180+ Oil and Gas Industry Terms

Explore essential oil and gas industry terms in this glossary! From exploration to refining, equip yourself with key industry terminology.

Oil and gas are vital energy sources that power our everyday lives, from fueling our cars to heating our homes. Understanding the terminology specific to the oil and gas industry is essential for anyone interested in this critical sector.

Whether you’re a student, enthusiast, or future professional, this guide will equip you with the knowledge you need to navigate the oil and gas industry with confidence. So, let’s embark on this journey together and uncover the mysteries of the oil and gas world!

Oil and Gas Industry Terms for Drilling and Exploration

API Gravity [ey-pee-ahy grav-i-tee]: A measure of the density of oil, used to classify different types of crude.
Blowout [bloh-out]: Uncontrolled release of oil or gas from a well, often due to a loss of well control.
Completion [kuhm-plee-shun]: The final stage of drilling a well, where the well is prepared for production.
Directional Drilling: A method of drilling that allows for intentional deviation from vertical to reach specific targets or maximize reservoir exposure.
Drillstem Test: A procedure to evaluate the potential of a reservoir by analyzing fluid and pressure data obtained from a formation during drilling.
Enhanced Gas Recovery (EGR): Techniques used to increase the recovery of natural gas from reservoirs, such as injecting gas or other substances to improve reservoir performance.
Enhanced Oil Recovery (EOR): Techniques used to extract additional oil from reservoirs beyond primary and secondary methods.
Enhanced Oil Recovery (EOR): Techniques used to extract additional oil from reservoirs by injecting substances like steam, gas, or chemicals to improve oil mobility.
Formation Evaluation [for-mey-shuhn ih-val-yoo-ey-shuhn]: Assessing subsurface formations to determine their potential for oil and gas.
Geosteering [jee-oh-steer-ing]: The process of directing a wellbore along a specific path in the reservoir to optimize production.
Hydraulic Fracturing [hahy-draw-lik frak-cher-ing]: Injecting fluid under pressure to create fractures in rock formations, allowing for the extraction of oil or gas.
Infill Drilling [in-fil dril-ing]: The process of drilling additional wells between existing ones to maximize recovery from a reservoir.
Jack-up Rig: A mobile drilling platform that can be raised above the water’s surface by legs.
Logging [log-ing]: Measuring and recording data from the wellbore to evaluate formations and well conditions.
Mud Logging: Analyzing rock cuttings and drilling mud to gather information about the formation being drilled.
Perforation [pur-foh-rey-shun]: Creating small holes or tunnels in the casing and cement of a well to allow for oil or gas flow.
Reservoir [rez-er-vwar]: An underground rock formation that contains oil or gas.
Reservoir Characterization: The process of understanding the properties and behavior of a reservoir to optimize production strategies.
Reservoir Simulation: The use of mathematical models to simulate the behavior of oil or gas reservoirs, aiding in decision-making for optimal production strategies.
Reservoir Management: The ongoing monitoring and optimization of a reservoir’s performance to maximize production and recovery.
Stimulation [stim-yuh-ley-shun]: Treatments performed on a well to improve its productivity.
Wellbore [wel-bawr]: The hole drilled by a drilling rig that forms the pathway for oil or gas extraction.
Seismic Survey: A method of mapping subsurface rock formations using seismic waves to identify potential oil and gas reservoirs.
Wildcat Well: An exploratory well drilled in an unproven area to search for oil or gas reserves.
Reserves: Estimated quantities of oil and gas that are expected to be commercially recoverable.
Horizontal Drilling: A technique where wells are drilled horizontally through a reservoir, increasing contact with the producing formation.
Tight Gas: Natural gas trapped in low-permeability reservoirs, requiring specialized techniques for extraction.
Seismic Interpretation: Analyzing seismic data to interpret subsurface geology and identify potential oil and gas reservoirs.
Secondary Recovery: Techniques employed to enhance oil recovery from a reservoir after primary production methods have been exhausted.
Well Stimulation: Treatments performed to increase the productivity of a well, such as hydraulic fracturing or acidizing.
Sand Control: Methods used to prevent sand or other solids from entering the wellbore during production, preserving equipment integrity.
Wellhead: The equipment at the surface of a well that controls the flow of oil or gas and provides a connection point for production equipment.
Wellbore: The hole drilled into the ground to access oil or gas reservoirs and allow for the extraction of hydrocarbons.
Production Sharing Agreement (PSA): A contractual arrangement between a government and an oil company, defining the terms for exploration and production activities.
Well Testing: Evaluating the flow and properties of hydrocarbons from a well to gather data for reservoir characterization and production optimization.
Bit [bit]: A cutting tool attached to the end of a drill string used to penetrate the earth’s surface during drilling operations.
Exploration [ek-spluh-rey-shuhn]: The process of searching for new oil and gas reserves through geological and geophysical surveys.
Blowout Preventer (BOP) [bloh-out pri-vent-er]: A specialized piece of equipment used to seal a wellbore and prevent the uncontrolled release of oil or gas during drilling operations.
Seismic Survey [sahyz-mik sur-vey]: A method of mapping subsurface geological structures by generating and recording seismic waves to locate potential oil and gas reservoirs.
Directional Drilling [dih-rek-shuh-nl dril-ing]: A technique used to drill non-vertical wells, allowing access to reserves that cannot be reached with conventional vertical drilling.
Formation Evaluation [for-mey-shuhn ih-val-yoo-ey-shuhn]: The process of assessing subsurface rock formations to determine their potential for containing oil or gas.
Mud Logging [muhd lawg-ing]: The process of analyzing rock cuttings and drilling mud to evaluate the geological formations encountered during drilling operations.
Wellbore [wel-bawr]: The hole created by drilling operations, which allows access to the subsurface reservoir for oil or gas extraction.
Kick [kik]: An influx of formation fluids, such as oil or gas, into the wellbore during drilling operations that can lead to well control issues if not properly managed.
Pore Pressure [pawr presh-er]: The pressure exerted by fluids within the pore spaces of a rock formation, which must be carefully monitored during drilling to prevent wellbore instability.

