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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

Glossary of Oil and Gas Terminology (V3: 6/2/12)

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Like many industries, the oil and gas industry has its own
peculiar jargon.

This glossary of terms used in the oil and gas industry is


provided to assist you in understanding some of the
articles and texts that you might read.

Glossary
The following list provides definitions for a broad range of
commonly used ‘jargon’ words in the oil and gas industry.
If the word you want is not in this document, try
http://www.glossary.oilfield.slb.com/default.cfm – a continuously
updated, searchable glossary on the Schlumberger website.

abandon To cease work on a well which is non-productive,


to plug off the well with cement plugs and salvage
all recoverable equipment. Also used in the context
of field abandonment.
abandonment
Final plugging
of wells and/or
permanent
dismantling etc.
of a production
platform or
other
installation.
absorptionThe
ability of a gas,
liquid or solid to
attract and
retain another
substance
without
chemical
combination. A
quantity of such
a substance
that has
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

absorbed as
much of
another as is
physically
possible is said
to be saturated
with it. Some
refinery
processes use
this ability for
instance to
separate
different
hydrocarbons.
ACBE Advisory Committee on Business and the
Environment.

ACHARR Advisory Committee on Hydrocarbons Additional Recovery


Research.
acidisingSee
Stimulation.
acid rain Rain that is slightly acidic due to the mixing in the
atmosphere of various industrial atmospheric
pollutants (e.g. sulphur dioxide) with naturally
occurring oxygen and water vapour. Acid rain is
thought to be partly responsible for the decline in
freshwater fish populations and woodlands in parts
of central and northern Europe.
acre-footUnit
used to
measure the
rock volume of
an oil or gas
reservoir
structure.
Literally one
acre of rock one
foot (30 cm)
thick.
adsorptionThe
attraction
exercised by a
solid in drawing
a gas or liquid
to its surface

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

without
absorbing it.
advance
payment
financeFinance
for exploration
and production
provided in
return for a first
claim on
production.
Typical sources
of such finance
are US refiners
and pipeline
companies.

AL Appraisal licence.
aliphatic
hydrocarbons
A group of
hydrocarbon
substances,
including the
alkanes and
most of the
other fractions
found naturally
in crude oil.
alkanesNaturall
y occurring
paraffin
fractions of
which the
molecules are
based on a
‘straight chain’
of hydrogen-
saturated
carbon atoms.
alkylationA
refining process
used to produce
improved
gasoline
components
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

with, for
example, lower
pollutant
effects, and also
in plastics
manufacture.
alluvial fanA
pattern of
sedimentary
deposit
frequently laid
down by
streams or
rivers where
they spread out
into plains.
Alluvial fans
from past
geological eras
are potential
reservoir
structures.
American
Petroleum
Institute
(API)API is the
world’s
foremost
authority on oil
industry
standards and
practices. ‘API
Gravity’ is a
reference
system for the
density of crude
oils and
constituent
hydrocarbons.
Annex B Operator’s development plan for an offshore
installation under the UK regulatory regime. It
requires government approval before it can be
implemented.
annulus The ring-shaped cavity between two concentric
tubes.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

Commonly the space between the drill string and


the well wall, or between casing strings, or
between the casing and the production tubing.
anodeSee
Sacrificial
anode.

anti-knock
compoundsAd
ditives such as
tetraethyl lead
(TEL) and
tetramethyl
lead (TML) or
methyl-tertiary-
butyl ether
(MTBE), which
tend to prevent
gasolines
detonating
(‘knocking’ or
‘pinking’) under
compression
instead of
burning evenly.

This enhances
their octane
rating. Anti-
pollution
measures will in
future largely
eliminate lead-
based additives.
anticlineA
geological
structure
sometimes
described as a
dome or
inverted saucer.
Such a
structure would
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

be an anticline
with ‘four-way
dip closure’
which if covered
by an
impermeable
layer of rock
would make a
potential oil or
gas reservoir.
Not all
anticlines are
this ‘perfect’
shape.
appraisal well A well drilled to confirm the size or quality
(commercial potential) of a hydrocarbon discovery
by determining the physical extent, reserves and
likely production rate of a field. Before
development, a discovery is likely to need at least
two or three such wells.
aquiferAn
underground
formation of
rock saturated
with water.
Such formations
may be, and
frequently are,
the same as
those
containing oil or
gas reservoirs.
area of mutual
interest
(AMI)Area
where two or
more
companies
agree to explore
exclusively in
concert.
aromatic
hydrocarbons
The group of
hydrocarbon

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

products which
include
benzene,
toluene, etc.
and provide
feedstocks for
many of the
main
petrochemical
processes, as
well as high
octane rating
gasoline blends.
So-called from
their ‘sweet’
smell.
articulated
platformA
semi-buoyant
structure
anchored to the
sea bed by
means of a
‘universal’ joint
coupling which
allows it to
‘sway’ with the
forces of the
sea, etc. Such
structures need
less rigid
strength than
fixed platforms
and so are
relatively lighter
and cheaper to
install.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

Two views of an
articulated flare
platform.
artificial
driveMethods
of producing oil
when natural
reservoir
pressures are
insufficient or
have declined,
such as
injection of gas
or water into
the reservoir
structure.
asphaltA solid
petroleum
residue, similar
to bitumen, tar
and pitch.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

associated gas Natural gas associated with oil accumulations,


which may be dissolved in the oil at reservoir
conditions (solution gas) or may form a cap of free
gas above the oil (gas cap).

The expression has come to include natural gas


necessarily produced along with crude oil.
ASTMAmerican
Society for
Testing and
Materials. In
conjunction with
the API and
Institute of
Petroleum, they
publish
authoritative
standards and,
for example,
calculation
tables used by
the oil industry.
(‘ASTM tables’).
1. back offIn
drilling, to
pull the drill-
string out of,
or partly out
of, the
borehole.
2. To unscrew a
joint of drill
pipe.
3. To slacken
off a line or
block.
ballastWater
taken aboard a
tanker, semi-
submersible rig
etc. to maintain
stability and to
distribute load
stresses, e.g. in
the case of

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

part-cargoes.
Modern tankers
have
segregated
ballast tanks so
that the water
does not
become
polluted with
oil.
bariteA very
heavy
substance used
as a main
component of
drilling mud, to
increase its
density (mud
weight) and
counter-balance
down-hole
pressures.
barrel (or bbl) A unit of volume measurement used for petroleum
and its products.

