The Mineral Resource Rent Tax in Australia

Introduction The following is an essay discussing the Mineral Resource Rent Tax introduced in Australia with the aim of ensuring that the mineral resources in Australia benefit citizens. This is because; they have benefited the mining companies due to the increase in the price of minerals.Advertising We will write a custom essay sample on The Mineral Resource Rent Tax in Australia specifically for you for only $16.05 $11/page Learn More This has especially affected large companies that deal with mining of coal and iron ore. The tax law gears towards utilization of the resources in a way that is reasonable and helpful to both the country and the mining industry in Australia. This essay will look into the effect of Mineral Resources Rent Tax on the accounting policies of the affected mining industry prior to the introduction of the tax and after the introduction of this tax. The essay will have a literature review on the effects of the mining industry on t he life of individuals as well as accounting policies of the affected companies. The essay will have a critical analysis of the tax and its effect on the mining companies as well as on the life of the people of Australia. The final part of the essay is the conclusion on the way forward. Literature Review The Mineral Resource Rent Tax is a tax proposed by the government of Australia on the mining companies, which extract non-renewable resources in Australia. Such minerals include iron ore and coal. The reason for this tax is that the mining industry is getting a lot of money due to the increased global prices of minerals. The government of Australia therefore found it prudent to ensure that the taxes or revenues collected by the government from the Taxes reflect the increased revenues from this industry. The revenues generated from such activities will improve the country’s infrastructure as well as ensuring that every citizen has benefited from the mineral resources available in the country. The government proposes to obtain forty per cent of the profits generated by these companies. This is because previously the companies were paying royalties to the government and they were smaller compared to the revenues generated (Mercer 2011). The proposal to do this has led to huge public debate on the effects of the Mineral Resource Rent Tax on the accounting policies of the affected companies. This is because the tax policy will change the accounting policies of the affected companies. The main argument however is on the implication of these changes and their effect in future accounting of the affected companies.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Previously, the mining companies were paying royalties to the government. The royalties were a fixed amount of money expected from the mining activities. These royalties are similar to federal taxes and they wer e not fully dependent on the amount of income generated from the sales of the minerals. However, the new tax policy on mineral resources will ensure that the companies pay tax according to their earnings. This has raised concerns from stakeholders on whether the tax will apply on the gross income or on the net income (Price Water House Coopers 2012). Concerning whether the MRRT is an income tax the Australian Accounting Standards Board interpreted the act as an income tax with respect to the previous Petroleum Rent Resource Tax because both are similar in many ways. The MRRT is therefore an income tax as it proposes taxation on the profits earned after deducting qualifying expenditure from the gross revenues. This then makes the tax an income tax according to the Australian Accounting Standards Board (Price Water House Coopers 2011). The other issue brought about by this bill is the accounting for transitional tax. This is because transitional tax requires accountability as well as time to ensure that there are no losses incurred from double taxation. MRRT tax requires the financial statements to reflect deferred tax accounting (Hughes 2011). The other tax accounting issue raised in The MRRT is the mining companies starting base. The starting base is the value of assets required by the company in order to start making profit. The companies must submit their assets value and the methodologies that they have used to determine the starting base. This aspect is raising a number of issues, as there is need for a standard methodology to evaluate the assets. This is because some of the companies may overvalue their assets with the aim of deferring their tax payment period.Advertising We will write a custom essay sample on The Mineral Resource Rent Tax in Australia specifically for you for only $16.05 $11/page Learn More Since there is no formal starting base, it is wise for companies to start preparing their methodologies of calculating the assets and the starting base to ensure that there is appropriate response (Hughes 2011) This also raises another issue where mining companies may use the starting base to defer tax for a certain period. This is especially in situations where the government may not have formulated clear starting base. This may provide the mining companies with a tax holiday where they are not obliged to pay tax until their assets value reaches a particular point (Hughes 2011). When the market value methodology is used, the companies will be obliged to support their valuations as per the existing market value of their assets. It is necessary to note that the market value approach only applies