Production and Reservoir Engineering

Artificial Lift [ahr-tuh-fish-uhl lift]: A method used to increase the flow of oil or gas from a well by using pumps or other artificial means.
Reservoir [rez-er-vwahr]: An underground formation containing oil or gas that can be extracted economically.
Decline Curve [dih-klahyn kurv]: A graphical representation of the decline in production rate of oil or gas from a well or reservoir over time.
Enhanced Gas Recovery (EGR) [in-hanst gas ri-kuhv-uh-ree]: Techniques used to increase the amount of recoverable natural gas from a reservoir beyond primary recovery methods.
Enhanced Oil Recovery (EOR) [in-hanst oil ri-kuhv-uh-ree]: Techniques used to increase the amount of oil that can be extracted from a reservoir beyond primary recovery methods.
Reservoir Simulation [rez-er-vwahr sim-yuh-ley-shuhn]: The use of computer models to simulate the behavior of oil or gas reservoirs, aiding in reservoir management and production optimization.
Permeability [pur-mee-uh-bil-i-tee]: A measure of the ability of a rock formation to allow fluids, such as oil or gas, to flow through it.
Waterflood [waw-ter-flood]: A secondary recovery technique that involves injecting water into an oil reservoir to displace and push the oil towards producing wells.
Artificial Lift [ahr-tuh-fish-uhl lift]: Methods employed to increase the flow rate of oil or gas from a well, such as using pumps or gas lift systems, particularly as reservoir pressure declines.
Reservoir Management [rez-er-vwahr man-ij-muhnt]: The holistic approach to optimize the production and recovery of hydrocarbons from a reservoir, encompassing strategies for monitoring, maintenance, and well interventions.

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Oil and Gas Industry Terms for Refining and Processing

