The Indian Institute of Technology (<keyword id="6354859" type="General" weightage="100" keywordseo="iit" source="Orion">IIT</keyword>) Madras researchers have developed a statistical approach that can characterize subsurface rock structure and detect petroleum and hydrocarbon reserves.<br /><br />The method proposed was successful in providing critical information on the rock type distribution and hydrocarbon saturation zones in '<keyword id="13075146" type="General" weightage="80" keywordseo="tipam" source="Orion">Tipam</keyword> formation' located in the Upper Assam basin.<br /><br />According to the official release, the researchers used this approach to analyse data obtained from seismic surveys and well logs from the North Assam region known for its petroleum reserves.<br /><br />They were able to get accurate information on the rock type distribution and the hydrocarbon saturation zones at such depth zones of 2.3 km.<br /><br />This research was led by Professor <keyword id="1847885" type="General" weightage="80" keywordseo="rajesh-r-nair" source="Orion">Rajesh R Nair</keyword>, Faculty, Petroleum Engineering programme, Department of Ocean Engineering, IIT Madras. The paper was co-authored by M Nagendra Babu and Dr Venkatesh Ambati researchers of IIT Madras along with Professor Rajesh R Nair.<br /><br />Characterizing underground rock structures is a challenging task. Seismic survey methods and well-log data are used to understand the structure underneath the earth's surface. In a seismic survey, acoustic vibrations are sent through the ground.<br /><br />As the waves hit various rock layers, they are reflected with different characteristics. The reflected waves are recorded and the underground rock structure is imaged using the reflection data. The well logs contain details of various layers of the earth seen when digging an oil well.<br /><br />Since the discovery of the Digboi oilfield in Upper Assam more than 100 years ago, the Assam-Arakan has come to be characterized as a 'category-I' basin to denote that they have significant amounts of hydrocarbon reserves. Petroleum is found in the pore space of a hydrocarbon-bearing underground rock formations.<br /><br />The identification of petroleum reservoirs in the oil-rich basins of Assam requires a survey of the rock structure of this region and the detection of hydrocarbon saturation zones in them.<br /><br />Elaborating on the need for such research, <keyword id="15929655" type="General" weightage="80" keywordseo="prof-nair" source="Orion">Prof Nair</keyword>, said, "The challenge to imaging underground structures arises from the low resolution of the seismic images and the difficulty in correlating the data from well-log and seismic surveys. Our team at IIT Madras has developed a methodology for predicting the hydrocarbon zones from the complex well log and seismic data."<br /><br />Further, Prof Nair added, "The characterization of subsurface structures for the detection of oil-bearing rocks involves the use of data analytics methods that establish statistical relationships between seismic data and petrophysical data obtained from well logs. These relationships help in estimating the petrophysical properties of the subsurface."<br /><br />The team used their method to detect a hydrocarbon-saturated zone in the sandstone-based reservoir at the Tipam formation in the Upper Assam basin.<br /> <br />The researchers combined different statistical approaches to obtain the subsurface rock structure using data from seismic surveys and well logs.<br /><br />Explaining the technical aspects of the study, Prof Rajesh Nair said, "Seismic inversion is a process that is commonly used to transform the seismic reflection data into a quantitative rock-property description of a reservoir. Our team used a type of seismic inversion, called 'Simultaneous Prestack Seismic Inversion' (SPSI). This analysis provided the spatial distribution of petrophysical properties in the seismic image. Our team then combined this with other data analytics tools such as target correlation coefficient analysis (TCCA), <keyword id="3966127" type="General" weightage="80" keywordseo="poisson" source="Orion">Poisson</keyword> impedance inversion, and Bayesian classification to successfully obtain the underground rock and soil structure of the region."<br /> <br />In the course of this work, the researchers also introduced a notable attribute named 'Poisson impedance' (PI) in their analysis. PI was used to identify the fluid content in the sandstone reservoir. Their findings also proved that 'Poisson impedance' (PI) was more effective in estimating hydrocarbon zone than conventional attributes.<br /><br />Nair added that India's mega offshore bidding process of 26 blocks for producing oil, and gas is presently ongoing and such new technologies for finding new discoveries will boost the oil and gas business enormously. For example on a thumb rule, a 0.07 incremental change in successful new technology will boost the oil and gas business by about 10 per cent.<br /><br /><b>SEE ALSO:</b><br /><br /> <b><a href="https://www.businessinsider.in/business/auto/news/december-auto-sales-could-skid-sequentially-on-production-constraints-purchase-deferrals-due-to-inauspicious-period/articleshow/96617021.cms">December auto sales could skid sequentially on production constraints, purchase deferrals due to ‘inauspicious’ period</a></b><br /><br /> <b><a href="https://www.businessinsider.in/business/news/gautam-adani-man-of-the-year/articleshow/96610248.cms">Gautam Adani: Man of the year</a></b><br /><br /> <b><a href="https://www.businessinsider.in/stock-market/news/fpis-return-to-indian-equities-in-the-second-half-of-2022-but-bond-flows-are-still-in-the-red/articleshow/96563652.cms">FPIs return to Indian equities in the second half of 2022, but bond flows are still in the red</a></b><br />

IIT Madras researchers devise method to detect petroleum

<ul><li>The ratings agency had earlier estimated a decline of 11-13 per cent, but revised the forecast considering the Covid-19 demand-supply disruptions, looming income uncertainties and increased cost of ownership of BS-VI vehicles.</li><li>Accordingly, ICRA expects two-wheeler OEMs to brace for another year of lower earnings and decline in average operating margins by 150-200 bps to 11.5-12 per cent. </li><li>Nonetheless, the price escalation and the depreciating rupee, coupled with continuous cost rationalisation initiatives, would provide some support, it said. <br /></li></ul><br /><br />Two-wheeler industry unit sales are now likely to decline between 16 and 18 per cent to around 17 million units in FY2021 on the back of the overall macro-economic scenario, <keyword id="879462" type="ORGANIZATION" weightage="20" keywordseo="ICRA-Ratings">ICRA Ratings</keyword> said on Thursday.<br /><br />The ratings agency had earlier estimated a decline of 11-13 per cent, but revised the forecast considering the Covid-19 demand-supply disruptions, looming income uncertainties and increased cost of ownership of BS-VI vehicles.<br /><br />Accordingly, ICRA expects two-wheeler OEMs to brace for another year of lower earnings and decline in average operating margins by 150-200 bps to 11.5-12 per cent. <br /><br />Nonetheless, the price escalation and the depreciating rupee, coupled with continuous cost rationalisation initiatives, would provide some support, it said. <br /><br />"The aggregate capacity utilisation levels for the industry sample is expected to decline to 55-60 per cent from around 70 per cent. However, despite moderation, the 2W OEMs will continue to have strong credit profiles characterised by healthy 'ROCE' (average ranging between 18-20 per cent) and comfortable balance sheets with negligible debt and strong cash and liquid investments," the ratings agency said in a statement. <br /><br />"While any major expansion plans are expected to be deferred till the demand recovers sufficiently, it is expected that OEMs will continue investing in new product development and network expansion."<br /><br />According to the ratings agency, fiscal 2021 started on a sombre note as the <keyword id="43587" type="ORGANIZATION" weightage="20" keywordseo="pandemic">pandemic</keyword> outbreak caused unprecedented disruptions to both supply and demand. <br /><br />"While the operations resumed in May 2020, the unabated rise in Covid-19 infections in unlock phase have resulted in localised re-imposition of lockdowns in several states," the statement said. <br /><br />"This has interrupted the pace of overall economic recovery and has led ICRA to revise its forecast for GDP contraction in FY2021 to 9.5 per cent YoY from 5 per cent estimated earlier."<br /><br />Notwithstanding the overall muted macro-economic sentiments, the agency said that on the positive side, the rural economy offers some growth off-shoots in the form of healthy rabi output and lower Covid-19 impact. <br /><br />"Higher farm income has led to sequential pick-up in 2W demand in June and July 2020. After a timely onset, monsoon progress remains healthy across most regions," the statement said.<br /><br />"Benefiting from favourable moisture conditions and seasonally high reservoir levels, kharif sowing has been progressing well (up 19 per cent till July 24, 2020). These factors coupled with the government's various agri-focused initiatives, are expected to support farm cash flows and 2W demand."<br /><br />In the urban markets, which have been more severely impacted by the pandemic, the agency said a preference towards personal mobility could push near-term demand. <br /><br />"However, these would only help to partially offset the adverse impact of the pandemic. Given the expectation of sharp decline India's GDP, lower job creation and income uncertainties, two-wheeler demand will most certainly remain adversely impacted," the statement said.<br /><br />"There is a likelihood of downtrading by consumers as well once the economy starts to cripple back to normalcy."<br /><br />On the export front, ICRA said that while long-term drivers remain favourable, Covid-19 fallout and volatility in crude oil prices (as it impacts demand in key markets) remain a near term negative. <br /><br />"Nonetheless, an attractive product portfolio and continued focus of Indian 2W OEMs on building and expanding overseas sales and after sales networks (replacement market) provides potential for growth in the medium term," the agency's statement added.<br /><br /><strong>SEE ALSO: <br /><br /><a href="https://www.businessinsider.in/finance/news/rbi-governor-shaktikanta-das-leaves-repo-rate-unchanged-to-check-inflation/articleshow/77387591.cms">‘Watchful’ RBI leaves repo rate unchanged to keep inflation in check</a><br /><a href="https://www.businessinsider.in/tech/news/the-beirut-explosion-created-a-huge-mushroom-cloud-and-visible-blast-wave-but-nuclear-weapons-experts-say-it-wasnt-an-atomic-blast-heres-why-/articleshow/77362144.cms">The Beirut explosion created a huge mushroom cloud and visible blast wave, but nuclear weapons experts say it wasn't an atomic bomb. Here's why.</a><br /><a href="https://www.businessinsider.in/business/startups/news/microsoft-for-startups-lathika-pai-says-entrepreneurs-pitching-for-investments-need-to-have-this-one-question-answered-in-their-pitch-decks/articleshow/77352935.cms">Microsoft for Startups’ Lathika Pai says entrepreneurs pitching for investments need to have this one question answered in their pitch decks</a><br /></strong><a href="https://www.businessinsider.in/careers/news/linkedin-tcs-disney-hotstar-zee-and-other-companies-hiring-right-now-in-india/slidelist/77352775.cms"><strong>LinkedIn, TCS, Disney+ Hotstar, Zee and other companies hiring right now in India</strong></a><br />