to the existing projects. This means that the new projects will not feature as a starting base as soon as the bill comes into effect. This is because some companies may engage in start up projects to defer their tax payments for unspecified period. This is necessary to support the deferred tax balances and to enable the company prepare market valuations. This calls for the company to have asset valuations to estimate assets before the financial enactment of the bill (Blanchard 2011). The other issue raised by the bill regards the current treatment of the state royalties. Previously these royalties were pre tax costs deducted before as a pre tax cost. However, MRRT does not specify clearly calculation of these royalties. However, there are two options about how they may be treated. The first one is operational cost and therefore deducted as an expense before taxation. The other option that is very likely to apply is for the inclusion of royalties as part of the MRRT. This will mean that the royalties charged by the state and federal government will be part of the tax. This means that the forty percent will be inclusive of the state royalties’ deductions. There is need for clarification on the way to handle this to reduce ambiguity (Blanchard 2011). The other factor for considerati on regards the market value of the assets as the market value is ever rising or falling. There is need for a mechanism to determine the value of an asset as per the market value. This is important to ensure that there is cohesiveness between the entity and the government methods of determining the market value (Blanchard 2011).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More There is need for the preparation of tax sharing agreements between the taxpayers such that the company receives issues or regulations in a way that is responsible. The agreement preparation regard the time in which the organization prepares for its time and opportunity of raking in revenues. This is because there are smaller mining companies affected by the PRRT and MRRT in various ways. The first issue of necessity is that of the fact that there is need to establish how tax deductions will be done (Blanchard 2011). Analysis of the MRRT The influence of Mineral Resource Tax has many ways of interpreting and calculating the payable taxes. This analysis will delve into the various points of view that are likely to occur resulting from the MRRT proposals with the first being deferred payments. In respect to the start up base where the company must indicate the initial capital invested in the project, new projects are not considered as starting base. Only the existing or ongoing projec ts will have the advantage of inclusion in the start up base. This is because there are some companies, which may take advantage of this exemption to find ways of having new projects such that this start up base allowance goes higher. The mining companies can however adopt different policies to incorporate the start up allowances (Donaldson 2011). The first view is that of the company treating the start up capital as a tax break. This is based on the interpretation that the start up capital of one million may mean that the company is exempted from paying taxes until it makes profit amounting to $ 1million. This view holds that the start up capital is a break or government allowances to enable the mining companies have their return on investment. This affects the manner in which the accounting policies have operated in the mining industry, as there were no such breaks. Tax calculations relied on the net income after deducting the operational expenses. It is imperative to note that th e normal taxation will apply soon after the start up capital utilization. The period in which the company takes to get to the start up base income is the tax holiday (Donaldson 2011). The other way in which the MRRT can apply is that the start up base may be a form of government grant to the mining industry to stimulate its performance. When viewed as a grant the companies may not defer their tax arrears but will continue to pay the taxes until such a time when the government refunds the tax to fit the grants given. This will be one of the ways in which the government can make foreign-based companies that are dissatisfied with the laws and they are looking for other countries with lenient taxation measures to remain in the country. The grant means that although the company pays its tax, the government augments the tax paid and exempts the company from paying the tax until a future date (Donaldson 2011). The question on how the MRRT will affect the accounting policies of the affected companies is important. The first effect of MRRT on the company’s accounting policies is creative accounting. There is high possibility that the mining companies will look for ways of sheltering their taxable income to ensure that they retain much of their profits. The creative accounting will involve several ways of reducing the amount paid to the government. The first manner that will apply concerning creative accounting is increasing the operational expenses. The affected companies may increase the operational expenses than the previous expenses indicated. The operational expenses such as the value of the machines and the value of the goods and services may indeed reflect a deduction in the manner in which the company operates. There is need for proper mechanisms concerning the financial reporting of expenses (Blanchard 2011). The other major aspect of the