Sustainability is one of the most important performance measurements in this fast changing business environment, as climate change and customer satisfaction is becoming real issues that managers have to face. Not only does it reflect the impact the company has on the economy, environment and society but also communicates corporate responsibility and smart business practices to the relevant shareholders. The Johannesburg Stock Exchange Limited (JSE) is the first global stock exchange to compel listed companies to integrate sustainability reporting with their annual report in the form of an integrated report. This requirement came into effect on 1 March 2010. It will enable managers to assess their organisation’s ability to create and uphold sustainability over the short, medium and long terms. It also allows managers and stakeholders to evaluate their business from a holistic perspective to report on a wider context of how it creates value for their shareholders and customers. The GRI identified the global challenges regarding sustainability reporting and launched their first Sustainability Reporting Framework in 2000 to clearly and openly report on relevant sustainability issues. The GRI also provide Sector Supplements that focuses on sector specific performance measurements. The balanced scorecard which celebrated its 20th anniversary in 2012, has been proven to be one of the most influential business management strategies of the last 20 years. Adjustments can be made to the traditional BSC by using an effective social responsibility framework, such as the GRI, to provide a sustainable balanced scorecard. It will express long-term organisational strategies, both financial and non-financial that is linked to sustainability. The oil and gas industry is a multifaceted, global industry and a key player in the South African economy, which has a fundamental impact on safety, health, environmental and social issues. The research was performed based on all the JSE listed companies in this industry based on an observational, ex post facto and descriptive research methodology. The integrated reports for both 2011 and 2012 were obtained and compared against the G3.1 Oil and Gas Sector Supplement indicators. It was found that selected oil and gas companies include sustainability issues in their integrated reports with a focus on social aspects. The contribution of the study was the development of a Sustainable Balanced Scorecard for the oil and gas industry. / MCom (Management Accountancy), North-West University, Potchefstroom Campus, 2014

Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: The shortage of skilled labour in South Africa and also abroad is well documented and has been discussed and debated in various media and on various stages. For the construction industry, the only response is to increase remuneration in order to attract the required resources from a limited pool. At the completion of a project, these resources are returned to the open market until another project has been secured. The cycle of supply and demand then continues and project capital costs increase. Sasol is small player in a very large and fiercely competitive global petrochemical industry. Its globalisation drive focuses on the establishment on new petrochemical facilities based on its ground breaking Gas-to-Liquids technology. Naturally, this requires many skilled and experience people – both in Sasol’s unique production processes as well as people able to commission and start-up a pioneer plant in a remote location. Due to the fact that the labour pool available to Sasol is insufficient to supply in its needs and that Sasol’s capital expansion plan spans a period of more than 10 years, a long-term view on supplying the required labour should be taken. This includes estimating the demand and then training pro-actively in order to supply the right skills at the right time from internal resources. The objective of this study is to do exploratory research into estimating the manpower requirements from an owner perspective from the initiation of construction through to steady state operation of a new petrochemical facility. The research will culminate in a proposed spreadsheet model that can be used in the estimating process. / AFRIKAANSE OPSOMMING: Die tekort aan geskoolde arbeid in beide Suid Afrika en die internasionale mark is al by verskeie geleenthede en in vele media bespreek. Die gevolg van die tekort aan geskoolde arbeid is dat die lone wat deur die konstruksie industrie aan voornemende werkers aangebied moet word om hulle dienste te verseker, al hoër word. Met die voltooiing van ’n projek, keer die werkers dan weer terug na die beperkte arbeidspoel totdat ’n volgende werksgeleentheid aangebied word. Die siklus van aanbod en aanvraag herhaal homself en die koste van projekte verhoog. Sasol is ’n klein speler in die baie mededingende internasionale petrochemiese sektor. Sasol se globaliseringsambisies is geskoei op ’n model wat voorsiening maak vir die duplisering van sy kommersieel beproefde Gas-na-Vloeistof tegnologie soos bedryf in Suid Afrika. Uit die aard van die saak vereis so ’n strategie baie geskoolde arbeid – arbeid wat vertroud is met Sasol se gepatenteerde tegnologie sowel as arbeid wat kennis het van die bou en inbedryfstelling van nuwe aanlegte. Die huidige bronne van geskoolde arbeid tot Sasol se beskikking is onvoldoende vir sy huidige en ook toekomstige behoeftes. Sasol se beplande kapitaal projekte strek tot verby 2015 en daarom is ’n langtermyn oplossing noodsaaklik en ook geregverdig. Die langtermyn plan moet onder meer voorsiening maak vir ’n beraming van die behoefte en dan proaktiewe opleiding inisieer wat die regte tipe geskoolde arbeid op die gegewe tyd sal kan aflewer. Die oogmerk van die studie is om eksploratiewe navorsing te doen in die beraming van mannekrag behoeftes vir die toekomstige eienaar vanaf die inisiëring van konstruksie vir ’n nuwe petrochemiese aanleg tot by bestendige bedryf. Die navorsing sal beslag vind in ’n sigblad model wat as instrument gebruik kan word om die beraming van mannekrag behoeftes te vergemaklik.