Two-wheeler sales in India could contract by 16-18% in FY2021, says ICRA

In flood-hit <keyword id="6354915" type="General" weightage="50" keywordseo="assam" source="Orion">Assam</keyword>, <keyword id="6360114" type="General" weightage="80" keywordseo="lpg" source="Orion">LPG</keyword> delivery vans of <keyword id="44530" type="General" weightage="50" keywordseo="psu" source="Orion">PSU</keyword> major Indian Oil Corporation (IOC) have been replaced by boats for the seamless supply of the fuel to keep the burner flames on, a senior official said on Tuesday.<br /><br />At least 180 people have died and more than 89.13 lakh people suffered cumulatively across 34 districts since April 6 in one of the worst floods Assam witnessed in recent times.<br /><br />The challenge increased manifold with severe landslides in several neighbouring states such as Meghalaya, Arunachal Pradesh and Manipur, Indian Oil Corp Executive Director (IndianOil-AOD) G Ramesh told PTI here.<br /><br />''Indian Oil rose magnificently to the occasion and ensured an uninterrupted supply of LPG as well as petrol and diesel to affected areas. Our dealers and distributor network rolled up their sleeves and also made food and water available to stranded people,'' he added.<br /><br />The IOC official particularly praised the <keyword id="97928" type="General" weightage="50" keywordseo="liquefied-petroleum-gas" source="Orion">Liquefied Petroleum Gas</keyword> (LPG) cylinder delivery channels, which never stopped working despite immense difficulties in reaching households that were completely submerged by flood waters.<br /><br />''The LPG door-to-door delivery continued through boats. Boats replaced delivery vans. This resulted in achieving an enviable LPG cylinder backlog in Assam of only 1.03 days during the peak of floods last week,'' he said.<br /><br />Currently, the backlog period for delivery of LPG cylinders has improved to 0.7 day for the entire state, the official said.<br /><br />Ramesh claimed that the waiting period for LPG cylinders in Silchar town and other places of Cachar, Karimganj and Hailakandi districts of Barak valley, which saw unprecedented flooding this time, is just 1.88 days at present.<br /><br />He said that the retail outlets were instructed to prioritise the supply of diesel to mobile tower operators to keep the communication channels alive in the face of continuous power cuts during the massive deluge.<br /><br />The government deployed <keyword id="58585" type="General" weightage="50" keywordseo="ndrf" source="Orion">NDRF</keyword>, <keyword id="15350" type="General" weightage="50" keywordseo="army" source="Orion">Army</keyword> and <keyword id="6354954" type="General" weightage="50" keywordseo="air-force" source="Orion">Air Force</keyword>, besides various state organisations, which required an uninterrupted communication network for relief and rescue operations.<br /><br />''During this crisis, the efforts of the entire team of Indian Oil, primarily our frontline workers, comprising the location staff, contract workers, tank truck crew, security guards, LPG delivery boys, have been unprecedented.<br /><br />''These people ensured an uninterrupted supply of essential petroleum products in the region. We are really proud of them and I am happy to be a part of this fabulous team,'' Ramesh said.<br /><br />On Silchar, which was under water for more than 10 days, the official said the rail link was cut off for more than a month since the landslides in <keyword id="385380" type="General" weightage="50" keywordseo="dima-hasao" source="Orion">Dima Hasao</keyword>.<br /><br />''Landslides in Meghalaya further severed the connectivity of Silchar by road. However, our newly commissioned Moinarbond depot near the city proved to be a saviour. It fulfilled all the local fuel demand,'' he said.<br /><br />SEE ALSO:<br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/politics/india/news/eknath-shinde-wants-a-breather-and-spend-time-with-families/articleshow/92666818.cms">Eknath Shinde wants a 'breather' and spend time with families</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/environment/news/30-large-reservoirs-in-india-dip-to-a-decadal-low-after-erratic-rains-in-june/articleshow/92665877.cms">30 large reservoirs in India dip to a decadal low after erratic rains in June</a><br />