effects of MRRT is on earnings management policies. Earnings management refers to a situation where the company manip ulates its earnings in order to have a stable income projection aimed at boosting the investor confidence. Nevertheless earning management is likely to apply to the companies privately owned or not listed in the stock exchange. Public companies will have to pay their taxes, as they will have to apply different accounting policies, as the interest of the public investor is to have higher dividends. This will mean that such companies may not increase their operational costs to reduce the payable income as the interests are in the dividends not the value of capital (Blanchard 2011). While the company may increase their operational costs such as exploration and development, the Mineral Resource Rent Tax only considered the ongoing projects as exempt from the taxation. However, new projects may not qualify as a start up capital or operational expenses and they will therefore pay tax on such projects (Wood 2011) The role played by the earning management involves inappropriate estimate of liability. This is where the company underestimated its actual liabilities which it owed to the banks and other institutions. The companies may use excessive provisions to justify those practices in legal terms. This shows that the management irrespective of manipulating the figures are still within the legal provisions of the company and therefore they are not liable for of any wrongdoing. These legal provisions concerning the company assets and auditing structures create loopholes, which allow the manipulation of figures (Wood 2011) The MRRT will therefore affect the accounting procedures of the company especially the bookkeeping procedures. The bookkeeping enables the company to track its expenses, and profitability and look for situations where the company may be making losses. However, the earning management adopted by the companies to increase their operational expenses in order to benefit from the tax base assets may rob the investors their profits as dividends that accrue to the company from after tax profits. The book keeping policies of the company reflect the internal transactions of the company. For the company to operate effectively the records must be authentic and reflect real transactions of the company. Without this happening, there is likelihood that the company will not have the correct financial statements (Wood 2011). The other accounting policy that is important concerns the financial reporting procedures. This is where the MRRT policies will have effect. This is because the financial reports need to indicate the real financial position of the company in terms of the profits or losses. This is necessary to ensure that the policy benefits both the investor as well as the government (Eseinhardt 2011). Recommendations The Mineral Resource Rent Tax is indeed complicated taxation mechanism, which requires the affected companies to prepare their policies and make the necessary adjustments to cope with the changes. The companies will benefit fro m the policies to ensure that there is proper governance and timing for the necessary changes to take place (Eseinhardt 2011). The second manner of dealing with the MRRT is setting the assets base so that the company may benefit from the start up capital base. The investors in the mining companies are the greatest losers due to reduced dividend as a result of increased taxes. For the public investors to benefit, the earning management or creative accounting policies intended to reduce taxes payable to the government must be abolished to ensure that the investors benefit. This is the major reason why the bill has received opposition from the owners of the companies especially the public investors as this will reduce the huge dividends that they have been generating from the venture (Eseinhardt 2011). Companies must prepare and program themselves through training their accounting staff to handle the new accounting procedures as indicated by the MRRT. This is necessary, as it will ensu re that the companies involved anchor towards ensuring that the company aligns with the taxation recommendations of MRRT. The training will enable the companies to cope with the intense and rigorous evaluation process that is going to come after the bill is effected (Clark 2004). The company must also conduct prior valuation of their assets before the government comes in to value the assets to determine the start up base of the company. This is important in ensuring that the company has a proper estimation of its start up tax base before the financial year begins (Clark 2004). Informing the investors is also a very important aspect of the way forward in ensuring that the company aligns with the new tax proposals. The investors have to make decision on whether they want increased cost of operation for the company or higher divided. The increased operational costs may increase the share value of the company while reducing the taxes paid to the government as well as the amount of money that the shareholders or the investors will receive as dividends. It is therefore imperative for the mining companies to conduct meetings or seminars with their investors to inform them of the implications of MRRT on their entity. The shareholders then may decide the way forward, either to allow earning management or to pay the tax as it should be and continue to get more money (Clark 2011) There are however two options concerning the implication of