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How Video Surveillance Is Transforming the Oil Industry

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How Video Surveillance Is Transforming the Oil Industry

The oil industry is a complicated sector prone to hazards affecting assets and human safety. But thanks to downhole inspection cameras, people working on oil wells can see real-time videos and images of the environment surrounding oil wells. This is important, considering sending humans down there can be risky. The cameras put eyes underground, helping operators make important decisions. Take a look at how surveillance equipment is transforming the oil industry.

Improved Accuracy

One of the main reasons operators prefer a downwell camera is because it’s accurate. The cameras provide high-quality images, allowing for accurate monitoring of the drilling process. This gives the operators useful insights into what’s happening in the oil well. It also eliminates the need for assumptions or guesswork, allows accurate decision-making, and leads to successful drilling operations.

Save Time and Money

These cameras enable operators to examine oil wells in a safe and non-invasive way. This saves valuable time because there’s no need to send a human down there to check on the well. It also saves money because a camera is likely to cause less disturbance to the surrounding area than a human. Considering that drilling oil is such an expensive venture, part of running such an operation is keeping expenses down. And if you want to have an easy time balancing your books, it’s best to consider all ways to keep expenses down.

Recording and Saving Data

As mentioned, these cameras have evolved and can now capture high-resolution videos and images. The high-quality sensors and lenses don’t just capture detailed images but also record and save that data. That means anytime the operators want to review that information, they simply retrieve the data from storage and go through the recording.

Enhanced Safety

According to data from the National Institute for Occupational Safety and Health (NIOSH), 69 people were fatally injured in 2017 in the oil and gas extraction industry. This just shows how risky this job is. Traditionally, operators would have to use pipes that workers penetrated to inspect oil wells. Surveillance cameras are much safer because even if they are damaged, they can’t compare to the loss of lives. These cameras have reduced the risk of accidents and injuries, enhancing overall safety in the oil industry.

Allow for Easier Inspection

These surveillance cameras are also used to inspect oil wells and the surrounding areas for debris, cracks, and corrosion. Identifying such problems early allows operators to fix them immediately before they worsen and lead to major problems.

Increased Operations Efficiency

When looking for ways to increase efficiency at work, incorporating new tech can help. These cameras assess the well conditions and allow the operators to plan for the necessary interventions or well shut downs. This leads to enhanced maintenance schedules, reduced downtime, and ultimately improved productivity.

Using surveillance cameras has greatly improved data collection in the oil industry. Through capturing quality and accurate images, operators now have precise information about oil wells, allowing for better decision-making and optimized drilling operations.

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Exploring the World of Mobile Houses: Advantages and Disadvantages

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Mobile Houses

Mobile houses are also called integrated houses or detachable houses. Mobile house is a new type of building. It is a living room that can be easily assembled and moved. For example, it can be towed behind a car. It has the function of looking like a trailer and being a living room inside.

Versatile Applications of Integrated Houses in Various Sectors

At present, integrated houses in my country are mostly used for temporary offices, dormitories, transportation, water conservancy, oil, natural gas and other large-scale field exploration and field operations at construction sites; temporary housing for large-scale sports activities, exhibitions, etc.; leisure villas and holiday homes in tourist areas ; post-disaster turnover housing and military areas; various clubs and low-rise residential buildings, etc. 

Future Of Mobile Houses

According to its application fields and product characteristics, integrated houses can be divided into two categories: mobile houses and integrated residences. The emergence of integrated houses is a revolutionary leap in architectural design concepts. It is conceivable that in the future, construction sites will no longer be filled with dust and roaring machines. The process of building a house is just to place factory-made building modules in a prefabricated structure like building blocks. This will bring huge changes to the construction industry.

Advantages of mobile homes

Cheaper in Cost:

A mobile home or prefabricated home is a type of prefabricated housing that can be hauled from a manufacturing plant to a residential base. Today, most mobile homes are used as permanent homes in a fixed location. Due to year-round manufacturing and the use of mass production techniques, such homes are relatively cheap to build.

Features:

Large mobile homes may contain more than seven rooms. Most mobile homes are sold with carpet, drapes, and appliances included. These homes are usually towed from one place to another by moving companies. Many countries impose width restrictions on vehicles traveling on public roads. Therefore, some mobile homes have sliding or folding side walls to reduce the width of the home when transported; other homes are transported in parts and then assembled after arriving at the homestead.

Placement Options:

Traditionally, mobile homes are placed on leased plots in mobile home parks, where water, electricity, postal services and other services are all available. However, there are now many mobile homes placed on individual lots. These homes can be installed on a permanent foundation or anchored to the ground with cables or steel straps.

Sustainability:

The mobile integrated house has the advantages of high protection, long service life, and can be reused many times. Moreover, its price is much lower than that of ordinary houses. Its assembly period is very short, and it usually takes a skilled person one or two days. In a short period of time, an integrated house can be built, which can also be equipped with water, electricity and gas. It does not produce a large amount of construction waste during the assembly process, and as long as the components are not damaged when folded and assembled, it can be recycled multiple times. There are so many mobile homes, and it can be predicted that they will become a new type of housing to replace traditional housing in the future.