For oil 1 barrel = 42 US gallons; 35 Imperial


gallons (approx.), or 159 litres (approx.);

7.5 barrels = 1 tonne (approx.); 6.29 barrels = 1


cubic metre.
basket A hollow tool used to retrieve junk from the well
when fishing. The name is also sometimes given to
the bird cage.
batter The inward slope of the legs of a steel platform for
stability so that the base of the jacket covers a
larger area than at deck level.
bboe Billion barrels of oil equivalent.
bcf Billion cubic feet; 1 bcf = 0.83 million tonnes of oil
equivalent.
bcm Billion cubic metres (1 cubic metre = 35.31 cubic
feet).
bead The fused metal resulting from a welding operation
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

or ‘pass’ in a major weld, as in a pipeline. There


are normally three: the root or stringer bead, the
filler bead, and the cap bead.
bean A choke, the orifice in a flow control valve. To
‘bean up’ or ‘bean down’ means to install a larger
or smaller orifice, or to open or close a variable
valve.
bentonite See Mud.
billion In oil and gas usage, a billion means 109 not 1012.

One billion cubic feet (BCF) = one thousand million


cubic feet.
bird cage The small net-enclosed ‘platform’ used offshore to
transfer people by crane from, for example, boat
to platform or rig.
bit A drilling bit. Those chiefly in use are the steel
roller-cutter, and the diamond-insert bit for hard
formations, which penetrates by scratching or
abrading the rock rather than by crushing or
pulverising like the roller bit. There is also the
annular diamond-insert core bit, for cutting and
retrieving rock samples (in conjunction with a core
barrel).
bitumen A form of heavy, solid petroleum. See Asphalt.
black Crude oil, or distilled crude, containing the
oil/black fractions heavier than middle distillates.
cargo
blind rams See Blow out preventer/pipe rams.
block An arrangement of pulley wheels used in lifting, on
a derrick or crane.
block A licence or concession area. It may be almost any
size or shape, although usually part of a grid
pattern.

In the UK sector of the North Sea a block is a sub-


division measuring approximately 10  20 km,
forming part of a quadrant; for example, Block
9/13 is the 13th block in Quadrant 9.
bloom The rainbow-like fluorescence shown by oil when,
for example, floating on water.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

blow down The process of releasing pressure in, for example,


a refinery pressure vessel by venting to
atmosphere. Primary production of a crude oil or
condensate reservoir using the pressure of the
associated gas.
blow down Condensate and gas is produced simultaneously
from the outset of production.
blow-out Uncontrolled or uncontrollable release of down-
hole pressure upward through the well-bore or
casing. Although the main danger is fire, the gases
are also toxic, and in floating operations a gas
blow-out may include a threat to the stability of
the rig itself (see Mud).

blow-out An emergency shut-off valve installed on the


preventers wellhead during drilling or testing of a well, which
(BOPs) incorporates hydraulic pipe rams capable of closing
the space around the drill pipe against very high
pressures. BOPs are designed to shut off the
uncontrolled flow of hydrocarbons.
boe Barrel of oil equivalent – an expression used to
convey gas quantities in a manner approximately
equivalent to barrels of oil.
boepd Barrel of oil equivalent per day.
boomer This expression normally refers to a compressed
air, or electrical, source of sound used in marine
seismic survey work.

BOPD (often Barrels of oil per day.


bopd)
borehole The hole as drilled by the drill bit. Often also
referred to as a well, especially when it occurs in
the face of the rock outside or below the casing.
Test boreholes are also sunk to examine the
suitability of a site for major foundation work, and
to examine geological formations at points where
no hydrocarbons are expected.
bottles Small pressure vessels of various kinds, especially
to absorb pressure fluctuations.
bottles Cylindrical flotation tanks such as those
temporarily attached to a platform jacket during
placement.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

bottom of the See Fuel oil, Heavy ends etc.


barrel
bottom-hole The deepest part of a well.
bottom-hole Includes the drilling bit, drill collars, stabilisers and
assembly other drilling components run into the well on the
(BHA) end of the drill pipe. See Drill string.
bottom-hole A cash payment to the equity participants in a
payment well, on its reaching target depth, by other parties
interested in acquiring the information it yields.
bottom-hole Formation pressures measured at reservoir depth.
pressure
bottoms up Circulation of drilling fluid in a well, until the
bottom hole mud and cuttings reach the surface,
indicating that normal circulation can commence.
bow thruster A propeller mounted transversely in the bows of a
vessel to assist in docking, manoeuvring and
station-keeping. (See Thrusters).
box The hollow, or female end, in a threaded
connection, such as drill pipe.
bridge plug A down-hole packer assembly used in a well to
seal off or isolate a particular formation for testing,
acidising, cementing, etc. Also a type of plug used
to seal off a well temporarily while the wellhead is
removed.

BRINDEX Association of British Independent Oil Exploration


Companies. A useful trade contact listing of independent
companies involved with the oil industry.
brown fields Mature fields.
brucker A circular escape-and-survival ‘lifeboat’ designed
capsule to be lowered automatically on a single wire cable
after those entering it have sealed the hatches
from within.

BTI British Trade International. Superceded by UK Trade


&Investment. (http://www.ukti.gov.uk/export.html)
(The government organisation that brings together the
work of the Foreign and Commonwealth Office and the
Department of Trade and Industry in support of British
trade and investment overseas.)
bubble point The pressure at which a saturated hydrocarbon
liquid releases gas out of solution. See also

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

Absorption.
bullets Cigar-shaped tanks, usually for the bulk storage of
propane or butane (liquefied petroleum gases;
LPGs) as liquids under pressure.
bumper sub A telescopic joint inserted at the upper end of the
string of drill pipe in floating drilling operations, to
compensate for vertical motion of the rig with
reference to the wellhead on the sea bed.
bund walls The dam or dyke walls surrounding storage tanks
or, for example, onshore well installations to
contain the contents in case of rupture or spillage.
bunker fuel A heavy residual fuel oil obtained as a result of
distillation of crude oil, and used as fuel primarily
for marine steam generation.
bureau veritas See Certification.
burial history See Maturity.
bury barge A vessel used to bury completed submarine
pipelines in the sea bed. This is done by scouring
away the sea bed under the line with high-
pressure water jets, usually mounted on an
underwater vehicle known as a ‘bury sled’ or ‘jet
sled’. The pipeline settles into the trench so formed
and is covered by resettlement of the sea bed
sediment.
CO2 The chemical formula for carbon dioxide. CO2 is the
basis for plant respiration and is liberated when
vegetable matter rots or burns, and when fossil
fuels are burned. CO2 is one of the major
‘greenhouse gases’ (see climate change).
cable tool Equipment for drilling a well by the outdated cable
method. Specifically, the heavy sharpened bar or
‘bit’ which penetrates by being repeatedly dropped
in the borehole on the end of the cable.
caliper A tool for checking casing in a well for deformation
before, say, running drilling tools, which might
become stuck, or packers which might leak.
calorific value The quantity of heat produced by complete
combustion of unit weight of a material. Expressed
as either calories per gram, or British Thermal
Units (BTU) per pound, or BTU per standard cubic
foot of gas.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

cap bead See Bead.