MRRT on the revenues collected by the government resulting from the measures and the accounting polices which different companies will have. The first is that it may result to increased government revenues if the companies comply and treat the taxation recommendations as taxable income. Nevertheless, if the companies adopt earning management policies intended to make the companies shelve its income then the government will not collect as much revenues as anticipated. The investors may also decide to invest their money elsewhere if they feel that the taxes are high in comparison with other countries such as Columbia and Latin America. This may lead to closure of many mining companies that have threatened to do so in protest of the taxation law. This is because the tax will affect the cost of operation when there are state royalties that the mining companies pay to the state governments. The other aspect of consideration is that if the companies may decide to relocate there will be massive loss of jobs in mining as major industry in Australia (Clark 2011). However, the law intends to ensure that every Australian benefits from the resources available in the country. Most of the mining companies located in Australia are foreign based and the profits that they obtain from the venture benefit foreign countries. The Mineral Resource Rent Tax is therefore a milestone in ensuring that the mining industry contributes to the infrastructural development of the country. However, it is important to ensure that there is more cla rity concerning the manner of paying tax (Clark 2011). Conclusion Taxation is a major part of accounting and the taxation measures and procedures adopted by a government determines the policies which the companies affected by the measures adopt. The taxation policies proposed by the Mineral Resource Rent Tax law will affect the terms of taxation policies especially on how to account for the start up base capital. The other way is adopting the best means of ensuring profitability without increasing operational costs. The third way is reducing profits by increasing the company equity. MRRT will change the accounting policies of the affected companies. The investigations on the effects of MRRT on the accounting procedures of the mining companies are of importance to all stakeholders in the mining industry and the people of Australia. References Blanchard, T 2011, Preparing for MRRT: Deloitte’s perspective, Deloitte Australia, pp. 4-11 Clark, T 2004, Theories of corporate governa nce: The philosophical foundations of corporate governance, Rutledge, London. Clark. T 2011, Mineral resource taxes in information age, Long Range Planning Publication, pp.1 Donaldson. L 2012, MMRT on governance and shareholder returns, Academy Of Management Review, vol. 20, no. 1, pp. 5. Eisenhardt, K 2011, An assessment and review of MRRT, Academy of Management Review, vol. 14, pp. 57-74 Hughes, S 2011, Effects of MRRT on public shareholders, Earnest and Young Reports, pp.1-8 Mercer, P 2011, Australia new mining tax and its implications, International Resource Journal, vol. 11 pp. 2-3 Price Water House Coopers 2011, Complexity of MMRT on accounting policies, Price Water House Coopers Reports, pp. 1-17 Price Water House Coopers 2012, Complexity of MMRT on accounting policies, Price Water House Coopers Reports, Vol. 2, pp.1-8 Wood, L 2011, Implications of mineral resources rent tax, Sydney Morning Herald, Sydney. This essay on The Mineral Resource Rent Tax in Australia was written and submitted by user Ray Wolfe to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Intolerance in The Chrysalids Essay Example

Intolerance in The Chrysalids Essay Example Intolerance in The Chrysalids Essay Intolerance in The Chrysalids Essay John Wyndham focuses on the dangers of strict social conformity. He also suggests that blind acceptance of tradition results in persecution, rebellion and ultimately destruction. At the beginning of the story the author shows the society here is very religious and show they have a strict social conformity everything there has to fit their idea of a true image of god, If it does not fit it is destroyed, or if it is a human they are banished to the fringes. The fringes are very deviated land where they put blasphemys to try and survive but they hope for them to die. anything that defied the true image was satanic God decreed that man should have one body, one head, two arms and two legs: that each arm should be joined in two places and end in one hand: that each hand should have four fingers and one thumb: that each finger should bear a flat finger-nailThen God created woman, also, in the same image, but with these differences, according to her nature: her voice would be of higher pitch than mans: she should grow no beard: she should have two breasts- David Strorm . This was taught to them through their lives and lived by that is the true image of god anything not like it was a blasphemy. People who can hide this past the

5 tips on how to keep employee turnover low