IndianOil delivers cooking gas via boats in flood-hit Assam

New Delhi, The <keyword id="6355014" type="General" weightage="20" keywordseo="delhi-high-court" source="Orion">Delhi High Court</keyword> has rejected a government challenge to an arbitration panel award that had ruled in favour of Reliance Industries Ltd in a dispute over gas migration from fields operated by state-owned ONGC in the KG basin. The government had slapped a provisional penalty of USD 1.55 billion on Reliance for "unjust enrichment" from gas migrating from the ONGC-operated KG-D5 block to the private firm's adjoining KG-D6 area. It had sought USD 175 million in additional profit petroleum from Reliance and its UK partner BP Plc. <br /><br />Reliance-BP challenged the penalty before an arbitration panel, which ruled that the two firms had produced gas from their contract area and there was no question of "unjust enrichment". <br /><br />The government challenged the arbitration award before the Delhi High Court, which in an order on Tuesday upheld the ruling of the arbitration panel, favouring Reliance. <br /><br />The court said "factual conclusions arrived at by the arbitral tribunal" on the issue "cannot be second-guessed by this court". <br /><br />Also, "the factual conclusions are perfectly rational, coherent and logical, especially considering what was comprised in the production sharing contract (PSC) was a purely commercial transaction entered into by two contracting parties," it added. <br /><br />The order went on to state that it is not persuaded to hold the conclusions drawn by the arbitral tribunal were unreasonable. <br /><br />"Suffice it to say that the view taken by the arbitral tribunal is most certainly a 'possible view', which calls for no interference," it said. <br /><br />Dismissing the government petition, the order said the "court finds no ground to interfere with the majority arbitral award, which is accordingly upheld". <br /><br />Disputes arose when in 2013, Oil and Natural Gas Corporation (ONGC) by a letter dated July 22, 2013, addressed to the Directorate General of Hydrocarbons (DGH) informed the latter that there was "evidence of lateral continuity of gas pools" as between the KG-DEN-98/3 (KG-D6) block of Reliance and the adjacent blocks allocated to the state-owned firm. <br /><br />In simple terms, this meant that the gas pools of the Reliance block and the ONGC blocks appeared to be connected with possible migration of gas between the two blocks. <br /><br />ONGC filed a writ petition before the Delhi High Court. The petition was disposed of by the court, by directing the Ministry of Petroleum and Natural Gas to consider the report produced by the expert agency DeGolyer &amp; MacNaughton (D&amp;M), which was to undertake an independent third-party study to verify the claimed continuity and migration of gas from the ONGC blocks to the Reliance block. <br /><br />In its final report dated November 19, 2015, D&amp;M concluded that "the integrated analyses indicated connectivity and continuity of the reservoirs across the blocks operated by ONGC and Reliance". <br /><br />The ministry in the following month appointed a one-man committee of Justice AP Shah, former Chief Justice of the Delhi High Court, to consider the D&amp;M report and to recommend a future course of action. <br /><br />Based on the Shah committee report, the ministry imposed a USD 1.55 billion penalty on Reliance along with interest up to March 31, 2016. It also sought USD 175 million towards revised additional cumulative profit petroleum from disgorgement of "unjust enrichment". <br /><br />Reliance challenged the penalty before an arbitration tribunal, which held that the production sharing contract (PSC) does not prohibit but permits the company to produce and sell gas, which migrated into the sub-sea reservoir lying within its contract area from a source outside. <br /><br />It went on to state that "there was no question of unjust enrichment that requires further determination".

HC throws out govt challenge to arbitration panel ruling favouring Reliance in gas migration row

<ul class="summary-list"><li>Uranium prices have risen to trade close to the highest level hit since Russia invaded Ukraine.</li><li>Europe's energy crisis is fuelling bets on nuclear power, driving up uranium demand.</li></ul><p><a href="https://markets.businessinsider.com/commodities/uranium-price">Uranium prices</a> are approaching their highest level since Russia invaded Ukraine as Europe's energy crisis encourages countries to intensify their nuclear power efforts.</p><p>Futures prices climbed 0.28% Tuesday to hover just shy of the four-month high of $53.50 a pound reached September 1, meaning that the commodity has jumped 21% year-to-date.</p><p>They rose above $50 in March for the first time since 2011, in the wake of the invasion in late February, but fell back in following months and haven't traded consistently above the key level since then.</p><p>War in Ukraine has sparked an <a href="https://markets.businessinsider.com/news/commodities/europe-energy-crisis-inflation-recession-risk-winter-russia-supply-blackrock-2022-9">energy crisis in Europe</a>, with countries forced to turn to alternative fuels <a href="https://markets.businessinsider.com/news/commodities/europe-energy-crisis-coals-making-a-comeback-heres-why-2022-9">such as coal</a> as Russia slashes its oil exports and <a href="https://markets.businessinsider.com/news/commodities/russia-gazprom-nord-stream-1-gas-energy-recession-europe-shutdown-2022-8">cuts off natural gas flows via a key pipeline</a>. The region is also facing a <a href="https://markets.businessinsider.com/news/commodities/norway-electricity-export-cut-europe-energy-crisis-power-prices-russia-2022-8">shortfall in hydropower</a> after extreme summer heatwaves dried up reservoirs.</p><p>That's boosted demand for uranium, which is used in nuclear power-generation plants.</p><p>Germany, which was heavily reliant on gas flows from Russia through the Nord Stream 1 pipeline prior to the invasion of Ukraine, said last week it would <a href="https://www.theguardian.com/world/2022/sep/05/germany-to-delay-phase-out-of-nuclear-plants-to-shore-up-energy-security">temporarily halt the phase-out of two nuclear power plants</a> in a bid to reduce its reliance on Moscow.</p><p>"In the winter, our towns and cities will in part be darker because of the fact we have to save electricity," German finance minister Christian Lidner said. "In this situation we should not forgo safer and climate-friendly ways of producing electricity such as nuclear power."</p><p>California lawmakers voted to keep the state's only nuclear power plant in Diablo Canyon running for another five years on September 1, while Japan has signaled its intention to consider building new plants <a href="https://markets.businessinsider.com/news/commodities/energy-crisis-japan-nuclear-energy-policy-fukushima-germany-russia-europe-2022-8">for the first time since the 2011 Fukushima disaster</a>.</p><p>Bank of America issued a bullish uranium call last month, noting that sanctions on Russian energy exports could drive prices up further, by over 30%. </p><p>"Bank of America forecasts uranium spot prices to rise to $70 a pound by 2023," its analysts said. "The loss of Russian supplies and the Diablo Canyon nuclear plant extension could be bullish catalysts."</p><p>The EU's ban on Russian coal took effect in August, and its embargo on the country's seaborne imports of oil and petroleum products is due to kick in on December 5. </p><p>Uranium stocks have also rallied over the past month on a perceived surge in demand. The <a href="https://markets.businessinsider.com/etfs/global-x-uranium-etf-us37954y8710">Global X Uranium ETF</a> has jumped 12.2% since August 13, while leading mining stock <a href="https://markets.businessinsider.com/stocks/ccj-stock?miRedirects=1&amp;utm_medium=ingest&amp;utm_source=markets">Cameco</a> has climbed 21.3% over the same period.</p><p><em><strong>Read more:</strong> <a href="https://markets.businessinsider.com/news/stocks/uranium-stocks-elon-musk-applauds-nuclear-alternative-energy-source-cameco-2022-8">Uranium stocks are soaring as Japan signals openness to more nuclear power and Elon Musk applauds the alternative energy source</a></em></p>

Uranium prices rise toward the highest level since the Ukraine invasion as Europe's energy crisis drives up nuclear bets