National oil companies (NOCs) control over 80 percent of world oil reserves and over 50 percent of gas reserves and hold exclusive rights to exploration and development of oil and gas reserves within their home countries. Because of host government involvement and supervision, NOCs may also act as instruments of state, implementing government foreign and domestic policies such as wealth re-distribution through the provision of subsidised oil products, job creation, and economic development. Such activities can lead to restricted availability of funds for finding and developing reserves for future production and to inefficiencies in current production and distribution. This thesis assesses the geopolitical factors that influence the conduct, strategies and priorities of NOCs and how these may impact on the continuing security of energy supplies to countries which are members of the Organisation for Economic Co-operation and Development (OECD). It will focus on ten NOCs supplying oil to world markets and two which supply gas to the European market. The study will also review the activities and .scope for influence as state instruments of Sovereign Wealth Funds which have been established by states with NOCs, in particular, those which have earned substantial petro-dollar surpluses, during the period of high oil and gas prices of2006-2008. In an age of global interdependence between nations, specific objectives of this thesis are to consider the implications of anticipated growth in world demand for oil and gas supplies over the next 20 years, whether world production capacity is likely to grow to meet increases in world demand, the potential impact on world oil and gas supplies of the policies and practices of NOCs, in particular, the desire of host governments to require NOCs to follow non- commercial objectives, and the responses from OECD countries to threats to their energy security from potential restrictions on supplies.

A research report submitted to the Faculty of Humanities, University of the Witwatersrand, Johannesburg, in partial fulfilment of the requirements for the degree of Master of Arts(International Relations), 2017 / In the past decade, the United States’ oil and gas industry experienced an extraordinary boom, due to shale gas. Shale gas accounted for only 1.6% of total US natural gas production in 2000, 4.1% by 2005, and an astonishing 23.1% by 2010. This remarkable growth has spurred interest in exploring for shale gas resources elsewhere. The purpose of the study is how the rise of fracking in the USA has impacted its foreign policy towards climate change. An exploratory qualitative method, known as process-tracing was used, with the aim of providing evidence-based literature in order to explore the change in the USA’s domestic energy and climate policies; as well to see the change in its stance on climate change on the international platform. Some of the key concluding findings relate to the Obama Administration’s championing of the Clean Energy Act. / XL2018

Esta dissertação visa estudar a indústria do gás natural da Venezuela a partir da Teoria Marxista da Dependência (TMD). Mudanças estruturais acontecem nesse país desde o início do século XXI, e esse processo não pode ser entendido sem se observar o papel fundamental da energia. O termo energia refere-se, neste trabalho, ao petróleo e gás natural. O primeiro tem sido o responsável pela penetração do capital estrangeiro no país e o segundo foi historicamente tratado como subproduto da indústria petroleira. A principal mudança nessa perspectiva foi introduzida pelo atual processo político, que usa ambos os recursos como instrumento para superar a relação de subordinação aos países industrializados. Portanto, objetiva-se analisar, com base na TMD, se, dada uma ampliação da indústria do gás natural da Venezuela estarão presentes os elementos capazes de promover uma ruptura com a forma subordinada em que se inseriu o país na economia mundial. Entende-se essa ampliação como um projeto nacional que procura a diversificação da economia e a conquista do desenvolvimento, entendido nos termos expostos pela TMD. Para facilitar o uso da TMD, foram selecionados três de seus expoentes, a saber: Vânia Bambirra, Theotônio dos Santos, e Ruy Mauro Marini. No que concerne à indústria do gás natural, a mesma foi avaliada seguindo parâmetros estabelecidos no Programa de Massificação do Uso do Gás Natural da Petrobras (2004). Por fim, foram contrastados os segmentos da cadeia produtiva do gás avaliados com os parâmetros da TMD, permitindo, por um lado, elucidar o processo que contribuiu para o subdesenvolvimento no país, e, por outro, avaliar o potencial dos atuais planos da IGN para estimular a industrialização nacional e a integração regional. / This document aims to study the Venezuelan natural gas industry using the Marxist Dependency