Glossary of Oil & Gas Terms

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Abandoned Well
Transforming a well that was once active but is no longer able to produce oil or natural gas into one that can be left in place forever Oil and gas production machinery has been completely dismantled, and the well has been worked on to ensure that it won't impact the surrounding ecosystem or people.
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Accelerated capital cost allowance (CCA)
CCA essentially functions as an annual deduction that Revenue Canada (CRA) permits to deduct a percentage of an asset's cost. For instance, since a computer will probably live at least three years or longer, you cannot expense the entire cost of the computer in one year. An asset is given a useful life and a rate at which it should be expensed annually. A firm can reduce the amount of time an asset is usable by using an accelerated CCA, which enables them to deduct the capital cost more quickly.
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Acre-Feet
The thickness of one foot is one acre of a producing formation. An acre-foot is equal to 7,758 barrels, 325,829 gallons, or 43,560 cubic feet.
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Acreage
Either land that Mineral View owns the mineral rights to or land that is leased for oil and gas exploration.
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Active Well
A well that is presently generating natural gas or oil.
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Ad Valorem Tax
Latin for in accordance with value. Taxes are imposed at the county level on the production of minerals.
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Aggregate Pay Laws
According to various state legislation, oil and gas revenue distributors are not required to cut checks every month unless the total amount owing exceeds a certain level. This costs $25 or $100 in the majority of states. No matter how little the amount owed is, at the very least, a check needs to be written each tax year.
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Allowable
Quantity of oil or natural gas that a well, leasehold, or field is permitted to produce monthly by Texas Railroad Commission proration orders (RRC).
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American Petroleum Institute (API)
The trade association for the oil and gas sector is called the American Petroleum Institute. In addition to providing statistical and other information to related authorities, API's research and engineering work serves as a foundation for creating operational and safety standard issues and specifications for the construction of oil field equipment. API can be found at www.api.org.
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Anticline
A convex formation of rock strata that rise upward and could act as a trap for hydrocarbons.
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API
United States Institute of Oil. the largest trade group for the oil and natural gas sector in the United States.
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API Gravity
The API gravity, or American Petroleum Institute gravity, is a measurement of how heavy or light a petroleum liquid is in relation to water: if the API gravity is greater than 10, the petroleum liquid is lighter and floats; if the API gravity is lower than 10, the petroleum liquid is heavier and sinks. How many barrels of crude oil can be produced per metric tonne can be determined using API gravity. Given that an oil's market worth is heavily influenced by its weight, API is a crucial metric.
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API Number
A special identification code for each oil and gas well drilled in the United States. The American Petroleum Institute created the system. A well API number may contain up to 14 digits. The state code is represented by the first two digits, the county code by the following three digits, the well's unique identification number by the following five digits, and occasionally by an additional two digits that represent a sidetrack code and an additional two digits that represent a series of events.
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Aquifer
A subsurface layer of permeable rock or unconsolidated materials (gravel, sand, silt, or clay) that is capable of allowing the extraction of groundwater through the use of a water well.
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ASME
Association of American Mechanical Engineers. More than 100 nations adopt the regulations and standards that ASME creates for the art, science, and practice of mechanical engineering. For instance, the ASME B16.5 standards address the pressure-temperature ratings, materials, dimensions, tolerances, marking, and testing of steel pipe flanges and flanged fittings.
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Assignment
The contract by which oil and gas leases, royalties, or overriding royalties are transferred or allocated.
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Associate Reservoir
With a gas cap, an oil and gas reservoir. In order to protect the gas cap energy and maximize eventual recovery, gas output from these reservoirs is typically constrained.
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Barrel of oil equivalent (BOE)
A unit of measurement that is used to combine oil and gas resources or output; one BOE is roughly equivalent to 6,000 cubic feet of natural gas.
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Barrel, Bbl
A barrel is defined in the oil and natural gas industry as 42 US gallons at 60°F.
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Basic Sediment and Water, BS&W
Water and impurities are present in the crude fluid that an oil well produces.
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Basin
A significant, natural depression on the surface of the Earth where sediments, typically transported by water, collect.
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Battery
Storage and processing equipment for crude oil from one or more wells.
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BCF
A unit of measurement for a billion cubic feet of gas.
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Bean Choke
Usually put on or near a Christmas tree, a bean choke or permanent choke is used to regulate the flow of fluids.
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Benchmarking Measures
Information and data that serve as a benchmark against which industry performance is assessed.
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Benzene
A naturally occurring, light aromatic hydrocarbon that is produced when oil and natural gas are extracted. It is regarded as a non-threshold carcinogen and a risk to both occupational and general health.
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Big Bear
One of the more peculiar oil and gas expressions. A large bear is a hitch, which is a stretch of at least 50 continuous days spent working on an oil rig.
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Bit
A hole-cutting drilling device. Bits are created using two fundamental yet dissimilar principles. To crush, the cable tool bit oscillates up and down. To grind, the rotary bit rotates.
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Bitumen
A type of crude oil that is extremely viscous (more than 10,000 centipoise) and resembles cold molasses (at room temperature). In order to create bitumen, it must be heated or mixed with lighter hydrocarbons. Sulfur, metals, and other non-hydrocarbons are present in its natural state.
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Blowout Preventor, BP
Casinghead machinery closes around the drill pipe or plugs the well to stop the unchecked flow of oil, gas, and mud.
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BOPD
Daily oil production in barrels.
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Borehole
A drilling rig-made crater in the ground.
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Bottom Hole Pressure, BHP
The force exerted by a well at its wellbore or bottom. Usually expressed in pounds per square inch, or PSI. An abbreviation commonly used to refer to bottom-hole pressure is BHP.
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Boyle's Law
The volume is inversely proportional to the pressure according to a physical law that states when a gas is compressed and kept at a constant temperature, the product of the pressure and volume is a constant amount.
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Brine
A different term for seawater.
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British Thermal Unit, BTU
The amount of heat needed to raise a pound of water's temperature by one degree Fahrenheit under normal pressure and temperature circumstances.
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BTU Factor
To get the heating value of gas, which is expressed in millions of British Thermal Units, a number is multiplied by the amount of gas measured in MCF (MMBTU).
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C-ring Tanks
A sizable, on-site containment system for the secure storage of oil and gas production water.
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CAPEX
Capital investments.
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Carbon Capture and Storage (CCS)
The process of removing carbon dioxide (CO2) from the atmosphere before it is released during the burning of fossil fuels. The carbon dioxide is subsequently kept underground in carefully chosen rock formations created by geological processes.
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Carbon dioxide equivalents (CO2e)
The measurement of the amount of CO2 that, measured over a certain timeframe, would have the same global warming potential (GWP) for a given composition and amount of greenhouse gas (generally 100 years).
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Carbon intensity
The volume of emissions of greenhouse gases necessary to produce an intermediate or finished good. Carbon intensity is frequently represented for the oil and gas sector in terms of Tonnes CO2e per product volume (for example, Tonnes CO2e/bbl or Tonnes CO2e/MCF).
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Carbon Leakage
Carbon leakage is the transfer of greenhouse gas emissions from one country to another throughout the globe. This happens when businesses decide to relocate the production of oil and natural gas to an area with lower costs, but frequently with fewer or no environmental controls. Net global greenhouse gas emissions do not decrease as a result.
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Carbon sequestration
The biological or physical mechanisms that fix atmospheric carbon dioxide in a carbon sink.
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Carbon sink
A holding place for released carbon from another stage of the carbon cycle. The atmosphere, terrestrial biosphere (which typically includes freshwater systems), seas, and sediments are the four sinks, or parts of the Earth where carbon behaves in a predictable way (including fossil fuels).
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Casing
To prevent the hole from collapsing and to block off formation fluids, pipe was cemented into the well.
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Casinghead Gas
Oil and gas are produced in oil wells. Through the casinghead at the well's top, gas is drawn from the well.
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Catalytic Cracking
A method of refinement that reduces big, complicated hydrocarbon molecules into smaller ones. The cracking process uses a catalyst to quicken the chemical reactions.
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Centrifugal Pump
The most popular kind of pump utilized in the oil and gas industry for transferring fluids. Fluid is moved by rotation through centrifugal force, which draws fluid into the suction end of the pump and propels it out of the discharge end.
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Check Meter
A second meter put in place at the well site to "check" the primary one.
