| Key Terms |
Definition |
| API Gravity |
An arbitrary scale expressing the gravity or density of liquid petroleum products.
The measuring scale is calibrated in terms of degrees API; it is calculated as follows:
Degrees API = (141.5 / (sp. gr. 60ºF / 60ºF)) - 131.5
The higher the API gravity, the lighter the compound. Light crudes generally exceed 38 degrees API
and heavy crudes are commonly labeled as all crudes with an API gravity of 22 degrees or below.
Intermediate crudes fall in the range of 22 degrees to 38 degrees API gravity.
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| Barrel |
A unit of volume equal to 42 U.S. gallons.
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| Crude Oil |
A mixture of hydrocarbons that exists in liquid phase in natural underground
reservoirs and remains liquid at atmospheric pressure after passing through
surface separating facilities. Depending upon the characteristics of the crude
stream, it may also include:
Small amounts of hydrocarbons that exist in gaseous phase in natural
underground reservoirs but are liquid at atmospheric pressure after being
recovered from oil well (casinghead) gas in lease separators and are subsequently
commingled with the crude stream without being separately measured. Lease
condensate recovered as a liquid from natural gas wells in lease or field
separation facilities and later mixed into the crude stream is also included;
Small amounts of nonhydrocarbons produced with the oil, such as sulfur and
various metals;
Drip gases, and liquid hydrocarbons produced from tar sands, oil sands,
gilsonite, and oil shale.
Liquids produced at natural gas processing plants are excluded. Crude oil is refined to produce
a wide array of petroleum products, including heating oils; gasoline, diesel and jet fuels;
lubricants; asphalt; ethane, propane, and butane; and many other products used for their
energy or chemical content.
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| F.O.B. (Free on Board) |
Pertains to a transaction whereby the seller makes the product available within an agreed
on period at a given port at a given price; it is the responsibility of the buyer to arrange
for the transportation and insurance.
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| OPEC (Organization of the Petroleum Exporting Countries) |
An intergovernmental organization whose stated objective is to "coordinate and unify the petroleum policies of member countries." It was created at the Baghdad Conference on September 10–14, 1960. Current members (with years of membership) include Algeria (1969–present), Angola (2007–present), Congo (Brazzaville) (2018-present), Ecuador (1973–1992 and 2007–present), Equatorial Guinea ( May 2017-present), Gabon( 1975-1994 and July 2016-present), Indonesia (1962–2008 and January 2016-present), Iran (1960–present), Iraq (1960–present), Kuwait (1960–present), Libya (1962–present), Nigeria (1971–present), Qatar (1961–present), Saudi Arabia (1960–present), United Arab Emirates (1967–present), and Venezuela (1960–present).
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Definitions