Terms Beginning With 'h'

Hierarchical Deterministic Wallet (HD Wallet)

  • January 02, 2020
  • Team Kalkine

HD wallets or hierarchical deterministic wallet are those wallets that use a single twelve or eighteen-word seed phrase to produce the successive pairs of private and public keys in a crypto wallet.

What is XML (Extensible Markup Language)? XML (Extensible Markup Language) is a text-based markup language. It is derived from SGML or Standard Generalized Markup Language. XML tags, unlike HTML tags, detect the data and are used for storing and managing data.           What are the characteristics of XML? XML is extensible. It means that there is a possibility that you can build your self-descriptive tags/languages that fits your application. XML allows the user to store data irrespective of the way it is presented. This is one of the advantages XML has over HTML. World Wide Web Consortium developed XML and is available as an open standard. XML is used to store & transport data. XML tags are self-descriptive. The markup language is used to carry data. In HTML, we display data in a presentable way. Through XML, we can carry this data from one application to another. XML tags are self-defined. The language is platform and language independent. It means that whatever application you use like Java or through an oracle, there would be no impact on the XML page. Facilitates easy communication between two platforms. What are the Advantages of XML? Separate data from HTML (HyperText Markup Language) Simplifies data sharing Increases data availability XML simplifies platform change. For example, if you have a data on SQL server and want to import to oracle server, then it can be made possible through XML. An Example to explain XML A simple code to represent the above hierarchical structure in XML: //*{mandatory line to start xml and is called declaration}//* <?xml version= ”1.0” encoding = “ ISO-8859-1” ?>   <college> <class 1> <name> ABC</name> <roll> 01 </roll> </class 1> <class 2> <name> DEF </name> <roll> 02 </roll> </college> In this code, we have created our own tags like <college> <class> <name> and <roll>.  As highlighted in the diagram as well, there is a root element, and while writing an XML code, it is mandatory to have a root element. It should be noted that the tags used in the code are case sensitive. Hence, the opening and closing tags should be in the same case (upper or lower). Also, XML is dynamic in nature. How to Import an XML file into Excel? One can import XML files in an Excel workbook to make them more readable for humans. The BI tool, Power Query makes it easy to import an XML file and transform it as per the user’s requirements. Suppose you save the XML file mentioned above on your system as student.xml. To import the file, follow the steps mentioned below: Open excel and go to Data tab in the ribbon Click get data Select from the file Select From XML A window will open. Go to the folder where the file is saved and then click the button “Import”. In the next step, you would see that a navigator window open, and we can see a preview of data from the XML file in a table format. What is an XML map? XML maps are ways by which MS Excel (Excel) represents XML schemas within a workbook.  Excel uses maps using binding data from the XML file to cells and ranges on the worksheet. Through XML maps it is possible to export data from excel to XML. If there exists an XML map on the worksheet, the user can import data into map ant time. XML schemas describe the elements used in the XML document and can be used by the programmers to verify each item in the document. It defines an element, attributes, and data types. Through XML map, XML schema gets copied to the workbook to create map instead of referencing the schema as an external file. Using XML Maps, you can add and delete maps. Once the XML file and schema are imported in the Excel file, the user can add further details and make desired changes. The edited file can again be exported to XML. Where we develop XML code? To create and modify XML code quickly and effortlessly, we can use Microsoft XML Notepad. With this tool, the structure of the XML data is shown graphically in a tree structure. The interface presents two panes: One for the structure. One for the values. The user can add comments, attributes, elements, attributes, and text to the XML document by creating the tree structure in the left pane and entering values in corresponding text boxes. Applications that support XML import and export: RDBMS tools including IBM DB2 (pureXML), Microsoft SQL Server, Oracle Database and PostgreSQL. Machine learning tools such as R Studio, and Python.