5 tips on  how to keep employee turnover low One core aspect of successfully running a business- regardless of its size or the industry it’s operating in- is keeping staff happy and motivated so that they continue to perform at effective levels. It also helps to reduce levels of employee turnover- something that strategic, forward-thinking management teams should always consider.Why is employee turnover so crucial to manage carefully? Simple- its potential negative effects on an organization can be profound, and can impact every aspect of a company’s ability to operate efficiently.Entrepreneur published an insightful article on the hidden costs of employee turnover  in which  Toronto-based human resources consultant Tom Armour discussed the hidden ways turnover can have a financial effect on a company, including:The cost  of  the work that isn’t getting done when an employee is missingCo-workers not being able to work to their full potential because they’re picking up the slack from missing e mployeesA loss of credibility for management when a work environment has a reputation for excessive turnover and employees grow discouraged that they will thrive thereSo, it’s clear that employee turnover is a potential problem for any business and that its potential effects are wide and deep. That said, there are some strategic steps that key management, HR teams, and hiring personnel can take in an effort to minimize its prevalence. Forbes recently published an article that highlights several key ways to reduce employee turnover.Consider using these 5 strategies in your company.hbspt.cta.load(2785852, '9e52c197-5b5b-45e6-af34-d56403f973c5', {});1. Hire the right people.Keeping employees starts with hiring the right employees. You likely  hire employees  who have strong skills that match your open position. But, how well do your employees fit in with your business’s culture?You must hire employees who are behavioral and cultural fits for the job. You can ask emplo yees  behavioral interview questions  to find out how they react in certain situations. Also, during interviews, be sure to show candidates around your business and tell them about your workplace culture. Candidates will hopefully eliminate themselves if they don’t fit in.If employees don’t fit in with your work environment, I guarantee they won’t be happy. They won’t fit in, they won’t get along with their co-workers and they’ll feel lonely. An outstanding candidate that doesn’t match the behaviors and culture of your business won’t stay around long. They’ll take their skills somewhere where they fit in.2. Offer competitive pay and benefits.People want to be compensated well. They need to cover standard expenses like housing, utilities, and food- and most people want enough money for extras, too. If you don’t pay your employees well, they’ll find a business that will.When determining compensation for y our employees, it’s good to do market research on wages. Find out what your competitors pay their employees. Research a  competitive salary range  based on similar jobs in your local area. For example, if you want to hire an IT specialist in San Francisco, you should consider what other businesses in San Francisco pay their IT specialists.And you can’t simply give employees paychecks and be done. Employees want good benefits, too. You must offer competitive benefits that your employees want. Learn about  common employee benefits. Then, find out what benefits competitors and other businesses in your area offer.3. Give praise freely and often.Your employees need encouragement and recognition. When they do something right, show your appreciation. When they finish a large, difficult project or submit a project before the deadline, congratulate them. Show them that you see their hard work.Of course, don’t feel like you have to shower employees with praise for e verything they do. You don’t have to praise employees for small, everyday tasks. But, when employees truly do something worth congratulations, give it.The goal here is to create an encouraging, positive work environment. When employees feel respected, acknowledged, desired, and motivated, they are more likely to stay. Best of all, this method to decrease employee turnover is free. You just have to use your words.4. Guide employees down a career path at your company.If employees stay stagnate in one job for too long, they might search for another job where they can advance. Most employees want to increase their skills and knowledge and move up the career ladder. Showing employees a projected career path gives them a sense of direction and purpose.You should lay out an ideal plan for your employees. Where can they go from their current position? Maybe it’s an upward or lateral move. Or, maybe your employees can earn more responsibility in their current position. Whatever it is, let your employees know how they can advance.After you’ve set up a plan with them, you can help employees advance along their career path. Provide them with coaching quarterly by recommending ways to advance. You can also offer employees training opportunities. Give them plenty of chances to learn new skills and put them into practice in their current job.5. Don’t shy away from flexibility.If it’s possible, allow  flexible work schedules that let employees adjust their work time and location. That way, employees can create a work-life balance for themselves. Your workers can pursue things beyond work, go to appointments, and take care of their families- all while getting their work done on time.Flexible work schedules might not be possible for all businesses; your employees might need to be at your business at specific times. But there still might be ways you can offer flexibility, such as the option of working from home one day a week or adjusting a s tart time for the day.There you have it- if you’re interested in minimizing the effects of employee turnover in your organization, take advantage of the tips listed here to help keep your business operating effectively.