Disadvantages Of Mobile Homes

Inadequate Insulation:

Poor heat insulation. The thermal insulation effect is not good. It’s cold in winter and hot in summer.

Sound Insulation:

The sound insulation effect is poor, making it difficult to have a quiet environment.

low durability:

Prefabricated houses have low durability and are easily damaged. Prefabricated houses are temporary buildings that the homeowner needs to use as temporary office space, accommodation, and front room.

Insights from Legal Experts on Mobile Home Living

According to American legal professionals, residing in cities with robust rental laws is crucial for mobile home owners. These laws serve to prevent landowners from arbitrarily increasing rents, thereby alleviating the financial burden on residents and ensuring a more sustainable living situation. In areas where legal protections are strong and landowners are cooperative, mobile homes represent a viable housing solution, particularly for low-income families. By providing affordable and stable accommodation options, mobile homes contribute to improving the quality of life for individuals and families facing economic challenges.

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What is the Net Fixed Assets Formula?

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Fixed Assets Formula

Fixed assets are a specific section of the balance sheet. This is an essential concept in terms of financial analysis since it will make it possible to determine numerous ratios and indicators, including working capital. We will answer the questions: what are fixed assets? How to calculate it? What is its use?

What are fixed assets?

Fixed assets include all assets intended to be kept in the long term by a company and which will generate future economic benefits in return. They can take one of the following types:

  • Tangible fixed asset: non-monetary asset having a physical substance such as industrial equipment, tools, transport equipment, furniture, installations and fixtures;
  • Intangible fixed asset: non-monetary asset without physical substance. This mainly concerns goodwill, lease rights, research and development costs, software, websites, trademarks and patents;
  • Financial fixed asset: monetary asset representing a financial participation ( shares, bonds ), a loan (staff loan, loan to related entities) or a security deposit.

Unlike circulating assets, fixed assets are not destroyed by exploitation upon first use. Its loss of value (due to its use or technical obsolescence) is noted through amortization and depreciation.

Fixed assets must be financed by permanent capital. This is an important point for ensuring the financial balance of a company’s financing structure.

How to calculate fixed assets?

The gross fixed assets of a company are made up of the sum of the input values ​​of each asset making up its assets (we speak of acquisition cost). It is calculated from the balance sheet.

Gross fixed assets = tangible assets + intangible assets + financial assets

The fixed asset can also be calculated for its net amount, in order to take into account the use of depreciable goods and their wear or obsolescence.

Net fixed assets = gross fixed assets – depreciation of tangible and intangible assets – depreciation of fixed assets

What is the use of the fixed asset?

Fixed assets are a concept that must be put into perspective taking into account the type of activity carried out. Indeed, in production companies, fixed assets represent a significant part of total assets whereas in service companies (IT service providers for example), they will not be significant. Furthermore, in holding companies, the item of financial assets will occupy an important place.

The usefulness of calculating a fixed asset lies elsewhere, and more particularly in determining the overall net working capital. It represents an intermediate step in the calculation of this essential financial indicator highlighting the balance (or not) of the financial structure of a company. In summary, it will be necessary to ensure that the fixed assets are financed at least by permanent capital (we are talking about sustainable resources) such as capital contributions, reserves, medium and long-term bank loans. The surplus eventually generated will make it possible to finance the working capital requirement  then the net cash flow.

Financial ratios calculated with fixed assets

Finally, fixed assets are data used in many financial ratios called structural ratios. Here are the main ones.

  • Wear rate  = net fixed assets / gross fixed assets

This ratio measures the degree of wear of the company’s industrial tools. The closer it is to 1, the more recent it is. Conversely, the closer it gets to 0, the older the productive system becomes. This allows us to give an indication of the horizon for their renewal.

  • Financing of fixed assets = permanent capital / (gross fixed assets – depreciation)

This ratio highlights the rate of coverage of fixed assets by the sustainable resources available to the company. It should be at least equal to 1. This concept is close to that of working capital and makes it possible to check the financial balance of investments.

  • Capital intensity  = tangible, intangible or financial assets / total assets

This ratio provides information on the importance of the “fixed assets” item in the balance sheet. As we mentioned above, the results must be nuanced and handled with caution since their consistency with the standard depends on the type of activity carried out by the company.

Example of fixed asset calculation

Consider the following balance sheet:

Active Raw To Depreciate Net Passive
Tangible assets 20,000 10,000 10,000 Capital
Intangible assets 10,000 1,000 9,000 Reserves
Financial assets 5,000 0 5,000 Financial debts
Stocks 15,000 0 15,000 Payables
Receivables 80,000 30,000 50,000 Tax debts
Availability 50,000 0 50,000 Social debts
Total 139,000 139,000 Total

Gross fixed assets are the total value of all fixed assets before depreciation or adjustments. In this case, the gross fixed assets would be the sum of the raw values of tangible assets, intangible assets, and financial assets:

Gross Fixed Assets = Tangible assets (Raw) + Intangible assets (Raw) + Financial assets (Raw)

= $20,000 + $10,000 + $5,000

= $35,000

Net fixed assets are the total value of fixed assets after accounting for depreciation or adjustments. In this case, the net fixed assets would be the sum of the net values of tangible assets, intangible assets, and financial assets:

Net Fixed Assets = Tangible assets (Net) + Intangible assets (Net) + Financial assets (Net)

= $10,000 + $9,000 + $5,000

= $24,000

Conclusion:

Fixed assets are data resulting from the financial analysis of the balance sheet. In particular, it makes it possible to calculate the working capital of a company in order to check whether the financial structure of its investments is healthy and balanced.