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Christmas Tree
The ground-level equipment on the well that controls the flow of gas and other petroleum products. This equipment includes pipelines, valves, gauges, and other components.
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Clamshell
A portable machine tool called a clamshell or clamshell cutter clamps around pipework to either cut or bevel the pipe.
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CO2
Carbon dioxide is shortened.
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Coalbed Methane (CBM)
In coal seams, natural gas is produced and trapped.
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Commercial Well
A well that produces enough gas and/or oil that the profits from selling the production outweigh the directly associated costs.
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Commodities
A well that produces enough gas and/or oil that the profits from selling the production outweigh the directly associated costs.
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Commodity Prices
Items that are widely manufactured and whose quality is consistent no matter where it is produced. Examples include foods, energy sources, metals, and money, among others.
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Completion
This is what happens right away when the drilling procedure is finished. This calls for the installation of sand screens, downhole pumps, packers, casing, tubing, and potentially even hydraulic fracturing.
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Compliant Tower
A kind of oil rig that operates at depths of up to 3000 feet and has a permanent tower attached to the ocean floor.
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Compound annual growth rate (CAGR)
The typical annual growth rate of a statistic over a given time period.
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Compression
In order to transfer natural gas from the wellhead into pipelines for onward transmission to market, it is frequently necessary to compress it to a greater pressure.
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Condensate, Lease Condensate
A mixture of low-density hydrocarbon liquids that are frequently found in the raw production stream coming from an oil or gas well as gaseous constituents.
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Contiguous Tract
A piece of land whose perimeter is continuous and unbroken.
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Conventional Crude Oil
Petroleum that is liquid, flowing naturally, or that can be pumped without being altered or diluted.
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Conventional resources
Rocks having a relatively high matrix permeability and often high recovery coefficients that contain discrete accumulations of hydrocarbons.
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Cost Depletion
One of the two methods of calculation that the IRS permits for figuring the depletion allowance on oil and gas royalty income. Percentage depletion is the name of the alternative methodology.
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Criteria Air Contaminants (CAC)
Emissions of different air pollutants, which have an impact on human health and cause issues with air pollution like smog. Environment Canada keeps track of CACs.
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Crude Oil
Petroleum that is liquid and raw when it is extracted from the ground is distinct from refined oils that are made from it.
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Cubic Foot of Gas, Standard Cubic Foot of Gas
1,728 cubic inches, measured in terms of volume. 7.48 gallons of water, applied. In relation to natural gas, the volume of gas that takes up one cubic foot of space when saturated with water vapor at 60°F and a pressure of 30 inches of mercury.
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Cumulative Effects
Environmental modifications brought forth by a particular action in conjunction with other recent, ongoing, and reasonably foreseen human activities.
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Cumulative Production
Current oil or gas production.
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Curative
The procedure that straightens out any flaws in the title chain and clears up a title.
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Cyclic Steam Stimulation (CSS)
Using steam to heat up and thin heavy oil in a well within a reservoir, allowing it to flow via the same well.
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D&A
Dry and unoccupied Describes gas and oil wells.
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Decline Curve
The visual depiction of how the rate of hydrocarbon production varies over time.
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Decline Rate
The rate of variation in a well's oil and gas production.
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Declining balance
The falling balance technique is an accelerated depreciation methodology used in accounting, where bigger depreciation charges are recorded in the early years of an asset's useful life and lesser depreciation expenses are recorded in the later years. There are bigger depreciations in the beginning and fewer deprecations in later years, rather with the depreciation being equal each year.
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Defects in Title
Items that either seem to be or are troublesome in terms of having a clear title. A clear title is one that is free of any doubts or encumbrances regarding ownership.
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Dehydration
The method of extracting produced natural gas's water vapor. This is done to ensure that the raw gas stream meets the minimum requirements for transportation through the pipeline network.
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Delay Rental
Payments provided to Lessor on an annual basis during the initial term to cover the delay in drilling.
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Density
The ratio of mass to volume is known as density in physical terms. The American Petroleum Institute (API) gravity scale or kilogrammes per cubic metre (kg/m3) are used to express the density of oil. Oil up to 900 kg/m3 is regarded as light to medium crude in Western Canada; oil above this density is classified as heavy oil or bitumen.
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Depletion
The process through which a producing reservoir is drained (or produced) of all of its hydrocarbon in terms of oil and gas output.
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Depletion Allowance
The IRS-approved tax deduction for royalty and mineral owners intended to counteract the loss in value of a capital investment brought on by the extraction (depletion) of minerals.
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Derrick
A tapering tower that is often made of an open steel structure and is used in oil and gas well drilling to support the equipment that is lowered down the hole.
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Developed acreage
The number of acres assigned or assignable to productive wells or wells with the potential to produce.
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Developed reserves
Reserves that, if extracted by a method other than a well, would require installed equipment and infrastructure to be operational at the time of the reserves estimate. Alternatively, reserves that could be expected to be recovered using existing wells with existing equipment and operating techniques.
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Development well
A well that has been dug to the depth of a geological horizon that is known to be productive inside the proven area of an oil or gas deposit.
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Dilbit
Bitumen that has been diluted with one or more lighter petroleum products known as diluents, such as natural-gas condensates like naphtha, is known as dilbit (diluted bitumen). Bitumen is more easier to transport when diluted, for instance through pipelines.
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Diluent
Petroleum compounds with a lower viscosity are used to thin bitumen before it is transported through pipelines.
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Direct Participation
As opposed to owning a stake in the stock or partnership of an oil firm, financial participation in the actual costs of digging a certain well or wells.
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Directional Drilling
The use of specialised equipment and methods to drill a wellbore at a specific angle. The wellbore is ultimately drilled at an angle of +/- 90 degrees to the vertical direction in horizontal drilling, a type of directional drilling.
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Directional Well
Directional wells are used to drill several wells from a single drilling pad or to reach a subterranean area beneath land where drilling cannot be done. Directional wells are drilled at an angle from the vertical by utilizing a slanted drilling rig or by deflecting the drill bit.
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Discovery Well
The initial gas or oil well dug in a new field. The discovery well is the one that is dug to actually find a reservoir that contains petroleum. Development wells are the following wells.
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Dissolved Gas
Officially known as solution gas.
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Distillate Fuel Oils
Fuel oils are distillation byproducts. They consist of substances used for space heating and diesel fuel.
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Division Order
A list of owners and their decimal ownership stake in the profits from the sale of an oil or gas well's production.
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Division Order Title Opinion
An opinion detailing the names and decimal ownership interests inside a producing oil or gas well, unit, or lease that is often issued by an attorney.
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Downstream
This phrase refers to oil and gas operations that take place after the sales meter.
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Downstream
The third stage of the oil and gas business is the downstream industry (upstream, midstream, downstream). It addresses distribution as well as processing at refineries and petrochemical facilities.
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Downstream Sector
The petroleum industry's marketing and refining division. (Petrol stations, refineries, etc.)
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Drill Bit
A piece attached to the end of a drilling string that is used to drill into the ground. As the pipe revolves, drill bits chip and cut small pieces of rock.
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Drill String
A column or long line of pipes used to deliver torque and drilling fluid to the drill bit through mud pumps.
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Drilling Mud, Drilling Fluid
Fluid that creates enough hydrostatic weight to prevent blowouts and lubricates the drill string, line, well walls, flushes cuttings to the surface, and other equipment.
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Drilling Rig
Drilling equipment is used for drilling holes in the earth. Today, most drilling is performed with rotary drills.
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Dry gas
In the absence of liquid hydrocarbons or after natural gas has been processed to eliminate liquid hydrocarbons and contaminants, dry gas-which is essentially entirely methane-occurs.
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Dry hole
A well that is unable to economically produce enough marketable hydrocarbons to warrant commercial development.
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DWS
A subsea decommissioning diamond wire saw.
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E&P
Production and exploration.
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Easement
A formed interest known as an easement permits use for a specific purpose. This is most frequently used in the oil and gas industry to establish and run pipelines.
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Economically Producible
A resource that produces income that outpaces operating expenses or that can be counted on to do so.
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Ecosystem
A biological community of organisms and their physical environment make up an ecosystem. They might be terrestrial, aquatic, or marine.
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Electric Log
A subsurface recording that shows how a well's rock formation responds to electric current to reveal its properties.
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Elephant
An oil field with more than 100 million recoverable barrels of oil is called a "elephant".
