Oil & Gas Glossary
Acidizing
The technique of pumping a form of hydrochloric acid down the well hole to enlarge the pore space in oil bearing rocks, thus increasing oil flow and recovery.
« BACK TO TOPAGA
American Gas Association. Major natural gas industry trade association, based in Alexandria, Virginia. AGA conducts technical research and helps create standards for equipment and products involved in every facet of the natural gas industry. It also compiles statistics which are considered industry standards.
« BACK TO TOPAnticline
A fold in layered rocks originating below the surface in the form of an elongated dome. Anticlines make excellent drilling prospects since any oil in the deposit will naturally rise to the highest point of the structure because oil has a lower specific gravity than water.
« BACK TO TOPAPI
American Petroleum Institute. The primary U.S. oil industry trade association, based in Washington, D.C. API conducts research and sets technical standards for industry equipment and products from wellhead to retail outlet. It also compiles statistics which are regarded as industry benchmarks.
« BACK TO TOPAPI Gravity
The American Petroleum Institute scale used to express the specific gravity of oils.
« BACK TO TOPAssay
To test a metal or an oil for purity or quality.
« BACK TO TOPB/D
Barrels per Day. Usually used to quantify a refiner's output capacity or an oilfield's rate of flow.
« BACK TO TOPBarge
A vessel, either motorized or towed, used to carry products in navigable waterways. Inland river barges that carry oil products generally hold 25,000 barrels. Ocean-going barges range in size up to 120,000 barrels.
« BACK TO TOPBarrel of Oil
Measurements which equal a barrel of oil include 159 litres, 0.159 cubic metres, 35 Imperial gallons, 42 U.S. gallons.
« BACK TO TOPBarrel of Oil Equivalent (BOE)
A term frequently used to measure oil and gas on a comparative basis. In Canada, 10 mcf of natural gas is equivalent to one barrel of oil.
« BACK TO TOPBarrel of Oil Per Day (BPD)
The number of barrels of oil produced from a well over a 24 hour period, normally an average figure from a longer period of time.
« BACK TO TOPBatch
A measured amount in which crude oil and refined product shipments are sent through a pipeline.
« BACK TO TOPBatching Sequence
The order in which shipments are sent through a pipeline.
« BACK TO TOPBattery
Facility that stores and/or processes crude oil.
« BACK TO TOPBCF
Billion cubic feet.
« BACK TO TOPBitumen
Heavy oil or petroleum in semi-solid or solid forms. Bitumen generally has a density of less than 10 degrees API.
« BACK TO TOPBlock
The subdivision of exploration and production acreage.
« BACK TO TOPBook Value Per Share
Calculated by dividing owners equity by the number of shares outstanding. This accounting calculation is typically considerably lower than the actual share price because accounting principles require the use of historical cost. Book value per share is an estimation of what the company is worth if it were to be liquidated.
« BACK TO TOPBritish Thermal Unit (BTU)
The amount of heat required to increase the temperature of a pound of water 1o Fahrenheit. A Btu is used as a common measure of heating value for different fuels. Prices of different fuels and their units of measure (dollars per barrel of crude, dollars per ton of coal, cents per gallon of gasoline, cents per thousand cubic feet of natural gas) can be easily compared when expressed as dollars and cents per million BTUs.
« BACK TO TOPBunker C Fuel Oil (or bunkering fuel)
Fuel used for ships. Generally refers to a No. 6 grade of residual fuel oil with an API gravity about 10.5o.
« BACK TO TOPCasing
The process of lining a drilled hole with steel pipe which is cemented in place to prevent caving in of the hole.
« BACK TO TOPCasinghead Gas
Gas present in an oil well that is removed when it flows to the surface at the well's casing.
« BACK TO TOPCentrifugal Pump
A rotating pump, used for pushing large volumes of oil and gas through pipelines.
« BACK TO TOPCF/D
Cubic feet per day. Usually used to quantify the rate of flow of a gas well or pipeline.