FAQs

What are the net fixed assets?

These are, for example, production equipment, computers, furniture, etc. These are materials, equipment, buildings whose value decreases with use.

How to calculate gross fixed assets?

The gross fixed assets of a company are made up of the sum of the input values ​​of each asset making up its assets (we speak of acquisition cost). It is calculated from the balance sheet.

How to calculate the depreciation of fixed assets?

When linear depreciation is used, the depreciation rate is obtained very quickly:

  • Linear depreciation rate = 1 / Actual duration of use (or tax-admissible duration of use)
  • Linear depreciation annuity = (Gross value – Resale value) × Linear depreciation rate.

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What is the difference between revenue and profit?

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What is the difference between revenue and profit?

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difference between revenue and profit

Understand the difference between revenue and profit. Revenue represents the total income generated by a business, while profit denotes the remaining earnings after subtracting all expenses.

Still many people are confused between revenue and profit, so let’s delve into it in detail in the article below to provide answers to all your questions.

What is revenue?

Revenue is also known as income, which is all money collected in the process of buying and selling goods, providing services, and other activities of individuals and organizations. This is also the basis for businesses to make revenue reports.

What is the revenue implication? 

In terms of meaning, revenue is known as income – an important revenue so that every business can pay costs and related expenses during business operations and service provision. For example, office and store rental costs, fees and charges, taxes for state agencies, etc.

This is also an essential amount to help maintain and develop the business in the long term, also known as revolving capital to help promote the process of re-operation or to develop business activities on a larger scale.

What is profit?

Profit is the reward for the risk taken by a businessman to run his business, i.e. it is the return on the investments he makes. It is essential for the growth and long-term survival of every business, in fact, the success of a business depends solely on its ability to make a profit.

Profit can be obtained after deducting some costs such as: Transaction costs, Office and management costs, Sales and distribution costs, Taxes, Interest, Dividends, etc. Below are types of profits:

Gross Profit: The profit achieved after deducting transaction costs from Sales is called Gross Profit.

Net profit: The profit earned after deducting office and management expenses, selling expenses and other expenses from revenue is net profit.

Main difference between revenue and profit

  • Revenue is the amount of money a business receives through various trading activities while Profit is the surplus remaining after reducing all types of costs and expenses.
  • Revenue is necessary to run a business efficiently and effectively. On the other hand, Profit is necessary for the survival and development of a business in the long term.
  • Revenue does not depend on profit in any way, but profit depends on revenue. In other words, the more revenue, the more profit.

An example in the following story so you can understand better:

The following story will help differentiate revenue and profit types:

We are a TV store. We import 10 TVs at a price of 7 million/unit. Then we sell 10 million/unit. At this time:

  • Revenue = 10 TVs x selling price of 10 million = 100 (million)
  • Gross profit = Revenue – cost of imported products = 100 – 10×7 = 30 (million)

To sell a TV, we also have to spend money to open a store, pay sales staff salaries, and taxes. This total cost is 1 million.

Net profit = gross profit – costs (sales, business management costs, taxes) = 30 – 1 million x 10 units = 20 (million)

Is revenue or profit more important?

When people refer to a company’s profits, they are often not referring to the company’s profits or operations, but to its net income. This is the amount a business earns after deducting costs or profits, and a company may generate revenue but may suffer a net loss.

Profits and revenue are both important, profits tell us exactly about the financial situation of a company or business. Because the business’s debts and some expenses have been accounted for by the business when calculating profits.

Revenue and profit are two extremely important numbers, shown on the operating process and business reports of a company or enterprise. Wall revenue is located on the top line of the statement and profit is usually located on the bottom line.

Although these two metrics are both very important when considering investment decisions, revenue is the income a company generates without taking into account other expenses. However, when determining profit, you need to pay attention to the costs that the business makes such as wages, debts, taxes and other expenses.

Thus, although revenue and profit both have big differences, they are closely related to each other. So when you understand the business’s financial statements and the difference between revenue and profits, you can already practice accounting tasks and establish effective budgets.

Conclusion:

  • Revenue is the total revenue earned from sales.
  • Gross profit = Revenue – cost of imported products
  • Net profit = Gross profit – costs related to business management, sales, taxes.

I hope this simple article of mine will help people read and understand the business at a glance, take the first steps to better understand the business and feel more secure in their assets. Wishing everyone to maintain discipline and perseverance.

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What is net revenue? A Detailed Review

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