<ul class="summary-list"><li>The UK government is planning for a worst-case scenario this winter that could involve planned blackouts, Bloomberg reported.</li><li>Cold weather could combine with natural gas shortages as the European energy crisis intensifies.</li></ul><p>The UK is the latest country preparing to implement emergency measures this winter as soaring gas and electricity prices fuel an energy crisis in Europe.</p><p>The British government is prepared to trigger emergency measures in January to conserve gas as electricity imports fall, according to <a href="https://www.bloomberg.com/news/articles/2022-08-09/uk-braces-for-blackouts-gas-cuts-in-january-in-emergency-plan#xj4y7vzkg">Bloomberg</a>. A number of countries, including Germany, the Netherlands and Denmark have drawn up plans to deal with energy shortages over the winter, including switching to coal-fired power and even forms of rationing.</p><p>UK measures could include organized power cuts affecting both businesses and households to avoid potential gas shortfalls, Bloomberg said.</p><p><a href="https://uk.investing.com/commodities/natural-gas-streaming-chart">UK natural gas prices</a> have surged 130% this year, compared with a rise of 200% in benchmark European prices so. Benchmark power prices on the continent have hit record highs, rising by almost 300% since the start of 2022.</p><p>"Rationing can't be ruled out in the colder months. This will impact everyone, but especially energy intensive industries like car makers, chemical companies and cryptocurrency mining," Simon Tucker, global head of energy, utilities and resources at Infosys Consulting, said.</p><p>"Fundamentally, there is huge demand for natural gas and especially liquid natural gas (LNG) in Europe. Even with a large increase in shipments of LNG from the Middle East and North America, supply is still limited and particularly cold spells in winter pose a serious risk," he added.</p><p>Gas and power costs are contributing to a cost-of-living crisis across Europe, with key benchmark prices soaring since Russia invaded Ukraine in February. Red-hot inflation is forcing central banks to raise interest rates, delivering an additional blow to cash-strapped households everywhere.</p><p>Part of the increase is down to a drop in flows of energy from Russia, which has traditionally been Europe's go-to provider, supplying 40% of the region's natural gas. EU sanctions on Moscow over the war in Ukraine have resulted in Russian exports of gas slowing to a trickle through at least one major pipeline. </p><p>Britain produces natural gas itself and gets additional supply in the form of super-cooled fuel that arrives on tankers. It often has a glut of unused gas because of a shortage of storage options, but its capacity to export any excess to the rest of Europe is constrained by the size of the pipelines that connect it to the mainland. Even so, it still imports much of its electricity from its neighbours in Norway and France. </p><p>The entire continent is now scrambling to deal with an unprecedented rupture in energy security.</p><p>Norway, a major exporter of electricity and natural gas, <a href="https://markets.businessinsider.com/news/commodities/norway-electricity-export-cut-europe-energy-crisis-power-prices-russia-2022-8">has warned it may ration power exports to the rest of the continent</a> as it grapples with a lack of rainfall that has depleted the reservoirs it relies on for hydropower. </p><p>Adding to the squeeze on available supplies is France - ordinarily a net exporter of power thanks to its fleet of nuclear power stations. But ageing infrastructure and overdue maintenance mean Europe's second largest economy is now having to vie for electricity on the open market, as a large proportion of its nuclear facilities are offline.</p><p>Even power stations in Europe's manufacturing heartland of Germany are struggling to source enough fuel. A heatwave and record low rainfall across the region <a href="https://markets.businessinsider.com/news/commodities/european-natural-gas-prices-russia-supply-cuts-rhine-water-levels-2022-8">have driven water levels on the river Rhine to historic lows</a>, which means the barges that would normally carry anything from coal to refined petroleum products are unable to pass through with anything close to full loads.</p><p><em>Read more: </em><a href="https://markets.businessinsider.com/news/commodities/european-energy-crisis-where-the-eu-gets-its-natural-gas-2022-8"><em>This map shows where Europe gets its natural gas - and why economic disaster is looming if Russia cuts off its fuel supply</em></a></p>

The UK is the latest country to ready for blackouts and power shortages this winter, as Europe's energy crisis intensifies, according to a report

<ul class="summary-list"><li>The Navy has confirmed the presence of petroleum in the <keyword id="15300" type="UNKNOWN" weightage="60" keywordseo="water" source="Orion">water</keyword> system that services Joint Base Pearl Harbor-Hickam. </li><li>Secretary of the Navy Carlos Del Toro apologized to families for any "angst" the water crisis has caused them. </li></ul><p>Military residents near <keyword id="11940260" type="UNKNOWN" weightage="60" keywordseo="hawaii" source="Orion">Hawaii</keyword>'s Joint Base Pearl Harbor-Hickam began to find something distasteful: their tap water smelled like gasoline. On Friday, Navy officials confirmed that petroleum had contaminated a well serving the Navy water system.</p><p>Navy leaders fielded questions from residents for over four hours on Sunday night in the latest of a series of <a href="https://fb.watch/9K98QbEQwv/">town halls</a> concerning the developing water crisis at the base, where a nearby fuel reservoir has apparently leached into the water supply. </p><p>Secretary of the Navy Carlos Del Toro apologized to Hawaii's military families and said the Navy is "already working extremely hard" to find a solution to the water crisis.  Del Toro said while he initially travelled to Hawaii for Pearl Harbor commemorations, being at the town hall "is the most important thing I can be doing." </p><p>"My promise to you is we don't just leave here and forget about you," Del Toro said. </p><iframe src="https://www.facebook.com/plugins/video.php?height=314&amp;href=https%3A%2F%2Fwww.facebook.com%2FJBPHH%2Fvideos%2F946383589295508%2F&amp;show_text=false&amp;width=560&amp;t=1087" width="560" height="314" style="border:none;overflow:hidden" scrolling="no" frameborder="0"></iframe><p>During Sunday's townhall, Rear Adm. Blake Converse, deputy commander of the US Pacific Fleet, said over 700 residents are being housed in hotel rooms to get away from the contamination. </p><p>Some families have reported symptoms including rashes, stomach problems, dizziness and sore throat throughout the last week.</p><blockquote class="twitter-tweet blockquote" data-lang="en" data-cards="" data-conversation="">—USNavyCNO  (@USNavyCNO) <a href="https://twitter.com/mims/statuses/1467957941500264454?ref_src=twsrc%5Etfw">December 6, 2021</a></blockquote><p>Joint Base Pearl Harbor-Hickam houses about 7,000 families and a base spokesperson said about 1,400 of those families are in areas affected by the water issues. </p><p>During the town hall, Navy leaders received questions from families of all service branches concerning the health of their children, pregnant women, animals and the safety of the environment as the Navy searches for a solution to the crisis. </p><p>"I'm here to ask you why you were not my a wingman to protect my 13-month-old son when I was bathing him and I was giving him a sip cup full of water from my faucet, when he was throwing up for days on end," said one Air Force spouse. "I'm here to ask why you weren't there protecting my family when we made the heartbreaking choice to put my beloved dog down." </p><p>The spouse said the family has had multiple visits to the emergency room and spent thousands of dollars to discover why their healthy dog was vomiting and having trouble breathing. </p><p>Officials said they have identified three Air Force housing communities, five Navy communities and two Army communities that have been directly affected by the contamination. </p><p>During the town hall, residents praised the actions of the Army — who deployed soldiers to deliver water door to door at Aliamanu Military Reservation. </p><p>On Monday, Armed Forces Housing Advocates, a group that services military families, sent a letter to President Joe Biden requesting he declare a state of emergency in Hawaii. The group has reported receiving nearly 500 complaints from families having water that smelled like fuel. </p><p>The suspected site of the leak is the Navy's bank of underground fuel storage tanks built into a volcanic mountain ridge. The Red Hill facility can store up to 250 million galloons of petroleum and its lines run down the piers at Pearl Harbor to refuel ships. The site has prompted decades of concerns about water contamination.</p><p>U.S. Representative Ed Case, Hawaii Democrat, told reporters from the <a href="https://www.staradvertiser.com/2021/12/06/breaking-news/u-s-rep-ed-case-says-confidence-in-navy-compromised-by-water-contamination/">Honolulu Star Advertiser</a> that the Navy "has not been forthcoming" with test results requested by the state's Department of Health and the Environmental Protection Agency.  </p><p>"The Navy's handling of Red Hill has not inspired public confidence," Case said. "If the calculation of preserving a national security asset presents unacceptable risk to us, to our drinking water, to our lives, that's not a risk that I or anybody else is willing, or should be asked, to accept." </p><p>On Sunday, Hawaii's entire congressional delegation and its governor, David Ige, released a <a href="https://www.civilbeat.org/2021/12/hawaiis-leadership-calls-for-suspension-of-navys-red-hill-fuel-facility/">joint statement</a> calling on the Navy to immediately suspend its operations at Red Hill until they "remedy this crisis."</p>

Hundreds of military families in Hawaii were forced into hotels by apparent leak of Navy fuel into their water supply

