Glossary of Industry Terms
A slanted hole drilled near the wellbore to hold the kelly joint when not in use. The kelly is the octagonal rod that transfers the rotation and downward thrust of drilling to the drill stem. The Kelly is unscrewed from the drill string when a new joint is added and, at these times, it is lowered into the rathole.
Raw Natural Gas
A mixture containing methane plus some or all of the following: ethane, propane, butane, nitrogen, condensates, carbon dioxide, hydrogen, helium hydrogen sulphide, water vapour and minor impurities. Raw natural gas is the gas found naturally in the reservoir prior to processing.
The Location where gas enters a transporter's system from a well, plant or pipeline interconnect.
Hydrocarbon reserves that can be produced with current technology including those that are not economical to produce at present.
Reforumulated Gasoline / Fuel
Fuel whose physical or chemical properties has been changed.
Renewable EnergyNaturally occurring energy sources that are continually replenished. Examples are wind, solar and water.
Forcing natural gas, under pressure, into a crude oil reservoir in an attempt to increase recovery of crude oil. Also achieved using water.
Reserve Life Index ( RLI )
The reserve life index measures the length of time current proved or established reserves would last if current production rates were maintained and no new reserves were added. Essentially, it measures the "ready inventory" of crude oil or natural gas. Also known as reserves-to-production ( R/P ) ratio.
Recoverable portion of resources available for use based on current knowledge, technology and economics.
Reservoir ( Oil and Gas )
An independant, porous and permeable underground rock formation containing a natural accumulation of crude oil or natural gas confined by impermeable rock or water barriers.
A heavy, black, tar-like substance that remains after crude oil has been fully refined to distill out all usable fractions or components.
Right-of-WayA strip of land, the use of which is acquired for the construction and operation of a pipeline. It may be owned outright or an easement purchased for a specific purpose.
A string of steel rods connected to a pumpjack which provide the up-and-down motion for a bottom-hole pump to lift oil to the surface.
The cutting tool attached to the lower end of the drill string of a rotary drilling rig. As the drill string rotates, the bit chews through the formation.
A method for drilling wells using a cutting bit attached to a revolving drill string.
A downhole pump used to bring oil to the surface which operates by a rotary action rather than an up-and-down motion.
A modern drilling unit that drills a well with a bit attached to a rotating column of steel pipe.
A heavy, circular casting mounted on a steel platform just above the rig floor which rotates the drill string and thus turns the bit.
RoyaltyThe share of production or revenues that goes to the government or freehold mineral rights holders. The royalty is usually based on a percentage of the total production and the rate may vary according to the selling price.