Terms Beginning With 'g'

Geophysical surveys

What are Geophysical surveys?

It’s the collection of Geophysical data in a systematic manner for space-borne study. Data is presented in a format that Geophysical surveys incorporate various types of geophysical methods to assess subsurface rocks' physical properties to determine the subsurface formations' geological and structural information. Different significant results like thickness, porosity, permeability, structure, depth, and mineralization overview can easily be analyzed by correctly processing and interpreting collected geophysical data. The method has a wide application in petroleum and mineral exploration.

Define the fundamental procedure of Geophysical Survey

A typical geophysical survey starts with data acquisition using highly advanced geophysical instruments, which are used to collect the data from a designated area of interest.

After collecting data is done, it undergoes rigorous processing with specially designed software to remove the unwanted data and enhance its quality, intended to give the best possible results.

The final step is interpreting data that involved highly skilled and experienced geologists and geophysicists to analyze and make interpretations of the processed data sets.

Every step of the procedure is an integral part of the complete process and depends on the previous step's results. If any of the steps go wrong, the final results will be inaccurate.

However, the choice of the use of the geophysical method depends on the scope of the study. The whole geophysical survey process can be broadly classified into three main subcategories, including Acquisition, Processing, and Interpretation.

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What are the types of Geophysical Survey?

There are numerous types of geophysical surveys that can be conducted from the air or on the Earth's surface to determine rocks' subsurface properties.

Airborne surveys involve radiometric, magnetic, electromagnetic or gravity surveys and are done in a grid pattern through Helicopters or light aircraft.

Whereas some ground based important surveys include Seismic, Gravity, Magnetic, and Resistivity Surveys, which are majorly used to explore oil & gas and other mineral deposits. Other methods like GPR, Magnetotellurics, Induced Polarization are also used in the industry for different applications and the study's scope.

Source: Copyright © 2021 Kalkine Media Pty Ltd.

Seismic Method:

The seismic method is the backbone of the O&G industry. It is widely used to explore subsurface deposits of Hydrocarbons. The entire array includes geophones (sensors), wires, and an energy source to create elastic waves that travel beneath the Earth's surface and get recorded on the geophone after reflecting or refracting. The recorded waves carry out the physical properties of the subsurface rocks. The data is recorded in the form of wiggly traces. This method is suitable for depth up to certain kilometres depending on the geological conditions of the area and provides the best resolution up to a particular kilometre. It is an active geophysical method.

Magnetic Method:

A magnetic method is widely used for the exploration of magnetic minerals from the subsurface. A specialized device called a Magnetometer is used to identify the variations in an area's natural magnetic field. The subsurface deposits of magnetic minerals cause the variation in the magnetic field. The instrument provides good resolutions for near-surface features and responds well to magnetic mineral deposits. It is a passive geophysical method.

Gravity Method:

The gravity method is mostly used to determine the subsurface structural features of an area. Gravimeters are used to determine the variations in gravity value at a local scale, caused by the variation in density of rocks present in that area. The deviation in actual gravity value from the theoretical value creates an anomaly and acts as the basis for identifying subsurface rock types. It is a passive geophysical method.

Resistivity Method:

It is an active geophysical method that uses an artificial energy source in the form of an electric current. The electric current is introduced into the subsurface with the help of electrodes, creating a potential difference in the ground. The voltage difference can be converted into apparent resistivity values to create the resistivity profile, providing information about soil type, composition, porosity and permeability. The method is extensively used for geological mapping, hydrological surveys and mineral exploration.