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Enhanced Oil Recovery (EOR)
Any technology or material used to boost oil output that is not typically used in pressure maintenance or water flooding operations. Injecting natural gas into a reservoir, for instance, can "enhance" or boost oil production.
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Environmental Assessment
A research that may be necessary to evaluate a project's potential direct, indirect, and overall environmental effects.
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Equivalent Barrels
Based on an equal energy content, the amount of natural gas and natural gas liquids was converted into barrels of oil. Six thousand cubic feet of gas (6 MCF) has roughly the same amount of energy as one barrel of oil.
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Escheated
This is the procedure used today to restore property to the state, typically the state comptroller's office, when there is no claimant.
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Established Reserves
The portion of the found resource base that is thought to be economically feasible to extract using current technologies. includes a portion of the likely and the proved (usually 50 per cent).
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Estimated Ultimate Recovery (EUR)
The total of cumulative output and remaining reserves as of a particular date.
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Executive Rights to Minerals
The ability to negotiate and complete oil and gas leases, lease bonuses, and delay rentals are examples of executive rights.\b When a Non-Participating Royalty Interest exists, the executive right is typically referred to. Executive rights are held by the mineral fee estate owner.
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Exploration
The look for gas and oil. Aerial surveys, geophysical surveys, geological studies, core testing, and test (wildcat) well drilling are all examples of exploration activities.
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Exploratory Well
Any well that has been dug to obtain geological or geophysical data for use in the search for or development of mineral resources, including geothermal, oil, or gas.
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Exponential Decline
A single decline rate used over the course of a well's life.
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Extraction
A method specific to the oil sands sector for separating bitumen from its source (oil sands).
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Extraction Loss
The decrease in natural gas's volume and energy content brought on by the elimination of its natural gas liquid components.
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Farm-In
A deal whereby an operator purchases or gains a stake in a lease that belongs to another operator and is where oil or gas has been found or is being produced. Farm-ins are frequently negotiated to assist the original owner with development costs and to guarantee the buyer a supply of natural gas or crude oil.
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Farm-Out
An oil and gas lease may be fully or partially assigned from one lessee to another. Additionally known as a farm-out or farm out.
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Fault Trap
A rock plane that has been fractured and broken, creating a structural trap in the soil that is conducive to the retention of petroleum.
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FEED
Front-end engineering and design are stages in the life cycle of a project.
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Feedstock
Raw material given to an oil sands upgrader or refinery. For instance, crude oil is used as a feedstock in the refining of gasoline.
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Field
An area made up of one or more hydrocarbon reservoirs that are all linked together or connected by a same geological structure or stratigraphic condition.
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Field Rules
State-mandated spacing and production guidelines for a regional shared reservoir.
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Field Run Ticket
A written record that was filled up by the buyer's or transporter's representative and shows how much crude oil was extracted from a well.
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Field-Wide Unit
Integrating all wells and ownership stakes in a field as a whole in order to maximize overall profit for all parties. Field wide unitization is a technique that is more frequently utilized in offshore fields and onshore areas that need increased recovery.
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Finger
A Finger is a professional who has been around long enough to stop being a worm but is not as intelligent as a Hand. Drill Finger, for example, or Frac Finger.
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First Purchaser
Who first pays for and receives ownership of an oil or gas well's production.
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First Right of Refusal
A clause in leases that specifies that the operator has the first option to lease before anybody else. (In actuality, this is an option—the opportunity to look over and thwart a transaction by another party).
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Fish
A drill collar, piece of junk metal, or tool that was unintentionally left in the wellbore.
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Fixed Platform
A kind of oil platform for shallower depths of up to 1500 feet that is comparable to a compliance tower.
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Flange Facing
To ensure the flange union is secure, a spiral groove surface finish is machined onto the flange. Check out these flange-facing machines.
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Flaring
Natural gas burning for safety concerns, when there is no method to transport it to a market, or when it can be used for other advantageous uses (such as EOR or reservoir pressure maintenance). As pipelines are finished and in response to environmental concerns, flaring is being gradually reduced.
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Floating production, storage and offloading (FPSO)
Offers a substitute for pipelines for the storage of oil output and loading of boats for transportation to markets.
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Flowback
A water-based fracking fluid that, after completing hydraulic fracturing of a shale gas reservoir, flows back to the earth's surface.
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Flowlines
The pipes in question link a manifold and a wellhead. Before the risers, which raise the product toward the platform, are these.
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Flush Production
This expression is used to describe the initial "rush" of production that often occurs after a producing well is finished and brought online. This flow rate is typically substantially higher than the sustained pace. Operators may also refer to flush production as peak flow rate.
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Forced Pooling or Force Pooled
Being compelled by state legislation to join an oil and/or gas production facility commonly known as Force Pooled.
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Formation
Geological word for a distinct rock layer or collection of interspersed beds.
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Fossil fuel
A fuel source that was created in the soil from plant or animal waste (such as coal, oil, condensate, natural gas, or natural gas liquids).
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FPSO
Production storage and offloading ship that floats. designed to receive oil from adjacent platforms, on-site production, or subsea templates. Afterward, oil needs to be processed and stored until it can be loaded onto a tanker.
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Fracking, Fracture, Fracing, Frac Job
The procedure of improving flow into a well bore by pumping sand-filled, gelled fluid into underground rock formations under high pressure.
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Free Water Knockout
A container used close to a well to segregate produced brine and crude oil. These are typically utilized when there is a large amount of produced water. additionally known as an oil-water separator.
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Fresh Water
Fresh water, which is found at shallower depths, is distinguished from salt water or brine, which is typically present in conjunction with hydrocarbons, in terms of oil and gas production. For hydraulic fracturing, fresh water or water that has a specific purity is required.
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Fuel and Shrinkage
The variation in gas production between the wellhead and when it reaches a pipeline for sale. The losses come from the separation procedure, field use, and the extraction of fuel, flare gas, and plant liquids, among other things.
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Fugitive Emissions
Emissions of gases or vapors from pipelines or other pressurized equipment as a result of leaks, accidental releases, or irregular releases.
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G&P
Processing and Compiling.
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Gas Lift
The action of pumping fluid from a well using gas that has been pumped down the well through tubing or the tubing casing annulus. The fluid is forced out of the well bore by the gas injection, which aerates the fluid and reduces its density.
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Gas Oil Ratio, GOR
Per barrel of oil, the amount of gas produced in cubic feet.
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Gatherer
Contains any pipeline, truck, car, boat, barge, or anybody with the authority to collect or accept oil, gas, or geothermal resources from lease production or lease storage.
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Geophone
A coustical sensor for gathering reflected waves that is utilized in seismic exploration.
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Ginzel
Slang for the lowest "rank" of employee, frequently a new hire with no prior oilfield expertise.
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Global-warming potential (GWP)
A measure of how much heat is trapped in the atmosphere by a greenhouse gas. It contrasts the heat held in a certain mass of the gas in question with the heat held in a comparable mass of carbon dioxide. GWP is estimated over a predetermined time frame, often 100 years. The global warming potential is stated as a multiple of carbon dioxide (whose GWP is standardized to 1).
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Glycol Dehydrator
Agricultural equipment that uses triethylene glycol or diethylene glycol to remove water from natural gas.
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Grantee
A recipient of lands, minerals, etc.
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Grantor
A person who grants or transfers mineral rights, land, etc.
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Greenhouse gas
Long-wave radiant energy cannot escape the Earth's atmosphere due to atmospheric gases that are transparent to solar (short-wave) radiation but opaque to long-wave (infrared) radiation. These gases have a tendency to warm the surface of the planet and trap absorbed radiation as their overall impact. Carbon dioxide, methane, and nitrous oxide are the greenhouse gases that the oil and gas industry is most concerned about.
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Greenhouse Gas Intensity (GHG Intensity)
The typical rate of a particular greenhouse gas from a particular source. For instance, the amount of greenhouse gases produced every barrel.
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Groundwater
Water that is found underground in voids and fissures in rock, sand, and soil is known as groundwater. Aquifers are geologic formations of soil, sand, and rocks where it is stored and slowly circulates.
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Gun Barrel Separator
A vertical separator that separates gas, water, and oil that is situated close to the wellhead.
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Gusher
A well that produces oil at pressure so high that it spills out of the well head and into the air. Gushers in such wells were once ubiquitous, but because to improved drilling techniques, particularly the use of drilling mud, they are now extremely uncommon.