Alkylation [al-kuh-ley-shuhn]: A process that combines lighter hydrocarbons, such as propylene and butylene, to produce higher-octane gasoline components.
Catalytic Cracking: A refining process that breaks down heavy hydrocarbons into lighter products.
Coking [koh-king]: A thermal cracking process that converts heavy residual oil into lighter products, such as petroleum coke and gas oils.
Cracking [krak-ing]: A process that breaks down complex hydrocarbon molecules into simpler ones to produce fuels like gasoline and diesel.
Cracking Catalyst: A substance used in catalytic cracking processes to facilitate the conversion of heavier hydrocarbons into lighter, more valuable products.
Delayed Coker: A refining unit that converts heavy residual oil into lighter products, such as petroleum coke, through a process called coking.
Desalting [dee-sawl-ting]: The removal of salt and other impurities from crude oil using water or chemical treatments to protect refining equipment and prevent corrosion.
Distillate: Lighter fractions of crude oil obtained through distillation, such as diesel fuel, kerosene, and jet fuel.
Distillation [dis-tuh-ley-shuhn]: A process that separates crude oil into different fractions based on their boiling points to produce various petroleum products.
Distillation [dis-tuh-ley-shuhn]: The process of separating different hydrocarbon compounds based on their boiling points.
Fluid Catalytic Cracking (FCC): A refining process that converts heavy hydrocarbons into gasoline and other high-value products.
Fluidized Catalytic Cracking (FCC): A type of catalytic cracking process that uses a fluidized catalyst bed to convert heavy hydrocarbons into lighter products.
Hydrocracking [hahy-droh-krak-ing]: A refining process that uses hydrogen and a catalyst to break down heavy hydrocarbon molecules into lighter, more valuable products.
Hydrodesulfurization [hahy-droh-di-suhl-fyuh-rey-shuhn]: A refining process that removes sulfur compounds from hydrocarbons to reduce emissions and meet environmental regulations.
Hydroskimming: A simple refining process that involves distillation to separate crude oil into different fractions, typically used in smaller refineries.
Hydrotreater [hahy-droh-treet-er]: A unit in a refinery that uses hydrogen to remove impurities like sulfur, nitrogen, and metals from petroleum feedstocks.
Hydrotreating [hahy-droh-treet-ing]: A refining process that employs hydrogen and catalysts to remove impurities, such as sulfur, nitrogen, and metals, from petroleum feedstocks.
Hydrotreating [hahy-droh-treet-ing]: A refining process that removes impurities such as sulfur and nitrogen from hydrocarbons.
Isobutane [ahy-suh-byoo-teyn]: A light hydrocarbon used as a feedstock for various processes in the refining industry, including alkylation and isomerization.
Isomerization [ahy-suh-muh-rih-zey-shuhn]: A process that rearranges the molecular structure of hydrocarbons to convert them into higher-octane gasoline components.
LPG [el-pee-jee]: Liquefied Petroleum Gas, a mixture of propane and butane used as a fuel or feedstock.
Naphtha [naf-thuh]: A light distillate used as a feedstock for petrochemicals or as a gasoline blending component.
Octane Number: A measure of a fuel’s resistance to knocking; higher octane numbers indicate higher resistance.
Refinery [ri-fahy-ner-ee]: A facility that processes crude oil into various petroleum products.
Reformate [ri-for-meyt]: A high-octane component produced through catalytic reforming, used to boost the octane rating of gasoline.
Reforming [ri-fawr-ming]: A refining process that converts low-octane hydrocarbons into high-octane gasoline.
Sweetening: The process of removing hydrogen sulfide and other sulfur compounds from hydrocarbons to meet environmental regulations and improve product quality.
Treating: The removal of impurities, such as sulfur, nitrogen, and metals, from crude oil or intermediate products during refining.
Vacuum Distillation: A refining process that operates under reduced pressure to separate heavy hydrocarbons.
Vapor Recovery Unit (VRU): A system used to capture and process volatile organic compounds (VOCs) emitted during the storage and transportation of petroleum products.
Visbreaking [viz-brey-king]: A thermal cracking process that reduces the viscosity of heavy oils.