Theory (MDT). Structural changes have been occurring in this country since the early twenty-first century, and those transitions cannot be understood without observing the fundamental energys role. The term \"energy\" refers, in this research, to oil and natural gas. The first one has been responsible for the foreign capital penetration in the country and, the second has been historically treated only as an oil industry derivate. The main change in this perspective was motivated by the current political process, which uses both resources as a tool for overcoming the subordinated relationship with the industrialized countries. Therefore, the objective is to analyze, based on MDT, if an expansion of Venezuela\'s natural gas industry will change the subordinated Venezuelan role in the global economy. This expansion is understood as a \"national project\", which looks for economic diversification and achievement of development, understood in the MDTs terms. To make easier to use the MDT, three exponents was selected: Vania Bambirra, Theotônio dos Santos, and Ruy Mauro Marini. The assessing for the natural gas industry expansion follows the parameters stablished in the National Gasification Program of Petrobras (2004). Finally, the segments of the productive gas chain was contrasted with the MDT parameters, allowing to understand the process that contributed to the country underdevelopment and, evaluating the potential of current plans in natural gas industry for stimulating national industrialization and regional integration.

La thèse discute des conséquences des changements majeurs du modèle de la demande de gaz décrits précédemment. L´exigence de flexibilité à court terme a été l´une des principales caractéristiques de la demande de gaz pour la production d´électricité. Ainsi, la capacité de l´industrie du gaz à fournir des services flexibles à court terme a été valorisée par le biais du marché de l´électricité. Cela signifie une augmentation de la valeur économique des services permettant d´adopter une position attentiste vis-à-vis de la consommation avant toute prise de décision. Différents secteurs de l´industrie du gaz ont été affectés par les variations de la demande, c´est le cas de la production des champs de gaz, du stockage et des mécanismes d´importation du gaz qui ont été incités à la flexibilité. L´introduction des outils de flexibilité, qu’impliquent les variations de la demande, dépend directement des services de réseau. Par conséquent la concrétisation de la valeur économique de la flexibilité de l´industrie gazière dépend des services de réseau.Le réseau de transports de gaz est un élément-clé de l´industrie gazière portant sur deux types de flexibilités physiques: la mobilité et l´aptitude au stockage. Les propriétés physiques du gaz naturel permettent la flexibilité par la gestion des différentiels de pression. Les différentiels de pression contrôlent les mouvements de gaz. Le réseau est de loin le principal mécanisme de transport de gaz et donc un élément majeur de la filière du gaz permettant le commerce de cette matière première. Cependant, le réseau peut aussi être l´une des parties les plus couteuses de l´industrie gazière et, une fois les investissements réalisés ils ne sont ni remboursables, ni récupérables par un autre moyen car ils n'ont pas d’autres utilisations, ce sont les coûts irrécupérables. Malgré cela, la spécificité de le utilisation des actifs des réseaux évolue au cours du développement du réseau.L´intervention des réseaux de transport dans la prestation de services de flexibilité du gaz est une condition obligatoire de la flexibilité du système gazier. Premièrement parce que les services de réseau sont complémentaires de tout autre instrument de flexibilité tels que le stockage souterrain, les infrastructures GNL et le commerce de gaz. Deuxièmement, parce que les services du réseau de transport gazier, tel le que stock en conduite, peuvent également être compétitifs vis à vis d´autres instruments de flexibilité dégroupé.Par conséquent, la régulation du réseau doit prendre en compte l´impact à court et à long terme des règles d´incitation. Compte tenu du fait que le développement du réseau dépend des exigences de flux prévisibles, des variations importantes de la demande de gaz et les changements de flux qui en découlent auront un impact sur l´activité d´exploitation des réseaux gaziers. D´un côté le développement du réseau dépend de la prévision des besoins de flux, et de l´autre, la flexibilité des infrastructures du réseau conditionne nécessairement celle de l´utilisation. Par conséquent, les variations de la demande, responsable de l´accroissement des exigences de flexibilité ainsi que des variations des flux de gaz qui en découlent doivent avoir un impact sur l´exploitation du réseau de gaz et sur l´incitation aux investissements d’infrastructure. / This thesis