What is Target Market?  Target market is a category of people whom marketers focus to sell their products and services. Businesses use their Marketing strategies towards this specific target audience in order to create brand awareness and ultimately brand loyal consumers. It works similarly the way consumers are identified through geography, demographics, income etc.  Given the current status of economies in most of the countries, understanding the target audience is essential more than ever.  Marketers study and research to identify the target market while developing a marketing plan. Without having a specific target audience, marketers can lose sight of the end game and end up losing money and time. Especially, for the small businesses to compete with the larger ones, having a well-defined target market can be very useful.  Target market changes for each business depending upon its requirement. Some real estate developers may target homeowners, and others may target tenants. Some milk producers would be targeting stay-at-home-moms, while others target young kids to sell their products.  Target markets are generally niche markets and hold a strong connection for the businesses.  While the companies identify the target market to sell their products and services, it does not mean that they exclude the consumers apart from their specific criteria. In order to create brand awareness and sell more products, marketers also target an audience which is more likely to buy the product. The broader market is targeted to widen the scope of marketing.  Once the potential customer is identified, businesses can market their products and services in an affordable, efficient and effective manner.  How to identify your target market?  A lot many businesses still do not understand the importance of marketing and identifying their target audience. Eventually, they end up wasting time, money and resources on the consumers who are not keen on their product or services. Hence rather than focusing on effective marketing strategies on a specific audience, they end up targeting larger and unwanted audiences. To avoid it, marketers identify the potential buyer who has particular traits and characteristics which can connect to the product and services being offered.  Understanding your target audience is one step closer to effectively selling goods and services. All you need to know is who it appeals and who will eventually buy it.  Each consumer has its own mindset and choices; hence, not all products and services will apply to every customer. The businesses which understand the need for the target audience spend a reasonable amount of time and money to define and monitor its target market.  Once you identify your target market, it gets easier to draft the marketing strategy. As you understand what appeals to your audience, such as what kind of newspaper your audience read and which TV channel, they watch the most and which time slot is most-watched. If you are marketing on digital platforms, then the target market can be identified through various aspects. For instance, if you are a launching advertising campaign to sell your luxury spa services located at one place. You wouldn't spend thousands of dollars and target a million people. You would focus on the people who can afford the luxury spa services, whom you would want to get associated with, who are living in the vicinity. So, then you would place an ad in the local newspaper or a local luxury clothing magazine. Therefore, identifying your target market helps marketers effectively reach the potential buyer.  Sometimes companies conduct surveys and call in focus groups to identify what a consumer needs and if it matches with their product description.  How to categorise the target market?  It is easier to categorise your target market when you divide them into different segments. See if the segment has less competition, because it could yield a higher return on investment. Another essential feature is that the target market has to fall in line with the company's objective and its vision and mission.  Target market is generally categorised by age, location, income, and lifestyle. Apart from these, gender, education, marital status, income level, age, race, occupation, and geographic location are also included in identifying the target market.  Consumers who fall under these segments are more likely to purchase the same goods and services. For instance, a person with a higher income will buy coffee from Starbucks on the way to the office. It also has a connection with the brand image. He/she would not want to get associated with Dunkin' Donuts.  Marketers also consider psychographics, which are more personal characteristics of a customer, to summarise the target audience. A customer purchasing Adidas sports products will not have similar psychographics to the person buying a unique sports collection from luxury brand Jimmy Choo. The end purpose is identical, but the intention of choosing the brand and product is different.  Image: Kalkine Is it essential to stick to one niche?  While it is imperative to identify the niche target market to sell your goods and services effectively; it is also essential to understand that one can always target more than one target audience at a time. Marketers usually evaluate their target market once it's identified to get to the basics of marketing.  Businesses need to question themselves while evaluating their identified target market. See if there are enough people who fit the criteria. While you market your product to a specific audience, understand if the target audience needs it. If not, then your marketing efforts will go to waste. Instead, businesses can create a different marketing strategy to generate the need for their product. Understand what factors drive your target audience to make the purchase decision. Most importantly identify if they can afford the goods and services or not. Lastly, significant messaging can impact the target audience more remarkably, therefore determine if you can reach the target market with specific messaging and how accessible they are.

