Glossary of Oil & GasIndustryTerms

Associaledgas * naturalgas produced with crudeoil tromthe samereservoir. products for oil and petroleum Banel - a unit of measure that is equivalent to 42 U.S.gallons. Blowaut* the uncontrolled flowof gas,oil or otherfluidsfroma well. Blowottt preventer (BOP)- the equipment installed at the wellhead to controlpressures in the annular spacebetween the casing anddrillpipeor tubing during drilling, and completion, workover operations. tree. See alsoChristmas Brtne - see oroduced water British thermal unit (BTI| - a measureof the heatingvalue of a fuel intoa wellbore and cemented in placeto protectboth subsurface Casing- metalpipe inserted (suchas grouncfirater) formations casingis setfirst to protect and the wellbore. A surface groundwater. The production casingis the last one set.The production tubing(through which hydrocarbons flow to the surface) will be suspended insidethe production casing. Christmastree - the assembly of valves,pipes,and fittingsusedto confol the flow of oil and gasfroma well. pipeflexibleenoughto be storedon and deployed froma Coiled tubing - a long,smalldiameter jointedpipe in certain large,truck-mounted roll. Usedto replace typesof drilling,completion, and workover operations. the pressure Compressor- an engineusedto increase of naturalgas so that it willflow more easilythrough a pipeline Developnent wdl - a well drilledwithinthe provedareaof an oil or gas reservoir to the depthof a stratigraphic horizonknownto be productive; a well drilledin a provenfieldfor the purpose of completing the desiredspacingpatternof production. tools,eguipment, and instruments or Downhole- a termusedto describe usedin the wellbore, ortechniques conditions applying to the wellbore. the refining and Downstream- whenreferring to the oil and gas industry, this termindicates sectorsof the industry. the termcan be usedto referto any step marketing Moregenerically, furtheralongin the process. DriII cuttings - the smallpiecesof rockcreatedas a drillbit movesthroughunderground formations whiledrilling. afterall waterand naturalgas liquidshavebeen Dry gas - the volumeof gas remaining removed. quantities of or development wellthat doesnotfind commercial Dry hole- any exploratory hydrocarbons. E&P - Exploration and production. The "upstream" sectorof the oil and gas industry.

filledwith well or dry holethat has been(typically) P&A (plugged and abandoned)- a depleted and marked, with all surface equipment removed. cement fluid throughporespaces. Permeability- a measure of the abilityof a rockto transmit rock andthe total bulk the volumeof the porespacein reservoir Porosity- a ratiobetween for storage of the amount of spaceavailable volume of the rock.The porespacedetermines fluids. water ftom the subsurface with oil and gas. lt may include Produced water- the waterextracted added the formation, and any chemicals waterthat has beeninjected into fromthe reservoir, "brine" (andmaycontain processProduced during the production/treatment wateris alsocalled wateris quitefreshand may be water."Someproduced highmineralor sattcontent) or "formation (where watering allowed by law). usedfor livestock or irrigation and paid froma leasethat is retained interest in the valueof production Royalty - a percentage rights to the mineral owner. - the processof separating and water.This is typicatly liquidand gas hydrocarbons Separation to but newer technologies allowseparation in a pressure vessel at the surfuce, accomplished occurin the wellbore undercertain conditions. or a wellon whichthevalveshave on a wellso thatit stopsproduction, Shutin - to closevalves beenclosed. free sulfuror othersulfurcompounds whosetotal sulfurcontentis Sour crude oil - oilcontaining in excessof 1 percent. gascontaining hydrogen Sour gas- natural sulfide. is often tromthe samereservoir. wellsproducing between Spacing Spacing- the distance by regulatory spacing, and is oftenestablished expressed in termsof acres, e.9.,4O-acre agencies. to enlargeold channels, or cteatenew ones, Stimulation- the termusedfor severalprocesses production. include acidizing to enhance formation of a welldesigned Examples in the producing andfracturing. beingexertedinsidethe wherethe pressure drilling - drilllngunderconditions Underbalanced (tromthe drilling of the oil or gas in theformation. fluids)is lessthanthe pressure wellbore reservoir through of gasesor fluidsintoan underground Undergroundinj*tion - the placement processes or for oil recovery or waterflooding a wellbore. May be usedas partof enhanced water. disposal of produced - the exploration portions of the oil andgasindustry. andproduction Upstream oil out of the to "push"additional of waterintoan oil reservoir Waterflooding* the injection of producing wells. reservoir rockand intothewellbores the pointat which the pressure; at the surfaceof a well usedto cordrol Wellhead* the equipment the hydrocarbons andwaterexitthe ground

