Pakistan has a total installed electricity generation capacity of 19,440 MW, which produced more than 93,621 GWh of electricity this year. 30% of the electricity is generated by private sector companies. Pakistan has attracted foreign investment of USD 300 million in the energy sector in the last year. Over USD 600 million a year is spent to upgrade the existing generation, transmission and distribution system in Pakistan and USD 706 million was spent on the import of power generation equipment in 2006 - 2007.
The potential hydropower capacity is estimated at 41,700 MW, however existing hydropower generation capacity of the country is 6600 MW. The Government is giving priority to exploit this potential to cater to the increasing demand for energy and power resources.
Currently there is a shortfall of 4,000 MW in the demand and supply of electricity in Pakistan and the government expects to add about 1300 MW capacity over next few years through the private sector.
Pakistan also possess immense potential to harness unlimited solar and wind energy. The Government of Pakistan is now emphasizing on the acquisition of power through alternate energy resources and planning to add 500 MW in the next 5 years through alternate sources, which is likely to attract significant investment in this sector.
Pakistan is the world's 8th biggest producer of coal and has an estimated 185 billion tonnes of coal reserves. Feasibility studies are also under way for producing of over 1,000 MW of energy through the use of solid waste and coal.
Saturday, April 25, 2009
PAKISTAN - THE REGIONAL GATEWAY FOR ENERGY
Pakistan with an ideal geographic and strategic location serves as a corridor for the international supply routes of energy. Being a regional power house, the country possess opportunities of setting up the oil and gas pipelines as well as electricity grids within the region and with other neighbouring energy rich countries such as Iran, Tajikistan and Turkmenistan.
Pakistan's energy requirements are increasing every year and to meet the rising demand of energy, the Government of Pakistan is currently focused on diversification of gas supplies, reconstruction of hydropower plants, construction of underground gas storage facilities, development of oil exploration & production, tapping of renewable energy resources, attracting foreign investment and privatisation of state-owned assets.
Pakistan is responding to the energy development challenge by pursuing a wide range of domestic and imported energy projects and in the year 2007 - 2008, the Oil, Gas and Energy industry has attracted Foreign Investment of about US$ 554 million.
Pakistan's energy requirements are increasing every year and to meet the rising demand of energy, the Government of Pakistan is currently focused on diversification of gas supplies, reconstruction of hydropower plants, construction of underground gas storage facilities, development of oil exploration & production, tapping of renewable energy resources, attracting foreign investment and privatisation of state-owned assets.
Pakistan is responding to the energy development challenge by pursuing a wide range of domestic and imported energy projects and in the year 2007 - 2008, the Oil, Gas and Energy industry has attracted Foreign Investment of about US$ 554 million.
Al-Naimi Says Saudi Oil Output Below Target; Stockpiles to Fall
By Christian Schmollinger and Shigeru Sato
April 25 (Bloomberg) -- Saudi Arabia, OPEC’s biggest oil exporter, is producing less crude than its target and global stockpiles are likely to decline, according to Oil Minister Ali al-Naimi.
The country is producing less than 8 million barrels of crude a day, al-Naimi told reporters today in Tokyo, where he is attending a meeting of Asian energy ministers. Stockpiles “will come down eventually,” he said.
U.S. stockpiles have climbed to the highest since September 1990 even as Saudi Arabia leads the Organization of Petroleum Exporting Countries’ efforts to implement a 4.2 million barrel a day reduction in oil output from the group’s September levels. The country is producing 7.79 million barrels a day, less than its target of 8.1 million barrels a day.
OPEC decided against any further output constraints at a March 15 meeting in Vienna on concern that a fourth cut since September risked increasing energy costs amid the global recession. The group will convene again there on May 28.
OPEC needs to monitor the global oil market carefully to determine if it is oversupplied, Qatari Oil Minister Abdullash bin Hamad al-Attiyah told reporters earlier in Tokyo today. The outcome of the group’s next meeting is “very hard to predict,” he said.
