Glossary of Terms
Navigate the world of energy investments with ease by familiarizing yourself with our comprehensive glossary of terms. From industry jargon to technical concepts, our glossary will help you understand the language of the energy sector.
#
3D Seismic Imaging
A technology used in the oil and gas industry to create detailed images of subsurface rock formations. It involves using an array of sensors to detect and record the reflections of artificially generated seismic waves. The data is then processed to generate a three-dimensional (3D) image of the subsurface, helping geologists and engineers to better understand the geology and identify potential oil and gas reservoirs. This technology has significantly improved the accuracy of oil and gas exploration and reduced the number of unsuccessful wells drilled.
4D Seismic Monitoring
A method used in the oil and gas industry to track changes in subsurface reservoirs over time. It involves acquiring multiple 3D seismic surveys at different times during the life of a field. By comparing these surveys, geologists and engineers can monitor changes in reservoir properties, such as fluid saturation and pressure, allowing them to optimize production strategies, improve reservoir management, and reduce costs. This technology provides valuable insights into how reservoirs evolve over time and helps maximize the recovery of oil and gas resources.
A
Abandonment
The process of permanently sealing a well that is no longer producing oil or gas. This typically involves filling the wellbore with cement or other materials to prevent any fluids from flowing through the well.
Acidizing
The process of injecting acid into the well to dissolve rock and increase the flow of oil or gas. This technique may be used in wells with low production rates or to stimulate production in specific areas of the well.
Annulus
The space between the outside of the well casing and the surrounding rock formations. The annulus is typically filled with cement or other materials to prevent oil or gas from escaping into other formations or the environment.
API gravity
A measure of how heavy or light a petroleum liquid is compared to water, developed by the American Petroleum Institute (API).
Appraisal well
A well drilled to assess the size, production capacity, and economic potential of a discovered oil or gas reservoir.
Artificial Lift
A technique used to increase the flow of oil or gas from a well when it is no longer producing enough on its own. This can be done using various methods, such as pumping gas or liquid into the well, to increase pressure and stimulate production.
B
Barrel
A unit of measurement used to quantify the amount of crude oil or petroleum products. One barrel is equivalent to 42 U.S. gallons or approximately 159 liters.
Blowout
A sudden, uncontrolled release of oil or gas from a well. Blowouts can be dangerous and have the potential to cause environmental damage.
Blowout preventer (BOP)
A large, specialized valve used to seal, control, and monitor oil and gas wells to prevent the uncontrolled release of hydrocarbons.
C
Carbon Capture and Storage (CCS)
A process that captures carbon dioxide emissions from power plants or other industrial sources and stores them underground or in other locations. CCS is seen as a way to reduce greenhouse gas emissions and mitigate climate change.
Carbon Dioxide (CO2) Flooding
A technique used to increase oil production by injecting carbon dioxide into the reservoir to reduce the viscosity of the oil and increase its flow rate. This process can also help to store carbon dioxide underground and reduce greenhouse gas emissions.
Casing
The steel pipe that lines a wellbore and prevents the walls from collapsing. Casing also helps to prevent oil or gas from escaping into other rock formations or the environment.
Clean Fracking
A term used to describe hydraulic fracking that is done in a more environmentally friendly manner. Clean fracking typically involves using less water and chemicals, and recycling the water that is used in the process.
Coalbed Methane
A type of natural gas that is found in coal seams. Coalbed methane is typically extracted using hydraulic fracturing and can be used for various purposes, such as heating and electricity generation.
Coal Gasification
A process that converts coal into synthetic gas or “syngas” by heating it in the presence of steam and oxygen. The syngas can be used as a fuel or feedstock for various industrial processes.
Coal Liquefaction
A process that converts coal into liquid fuels, such as diesel and gasoline, by treating it with various chemicals and catalysts. Coal liquefaction can be more expensive and environmentally intensive than other methods of producing liquid fuels.
Completion
The process of preparing a well for production, including installing production equipment and perforating the well casing to allow oil or gas to flow into the wellbore. This process may also involve hydraulic fracturing to increase production rates.
Condensate Stabilization
The process of removing impurities and other substances from natural gas condensate to improve its quality and make it easier to transport and refine.
Cracking
A process used in oil refining to break down larger hydrocarbon molecules into smaller ones, which can be used to produce various products such as gasoline and diesel fuel.
Christmas Tree
A set of valves and other equipment installed on top of the wellhead to control the flow of oil or gas from the well. The Christmas tree typically includes various valves, gauges, and chokes that allow for the safe and efficient production of oil or gas. The name “Christmas tree” comes from the resemblance of the equipment to a decorated tree.