cap rock An impermeable layer of rock above a discovered
or potential hydrocarbon reservoir, providing a seal
to contain the reservoir fluids.
CAPEX/Capex Capital expenditure.
carbon black Carbon derived from petroleum in soot-like form.
carbon A method used in secondary recovery from an oil
dioxide (CO2) reservoir, in conjunction with water flooding.
injection
carried A commercial arrangement, whereby expenditures
interest due from one participant in a joint venture are met
by another, usually in exchange for increased
equity or repayment out of production revenues.
casing etc. The steel pipes with which a well is lined, for
protection against collapse of the borehole, and
unwanted leakage into or from rock formations, or
at the surface. ‘Joints’ of casing are around 33
feet/10 inches long and are normally screwed
together as they are run into the well. Particularly
in offshore drilling it is normal to set large-
diameter casing (such as 51 cm (20 inch)) called
the conductor (or surface) pipe after the well has
penetrated the layers nearest the surface, and
cement it into place, after which the drilling
continues with a smaller diameter bit, etc.

casing hanger The lug or bracket from which a string of casing is


suspended at the upper end.
casing head The flanged top of the casing at the surface to
which the blow-out preventer is bolted, and, in
production, the wellhead.
casing point The depth of the lower end of a string of casing.
casing shoe A reinforced section of casing run into a well at the
lower end of a string, to protect against buckling or

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

deformation.
casing string The steel tubing that lines a well after it has been
drilled. It is formed from sections of steel tube
screwed together.
casing tong A large mechanical wrench for screwing or
unscrewing casing joints. (Now usually power-
operated).
cat cracker See Cracker.
cat head The drum of a power winch accessible from a rig
floor or ship’s deck for hoisting, pulling and
tightening operations.
catenary The curve assumed by a chain or cable suspended
between two points (e.g. an anchor chain).
cathodic A method of neutralising the corrosive static
protection electric charges in a submerged steel structure.
See also Sacrificial anode.
CATS Central Area Transmission System.
catwalk A narrow elevated platform or walkway for access
to equipment.
cave-in Collapse of part of the wall of a borehole usually in
a poorly consolidated rock formation.
cavern Underground natural or man-made storage
storage chambers in suitable impermeable or artificially
lined rock formations. They may also be designed
for cryogenic storage. See also Jug.
CBI Confederation of British Industry.
CCL Climate Change Levy.
CDA Common Data Access.
cellar deck The deck below the main superstructure of an
offshore platform.
cement Cement is used to ‘set’ casing in the well bore and
seal off unproductive formations and apertures. It
is also used as a coating to add weight to
submarine pipelines, which might otherwise float
or be easily displaced, particularly when filled with
gas.
cement bond The measurement made by a tool run in a well to
log (CBL) measure the extent to which the cement has
bonded with the adjacent surfaces and provided an
effective seal.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

cement slurry See Slurry.


cement In a well this is the injection of cement under
squeeze pressure between casing and borehole wall,
especially where bonding is poor, to fill any cavities
and to infiltrate the rock to further seal it off.
centipoise An unit of measurement of viscosity. It expresses
(Cp) the force needed to overcome resistance to flow,
and to maintain unit velocity of flow, in a given
field.
central A range of exploration drilling scenarios from which
estimate the following activity levels, based on recent
historical experience, are adopted as the central
estimates.
centralisers Spacing collars attached to the outside of casing
when run in a well, to keep it central in the bore
and ensure an evenly shaped annulus in which
cement can circulate and set.
centrifuge A separator operating on the principle of
differential acceleration of particles of different
mass, an effect produced by equipment similar to
a turbine ‘spinning’ the feedstock in an enclosed
chamber.
certification The process of certifying the origin, quality and
(classification fitness for use or operation to given standards of a
) platform structure, process, item of equipment etc.
Certification originated in ship construction and
insurance classification. Hence, major certification
authorities acceptable to government agencies etc.
are Lloyds, American Bureau of Shipping, Bureau
Veritas and Det Norske Veritas.
cetane A measure of the performance of diesel fuel in
number working conditions (i.e. under compression),
similar to the octane number used for gasolines.
CFCs/HFCs Chlorofluorocarbons and hydrochlorofluorocarbons:
chlorine-based chemicals that contribute to the
depletion of the stratospheric ozone layer (see
ozone layer).

CGBF Concrete, gravity-based structure.

CGT Capital gains tax.


chain tong A power wrench for tubular connections in which
the pipe is gripped and rotated by an endless

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

chain-belt running on rollers.


channelling During production from a reservoir which is being
supported by pressure from contiguous water or
gas, the water or gas tends to travel towards the
well bore faster through channels or layers of more
permeable rock (see Permeability) by-passing and
‘holding back’ production from the less permeable
rocks.
check valve A non-return valve, allowing only one-way flow.
checkerboard A phrase used in exploration to describe granting
leasing concessions or leases on alternate blocks. A
discovery will tend to increase the value of
contiguous blocks still unlet.
choke An aperture restricting flow in a well or flowline.
See also Bean.
CHP Combined heat and power.
Christmas tree The assembly of fittings and valves on the top of
the casing which control the production rate of oil
or gas. As well as outlets for production, the tree
will provide for the injection of mud to ‘kill’ the
well, and for the insertion of down-hole
maintenance tools.

circulation The passage of fluids, primarily drilling mud, down


(drilling) the interior of the drill-stem and back to surface
via the annulus.

Reverse circulation is in the opposite direction.