Secretary-General Abdalla El-Badri wants OPEC to fully implement supply cuts agreed last year before it discusses any further reductions, Dow Jones Newswires reported yesterday. Still, the group won’t hesitate to take further action if needed at its next meeting, the report cited El-Badri as saying.
Output Targets
OPEC isn’t formally obligated to reach its output targets before announcing new cuts. The group that supplies about 40 percent of the world’s crude oil has completed 83 percent of 4.2 million barrels a day of production curbs agreed last year, according to data last week from the organization.
OPEC’s output averaged 27.395 million barrels a day last month, down 345,000, or 1.2 percent, from February, according to the survey of oil companies, producers and analysts. The 11 OPEC members with quotas, all except Iraq, pumped 25.06 million barrels a day, 215,000 more than their target.
Benchmark oil prices on the New York Mercantile Exchange have slumped 65 percent from a record $147.27 a barrel on July 11 and closed at $51.55 yesterday.
Asked to comment of the on the current oil price, al-Naimi said “it would be nicer if it was higher.” Responding to a question whether crude at $50 a barrel was good for the global economy, the minister said, “Yes, that’s our contribution to the world economy.”
Finance chiefs from the Group of Seven yesterday predicted a “weak” economic recovery will start to take hold in coming months as evidence mounts that the worst of the recession is over. Two months ago the G-7 forecast the “severe downturn” would persist through most of this year.
To contact the reporter on this story: Christian Schmollinger in Tokyo at christian.s@bloomberg.net; Shigeru Sato in Tokyo at ssato10@bloomberg.net; Last Updated: April 25, 2009 08:43 EDT
April 25 (Bloomberg) -- Saudi Arabia, OPEC’s biggest oil exporter, is producing less crude than its target and global stockpiles are likely to decline, according to Oil Minister Ali al-Naimi.
The country is producing less than 8 million barrels of crude a day, al-Naimi told reporters today in Tokyo, where he is attending a meeting of Asian energy ministers. Stockpiles “will come down eventually,” he said.
U.S. stockpiles have climbed to the highest since September 1990 even as Saudi Arabia leads the Organization of Petroleum Exporting Countries’ efforts to implement a 4.2 million barrel a day reduction in oil output from the group’s September levels. The country is producing 7.79 million barrels a day, less than its target of 8.1 million barrels a day.
OPEC decided against any further output constraints at a March 15 meeting in Vienna on concern that a fourth cut since September risked increasing energy costs amid the global recession. The group will convene again there on May 28.
OPEC needs to monitor the global oil market carefully to determine if it is oversupplied, Qatari Oil Minister Abdullash bin Hamad al-Attiyah told reporters earlier in Tokyo today. The outcome of the group’s next meeting is “very hard to predict,” he said.
Secretary-General Abdalla El-Badri wants OPEC to fully implement supply cuts agreed last year before it discusses any further reductions, Dow Jones Newswires reported yesterday. Still, the group won’t hesitate to take further action if needed at its next meeting, the report cited El-Badri as saying.
Output Targets
OPEC isn’t formally obligated to reach its output targets before announcing new cuts. The group that supplies about 40 percent of the world’s crude oil has completed 83 percent of 4.2 million barrels a day of production curbs agreed last year, according to data last week from the organization.
OPEC’s output averaged 27.395 million barrels a day last month, down 345,000, or 1.2 percent, from February, according to the survey of oil companies, producers and analysts. The 11 OPEC members with quotas, all except Iraq, pumped 25.06 million barrels a day, 215,000 more than their target.
Benchmark oil prices on the New York Mercantile Exchange have slumped 65 percent from a record $147.27 a barrel on July 11 and closed at $51.55 yesterday.
Asked to comment of the on the current oil price, al-Naimi said “it would be nicer if it was higher.” Responding to a question whether crude at $50 a barrel was good for the global economy, the minister said, “Yes, that’s our contribution to the world economy.”
Finance chiefs from the Group of Seven yesterday predicted a “weak” economic recovery will start to take hold in coming months as evidence mounts that the worst of the recession is over. Two months ago the G-7 forecast the “severe downturn” would persist through most of this year.
