 2000, Rosneft was again realizing profits. That year also marked
the start of a new period of growth, with average oil production
increases in excess of 11 % annually.
17. How many subsidiaries does Rosneft have? – Rosneft completed the
consolidation of 12 of the Company’s upstream and downstream
subsidiaries.
18. What are the main activities of LUKOIL? – Main activities of the
Company are exploration and production of oil & gas, production of
petroleum products and petrochemicals, and marketing of these
outputs.
19. What were the companies that founded LUKOIL? – The company was
founded by three West-Siberian oil and gas plants:
“Langepasneftegas”, “Urayneftegas” and “Kogalimneftegas”.
20. Does LUKOIL carry out international projects? – LUKOIL is carrying
out international exploration and production projects in Kazakhstan,
Egypt, Azerbaijan, Uzbekistan, Saudi Arabia, Iran, Columbia,
Venezuela and Iraq.
21. What is the total capacity of LUKOIL facilities in Russia and abroad?
– Total capacity of LUKOIL facilities in Russia is 41.8 mln tons of oil
per year. LUKOIL also has refineries in Ukraine, Bulgaria, and
Romania, with total capacity of 16.7 mln tons per year.
Exercise 20. Complete the sentences.
1. Rosneft emerged as a result of reorganization and large-scale
privatization of Russia’s oil industry.
2. Bad management coordination did significant harm to the Company’s
overall operational performance.
3. New acquisitions and international operations made Rosneft second
largest oil producer.
4. Easten Siberia is viewed as one of Russia’s most significant new oil
and gas production bases.
5. LUKOIL main resource base is in Western Siberia.
216
6. LUKOIL sells its products in 17 countries of the world.
7. LUKOIL has refineries both in Russia and abroad.
8. BP products and services can be found in more than 100 countries.
9. London is the center for BP’s trading, legal, finance and other
mainstream business functions.
10. BP forms a lot of joint ventures in the countries where they operate.
11. The major part of Total’s investors are from France.
12. Halliburton provides services in the energy services and engineering
and construction (E&C) industries.
Exercise 21. There are some abbreviations in the abstracts, given above.
Match each abbreviation with its full version. Then, translate it into
Russian, if possible and try to explain what it means.
1. OJSC
a) Open Joint Stock Company
2. PSA
b) Production Sharing Agreement
3. LLC
c) Limited Liability Company
4. IPO
d) Initial Public Offering
5. bcf
e) billion cubic feet
6. LNG
g) Liquefied Natural Gas
7. DJ
h) Dow Jones
Exercise 22.
Listening.
A. Discuss the following with your partner.
Russia is the second largest oil producer in the world. It also produces
huge amounts of natural gas. How many other oil producing nations
can you name?
B. Listen to someone talking about Russia’s oil and gas industry.
Complete the notes with the correct number.
Russia’s gas reserves: (1)………… cubic meters.
Russia’s gas output: (2)……… cubic meters per day.
Russia’s oil reserves: (3) ………barrels.
Russia’s oil output: (4)…………barrels per day.
Proportion of European oil and gas bought from Russia: (5)…………
Proposed pipeline to connect Russia with China and South Korea:
Length of pipeline: (6)………… km.
Cost of proposed pipeline: (7)…………$.
217
Tapescript
Russia's reserves of Oil and gas are still not known for sure, but they are
certainly enormous. There are probably 50 trillion cubic metres of gas
hidden under Russian soil, and 600 million cubic metres of gas is piped
out to the world everyday. Along with that, 75 billion barrels of oil are
held in reserve and every day 10 million barrels of oil flow through
Russia's pipelines. But where does it all go? At the moment, most of it
goes west. About a quarter of the oil and gas that Europe consumes comes
from Russia. However, Russia is now beginning to look to customers in
the East. For years, Asian countries have relied on supplies of oil from the
Middle East. Now they are looking for alternatives. Russia is stepping in.
A new pipeline to transfer Russian oil to China and South Korea Is
planned. The pipeline will be some 4.100 km long and will cost about
$6.5 billion to build. However, it will strengthen Russia's position as
energy supplier to the world.
Answers:
1. 50 trillion;
2. 600 million;
3. 75 billion;
4. 10 million;
5. a quarter;
6. 4.100;
7. 6.5 billion.
Exercise 23. Talking point.
a) Imagine that you are a PR representative of one of the oil companies.
You are asked to make a press release about main activities and
historical background of your company.
b) Pair work. You were invited for a job interview. You are an applicant
and talk to an interviewer of an oil company. Find out as much
information as possible.
218
UNIT 5
TAXATION AND AUDIT
Lead-in. T. elicits the ideas from the students as they suggest things
connected with Taxation and Audit, make collective mind map on the board
as the ideas are suggested, so that they can see how T. draws out the aspects
of the topic.
