Glossary of Industry Terms
An agreement that results in natural gas being “transported” in the direction from which it came through the flow of a transportation system. This is usually achieved by redelivering the gas to a point upstream from the point of receipt.
A service that provides an alternate supply of natural gas in the event that a consumer's gas is not delivered.
The common unit of measure for petroleum. One barrel contains approximately 159 litres.
A specific crude oil, usually a blended crude with specific properties such as API gravity, sulphur content, etc., used as the reference for pricing other crude oils. Typical benchmark crudes are West Texas Intermediate ( WTI ), Brent ( North Sea ), Arab Light and Edmonton Par. As the price of the benchmark crude fluctuates, depending upon their properties, other crude oils from that area move up and down relative to the benchmark and the supply and demand. This also known as: marker crude.
Benzene is a flammable, colourless to light yellow volatile aromatic hydrocarbon. A by-product of coke-making and other industrial processes, it is considered to be a carcinogenic ( cancer-causing ) substance.
Refers to the variety of ecosystems and animal, bird, fish and plant species.
A theory of petroleum formation in which the petroleum is thought to have originated from plant and animal matter that has undergone transformation by heat and pressure resulting from deep burial.
Solid or semi-solid petroleum that cannot be pumped without being heated or diluted. Bitumen generally has an API gravity of less than 10°.
A plume of uncontrolled gas, oil or other fluids from a well.
Blowout Preventer ( BOP)
Equipment that is installed on the wellhead to control pressures and fluids and to prevent an uncontrolled fluid flow from the reservoir during drilling, completion and remedial workover operations to restore diminished production.
An amount bid at land auctions for Crown mineral rights. Bonus payments are in addition to rental fees.
Several blowout preventers used in combination, one-above-the other, on a wellhead.
British Thermal Unit ( BTU )
The quantity of heat required to raise the temperature of one pound of water by one degree Fahrenheit at or near 60°. It is the Fahrenheit quivalent of 1,055.056 Joules.
An individual or independent corporation engaged in bringing together sellers and buyers of natural gas, assisting in negotiations, arranging transportation and terms of delivery. Brokers usually do not buy or sell for themselves but act as an agent for client buyers and/or sellers.
A service provided by a pipeline or a local distribution company which includes the natural gas and all of the necessary services required to assure a consistent supply ( backstopping, load balancing and storage ).
The final point of consumption of a fuel, such as natural gas or residual fuel oil.
The price paid by the final consumer for the natural gas (or other fuels) consumed. For natural gas, this includes the price of the gas plus the cost of processing, gathering, transmitting and distributing it.