What is gross profit? Gross profit is the profit a firm makes after deducting cost of goods sold from the revenue. Since only cost incurred in production of goods or services are deducted from the revenues, it is called gross profit. Also referred to as gross income, it depicts a broader level of profitability of a business. Some firms would present cost of sales instead of cost of goods sold in the income statement. In such cases, gross profit will be revenue minus cost of sales. Cost of goods sold includes direct expenses incurred in the production of goods and services. Alternatively, gross profit is calculated after deducting direct costs incurred in the production of goods and service from the sales or revenue. Direct cost for a firm could be direct labour expenses, factory overhead, cost of raw material, storage costs etc. Under absorption costing used in financial reporting, the manufacturing costs incurred in the production of good or services are assigned to produced units. Because of this, the cost of goods sold also includes direct labour, direct material and factory overhead costs. Gross profit does not include costs such as selling costs, marketing costs, insurance, salaries. Or it does not include cost that are not directly associated with the production of goods and services. What is gross profit margin? Gross profit margin or gross margin is the percentage expression of gross profit relative to the revenue of the company. As a primary indicator of profitability, it is used extensively to assess the broader profitability of a firm. Gross profit margin of a firm is compared to the gross profit margin of other similar firms to assess the relative performance of companies. But it should not be compared with the companies in different businesses. Why is gross profit important? Gross profits exclude the direct costs associated with the production of goods and services; thus such costs largely have a positive relationship with the revenues. When the revenue of the company is increasing, the cost of goods sold would also increase since more cost elements of producing goods increase as more goods are produced to achieve higher revenue or sales. When cost of goods sold as a percentage of revenue is higher, the gross profits will be lower. Whereas a relatively lower percentage of cost of goods sold relative to revenue will translate into higher gross profits for a firm. Operating leverage If a firm has relatively higher gross profit margin compared to its peers, net income will grow faster than the rate of growth in revenue. Likewise, when revenues are falling, net income will fall even faster than the revenues. This is called Operating Leverage. At the time of recovery in a business cycle, the demand for goods and services picks up, and investors prefer companies with relatively higher gross profit margins and operating leverage to benefit to the increase in revenues, thus earnings. Similarly, during a contraction in business cycle, the demand for goods and services is likely to fall, and investors try limiting the exposure to the companies with high gross profit margin and operating leverage because proportionate fall earnings would be higher than fall revenues. Consumer-focused businesses For consumer goods businesses, the brand image, awareness and customer affection towards the brand are of paramount importance. The level of gross profits of such businesses depicts the ability of the firm to invest in brand and the investment bearing fruit. Investing in a brand means incurring costs related to marketing, advertising, selling, brand development, reach, marketing personnel, trade shows, sampling, customer surveys, consulting, packaging, discounts and promotions etc. When a consumer business does not have healthy gross profit margins or gross profits, it shows the inability of the firm to invest in brands to generate excess returns. Even if the company intends to invest in brands with low gross profit margin, the ultimate impact would be lower net income. Reliable metric for Acquisitions When large consumer goods companies like Pepsi, Nestle go shopping for companies with emerging products or brands in the market, they are likely to focus on businesses with high gross profit margins. It is because large consumer goods companies can well take care of expenses after the gross profits by the integrating of the sales and marketing channels of the acquired company with their existing sales and marketing channels that are proven. Pricing power and cost advantages Pricing power and cost advantages of a business depict the competitive advantages of a firm. Companies thrive when they have competitive advantages and continuously seek to achieve and improve competitive advantages. Gross margins could also depict whether the firm has pricing power or cost advantage. Pricing power means when a business can increase the price of goods and service without losing market share, and this could be seen when the firm has solid brand image and high conviction for the products among customers. Businesses with pricing power could increase the price of end product, while cost of goods sold may not increase at the same pace, thus there will be higher gross profit margins since costs of goods sold has not risen at a similar intensity compared to revenues. Similarly, businesses with cost advantages have the ability to keep the cost of production lower irrespective of increase in volumes sold or revenues, therefore improving margins as cost-base is lower while top-line is rising. Such cost advantages could be developed with economies of scale, bargaining power with suppliers, intellectual property, technology, labour productivity etc. Difference between gross profit and net Profit? Net profit or net income is the income earned by the businesses after incurring all expenses, including taxes, depreciation and amortisation, marketing and selling, general and administrative expenses. Whereas gross profit or gross income is the income of the firm after deducting fixed and variable costs incurred in the production from revenues. It depicts a broader level of profitability of a firm. Net profit of the company also includes non-operating income of a firm such as interest on cash held at bank, gain on sale of assets etc. In contrast, gross profit only includes income of a firm derived from primary operating activity.