Crude Assay
The process of analyzing a sample of crude oil to determine its properties, such as density, sulfur content, and viscosity. This information is used to determine the best way to refine the crude oil into various products.
Crude Oil
A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials. Crude oil is typically extracted from underground reservoirs and transported to refineries for processing into various products, such as gasoline, diesel fuel, and lubricants. The properties of crude oil, such as its density, sulfur content, and viscosity, can vary widely depending on the location and geological conditions of the reservoir.
D
Dehydration
The process of removing water from natural gas or other fluids to prevent corrosion or other problems in pipelines and other equipment.
Desalination
The process of removing salt and other minerals from water to make it safe for drinking, irrigation, or other uses. Desalination can be done using various methods, such as distillation or reverse osmosis.
Distillation
A process used in oil refining and other industries to separate different components of a mixture based on their boiling points. This process involves heating the mixture and collecting the vapors that are produced at different temperatures.
Downstream
The part of the oil and gas industry involved in refining, processing, and distributing oil and gas products to consumers. Downstream operations typically involve more complex and sophisticated technologies than upstream operations.
Drill Bit
The cutting tool attached to the end of the drill string that is used to drill through rock formations. Drill bits may be designed for various types of rock and drilling conditions.
Drill String
The length of pipe that connects the drill bit to the drilling rig and allows drilling fluids to circulate through the wellbore. The drill string may also include various tools and sensors used to measure various properties of the well and surrounding rock formations.
Drilling Fluid
A mixture of water, clay, and various chemicals used to lubricate and cool the drill bit and carry rock cuttings to the surface during drilling. Drilling fluid may also be used to control pressure and stabilize the wellbore.
Drilling Mud
A mixture of water, clay, and various chemicals used to lubricate and cool the drill bit and carry rock cuttings to the surface during drilling. Drilling mud may also be used to control pressure and stabilize the wellbore.
E
Enhanced Gas Recovery (EGR)
A technique used to increase the production of natural gas from reservoirs by injecting various materials, such as carbon dioxide or nitrogen, into the reservoir to increase pressure and stimulate production.
Enhanced Oil Recovery (EOR)
The use of various techniques to increase the amount of oil that can be recovered from a reservoir. This may involve injecting steam, gas, or chemicals into the well to alter the properties of the oil and make it easier to extract.
F
Field
An area containing one or more oil or gas reservoirs. Fields may be classified as conventional or unconventional, depending on the type of reservoir and the methods used to extract oil or gas.
Flaring
The process of burning off excess natural gas that is produced during oil production. Flaring can be harmful to the environment due to the release of greenhouse gases, but is sometimes necessary when there is no infrastructure in place to capture the gas.
Fracking
Short for hydraulic fracturing, fracking is a technique used in the oil and gas industry to extract natural gas and oil from deep underground rock formations, particularly shale. The process involves injecting a high-pressure fluid mixture consisting of water, sand, and chemicals into the rock to create fractures, allowing the trapped oil or gas to flow more easily to the wellbore. Fracking has revolutionized the energy industry by significantly increasing the production of oil and natural gas in countries like the United States.
Fractionation
The process of separating various components of crude oil or natural gas liquids into different products, such as gasoline, diesel fuel, and propane. Fractionation typically involves various distillation and separation techniques.
G
Gas-to-Liquids (GTL)
A process that converts natural gas into liquid fuels, such as diesel and jet fuel, using various chemical reactions. GTL technology has the potential to reduce the environmental impact of fossil fuels by producing cleaner-burning fuels.
Gas Processing Plant
A facility used to separate and purify natural gas from impurities and other substances. Gas processing plants may also extract valuable natural gas liquids, such as propane and butane, from the natural gas stream.
Gas Storage
The process of storing natural gas in underground reservoirs or other facilities for later use. Gas storage is typically used to meet peak demand during periods of high energy consumption.
Gas Lift
A technique used to increase the flow of oil or gas from a well by injecting gas into the wellbore, reducing the pressure in the well and allowing the oil or gas to flow more easily to the surface.
H
Hydraulic fracturing (fracking)
A technique used to extract natural gas or oil from underground rock formations by injecting water, sand, and chemicals into the rock at high pressure to create tiny cracks. This process allows the oil or gas to flow more easily to the wellbore, increasing production rates. However, hydraulic fracking is controversial due to concerns about its potential impact on the environment and public health.