To contact the reporter on this story: Christian Schmollinger in Tokyo at christian.s@bloomberg.net; Shigeru Sato in Tokyo at ssato10@bloomberg.net; Last Updated: April 25, 2009 08:43 EDT
[edit] Composition
The proportion of hydrocarbons in the mixture is highly variable and ranges from as much as 97% by weight in the lighter oils to as little as 50% in the heavier oils and bitumens.
The hydrocarbons in crude oil are mostly alkanes, cycloalkanes and various aromatic hydrocarbons while the other organic compounds contain nitrogen, oxygen and sulfur, and trace amounts of metals such as iron, nickel, copper and vanadium. The exact molecular composition varies widely from formation to formation but the proportion of chemical elements vary over fairly narrow limits as follows:[2]
Composition by weight
Element
Percent range
Carbon
83 to 87%
Hydrogen
10 to 14%
Nitrogen
0.1 to 2%
Oxygen
0.1 to 1.5%
Sulfur
0.5 to 6%
Metals
less than 1000 ppm
Four different types of hydrocarbon molecules appear in crude oil. The relative percentage of each varies from oil to oil, determining the properties of each oil.[3]
Composition by weight
Hydrocarbon
Average
Range
Paraffins
30%
15 to 60%
Naphthenes
49%
30 to 60%
Aromatics
15%
3 to 30%
Asphaltics
6%
remainder
Most of the world's oils are non-conventional.[4]
Crude oil varies greatly in appearance depending on its composition. It is usually black or dark brown (although it may be yellowish or even greenish). In the reservoir it is usually found in association with natural gas, which being lighter forms a gas cap over the petroleum, and saline water which, being heavier than most forms of crude oil, generally sinks beneath it. Crude oil may also be found in semi-solid form mixed with sand and water, as in the Athabasca oil sands in Canada, where it is usually referred to as crude bitumen. In Canada, bitumen is considered a sticky, tar-like form of crude oil which is so thick and heavy that it must be heated or diluted before it will flow.[5] Venezuela also has large amounts of oil in the Orinoco oil sands, although the hydrocarbons trapped in them are more fluid than in Canada and are usually called extra heavy oil. These oil sands resources are called non-conventional oil to distinguish them from oil which can be extracted using traditional oil well methods. Between them, Canada and Venezuela contain an estimated 3.6 trillion barrels (570×10^9 m3) of bitumen and extra-heavy oil, about twice the volume of the world's reserves of conventional oil.[6]
Petroleum is used mostly, by volume, for producing fuel oil and gasoline (petrol), both important "primary energy" sources.[7] 84% by volume of the hydrocarbons present in petroleum is converted into energy-rich fuels (petroleum-based fuels), including gasoline, diesel, jet, heating, and other fuel oils, and liquefied petroleum gas.[8] The lighter grades of crude oil produce the best yields of these products, but as the world's reserves of light and medium oil are depleted, oil refineries are increasingly having to process heavy oil and bitumen, and use more complex and expensive methods to produce the products required. Because heavier crude oils have too much carbon and not enough hydrogen, these processes generally involve removing carbon from or adding hydrogen to the molecules, and using fluid catalytic cracking to convert the longer, more complex molecules in the oil to the shorter, simpler ones in the fuels.
Due to its high energy density, easy transportability and relative abundance, oil has become the world's most important source of energy since the mid-1950s. Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics; the 16% not used for energy production is converted into these other materials.
Petroleum is found in porous rock formations in the upper strata of some areas of the Earth's crust. There is also petroleum in oil sands (tar sands). Known reserves of petroleum are typically estimated at around 190 km3 (1.2 trillion (short scale) barrels) without oil sands,[9] or 595 km3 (3.74 trillion barrels) with oil sands.[10] Consumption is currently around 84 million barrels (13.4×10^6 m3) per day, or 4.9 km3 per year. Because the energy return over energy invested (EROEI) ratio of oil is constantly falling (due to physical phenomena such as residual oil saturation, and the economic factor of rising marginal extraction costs), recoverable oil reserves are significantly less than total oil in place. At current consumption levels, and assuming that oil will be consumed only from reservoirs, known recoverable reserves would be gone around 2039, potentially leading to a global energy crisis. However, there are factors which may extend or reduce this estimate, including the rapidly increasing demand for petroleum in China, India, and other developing nations; new discoveries; energy conservation and use of alternative energy sources; and new economically viable exploitation of non-conventional oil sources.