This activity will prepare Ss to work with the topic of the Unit 5.
Discuss.
1. What does the word “tax” mean? – To tax (from the Latin taxo; "I
estimate", which in turn is from tangō; "I touch") is to impose a
financial charge or other levy upon a taxpayer (an individual or legal
entity) by a state or the functional equivalent of a state such that failure
to pay is punishable by law.
What kind of taxes do you know? There are different types of taxes,
for example: Sales taxes are levied when a commodity is sold to its
final consumer. A capital gains tax is the tax levied on the profit
released upon the sale of a capital asset. In many cases, the amount of a
capital gain is treated as income and subject to the marginal rate of
income tax. Corporate tax refers to a direct tax levied by various
jurisdictions on the profits made by companies or associations and
often includes capital gains of a company. An income tax is a tax
levied on the financial income of persons, corporations, or other legal
entities.
Where do taxes taken by governments go to? – Taxes go to the
Bursary.
2. Do you think all people should pay equal taxes? Ss offer they own
answers.
How much is income tax in Russia now? The income tax in Russia is
13 % now.
In your opinion, is it fair when oil and gas companies pay taxes on the
usage of natural resources? Ss offer they own answers.
219
Exercise 1. Read the text and do the exercises.
While reading help Ss with difficult extracts, explain and translate some
words if necessary. Ask different Ss to read and translate.
Exercise 2. Think over and answer the questions.
1. Types of taxes are direct or indirect.
2. “Налоги – платежи, взимаемые государством с предприятий и
организаций, населения. Являются одной из форм финансовых
отношений, обеспечивающих распределение и перераспределение
национального дохода в соответствии с задачами экономического
и социального развития”.
“Taxes are payments, levied by the state from enterprises and
organization, population. Taxes are one of the financial relation form,
providing distribution and redistribution of national income according
to economical and social development aims”.
Exercise 3. Determine whether the statements are true or false.
1. F – There are problems with the classification and it is not very useful.
2. F – Thus the incidence, or loss, of an indirect tax is normally shared by
three groups, manufacturer, retailers and wholesalers and final
purchaser.
3. T
4. F – The consensus used to be that an individual tax or the whole
system was equitable if it contained a strong element of progression,
that is the higher income groups paid a larger percentage of their
income in tax than the lower income groups.
5. F – Another principle that is important is that taxes should not distort
the economy to any serious extent unless that is the deliberate intention
as demerit goods are taxed.
6. F – One important application of the principle of non-distortion is that
taxation should not adversely affect the willingness of people to work.
Exercise 4. Talking Point.
T. can offer Ss to pick up one type of tax per person and make up a short
presentation.
220
Exercise 5. Read the article.
While reading, help Ss with difficult extracts explaining and translating
some words, if necessary. Ask different Ss to read and translate.
Exercise 6. Answer the questions.
1. Who is likely to be interested in this information? – Companies,
planning to cooperate with Kazakhstan.
2. Are alterations in tax regime favorable for foreign oil and gas
companies? – No, it is not (The most fundamental change introduced
by the recent amendments is the creation of a completely new tax
which applies to exports of crude oil. The tax will apply to taxpayers
who export crude oil, apart from those who are parties to PSAs.)
3. Is everything clear and well thought over in the new oil tax regime? –
No, it is not. (The new rules provide that the Government may publish
separately, rates for solid minerals, but is completely silent on how the
base for dry gas will be calculated. Presumably, one should apply the
conversion factor specified for associated gas and then apply the
sliding scale for oil, but this is not clearly stated anywhere. There is
also considerable uncertainty about how the sliding scale should
actually be applied).
4. Write out the names of taxes which should be paid by “subsurface
users” according to Model I. Are the same taxes paid according to
Model II? What is different? – According to Model 1 taxes are –
Bonuses, Royalties, Excess Profits Tax and Rent Tax on Export of
Crude Oil. According to Model 2 taxes are Rent Tax on Export of
Crude Oil, Excise Tax on Crude Oil (including gas condensate),
Excess Profits Tax, Land Tax and Property Tax. Difference is that the
Model 1 has less tax to be paid.
5. Find those parts of the text where the author says about some
uncertainties in the new tax application. Comment on them. – See
question 3.
6. Find the conclusion the author made on the economic viability of
projects in Kazakhstan. Do you agree with it? – Author considers that
the project, made by Kazakh government is not worked out properly.
(Which transportation costs are not explained, nor is it indicated
whether these are only the costs incurred by the producer or whether
one can take into account the costs of shipping crude to a location
comparable with one where the benchmark crudes are traded).