<ul><li><strong>OPEC's control over the supply of <keyword id="11896879" type="UNKNOWN" weightage="60" keywordseo="oil" source="Orion">oil</keyword> will catapult prices to $150 a barrel in 2023, JPMorgan said in a Monday note.</strong></li><li><strong>"We believe OPEC+ will defend the oil price with paced volume growth to keep inventories low," JPMorgan said.</strong></li><li><strong>The bank doesn't see the new Omicron variant of COVID-19 putting a dent into demand for oil.</strong></li></ul><hr /><p>Rising <keyword id="11894590" type="UNKNOWN" weightage="60" keywordseo="oil-prices" source="Orion">oil prices</keyword> are here to stay according to <a href="https://markets.businessinsider.com/stocks/jpm-stock">JPMorgan</a>, with the bank estimating that Brent prices could hit $150/bl in 2023 as the OPEC+ cartel control supply and defend higher prices.</p><p>That means the Biden administrations release of strategic petroleum reserves will have little impact on the underlying price of oil, as was made clear in the initial price reaction in oil last week after the <a href="https://www.businessinsider.com/biden-releasing-oil-from-us-reserves-hope-combat-gas-price-spike-2021-11">government flooded the market with 50 million barrels.</a> </p><p>The main driver behind oil prices is supply and demand. And while the Omicron COVID-19 variant put a dent into oil prices on Friday, with investors fearing that potential country lockdowns would reduce travel and therefore lower demand for oil, JPMorgan viewed that price move as an overreaction.</p><p>"We believe the market may overestimate the impacts of the recent emergence of the Omicron variant of COVID-19 on oil prices during the US holiday period," JPMorgan said in a Monday note, inferring that there will be little to no slowdown in holiday travels even as the Omicron variant spreads.</p><p>With demand for oil likely to remain steady, supply will remain the key driver behind oil prices for years to come. And with OPEC+ "being firmly in the driver's seat for oil prices," JPMorgan thinks Brent will hit $120/bl in 2022, and could even overshoot to $150/bl in 2023, representing potential upside of as much as 100% from current levels.</p><p>"We believe OPEC+ will defend the oil price with paced volume growth to keep inventories low, <keyword id="11893875" type="UNKNOWN" weightage="100" keywordseo="markets" source="Orion">markets</keyword> in balance and reservoirs well managed," JPMorgan explained.</p><p>Increased supply from US-based oil producers could help put downward pressure on oil prices, but the US oil rig count is <a href="https://ycharts.com/indicators/us_oil_rotary_rigs">at about half what it was in 2019,</a> and investments back into the sector have been slow ever since <a href="https://www.businessinsider.com/power-line-why-oil-prices-went-negative-levels-of-detail-2020-4">oil prices briefly turned negative</a> amid the onset of the pandemic in 2020. That's a recipe for rising oil prices, at least until US oil production hits levels last seen before the pandemic. </p>

Oil prices are set to rise as high as $150 a barrel as OPEC+ controls supply in the face of Omicron concerns, JPMorgan says

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5ac66edf87826b17008b4674-1107/screen shot 2018-04-05 at 21826 pm.png" border="0" alt="Screen Shot 2018 04 05 at 2.18.26 PM" data-mce-source="Google Maps; Business Insider" /><p class="source"><span>Google Maps; Business Insider</span></p></div><p></p></div></div></p><ul><li><strong>The island nation of Bahrain announced Wednesday that it discovered a shale reserve with at least 80 billion barrels of crude oil. </strong></li><li><strong>Like other producers, Bahrain's government relies on oil revenues to fund itself, and its deficit was worsened by the <a href="http://markets.businessinsider.com/commodities/oil-price?type=wti">oil</a> crash that began in 2014.</strong></li><li><strong><a href="http://markets.businessinsider.com/stocks/hal-stock">Halliburton</a> will frack the shale reserve to evaluate how much oil in the find is actually extractable.</strong></li></ul><hr /><p>Bahrain announced on Wednesday that it discovered at least 80 billion barrels of crude oil in a shale reserve. </p><p>The island kingdom to the east of Saudi Arabia is the smallest and oldest energy producer in the Persian Gulf, according to <a href="https://www.bloomberg.com/news/articles/2018-04-04/bahrain-seeks-big-oil-help-to-develop-its-new-shale-discovery">Bloomberg</a>.</p><p>Depending on how much is extractable, the discovery could beef up Bahrain's output in the region that includes heavyweights such as the United Arab Emirates and Iran. Like other producers, Bahrain's government relies on oil revenues to fund itself, and its deficit was worsened by the oil collapse that began in 2014.  </p><p><span>Bahraini officials expect production from the well to be up and running within five years. The country currently produces about 50,000 barrels of oil per day, AFP reported.   </span></p><p>The US oil producers Halliburton and <a href="http://markets.businessinsider.com/stocks/slb-stock">Schlumberger</a> were among the three consultants that worked on the discovery, Bahrain's National Oil and Gas Authority said in a <a href="http://www.noga.gov.bh/noga/news.aspx?id=2213">statement</a>. </p><p>An "a<span>greement has been reached with Halliburton to commence drilling on two further appraisal wells in 2018, to further evaluate reservoir potential, optimize completions, and initiate long-term production," the statement added. </span></p><p><span>But Halliburton could find that only a fraction of what's underground is recoverable. According to Bloomberg, citing a local newspaper, the new discovery could one day supply 200,000 barrels per day.  </span></p><p><span>Bahrain isn't part of the Organisation of Petroleum Exporting Countries, an oil cartel, but was one of 11 non-members that agreed to cut their oil output to help reduce a global oversupply of oil. </span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/remove-apps-facebook-privacy-issue-data-tip-fix-2017-11">How to stop your Facebook friends from giving away your data</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/nFQB8RWL-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

One of the smallest oil producers in the Middle East just announced its biggest discovery in decades

<p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57e936fc077dcc6b138b7f99-1280/2q==.jpg" alt="ecomo" data-mce-source="Ecomo"><p class="source"><span>Ecomo</span></p></img></div><p></p></div></div><p>Tap&#xa0;water is safe in most (<a href="http://www.nytimes.com/2016/02/09/us/regulatory-gaps-leave-unsafe-lead-levels-in-water-nationwide.html">though not all</a>) US cities, though if you want&#xa0;the peace&#xa0;of mind that&#xa0;filtered water brings, this bottle can test for contamination and purify&#xa0;your water on the go.</p><p>The Ecomo bottle has a built-in water quality tester that can detect pollutants, including pesticides, dissolved minerals, petroleum products, and heavy metals like lead and mercury.&#xa0;To use the device, you shake the bottle to send water into the tester;&#xa0;the system is connected to an app on your phone, and sends test results via Bluetooth.</p><p>From there, you can read the water temperature&#xa0;and track the impurities in your water. The app will then give your water a quality rating&#xa0;out of 10.</p><p></p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57e94233b0ef97c5098b81c5-904/screen%20shot%202016-09-26%20at%2011.33.33.png" alt="ecomo-app" data-mce-source="Ecomo"><p class="source"><span>Ecomo</span></p></img></div><p></p></div></div><p>The device cleans the water through a three-layered filter, which looks like&#xa0;a net inside the bottle. One layer of the filter is made of activated charcoal, which removes chlorine, pesticides, and petroleum - the things that can add a "chemical" smell or taste to the water. The second layer is made of an ion-exchange fiber that removes heavy metals, and the&#xa0;third - a nanofiber membrane&#xa0;-&#xa0;catches bacteria and microscopic protozoa that can&#xa0;cause stomach cramps and nausea.</p><p>To purify water, you fill the bottle and twist a wheel on the&#xa0;bottom to move the filter through the water. After that, the rating will change to reflect how well the water has been filtered.</p><p>The bottle could come in handy if you're on a hike and need to filter river water, or if you have a feeling your pipes need cleaning and want to make sure the tap water's potable. More importantly, it could also help those in water crises like the one in Flint find out whether their water contains&#xa0;lead.</p><p>The Ecomo&#xa0;has&#xa0;three parts. The first is the water-holding reservoir itself, which contains the net-like filter. A second layer below that is a removable, wearable device that's built into the bottle. It&#xa0;has a screen that can&#xa0;remind you to drink enough water (a feature that's been in <a href="http://www.techinsider.io/ulla-will-make-sure-you-drink-enough-water-2016-7">more than a few</a> <a href="http://www.businessinsider.com/hidrateme-kickstarter-water-bottle-2015-6">smart&#xa0;bottles</a> <a href="http://www.techinsider.io/moikit-seed-smart-bottle-2016-1">thus far</a>).&#xa0;The third layer contains the quality monitor and the&#xa0;filter wheel, which&#xa0;also features an indicator that&#xa0;tracks the lifespan of your filter.&#xa0;</p><p>A Kickstarter fundraising campaign for the&#xa0;Ecomo&#xa0;is expected to launch&#xa0;October 5. The bottles will start at $129 each for early bird backers, and are expected to ship in March 2017.</p><p>For city dwellers who are confident in the quality of their water, the product might be a bit overkill -&#xa0;there are already&#xa0;<a href="https://smile.amazon.com/dp/B004GN8RDY">Brita filter water bottles</a>&#xa0;on the market, and many&#xa0;tiny particulates in your drinking water <a href="http://www.businessinsider.com/what-ingredients-are-in-tap-water-2016-1">are actually&#xa0;safe</a>.</p><p>But if you're worried about the purity of your water supply,&#xa0;you might appreciate the ability to make sure what you're drinking is safe.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/pure-water-strip-body-minerals-2016-8">This water is so pure it could strip the minerals from your body</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NhaXVoNTE6AUiotw9O7IH3JOjsuxrJ-M" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'NhaXVoNTE6AUiotw9O7IH3JOjsuxrJ-M',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