Based on the classification scheme prepared by the largest member organization of oil and gas professionals worldwide, SPE (Society of Petroleum Engineers); Probable reserves are those unproved reserves that are calculated to be having at least 50 per cent probability of being recovered as per the estimation made using current geological and engineering data. Understanding Reserves: Broadly, reserves are classified into three main categories by SPE based on the certainty of recovery. The first category of reserves is Possible reserves, next is Proved reserves, and the last one is Probable reserves. These categories are used by various stakeholders to evaluate the total assets of a company which is also known as Fair Market Value. It is also used to forecast and plan. Reserve categorisation and determination of recovery volume from reservoirs is carried with the help of statistical modelling technique. Source: Kalkine Group Image   Quantitative measurement of risk associated with various type of reserve categories is required to understand the amount of risk which is involved in the exploration of the reserve. However, in most of the cases, reserve estimation is not based on the mathematical, probabilistic measurement technique; instead, it is calculated based on the deterministic measurement technique. Ideally, the results of both methods should be the same. What Probable reserve include: Probable reserves may include: Reserves which are confirmed by normal drilling technique and the subsurface conditions are not favourable to be categorized under the proved banner. Reserves which are proved to be productive by any of the techniques like well log characteristics but lacks in definitive tests that can show similar results like shown in a proved reservoir within close proximity. Incremental reserves that are accounted to infill drilling that could have been classified as proved if the closer legal arrangement had been made at the time of the estimate. Reserves that are accounted with enhanced recovery techniques due to the advance technology which make it favourable to explore the commercial volumes from the reservoir. Reserves that are left out from a pre-existing proved reservoir due to some geological condition like faulting or any other geological event. But the present situation proves the extent to be on the larger side than predicted earlier. Reserves that are accounted by to an exploration condition like workover, treatment, retreatment, change of equipment, or new process implementation procedures which may increase the probability of recoverable. Reserves which are incremental reserves in proved reservoirs where a second or advance level of interpretation of volumetric data indicates the presence of more reserves than can be classified as proved. They are commonly known as P2 reserves which is the sum of Proved and Probable reserves. Estimation of Reserves: Reserve estimate of a reservoir is carried out using various geological and engineering methods which are widely accepted in the oil & gas industry. The technique which is used for estimation is also backed up by the previous similar experience of reservoir conditions found at some other place. Original Oil in Place and Gas in place in the reservoir is estimated based on the results obtained by the analysis of results obtained from various techniques. For example, structure maps can be used to find subsurface reservoirs. Isopach maps can be used to know the volume of reserves. Other methods like coring, logging can be used to estimate the porosity, permeability and saturation of the rocks present in the reservoir.   Based on the original reservoir pressure conditions, estimates on recovery factor is determined to OOIP & OGIP. The recovery factor helps to estimate the ultimate recovery volume, commonly known as EUR. In a producing reservoir whose production rate started declining at a considerable rate, reserves are calculated based on declining curves or performance characteristics. For such specific cases where the reservoir is in producing stage, the estimates are based on the economic feasibility or the level of commercial production of reserves up to which a company can sustain. The volume of gas estimates is expressed as Sales gas which is a raw natural gas in which further procession & fractionation is required. Typically, it is expressed at a temperature of 60 degrees Fahrenheit (°F) and a pressure base of 14.73 pounds per square inch absolute (psia). Sales gas is the amount of gas which is left out after flaring, shrinkage, fuel usage and field separation.