What are Public Relations?  Public Relations (PR) is defined as a calculated mode of disclosure to build and enjoy a healthy reputation in the eyes of customers and the public. Many organisations, have adopted Public Relations as an essential method to develop their brand image. PR uses different unpaid or earned ways such as old-fashioned media, digital media, or personal engagements to create a positive standing of the Company. PR is more about storytelling than direct advertising of products and services. The ultimate goal is the same, but the ways are different. Helen Rosen Woodward, a famous name in the world of advertising and remembered as the first female advertising executive in the US, defined PR in the shortest, best possible sentence: Image: Kalkine   With every company in the corner, trying to create brand awareness and build a sustainable image, PR has become an enormous need in the world of marketing to stand out from the crowd. No company in today’s evolving scenario backed by uncertainty can survive without building trust with its customers. Building a brand is a long-term process of creating brand loyal consumers. Through PR companies build their reputation via non-paid or earned methods PR is all about persuasion. It is a bridge between the company and the media houses and ultimately the masses. Big companies usually have an in-house PR team, whereas small organisations mainly outsource PR work. The motive of having a PR team is that no information about the organisation or its product/service reaches the customer without a scan through PR. PR is about convincing your target audience, influencing them to promote your product or services and ultimately resulting in a purchase. It is not a direct promotion like marketing. Public relations are a supportive method for marketing. If done effectively, companies can achieve results like more sales and higher revenue, drive the market demand for the company’s output, and alter the state of the company's condition and impact its awareness. Effective public relation campaigns can do wonders as it builds brand credibility.  Image: Kalkine   Quick history:  Public relations reference goes back to the early 20th century. The concept has evolved extensively since then. Two main aspects of PR are press agentry and publicity, though current PR is much more than this, they still hold importance. Today’s PR emphasises on engagement and relationship building with the media.    Various tools that PR uses?  Writing and disseminating press releases Speech writing for the company spokesperson  Creating a monthly and quarterly agenda to meet the objective.  Writing small pitch notes to the media in order to persuade them to cover the company or product/ services Organise company spokesperson and media meetings to build and enhance relationships Personal networking with the media  Content creation for blog or authored articles to be published in media  Creating an effective crisis strategy    What is the purpose and role of Public Relations?  Most companies have understood the importance and differentiation between marketing and public relations. Organisations now consider PR as an essential tool to overall build a positive image and increase sales. Apart from having an internal PR source, companies also hire external PR agencies. The primary purpose of the PR is to understand the company's objectives and vision & mission and communicate the information on behalf of the company to news media houses in the most effective manner.  The ways and means to get the information published in the media could be different and may be dependent upon the type of firm and industry the company belongs. In today’s digital landscape, the news cycle and news life are measured in the second rather than days. This system has evolved increasingly since the birth of the internet and has become more challenging for the PR team to control the flow of information. Earlier a simple press release or press conference would meet most of the objective, now with an increase in media houses and the endless churn of content, PR has to deploy a multitude of strategies and tactics to meet the bottom-line business goal.  Image: Kalkine Let us glance through a few fundamental roles of PR:  Media relations: PR requires developing a trust, reliability and credibility with media houses to get the stories and content published. PR strengthens its ties with the news media industry to communicate the company’s information effectively. The activities under this head may include arranging press conferences for new product launch, annual meetings, management changes etc. News monitoring: Today, content is not just published in newspapers or magazines, but it also appears on TV, radio, internet, social media etc. PR then uses various media monitoring tools to keep the tab on company information being published anywhere in the world. They also analyse and study competitor companies' media coverages to understand their standing in terms of news share and change the PR strategies, if needed, to meet the goal and get ahead of competitors.  Brand building: PR, through a series of favourable communication, builds a brand image not just in the eyes of consumers but also media. PR extends its full support to the marketing team in order to achieve a holistic result. Crisis management: It takes years to build an image, but a few negative articles in the media can destroy it in seconds. Hence effectively managing crises that threaten company or product image and reduce the damage is also one crucial role of PR.  Corporate social responsibility: Another critical aspect while maintaining a strong image is building goodwill in society. Through philanthropic work, social programs, CSR events PR bring out a noble side of businesses.  How to measure PR effectiveness and value?  As per standard tool, a PR activity or campaign is evaluated through qualitative and quantitative measures. There are various software’s available in the market, which gives a precise analysis output of PR coverage in the media. Examples of Few Tools: Website Traffic Market Surveys Media Monitoring Whereas the value of PR is decided upon the advertising space value of the publication. The evaluation is conducted on various aspects such as - if the company/product name is in the headline, how much space it is occupying in the printed media if the company/ product image is used if the brand logo is visible in the picture. There are many such factors which are considered while evaluating printed news of the organisation. If it's in television media then the duration of the report, visuals, brand name mention such factors are considered and then compared it to the advertising cost of that channel to measure the value of PR. 