This bottle tests water for contamination and purifies it on the go

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/55a5595469beddeb0c09cb5c-800-600/screen shot 2015-07-14 at 2.47.07 pm.png" alt="iran oil sanctions" style="color: #000000; font-size: 15px; line-height: 1.5em;" border="0"><p class="source"><span>Barclays</span></p></img></div><p></p></div></div><span>The world powers and Iran </span><a href="http://www.businessinsider.com/world-powers-have-reached-a-landmark-nuclear-deal-with-iran-2015-7">struck a deal on Tuesday</a><span> to curb Iran's nuclear program for at least 10 years in exchange for billions of dollars in relief from international sanctions.</span></p><p><span>Since Iran has the fourth-largest </span><a href="https://www.cia.gov/library/publications/the-world-factbook/rankorder/2244rank.html">proven</a><span> crude oil reserves, everyone's wondering what Iran's re-entry on the global market means.</span></p><p><span style="font-size: 15px; line-height: 1.5em;">"A potential return of Iranian oil to the market could not have come at a worse time," Barclays commodities analyst Michael Cohen wrote in a note to clients. <span>"An increase in Iranian exports beyond 300-400 kb/d would be difficult for the market to absorb."</span></span></p><p>Right now, the oil market is already saturated as supply greatly outpaces demand. Consequently, more Iranian oil means that <a href="http://www.bloomberg.com/news/articles/2015-04-07/iran-deal-may-cut-eia-oil-price-forecast-by-as-much-as-15">prices could drop further</a>, and there will likely be increased competition within OPEC (especially since Iran and <a href="http://www.businessinsider.com/iran-could-soon-shake-things-up-for-saudi-arabia-2015-7">Saudi Arabia</a> are both members of the oil cartel.)</p><p>Furthermore, "given continued statements from the Obama administration that sanctions can be snapped back at any time, we would expect refiners to be reluctant to conclude long term procurement arrangements with Iran during 2015," writes Cohen.</p><h2><div class="KonaFilter image-container display-table float_right"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/559ade5becad04594e4b5c45-398-477/screen shot 2015-07-06 at 4.00.08 pm.png" alt="Screen Shot 2015 07 06 at 4.00.08 PM" border="0"><p class="source"><span>Citi Research</span></p></img></div><p></p></div></div>Good news for Mediterranean countries</h2><p>Still, one area that is poised to benefit from Iran's oil is the <a href="http://www.businessinsider.com/iran-and-russia-competing-over-crude-oil-in-europe-2015-7">Mediterranean Euro area</a>. </p><p>After Iran was banned from selling oil to Europe in 2012, Russia pounced on the market. <span style="font-size: 15px; line-height: 1.5em;">But now, </span><span style="font-size: 15px; line-height: 1.5em;">"Iran is going to be competing in Europe head-on with Russia," Ed Morse, head of commodities research at Citigroup Inc. previously </span><a href="http://www.bloomberg.com/news/articles/2015-07-05/russia-seen-as-biggest-oil-market-loser-when-iran-comes-back">told Bloomberg</a><span style="font-size: 15px; line-height: 1.5em;">.</span></p><p><span style="font-size: 15px; line-height: 1.5em;"><span>"We are looking forward to Iran coming back to the market," a spokesman for Greece's biggest refiner Hellenic Petroleum </span><a href="http://news.yahoo.com/european-refiners-ready-welcome-return-iranian-crude-135941635--finance.html">told Reuters</a><span>.</span><span><br /></span></span></p><p><span>However, it's important to note that there are still many uncertainties over how quickly Iran will get off the bench and back into the game.</span></p><p><span style="font-size: 15px; line-height: 1.5em;">"Restarting of mothballed fields and reopening the sector to foreign investment faces many obstacles," according to Barclays analysts.</span></p><p><span style="font-size: 15px; line-height: 1.5em;">Additionally, Dr. Mamdouh G. Salameh, an international oil economist and World Bank consultant, <a href="http://gulfnews.com/business/sectors/energy/uncertainty-over-iran-s-oil-production-increase-1.1487180">told Gulf News that</a> Iran's oilfields are old and need huge repairs if the Islamic Republic wants to increase production.</span></p><p>"It will take Iran more than two years to deploy the enhanced oil recovery (EOR) technology to repair the damaged reservoirs in its oilfields and try to increase production," he said. <span>"Even then it might only succeed in limiting the fast depletion in its oilfields rather than increase production."</span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/how-much-sex-should-happy-relationship-rachel-sussman-2015-5">How much sex you should be having in a healthy relationship </a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="ZsOHdhdTrVUE8WmzgO9g4CCWDc5YvI8t" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'ZsOHdhdTrVUE8WmzgO9g4CCWDc5YvI8t',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

OIL EXPERT: 'A potential return of Iranian oil to the market could not have come at a worse time'

<img class="gwt-Image" src="/photo/49999228.cms" />The final report on the gas dispute between the state-owned ONGC and Reliance Industries was submitted, stating that natural gas worth more than Rs 11,000 crore migrated from idling ONGC’s KG fields to adjacent KG-D6 block. <br />
<br />
US-based consultant DeGolyer and MacNaughton (D&amp;M) submitted its final report to the Directorate General of Hydrocarbons (DGH), a senior government official said here. <br />
<br />
"The report more-or-less reiterates what D&amp;M had stated in the draft report that some gas had indeed migrated from ONGC's Krishna Godavari basin blocks to RIL's KG-D6 fields", he said. <br />
<br />
Now, the report will be examined to conclude that on how and to what extend should ONGC be compensated for its gas being produced by RIL. <br />
<br />
"The Supreme Court had in its order (on ONGC petition on its gas being produced by RIL) stated that government will have to in six months from the date of receipt of D&amp;M report decide on addressing ONGC contention. That we will do,” the government official said. <br />
<br />
D&amp;M, in its report, established that reservoirs in ONGC's Krishna Godavari basin KG-DWN-98/2 (KG-D5) and the Godavari Producing Mining Lease (PML) are connected with Dhirubhai-1 and 3 (D1 &amp; D3) field located in the KG-DWN-98/3 (KG-D6) Block of RIL. <br />
<br />
It states that as much as 11.122 billion cubic meters of ONGC gas has migrated from Godavari-PML and KG-DWN-98/2 to KG-D6. <br />
<br />
Of the 58.68 bcm of gas produced from KG-D6 block since April 1, 2009, 49.69 bcm belongs to RIL and 8.981 bcm could have come from ONGC's side, D&amp;M said. <br />
<br />
At gas price of $4.2 per million British thermal unit, the volume of gas belonging to ONGC which RIL has produced comes to $1.7 billion (Rs 11,055 crore). <br />
<br />
ONGC had in 2013 claimed that RIL had deliberately drilled wells close to the common boundary of the blocks and that some gas it pumped out was from its adjoining block. <br />
<br />
RIL, on the other hand, has maintained that it has "scrupulously followed every aspect of the production sharing contract and has confined its petroleum operations within the (boundaries of its) KG-D6 block" in Krishna Godavari basin. <br />
<br />
D&amp;M estimated that ONGC's Godavari-PML had 14.209 bcm of gross in-place reserves and KG-D5 another 11.856 bcm. RIL's D&amp;D3 fields held 80.697 bcm gross in-place reserves. <br />
<br />
Of these, 12.80 bcm of Godavari-PML, 8.01 bcm of KG-D5 and 75.33 bcm of KG-D6 are connected, it said. <br />
<br />
It estimated that 11.89 bcm of gas from ONGC blocks would have migrated to KG-D6 by January 1, 2017. This volume would rise to 12.713 bcm by May 1, 2019. <br />
<br />
The volume of gas remaining after this would not be economically viable for ONGC to develop. <br />
<br />
D&amp;M was jointly appointed by ONGC and RIL to find if the neighbouring fields are connected. <br />