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Harmonic Decline
Non-exponential decline rates that are more prominent or steeper. It takes into account the decline's "slope" or bending to conform to a decline profile.
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Heavy Crude Oil
Crude oil having a 20° or lower API gravity. Since heavy oil has a high viscosity, it typically does not flow smoothly.
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Held By Production, HBP
As long as the land produces a certain amount of oil and gas, a mineral lease clause that extends the right to operate a lease is in place.
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Henry Hub
The Henry Hub, a pipeline interchange and delivery location for the New York Mercantile Exchange's (NYMEX) natural gas futures contracts, is situated in Erath, Louisiana.
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Hitch
A "hitch" is the term used by rig workers to describe their shift. A normal hitch consists of 20 days on and 10 days off.
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Horizontal Drilling
A drilling method that gradually rotates a well from vertical to horizontal to provide greater access to an oil or natural gas reserve. More than a mile long horizontal laterals are possible. In general, longer exposure times increase the amount of oil and gas that can be collected from a well and frequently enable for fewer wells to be needed to develop a field, minimizing surface disturbance. Since the 1980s, horizontal drilling technology has been widely employed and is suitable for many, but not all, advances.
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Horizontal Pugh Clause
It is common to include a clause in an oil lease that prohibits owning non-producing areas after the initial period has expired. also referred to as a Pugh Clause or a Freestone Rider.
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Hot Tapping
Tapping into a pipeline to include a new branch, valve, pump, or length of pipe. A hot tapping machine and a line stop actuator are used to do this, allowing the procedure to be completed without interrupting the flow of product through the pipe.
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Hot Water Process
A process created by Karl Clark of the Alberta Research Council that uses hot water and caustic soda to separate bitumen from oil sand.
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HPU
Unit with hydraulic power. One illustration is a machine that powers in-situ machining tools like clamshell case cutters and flange facing machines.
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Hydraulic fracturing fluids
Low permeability deposits are hydraulically fractured using a proppant and water mixture with trace levels of chemical additives. Usually, the mixture contains up to 99.5 percent each of water and sand. For additional information, see our fact page on hydraulic fracturing fluid.
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Hydraulic Fracturing Fluids In Situ
Consist mainly of water and sand (98.5%), with the remaining 1.5% being additions.
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Hydrocarbon
Petroleum is a hydrogen and carbon organic chemical molecule. The simplest hydrocarbon compound, methane (CH4), which is a component of natural gas, has a fairly simple molecular structure compared to the more heavy and complex ones. One of the heavier, more complicated compounds is octane, which is a component of crude oil.
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Hyperbolic Decline
Modest multiple drop rates, nonexponential. It takes into account the decline's "slope" or bending to conform to a decreased profile. Early in the well's life, hyperbolic curves decrease more quickly; as time passes, they decline more slowly.
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Improved oil recovery (IOR)
Term used to describe techniques designed to increase oil or natural gas recovery or to improve the flow of hydrocarbons from the reservoir to the wellbore. One type of IOR would be enhanced oil recovery (EOR).
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In Situ
Open-pit mining and in situ technologies are the two main ways that oil from oil sands is produced. In situ is latin for "in place." It is mined to obtain bitumen near the surface. Using specialised extraction methods, bitumen is created in place deep within the earth.
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In-situ recovery
Methods for extracting hydrocarbons from deposits of bitumen, oil shale, or extra-heavy crude oil without removing the soil or other overburden materials.
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Inactive Well
A well that hasn't produced gas or oil for a year.
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Independent Producer
A corporation that specializes in energy production and exploration, typically lacking marketing, transportation, or refining capabilities. also referred to as an oil sector non-integrated producing firm.
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Induced Seismicity
Seismic activity that is brought on by human activity.
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Infill Drilling
On a lease, wells are drilled between operational producing wells to boost reservoir production.
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Infill wells
A well that was drilled into the same reservoir as a well that was already producing helped speed up or improve recovery. The reason for this is that oil or natural gas had to travel a shorter distance through the formation.
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Initial Established
Prior to production, establish reserves.
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Initial Production, IP
The initial flow rate coming from a well.
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Injection Well
To inject fluid underground into porous geologic formations, a well is employed. This could be water, steam, carbon dioxide, or other fluids to assist keep the pressure in the reservoir stable, heat the oil, or lessen its viscosity so that it can flow to a nearby producing well.
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Intangible Drilling Costs, IDC
Expenditures associated with drilling a well that are not related to leasehold or equipment. Even if the well is profitable, these costs are entirely tax deductible.
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Integrated Company
A business that works in almost every facet of the oil and gas sector, including production, transportation, refining, and marketing. Major oil firms is another name for these businesses.
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Intelligent Well
A facility that has monitoring tools and completion elements that can be changed, automatically or with some operator assistance, to maximise production.
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Interest
A claim or right to a piece of property.
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Intermediate Casing
Before the production casing and following the surface casing is a string of casings. The intermediate casing string prevents weak or excessively pressurized formations from caving and makes it possible to manage lower formations by using drilling fluids of various densities.
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Intestate Death
A passing away that takes place in the absence of a valid will designating the beneficiaries of the deceased's inheritance.
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Jack-up rig
A steel offshore rig with retractable legs that is set on the seabed and raised above the water.
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Jacket
The steel framework of a fixed offshore platform that supports the deck and topsides.
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Joint operating agreement (JOA)
An agreement defining, among other things, how costs and profits are to be distributed among the parties and who is the operator, that governs the rights and obligations of co-owners in a field or undeveloped territory.
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Junk Basket
A big, rectangular steel box with expanded metal sides typically used to allow visibility within. The drilling rig crew uses the rubbish basket to store a variety of relatively tiny drilling rig components, such as drill bits, crossover subs, and lifting subs.
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Kelly Drive
A particular kind of well drilling tool that inserts a piece of pipe with a (three, four, six, or eight-sided) or splined outer surface through the rotary table's matching bushing.
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Kill
The process of halting a well's flow.
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Kill-weight Mud
A chemical that is used to prevent blowouts or well control loss. usually created by adding barite or hematite to some of the system's mud to make it heavier.
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Land Brokerage Company
A business that provides oil and gas operators with services to help them find leases. Independent landmen frequently work for a land brokerage firm.
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Land Department
This is often the name given to the division within an oil firm that is in charge of all matters pertaining to acquiring and managing mineral and surface rights so that the company can conduct oil and gas exploration and production.
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Landman
A man or woman whose job it is to get in touch with owners of mineral rights about leasing those rights for the production of oil and gas. Landmen frequently work on their own.
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Lease
A legal agreement signed by a mineral owner and a business or individual that grants the right to search for and produce hydrocarbons and/or other products over a designated region for a predetermined amount of time.
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Lease Automatic Custody Transfer Unit, LACT Unit
A technology that enables the pipeline to automatically measure, sample, and transfer oil from the lease location.
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Lease Bonus
Typically the sum of money that the lessee pays to the landowner in exchange for them signing an oil and gas lease. Typically, it is based on an acre-based payment.
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Lessee
A person who buys (takes) an oil, gas, and mineral lease.
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Lessor
The organization that issues oil, gas, and mineral leases.
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Life Cycle Analysis (LCA)
LCA is an analytical technique used to thoroughly quantify and evaluate the environmental fluxes into and out of the environment over the course of a process or product (including air emissions, water effluents, solid waste, and the use/depletion of energy and other resources). The International Organization for Standardization (ISO) 14040 series of standards should be followed when conducting LCAs.
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Light Crude Oil
Low-density, readily flowing petroleum that is liquid at room temperature.
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Limestone
Sedimentary rocks high in calcium carbonate that frequently contain oil or gas deposits.
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Lined Pits
To properly store drilling fluids from oil or gas fields, dugouts are constructed near to drilling rigs and lined with impermeable geosynthetic materials. Wire fencing is frequently used to cover the pit and brightly colored flagging acts as a barrier to prevent waterfowl and other wildlife from coming into contact with this water.
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Liquefaction Facilities
Facilities that convert gaseous natural gas into liquid natural gas. Liquefied natural gas is natural gas in a liquid state (LNG). A cooling procedure is used to finish the operation. The natural gas is transformed into LNG by being supercooled to minus 260 degrees Fahrenheit (minus 162 degrees Celsius). Natural gas is more practical and cost-effective for long-distance transportation when it is in liquid form since it occupies up to 600 times less space than when it is in a gaseous state.