The hydrocarbons in crude oil are mostly alkanes, cycloalkanes and various aromatic hydrocarbons while the other organic compounds contain nitrogen, oxygen and sulfur, and trace amounts of metals such as iron, nickel, copper and vanadium. The exact molecular composition varies widely from formation to formation but the proportion of chemical elements vary over fairly narrow limits as follows:[2]
Composition by weight
Element
Percent range
Carbon
83 to 87%
Hydrogen
10 to 14%
Nitrogen
0.1 to 2%
Oxygen
0.1 to 1.5%
Sulfur
0.5 to 6%
Metals
less than 1000 ppm
Four different types of hydrocarbon molecules appear in crude oil. The relative percentage of each varies from oil to oil, determining the properties of each oil.[3]
Composition by weight
Hydrocarbon
Average
Range
Paraffins
30%
15 to 60%
Naphthenes
49%
30 to 60%
Aromatics
15%
3 to 30%
Asphaltics
6%
remainder
Most of the world's oils are non-conventional.[4]
Crude oil varies greatly in appearance depending on its composition. It is usually black or dark brown (although it may be yellowish or even greenish). In the reservoir it is usually found in association with natural gas, which being lighter forms a gas cap over the petroleum, and saline water which, being heavier than most forms of crude oil, generally sinks beneath it. Crude oil may also be found in semi-solid form mixed with sand and water, as in the Athabasca oil sands in Canada, where it is usually referred to as crude bitumen. In Canada, bitumen is considered a sticky, tar-like form of crude oil which is so thick and heavy that it must be heated or diluted before it will flow.[5] Venezuela also has large amounts of oil in the Orinoco oil sands, although the hydrocarbons trapped in them are more fluid than in Canada and are usually called extra heavy oil. These oil sands resources are called non-conventional oil to distinguish them from oil which can be extracted using traditional oil well methods. Between them, Canada and Venezuela contain an estimated 3.6 trillion barrels (570×10^9 m3) of bitumen and extra-heavy oil, about twice the volume of the world's reserves of conventional oil.[6]
Petroleum is used mostly, by volume, for producing fuel oil and gasoline (petrol), both important "primary energy" sources.[7] 84% by volume of the hydrocarbons present in petroleum is converted into energy-rich fuels (petroleum-based fuels), including gasoline, diesel, jet, heating, and other fuel oils, and liquefied petroleum gas.[8] The lighter grades of crude oil produce the best yields of these products, but as the world's reserves of light and medium oil are depleted, oil refineries are increasingly having to process heavy oil and bitumen, and use more complex and expensive methods to produce the products required. Because heavier crude oils have too much carbon and not enough hydrogen, these processes generally involve removing carbon from or adding hydrogen to the molecules, and using fluid catalytic cracking to convert the longer, more complex molecules in the oil to the shorter, simpler ones in the fuels.
Due to its high energy density, easy transportability and relative abundance, oil has become the world's most important source of energy since the mid-1950s. Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics; the 16% not used for energy production is converted into these other materials.
Petroleum is found in porous rock formations in the upper strata of some areas of the Earth's crust. There is also petroleum in oil sands (tar sands). Known reserves of petroleum are typically estimated at around 190 km3 (1.2 trillion (short scale) barrels) without oil sands,[9] or 595 km3 (3.74 trillion barrels) with oil sands.[10] Consumption is currently around 84 million barrels (13.4×10^6 m3) per day, or 4.9 km3 per year. Because the energy return over energy invested (EROEI) ratio of oil is constantly falling (due to physical phenomena such as residual oil saturation, and the economic factor of rising marginal extraction costs), recoverable oil reserves are significantly less than total oil in place. At current consumption levels, and assuming that oil will be consumed only from reservoirs, known recoverable reserves would be gone around 2039, potentially leading to a global energy crisis. However, there are factors which may extend or reduce this estimate, including the rapidly increasing demand for petroleum in China, India, and other developing nations; new discoveries; energy conservation and use of alternative energy sources; and new economically viable exploitation of non-conventional oil sources.