« BACK TO TOPChristmas Tree
The arrangement of pipes and valves at the wellhead which controls the flow of oil and gas and prevents blowouts.
« BACK TO TOPCompletion
The procedure by which a successful well is readied for production.
« BACK TO TOPCompressor Station
Stations located every 60-80 km along a gas pipeline which recompress gas to ensure an even flow.
« BACK TO TOPConcession
A defined license area granted to a company for the exploration of oil and/or gas under specific terms and conditions for a fixed period of time.
« BACK TO TOPCondensate
Any mixture of relatively light hydrocarbons which remain liquid at normal temperature and pressure. Condensate generally appears when gas is drawn from a well and its temperature and pressure change sufficiently for some of it to become liquid petroleum.
« BACK TO TOPConventional Crude
Liquid petroleum that is capable of flowing naturally without any processing.
« BACK TO TOPCrown Lands
Government owned properties.
« BACK TO TOPCrude Oil
A mixture of hydrocarbons that exists as a liquid in natural underground reservoirs and remains liquid at atmospheric pressure after passing through surface separating facilities. Crude is the raw material which is refined into gasoline, heating oil, jet fuel, propane, petrochemicals, and other products.
« BACK TO TOPCubic feet per day (cf/d)
The number of cubic feet of natural gas produced from a well over a 24 hour period, normally an average figure from a longer period of time. Generally expressed as mcf/d = thousand cubic feet per day, mmcf/d = million cubic feet per day, or bcf = billion cubic feet per day.
« BACK TO TOPCubic Foot
The amount of gas required to fill a volume of one cubic foot.
« BACK TO TOPCushion Gas
The amount of gas required in a storage pool to maintain sufficient pressure to keep the working gas recoverable.
« BACK TO TOPDaisy Chain
The process by which a cargo of oil or oil products is sold many times before being delivered to the customer.
« BACK TO TOPDensity
The gravity of crude oil. Density is measured in kilograms of large, carbon-rich molecules per cubic metre or degrees on the American Petroleum Institute (API) gravity scale.
« BACK TO TOPDerrick
Steel structure mounted over the bore hole to support the drill pipe and other equipment which is lowered and raised during drilling operations.
« BACK TO TOPDiesel Fuel
Distillate fuel oil used in compression-ignition engines. It is similar to home heating oil, but must meet a certain number specification of 40 or more.
« BACK TO TOPDiscovery Well
An exploratory well that encounters a previously untapped oil or gas deposit.
« BACK TO TOPDistillate Fuel Oil
Products of refinery distillation sometimes referred to as middle distillates; kerosene, diesel fuel, and home heating oil.
« BACK TO TOPDownstream Sector
Refines and markets petroleum including pipeline systems, refineries, gas distribution, and petrochemical companies.
« BACK TO TOPDrill String
Steel pipes roughly 10m long joined together to form a pipe from the drill bit to the drilling platform. It is rotated during drilling and is also the conduit for the drilling mud.
« BACK TO TOPDrilling Mud
A mixture of clays, water, and chemicals used in drilling operations to lubricate and cool the drill bit, carry drilling wastes to the surface, prevent the walls of the well from collapsing, and to keep the upward flow of oil or gas under control.
« BACK TO TOPDry Gas
Gas containing no water vapor, same as lean gas.
« BACK TO TOPDry Hole
An unsuccessful well, drilled without finding commercial quantities of oil or gas.
« BACK TO TOPEnhanced oil recovery (EOR)
The recovery of oil from a reservoir other than by the use of natural reservoir pressure. This can involve increasing the pressure (secondary recovery) or heating or increasing the pore size of the reservoir (tertiary recovery).
« BACK TO TOPExploratory well
A well in an area where petroleum has not been previously found or one targeted for formations above or below known reservoirs.
« BACK TO TOPFarm-in
An outside party paying a land owner all or a percentage of the drilling costs of a well in order to obtain a working interest in the land or well.