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Liquefied Natural Gas (LNG)
Natural gas that has been chilled to -260°F and transformed into a liquid. Natural gas may be transported affordably from far-off production sites to markets thanks to liquefaction, which 600 times reduces the fuel's volume.
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MBBL
1,000 barrels of natural gas liquids, bitumen, condensate, or crude oil.
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MBD
Every day, 1000 barrels.
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MBOE
Equivalent to 1,000 barrels of oil.
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MCF
Natural gas in the typical cubic foot size of 1,000. Standard conditions in the US are described as gas at 14.7 psia and 60 °F.
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Mcfe
A Bbl of crude oil, condensate, or natural gas liquids is often converted into six Mcf of natural gas equivalent by using this formula: six Mcf of natural gas to one Bbl.
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Medium Crude Oil
Petroleum liquid with a density between between light and heavy crude oil.
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Methane
One carbon atom and four hydrogen atoms make up the basic hydrocarbon molecule that makes up natural gas.
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Middle Distillates
Refined petroleum products with a medium density, such as kerosene, stove oil, jet fuel, and light fuel oil.
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Midstream
One of the three main phases of an operation in the oil and gas sector. This comprises handling, storing, and moving oil and natural gas before they are refined at a petrochemicals facility (Upstream, Midstream, Downstream).
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Mine Tailings
Process water that is still present after extracting oil sands and is kept in settling ponds called tailings ponds.
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Mineral Lease
A document that outlines the conditions under which one party leases the right to investigate and, if necessary, produce particular minerals on a specified parcel or parcels of land. This is sometimes referred to as an Oil, Gas, and Mineral Lease in the oil and gas business (OGML).
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Mineral Owner
Owner of the rights, interests, and ability to execute a lease on a mineral estate (where interests in a landed estate have been severed).
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Mineral Rights
The right to capture or recover minerals that are on or below the surface, as well as the authority to grant a third party the owner's rights to recover minerals in exchange for a fee.
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Mineral Title
Refers to the ownership of the minerals that are typically considered to be associated with a specific piece of land.
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Miscible Flooding
An oil recovery procedure that involves injecting a fluid into an oil reservoir that can totally mix with the oil it encounters in order to boost recovery.
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MMBBL
One million barrels of natural gas liquids, bitumen, condensate, or crude oil.
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MMBOE
Equivalent to one million barrels of oil.
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MMBTU
A measurement of the heating value equaling one million BTUs(British thermal units).
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MMCF
Natural gas in the amount of one million standard cubic feet. Standard conditions are referred to as gas at 14.7 psia and 60 °F in the US.
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MTPA
Tens of millions of tonnes annually.
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Mud (also Drilling Mud)
Drilling fluid is slang for it. employed for the majority of drilling fluids, particularly those that have a high concentration of oil, emulsified water, or suspended particles.
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Natural Gas
Everyone has heard of it, but what exactly does it include? In essence, it is a highly compressible and expansible mixture of hydrocarbon gases that occurs naturally. In fact, methane makes up to to 85% of all natural gases. Smaller amounts of ethane, propane, butane, and pentane are also present. Additionally, impurities including carbon dioxide, helium, nitrogen, and hydrogen sulphide may be present in significant quantities.
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Natural Gas Liquids, NGL
Natural gas liquids, or NGLs, are the common names for some heavier hydrocarbons such as pentanes, butane, isobutane, butane, and ethane. These heavier hydrocarbon liquids, or NGLs, are typically worth more than the natural stream's gaseous component.  Frequently processed liquids that go through a plant to remove the heavier hydrocarbon liquids from the natural gas stream.
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Net acres
The portion of an acreage position with several owners that a firm owns. For instance, a business that holds a 50% stake in a lease for 10,000 acres owns 5,000 net acres.
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Net Revenue Interest, NRI
The financial stake of a well's owner.
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Non-Participating Royalty Interest
A type of royalty that "participates" in any oil or gas discovered but not in lease bonuses or rentals. Technically, it is an interest without executive rights that shares in the gross production of minerals that have been severed off from the fee estate.
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Non-Producing Mineral Owner
An owner of minerals that aren't being produced or sold right now.
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NYMEX
The Mercantile Exchange in New York.
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OCS
The Continental Shelf's exterior. the region that falls outside the coastal state's territorial limits and that the federal government has control over.
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Oil & Gas Mineral Lease
The agreement setting down the fundamental conditions of developing land or minerals, such as the amount of royalty to be paid, the duration, and the nature of the lands.
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Oil Field
A region where oil is present in one or more oil reservoirs underlies it.
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Oil Gravity
A way to gauge the density of an oil. Gravity is a commonly used gauge of crude oil value. Less dense oils are more valuable.
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Oil Pool
An oil-filled pit or reservoir that is underground.
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Oil Sands
Bitumen, a very viscous type of crude oil, and sand grains make up the majority of the geologic deposit.
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Oil Well
Any well that generates at least one barrel of crude oil for every 100,000 cubic feet of natural gas.
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Operating Expense
The expenses involved in running a well to extract oil and gas.
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Operator
The major duty for managing well operations and adhering to state laws and regulations rests with a business or individual operating on their own behalf or as an agent for third parties.
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Orphan Well
A well or connected site where the decommissioning and reclamation are not handled by a party who is both legally responsible and/or financially feasible.
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Overboard Water
A different name for the brine or generated water that comes from oil and gas wells.
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Overriding Royalty Interest limits
A fractional, undivided interest with the right to take part in or profit from the sale of oil and/or gas is known as an ORRI. It is an interest in the money that comes in from the sale of oil and gas minerals, not an investment in the minerals themselves. The interest is constrained to a particular parcel of land and is subject to the restrictions of the current lease. An ORRI is dissolved or terminates together with the lease if it is allowed to expire. In contrast to mineral or royalty interests, overrides have a finite life and do not last forever.  ORRI are not required to pay their fair share of operational or development expenses.
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Overriding Royalty Interest, ORRI
A royalty that is higher than what is specified under the oil and gas lease. An override is typically inserted during a subsequent assignment. The working interest in a property gives rise to ORRIs, which have no bearing on mineral owners. A geologist, landman, stockbroker, or any other organization that was able to reserve an interest in the assets frequently keeps or assigns an overriding royalty interest (ORRI).
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Overriding Royalty Interests Assigned Criteria
Overrides, as they are known in the industry, are frequently assigned by someone or something that puts together a prospect, by former owners of a property who sold and want to keep an interest, or by selling royalty interests to raise money.
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Ozone
A colorless gas called ground-level ozone develops just above the earth's surface.
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P&A or Plug & Abandon
Plugging a well and walking away. After a well has produced its intended amount of water, it is often closed and abandoned with cement and sludge. The wellhead is taken out, the casing is severed between 3 and 6 feet underground, and a steel plate is then welded on top.
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Paid Up Lease
An oil and gas lease under which bonus payments are made in addition to rental payments.
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Participating Royalty Interest
A royalty stake that entitles the holder to "participate" in any rewards received as well as in any discovered oil or gas.
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Particulate Matter
Refers to tiny liquid or solid particles in the air that are suspended there for a while.
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Percentage Depletion
One of the two methods that the IRS permits to be used to determine the depletion allowance for oil and gas mineral and royalty output. Although it is only applicable to certain levels of production, this allowance is typically determined by multiplying 15% by the gross value of the annual production. Depletion Allowance Article on Mineral Web has more information.
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Perforations
Holes through the cement and casing into the useful formation.
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Permeability
The measure of a rock's resistance to fluid passage through it is called permeability. Fluid can easily travel through rock with a high permeability.
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Petroleum
A naturally occurring combination of hydrocarbons that can be processed into a range of products and is found in geological formations beneath the surface of the planet (e.g. gasoline, diesel).
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Pig
A cleaning device that is placed into a pipeline. Pigging is the practise of utilizing a pig.
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Pinnacle Reef
A limestone-based conical formation that is taller than wide and may contain trapped hydrocarbons.
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Platform
A complete offshore drilling rig that does drilling, resource extraction, storage, and some processing. The workforce accommodations are also included.
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Play
A region that has hydrocarbon accumulations or prospects with comparable properties, such as the Lower Tertiary play in the Deepwater Gulf of Mexico or the Marcellus play in the eastern United States.
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Plugging of Well
Preventing fluid from one stratum from escaping into another or to the surface by sealing off the fluids in the stratum that a well has penetrated.