Mukesh Ambani might soon find himself paying a hefty compensation to ONGC

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/568edc00c08a80872f8b6ebd-3168-2264/aramco.jpg" alt="Aramco" data-mce-source="Ali Jarekji/Reuters" data-mce-caption="A worker looks at journalists during a media tour of the Khurais oilfield, about 160 km (99 miles) from Riyadh, on June 23, 2008." /><p class="source"><span>Ali Jarekji/Reuters</span></p><p class="caption">A worker looks at journalists during a media tour of the Khurais oilfield, about 160 km (99 miles) from Riyadh, on June 23, 2008.</p></div><p></p></div></div>As The Economist is reporting in its upcoming January 9th print edition that Saudi Aramco, the Saudi state-owned oil company believed to be the world's most valuable company, <a href="http://www.economist.com/news/briefing/21685475-possible-ipo-saudi-aramco-could-mark-end-post-war-oil-order-sale">might issue shares for the first time in its history</a>.</p><p>Aramco is a monster.</p><p>As The Economist notes, the company produces 10 million barrels of oil each day, a number equivalent to the US's entire daily output, and has ten times more oil reserves than Exxon.</p><p>Aramco is also very good at what it does: Saudi Arabia's break-even price for oil production is a mere $15 a barrel, second-lowest only to Kuwait and well below oil's current $32-per-barrel price, according to The Economist. </p><p>There are any number of reasons Aramco would go public, which range from encouraging investment in the Saudi stock market to bringing some limited transparency to a notoriously opaque company. <a href="http://www.businessinsider.com/saudi-aramco-could-look-at-ipo-economist-says-2016-1">But the biggest reason just might be revenue generation</a>.</p><p>According to The Economist, Aramco would be selling "perhaps 5%" of the company to investors. Five percent of say, $1.5 trillion is still $75 billion. Saudi Arabia might need the cash.</p><p>Last month, Saudi Arabia released an annual budget that included <a href="http://www.businessinsider.com/one-huge-sign-that-saudi-arabia-is-in-for-a-difficult-2016-2015-12">unprecedented austerity and taxation measures</a>. As <a href="http://www.reuters.com/article/saudi-budget-gulf-austerity-idUSL8N14I19T20151230">Reuters</a> reported on December 30th, Saudi Arabia will cut spending and implement a value-added tax, a notable move for a country with a cradle-to-grave welfare system for most citizens and very little taxation. Riyadh will also be taking "steps that will directly hit the purchasing power of citizens - in particular, raising domestic gasoline, kerosene, water and electricity prices," Reuters reported.</p><p>Saudi Arabia faces several long-term pressures that might explain its current need for greater revenue.</p><p>Money buys internal stability, at least for the time being: The legitimacy of the country's oppressive monarchical government is based partially on its ability to deliver petroleum-funded benefits to its citizens. Saudi Arabia's oil revenues fund its strategic outreach to Sunni Arab states enticed by the kingdom's vast reservoirs of cash - and they fund Saudi military operations in places like Yemen as well. </p><p><div class="KonaFilter image-container display-table float_left"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/568edc8fe6183ebe4a8b7718-630-369/screen shot 2016-01-07 at 4.44.58 pm.png" alt="Screen Shot 2016 01 07 at 4.44.58 PM" data-mce-source="Investing.com" data-mce-caption="Oil prices since August of 2015." data-link="http://www.investing.com/commodities/crude-oil" /><p class="source"><span><a href="http://www.investing.com/commodities/crude-oil">Investing.com</a></span></p><p class="caption">Oil prices since August of 2015.</p></div><p></p></div></div>Saudi Arabia also seems <a href="http://www.businessinsider.com/one-reason-saudi-arabia-likes-lower-oil-2016-1">determined to keep oil prices low in order to undercut the oil-dependent economy of Iran</a>, its chief regional an geopolitical adversary.</p><p>The rivalry with Iran, which also involves funding a network of Saudi allies, proxies, and religious and educational institutions throughout the Middle East and beyond, is an expensive one for Saudi Arabia. It only looks to intensify as Iran's strategic position improves in the wake of the July 2015 nuclear deal.</p><p>Meanwhile, there's been a sustained<span> </span><a href="http://www.nasdaq.com/markets/crude-oil.aspx">global plunge in crude prices</a><span> alongside the possibility of increased market supply - which would come onto an already oversupplied market - after the anticipated removal of most oil-related sanctions on Iran.</span></p><p><span>With oil prices low and tensions with Iran heating up, Saudi Arabia has every reason to want to raise revenue at what's becoming an increasingly anxious point in the country's history. A partial Aramco sell off is consistent with the government's recent austerity plans - and with sustaining its assertive foreign policy.</span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/china-upgraded-military-stronger-than-ever-weapons-2015-12">China has been upgrading its military and is now stronger than ever</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="41MmUydzqxiexrPA9bpJYVdtPkxyGiXP" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '41MmUydzqxiexrPA9bpJYVdtPkxyGiXP',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

