1.
According to the text, how are oil companies planning to deal with the rise in production cost?
Rapid rise in production cost has prompted companies in the energy sector to look for innovative ways to cut costs. One such idea is to construct an entire gas-production plant above large floating vessels. Energy companies believe that these "ship-factories" will come at a lower cost in comparison with expensive land-based production plants.
This unusual idea of operating a fleet of floating liquefied natural gas vessels, or FLNGs, can potentially provide cheaper gas to Asian economies.
Exploration in oil and gas has taken producers deeper and farther into the oceans, and admittedly the resources of LNG are shrinking. Hence, the idea of a single floating facility that can move across multiple locations is certainly praiseworthy.
When a gas well is drilled, the gas is sent through pipelines under the sea to an onshore plant, where it is compressed and then loaded onto ships for distribution and consumption. In comparison, the ship-factories would perform this whole process at one place and thus save time and cost. However, the idea of an FLNG factory is currently in an experimental phase.
According to the text, how are oil companies planning to deal with the rise in production cost?
At what stage is the concept of ship-factories?
Which one of the following is more expensive?
This unusual idea of operating a fleet of floating liquefied natural gas vessels, or FLNGs, can potentially provide cheaper gas to Asian economies.
In the above sentence, what does the word operate mean?
Energy companies believe that these "ship-factories" will come at a lower cost in comparison with expensive land-based production plants.
In this sentence, what is the meaning of the word expensive?
Based on the information in the article, how can LNG prices be reduced?
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