Petroleum industry
Main article: Petroleum industry
NYMEX Light Sweet Crude prices 1994 to Mar 2008
2005 to Nov 2008
The petroleum industry is involved in the global processes of exploration, extraction, refining, transporting (often with oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category.
Petroleum is vital to many industries, and is of importance to the maintenance of industrialized civilization itself, and thus is critical concern to many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world at large consumes 30 billion barrels (4.8 km³) of oil per year, and the top oil consumers largely consist of developed nations. In fact, 24% of the oil consumed in 2004 went to the United States alone.[19] The production, distribution, refining, and retailing of petroleum taken as a whole represent the single largest industry in terms of dollar value on earth.
In the US, in the states of Arizona, California, Hawaii, Nevada, Oregon and Washington, the Western States Petroleum Association (WSPA) is responsible for producing, distributing, refining, transporting and marketing petroleum. This is non-profit trade association that was founded in 1907, and is the oldest petroleum trade association in the United States.[20]
NYMEX Light Sweet Crude prices 1994 to Mar 2008
2005 to Nov 2008
The petroleum industry is involved in the global processes of exploration, extraction, refining, transporting (often with oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category.
Petroleum is vital to many industries, and is of importance to the maintenance of industrialized civilization itself, and thus is critical concern to many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world at large consumes 30 billion barrels (4.8 km³) of oil per year, and the top oil consumers largely consist of developed nations. In fact, 24% of the oil consumed in 2004 went to the United States alone.[19] The production, distribution, refining, and retailing of petroleum taken as a whole represent the single largest industry in terms of dollar value on earth.
In the US, in the states of Arizona, California, Hawaii, Nevada, Oregon and Washington, the Western States Petroleum Association (WSPA) is responsible for producing, distributing, refining, transporting and marketing petroleum. This is non-profit trade association that was founded in 1907, and is the oldest petroleum trade association in the United States.[20]
Oil spills
Main article: Oil spill
Crude oil and refined fuel spills from tanker ship accidents have damaged natural ecosystems in Alaska, the Galapagos Islands, France and many other places.
The quantity of oil spilled during accidents has ranged from a few hundred tons to several hundred thousand tons (e.g., Atlantic Empress, Amoco Cadiz). Smaller spills have already proven to have a great impact on ecosystems, such as the Exxon Valdez oil spill
Oil spills at sea are generally much more damaging than those on land, since they can spread for hundreds of nautical miles in a thin oil slick which can cover beaches with a thin coating of oil. This can kill sea birds, mammals, shellfish and other organisms it coats. Oil spills on land are more readily containable if a makeshift earth dam can be rapidly bulldozed around the spill site before most of the oil escapes, and land animals can avoid the oil more easily.
Control of oil spills is difficult, requires ad hoc methods, and often a large amount of manpower (picture). The dropping of bombs and incendiary devices from aircraft on the Torrey Canyon wreck produced poor results;[50] modern techniques would include pumping the oil from the wreck, like in the Prestige oil spill or the Erika oil spill.[51]
Crude oil and refined fuel spills from tanker ship accidents have damaged natural ecosystems in Alaska, the Galapagos Islands, France and many other places.
The quantity of oil spilled during accidents has ranged from a few hundred tons to several hundred thousand tons (e.g., Atlantic Empress, Amoco Cadiz). Smaller spills have already proven to have a great impact on ecosystems, such as the Exxon Valdez oil spill
Oil spills at sea are generally much more damaging than those on land, since they can spread for hundreds of nautical miles in a thin oil slick which can cover beaches with a thin coating of oil. This can kill sea birds, mammals, shellfish and other organisms it coats. Oil spills on land are more readily containable if a makeshift earth dam can be rapidly bulldozed around the spill site before most of the oil escapes, and land animals can avoid the oil more easily.