discusses the consequences of the major changes in gas demand patterns. The requirement of short term flexibility has been one of the main features of electricity generation gas demand. As consequence, the capacity of gas industry to provide short term flexibility services has been valorized through electricity market. It means an increasing economic value to services allowing waiting and seeing before consumption decision. Different parts of the gas industry was impacted by the changes on demand, for instance gas fields productions, storage and gas importation mechanisms were incited to offer flexible provisions. The introduction of tools to provide flexibility required by demand depends on network services. It means the realization of the flexibility value of gas industry depends on gas network services. The gas transport network is the key part of gas industry, and it may provide two kinds of gas physical flexibility: mobility and storability. The physical properties of natural gas allow flexibility by means of pressure differential management. The change on pressures may compress natural gas and the pressures differences drive gas motions. The network has been, by far, the main mechanism to carry gas, thus an essential part of the gas industry chain to allow commodity trade. Network, however, may be one of the most expensive parts of gas industry, and, after the investment done, it becomes sunk costs. But the specificity of networks assets changes in the course of network development. The use of transport network in the provision of gas flexibility services is a necessary condition to provide flexibility in the gas system. First, because network services are complementary of any other flexibility tool, as underground storage, LNG infrastructures and gas trade. Second, because gas transport network services, as line-pack storage, may also be competitive to the others unbundled flexibility tools. Therefore, network regulation needs to take into account the short and the long term impact of the rules incentives. Given that network development depends on expected flow requirements, strong change on gas demand and the consequent changes on gas flows must impact gas network operation. On the one hand, network development depends on expected flow requirements, and on the other, provisions of flexibility depend necessarily on the flexible use of network infrastructures. Hence, changes on gas demand increasing flexibility requirements and the consequent changes on gas flow must impact gas network operation and must impact the incentive on infrastructures investment.

A seleção de projetos de investimento é uma das atividades essenciais no dia-a-dia das organizações, e, neste exercício de avaliação, é preciso lidar em geral com uma carga considerável de incerteza. Analisar apenas as características individuais dos projetos é insuficiente diante do impacto que seus aspectos relacionais pode causar nos resultados. Além disso, um fator adicional nesse processo de escolha é a carga informacional já disponível internamente, na forma de conhecimento e percepção de analistas e gestores. Mais ainda, o próprio conceito de valor neste caso depende da perspectiva de quem avalia. Motivado por estas questões, buscou-se neste trabalho elaborar uma proposta de avaliação da carteira de projetos de investimento logicamente estruturada e modular, adaptável a diversas realidades organizacionais possíveis. A montagem do procedimento otimizatório reuniu conceitos de métricas de risco e retorno de projetos, Teoria Moderna de Portfólio, Teoria da Utilidade, simulação de Monte Carlo e decomposição de Cholesky. Por fim, a utilidade da proposta foi testada via sua aplicação em amostra de projetos no segmento de óleo e gás. / The investment projects selection is one of the essential activities in day-to-day operation of companies, and in this evaluation exercise it is generally required to handle a considerable amount of uncertainty. Analysing only the individual characteristics of projects is insufficient considering the possible impact of their relational aspects in results. Furthermore an additional item in this selection process is the informational load already available internally in the form of knowledge and perception of analysts and managers. Moreover even the concept of value in this case depends on the perspective of who evaluates. Motivated by this issues, this study aimed to formulate a proposal for investment projects portfolio evaluation logically structured and modular, adaptable to various possible organizational realities. The conception of optimization procedure brought together concepts of risk and return project metrics, Modern Portfolio Theory, Utility Theory, Monte Carlo simulation and Cholesky decomposition. Finally the proposal utility was tested by its application in a sample of oil and gas projects.