Oil & Gas Industry Terms for Transportation and Storage

Bitumen [bi-too-muhn]: A heavy, highly viscous form of petroleum used in asphalt and other applications.
Crude Oil [krood oyl]: Unrefined petroleum as it comes out of the ground, composed of hydrocarbons and other organic compounds.
Crude Oil Storage Terminal: Facilities dedicated to storing large quantities of crude oil for future use or to stabilize market fluctuations.
Crude Oil Tanker [krood oil tang-ker]: A large ship specifically designed for transporting crude oil from production regions to refineries or export terminals.
Crude Oil Terminal: A facility equipped with storage tanks and loading infrastructure where crude oil is received, stored, and dispatched for further transportation.
Cryogenic Storage: Storage of liquefied natural gas (LNG) or other cryogenic products at extremely low temperatures to maintain them in a liquid state.
Export Pipeline: A dedicated pipeline used to transport crude oil or natural gas from production regions to export terminals or international markets.
Floating Production Storage and Offloading (FPSO) [floht-ing pruh-duk-shuhn stor-ij and aw-floh-ding]: A vessel used in offshore oil production that can store, process, and offload crude oil or gas to tankers for transportation.
Floating Storage and Regasification Unit (FSRU) [floht-ing stawr-ij and ree-gas-uh-fi-kay-shuhn yoo-nit]: A floating vessel used to store liquefied natural gas (LNG) and convert it back into a gaseous state for delivery to shore-based facilities.
Fractionation [frak-shuh-ney-shuhn]: The process of separating crude oil into different components based on their boiling points.
Gas Gathering System: A network of pipelines and associated facilities that collect natural gas from various wells and transport it to processing plants.
Gathering Pipeline: Pipelines that collect oil or gas from multiple wells or production sites and transport them to processing plants or main pipelines.
Hub Terminal: A major storage and distribution facility where multiple pipelines converge, serving as a regional distribution point for oil and gas products.
Hub: A central location where multiple pipelines converge, allowing for the distribution of oil or gas to various destinations.
Intrafield Pipeline: Pipelines that transport oil or gas within a producing field to central processing facilities or storage.
Liquefied Natural Gas (LNG): Natural gas that has been converted to a liquid state for ease of transportation and storage.
Liquefied Petroleum Gas (LPG) [lik-wuh-fahyd puh-roh-lee-uhm gas]: A mixture of propane and butane that is stored under pressure as a liquid and used as fuel or feedstock.
Meter Proving: The process of verifying the accuracy of flow measurement devices used in pipelines and other oil and gas infrastructure.
Metering Station: A facility that measures the flow rate and volume of oil or gas through a pipeline.
Natural Gas Liquids (NGL) [nach-er-uhl gas lik-wids]: Hydrocarbons that are extracted from natural gas and include ethane, propane, butane, and pentane.
Offshore Loading Buoy: A buoyant structure used for transferring oil or gas between an offshore facility and a tanker.
Oil Tanker: A large vessel designed to transport crude oil or refined petroleum products.
Onshore Terminal: A facility where oil or gas is received from production fields for processing and storage.
Pipeline [pahyp-lahyn]: A system of pipes used to transport oil or gas over long distances from production fields to refineries or distribution centers.
Pipeline Pigging: The practice of using devices known as “pigs” to clean, inspect, or maintain pipelines, ensuring their integrity and efficient operation.
Pump Station: Facilities along a pipeline that house pumps to maintain the flow of oil or gas and compensate for pressure losses.
Storage Cavern: An underground cavity, typically in salt formations, used for storing large volumes of crude oil, natural gas, or liquefied petroleum gases.
Storage Tank: A container used to store crude oil or refined petroleum products.
Strategic Petroleum Reserve (SPR) [struh-teej puh-troh-lee-uhm ri-zurv]: Reserves of crude oil maintained by some countries for emergency purposes, such as to mitigate supply disruptions.
Tank Farm [tangk fahrm]: A facility where large storage tanks are used to store crude oil, refined products, or natural gas liquids.
Terminal [tur-muh-nl]: A facility where oil or gas is received, stored, and distributed.
Transshipment [tran-ship-muhnt]: The transfer of oil or gas from one vessel to another, often done at sea.

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Health, Hazard, Safety, and Environment (HSE)

Blowout [bloh-out]: An uncontrolled release of oil or gas from a well due to pressure exceeding the strength of the well’s control mechanisms.
Emissions [ih-mish-uhnz]: Gases or particles released into the atmosphere during oil and gas production, refining, and combustion processes.
Personal Protective Equipment (PPE) [pur-suh-nl pruh-tek-tiv ih-kwip-muhnt]: Safety gear worn by workers, including helmets, goggles, gloves, and protective clothing, to protect against hazards in the oil and gas industry.
Environmental Impact Assessment (EIA) [in-vahy-ruhn-men-tl im-pakt uh-sest-muhnt]: An evaluation of the potential environmental consequences of oil and gas projects, ensuring compliance with regulations.
Safety Data Sheet (SDS) [seyf-tee dey-tuh sheet]: A document that provides detailed information about the hazards and safety precautions related to a particular chemical or product used in the oil and gas industry.
Environmental Compliance [in-vahy-ruhn-men-tl kuhm-plahy-uhns]: The adherence to environmental regulations and standards to minimize the impact of oil and gas operations on the environment.
Hazardous Area Classification [haz-erd-uhs air-ee-uh klas-uh-fi-key-shuhn]: The process of classifying areas in the oil and gas industry based on the presence of flammable or explosive materials.
Environmental Impact Mitigation [in-vahy-ruhn-men-tl im-pakt mahy-ti-gey-shuhn]: The measures taken to minimize or offset the negative environmental effects of oil and gas activities.
Hazardous Area Classification [haz-erd-uhs air-ee-uh klas-uh-fi-key-shuhn]: The process of classifying areas in the oil and gas industry based on the presence of flammable or explosive materials.
Environmental Impact Mitigation [in-vahy-ruhn-men-tl im-pakt mahy-ti-gey-shuhn]: The measures taken to minimize or offset the negative environmental effects of oil and gas activities.
Safety Case [seyf-tee keys]: A comprehensive document that outlines the major hazards, risks, and control measures associated with an offshore oil and gas facility, demonstrating a systematic approach to safety management.
Environmental Impact Monitoring [in-vahy-ruhn-men-tl im-pakt mon-i-ter-ing]: The ongoing assessment and measurement of potential environmental effects resulting from oil and gas activities to ensure compliance with regulations and minimize harm.