Enhancedoil recavery (EOR)* refersto a varietyof processes to increase the amountof oil removed froma reservoir, typically by injecting a liquid(e.9., water,surfactant) or gas (e.9., nitrogen, carbon dioxide). Exploratory well - a holedrilled:a) to find and produce oil or gas in an areapreviously considered unproductive area', b) to finda nev/reservoir in a known field,i.e.,one previously producing oil and gasfrom anotherreservoir, or c) to extendthe limitof a knownoil or gas reservorr. Field - An areaconsisting of a singlereservoir or multiple reservoirs all groupedon, or relatedto, geological the sameindividual structural feature Thefieldnamerefers or sfatigraphic condition. to the surfacearea,although productive it mayreferto boththe surface andthe underground formations. Formation damage- the reduction in permeability in reservoir rockdue to the infiltration of drilling or treating fluidsintothe areaadjacent to thewellbore. pressure Fractuting - the application of hydraulic to the reservoirformation to createfractures through whichoil or gas maymoveto thewellbore. of naturalgasto a liquidformso that it can be Gas-to-Uquids(GfU - the conversion transported easily. Typically, gaspriorto consumption. the liquidis converted backto natural Gravity - a standard Petroleum Institute for measuring adoptedby the American the densityof a liquid. is expressed Gravity in degrees withlowernumbers indicating heavier liquids and higher numbers indicating lighter liquids. - whenapplied lntegrated to an oil company, it indicates a firmthatoperates in boththe upstream and downstream sectors(fromexploration and marketing) throughrefining Lease- a legaldocument conveying the rightto drillfor oil andgas,or the tractof landon which a leasehas beenobtained wherethe producing wellsand production equipment are located. Lifting cosls - the costof producing oil froma well or lease. Log - to conducta surveyinsidea borehole to gatherinformation aboutthe subsurface formations; the results of sucha survey. consist of several Logstypically curves on a longgrid properties that describe withinthe wellbore or surrounding formations that canbe interpreted to provide information aboutthe location of oil,gas,andwater. Alsocalled welllogs,borehole logs, wireline logs. Midstram - a termsometimes usedto referto thoseindustry that fall between activities (upstream) (downstream). exploration and production and refining andmarketing Thetermis gas. mostoftenapplied to pipeline transportation of erude oil and natural Natural gas liquids (NGL)- the portions that are liquified of gasfroma reservoir at the surface plants. plants in separators, fieldfacilities, or gasprocessing NGLfromgas processing is also petroleum gas (LPG). calledliquffied IVon'associatd gas- naturalgas produced froma reservoir that doesnot containsignificant quantities of crudeoil. in the U.S.for the offshore Shelf, a termusedprimarily areasunder OCS- OuterContinental federaljurisdiction.

Well sewtcing - maintenance workperformed on an oil or gaswell to improve or maintain the production. llllet gas--naturalgas containing amounts of liquifiable significant hydrocarbons. Wihtcatrell - a well drilledin an areawhereno curent oil or gas production exists.Alsocalleda "rankwildcat.' Worlrcver-operations on a producirqrlell to restoreoqincreaseproductbn. A workovermay be performed to stimulate the well,romovesandor waxfromthe welhore,to mechanically repairthe well,or for sther reasons. Wn - West TexasIntermediate, a typeof crudeoil comrnonly usedas a pricebencfrmark.