Hydrocracking
A refining process that uses hydrogen to break down heavier hydrocarbon molecules into lighter, more valuable products, such as gasoline and diesel fuel. Hydrocracking is performed under high pressure and temperature in the presence of a catalyst, which helps to break the chemical bonds in the hydrocarbon molecules. This process is essential in the oil refining industry for maximizing the production of valuable fuels from crude oil.
Hydrotreating
A refining process that involves treating oil or gas with hydrogen in the presence of a catalyst to remove impurities, such as sulfur, nitrogen, and metals. Hydrotreating improves the quality of the refined products by reducing their environmental impact and increasing their compatibility with various engines and industrial processes. This process is widely used in the oil and gas industry to produce cleaner, more efficient fuels.
I
In-Situ Extraction
A technique used to extract oil from oil sands by injecting steam or solvents into the ground to liquefy the bitumen and allow it to flow to the surface. In-situ extraction is typically less expensive and less environmentally intensive than oil sand mining.
Infill Drilling
The process of drilling additional wells within an existing oil or gas field to increase production rates and recover additional reserves. Infill drilling may involve drilling wells in areas with known reserves that were not previously exploited, or drilling wells closer together to access more of the reservoir.
J
Jack-up Rig
A type of drilling rig used for offshore oil and gas exploration and production. Jack-up rigs are supported by legs that are lowered to the seafloor, allowing the rig to be raised above the waterline for drilling operations. They are typically used in shallow water and may be moved from one location to another as needed.
Joule
A unit of energy in the International System of Units (SI). It is equal to the amount of work done when a force of one newton moves an object one meter in the direction of the force. In the oil and gas industry, the joule is used to quantify the energy content of various fuels, such as natural gas, crude oil, and refined products like gasoline and diesel. One joule is equivalent to approximately 0.0009478 British thermal units (BTUs).
Joule-Thomson Effect
A thermodynamic process that occurs when a fluid, such as natural gas or oil, expands from a high-pressure environment to a lower pressure environment. As a result, the fluid experiences a temperature change, typically cooling as it expands. The Joule-Thomson Effect is important in various industrial processes, such as natural gas processing and transportation, where controlling the temperature of the fluid is critical for efficient and safe operations.
K
Kerogen
A naturally occurring organic material found in oil shale and other sedimentary rocks. Kerogen is a precursor to oil and natural gas, and can be converted into these hydrocarbons through a process called pyrolysis, which involves heating the rock in the absence of oxygen. The properties and composition of kerogen vary widely, which can impact the ease and cost of extracting oil and natural gas from oil shale and other unconventional resources.
Kick
An influx of formation fluids into the wellbore, usually indicating a pressure imbalance between the drilling mud and the formation pressure.
L
Lease
A legal agreement between an oil and gas company and the owner of a property or mineral rights that allows the company to explore, drill, and produce oil or gas from the property. Leases typically include provisions for payment of royalties and other fees to the property owner.
Liquefied Natural Gas (LNG)
Natural gas that has been cooled to a liquid state for easier transportation and storage. LNG is typically shipped in large tanker ships to destinations around the world.
M
Midstream
The segment of the oil and gas industry that deals with the transportation, storage, and marketing of crude oil, natural gas, and refined products.
Mud Logging
The process of analyzing rock cuttings brought to the surface during drilling to determine the presence of oil or gas. This information can help to guide further drilling activities and optimize production rates.
N
Natural Gas Liquids (NGLs)
Hydrocarbons, such as propane and butane, that are extracted from natural gas during processing. NGLs are typically used as feedstocks for various industrial processes, such as petrochemical production.
Nodding Donkey
Also known as a pumpjack or an oil rig pump is a reciprocating piston pump used to mechanically lift oil from a well when the natural pressure is insufficient to bring the oil to the surface. The pumpjack consists of a system of counterweights and a walking beam that creates an up-and-down motion, transferring energy to the downhole pump to extract the oil.
O
Offshore / Offshore platform
A structure used to explore, drill, and produce oil and gas in underwater reservoirs.
Oil and Gas Reserves
The estimated amount of oil or gas that can be economically produced from a reservoir using current technology and market conditions. Reserves are typically classified as proven, probable, or possible, depending on the level of certainty surrounding their estimated size and recoverability.
Oil Refinery
A facility used to refine crude oil into various products, such as gasoline, diesel fuel, and lubricants. Oil refineries typically use various processes, such as distillation and cracking, to separate the different components of crude oil.
Oil Sand Mining
A technique used to extract oil from oil sands by mining the sand and then separating the bitumen from the sand using various processes, such as hot water or solvents. Oil sand mining is typically more expensive and environmentally intensive than in-situ extraction techniques.