The Legal Policy In The Gas And Oil Industry Essay

The Legal Policy In The Gas And Oil Industry - Essay Example All these forms of contract are been utilized for accomplishing the same purpose i.e. promoting the economic growth of oil and gas production and extraction with sustainable environmental effect. Especially mentioning, the above-stated contract agreements possess own advantages along with disadvantages. Malaysian oil and gas industry plays a key part in developing the economy of the nation through contributing 40% in the national revenues. The major issues that arise during the selection of contract in this regard include the share of the distribution of profit between the government and companies participating in the contractual agreement and the cost structure that the involved parties need to be accepted. It will be vital to mention that oil and gas industry plays a vital part in boosting the overall growth of the nations in the international scenario. Thus, the proper selection of a specific contractual agreement will not only assist the respective governments of the nations to e radicate the issues but also impact the overall growth of the economy at large. Besides, the prior reason for undertaking an effective contractual agreement in the oil and gas industry between countries and international oil companies is to utilize the reserves in an appropriate manner2. However, at certain times, the selected approach of the contract becomes complicated, which significantly leads towards rising disputes between the involved parties. Moreover, contractors need to follow varied industrial norms, environmental laws, international and comparative policies of different international environmental agencies. By taking into concern the international scenario, it can be inferred that the notion of sharing production and operational activities of oil and gas amongst states and companies by forming an efficient commercial enterprise was significantly developed during  the 1950s in Bolivia.

Knowledge Managemenet Essay Example | Topics and Well Written Essays - 1250 words

Knowledge Managemenet - Essay Example The essay will further analyse the function and role of learning organisation. Further, the cases of various real-life learning organisation would be discussed along with the probable challenges, so as to recommend how an organisation can transform into a learning organisation. Peter Senge and his fifth disciple for learning organisations The concept of learning organisation has been coined by Peter Senge and his associates. It assist organisation to shift towards an interconnected mode of thinking. According to this concept, the organisations should be like communities, towards which employees are committed. There should be a drive to work harder and achieve recognition within the employees. Organisation cannot be drastically restructured into learning organisations, but it is the changes in policies that bring about a gradual transformation (Senge, 1990). Peter Senge has stated in an interview that in learning organisations people work in group to attain group goals and enhance the capabilities of the organisation. He popularised this concept through his book called The Fifth Disciple (Infed., 2013a, 2013b). Figure 1: The Fifth Discipline Source: (Author’s Creation) There are certain characteristics that a learning organisation must possess. Firstly, system thinking must exist in an organisation. This framework assists employees to understand businesses as bounded objects. System thinking encourages every characteristics or information in an organisation to be apparent, so that goals can be achieved transparently. Secondly, personal mastery that is the commitment of individuals towards their work is important. Staff training Individual learning and development is a competitive advantage for the firm. Thirdly, the mental modes, which are the assumption of the individuals, decide what perception the employees have for the organisation (Senge, 1990). Fourthly, there must be shared vision in the organisation to motivate the employees for attaining group go als. Last but not the least, an environment of team learning is necessary that will increase the capacity to solve problems faster in an organisation (Infed., 2013a, 2013b). Challenges to Transform into a Learning Organisation It has been stated in the book called The Dance of Change that there are various reasons as to why an organisation might face trouble in transforming into a learning organisation. The first issue might be that the organisation lacks enough time. The management and the employees in the organisation have other significant issues to ponder over than trying to bring about a change in the organisational culture. It might happen that the employees or teams cannot spare time for training and change management process within the organisation (Senge et. al., 1999). The organisation might not be having appropriate expertise workforce to transform the work place into a learning organisation (Senge, 1990). In such case an appropriate solution, mentors and training program mes are required. Time is the most significant element that is required because a comprehensive discussion on the actual issues should be done, problems should be discussed and training programmes should be linked in order to make the transformation process easier. However, challenges like convincing older employees for training and learning processes and co-ordinating human resource, operations and resources give rise to

