| Key Terms |
Definition |
| Crude Oil |
A mixture of hydrocarbons that exists in liquid phase in natural underground reservoirs and remains
liquid at atmospheric pressure after passing through surface separating facilities. Depending upon
the characteristics of the crude stream, it may also include:
Small amounts of hydrocarbons that exist in gaseous phase in natural underground reservoirs but are
liquid at atmospheric pressure after being recovered from oil well (casinghead) gas in lease
separators and are subsequently commingled with the crude stream without being separately measured.
Lease condensate recovered as a liquid from natural gas wells in lease or field separation facilities
and later mixed into the crude stream is also included;
Small amounts of nonhydrocarbons produced with the oil, such as sulfur and various metals;
Drip gases, and liquid hydrocarbons produced from tar sands, gilsonite, and oil shale.
Liquids produced at natural gas processing plants are excluded. Crude oil is refined to produce a
wide array of petroleum products, including heating oils; gasoline, diesel and jet fuels; lubricants;
asphalt; ethane, propane, and butane; and many other products used for their energy or chemical content.
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| Dry Natural Gas |
Natural gas which remains after: 1) the
liquefiable hydrocarbon portion has been removed from the
gas stream (i.e., gas after lease, field, and/or plant separation);
and 2) any volumes of nonhydrocarbon gases have been
removed where they occur in sufficient quantity to render the
gas unmarketable. (Note: Dry natural gas is also known as
consumer-grade natural gas. The parameters for measurement
are cubic feet at 60 degrees Fahrenheit and 14.73 pounds
per square inch absolute.)
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| Federal Offshore |
Located in Federal
domain, seaward of the coastline.
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| Lease Condensate |
A mixture consisting primarily of pentanes and heavier hydrocarbons which is recovered as a
liquid from natural gas in lease separation facilities. This category excludes natural gas plant
liquids, such as butane and propane, which are recovered at downstream natural gas processing
plants or facilities.
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| Natural Gas Liquids |
Those hydrocarbons in natural gas which are separated from the gas through the processes
of absorption, condensation, adsorption, or other methods in gas processing or cycling
plants. Generally such liquids consist of propane and heavier hydrocarbons and are
commonly referred to as condensate, natural gasoline, or liquefied petroleum gases.
Where hydrocarbon components lighter than propane are recovered as liquids, these
components are included with natural gas liquids. |
| Natural Gas, Wet After Lease Separation |
The volume of natural gas remaining after removal of lease condensate in lease and/or
field separation facilities, if any, and after exclusion of nonhydrocarbon gases where
they occur in sufficient quantity to render the gas unmarketable. Natural gas liquids
may be recovered from volume of natural gas, wet after lease separation, at natural gas
processing plants.
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| Proved Reserves |
Proved reserves of natural gas as of December 31 of the report year are the estimated
quantities which analysis of geological and engineering data demonstrate with reasonable
certainty to be recoverable in future years from known reservoirs under existing
economic and operating conditions.
Reservoirs are considered proved if economic producibility is supported by actual production
or conclusive formation test (drill stem or wire line), or if economic producibility is
supported by core analyses and/or electric or other log interpretations.
The area of a gas reservoir considered proved includes: (1) that portion delineated by
drilling and defined by gas -- oil and/or gas -- water contacts, if any; and (2) the
immediately adjoining portions not yet drilled, but which can be reasonably judged as
economically productive on the basis of available geological and engineering data. In the
absence of information on fluid contacts, the lowest known structural occurrence of
hydrocarbons is considered to be the lower proved limit of the reservoir.
Volumes of natural gas placed in underground storage are not to be considered proved
reserves.
For natural gas, wet after lease seperation, an appropriate reduction in the reservoir gas
volume has been made to cover the removal of the liquefiable portions of the gas in lease and/or
field separation facilities and the exclusion of nonhydrocarbon gases where they occur in
sufficient quantity to reder the gas unmarketable.
For dry natural gas, an appropriate reduction in the gas volume has been made to cover the
removal of the liquefiable portions of the gas in lease and/or field separation facilities,
and in natural gas processing plants, and the exclusion of nonhydrocarbon gases where they
occur in sufficient quantity to render the gas unmarketable.
It is not necessary that production, gathering, or transportation facilities be installed or
operative for a reservoir to be considered proved. It is to be assumed that compression
will be initiated if and when economically justified.
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Definitions