Oil Sands
A type of unconventional oil deposit that is found in sand or sandstone formations mixed with a thick, heavy substance called bitumen. Extracting oil from oil sands requires specialized techniques, such as mining or in-situ extraction, and can be more costly and environmentally intensive than conventional oil production.
Onshore
Operations relating to oil and gas exploration, drilling, and production that take place on land, as opposed to offshore operations.
P
Perforating
The process of creating small holes in the well casing to allow oil or gas to flow into the wellbore. This is typically done using a perforating gun, which uses explosives to create the holes.
Permeability
A measure of the ease with which fluids can flow through a rock formation, affecting the rate of oil and gas production.
Petroleum Engineering
The branch of engineering that deals with the exploration, drilling, and production of oil and gas reserves. Petroleum engineers may also be involved in designing and implementing various technologies to improve production rates and reduce environmental impacts.
Pipeline
A system of pipes used to transport oil or gas from the well to a processing facility or other destination. Pipelines are typically the most efficient and cost-effective way to transport oil and gas over long distances.
Produced Water
Water that is extracted from the well along with oil or gas. Produced water may contain various contaminants and must be treated before it can be safely disposed of or reused.
Production platform
A structure used to support oil and gas production facilities, including wells, processing equipment, and storage facilities.
Q
Quadrant
In the context of oil and gas exploration, a quadrant refers to a specific area on a map, often used to divide and organize offshore licensing areas. Each quadrant can be further divided into smaller blocks for more precise location identification and management.
Quenching
A process to rapidly cool down hot liquids or gases, such as those produced during refining or gasification. Quenching can be accomplished using water, air, or other cooling agents, and helps to prevent the formation of unwanted byproducts, control reactions, or minimize the risk of equipment damage due to high temperatures. In refining, quenching is often used to cool and condense hydrocarbon vapors to facilitate their separation and further processing.Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.
R
Recompletion
The process of reconfiguring or modifying a well to improve its productivity. This may involve changing the wellbore location, installing new equipment, or treating the well with various chemicals or materials.
Re-entry
The process of returning to a well that has already been drilled and completed to perform additional activities, such as stimulation or workover operations. Re-entry may involve drilling a new wellbore or using existing equipment to access the well.
Royalty
A percentage of the revenue generated from oil and gas production, paid to the landowner or mineral rights owner by the operating company.
S
Saltwater Disposal
The process of disposing of produced water by injecting it into an underground formation. This process is typically regulated by state and federal agencies to ensure that it is done safely and does not contaminate groundwater.
Sand Control
The process of preventing sand and other small particles from entering the wellbore and interfering with production. This may involve installing screens or filters in the well or treating the well with various chemicals or materials.
Secondary Recovery
The process of recovering additional oil or gas from a well after the primary production has slowed down. This may involve injecting water, gas, or other materials into the well to increase pressure and stimulate further production.
Seismic Imaging
A technique used to create images of the subsurface geology by sending sound waves into the ground and measuring the echoes that bounce back. Seismic imaging is used to help locate potential oil and gas reserves and plan drilling activities.
Seismic survey
A technique used to create images of subsurface rock formations by analyzing the reflection and refraction of seismic waves generated by controlled explosions or vibrations.
Shale Gas
A type of natural gas trapped in shale rock formations that has low permeability. Shale gas is typically extracted using hydraulic fracturing and horizontal drilling techniques.
Stimulation
The process of treating a well to increase its productivity, usually by hydraulic fracturing or acidizing. This process may involve injecting various chemicals or other materials into the well to increase the flow of oil or gas.
Sweet Crude
Crude oil that contains relatively low levels of sulfur. Sweet crude is typically easier to refine and is in high demand by refineries.
T
Tight Gas
Natural gas trapped in shale or sandstone formations that have low permeability. Tight gas reserves require specialized drilling and extraction techniques, such as hydraulic fracturing and horizontal drilling.
Tight Oil
Oil trapped within low-permeability rock formations, such as shale or tight sandstone, which requires advanced extraction techniques like hydraulic fracturing.
Total Depth (TD)
The maximum depth reached by a wellbore, typically measured in feet or meters below the surface.
Tubing
A series of smaller-diameter steel pipes used to transport fluids between the wellbore and the surface production equipment.