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Pool
A buildup of petroleum in a natural subsurface reservoir.
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Pooled Unit
Under the terms of a lease or agreement, a unit is created by uniting various mineral interests.
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Porosity
The amount of open or vacant space within rock, typically represented as a percentage of the total rock volume, that may contain oil and gas (similar to the volume of water a sponge can retain). Thus, porosity gauges a rock's ability to store water, crude oil, or gas.
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Possible Reserves
Possible reserves have a lower degree of assurance than probable reserves and can only be assessed. used to describe reserves with a likelihood of recovery of at least 10%. (P10).
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Pounds Per Square Inch, PSI
A unit of measurement used in England for pressure applied to a surface area of one inch square.
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Primary Recovery
The extraction of oil and gas from reservoirs using pumping techniques and the natural energy stored in the reservoirs.
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Primary Term
An oil and gas lease's initial time frame for property development Extensions are a common secondary term in oil and gas leases.
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Probable Reserves
Although less definite than proven reserves, probable reserves can nevertheless be assessed with a level of assurance that suggests a recovery is more likely than not. used to describe reserves with a 50% or higher possibility of production (P50).
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Processing Plant
A facility for liquefiable hydrocarbon removal. Condensate and NGLs are removed from the gas production stream during processing, along with any other gases or contaminants.
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Produced Water
Water that rises from a well together with the gas and oil. Salinity levels in produced water are often high. The force that pushes the oil and gas to the surface frequently is it. The produced water is separated from the oil and gas after it leaves the well. Also known as saltwater, formation water, overboard water, and oilfield brine.
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Producer
An oil and gas producer, often known as an operator or the oil company.
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Producing Mineral Interests
A mineral interest where production is ongoing and minerals are being extracted and sold. Oil and gas leases frequently contain clauses requiring "commercial quantities" in order for the lease to continue.
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Producing Mineral Owner
A producer and seller of minerals who is the proprietor of the minerals. Royalties are sums of money paid to the owners of producing minerals.
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Production sharing contract (PSC)
An agreement between a host government and the owners (or co-owners) of a well or field detailing the proportion of production that each party will get following the recovery of a certain amount of capital and operational costs.
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Productive well
A well that has the potential to produce enough hydrocarbons for economic exploitation.
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Progressing or Progressive Cavity Pump
A specific kind of artificial lift pump utilized when reservoir pressure prevents formation liquids (oil and water) from rising to the surface.
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Proppant
During a hydraulic fracturing treatment, sand or artificial sand-sized particles are pushed into a formation to maintain cracks open so that oil and natural gas can flow through the fractures to the wellbore.
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Proration
A state regulatory commission's decision to limit production, frequently in response to consumer demand. To avoid material and financial waste and to safeguard related rights, Louisiana permits the proration of natural gas.
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Proration Unit
Area designated for a well that can be drained by a well in a particular formation or depth, typically by a government body.
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Prorationing
Demand is divided up between shippers and pools by the government, and among wells and pipelines.
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Proved developed reserves
Proven reserves that, with current technology and drilling techniques, can be expected to be recovered by existing wells. In addition, the cost of the necessary equipment is comparatively low in comparison to the cost of a newly constructed well.
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Proven Reserves
Unproduced yet economically recoverable oil or gas that has been found but has not yet been produced. refers to reserves with a 90% (P90) or higher likelihood of being generated under the existing conditions.
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Pugh Clause
A provision that is frequently included in oil leases to prohibit holding non-producing properties or depths for an extended period of time. Likewise called a Freestone rider.
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Pumper, Lease Operator, Gauger
A member of staff who works for an operator and is in charge of recording and reporting daily production.
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Quad
An enormous amount of BTUs. Utilized in relation to energy consumption is this unit of measurement. 5.8 million BTUs are found in a barrel of crude oil. Per MCF of natural gas, there are approximately one million BTUs.
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Qualified Intermediary
An advisor who handles the 1031 exchange process' financial handling and document preparation.
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Quat amine
Used as bactericides, corrosion inhibitors, and oil-wetting agents.
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Ratification
The process of affirming. A lease for oil and gas must be ratified in order for its conditions and existence to be confirmed.
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Reasonable certainty
A great level of assurance. Much more likely than not to be accomplished.
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Reclamation
The process of returning a well site's surface area, access road, and associated infrastructure to their original states.
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Reclamation Certified (rec cert)
Locations that have been cleaned up and brought up to the required regulatory standard.
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Recomplete
To transfer the principal completion between zones. reperforating, running additional tubulars, or installing a new packer are possible.
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Recompletion
An existing well's production completion was drilled in a different formation from the well's original completion.
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Recordable cases
Recordable cases as they relate to health, safety, and the environment (HSE) include workplace fatalities, nonfatal occupational illnesses, and nonfatal occupational injuries that involve one or more of the following: unconsciousness, limitations on movement or work, switching to another job, or receiving medical attention (other than first aid).
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Redrill Footage
Sometimes a hole gets lost or junked, and a subsequent hole may be drilled from the surface near the original. "Redrill film" is footage that was drilled for the second hole. In this case, the first hole is recorded as a dry hole (explanatory or developmental), and the entire recording is recorded as dry hole video. The outcome indicates whether the second hole is an oil well, a gas well, or a dry hole. The redrill footage is not given as a separate classification; rather, it is incorporated into the appropriate categorization of the whole film.
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Refinery
Here, crude oil is transformed into more valuable commodities like gasoline, diesel, olefins, petroleum naphtha, asphalt base, LNG, and jet fuel. A petrochemicals facility will typically refine the materials even further to transform them into goods like cosmetics, detergents, and plastics.
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Reformulated Fuels
Gasoline, diesel, or other fuels that have been altered to take into account customer preferences, performance criteria, governmental laws, or new technology.
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Regulatory Agency
The organization inside each state responsible for enforcing state-set oil and gas policies. These organizations act as the central repository for information about oil and gas operations in the state.
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Releases
When a pipeline's structural integrity is damaged, releases can happen. The operation of the pipeline would be instantly hampered, for instance, by a rupture that resulted in the instantaneous ripping or fracturing of the pipeline material. A pipeline leak from a gap, fissure, or hole could spill some product, but the pipeline wouldn't necessarily stop working right away.
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Remaining Established
Crude oil reserves that are known to exist and that, given current economic and technological conditions, are recoverable.
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Reserve Pit, Mud Pit
Pit used during drilling operations to collect cuttings, wash water, and used drilling fluids.
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Reserves
As of a certain date, the estimated residual quantities of oil, gas, and related substances that can still be economically produced by applying development projects to known accumulations. Additionally, there must be installed means of delivering oil and gas or similar substances to markets, all necessary licenses and finance, as well as the legal right to produce or a revenue interest in production, or there must be a reasonable anticipation that there will be.
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Reservoir
A porous and permeable subsurface formation that is distinct from other reservoirs and has a naturally occurring deposit of extractable oil and/or gas that is contained by impermeable rock or water barriers.
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Reservoir Engineering
The output from a built reservoir using technical and scientific methods to maximize financial gain.
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Residue Gas
Gas that is left over after NGL processing and extraction.
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Resources
Estimated amounts of oil and gas found in naturally occurring accumulations. The resources may be divided into two categories: those that can be recovered and those that cannot. Resources can be accumulations that have been found or that have not.
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Return on capital employed (ROCE)
The profitability of a company's capital used in its operations as opposed to that of its competitors is gauged by its ROCE. Net income + after-tax interest expenditure make up the numerator of the ROCE ratio, which has average total equity plus total debt as the denominator. For the effects of nonoperational or unique items, the net income is adjusted.
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Revenue Statement
The periodic statement provided to the owners of interests in an oil- or gas-producing property by either the First Purchaser or the Operator. These statements provide information on the monthly production and sales of hydrocarbons, including production volumes and prices.
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Rig
The derrick, engine, engine house, and other structures and equipment needed in drilling an oil and gas well.
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Riser
A riser is a substantial pipe made of metal or plastic that carries oil up from the production plant above the ocean's surface.
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Roughneck
Also referred to as floor hands These are the people who work on offshore oil and gas platforms. They mostly work on drilling operations and are overseen by drillers as they perform the physically demanding manual labour and semi-skilled tasks.
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Roustabout
Any inexperienced manual worker on an oil rig who completes tasks that might otherwise divert the attention of more experienced people.
