American Petroleum Institute

The industry standard method of expressing specific gravity of crude oils. Higher API gravities mean lower specific gravity and lighter oils.

Gas occurring in combination with crude oil, as distinct from gas occurring separately or manufactured from crude oil.

American Society for Testing Material which establishes many of the technical standards used in the oil industry

A barrel of 42 U.S. gallons of oil.

Billion cubic feet of natural gas.

Billion cubic feet equivalent, determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids.

Barrels of oil equivalent.

A measurement used in the oil industry for a unit of volume of oil or oil products equivalent to 158.978 litres or 42 US gallons. Abbreviated to "bbl".

A unit of measurement used in the industry for the production rates of oil fields, pipelines, and transportation. Abbreviated to "bpd", "b/d" or "bbl/d".

Industry measurement of actual refinery throughput as opposed to designed capacity. Derived by dividing the number of refined barrels of oil by the actual number of days the refinery was in operation. Abbreviated to "b/cd".

Crude oil or heavy fuel oil from the bottom of the refining process as opposed to "white" oil.

Refinery process using a catalyst whereby heavy heavy gas oil is converted to about 50% gasoline and 50% gases and gas oil for recycling.

The installation of permanent equipment for the production of oil or gas.

A term used to describe light liquid hydrocarbons separated from crude oil after production and sold separately.

Refinery process whereby large, heavy, complex hydrocarbon molecules are broken down into simpler and lighter molecules in order to derive a variety of fuel products.

A mineral oil consisting of a mixture of hydrocarbons of natural origin, yellow to black in colour, of variable specific gravity and viscosity

A well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon known to be productive.
Exploratory Well” means a well drilled to find and produce oil or gas in an unproved area, to find a new reservoir in a field previously found to be productive of oil or gas in another reservoir, or to extend a known reservoir.

The first stage in the refining process in which crude oil is heated and unfinished petroleum products are initially separated.

The oil industry term used to refer to all petroleum activities from the processing of refining crude oil into petroleum products to the distribution, marketing, and shipping of the products. The opposite of downstream is upstream .

Oil that is heavy-distilled in the refining process. Frequently used for supplying energy to power stations and factories.

A medium-distilled oil from the refining process. Often used in diesel fuel.

When used with respect to acres or wells, refers to the total acres or wells in which a company, individual, trust, or foundation has a working interest.

Compounds containing only the hydrogen and carbon atoms. May be in solid, liquid or gaseous form.

High pressure version of catalytic cracking in the presence of hydrogen.

A drilling technique that permits the operator to contact and intersect a larger portion of the producing horizon than conventional vertical drilling techniques and can result in both increased production rates and greater ultimate recoveries of hydrocarbons.

Natural gas liquified either by refrigeration or by by pressure.

A mixture of butane, propane and other light hydrocarbons derived from refining crude oil. At normal temperature it is a gas but it can be cooled or subjected to pressure to facilitate storage and transportation.

means thousand barrels of oil.

means thousand cubic feet of natural gas.

means 1,000 cubic feet equivalent, determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids.

means million barrels of oil.

means million barrels of oil equivalent.

means million cubic feet of natural gas.

means million cubic feet of gas equivalent, determined using the ratio of 6 Mcf of natural gas to 1 Bbl of crude oil, condensate or natural gas liquids.

Petroleum in gaseous form consisting of light hydrocarbons often found in association with oil. Methane is the most dominant component.

When used with respect to acres or wells, refers to gross acres of wells multiplied, in each case, by the percentage working interest owned by a company, individual, trust, or foundation.

means production that is owned by a company, individual, trust, or foundation, less royalties and production due others.

Term used to describe a company appointed by venture stake holders to take primary responsibility for day-to-day operations for a specific plant or activity.

means crude oil or condensate.

means the individual, company, trust, or foundation responsible for the exploration, development, and production of an oil or gas well or lease.

Chemicals such as ethylene, propylene and benzene that are derived from petroleum

Refining process which uses low temperature reforming to increase the octane value of gasoline

The ability of crude oil to flow at low temperatures.

Reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. Reserves on undrilled acreage are usually limited to those drilling units offsetting productive units that are reasonably certain of production when drilled. Proved reserves for other undrilled units can be claimed only where it can be demonstrated with certainty that there is continuity of production from the existing productive formation. Under no circumstances are estimates for proved undeveloped reserves generally attributed to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual tests in the area and in the same reservoir.
Present Value of Future Revenues” means the pretax present value of estimated future revenues to be generated from the production of proved reserves, net of estimated production and future development costs. Future net revenues are discounted to a present value of an annual discount rate whcih is typically 10%.

Reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. Additional oil and gas expected to be obtained through the application of fluid injection or other improved recovery techniques for supplementing the natural forces and mechanisms of primary recovery can be included as “proved developed reserves” only after testing by a pilot project, or after the operation of an installed program has confirmed through production response that increased recovery will be achieved.

The estimated quantities of crude oil, natural gas, and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, i.e., prices and costs as of the date the estimate is made. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not on escalations based upon future conditions.

1. Reservoirs are considered proved if economic producibility is supported by either actual production or conclusive formation test. The area of a reservoir considered proved includes: (a) that portion delineated by drilling and defined by gas-oil and/or oil-water contacts, if any; and (b) the immediately adjoining areas not yet drilled, but which can be reasonably judged as economically productive on the basis of available geological and engineering data. In the absence of information on fluid contacts, the lowest known structural occurrence of hydrocarbons controls the lower proved limit of the reservoir.
2. Reserves which can be produced economically through application of improved recovery techniques (such as fluid injection) are included in the “proved” classification when successful testing by a pilot project, or the operation of an installed program in the reservoir, provides support for the engineering analysis on which the project or program was based.

Estimates of proved reserves do not include the following: (a) oil that may become available from known reservoirs but is classified separately as “indicated additional reserves”; (b) crude oil, natural gas, and natural gas liquids, the recovery of which is subject to reasonable doubt because of uncertainty as to geology, reservoir characteristics, or economic factors; (c) crude oil, natural gas, and natural gas liquids that may occur in undrilled prospects; and, (d) crude oil, natural gas, and natural gas liquids that may be recovered from oil shales, coal, gilsonite, and other such sources.

Completion for production of an existing well bore in another formation from that in which the well has been previously completed.

Proved reserves.

An interest in an oil and gas lease that gives the owner of the interest the right to receive a portion of the production from the leased acreage (or of the proceeds of the sale of production), but generally does not require the owner to pay any portion of the costs of drilling or operating the wells on the leased acreage. Royalties may be either landowner’s royalties, which are reserved by the owner of the leased acreage at the time the lease is granted, or overriding royalties, which are usually reserved by an owner of the leasehold in connection with a transfer to a subsequent owner.

Refining is the process of converting crude oil into usable fuel products. A full description of refining and refining processes is available.

Refining margins are the difference in value between the products produced by a refinery and the value of the crude oil used to produce them. Refining margins will thus vary from refinery to refinery and depend on the price and characteristics of the crude used.

Refinery process aimed at improving gasoline quality by changing chemical characteristics rather than breaking up molecules as in cracking.

An economically recoverable quantity of crude oil or gas.

South African Bureau of Standards

Crude oil with a high sulphur content.

A measure of thedensity of a material usually obtained by comparing it with water.

Crude oil with a low sulphur content.

Synthetically petroleum products produced from coal, or natural gas.

Seismic data that is acquired and processed to yield a three-dimensional picture of the subsurface.

Enhanced recovery methods for the production of oil or gas. Enhanced recovery of crude oil requires a means for displacing oil from the reservoir rock, modifying the properties of the fluids in the reservoir and/or the reservoir rock to cause movement of oil in an efficient manner, and providing the energy and drive mechanism to force its flow to a production well. Chemicals or energy is injected as required for displacement and for the control of flow rate and flow pattern in the reservoir, and a fluid drive is provided to force the oil toward a production well.

Plant and equipment designed to receive and process crude oil or gas to remove water and impurities.

The primary distillation phase of a refinery process, and by derivation, the type of refinery and its yield of products

The total amount of raw materials processed by a refinery or other plant in a given period.

The processes of exploring for oil; developing oil fields; and producing oil from the oil fields. The opposite of upstream is downstream.

The resistance to flow

Lighter products from the top end of the refining process as distinct from 'black" oil.

Operations on a producing well to restore or increase production.

An interest in an oil and gas lease that gives the owner of the interest the right to drill for and produce oil and gas on the leased acreage and requires the owner to pay a share of the costs of drilling and production operations. The share of production to which a working interest owner is entitled will always be smaller than the share of costs that the working interest owner is required to bear, with the balance of the production accruing to the owners of royalties. For example, the owner of a 100% working interest in a lease burdened by a landowner’s royalty of 12.5% would be required to pay 100% of the costs of a well but would be entitled to retain 87.5% of the production.