Glossary of Oil and Gas Industry Acronyms, Terms, and Abbreviations
Simplifying The Complex Language of The Oil and Gas Industry
Simplifying The Complex Language of The Oil and Gas Industry
Accessible Education and Insights For Accredited Investors and Mineral Rights Owners
The oil and gas industry extracts and produces a critical energy source that powers the world—despite the push for green energy in recent years. It’s a lucrative industry but one that is highly scientific and complex. Thoroughbred Ventures is your partner in oil and gas exploration, extraction, and investment, and we’re here to provide a modicum of much-needed clarity to help you better understand oil and gas operations.
Glossary of Acronyms and Abbreviations
Oil and Gas Acronyms and Abbreviations
Oil and Gas Terms
Oil and Gas Acronyms and Abbreviations
- ABS / American Bureau of Shipping: A classification entity that promotes safety, security, and environmental protection for multiple industries, including oil and gas.
- API / American Petroleum Institute: A national trade association that
represents the oil and gas industry in the U.S. - AMT / Alternative Minimum Tax: A tax system that may apply to some taxpayers. They must calculate their tax liability twice and pay whichever amount is higher.
- BBL / Barrel: Unit of measurement for oil barrels equal to approximately 35 standard gallons.
- BCF / Billion Cubic Feet: Measuring gas by volume in billions of cubic feet.
- BOE / Barrels of Oil Equivalent: A unit of energy equivalent to the energy released by one barrel of oil.
- BOP / Blowout Preventer: Equipment for the wellhead that controls pressure while drilling.
- BOPD / Barrels of Oil Per Day: Measurement for the number of oil barrels produced daily.
- BTU / British Thermal Unit: A metric to measure the heat content required to raise the temperature. It takes one BTU to raise water temperature by 1 degree Fahrenheit.
- EOR / Enhanced Oil Recovery: Enhancing extraction by injecting carbon dioxide into the well to reduce viscosity.
- ESP / Electrical Submersible Pump: Equipment to lift high volumes of liquids from the well.
- GOR / Gas Oil Ratio: This refers to the cubic feet of gas produced for each barrel of oil.
- HSE / Health, Safety and Environment: Practices, policies, and procedures to minimize risk and enhance personnel safety and environmental protection.
- IDC / Intangible Drilling Costs: These are the costs associated with the drilling of wells that are 100% tax deductible and can’t be sold to recoup costs. This includes labor costs, fuel, drainage setup, repairs and maintenance, surveying and geological assessments, and more.
- LNG / Liquified Natural Gas: Gas that’s been cooled down to liquid form.
- MMCF / Million Cubic Feet: Measuring gas by volume in millions of cubic feet.
- MWD / Measurement While Drilling: During most drilling operations, measurements and data are sent to equipment at the surface in real-time.
- MD / Measured Depth: The total length of the wellbore, whether vertical or horizontal.
- NGL / Natural Gas Liquids: This refers to the hydrocarbons that are byproducts of natural gas processing, including ethane, butane, propane, and isobutane.
- TCF / Temporary Construction Facilities: Temporary buildings that are needed to support oil and gas well operations.
- TDS / Total Dissolved Solids: A measurement for dissolved substances present in a liquid in multiple forms.
- TVD / True Vertical Depth: The precise vertical distance from the wellbore to the surface.
Oil and Gas Terms
- Annulus: The space between the casing strings or between the casing and the wellbore.
- Bitumen: Petroleum in its sticky and thick form.
- Borehole: The extraction point for oil and gas from below the surface.
- Bottom Hole Pressure: The pressure at the bottom of the hole or extraction point.
- Derrick: Equipment that elevates and supports the drilling machinery.
- Downhole: Anything that occurs or is measured in the hole being drilled or downhole.
- Flowline: The pipeline that transfers oil from the wellhead to tanks or facilities
- Forced Pooling: A legal process that compels multiple mineral rights owners to pool together for the purpose of drilling and production.
- Hydraulic Fracturing (Fracking): A well stimulation technique involving the fracturing of formations in bedrock via high pressure injection of fracking fluid containing sand or other proppant into a wellbore to create pathways for oil and gas to be extracted.
- Kick-Off Point: The apex where the well deviates from vertical, directional drilling to hit a target location.
- Onshore: Land-based oil and gas exploration efforts, as opposed to offshore efforts in the ocean.
- Perforating: The practice of puncturing the casing in a well to allow enhanced hydrocarbon flow.
- Proppant: Sand or similar particulate material suspended in water or other fluid used in hydraulic fracturing.
- Pumpjack: A device that lifts liquid out of a well using a piston and a rod.
- Reservoir Engineer: Oil and gas expert specializing in hydrocarbon reservoirs.
- Resistivity: This metric measures the presence and saturation of hydrocarbons in natural resources.
- Saltwater Disposal: Saltwater is a natural byproduct of oil and gas extraction, and this disposal method injects it deep underground.
- Sediment: This could be water, asphalt, salt, or other impurities in crude oil.
- Seismic Surveys: The practice of mapping subsurface geography.
- Subsurface: Any earth or reservoirs that are underground.
- Tank Battery: A group of tanks used to store and process crude oil.
- Upstream: Referring to the first initial phases of oil and gas exploration.
- Viscosity: This measures the internal resistance of a fluid regarding how easily it flows.
- Well Log: Detailed records of the geological formations associated with a borehole to communicate the depth achieved over time.
- Wellhead: The surface component for well drilling and production.
- Wireline: Multi-conductor cabling that is used to convey oil from the well to the surface.
- Working Interest: This term refers to any invested parties responsible for funding operational costs associated with the drilling of wells.
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Disclaimer: No information here should be construed as a guarantee of profit or an offer to invest. There is always risk associated with speculative oil and gas operations, and they represent some level of liquidity risk. Nor should this content be deemed tax advice or legal counsel. TBV works only with accredited investors, and those who meet the requirements should consult with personal or financial consultants before investing.