Circulation bottoms-up see Bottoms-up.


clastic rock Rock which has been formed from the sediment
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

and detritus of other rocks, e.g. sandstone, shale,


conglomerates, etc.
clean cargo Any ‘white’ oils, such as gasoline, naphtha or
middle distillates, from the ‘lighter end of the
barrel’, i.e. excluding black oils.
clean cargo Oil with less than 1 per cent basic sediment and
water (e.g. for pipeline shipment).
climate The world’s climate may be changing due to the
change planet getting warmer. This may be because heat
radiating from the ground is increasingly absorbed
by greenhouse gases such as CO2.
closure Four-way (all round) closure or seal is necessary,
over the top and down the gradients on the sides
of a potential reservoir, before it can trap or retain
hydrocarbons. Closure may be structural as in an
anticline, or may be partly due to an impermeable
fault or stratigraphic trapping or salt intrusion.
cloud point The temperature at which paraffin waxes will
solidify and give a cloudy appearance to the oil of
which they form part.
CNS Central North Sea.
coal bed Natural gas produced in a coal seam during the formation
methane (CBM) of the coal. Coal seams form the reservoir rocks and traps
for the methane, which is usually of near-pipeline quality.
coal Conversion of coal into methane, still at the pilot
gasification plant stage. Conversion in the coal seam by down-
hole process is also under study.
coating 1. Cement applied externally, weight-coating.
(pipeline) 2. Anti-corrosion compounds applied internally.
cofferdam In platform construction, the ‘floatable’ wall used
to seal a dry construction dock. When the dock is
filled with water for platform float-out, the
cofferdam is de-ballasted and floated to one side
to allow egress. Cofferdams have various other
uses.
coke Carbon extracted from crude oil, usually as result
(petroleum of thermal cracking. It is much like ordinary coke
coke) in appearance, but its purity makes it preferable in
several industrial processes such as aluminium
smelting.
commercial An oil and/or gas field judged to be capable of
field producing enough net income to make it worth

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

developing.
commercial A well capable of producing profitably.
well
commissionin Preparatory work, servicing etc. usually on newly
g installed equipment, and all testing prior to full
production testing (see Start up).
common The legal status of some pipeline companies,
carrier primarily in the USA.
completion The installation of permanent wellhead equipment
for the production of oil and gas.
completion Fulfilment of a contractual obligation.
completion The procedure specified in, for example, a
test construction contract, or project financing
agreement, for determining whether the plant,
field development etc. in question meets the
operating specifications laid down. A completion
test may in some cases extend over several
months.
compliant A platform capable of ‘swaying’ to absorb sea
platform forces. See also Articulated platform.
structure
concession A licence, lease or other permit for exploration
and/or production in an area or block. It usually
denotes a government lease.
concrete See Gravity structure.
platform
condensate Hydrocarbons which are in the gaseous state under
reservoir conditions and which become liquid when
temperature or pressure is reduced. A mixture of
pentanes and higher hydrocarbons.
conductor Conductor pipe provides a guide and access to the
pipe well, and seals it externally to enable circulation of
drilling fluid. On land and in offshore jack-up or
platform drilling, this is driven rather than drilled in
to the soil/sea bed. In a floating drilling operation,
the conductor extends from the rig down to the
wellhead on the sea bed.
confirmation An early appraisal or step-out well.
well
coning If an oil well is produced at excessive rates the
reduction in reservoir pressure may tend to draw

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

up underlying water towards the well in a cone-like


shape. Likewise, gas can be drawn downwards
from an overlying gas cap.

connate water The original water content of a reservoir rock.


Connate water reduces the pore-space (porosity)
available to hydrocarbons. Sometimes called
Interstitial water.
consortium A joint-venture enterprise used by the oil industry
as a vehicle for joint operations where a distinct
local legal entity and, for example, joint staffing
are required. It may have the legal status of a
partnership, limited partnership, joint-stock or
joint-guarantee corporation etc. according to local
law.
contaminated In a tanker, ballast water which has become mixed
ballast with oil.
continental The shelving area covered by shallow water around
shelf major land masses. It may be 50–100 miles/80–
200 km in width and merges into the steeper
continental slope, and yet steeper continental rise
which descends to the ocean floor.
contract depth The depth to which a well is to be drilled under, for
example, a turnkey drilling contract.

conversion 1 tonne crude oil = 7.5 barrels = 1.19 cubic


factors metres;
(approximate) 1 barrel (US) = 35 Imperial gallons = 0.16 cubic
metres;
1 cubic metre = 35.31 cubic feet;
1 billion cubic metres of gas = 0.92 million tonnes
of oil equivalent;
1 cubic metre of gas = 0.36 therms;
1 tonne fuel oil = 405 therms;
1 therm = 105.5 megajoules (MJ);

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

1 kilowatt hour = 3.6 megajoules.


1 million tonnes of crude oil = 7.5 million barrels;
1 million tonnes of crude oil per year = 21
thousand barrels per day.
core/core A vertical section of reservoir or other rock taken
barrel in drilling a well for detailed study and analysis. In
order to retrieve the core as intact as possible, it is
cut from the rock by an annular core bit. The
central column of rock passes through the centre
of the bit and, as the bit cuts deeper, is received
by a hollow cylindrical core barrel above the bit,
where it is retained and protected by a series of
rubber baffles. When the bit has cut deep enough
to fill the core barrel, it is withdrawn from the hole
and the core extracted. In this way the actual
sequence of rock strata is preserved.

coring Taking rock samples from a well by means of a


special tool – a ‘core barrel’.
cracker A refinery plant or process which uses heat
(thermal cracker) and/or the presence of a catalyst
(catalytic cracker) under pressure to break down
‘heavy fraction’ distillates, which are made up of
long-chain molecules, into more complex and
reactive hydrocarbons such as gasolines. See also
Reforming.
crane barge A large barge, capable of lifting heavy equipment
onto offshore platforms. Also known as a ‘derrick
barge’.
creaming An expression reflecting the fact that the largest
curve reservoirs in a prospective petroleum province
tend to be found first, followed by a predictable
progressive decrease in the size of discoveries.
creaming A statistical technique which recognises that in any
theory exploration province after an initial period in which
the largest fields are found, success rates and
average field sizes decline as more exploration
wells are drilled and knowledge of the area
matures.
CRINE network ‘Cost Reduction Initiative for the New Era’. A UK oil
industry–government exercise to aid greater
competitiveness (launched in the early 1990s and
superseded by the current PILOT initiative).
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

CRISTAL Contract Regarding a Supplement to Tanker


Liability for oil pollution.
critical path A project planning tool normally used in large
analysis construction/development projects. It is based on
a ‘network’ of necessary actions of known
sequence and duration, and aims at identifying
priority points at which actions ‘critical to’ (holding
up other progress on) the project need
improvement or elimination.
crown block The upper fixed pulley assembly at the top of a
drilling derrick.
crude oil An unrefined mixture of naturally occurring
hydrocarbons. Because it is essentially a mixture,
the density and properties of crude oil vary widely.
Light crude normally has an API gravity of 300 or
more. Gravities of 200 to 300 include the medium-
gravity crudes, while those below 200 are known
as heavy oils. Heavy oils are found right down to
the residual solid state. Sour crude has a
significant sulphur content: Low-sulphur crude is
described as sweet.
cryogenics/cr In oil industry terms, this refers to very low
yogenic temperature handling processing or storage of
storage hydrocarbon substances. See also Cavern storage.
CT Corporation Tax
cubic foot A standard unit used to measure quantity of gas
(at atmospheric pressure).