U
Underbalanced Drilling (UBD)
A drilling technique used in the oil and gas industry where the pressure in the wellbore is intentionally kept lower than the pressure of the surrounding formations. This method can help minimize formation damage, increase the rate of penetration, and improve overall drilling efficiency. Underbalanced drilling can also reduce the risk of differential sticking, which occurs when the drill pipe becomes stuck in the wellbore due to pressure differences. UBD typically requires specialized equipment and techniques to manage and control the well pressure during drilling operations.
Upstream
The part of the oil and gas industry involved in exploration, drilling, and production of oil and gas reserves. Upstream operations typically involve more physical and technical challenges than downstream operations.
V
Vertical drilling
A method of drilling a wellbore straight down into the Earth, as opposed to horizontal or directional drilling.
Viscosity
A measure of a fluid’s resistance to flow, which can affect the ease with which oil or gas can be produced and transported. In the oil and gas industry, viscosity is an important property of crude oil and natural gas liquids, as it influences their behavior during production, transportation, and refining. High-viscosity fluids, such as heavy oil, may require specialized techniques and equipment for extraction and processing, while low-viscosity fluids can often be produced and processed more easily. Viscosity can be affected by temperature, pressure, and the composition of the fluid.
W
Wellbore
The hole drilled into the Earth to access oil and gas reservoirs, typically lined with casing to provide structural integrity.
Wellhead
The equipment at the surface of a well that controls the flow of oil or gas. The wellhead typically includes valves, pipes, and other equipment that allow for the safe and efficient extraction of oil or gas from the well.
Well Logging
The process of measuring various properties of the well and surrounding rock formations to gain a better understanding of the geology and potential oil or gas reserves.
Well Testing
The process of measuring the flow rate and other properties of a well to determine its productivity and potential oil or gas reserves.
Wildcat
A term used to describe an exploratory well drilled in an unproven area or formation. Wildcat wells are typically drilled with the hope of discovering new oil or gas reserves, but are also considered risky and may not produce commercially viable amounts of oil or gas.
Wireline
A cable used to lower tools and measuring devices into a wellbore to perform various operations, such as logging, perforating, and setting plugs.
Workover
The process of performing maintenance or repairs on a well to restore or improve its productivity. This may involve various activities, such as cleaning out the wellbore, replacing damaged equipment, or re-perforating the well casing.
X
X-ray diffraction (XRD)
A laboratory technique used to identify and analyze the mineralogy of rock samples, providing valuable information about the composition and properties of reservoir formations.
X-ray Fluorescence (XRF) Spectrometry
A technique used in the oil and gas industry for analyzing the elemental composition of geological samples, such as rocks, minerals, and sediments. XRF spectrometry involves exposing a sample to X-rays, which cause the sample to emit secondary X-rays with characteristic energies specific to the elements present. By measuring the emitted X-rays, scientists can determine the concentrations of various elements in the sample. This information is valuable in petroleum geology, as it can help identify the presence of hydrocarbon-bearing formations and evaluate their potential as reservoirs.
Y
Yield
The amount of oil or gas that can be extracted from a reservoir, usually expressed as a percentage of the total volume of hydrocarbons in place.
Young's Modulus
In the context of oil and gas exploration and production, Young’s Modulus is a measure of the stiffness or rigidity of a material, such as rock or steel. It is defined as the ratio of stress (force per unit area) to strain (deformation) within the elastic range of a material. Young’s Modulus is important in the oil and gas industry as it can be used to evaluate the mechanical properties of rock formations, predict the behavior of materials under various conditions, and optimize drilling and extraction processes.
Z
Zone
A specific layer or interval within a reservoir, characterized by similar rock properties, fluid content, and pressure conditions.
Zone Isolation
A technique used in the oil and gas industry to separate different zones or layers within a reservoir to optimize production and prevent unwanted fluid migration. Zone isolation is achieved by installing specialized equipment, such as packers and inflatable barriers, in the wellbore to seal off specific sections of the reservoir. This method allows for more precise control over the production process and helps to maximize the recovery of oil and gas from each zone, while minimizing the potential for water or gas breakthrough.
Evolving Glossary of Oil & Gas Industry Terms
Please note that this list of oil and gas industry terms is by no means complete, and we will continue to add to and update it regularly. If you come across any unknown terms or concepts related to this industry, feel free to ask us about them so that we can include them in our ongoing glossary of terms. We appreciate your input and assistance in making this resource as comprehensive and useful as possible.
Unlock the Power of Knowledge for Smarter Investments
Empower your investment journey with the right resources and expert support from Green Global Energies. Equip yourself with valuable market insights, educational content, and personalized guidance to make informed decisions in the dynamic energy sector. Take the first step towards success by leveraging our comprehensive investor resources.