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Royalty
The portion of output or revenue that is kept by the government or owners of freehold mineral rights. The royalty in natural gas activities is typically calculated as a proportion of total production.
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Royalty Interest
An oil and gas lease interest that allows the owner the right to receive a portion of the production from the leased acreage (or of the sale proceeds thereof), but often does not require the owner to pay any percentage of the costs of drilling or running the wells on the leased acreage.
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Royalty Percentage
Percentage of output that is given to the owner of the mineral rights. frequently expressed as a fraction (1/8, 3/16, 1/6, 1/5, etc.).
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Royalty Statement
A financial statement that lists the production and prices received from a well Depending on the state and operator, mineral owners may receive them every month or whenever revenue reaches specific levels.
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Saline Groundwater (Brackish)
Deep groundwater with a high salt concentration that is unfit for household or agricultural usage.
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Salt Water Disposal Well (SWD)
Used effectively to reintroduce produced water into the earth.
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Sandstone
A compacted sedimentary rock that is primarily made of quartz or feldspar; it is a common rock where water, natural gas, or oil can gather.
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Sea Star
A 3500-foot-deep oil rig that is semi-submersible in design. The oil rig is supported by hollow barges arranged in a star shape, which are fastened to the ocean floor using tension legs to allow for some movement in the event of bad weather.
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Secondary Recovery
Enhanced recovery: the process of recovering more oil or gas from a reservoir than can be done with regular pumping and flowing operations. Secondary recovery methods entail injecting water, gas, CO2, or other compounds into the formation in order to maintain or improve reservoir pressure.
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Sedimentary Basin
A region where much of the rock is sedimentary (made up of deposits of sediment that settle in layers), making it likely to contain hydrocarbons, like the Western Canadian Sedimentary Basin.
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Sedimentary Rock
Sediments combined to form rock.
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Seismic Studies
A low-impact, non-intrusive technique for learning where and what kinds of geological features exist beneath the surface of the planet.
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Separator
Equipment that separates the water, gas, and oil that are present in production well effluent.
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Severance
The division of a royalty or mineral interest from other landowners' stakes.
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Severance Tax
A charge placed on the extraction of minerals from the earth. Either a tax on value or a tax on volume may be applied to the charge. Oil is taxed at 12.5% of its value in Louisiana. Natural gas is subject to a tax of 7 cents per MCF, which is yearly adjusted to account for fluctuations in the spot price of gas sold in Louisiana.
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Severed Minerals
Minerals with separate titles from their surface counterparts.
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Shale
A very fine-grained sedimentary rock with a stratified or laminated structure that is typically created by the consolidation of clay, mud, or silt. There is a lot of oil and natural gas in some shale formations, like the Eagle Ford and the Barnett.
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Shut In
To momentarily halt production at a well in order to do maintenance, clean up, increase reservoir pressure, address a market shortage, etc.
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Shut In Royalty
Payment made to royalty owners in accordance with a leasing agreement that enables the lessee to postpone production from a well that is capable of producing but is closed due to a lack of a market.
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Sight Draft
The document, which is frequently referred to as a bank draught (or even a 30-day sight draught), ensures payment to a party within a specific time frame provided that certain requirements are followed. Typically, the leasing company confirms title ownership during such time.
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Social Life Cycle Analysis (S-LCA)
An approach based on social and socioeconomic variables for evaluating the internalities and externalities of the production of products and services.
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Solution Gas
Combined with crude oil, natural gas can be found in subsurface reservoirs. The gas expands and leaks out of the solution as the oil rises to the surface.
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Sour Gas( H2S)
Natural gas or any other gas with a high proportion of hydrogen sulphide is referred to as sour gas (H2S). It has a horrible odor and is exceedingly toxic, highly corrosive, explosive, and colorless. The number of processing steps needed for refining increases with increasing sulphide concentration. Sulphide is typically only present in tiny amounts in sweet crude while it is more prevalent in sour crude.
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Spacing
The separation of wells that draw water from the same reservoir. Regulating bodies frequently prescribe spacing, which is frequently represented in terms of acres (for example, 80-acre spacing).
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Spar Platform
A style of floating oil platform with a big vertical cylinder supporting the topside machinery that is employed in extremely deep waters. A spar facility's bulk is submerged in the sea, similar to an iceberg, giving it more stability. The only purpose of mooring is to secure the building to the ocean floor. not to support it.
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Specific Gravity
When comparing two liquids of identical volume, the weight of the other substance is assigned a value of 1, and the weight of the water is measured at standard temperature. However, in the industry, the degrees of API gravity are typically used to indicate the specific gravity of oil.
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Spills
Spills can occur at well sites, battery packs, or storage tanks and involve the unintentional release of crude oil, generated water, or other hydrocarbon products. These spills may have an impact on the groundwater, flora, rivers, and other water bodies.
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Spot Market
Sales of natural gas or crude oil under short-term, unregulated, arm's-length contracts.
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Spudding In
The first boring of a hole during an oil well's drilling.
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Stakeholders
Industries frequently have an impact on the local inhabitants and environment. Stakeholders are those who have an interest in these activities. They might include the local government, local governments, indigenous populations, people who utilize the property for recreation, other industries, environmental organizations, and regulators.
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Steam Injection
A more effective oil recovery method that involves injecting steam into a reservoir to thin out the crude oil's viscosity.
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Steam-assisted gravity drainage (SAGD)
A method for recovering bitumen that is buried too deep to be mined. From a central well pad, two horizontal wells are dug. Steam generators in a nearby plant heat water to create steam. The steam then makes its way to the wells via above-ground pipelines. The bitumen is heated to a temperature at which it can flow gravitationally into the producing well as it enters the earth through the steam injection well. Following separation and treatment, the bitumen and condensed steam emulsion is piped from the producing well to the plant. To create fresh steam, the water is recycled.
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Strings
The mud pumps on the drill string deliver drilling fluid to the drill bit. The annulus, which is the space between the drill string and casing, can be used to pump fluid down through the string and back up through.
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Stripper Production
The latter phase of an oil well's or oil field's production cycle. Low rates of production—sometimes as little as one barrel of oil per day-define this stage.
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Stripper Well
An established well that is nearing the end of its useful economic life.
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Structural Trap
An unforgiving trap where oil and gas can gather due to a subsurface fold, break, or both. Oil will move through rock underground until it becomes "stuck."
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Substandard Acreage
Land that is below the minimum requirement for a field's proration unit.
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Sulphur
A yellow mineral that is derived from petroleum and used to make fertilizers, medicines, and other goods.
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Sulphur Dioxide
A significant element of a class of airborne pollutants known as "acidifying emissions."
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Sulphur Recovery
At recovery facilities, sour gas is processed to remove Sulphur for sale to Canadian and international fertilizer producers and other industries. At Alberta's Sulphur recovery facilities, the average rate of Sulphur recovery increased from 97.5% in 1980 to 98.8% in 2000.
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Surface Casing
In order to shield fresh water formations from contamination, outer casing was anchored in the upper section of the well bore.
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Surface Estate
Rather than the mineral estate, rights and interests in the land's surface.
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Surface Owner
Owner of the surface estate's rights and interests.
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Surface Rights
The group of rights that are exclusive to the land's surface, as opposed to mineral rights.
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Surface Runoff
Water that flows across the ground surface, whether from rain, snowmelt, or other sources, is an important part of the water cycle.
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Surface Water
Water that has accumulated on the ground or in a river, lake, sea, or ocean.
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Suspended Funds
Money that the operator holds until a number of conditions are satisfied. When there has been a title change, this frequently occurs.
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Suspended Well
A well that is safely guarded but is not now producing oil or gas but could do so in the future.
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Swab, Swabbing
The action of lifting liquids mechanically out of a well bore.
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Sweet Oil and Gas
Petroleum with minimal or no hydrogen sulphide content.
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Synthetic Crude Oil
A mixture of hydrocarbons produced by upgrading bitumen from oil sands that resembles crude oil.
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Tar Sands
Historically, the hydrocarbon mixes discovered in northern Alberta were referred to as tar, pitch, or asphalt. The term "oil sands," however, is now most frequently used to refer to the naturally occurring bitumen deposits. This helps set it apart from the other names, which are connected to distilled or synthetic goods, like mixes used in road paving. Because bitumen, a heavy petroleum product, is mixed with the sand, the phrase "oil sands" is appropriate. The resource is appropriately referred to as oil sands because bitumen is ultimately converted into oil. Oil Sands Alberta website.