Control of oil spills is difficult, requires ad hoc methods, and often a large amount of manpower (picture). The dropping of bombs and incendiary devices from aircraft on the Torrey Canyon wreck produced poor results;[50] modern techniques would include pumping the oil from the wreck, like in the Prestige oil spill or the Erika oil spill.[51]
Wednesday, April 22, 2009
bakersfield.
The oil industry abounds with colorfully coined brands, and those monikers were not chosen at random. There are stories, philosophies and deeper meanings behind many names.
By Erin WaldnerCalifornian staff writer
The California oil industry overflows with colorful company names. New Horizon Exploration Inc., Shoshone Oil Corp., Victory Oil Co., Coyote Oil Co. and Phoenix Energy Inc. are just a few.
There are vivid stories behind many oil company names.
Take Mission Oil Co. for example.
"It was named after the San Gabriel Mission," said the company's vice president, Terry English. "My father founded the company in 1958. As a boy, he grew up in that area. He went to church there. He went to school there. He baptized his oldest children there. It was always a focal point of his upbringing."
Then there's Vaquero Energy Co.
"Vaquero is a Mexican cowboy," said the company's founder and president, Ken Hunter. "I've always liked the cowboy way of life, the fact they take risks. It's sort of a rough-and-tumble world. I like the connotation of Vaquero."
What's in a name?
Ideally, a lot, according to Jay Jurisich, an official at Igor, a business naming and branding company in San Francisco. Jurisich said many new companies make the mistake of not spending enough time selecting a name.
"All businesses and industries are highly competitive," Jurisich said. "Anything you can do to get your company noticed ... is very valuable."
Aera Energy LLC didn't draw its name out of a hat.
Aera, a spinoff of CalResources and Mobil, was founded in June 1997. The company began its naming process the preceding spring.
"The real challenge is to come up with a name that you think reflects your company," said company spokeswoman Susan Hersberger.
That task fell to a design team of about 10 employees.
The company also hired a consultant, and employees from both companies were invited to submit name suggestions.
Hersberger said some parameters were set. The name needed to be short, simple, memorable, pronounceable and distinctive.
Hundreds of suggestions were submitted, the more likely of which were tested with employee focus groups.
Once the list was pared down to five to 10 names, the necessary legal and language checks were done. Hersberger said one potential name had a negative connotation in another language, so it was eliminated.
The final winner, of course, was Aera, which is an alternative spelling of the word "era." Hersberger said this denotes a period in history and is often associated with a major division in geologic time.
"That immediately caught our attention," she said.
They also liked that "aera" didn't have a meaning in modern English, so the new company could shape the definition of Aera Energy.
Hersberger said she didn't know how much money CalResources and Mobil spent on naming Aera. It's not unusual for major corporations to spend millions of dollars.
For small oil firms, selecting a name isn't as involved.
Tim Smale, president of Sequoia Exploration Inc., said he settled on his company's name mostly by default. When he incorporated, he had to give the state a list of possible names.
"Sequoia was actually third on my list," Smale said.
His first choice was Sierra, but it was already taken, which meant he couldn't use it.
Many oil companies have names that depict nature. Jurisich said the industry has spent a lot of money on advertising intended to show it cares about the environment.
Smale said he likes the mountains, so he wanted a mountain-type name. He also wanted a name that was fairly benign.
"Not everyone likes the oil industry. Maybe (Sequoia) goes down easier than some other names," he said.
Aspen Exploration Corp. was named for the Aspen leaf, according to the company's president, Robert Cohan. He didn't come up with the name, but he likes it.
"When people think of Aspen, they think of a nice place," he said.
Some oil company names substitute the word "energy" for "oil" or "petroleum."
"Even if it's not oil, it's still descriptive of the industry they're in. Companies want to appear broader than they are. Ten years from now, they could be doing solar energy or fuel cells," Jurisich said.
Some oil companies, such as Berry Petroleum Co., are named for their founders.
While Mission Oil Co. doesn't bear his father's name, English said he's never considered changing the company's moniker.
"People in the industry know the company and know my father. It has a history. He's an old-time independent, a wildcatter," English said.