Process of Matrix Acidizing

Process of Matrix Acidizing CHAPTER ONE INTRODUCTION CHAPTER ONE INTRODUCTION 1.1. Preface: Well stimulation techniques are applied regularly to improve productivity and maximize recovery from oil and gas wells. One of these techniques is matrix acidizing which is probably the most extensively performed job due to its low cost as compared to hydraulic fracturing, and it’s appropriateness to both production improvement and to restore original permeability in damaged wells. Acidizing treatments in general can be classified as : Acid washing Matrix acidizing Fracture acidizing ( or acid-fracturing) In acid washing, the purpose is simply tubular and wellbore cleaning. Treatment of the formation is not considered. Acid washing is most often Carried out to clean out scale and other materials restricting flow in the well. In fracture acidizing, acid is injected into a fracture created by a viscous fluid or the acid itself used to create the fracture. As acid progresses in the fracture, it reacts with the fracture walls, resulting in dissolution etching. Matrix acidizing which is the focal of this research, is defined as the process in which an acid is injected into the formation at pressures below the fracturing pressure of the formation so that fractures are not created. The injected fluid will react with the formation and dissolve some of the materials present and hence eliminate the formation damage and/or increase the permeability in the near-wellbore region.(1)The acidizing process leads to improving the maximum recovery in both sandstone and carbonate reservoirs and increasing economic reserves. In carbonate formations, matrix acidizing acts by forming conductive channels, called wormholes, through the formation. These wormholes penetrate beyond the near-wellbore region, or extending from perforations, as illustrated in figure (1.1). Acid-induced wormholes in carbonate rocks are similar to the holes made by earthworms underground, hence the name.(2) Often, acid will form  primarily single wormhole from limited numbers of perforations, without significant branching. That is the case when strong acids are used, such as HCl. Weaker acids, such as acetic acid, and retarded acid systems tend to create more branching of wormholes, which is preferable but only to a certain range. Retarded acid systems comprise viscosified acids (e.g., surfactant or polymer surfactant-gelled acid, emulsified acid, and foamed acid) or chemically retarded acid. The nature of wormholes created is controlled by the injection rate, temperature, and formation reaction characteristics.(2) In carbonate formations, the most frequently used acid is hydrochloric acid (HCl) which reacts with carbonates and form water (H2O), carbon dioxide (CO2), and a calcium or magnesium salt. Typical reactions in carbonates are(3): For Calcite: 2HCl+CaCO3 CaCl2+CO2+H2O .(1.1) and for Dolomite: 4HCl+CaMg(CO3)2 CaCl2 +MgCl2+2H2O+2CO2 .(1.2) Figure(1.1): CT- Scanned wormhole structures from a core-flood experiment(4) 1.2. Formation Damage: Formation damage is a common expression denoting to the impairment of the permeability by different processes. It is an undesirable functioning and economic problem that can take place during the different phases of oil and gas recovery from reservoirs, such as drilling , hydraulic fracturing, workover operations, and production. Formation damage indicators include permeability impairment, skin damage, and decrease of well performance. Figure (1.2) represents the common formation damage mechanisms in the order of significance.(5) Seven formation damage mechanisms were summarized by Bishop (1997).(6) These mechanism are: Fluid–fluid incompatibilities; for example emulsions formed between formation water and oil-based mud filtrate. Rock–fluid inconsistency; for instance contact of possibly swelling clay by nonequilibrium water-based fluids will reduce near wellbore permeability. Solids invasion; such as the invasion of drilled solids or weighting agents . Phase /blocking; for instance the invasion of water-based mud in the near wellbore region in a gas well. wettability alteration; for example emulsifier adsorption altering the wettability and fluid flow features of a formation. Fines migration; for instance the movement of fine particulates in a rock’s pore structure , as a result bridging and plugging will form in pore throats. Biological activity; such as the bacterial agent that enter into the formation during drilling. 