Define Upstream In the oil & gas sector, all the activities which are related to exploration and production of oil and natural gas are termed as Upstream activities. The operations of Oil & Gas Industry include searching for subsurface O&G deposits to drill wells for production and then transporting the produced material to refineries to convert it to a usable form and finally make it available for end-users. The whole Oil & Gas process can be classified into three main categories which are known as Upstream, Midstream and Downstream. Image Source © Kalkine Group Upstream Process Upstream is referred to as “E&P” which means Exploration & Production. Exploration involves all the activities that are involved in search of specific subsurface areas where a petroleum reservoir is located. Whereas production involves all the processes involved in bringing the found subsurface deposit of oil & natural gas to the surface using drilling techniques.  The upstream operations consist of Acquisition, Exploration, Appraisal, Development, Production and Abandonment Image Source © Kalkine Group Acquisition The acquisition consists of various activities starting from the purchase of license blocks and searching for O&G deposits using multiple sophisticated techniques. Acquisition on acreage can be made by open tendering either by direct negotiation or by the farm-in process into an existing block.  Exploration After the acquisition of the O&G block, various extensive surveys like gravity, magnetic, seismic are conducted to delineate the subsurface deposits of hydrocarbon. The primary step in the exploration phase is Basin Assessment which is carried out to study the area of interest. An exploratory well is drilled to assess the geological details of that area. The companies use advance modelling techniques to prepare realistic basin models and to study the basin evolution. Based on available geological and geophysical survey data and results of the analysis made on that data, a decision is made either to move further with the lease or not. The fundamental objective of this phase is to evaluate the risk and to evaluate the volume of hydrocarbons present in the reservoir. Appraisal The main objective of appraisal stage is to assess the potential and extent of reservoir better. After completion of the exploratory phase, the reservoir engineers and geologists start planning appraisal activities. More wells are drilled to reduce the uncertainty of the evaluated volume of hydrocarbon. Expected Reservoir performance is evaluated and the production forecast for the field is prepared. Development After the completion of the Appraisal phase, the economic presence of hydrocarbon is confirmed or denied. If the field contains commercial deposits of hydrocarbon, a Field Development Plan (FDP) is prepared for the phased development of the field. The objective is to deplete the reservoir in most technically significant, safest end economical manner to get optimum Return on Investment (ROI). Appropriate locations for drilling various wells are drawn based on economics & survey results to start the production in a full-fledged manner. A proper assessment for LNG site is also conducted, which requires the construction of large scale export-import, storage and transportation facilities. Production After the completion of FDP, the field is developed, multiple wells are drilled, and production starts. The field starts producing from wells in a full-fledged manner. It is the first stage in the life-cycle of a field when the extracted hydrocarbon gives the first revenue from selling the O&G. When the revenue exceeds the investment that the company made during the initial phases, the company starts getting profit. This stage can last up to 45 years, depending on the potential of field and easiness to explore the reserves. After due course of time, the rate of production starts deteriorating due to the decline in reservoir pressure. Special EOR (Enhanced Oil Recovery) techniques like steam injection, water flooding is used to regain again the declined pressure of the reservoir which is commonly known as "Maintenance" phase to enhance the production rate. Finally, after producing the commercial hydrocarbons, the well is shut and abandoned.  Abandonment The gradual decrease in production rates due to the decline in reservoir pressure leads to non-economic recovery of reserves from the reservoir. When the field reaches its economic limit, the company decides to stop production from that field and abandon the operations from there. The producing wells are plugged & abandoned (P&A). The objective is to protect the future commercial zones and near freshwater zones from contamination.  Decommissioning of previously installed production facilities is done as they are no longer economical. The land under the facility is reconditioned, and environmental restoration is carried out.

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