« BACK TO TOPFarm-out
The land owner gives a percentage of his land or a portion of his working interest in a well in order to allow an outside party to drill or explore on his property. This generally reduces risk as capital is provided by the company farming-in.
« BACK TO TOPFault
A geological structure consisting of a fracture in the rock along which there has been an observable amount of displacement.
« BACK TO TOPFeedstock
The supply of crude oil, natural gas liquids, or natural gas to a refinery or petrochemical plant or the supply of some refined fraction of intermediate product to some other manufacturing process.
« BACK TO TOPField
The surface area above a petroleum formation.
« BACK TO TOPFlaring
The controlled and safe burning of gas which cannot be used for commercial or technical reasons.
« BACK TO TOPFractionation
The process whereby saturated hydrocarbons from natural gas are separated into distinct parts or "fractions" such as propane, butane, ethane, etc.
« BACK TO TOPFuel Oil
Refined petroleum products used as a fuel for home heating and industrial and utility boilers. Fuel oil is divided into two broad categories, distillate fuel oil, also known as No. 2 fuel, gasoil, or diesel fuel; and residual fuel oil, also known as No. 6 fuel, or outside the United States, just as fuel oil. No. 2 fuel is a light oil used for home heating, in compression ignition engines, and in light industrial applications. No. 6 oil is a heavy fuel used in large commercial, industrial, and electric utility boilers.
« BACK TO TOPGas Cap
In a field containing both gas and oil, some gas will often collect at the top of the reservoir in a single deposit known as a gas cap.
« BACK TO TOPGas Field
A field or group of reservoirs of hydrocarbons containing natural gas but insignificant quantities of oil.
« BACK TO TOPGasoline, Straight-Run
Also known as raw gasoline. Gasoline which is obtained directly from crude oil by fractional distillation. Straight-run gasoline generally must be upgraded to meet current motor fuel specifications.
« BACK TO TOPGathering Lines
Pipelines that move petroleum from wells to processing or transmission facilities.
« BACK TO TOPGeophones
Sensors used in seismic surveys capable of detecting the velocity of energy waves.
« BACK TO TOPHeating Oil
No. 2 fuel oil, a distillate fuel oil used either for domestic heating or in moderate capacity commercial-industrial burners.
« BACK TO TOPHeavy Crude
Oil with a gravity below 28 degrees API. Recovery generally involves an application of heat and steam. Canadian pipelines generally require oil to have a gravity of at least 21:2 degrees API. Heavier crudes must be blended with condensate or NGLs to be shipped by pipeline.
« BACK TO TOPHydrocarbon
Any compound or mix of compounds, solid, liquid or gas, comprised of carbon and hydrogen (e.g., coal, crude oil, and natural gas).
« BACK TO TOPIndependent
Term generally applies to a non-integrated oil or natural gas company, usually active in only one or two sectors of the industry. An independent marketer buys petroleum products from major or independent refiners and resells them under his own brand name or buys natural gas from producers and resells it. There are also independents which are active exclusively either in oil or gas production or refining.
« BACK TO TOPInfill Drilling
Drilling more wells into the same pool so that oil does not have to travel as far through the rock.
« BACK TO TOPInjection Well
A well used for injecting fluids into a formation in an attempt to increase recovery efficiency.
« BACK TO TOPJet Fuel
Kerosene-type; high-quality kerosene product used primarily as fuel for commercial turbojet and turboprop aircraft engines.
« BACK TO TOPJoint Venture
An investment undertaken by a consortium, usually with one member acting as the operator.
« BACK TO TOPLight Crude
Oil with a gravity of 28 degrees API or higher. High-quality light crude has a gravity of 40 degrees or higher.
« BACK TO TOPLiquefied Natural Gas (LNG)
Natural gas that has been liquefied for ease of transport by cooling the gas to -162·C. Natural gas has 600 times the volume of LNG.
« BACK TO TOPLiquefied Petroleum Gas (LPG)
Propane, butane, or propane-butane mixtures derived from crude oil refining or natural gas fractionation. For convenience of transportation, these gases are liquefied through pressurization.
