In this blog you will find the correct answer of the Coursera quiz Oil & Gas Industry Operations and Markets Coursera Week 2 mixsaver always try to brings best blogs and best coupon codes

week- 2

Oil and Gas Markets – Costs


1. What has to be determined at the “casing point”?


  • Whether to complete the well
  • Whether to case the well
  • Whether to log the well

2. Which of the following is a major cost in oil and gas exploration that occurs before the casing point?


  • Lease costs
  • Production casing costs
  • Flow-line hook-up costs
  • Water disposal costs

3. Who bears the drilling and production costs of an oil and gas well?


  • The overriding interest owner
  • The mineral rights owner
  • The driller
  • The working interest owner

4. In addition to a royalty, an overriding royalty may also need to be paid on sales of oil and gas production from a well if what?


  • There is a burden on the lease
  • The state requires it
  • The royalty owner demands a higher royalty
  • It is stipulated in the original mineral lease

5. What is the “payout” point?


  • When the cumulative net profit from a well equals its drilling and completion costs
  • When sales of oil and/or gas from a well produce a net profit
  • When the well starts to produce oil and/or gas that can be sold
  • When drilling and completion costs for a well must be paid

6. The “1” in the 3-2-1 crack spread refers to a barrel of diesel.


  • True
  • False

7. Variation in what leads to significant differences in the price of gasoline from one state to the next?


  • State production of crude oil
  • State taxes
  • State production of refined petroleum products
  • State distribution of costs for petroleum products

8. What is an important component to the cost of natural gas for residential customers but not for operators of natural gas power plants?


  • Taxes
  • Drilling and completion costs
  • Transmission costs
  • Distribution costs


Oil and Gas Markets – Prices


1. Demand for oil changes significantly with the price of oil; e.g., demand falls when the price of oil rises.


  • True
  • False

2. Crude oil prices in the U.S. are particularly sensitive to which of the following?


  • Mudslides
  • Climate change
  • Hurricanes
  • Tornadoes

3. U.S. natural gas prices vary seasonally because…


  • Demand is seasonal
  • Total amount of storage capacity is seasonal
  • Supply is seasonal
  • Temperatures vary seasonally

4. When during the year do gasoline prices in the U.S. tend to be lowest?


  • Fall
  • Summer
  • Winter
  • Spring

5. A decrease in the production of oil from Saudi Arabia has often what?


  • Decreased oil prices
  • Increased oil prices
  • Had no effect on oil prices
  • Spurred increases in oil production elsewhere in the world

6. When futures prices for oil increase with increasing months into the future, the prices are said to be in what?


  • Speculation
  • Inversion
  • Normal backwardation
  • Contango

7. Which is a factor that determines the spot price for a crude oil in the U.S.?


  • Futures prices beyond one month out
  • Its quality relative to West Texas Intermediate crude
  • The world price for benchmark crudes from the Middle East
  • The price for its delivery at Henry Hub

8. Over-the-counter contracts for oil and gas are…


  • Unique futures contracts between buyers and sellers
  • Standard futures contracts marketed by NYMEX and ICE
  • Another term for spot transactions
  • Futures contracts involving the U.S. Federal Government



Oil and Gas Markets – Future of O&G


1. Which of the following is the most important factor governing the market value of an oil/gas exploration company?


  • Its current reserves
  • Its projected acreage holdings
  • Its volume of past production
  • Its most recent revenues

2. The “net pay” of a reservoir differs from it “gross pay” in that the former is…


  • One minus the water saturation in the reservoir
  • The potential amount of revenue from oil/gas sales after cost and taxes
  • The percentage of reservoir volume containing oil/gas
  • The reservoir porosity divided by the formation volume factor

3. For an oil & gas company listed on a U.S. stock exchange, what type of reserves can the company claim as being producible in their financial reports?


  • P2
  • P4
  • P1
  • P3

4. A decrease in the price of oil does what?


  • Decreases total resources
  • Decreases technically recoverable resources
  • Decreases undeveloped reserves
  • Reduces economically recoverable reserves

5. When oil/gas prices are very low, a cost effective way for an exploration and production company to increase its oil/gas reserves may be to what?


  • Merge with another company
  • Increase its exploration for new oil and gas reservoirs
  • Buy oil/gas on the open market
  • Drill more wells into its developed oil and gas reserves

6. A national oil company like Saudi Aramco differs from an international oil company like Chevron in which of the following ways?


  • Its majority owner is the national government
  • It owns the the country’s oil and gas resources
  • It is an integrated oil company
  • It is technically more advanced in exploration and production

7. Shale gas can be considered a form of what?


  • Bitumen
  • Coal-bed methane
  • Gas hydrates
  • Tight gas

8. What region of the world that may contain significant oil and gas resources remains poorly explored?


  • The China Seas
  • Australia
  • West Africa
  • Indonesia



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