1 cubic foot = 0.0283 cubic metres.


cut/cut point A ‘cut’ is a hydrocarbon substance or group of
substances extracted from a wider mixture in a
refining process. For instance, primary distillation
will usually yield a naphtha/gasoline cut, a middle
distillate cut, and a residual fuel oil cut, with an
‘overhead cut’ of gases. The specific gravity at
which each cut is separated by the process is the
cut point. Cuts are made with progressive fineness
and accuracy as the oil proceeds through the
refinery.
cuttings The small chips or flakes of rock retrieved from a
well by the circulation of the mud. They are
studied and logged by the well-site geologist.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

daisy chain A name given to a series of interdependent


contracts for future purchase and sale of oil.
darcy The unit of measurement of rock permeability, i.e.
the extent to which it will allow a fluid to flow
through it. The permeability of most oil and gas
reservoir rocks is measured in millidarcies
(thousandths of a darcy).
data Although applied to any factual information, this
term most commonly refers to seismic ‘data’ – the
computer records and output of a seismic survey.
dead oil Oil containing no natural gas.
dead weight The load-carrying capacity of a vessel, the ‘live’
tonnage weight being the displacement weight of the
unladen vessel.
dead well A well which will no longer produce without further
stimulation.
DEAL ‘Digital Energy Atlas and Library’ – the data
environment associated with LIFT.
dealkylation A cracking process whose main product is aromatic
hydrocarbons.
Debottleneck The activity of identifying the constraint(s) in a
(debottlenecking) production system or processing step that is
restricting throughput below a desired level and
then the elimination of that constraint(s).
debutaniser, A process vessel (column) set to ‘cut’ or extract a
depropaniser specific hydrocarbon fraction.
DECC Department of Energy and Climate Change. The
primary environmental regulator for the UK
offshore oil and gas industry
decommission Planning the eventual shut down of an oil or gas
ing field – in particular, what to do with the platform
structure.
decompressio The process of gradually re-acclimatising deep
n/decompress divers to surface pressure conditions. For relatively
ion chamber shallow dives this is achieved by controlled rate of
ascent. For longer, deep, ‘saturation’ dives, the
divers are recovered under pressure into a
decompression chamber where pressure reduction
may take some days.
deep rig A drilling rig designed and equipped to withstand
the loads and pressures associated with drilling to

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

deep objectives (e.g. over 20,000 feet/6000


metres).
deep well See Deep rig. The deepest so far drilled by the
industry is over 30,000 feet/9000 metres.
default There are many uses of this term, but it is of major
importance in joint ventures, whereby a participant
which fails to meet its cash contribution obligations
may in specified circumstances lose rights in the
concession in question.
deficiency gas In a ‘take or pay’ gas sales contract, this is an
amount of gas which must be paid for although not
taken.
DEFRA Department for Environment, Food and Rural
Affairs. The UK Government department tasked
with issues such as the environment, rural
development, the countryside, wildlife, animal
welfare and sustainable development
de-gasser 1. A separator which removes from the
returned mud flow any entrained gases from
formations down the well. Gases can cause a
potentially dangerous reduction in the
density of the mud and hence its ability to
contain down-hole pressures.
2. Any process which removes gases of various
kinds from an oil flow.
dehydrator Equipment for the removal of water from a gas
(gas) stream, for instance prior to transfer by pipeline.
delineation A name for an appraisal well, usually one drilled
well specifically to determine the boundary of a
discovered reservoir.
demurrage Originally, charges for keeping shipping waiting
outside the times allowed in the freight contract. It
mainly relates to oil tankers, but can be applied to
any major facility. For instance, pipeline
demurrage is chargeable for late delivery to or
from a pipeline system.
depletion Progressive reduction in reserves as a result of
production. Depletion allowance in some countries
is a type of tax-allowable amortisation recognising
this reduction. Depletion drive is primary
production, i.e. as a result of expansion of
reservoir gases with decreasing pressures.
depth map A relief map of a sub-surface geological structure
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

where the contours relate to depths from the


surface datum level (i.e. sea level). This is a
further interpretation of a seismic time map.
derivatives Hydrocarbon derivatives – products made from
hydrocarbon.
derivatives Financial derivatives. The type most frequently
used in the oil and gas industry are pseudo-sales
transactions (rather than physical sales of oil,
etc.). The simplest is the forward sale of oil which
is not intended to be delivered, but ‘matched’ with
a suitable purchase at some intervening time.
Derivatives include ‘swaps’ and ‘options’. Their
most common use is to control price risk
fluctuations through the markets rather than in
conflict with them.
derrick A pylon-like steel tower which provides the vertical
lifting capacity needed for drilling a well. The
derrick man is the member of the drilling crew who
works up within the derrick on the tubing board or
‘monkey island’, a platform where the upper ends
of stands of drill pipe or casing are handled, and
hung onto or detached from the kelly or hooks.

desalter Apparatus for removing salt and salt water from


crude oil.
design wave The maximum size and frequency of wave that an
offshore structure must be able to withstand.
development Any major construction such as a refinery, or a
production project. It has come to mean, or cover,
the whole life of a production project from design
to abandonment. Strictly speaking it refers to the
planned and actual production of reserves from a
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

reservoir.
development The phase in which a proven oil or gas field is
phase brought into production by drilling production
(development) wells.
development Any well drilled in the course of extraction of
well reservoir hydrocarbons, whether specifically a
production well or injection well. See also
Exploitation well.
deviated A well whose path has been deliberately diverted
well/hole from the vertical. Although relatively costly to drill,
they are used particularly offshore to reach distant
parts of a reservoir from a single platform.
Deviated, or directional, drilling up to 600 to 700
meters from the vertical is now fairly common.
Greater deviation is possible with special
equipment — see Horizontal drilling and Slant
drilling.
dewpoint The temperature at which liquid condenses from a
gas at sea level pressure.
diamond bit See Bit.
diapir An up-thrust intrusion of lower density rocks
through overlying formations, e.g. a salt dome.
differential The difference between the pressure in a well due
pressure to the mud column and the pressure in the
surrounding rock at any point. See also Sticking.
dip, dipmeter 1. The inclination from the horizontal of the top
surface of a geological structure. A dipmeter
indicates dip relative to a well bore. See
Topic 5, HDT.
2. Measurement of the contents of a tank by
lowering a weight and prepared line into it.
See Tank dipping.
directional See Deviated well.
drilling
dirty cargo Crude oil, or any cargo containing black oil or
residual oils.
discovery well A successful exploration well, or wildcat. The first
successful well on a new prospective reservoir
structure.
distillation/di The process of heating and ‘flashing’ or boiling off
stillation successive tractions (component hydrocarbon
column/distill substances) from a crude oil feedstock, or a
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

ate product of earlier distillation.