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Tax depreciation
Depreciation that can be claimed as an expense on a tax return for a certain reporting period is known as tax depreciation. Under Canadian tax rules, the business may deduct a portion of the cost of an asset (such as equipment) from its annual pre-tax cash flow. Because they cost money to operate and will eventually need to be replaced, assets are viewed as expenses. The amount of taxable income reported is decreased by deducting the expense of using assets each year.
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TCF
Natural gas in the amount of 1 trillion cubic feet.
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Tension Leg Platform
A style of floating oil platform in which the topside structure is typically supported by four legs with huge diameters that are moored to the ocean floor by a sophisticated mooring system. Moving horizontally is possible, but vertical "bobbing" is not. These are a well-liked option in hurricane-prone areas like the Gulf of Mexico due to their stability.
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Tertiary Recovery
The use of more advanced methods, including steam flooding or the injection of chemicals, to boost recovery, is part of the third major phase of crude oil recovery.
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Three (3-D) Seismic, Three Dimensional Seismic
Advanced technique for gathering, analyzing, and understanding three-dimensional seismic data. Closely spaced lines are used to capture three-dimensional seismic data across a region of interest. Using three-dimensional seismic has several benefits, including better data visualisation and analysis tools, as well as enhanced resolution.
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Three Phase Separator
A device that separates oil, water, and gas that is situated close to the wellhead.
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Tight Gas
Incredibly low flow gas. Found in sedimentary rock strata that are so firmly adhered to one another that extraction is "greatly hampered." Tight gas extraction typically needs advanced technology, such as "hydraulic fracturing," which involves pumping fluid into the ground to increase its porosity. Canada reportedly possesses 300 trillion cubic feet (tcf) of tight gas in place, according to the National Energy Board.
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Title Abstract
A timeline of important occasions or previous owners who have owned a specific piece of property.
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Title Curative
Measures made to repair any flaws in the ownership history (chain of title), including amending documents and balancing title with usage and control of the land.
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Top Lease
A lease for oil and gas that doesn't take effect until the other lease covering the subject property tract has expired or been terminated.
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Topside
The surface deck of a platform, which houses all drilling, production, and processing machinery, is referred to as the "topside" of an oil rig. Oil and gas treatment, storage, and offloading, process support systems, as well as the living quarters for rig workers, can all be considered topside operations.
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Total Recordable Rate (TRR)
The rate of recordable cases, normalized per 100 workers per year, is measured by the overall recordable rate. The factor is calculated by dividing the total number of man hours actually worked in the year by the number of recordable injuries in a calendar year multiplied by 200,000 (100 employees working 2,000 hours each year).
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Total Shareholder Return (TSR)
Represents the growth in share value and dividends paid out to shareholders over time. The formula is [(stock price at the end of the period - stock price at the beginning of the period) + (dividends paid during the calculation period) (stock price at the beginning of the period)].
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Transporter
Pipeline, railroad, truck, car, boat, or barge common carriers.
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Traps
A mass of porous, permeable rock that blocks oil and gas from moving, causing them to gather, and is surrounded on all sides and the top by non-porous, impermeable rock.
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Tubing
The pipe with the smallest diameter that carries hydrocarbon output from a well to the surface. The casing has tubing inside of it.
U
UKCS
This is a shorthand for the North Sea's "United Kingdom Continental Shelf." It is situated halfway between Norway and the UK.
U
Ultimate Potential
An estimate of the amount of recoverable reserves that will have been produced once all exploration and development work has been finished; includes production to date, remaining reserves, developing current pools, and future finds.
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Unconventional reservoirs
Reservoirs with hydrocarbon extraction at commercial rates necessitate the use of horizontal hydraulically fractured stimulated wells or other advanced completion techniques since their permeability is so low (often less than 0.1 millidarcy). Unconventional reservoirs include tight reservoirs like the Bakken and Three Forks, as well as shale reservoirs like the Eagle Ford and Barnett.
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Underproduction
Production allotted to a proration unit that is below the permissible level.
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Undeveloped Acreage
Whether or not the acreage has proved reserves, wells have not been drilled or finished to a degree that would allow the production of commercial quantities of oil and gas there.
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Undiscovered Recoverable Resources
Resources that have not yet been confirmed through drilling, testing, or production but are expected to be recoverable from accumulations assumed to exist based on geological and geophysical evidence.
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Unit
A reservoir or field's interests are combined to allow for development and operation without taking into account the different property interests involved. A unitization agreement's geographic scope is another.
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Unitization, Unitization Agreement, Unit Agreement
Joint efforts among many operators inside a single reservoir to maximize recovery.
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Unlined Pits
To make a dugout where fresh water can be kept, the ground is excavated.
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Upgrading
The procedure for turning bitumen or heavy oil into synthetic crude oil.
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Upstream
The upstream sector of the petroleum industry is made up of the businesses that search for, develop, and produce Canada's petroleum resources. E&P, or exploration and production, is another name for it.
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Vee Door
A floor-level opening on one of the Derrick's sides. It is used to transport in tools and equipment like casings and drill pipe. There is no actual door that can be closed or locked on the vee-door; it is merely an opening. As a prank, the rig crew may occasionally ask new and unskilled personnel to locate the vee-door key!
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Vertical Pugh Clause
Restricts a miner's capacity to hold all mineral depths in producing formations. focuses on mineral depths rather than the area covered by a typical Pugh Clause.
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Vibroseis
Using vibrator vehicles to "thump" the ground in order to create seismic shock waves beneath the earth's surface. In order to offer information about the subsurface for oil, gas, and resource development, the shaking is converted into seismic data.
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Viscosity
The fluid's resistance to flow. A fluid with a high viscosity does not flow as smoothly as one with a low viscosity.
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Volatile Organic Compounds (VOCs)
VOCs include carcinogens and substances that interact with sunlight and nitrogen oxides to generate ground-level ozone, a component of smog. These substances are released by petroleum refineries, petrochemical facilities, plastics production, and the sale and use of gasoline.
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W-9
The IRS form used to request a person's tax identification number (taxpayer identification number).
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Waterflood
The technique of injecting water into injection wells to cause oil to migrate to nearby producing wells is a type of secondary recovery.
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Well
A hole that is dug into the earth with the intention of locating, producing, or offering services linked to generating crude oil or natural gas.
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Well Logging
Also known as logging in boreholes. making a thorough record (well log) of the geological formations a borehole pierced.
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Well Site
The ground on which an oil or gas well is physically dug. Depending on the footprint of the required production facilities, the well site typically measures between 12 and 2 acres.
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Wellbore
A gas or oil production well is a hole that has been bored into the soil and is typically lined with metal piping.
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Wellhead
A phrase that is typically understood to mean being at the Christmas tree, but which in uncommon cases may be understood to mean being somewhere else.
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Wellhead Revenues
The sum of the cash value of natural gas and crude oil at the wellhead. The production volumes of crude oil and natural gas are multiplied by their respective average wellhead prices to determine wellhead income.
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Wells-to-Wheels
The entire oil lifecycle, which includes oil production (wells) and oil consumption as fuel for vehicles (wheels). The whole life cycle greenhouse gas emissions of various crude oils, from production to combustion, can be calculated using the "wells-to-wheels" method.
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West Texas Intermediate
WTI, a light sweet crude oil produced in the US, is used as a benchmark for oil prices around the world.
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Western Canada Select
Crude oil mixture that has been delivered from the Western Canada Sedimentary Basin.
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Wet Gas
Natural gas with liquid hydrocarbons in solution that can be extracted using either a straightforward extraction procedure or by lowering the temperature and pressure.
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Wildcat
A well that is dug in an untested region with the intention of finding a new field or reservoir.
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Wildcat Well
Drilling an exploration well in uncharted region, or in a horizon where there isn't any nearby production.
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Work Overs
Actions taken on a producing well to boost or restore production. Cleaning out a sanded-up well is a common work over.
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Working Interest, WI
A mineral property's ownership interest(s).
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Workover
Actions taken on a producing well to boost or restore production.
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XOM
Exxon Mobil is the abbreviation for this oil firm.
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Yoke
The component of a gate valve that acts as a spacer between the operator or actuator and the bonnet.
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ZLD
Zero Liquid Discharge abbreviated.