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior / O estudo partiu do diálogo entre as políticas públicas de meio ambiente e o referencial teórico crítico da educação e da justiça ambiental. Ancorada na filosofia da práxis, uma categoria central do materialismo-histórico, busca ir além dos aspectos teóricos. A pesquisa tem o objetivo de contribuir para o entendimento e melhoria dos processos complexos e contraditórios de implementação da educação ambiental como condicionante de licença de operação e produção da indústria de petróleo e gás no Brasil. Tais projetos mitigatórios são conduzidos e monitorados pelo órgão ambiental, mas devem ser implementados e executados pelos próprios empreendedores que causam os impactos socioambientais nas localidades. Em contrapartida, projetos de educação ambiental crítica e participativa, desenvolvidos compulsoriamente no licenciamento offshore, estão voltados para os grupos socioambientais impactados. Preconizam o fortalecimento e a integração desses grupos diante do Estado e do próprio empresariado e devem estimular participação em processos decisórios da gestão ambiental local. A tese a ser demonstrada é a de que, neste campo de disputas pelo uso e gestão do território, os PEAs em sua práxis educativa e enquanto política pública no âmbito do licenciamento, constitui-se em um instrumento em potencial na construção de cidadania política. Na busca por investigar a efetividade desses PEAs, implementados na maior bacia petrolífera do país, a bacia de campos, a pesquisa faz primeiramente um estudo documental e posteriormente um estudo empírico com os atores sociais participantes dos projetos. A pesquisa documental revelou que existiam cinco PEAs desenvolvidos entre os anos de 2010 e 2012: o Projeto Pólen e o NEA-BC (Petrobras); o PEA ObservAção (PetroRio, antiga HRT); o PEA FOCO (Statoil) e o QUIPEA (Shell). A pesquisa empírica foi feita nos municípios de São Francisco de Itabapoana, São João da Barra, Armação dos Búzios e Cabo frio, contemplados com 80% dos projetos desenvolvidos na região e percorreu 17 localidades dos municípios e foram realizadas 52 entrevistas. Esta etapa da pesquisa traz as motivações acerca dos projetos, opiniões sobre o processo formativo, as transformações práticas vividas pelos atores a partir das vivências nos projetos e aspectos da participação desses atores sociais dentro e fora dos PEAs. 70% dos entrevistados trazem as crenças nos projetos devido às: propostas, objetivos e metodologias (discussões participativas, encontros de comunidades) e à equipe de executores (com os quais os atores têm uma relação de afeto e admiração); 28% abarcam as descrenças: lentidão e subjetividade dos resultados; o não entendimento acerca da origem dos projetos (mitigatórios, compesatórios, etc); conflito nas relações entre os quilombolas e os empresários; gastos com os projetos e não com a comunidade. Outras categorias surgem: remuneração/contratação; Obtenção de uma sede para o projeto; a excelência no processo formativo (onde alguns métodos devem ser repensados); a interação e a articulação entre os projetos. O estudo também revelou que os participantes passaram a participar de instâncias da gestão pública de seus territórios. As questões são apontadas para que esses projetos possam ser aperfeiçoados, mesmo diante de todas as contradições, tensões e conflitos que isso impõe em uma sociedade desigual, reduzindo a natureza, a mercadoria e a relações precificadas. / This study originated from the dialogue between public environmental policies and the critical theoretical education and environmental justice references. Anchored on the praxis philosophy, a central category of historical materialism, aimed to go beyond the theoretical aspects. The research also aimed to contribute to the understanding and improvement of the complex and contradictory processes regarding the implementation of environmental educational programs, which are one of the demands to obtain the environmental license required for oil and gas exploitation in Brazil. Mitigating projects such as the one cited above, are conducted and monitored by the environmental agency, and must be implemented and executed by the companies whose activies cause social and environmental impacts on identified social groups. On the other hand, the participatory environmental education projects, compulsorily developed for licensing offshore focused on the impacted social groups. They stimulate, as one goal, the strengthening and integration of these groups on the State and the business itself and should encourage participation in decision-making on the local environmental management level. The thesis to be demonstrated is that on this field of contest for the territory usage and its management, the PEAs in their educational praxis and as a public policy in the licensing scope, can be stated as a potential tool for the citizenship policy construction. With the purpose of investigating the effectiveness of PEAs, implemented in the largest oil basin of the country, the Campos basin, the first step of the present investigation was an extensive survey on documents and the second step was an empirical approach with selected social actors participating in the the projects. The documents survey revealed that there were five PEAs developed between 2010 and 2012 in Campos basin: the Pollen Project and the NEA-BC (Petrobras); PEA OBA (PetroRio); PEA FOCO (Statoil) and the QUIPEA (Shell). The empirical research has been done in the municipalities of San Francisco de Itabapoana, São João da Barra, Buzios and Cabo Frio, awarded 80% of the projects developed in the region. The field research included 17 locations in the municipalities were 52 interviews were conducted. 