ELI5: Explain Like I'm 5

Petroleum licensing

Petroleum licensing is like getting a ticket to use a toy at the playground but instead of a toy, it's a big area of land where you can dig and find oil or gas. Just like how you can't play with someone else's toy without asking first, you can't just go and dig for oil or gas wherever you want. You have to ask the people who own the land if it's okay to dig there.

The people who own the land are usually governments, and they want to make sure that whoever wants to dig for oil or gas is going to do it in a safe and responsible way. So they make a set of rules that you have to follow, this is called a license.

Getting a petroleum license means that you have asked the government if you can dig for oil or gas in a specific area of land, and they have given you permission to do so based on certain rules you must follow. These rules might include things like cleaning up after yourself, making sure there are no harmful chemicals getting into the water or air, and taking extra care to protect wildlife.

When you get a petroleum license, it means that you have the right to explore and develop the land for oil or gas. However, just like how you can only play with the toy you have a ticket for, you can only extract oil or gas from the land covered by your license. You cannot go and drill for oil or gas on other people's land without their permission or a separate license.

So in summary, petroleum licensing is like getting permission to dig for oil or gas on a specific area of land from the government. It comes with certain rules you have to follow and means that you have the right to extract oil or gas from that land, but not from any other land that you do not have a license for.