« BACK TO TOPMaintenance
Routine repairs needed throughout the life of a well, usually required more for oil than for gas wells.
« BACK TO TOPMajor
A term broadly applied to those multinational oil companies which by virtue of size, age, or degree of integration are among the preeminent companies in the international petroleum industry.
« BACK TO TOPMarket Capitalization
Calculated by multiplying the number of outstanding shares by the current stock price. This represents the market's valuation of the company at that specific time.
« BACK TO TOPMaximum Rate Limit (MRL)
The maximum rate at which a well is legally permitted to produce, imposed by the Alberta Energy and Utilities Board.
« BACK TO TOPMCF
Thousand cubic feet.
« BACK TO TOPMercaptans
Strong smelling compounds of carbon, hydrogen, and sulphur found in gas and oil. Sometimes added to natural gas for safety reasons.
« BACK TO TOPMethane
The principal constituent of natural gas.
« BACK TO TOPMiddle Distillate
Hydrocarbons that are in the so-called "middle boiling range" of refinery distillation. Examples are heating oil, diesel fuels, and kerosene.
« BACK TO TOPMMBtu
One million British thermal units, one dekatherm. Approximately equal to a thousand cubic feet (Mcf) of natural gas.
« BACK TO TOPNaphtha
A volatile, colorless product of petroleum distillation. Used primarily as a paint solvent, cleaning fluid, and blendstock in gasoline production.
« BACK TO TOPNaphthenes
One of the three basic hydrocarbon classifications found naturally in crude oil. Naphthenes are widely used as petrochemical feedstocks.
« BACK TO TOPNatural Gas
A naturally occurring mixture of hydrocarbon and non-hydrocarbon gases found in porous rock formations. Its principal component is methane.
« BACK TO TOPNatural Gas Liquids (NGL)
A general term for all liquid products separated from natural gas in a gas processing plant. NGLs include propane, butane, ethane, and natural gasoline.
« BACK TO TOPNet Asset Value per Share (NAVPS)
Is the estimated worth of the company based on the current market value of all its assets less liabilities. Calculated by taking the present value of the company's reserves, subtracting long-term debt, and adding working capital. Usually discounted by 10-15%.
« BACK TO TOPNet Debt
Long-term debt plus working capital.
« BACK TO TOPNetback
The amount of money received per barrel of oil equivalent produced after subtracting operating costs, royalties, and general and administrative costs.
« BACK TO TOPNon-Associated Gas
Natural gas in a reservoir which contains no crude oil.
« BACK TO TOPOil in Place
The estimation of the real amount of oil in a reservoir.
« BACK TO TOPOPEC
Organization of Petroleum Exporting Countries.
« BACK TO TOPOperator
The party responsible for exploration, development, or production projects.
« BACK TO TOPOverriding Royalty Interest (ORRI)
Ownership in a percentage of production or production revenues, free of the cost of production, created by the lessee, company and/or working interest owner and paid by the lessee, company and/or working interest owner out of revenue from the well.« BACK TO TOP
Permeability
The capacity of a reservoir rock to transmit fluids.
« BACK TO TOPPetrochemical
An intermediate chemical derived from petroleum, hydrocarbon liquids, or natural gas, such as ethylene, propylene, benzene, toluene, and xylene.
« BACK TO TOPPetroleum
A natural mixture of hydrocarbons in gaseous, liquid, or solid form.
« BACK TO TOPPinnacle Reef
A conical formation where hydrocarbons may be trapped.
« BACK TO TOPPipeline
A pipe through which oil or natural gas is pumped between two points, either offshore or onshore.
« BACK TO TOPPool
A natural underground reservoir that either contains or appears to contain petroleum.
« BACK TO TOPPorosity
The open space within a rock, similar to a sponge.
« BACK TO TOPPossible Reserves
An estimate of possible oil and/or gas reserves based on geological and engineering data from undrilled or untested areas.