What is proved reserves? As per the classification of reserves from the SPE (The Society of Petroleum Engineers), proved reserves are those reserves that are determined to have at least 90% likelihood of being recuperated as per the geological and engineering assessment under existing economic and operating conditions. What are the main reserve types? Extensively, reserves are organized into three primary classes by SPE (Society of Petroleum Engineers) depending on the likelihood to be recovered. Amongst the three main classifications of reserves, one is Possible reserves, another is Proved reserves, and the last one is Probable reserves. Specialists are using the above-stated classes in the assessment of a company which is also termed as Fair Market Value.      Kalkine Image Quantitative risk analysis involved in the exploration of a particular reservoir is necessary for proper investment planning, decision making and predicting future forecast. Usually, reserve estimation is based on a deterministic measurement technique and not on the probabilistic measurement, which consists of various mathematical calculations for risk assessment. Deterministic measurement techniques utilized for risk assessment will indicate that there is a high degree of confidence in the recovery of estimated reserves. On the other hand, if probabilistic techniques are being used, there should be at least 90% likelihood that the recovered amounts will be equal to or will exceed the estimated amount. Understanding Proved Reserves The reserves that are kept under the category of Proved reserves will have a presence confirmed by drilling & fluid contacts like gas-oil and/or oil-water contacts. The undrilled reservoir that can be made commercially active based on available geological and engineering data. Reserves in which commercial production can be made using technological improvements can also be included in this category. What are Proved Reserves Types? Based on the development stage at the site, proved reserves could be further classified into two main types that are Proved Developed and Proved Underdeveloped Reserves. Source: Kalkine Image Proved Developed: Proved Developed Reserves are those reserves which are expected to be recovered from the existing wells and installed facilities or if facilities have not been established, that would require a low expenditure to start the production. The reserves are expected to be recovered using existing facilities or recovery can be improved considering necessary equipment and spending minor costs. Proved Underdeveloped: Proved Underdeveloped Reserves are those reserves which are recuperated from new wells present in undrilled areas or from existing wells which require moderately more consumption. Undrilled acreages considered under Proved Underdeveloped reserves are limited to those drilling units which are in the proximity of an already producing site. Other undrilled locations can only be declared as underdeveloped where it can be proven with certainty that there is production continuity from the current productive formation. Estimation of Reserves Estimation of reserves is done on the basis of results obtained through various geological, geophysical, and engineering assessment methods. Various reservoir parameters like porosity, permeability, saturation, and recovery factor are determined. Original Oil in Place & Gas in Place volumes are calculated. Evaluation of EUR (Estimated Ultimate Recovery) is carried on the basis of calculated reservoir parameters which help analysts to understand the volume of reserves that can be recovered. The analysis helps in proper planning, projection and decision making. Gas volume estimation is expressed in Sales gas which is known as a raw natural gas in which further procession & fractionation is required. Typically, it is expressed at a temperature of 60 degrees Fahrenheit (°F) and a pressure base of 14.73 pounds per square inch absolute (psia). Sales gas is the amount of gas which is left out after flaring, shrinkage, fuel usage and field separation.

What is Monte Carlo Simulation? Monte Carlo Simulation is a computer-based mathematical method or technique used in risk analysis and aids in the decision-making process. The technique is employed in areas including engineering, finance, R&D, and energy. It shows the possible consequences of one’s decisions and also evaluates the effect of risk. Thus, the technique helps make improved decisions when there is uncertainty. Investment projects with significant project value need to be risk analysed before making any decision. The Monte Carlo method allows considering various cost estimation scenarios related to any project affecting the outcome. Evolution of Monte Carlo Simulation Monte Carlo simulation was first used around the year 1944. The technique has undergone many changes and evolved over the period. Initially, to use the method, a series of variables were generated to get the desired result. Choosing a large set of random numbers to make the simulation work was time-consuming, and with the advent of the computer, the problem was gradually solved. Monte Carlo Simulation method uses probability distribution to generate a model using a random or stochastic variable. A wide range of outcomes is generated using the probability distribution of input variables. To model variables such as uniform, normal, or triangular, different probability distributions are implemented. Monte Carlo Simulation can be used in determining or analysing risks in various stages of project management. The method can be useful in determining risk categories: The simulation can analyse different projects of similar or different investment values based on variables associated with the projects. Here project value, execution period, standard deviation values could be used as variables for modelling data. Estimation of risk associated with project cost exceeding the initial project value. Estimation of risk associated with the project implementation period exceeding the allocated period. Why has it gained so much ground? Monte Carlo Simulation provides a far better simulation model of associated risks. The simulation generates multiple outcome scenarios along with the probability of occurrence of each outcome. Deterministic Model (Source: Copyright © 2021 Kalkine Media Pty Ltd.) Stochastic Model (Source: Copyright © 2021 Kalkine Media Pty Ltd.) Explained below are the some of the key features that have made the technique popular: Efficient Monte Carlo method reduces complex models to a set of basic events and interactions when applied to physical systems. The technique can encode model behaviour through a set of rules that can be proficiently implemented on a computer. This will allow general models to be implemented and studied on a computer than the analytic methods. Monte Carlo Simulation’s complex algorithms can be broken into pieces and run at a different time or on different processors to save the computing time. Risk Analysis As mentioned above, Monte Carlo provides not only an outcome but also the probability of occurrence of that outcome. This is a unique feature that can be put to use during chemical or physical research works when a wide variety of variables are available. For e.g., using the method in subatomic research when the degree of variables like temperature, entropy, energy, velocity, and several other parameters are involved. The ongoing fusion reaction is gaining popularity worldwide. The risk associated with the projects is enormous as far as project financials and overall safety of the project is involved. Sensitivity Analysis Monte Carlo Simulation determines which variable in the input is going to impact the outcome by most. The analysts even can see which combination of data is impacting the result by what degree.

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