Glossary

Numbers T-Z S P-R M-O H-L E-G C-D A-B

A-B
Barrel A volumetric unit of measure for crude oil and petroleum products, derived by the original use of spent whiskey barrels to hold oil in the 1800s. One barrel equals 42 US gallons, equivalent to 158.978 litres. Abbreviation: "bbl."
Basin A large area of lower elevation than surrounding areas.
BCF One BCF is one billion cubic feet of natural gas at standard distribution pressure of 14.73 pounds per square inch (101.56 kpa) and 60° Fahrenheit (15.55° Celcius).
BESBS BESB stands for "buy early, sell before spud". In a nutshell “besbs” involves buying stocks that are inactive and orphaned by the market and holding them until they move closer to drilling. The market wakes up and starts to accumulate the stock sending the price up. Time then for the patient and early investor to exit.The extent of the price movement and thus the potential gains depends on a number of factors, but gains are almost always guaranteed.
BOBN Buy on bad news.
BOPD The abbreviation for barrels of oil per day
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C-D
CBM Coal Bed Methane
Coal Bed Methane Natural gas, primarily methane that occurs naturally in the fractures and matrix of coal beds.
Drilling Fluid a mixture of clays and chemicals and water; pumped down the drill pipe to lubricate and cool the drilling bit and to flush out the cuttings and to strengthen the sides of the hole
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E-G
FPSO (Floating Production, Storage and Offloading) System A system contained on a large, tanker-type vessel and moored to the seafloor. An FPSO is designed to process and stow production from nearby subsea wells and to periodically offload the stored oil to a smaller shuttle tanker, which transports the oil to onshore facilities for further processing.
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H-L
Hydrocarbons A class of compounds containing hydrogen and carbon formed by the decomposition of plant and animal remains. These compounds include coal, oil, natural gas and other substances occurring in rocks.
IPO Initial Public Offering, this is when a company first issues share on a public exchange.
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M-O
MCF One MCF is one thousand cubic feet of natural gas at standard distribution pressure of 14.73 pounds per square inch (101.56 kpa) and 60° Fahrenheit (15.55° Celcius).
Natural Gas An odorless, colorless, gaseous hydrocarbon mixture made up of methane (CH 4 ) and a small percentage of other light hydrocarbons. Natural gas is found naturally underground or produced by gasification of coal. Natural gas is the cleanest burning fossil fuel. It is found in oil fields and natural gas fields, and in coal beds (as coalbed methane).
NYMEX A major trading exchange for commodities futures and options. The NYMEX is the largest commodity exchange in the world. Natural gas, petroleum products, electric power, coal and precious metals are all traded.
Oil Oil (sometimes called petroleum) is formed from the decayed remains of animals and plants. Under the influence of heat and pressure, the decayed matter breaks down first into liquids and into gases
Oil Classification The oil industry classifies "crude" by the location of its origin (e.g., "West Texas Intermediate, WTI" or "Brent") and often by its relative weight or viscosity ("light", "intermediate" or "heavy"); refiners may also refer to it as "sweet," which means it contains relatively little sulfur, or as "sour," which means it contains substantial amounts of sulfur and requires more refining in order to meet current product specifications. Each crude oil has unique molecular characteristics which are understood by the use of crude oil assay analysis in petroleum laboratories.
OPEC Acronym for Organization of Petroleum Exporting Countries founded in 1960 for unify and coordinate petroleum polices of the members. Headquarters is in Vienna, Austria
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P-R
PEL petroleum exploration licence
Petajoule A measure of energy equivalent to a thousand trillion joules, or 1,000,000,000,000,000 joules, or roughly 30 million kilowatt-hours. Usually used to express energy consumption by large customers such as cities or major industries, or cumulative output from commercial energy production facilities.
Reserves Reserves consist of oil and gas in the reservoir considered producible under existing economic and operating conditions. Proved reserves include those now developed (P1) and not yet developed (P2).
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S
Spud The first or initial act of boring of the hole in drilling of an oil or gas well.
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T-Z
Well A hole drilled or bored into the earth, usually cased with metal pipe, for the production of gas or oil. A hole for injection under pressure of water or gas into a subsurface rock formation.
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Numbers or Symbols
1P, 2P, 3P It is often said in the industry that 1P (Proved) Reserves can be borrowed against, 2P (Proved and Probable) Reserves can be contracted and 3P (Proved, Probable and Possible) Reserves are an indicator of future potential.
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