We just got the latest sign Saudi Arabia is worried about the future

<p><a href="http://www.businessinsider.com/industry-iq"><img src="http://static2.businessinsider.com/image/555ba5f36bb3f79c60e72479-1200-110/industry-iqarticle-full-width120008.png" border="0" /></a></p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56290e2e9dd7cc70408b8d56-1200-831/bi_graphics_oil-wells-and-fiber-optics.png" alt="BI_Graphics_Oil wells and fiber optics" data-mce-source="Samantha Lee"><p class="source"><span>Samantha Lee</span></p></img></div><p></p></div></div><p>For the past year, oil and gas companies have been faced with an increasingly difficult situation.&#xa0;Oil prices have plunged from over $100 per barrel in July&#xa0;2014 to <a href="http://www.businessinsider.com/crude-oil-price-august-19-2015-8">under half that at times this year.</a>&#xa0; Some analysts predict&#xa0;prices <a href="http://www.businessinsider.com/how-long-are-oil-bear-markets-2015-10">will&#xa0;remain&#xa0;low</a>,&#xa0;<span>or could&#xa0;</span><a href="http://www.businessinsider.com/goldman-sachs-huge-supply-and-weak-demand-could-send-oil-prices-plunging-to-20-per-barrel-2015-9?r=UK&amp;IR=T">dive even lower</a><span>.</span></p><p>To help weather the storm, some&#xa0;companies are turning to&#xa0;big data and analytics.</p><p>Part of the drop in prices has come from the spike in oil production. The US has gone from pumping 5.4 million barrels a day in 2009 to 8.7 million last year, according to the <a href="http://www.eia.gov/dnav/pet/pet_crd_crpdn_adc_mbblpd_a.htm">US Energy Information Administration</a>.</p><p>A big reason for the transformation has been the rise of <a href="http://www.businessinsider.com/marathon-oil-animation-on-hydraulic-fracking-2014-7?op=1">fracking</a>, the process of shooting water into rock&#xa0;and impenetrable sands to extract hard to reach oil.</p><div id="outerOuter"><div id="GEouterBox" class="float_right" style="width: 50%; background: none; padding: 0 0 20px 0; position: relative; margin: 0px auto;"><div class="float_right" style="border: 1px solid; padding-bottom: 20px; margin: 10px 0 0 0; background-color: #f1f1f1;"><div id="GElogoBox" style="background-image: url('http://tbimedia.s3.amazonaws.com/bistudios/GE_HTML_Mock/image/general-electric-logo-vector.png'); background-repeat: no-repeat; background-position-x: right; background-position-y: 0px; width: 210px; margin-bottom: 10px; text-transform: uppercase; position: relative; height: 50px; top: 4px; left: 20px; color: gray; line-height: 50px; background-size: 50px;">Insights from</div>   <div id="GElogoBox" style="width: 90%; overflow: hidden; margin: 0 auto; cursor: pointer;"><div class="KonaFilter image-container"><div class="image on-image"><a href="https://bs.serving-sys.com/BurstingPipe/adServer.bs?cn=tf&amp;c=20&amp;mc=click&amp;pli=13385414&amp;PluID=0&amp;ord=%5Btimestamp%5D" target="_blank"><img style="position: relative; margin: 0px 0px 20px;" src="https://static-ssl.businessinsider.com/image/56045f296bb3f77e38ecd9ad-400-300/ge-oil.jpg" alt="image" width="400" height="300" border="0" /></a></div></div><div></div></div><p style="margin: 0 25px  15px;">Today's low oil prices make it increasingly important for customers to embrace Industrial Internet technologies to increase uptime and maximize production. A more digitally connected environment means better asset management and more productivity across every asset. A 1% improvement in capital utilization for upstream oil and gas exploration and development could total $90 billion in avoided or deferred capital expenditures.</p><p style="margin: 0px 0px 0px 25px;"><strong><a href="https://bs.serving-sys.com/BurstingPipe/adServer.bs?cn=tf&amp;c=20&amp;mc=click&amp;pli=13385414&amp;PluID=0&amp;ord=%5Btimestamp%5D" target="_blank"> See how GE can give you an edge »</a></strong></p></div></div></div><p>These fracking operations have been the hardest hit from&#xa0;the drop in oil prices. The price has <a href="http://www.businessinsider.com/shale-basin-breakeven-prices-2014-10">dropped below break-even prices</a> for many of the operations in the US&#xa0;shale basins, and some experts are saying that <a href="http://www.businessinsider.com/us-fracking-industry-decline-2015-2015-4">half of the industry could disappear</a> by the end of the year.&#xa0;<a href="http://www.businessinsider.com/oil-projects-uneconomic-at-50-per-barrel-2015-9">And&#xa0;a report from Wood McKenzie estimated</a> that if oil stays below $50 a barrel this year, $1.5 trillion of all US oil projects will lose money.</p><h2>Enter big data</h2><p>Fiber optics were originally a military technology, dating back to the 1960s. The technology has been used since the 1990s in oil and gas drilling, but recent developments have brought the technology back to the forefront.</p><p>In the past, most fiber optic cables for energy companies were unreliable. Putting the cables deep&#xa0;in the ground exposed them to extreme heat, pressure and moisture, causing deterioration. Their short lifespans made them less valuable and usable.</p><p>Additionally, the length of the cables prevented robust readings from the deepest points of well. This becomes a problem as&#xa0;fracking wells can <a href="http://water.epa.gov/type/groundwater/uic/class2/hydraulicfracturing/wells_hydrowhat.cfm">extend hundreds of thousands of feet</a> below the surface and draw oil laterally from as far away as 6000 feet.</p><p>Nowadays, the strength&#xa0;of the cables has improved, and the applications have expanded, <a href="http://www.optasense.com/wp-content/uploads/2015/01/FiberOpticAug14.pdf">said&#xa0;Trent Jacobs</a>&#xa0;at the Journal of Petroleum Technology.</p><p>"It has been an impressive comeback for a technology that once stood on the brink of failure," wrote Jacobs. "The upstream oil and gas industry has largely resolved crippling technical challenges that shortened the life of fiber-optic cables in downhole applications and is now working on a big encore."</p><p>Now firms&#xa0;such as <a href="http://www.optasense.com/our-technology/key-features/">OptaSense</a> can use&#xa0;cables&#xa0;to sense a vast amount of information. According to the company, they can run up to&#xa0;30 miles of cables with 4000 sensors to help companies get a better sense of what is happening.</p><p>In fact, these developments have allowed the&#xa0;fiber-optic market to grow quickly&#xa0;in the last few years.</p><p>According to <a href="http://www.igigroup.com/st/pages/photonic_sensor_report.html">Information Gatekeepers and Light Wave Ventures</a>, the fiber-optic sensor market has gone from under $200 million in 2006 to around $600 million today. The market is expected to nearly triple again in the next 3 years, to $1.5 billion in 2018, with 70% of that spending coming from oil and gas.</p><h2>New capabilities</h2><p>Previously, fiber optics were used to detect temperature changes that indicated the existence of oil or gas in an area. Now new&#xa0;capabilities have expanded their uses.</p><p>"<span>With distributed fiber optic sensing, by analyzing the laser-light reflections from different spots in the fiber, the temperature and strain of the glass can be determined at any point in the well, and the fiber can be turned into a series of distributed microphones or hydrophones," <a href="http://www.aogr.com/magazine/cover-story/fiber-optic-sensors-creating-new-possibilities-for-optimizing-fracturing">wrote&#xa0;</a></span><a href="http://www.aogr.com/magazine/cover-story/fiber-optic-sensors-creating-new-possibilities-for-optimizing-fracturing">Glenn R. McColpin</a>&#xa0;of Halliburton's Pinnacle in the&#xa0;American Oil and Gas Reporter.</p><p>There's a lot of complicated science going into fiber's new uses, but according to <a href="http://www.halliburton.com/en-US/ps/pinnacle/default.page?node-id=hgoxbxfo">Pinnacle</a>, which offers their own selection&#xa0;of fiber-optic sensors, the basic idea is that&#xa0;the cables shoot lasers into the rock and feedback helps them detect cracks where oil may be hiding.</p><p>By analyzing this feedback data, those working the wells can focus&#xa0;their&#xa0;efforts and find oil they may have otherwise missed.&#xa0;"O<span>perators can actually 'see' and 'hear' where fluid and proppant are moving along each individual meter of the well," said McColpin.</span></p><p><span>From there, operators can adjust how they go after the oil and maximize the potential of these wells. Companies can even extend the life of an older well that would otherwise be abandoned, which is huge&#xa0;</span><span>considering that Halliburton estimates drilling a new well costs around $8 million.</span></p><p><span>In one instance, Schlumberger, an oilfield services giant, was able to use this technology to help BP extract millions of gallons of oil.</span></p><p><span>"<span>BP was developing a portion of the Azeri-Chirag-Gunashli (ACG) oil field in the Caspian Sea offshore Azerbaijan. The main producing formations consisted of layers of sandstone interbedded with shale," said&#xa0;<span>Schlumberger in a <a href="http://www.slb.com/resources/case_studies/completions/permanent_monitoring/ww_briteblue_bp_caspian_cs.aspx">case study</a>.</span>&#xa0;"More than 100 million barrels of secondary production were at risk of being bypassed because of the reservoir's characteristics."</span></span></p><p>Instead of leaving&#xa0;the oil untapped, the company was able to install fiber-optic sensors to monitor&#xa0;both&#xa0;temperature and pressure helping to&#xa0;reach the oil that would have otherwise gone unused.</p><p class="embed-spacer">&#xa0;<div><script>document.addEventListener("DOMContentLoaded", function() {var geOuterBox = document.getElementById("GEouterBox");var geLogoBox = document.getElementById("GElogoBox");sidebarResize();window.addEventListener("resize", function() {sidebarResize();})function sidebarResize() {if (window.outerWidth &lt; 767) {geOuterBox.style.width = "100%";geOuterBox.style.marginLeft = "0px";geLogoBox.style.width = "190px";} else {geOuterBox.style.width = "31%";geOuterBox.style.marginLeft = "30px";geLogoBox.style.width = "210px";}}});</script></div></p><p class="embed-spacer">&#xa0;</p>

You Searched For "Petroleum reservoir" and got 14 results

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