A distillation column is an elongated vertical


process vessel designed to give optimum physical
separation of required fractions ‘flashed’ inside it.
The products of distillation are known as distillates.

ditch cuttings See Cuttings. Originally retrieved from the ‘ditch’


of early land-based mud systems.
diverter A safety device fitted in the early stages of a well,
instead of a blow-out preventer, to divert and vent
off any shallow gas encountered.
DL Development Licence.
dog house The driller’s enclosure or shack which serves as a
well-site office and control room.
dog-leg Where a well has been deviated and later returned
to vertical. The expression may also be applied to
any similar double bend in a pipeline or well.
dope A grease-like substance used to protect and seal
joint-threads of well tubulars such as casing.
down dip An area of a structure where the top of the
formation is lower (e.g. offshore, deeper below sea
level) than the point under consideration.
down-hole Down a well. The expression covers any
equipment, measurement, etc. in a well or
designed for use in one.
down-hole A pump installed in the lower end of the well bore,
pump to increase productivity.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

downstream ‘Downstream’ is a relative term (the opposite of


‘upstream’) in oil industry operations. For instance,
a refinery is ‘downstream’ of a crude oil production
unit, and a petrochemical plant usually
downstream of a refinery. The term has also come
to mean all operations occurring after the delivery
or lifting of saleable quality crude or gas from the
production unit or associated delivery terminal. A
‘downstream company’ has no production of its
own.
downtime A period when any equipment is unserviceable or
out of operation for maintenance etc.
drawdown The difference between shut in and flowing bottom
hole pressures.
drill collar See Drill string.
drill cuttings Rock chippings produced by the drill bit as it works
its way down through the rock to the subterranean
oil- or gas-bearing formations. Drill cuttings are
removed from the well-bore by drilling mud (see
Drilling mud).
drill pipe Pipe, usually of 9–13 cm (3.5–5 inches) outside
diameter, which is supplied in ‘joints’ normally of
around 33 feet/10 metres in length, each being
fitted with thicker, or ‘up-set’, reinforced threaded
couplings at each end, ‘male and female’ or ‘pin
and box’ respectively. To save time, a drill pipe in
use but not in the well is stacked in stands.
drill ship A ship-shaped offshore drilling rig for exploration in
very deep waters. Although less stable than a
semi-submersible rig it has greater load carrying
capacity and is therefore more self-contained when
far from land.
drill stem/drill The assembled drill pipe in the well is known as
stem test the drill stem, and serves three main purposes: to
rotate the bit; to convey drilling mud or cement
down the well; and to flow to surface the fluids in
primary assessment of a discovery (drill stem
testing/DST). See also Drill string.
drill string The assembly of bit (for penetration) drill collars
(for weight, rigidity and torque transmission),
stabilisers (to ensure straight hole and help
transmit torque), and the length of drill pipe in use
in the well. Penetration is achieved by ‘weight on
the bit’, or the weight of the drill string minus the
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

weight of the equivalent volume of mud in the


well.
drilling crew The crew on a drilling rig is supervised by a senior
drilling engineer, known as a ‘tool pusher’. Other
members of the crew include the driller, in charge
of a shift, who ensures adherence to the drilling
programme and maintenance of the shift’s
operating log, or ‘tour sheet’. He controls the lifting
mechanism and hence the weight on the bit (see
Drill string). Other skilled members, or
‘roughnecks’ may be motor men, derrick men,
floor men, pump men, etc. Partly skilled or
unskilled members are known as ‘roustabouts’. In
addition a rig crew will incorporate such specialists
as mud engineers and well-site geologists.
drilling fluid See Mud.
drilling mud A specially formulated fluid used to lubricate the
drill bit and remove drill cuttings. Different fluid
bases are used for different types of mud. They
may be water based (WBM), mineral oil based
(OBM) or synthetic oil based (SMS). Muds are
carefully formulated to match the varying
geological, temperature and pressure conditions
that are met as an oil well is being drilled.
drilling out When a well must be deviated or side-tracked,
either as planned or to avoid a “fish” it is normally
necessary to cut a hole in the casing wall and drill
out on the new path.
drilling report Every 24 hours the driller’s log and the geological
cuttings log, together with the observations of the
tool pusher and any other significant data, are
sent, usually by telex, to the area drilling manager
and other interested parties. The report will also
include, for example, usage of materials, stock
levels, and requirements for supplies. See also
Drilling crew.
drilling rig Almost all drilling is now carried out by rotary rigs.
A diagram of a typical offshore rig is shown below.
The ‘rig’ comprises a derrick, a draw-works or
source of power, lifting tackles and blocks, a kelly
and rotary table to rotate the drill string, a mud
pump and mud circulation system, a blow out
preventer, and a system for handling drill pipe,
casing etc.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

drilling tools A term applied generally to any down-hole


accessory including, for instance, stabilisers, jars,
fishing equipment, and directional drilling
apparatus.
drive pipe See Conductor pipe.
dry gas Natural gas composed mainly of methane with only
minor amounts of ethane, propane and butane and
little or no heavier hydrocarbons in the gasoline
range.
dry hole A well which has proved to be non-productive.
Sometimes called a ‘duster’.
DTI The Department of Trade and Industry. Changed
to DBER – the Department for Business, Enterprise
and Regulatory Reform in 2007 which in turn was
effectively transformed into DECC. Until the Piper A
incident the DTI had regulatory powers over the
UK offshore industry. As a result of the Cullen
enquiry into the Piper A incident these powers
were transferred to the HSE- Health & Safety
Executive
dynamic A system of computer-controlled directional
positioning thruster propellers which enables a ‘DP’ floating rig
(DP) or drill ship to maintain position over a sub-sea
well without using anchors. It is mainly used in
deep water where anchoring would be impractical,
but may also be used in the vicinity of vulnerable
sea bed installations.
E&A Abbreviation for exploration and appraisal.
E&P Abbreviation for exploration and production.

EAGLES East Anglian Gas and Liquids Evacuation System.