« BACK TO TOPProbable Reserves
An estimate of oil and/or gas reserves based on penetrated structures, but needing more advanced confirmation to be classified as proven reserves.
« BACK TO TOPProcessing
The separation of oil, gas, and natural gas liquids and the removal of impurities.
« BACK TO TOPProven Reserves
The quantity of oil and gas estimated to be recoverable from known fields under existing economic and operating conditions. Determined on the basis of drilling results, production, and historical trends.
« BACK TO TOPRaw Natural Gas
Natural gas containing impurities and unwanted substances that have to be removed.
« BACK TO TOPRecoverable Reserves
The proportion of hydrocarbons that can be recovered from a reservoir using existing techniques.
« BACK TO TOPRefinery
A complex of facilities where crude oil is separated into light or heavy fractions which are then converted into useable products.
« BACK TO TOPReserve Life Index
The number of years it would take to deplete proven reserves at the current production rate.
« BACK TO TOPReserve Replacement Ration
The quantity of added reserves for every barrel of oil equivalent produced.
« BACK TO TOPReservoir
Porous permeable rock containing petroleum.
« BACK TO TOPRich Gas
Gas which is predominately methane but with a relatively high proportion of other hydrocarbons.
« BACK TO TOPRoyalty Holiday
The Alberta Energy Commission grants royalty free wells in certain situations. For instance, the first 70,000 boe produced from a horizontal well are generally royalty fee.
« BACK TO TOPSeismic
Either two-dimensional or three-dimensional, computer assisted processing of sedimentary structures, assist in planning drilling programs.
« BACK TO TOPSolution Gas
Natural gas which is dissolved in the crude oil within the reservoir.
« BACK TO TOPSour gas
Contain large amounts of hydrogen sulphide or sulphur. In order to become sweet gas, the sulphur must be removed.
« BACK TO TOPSour or Sweet Crude
Industry terms which denote the relative degree of a given crude oil's sulfur content. Sour crude refers to those crudes with a comparatively high sulfur content, 0.5% by weight and above; sweet refers to those crudes with sulfur content of less than 0.5%.
« BACK TO TOPSpot Market
An international market in which oil or oil products are traded for immediate delivery at the current price.
« BACK TO TOPSpud
The commencement of drilling operations.
« BACK TO TOPSweet Oil/Gas
Petroleum which contains little or no hydrogen sulphate and as a result requires little processing.
« BACK TO TOPSyncline
A fold in layered rock in the form of a dip or bowl.
« BACK TO TOPTar Sands
Mixture of sand, water, and heavy hydrocarbons.
« BACK TO TOPTerminal
An onshore transit facility that receives and stores crude oil and products from offshore production facilities via pipeline and/or tankers.
« BACK TO TOPTransmission Pipeline
A network of pipelines distributing natural gas from an onshore station, via compressor stations, to storage centers or distribution points.
« BACK TO TOPUnderbalanced drilling
Occurs when the operator of the site uses specialized mud or gas while drilling to allow for formation fluids to rise to the surface and thus prevent damage to the prospective formation.
« BACK TO TOPUnitization
Owners of adjoining properties pool reserves together to form a single producing unit in which each has an interest.
« BACK TO TOPUpstream Industry
Produces petroleum, also referred to as upstream sector; namely, exploration and development companies, seismic ,and drilling contractors, service rig operators, engineering firms, etc.
« BACK TO TOPViscosity
The resistance to flow or "stickiness" of a fluid.
« BACK TO TOPWellhead
The control equipment fitted to the top of the well consisting of outlets, valves, blowout preventers, etc.
« BACK TO TOPWet Barrel
A physical barrel of crude oil or refined product as opposed to a "paper barrel."
« BACK TO TOPWet Gas
Natural gas containing condensable hydrocarbons.
« BACK TO TOPWildcat
A well drilled in an unexplored area.
« BACK TO TOPWorking Capital
Current assets minus current liabilities, shows a company's ability to meet its short-term obligations.
« BACK TO TOPWorkovers
Major repairs or modifications which restore or enhance production from a well.
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