70% of respondents cited they believed in the projects due to the proposal itself, the objectives and the methodologies, including participatory discussions, community meetings and the team of performers, with which, the actors demonstrated a relationship of affection and admiration. About 28% approached the disbelief due to slow and subjectivity of results; lack of understanding about the nature of the projects (mitigation, compensation nature, etc); conflicts in relations between social actors (Maroons) and entrepreneurs; spending resources on the projects and not on the communitys needs. Other categories were rised: remuneration / contracting; headquarters needed for the project; excellence in the informative/training process; the interaction and coordination between the projects. The study also confirmed that participants increased their participation within the public administration bodies on their territories. The issues are highlighted as a contribution for the improvement of these projects improvement, regardless all the contradictions, tensions and conflicts imposed by an unequal society, reducing the goods and the nature priced relationships.

A significant drop in oil price in 2014 resulted in enormous pressure on marketing managers of international oilfield service companies to address new market expectations. In such competitive conditions, some marketing managers lack strategies to leverage profitability during downturns. The purpose of this multiple case study was to explore strategies that senior marketing managers of international oilfield service companies in the Middle East successfully used to enhance sales performance, revenues, and profits during periods of declining oil prices. Theory of market segmentation, targeting, and positioning formed the conceptual framework for this study. Data were collected through semistructured interviews of 5 senior marketing managers of international oilfield service companies throughout the Middle East. Data analysis was composed of organizing data, becoming familiar with the data, putting data in nodes, giving proper codes, interpreting the data, and presenting the results, which led to 5 primary themes including customers, relationship, differentiation, services, and prices. To increase reliability and reduce bias, triangulation was achieved by combining, comparing, and contrasting companies' annual reports and website contents with participants' information. Identifying the right strategies that lead to higher profitability is crucial for international oilfield companies. Developing dynamic segmentation strategies, targeting new market players, differentiating via innovation, and promoting reliable relationships increase the likelihood of grasping new opportunities. This study's implications for positive social change include having more sustainable and profitable firms contributing to prosperity of local communities, which leads to healthier economies and more stable societies.

The continuous rising of anthropogenic emission into the atmosphere as a consequence of industrial growth is becoming uncontrollable, which causes heating up the atmosphere and changes in global climate. Therefore, CO2 emission becomes a big problem and key issue in environmental concerns. There are several options discussed for reducing the amount of CO2 emitted into the atmosphere. CO2 sequestration is one of these options, which involves the capture of CO2 from hydrocarbon emission sources, e.g. power plants, the injection and storage of CO2 into deep geological formations, e.g. depleted oil reservoirs. The complexity in the structure of geological formations and the processes involved in this method necessitates the use of numerical simulations in revealing the potential problems, determining feasibility, storage capacity, and life span credibility. Field K having 32o API gravity oil in a carbonate formation from southeast Turkey was studied. Field K was put on production in 1982 and produced until 2006, which was very close to its economic lifetime. Thus, it was considered as a candidate for enhanced oil recovery and CO2 sequestration. Reservoir rock and fluid data was first interpreted with available well logging, core and drill stem test data. Monte Carlo simulation was used to evaluate the probable reserve that was 7 million STB, original oil in place (OOIP). The data were then merged into CMG/STARS simulator. History matching study was done with production data to verify the results of the simulator with field data. After obtaining a good match, the different scenarios were realized by using the simulator. From the results of simulation runs, it was realized that CO2 injection can be applied to increase oil recovery, but sequestering of high amount of CO2 was found out to be inappropriate for field K. Therefore, it was decided to focus on oil recovery while CO2 was sequestered within the reservoir. Oil recovery was about 23% of OOIP in 2006 for field K, it reached to 43 % of OOIP by injecting CO2 after defining production and injection scenarios, properly.