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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

ECGD Exports Credits Guarantee Department.


economic Progressive reduction in the value of a producing
depletion asset as a result of production. See also Depletion
allowance.
economic The area of the sea bed over which an adjacent
zone state can claim rights of exploitation (currently up
to 320 km / 200 miles).
EEMS The Environmental Emissions Monitoring System,
also known as the SCOPEC database. This records
environmental emissions and discharges from
offshore installations in the UK sector of the North
Sea.
EIA Environmental Impact Assessment.
EL Exploration licence.
electric log See Log.
electric swivel A powered swivel which rotates the drill stem from
above the rig floor, thus replacing the kelly and
rotary table.
electro-drill A bit powered by an electric down-hole motor
which operates without the need to rotate the drill
string.
elevators A clamp used in a drilling rig to latch onto and grip
drill pipes, casings, etc. when lifting them.
emulsion Water droplets, each encased in an oil film so that
it cannot break free to separate by gravitation. An
emulsion treater normally uses heat to break down
this resistance.
enhanced oil A process whereby oil is recovered other than by
recovery the natural pressure in a reservoir.
enhanced oil Techniques sometimes described as tertiary
recovery recovery. They include, for example, injection of
(EOR) surfactant or polymer into the reservoir, fire-
flooding, steam injection and microbial action.
ETAP Eastern Trough Area Project.
EU European Union.
EVA Economic value added.
exploration Drilling carried out to determine whether
drilling hydrocarbons are present in a particular area or
structure.
exploration The phase of operations which covers the search
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

phase for oil or gas by carrying out detailed geological


and geophysical surveys followed up where
appropriate by exploratory drilling.
exploration A well drilled in an unproven area. Also known as a
well ‘wildcat well’.
farm in When a company acquires an interest in a block by
taking over all or part of the financial commitment
for drilling an exploration well.
field A geographical area under which an oil or gas
reservoir lies.
finder wells Term used to describe the most cost-effective exploration,
appraisal or development drilling, which is ‘fit for purpose’.
fishing Retrieving objects from the borehole, such as a
broken drill string, or tools.
FLAGS Far-north Liquids and Associated Gas System. A system
of offshore pipelines collecting gas from some 10 far-north
platforms centred around Brent and Ninean. The system is
operated by Shell and delivers gas to St Fergus.
flaring The controlled burning of combustible gases,
mainly for safety reasons.
formation The pressure at the bottom of a well when it is
pressure shut in at the wellhead.
formation Salt water underlying gas and oil or gas in the
water formation.
FPAL First Point Assessment Ltd. A company where
members, suppliers & contractors, can exchange
open performance reviews post contract and so
gain an insight into actual capabilities.
FPF Floating production facility.
FPSO Floating Production Storage and Offloading System.
fracturing A method of breaking down a formation by
pumping fluid at very high pressures. The objective
is to increase production rates from a reservoir.
G/C Gas condensate.
gas field A field containing natural gas but no oil.
gas injection The process whereby separated associated gas is
pumped back into a reservoir for conservation
purposes or to maintain the reservoir pressure.
gas/oil ratio The volume of gas at atmospheric pressure
produced per unit of oil produced.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

greenhouse See climate change.


gases
GUI Graphical user interface.
HARP Hydrocarbons Additional Recovery Programme.
HMG Her Majesty’s Government

HMT Her Majesty’s Treasury.


HMRC Her Majesty’s Revenue and Customs- the tax
gathering arm of Government
HSC Health and Safety Commission.
HSE Health and Safety Executive.
hydrocarbon A compound containing only the elements
hydrogen and carbon. May exist as a solid, a liquid
or a gas. The term is mainly used in a catch-all
sense for oil, gas and condensate.
IEA International Energy Agency.
injection well A well used for pumping water or gas into the
reservoir.
ITF Industry technology facilitator.
jacket The lower section, or ‘legs’, of an offshore
platform.
JIP Joint industry project.
JNCC Joint Nature Conservation Committee.
JOA Joint operating agreement.
JVs Joint ventures.
kick A well is said to ‘kick’ if the formation pressure
exceeds the pressure exerted by the mud column.
lay barge A barge that is specially equipped to lay submarine
pipelines.
LIFT Licence Initiative for Trading.
liquefied Oilfield or naturally occurring gas, chiefly methane,
natural gas liquefied for transportation.
(LNG)
liquefied Light hydrocarbon material, gaseous at
petroleum gas atmospheric temperature and pressure, held in the
(LPG) liquid state by pressure to facilitate storage,
transport and handling. Commercial liquefied gas
consists essentially of either propane or butane, or
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

mixtures thereof.
LNG Liquefied natural gas. Natural gas, gaseous at normal
temperatures and pressures but held in the liquid state at
very low temperatures (and at high pressure), to facilitate
storage and transport.

LOGGS Lincolnshire Offshore Gas Gathering System.


LOGIC Leading Oil and Gas Industry Competitiveness, a UK
industry body to develop and promote supply chain
management (now replaced by a commercial company –
Logical Advantage Ltd).
MAFF Ministry of Agriculture, Fisheries and Food. Now replaced
by DEFRA
mbpd Thousand barrels per day.
MDL Methane drainage licence.
metric tonne Equivalent to 1000 kilograms, 2204.61 pounds;
7.5 barrels.
mmboe Million barrels oil equivalent.
MMboepd (or Millions of barrels of oil equivalent per day.
mmboepd)
mmcfd Millions of cubic feet per day (of gas).
MMSCFPD (often Millions of standard cubic feet per day.
mmscfpd)
moonpool An aperture in the centre of a drill ship or semi-
submersible drilling rig, through which drilling and
diving operations can be conducted.
Mt Million tonnes.
mud A mixture of base substance and additives used to
lubricate the drill bit and to counteract the natural
pressure of the formation.
natural gas Gas, occurring naturally, and often found in
association with crude petroleum.
NERC Natural Environment Research Council.
NGLs Natural gas liquids. A mixture of liquids derived from
natural gas, including propane, butane, ethane and
gasoline components (pentanes plus).
NGOs Non-governmental organisations.
NNS Northern North Sea.
NPD Norwegian Petroleum Department.
NSDG North Sea Decommissioning Group.
NTO National Training Organisation, a body officially
recognised to provide strategic direction and co-ordination
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

on training in their industry sector.