1.3. General Information about Field under Study: The Badra field is located in Wasit governorate 160 Km toward southeast from Baghdad city and extends across the borders to Iran. The Badra-1 discovery well was drilled in 1979. A second appraisal well (BD-2) was drilled in late-1980s but was abandoned due to the war before reaching the planned TD and main target Mauddud reservoir. No DST, coring or production testing were done. Two appraisal wells (BD-4 and BD-5) were drilled; coring and testing was in 2013. In 2011, 169 sq.km seismic 3D acquisition was done and interpreted. Figure (1.3) shows the oil field and Badra field location. Figure (1.2): Classification and order of the common formation damage mechanisms Figure  ­Ã‚ ­Ã‚ ­Ã‚ ­Ã‚ ­(1.3):Zagros Province and Oil fields 1.4. Objectives of the Present Study: The present research aims to design matrix acidizing process for one of the Iraqi oil wells (Carbonate formation) using Hydrochloric acid (HCl) . The purpose is to follow up the formation damage occurrence due to drilling mud and completion fluids and removal, permeability improvement, and minerals dissolution in the carbonate formation caused by the acidizing process. As well as evaluating the matrix acidizing behavior, the effect of rock heterogeneity, and to determine the optimal injection rates of the acid to create channels in these formation. A new laboratory apparatus will be designed and constructed to perform the planned experiments. The setup should reproduce ,as much as possible, the characteristics of the treatments conditions to investigate the effects of matrix acidizing on carbonate rocks having variable mineral composition. Extensive experiments are required to be conducted to study the validation of the operative suitability and reliability of the apparatus under a broad range of pressure, flow rate, volume pumped, and acid concentration along with different additives. The licensed StimPro software will be applied , for the first time, for matrix acidizing process for Iraqi carbonate formation.

Argumentitive Essay on ‘the Case for Breaking Up with Your Parents” – Prof Terry Castle

————————————————- ————————————————- Why it is better for students to take the wheel â€Å"Parental engagement even in the lives of college-age children has expanded in ways that would have seemed bizarre in the recent past. (Some colleges have actually created a â€Å"dean of parents† position – whether identified as such or not – to deal with them. ) The â€Å"helicopter parents† who hover over nearly every choice or action of their offspring have given way to â€Å"snowplow parents† who determinedly clear a path for their child and shove aside any obstacle they perceive in the way. – Prof. Terry Castle, The case for breaking up with your parents As seen in Prof. Castle’s article ‘The Case for breaking up wi th your parents’ (The Chronicle Review, May 6, 2012), there are a few reasons why she is right when she says that the highly expanded parental engagement jeopardizes students’ intellectual and emotional freedom. They need to separate so that students will be able to engage in a kind of self-orphaning.First of all, the high involvement of parents is not advantageous at all by thinking that students are not even able to make their own choices – sometimes they would even do something just to make their parents feel satisfied. To prevent this, parents should really start to think about the abilities of their own child. Would they really not be able to make the right decisions? Of course, one has to overcome a few difficult steps in order to be able to make right decisions, but still, the students need to be given the chance to walk their own way to their future.It is apparent that these helicopter-parents are not inept parents at all, such parents are rather too car eful, well, maybe they care a little too much. Nevertheless, they do not have bad intentions so that is why students should start to talk about those involvement-issues with their parents. If they do not talk about it with their parents there would not be anyone else would convince them to stop doing so to their lovely children. Still, caring so much about their child is another reason to let them choose.If the parents love them so much, they should also love their preferences, or if they really disallow them, they can still advise them not to do so. This way, they can learn to guide themselves and still have the parents’ opinion at the same time. Breaking away from your parents? is not something easy to do. Some students do not know better than their parents’ conceptions, or at least, that is what they assume. That is why there is also a possibility that those students have unconsciously developed a fear of making own choices.Well, here again, this is another opportun ity to help your child to become more independent. As life is full of surprises, there will definitely be moments where your child will have no choice but to make a decision, and if it has never been done, it will also be very difficult. Caring parents would not want their child to be put in a difficult position, would they? Having said this, breaking away from such fanatical and willful parents would definitely be the best thing to do.It is high time for the student to overcome the possible fear of making own choices and one should be able to disassociate himself from his parents. ——————————————– [ 1 ]. Self-orphaning – ‘The Case for Breaking up with your parents’ by Professor Terry Castle [ 2 ]. Helicopter-parents – ‘The Case for Breaking up with your parents’ by Professor Terry Castle ? Breaking away from your parents – as seen in ‘The Case for Breaking up with your parents’ by Prof. Castle