Oil & Gas Industry Terms for Downstream Operations

Petrochemicals [peh-troh-kem-i-kuhls]: Chemical compounds derived from oil or natural gas, used as raw materials in the production of plastics, fertilizers, and other products.
Refinery Margins [rih-fuh-ner-ee mahr-jinz]: The difference between the cost of crude oil and the value of refined products, representing the profitability of a refinery.
Liquefied Natural Gas (LNG) [lik-wuh-fahyd nash-uh-ruhl gas]: Natural gas that has been cooled to a liquid state for ease of storage and transportation.
Refining Yield [rih-fuh-ning yeeld]: The percentage of valuable products obtained from the refining of crude oil, such as gasoline, diesel, and jet fuel.
Blending [blend-ing]: The process of combining different petroleum products or additives to achieve desired specifications, such as blending different grades of gasoline.
Marketing and Distribution [mahr-ki-ting and dis-truh-byoo-shuhn]: Activities involved in selling and delivering petroleum products to end consumers, including wholesale and retail operations.
Octane Rating [ok-teyn rey-ting]: A measure of a fuel’s resistance to knocking or detonation in internal combustion engines, indicating its performance and quality.
Petrochemical Refinery [peh-troh-kem-i-kuhl rih-fuh-ner-ee]: A facility that specializes in processing crude oil into various petrochemical feedstocks for the production of plastics, rubber, and other chemical products.
Refinery Configuration [rih-fuh-ner-ee kuh n-fig-yuh-rey-shuhn]: The arrangement and integration of processing units within a refinery, including crude distillation, conversion, and treating units, to optimize product yields and meet market demands.
Product Quality Specifications [prod-uhkt kwol-i-tee spe-suh-fi-kay-shuhn]: The defined standards and requirements that petroleum products must meet regarding characteristics such as octane rating, sulfur content, and distillation range.

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Oil & Gas Industry Terms for Upstream Operations

Enhanced Oil Recovery (EOR) [in-hanst oil ri-kuhv-uh-ree]: Techniques used to increase the amount of oil that can be extracted from a reservoir beyond primary recovery methods.
Production Sharing Agreement (PSA) [pruh-duhk-shuhn shair-ing uh-gree-muhnt]: A contract between a government and an oil company that governs the rights and obligations for oil exploration and production.
Seismic Interpretation [sahyz-mik in-tur-pri-tey-shuhn]: The process of analyzing seismic data to determine the subsurface characteristics of potential oil or gas reservoirs.
Drilling Mud [dril-ing muhd]: A fluid used during drilling operations to lubricate the drill bit, cool the drill string, and remove rock cuttings from the wellbore.
Conventional Reserves [kuhn-ven-shuh-nl ri-zurvz]: Oil or gas reserves that can be recovered using standard drilling and production techniques.
Seismic Imaging [sahyz-mik ih-mij-ing]: The process of creating detailed images of subsurface structures using seismic data to better understand the potential oil and gas reservoirs.
Drilling Rig [dril-ing rig]: A structure or mobile unit used to drill wells, comprising equipment such as the derrick, drill string, and drilling mud system.
Field Development Plan [feeld dih-vel-uhp-muhnt plan]: A comprehensive strategy outlining the development and production plans for an oil or gas field, including well locations, infrastructure, and timelines.
Reservoir Characterization [rez-er-vwahr kar-ik-tuh-ri-zey-shuhn]: The process of acquiring and analyzing data to understand the geological, fluid, and reservoir properties of an oil or gas field for effective development and production.
Well Testing [wel test-ing]: The procedure of evaluating the productivity and characteristics of a well by measuring flow rates, pressures, and fluid properties to assess reservoir performance.