O&G Oil and gas.
OBM See drilling mud.
OCA Offshore Contractors Association.
OECD Organisation for Economic Co-operation and
Development.
OG Oil and Gas Directorate (of the DTI).
OGITF Oil and Gas Industry Task Force. American
initiative charged with improving US offshore
deepwater drilling and safety
OIAC Oil Industry Advisory Committee. Part of the Health &
Safety Executive focussing on UK Offshore issues
http://www.hse.gov.uk/aboutus/meetings/iacs/oiac/informat
ion.htm
oil A mixture of liquid hydrocarbons of different
molecular weights.
oil field A geographic area under which an oil reservoir lies.
oil in place An estimated measure of the total amount of oil
contained in a reservoir, and, as such, a higher
figure than the estimated recoverable reserves of
oil.
OPEC Organization of Petroleum Exporting Countries.
operator The company that has legal authority to drill wells
and undertake production of the hydrocarbons that
are found. The operator is often part of a
consortium and acts on behalf of this consortium.
OPEX/opex Operating expenditure.
OPITO Offshore Petroleum Industry Training Organisation.
OSPAR Oslo and Paris Convention for the Protection of the
Marine Environment of North East Atlantic, which
regulates pollution from offshore and onshore
sources and more generally protects the marine
environment in the north east Atlantic Ocean.
OTO Oil Taxation Office (department of HMRC)
ozone layer A stratospheric layer that absorbs much of the
harmful ultraviolet rays that would otherwise reach
the earth. Chemicals such as CFCs can react in the
stratosphere to reduce the effectiveness of the
ozone layer.
pay zone Rock in which oil and gas are found in exploitable
quantities.
© The Robert Gordon University 2008 36
Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

PEDL Petroleum Exploration and Development Licence.


permeability The property of a formation which quantifies the
flow of a fluid through the pore spaces and into the
well bore.
petroleum A generic name for hydrocarbons, including crude
oil, natural gas liquids, natural gas and their
products.
photochemical An atmospheric haze sometimes occurs over large
smog industrial and urban areas. The primary
ingredients of photochemical smog are pollutants
such as oxides of nitrogen and VOCs (volatile
organic compounds). The reaction that forms the
haze is catalysed by sunlight.
PILOT Phase 2 of Oil and Gas Industry Task Force.
platform An offshore structure that is permanently fixed to
the sea bed.
PON Petroleum Operations Notice – a formal UK government
regulatory notice.
porosity The percentage of void in a porous rock compared
with the solid formation.
possible Those reserves which at present cannot be
reserves regarded as ‘probable’ but are estimated to have a
significant but less than 50% chance of being
technically and economically producible.
primary Recovery of oil or gas from a reservoir purely by
recovery using the natural pressure in the reservoir to force
the oil or gas out.
probable Those reserves which are not yet proven but which
reserves are estimated to have a better than 50% chance of
being technically and economically producible.
produced Water that is either naturally present in the
water reservoir or injected into the reservoir to ensure
sufficient pressure, and which is subsequently
produced along with the oil. The amount of
produced water increases as the well ages. In most
cases, produced water is treated to remove all but
residual amounts before it is discharged to the sea.
proven field An oil and/or gas field whose physical extent and
estimated reserves have been determined.
proven Those reserves which on the available evidence are
reserves virtually certain to be technically and economically
producible (i.e. having a better than 90% chance
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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

of being produced).
PRT Petroleum Revenue Tax.
p/therm Pence per therm (a historical method of pricing
gas).
recoverable That proportion of the oil and/or gas in a reservoir
reserves that can be removed using currently available
techniques.
recovery The ratio of recoverable oil and/or gas reserves to
factor the estimated oil and/or gas in place in the
reservoir.
reservoir The underground formation where oil and gas has
accumulated It consists of a porous rock to hold
the oil or gas, and a cap rock that prevents its
escape.
riser (drilling) A pipe between a sea bed BOP and a floating
drilling rig.
riser The section of pipework that joins a sea bed
(production) wellhead to the Christmas tree.
roughneck Drill crew members who work on the derrick floor,
screwing together the sections of drill pipe when
running or pulling a drill string.
roustabout Drill crew members who handle the loading and
unloading of equipment and assist in general
operations around the rig.
royalty The cash or ‘in kind’ paid to the owner of mineral
payment rights.
S&P 500 Standard and Poor Share Index (USA).
SAGE Scottish Area Gas Evacuation – a gas pipeline system.
SEAL Shearwater–Elgin Area Line – a gas pipeline system.
SEBA OSPAR Working Group on Sea Based Activities.
secondary Recovery of oil or gas from a reservoir by
recovery artificially maintaining or enhancing the reservoir
pressure by injecting gas, water or other
substances into the reservoir rock.
seismic A process that uses sound waves to characterise
survey the shape of underground rock formations and to
identify, among other things, possible
hydrocarbon-bearing formations. On the UK
continental shelf, seismic surveys are carried out
from specially equipped vessels.

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Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

shutdown A production hiatus during which the platform


ceases to produce while essential maintenance
work is undertaken.
SMEs Small- and medium-sized enterprises.
SMS See drilling mud.
SNS Southern North Sea.
spud-in The operation of drilling the first part of a new
well.
SSSL Supplementary Seismic Survey Licence.
suspended A well that has been capped off temporarily.
well
tcf Trillion cubic feet (of gas).
tonne of oil One tonne of oil equivalent is defined as having a calorific
equivalent value of 397 therms. All fuels, including crude oil and
petroleum products, can be converted to tonnes of oil
equivalent using their own calorific values.
tool pusher Second-in-command of a drilling crew under the
drilling superintendent. Responsible for the day-to-
day running of the rig and for ensuring that all the
necessary equipment is available.
topsides The superstructure of a platform.
UKCS United Kingdom continental shelf.
UKOOA UK Offshore Operators Association Limited – the
trade association for the UK offshore oil and gas
industry. Replaced by Oil and Gas UK in 2007.
UKPIA United Kingdom Petroleum Industry Association Limited.
UKT&I UK Trade &Investment.
(http://www.ukti.gov.uk/export.html)
The government organisation that brings together the work
of the Foreign and Commonwealth Office and the
Department of Trade and Industry in support of British
trade and investment overseas.
UNFCCC The United Nations Framework Convention on
Climate Change, one of three conventions signed
at the Rio Earth Summit in 1992. The convention
commits signatory countries to controlling the
emissions of greenhouse gases (see climate
change).
venting The release of unburned gases to the atmosphere.
WBM See drilling muds.

© The Robert Gordon University 2008 39


Oil and Gas Management Topic 1: Glossary of Oil and Gas Terminology

well log A record of geological formation penetrated during


drilling, including technical details of the operation.
wildcat well A well drilled in an unproven area. Also known as
an ‘exploration well’.

The term comes from exploration wells in West


Texas in the 1920s. Wildcats were abundant in the
locality, and those unlucky enough to be shot were
hung from oil derricks.
WoB West of Britain.
workover Remedial work to the equipment within a well, the
well pipework, or relating to attempts to increase
the rate of flow.
WoS The Atlantic Ocean area to the west of the
Shetland Isles.

© The Robert Gordon University 2008 40

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