If someone is starting a new oil company and is trying to come up with a name, Jurisich would give him or her the same advice he'd give anyone.
"Pick a strong, evocative name that stands out from the crowd and gives them a leg up in marketing and advertising," he said. "They need every advantage they can get."
By Erin WaldnerCalifornian staff writer
The California oil industry overflows with colorful company names. New Horizon Exploration Inc., Shoshone Oil Corp., Victory Oil Co., Coyote Oil Co. and Phoenix Energy Inc. are just a few.
There are vivid stories behind many oil company names.
Take Mission Oil Co. for example.
"It was named after the San Gabriel Mission," said the company's vice president, Terry English. "My father founded the company in 1958. As a boy, he grew up in that area. He went to church there. He went to school there. He baptized his oldest children there. It was always a focal point of his upbringing."
Then there's Vaquero Energy Co.
"Vaquero is a Mexican cowboy," said the company's founder and president, Ken Hunter. "I've always liked the cowboy way of life, the fact they take risks. It's sort of a rough-and-tumble world. I like the connotation of Vaquero."
What's in a name?
Ideally, a lot, according to Jay Jurisich, an official at Igor, a business naming and branding company in San Francisco. Jurisich said many new companies make the mistake of not spending enough time selecting a name.
"All businesses and industries are highly competitive," Jurisich said. "Anything you can do to get your company noticed ... is very valuable."
Aera Energy LLC didn't draw its name out of a hat.
Aera, a spinoff of CalResources and Mobil, was founded in June 1997. The company began its naming process the preceding spring.
"The real challenge is to come up with a name that you think reflects your company," said company spokeswoman Susan Hersberger.
That task fell to a design team of about 10 employees.
The company also hired a consultant, and employees from both companies were invited to submit name suggestions.
Hersberger said some parameters were set. The name needed to be short, simple, memorable, pronounceable and distinctive.
Hundreds of suggestions were submitted, the more likely of which were tested with employee focus groups.
Once the list was pared down to five to 10 names, the necessary legal and language checks were done. Hersberger said one potential name had a negative connotation in another language, so it was eliminated.
The final winner, of course, was Aera, which is an alternative spelling of the word "era." Hersberger said this denotes a period in history and is often associated with a major division in geologic time.
"That immediately caught our attention," she said.
They also liked that "aera" didn't have a meaning in modern English, so the new company could shape the definition of Aera Energy.
Hersberger said she didn't know how much money CalResources and Mobil spent on naming Aera. It's not unusual for major corporations to spend millions of dollars.
For small oil firms, selecting a name isn't as involved.
Tim Smale, president of Sequoia Exploration Inc., said he settled on his company's name mostly by default. When he incorporated, he had to give the state a list of possible names.
"Sequoia was actually third on my list," Smale said.
His first choice was Sierra, but it was already taken, which meant he couldn't use it.
Many oil companies have names that depict nature. Jurisich said the industry has spent a lot of money on advertising intended to show it cares about the environment.
Smale said he likes the mountains, so he wanted a mountain-type name. He also wanted a name that was fairly benign.
"Not everyone likes the oil industry. Maybe (Sequoia) goes down easier than some other names," he said.
Aspen Exploration Corp. was named for the Aspen leaf, according to the company's president, Robert Cohan. He didn't come up with the name, but he likes it.
"When people think of Aspen, they think of a nice place," he said.
Some oil company names substitute the word "energy" for "oil" or "petroleum."
"Even if it's not oil, it's still descriptive of the industry they're in. Companies want to appear broader than they are. Ten years from now, they could be doing solar energy or fuel cells," Jurisich said.
Some oil companies, such as Berry Petroleum Co., are named for their founders.
While Mission Oil Co. doesn't bear his father's name, English said he's never considered changing the company's moniker.
"People in the industry know the company and know my father. It has a history. He's an old-time independent, a wildcatter," English said.
If someone is starting a new oil company and is trying to come up with a name, Jurisich would give him or her the same advice he'd give anyone.
"Pick a strong, evocative name that stands out from the crowd and gives them a leg up in marketing and advertising," he said. "They need every advantage they can get."
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