Finance and Economics Terms used in Oil & Gas Industry

Break-even Price [breyk-ee-vuhn prahys]: The minimum price at which the sale of oil or gas covers the costs of production, allowing for a zero-profit scenario.
Brent Crude [brent krood]: A benchmark for oil prices, representing a blend of crude oils from various fields in the North Sea.
Capital Expenditure (CAPEX) [kap-i-tl ik-spen-di-chur]: Funds invested in the acquisition, construction, or enhancement of oil and gas assets, such as wells, pipelines, and refineries.
Cost Recovery [kost ri-kuhv-uh-ree]: The process of recovering exploration and development costs from oil and gas production revenues before sharing profits with the government or other partners.
Crude Oil Benchmark: A reference price used to determine the value of crude oil, such as West Texas Intermediate (WTI).
Downstream [doun-streem]: Referring to activities in the oil and gas industry that occur after production, such as refining and distribution.
Downstream Integration: The involvement of oil and gas companies in refining, petrochemicals, and distribution to capture more value in the supply chain.
Energy Security: The assurance of a reliable and continuous supply of oil and gas to meet a country’s energy needs and support its economic stability.
Energy Trading: The buying and selling of contracts for future delivery of oil, gas, or electricity, often involving speculation and risk management.
Energy Transition: The global shift towards cleaner and renewable energy sources, impacting the oil and gas industry.
Gasoline Crack Spread: The difference between the price of crude oil and the wholesale price of gasoline, indicating refining profitability.
Joint Venture [joint ven-cher]: A business agreement between two or more companies to jointly undertake an oil and gas project, combining resources, expertise, and risks to achieve mutual objectives.
Market Analysis: The assessment of supply, demand, pricing trends, and other market factors to understand and predict the behavior of oil and gas markets.
Market Intelligence: The collection, analysis, and interpretation of data and information about oil and gas markets to make informed business decisions.
National Oil Company (NOC): A state-owned company that controls the exploration, production, and sale of oil and gas within a country.
Net Present Value (NPV) [net prez-uhnt val-yoo]: A financial metric used to assess the profitability of an investment by discounting future cash flows to their present value, considering factors such as time value of money and project costs.
Oil Price Volatility: Fluctuations in the price of oil due to factors such as geopolitical events, supply disruptions, or changes in global demand.
Oilfield Services: Companies that provide specialized equipment, technology, and expertise to support oil and gas exploration, drilling, and production operations.
OPEC [oh-pek]: The Organization of the Petroleum Exporting Countries, a group of oil-producing nations that coordinate production and pricing policies.
Peak Oil: The hypothetical point at which global oil production reaches its maximum level and begins to decline.
Petrochemicals [pe-truh-kem-i-kuhls]: Chemical compounds derived from oil and gas, used in various industries.
Petrodollar: Revenue generated from the export of oil, typically denominated in U.S. dollars.
Price Differentials: Variations in the price of oil or gas based on factors such as location, quality, and transportation costs.
Price Hedging: Financial strategies used by oil and gas companies to manage price volatility by locking in future prices through derivative contracts.
Price Volatility [prahys vol-uh-til-i-tee]: The fluctuation of oil and gas prices in the market, influenced by factors such as supply and demand, geopolitical events, and economic conditions.
Refinery Margins: The difference between the cost of crude oil and the value of refined petroleum products, reflecting the profitability of refining operations.
Royalty [roi-uhl-tee]: A payment made to the owner of mineral rights, such as a government or landowner, based on a percentage of the value or volume of oil or gas produced.
Spot Market: The market where oil and gas are bought and sold for immediate delivery, often involving short-term contracts.
Strategic Reserves: Government-maintained stockpiles of oil and gas used to stabilize supplies during emergencies or times of market volatility.
Supply and Demand Balance: The equilibrium between the quantity of oil or gas supplied by producers and the quantity demanded by consumers, which determines market prices.
Supply Chain Management: The coordination and optimization of activities involved in sourcing, producing, and delivering oil and gas products to customers.
Upstream [uhp-streem]: Referring to activities in the oil and gas industry related to exploration and production.

Oil and gas are essential resources that fuel our modern society and drive economic growth. By familiarizing yourself with these terms, you’ve gained valuable insights into the complex processes involved in exploration, production, refining, and distribution.

Oil and gas are more than just fuels; they are the backbone of our energy infrastructure. As you continue to explore this field, stay curious, keep learning, and embrace the challenges and opportunities that lie ahead. With this understanding of oil and gas industry terms, you’re well-prepared to engage and contribute to the future of the O&G industry and make a positive impact in this crucial sector.

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180+ Oil and Gas Industry Terms – BT School