Abandon

To stop work on a well that is non-productive. To plug off the well with cement plugs and salvage all recoverable equipment.

Abandoned-Dry

A well that does not produce oil or gas in commercial quantities.

Acid Rain

Oxides of sulfur and nitrogen, often released as byproduct of coal combustion, combine with hydrogen ions from atmospheric moisture and oxidize during long range, high altitude movement, forming acidic (low pH) compounds which fall in rain or snow.

Active Solar

A system in which mechanical or electrical devices are used to transform solar energy into heat for space heating or other useful products. Contrasts with passive solar.

Advanced Gas-cooled Reactor (AGR)

A nuclear power reactor, developed mainly in the U.K. and France, using enriched uranium as fuel, carbon dioxide as coolant, and graphite as moderator.

Alberta oil sand(s) deposits

The four deposits, Athabasca, Peace River, Cold Lake and Wabasca, have total resource in place estimated at more than 1.7 trillion to 2.5 trillion barrels. The Athabasca Oil Sands deposit, Alberta's largest and most accessible source of bitumen, contains more than one trillion barrels of bitumen over an area encompassing more than 30,000 square kilometres.

Alkylation

A process used extensively by the petroleum refining industry to produce very high-octane blending components for motor gasoline production by combining light olefins (primarily mixtures of propylene and butylenes) with isobutane.

Allocation Controls

Government policy which specifies quantities of goods or services that potential customers may purchase. Occasionally used to regulate energy commodities during times of emergency.

Allowed Return on Common Equity

Return on common equity that regulators permit utilities and pipeline companies to earn. A high allowed return on equity will permit a regulated company to earn a higher income by charging more for its products or services.

Alpha Particle

A heavy particle produced by the radio-active decay process and consisting of two protons and two neutrons, thus carrying an elementary charge of +2. It is identical to the nucleus of a helium atom.

Ammonium sulphate slurry

A mix of sulphur dioxide and other emissions that can be used to manufacture marketable ammonium sulphate fertilizer.

Aniline Point

The lowest temperature at which equal volumes of freshly distilled aniline and a material being tested are completely miscible.

Annulus

Space between the drill string and the well wall; casing strings; the casing and the production tubing.

Anthracite

A variety of coal with a high heat content (25-33 GJ/tonne). ASTM coal classification by rank: dry fixed carbon-at least 92% but less than 98%, dry volatile matter - 8% or less but more than 2% on a mineral free basis. Known as "hard coal."

API Gravity

gravity of crude oil or other liquid hydro-carbon, as measured by a system developed by the American Petroleum Institute. API gravity bears an inverse relationship to true specific gravity, but is more familiar than the decimal fractions which result when petroleum is described according to its specific gravity.

Appraisal Well

A well drilled to determine the physical extent, reserves and likely production rate of a field.

Arab Oil Embargo of 1973-74

During the Arab-Israeli War in October 1973, Arab oil-producing nations agreed to cut off oil shipments to the United States and the Netherlands because they supported Israel. Arab producers simultaneously reduced output. In practice, the shortfall was spread among all oil-importing nations. World prices moved sharply higher.

Aromatics

So-called because of their generally pleasant odour, aromatics consist of a basic hydrocarbon group comprising most organic chemicals thus far synthesized. The most common aromatics are benzene, toluene and xylene. The aromatics as a group form one of the three major classifications of hydrocarbons derived from crude oil: the other two are paraffins and naphthenes.

Ash

The incombustible solid matter in fuel. Ash content is one common measure of the quality of coal.

Asphalt

A dark brown or black, semi-solid or solid material, of which the main constituents are petroleum bitumens. Also called pitch, asphalt is produced from the residuum of petroleum refining.

Associated Gas

Natural gas which overlies and is in contact with crude oil in the reservoir, except where the volume of oil is small and where production of such gas does not significantly affect recovery of the crude oil.

Atmospheric Distillation

The first process in a petroleum refinery, in which crude oil is separated into fractions according to boiling point. The crude is boiled at atmospheric pressure, and the vapour rises through a distillation column. Its components (or fractions) are drawn off as they condense in the tower. Also called crude oil distillation.

Atomic Energy

All energy, of whatever type, derived from or created by the transmutation of atoms. Also called nuclear energy.

Backfitting

Modifying equipment to make changes or add features that have been included in later models, often done for energy conservation reasons. Also called retrofitting.

Background Radiation

The natural ionizing radiation of man's environment, including cosmic rays from outer space, naturally radioactive elements in the ground, and naturally radioactive elements in the human body.

Balance of Payments

A tabulation of a nation's transactions with the rest of the world, showing the extent to which domestic goods, services and assets have been transferred to foreign countries and vice versa.

Balance of Trade

The difference between receipts from foreign sources for a nation's goods and services and payments to foreign sources for imported goods and services.

Banking of Energy

The storage of energy by one electrical utility in the form of water in the reserves of another.

Barrel

The standard measurement in the oil industry. A barrel of oil equals 42 U.S. gallons or 0.158987 m3. The measurement originates from the wooden barrels used to transport oil in the early days of oil production.

Base Load

The minimum continuous electricity load over a given period of time.

Base Load Capacity

Electricity generating equipment that operates to meet the demand that continues throughout the year.

Basic Oxygen Furnace

A process used in steel making. In this process molten raw iron, with added lime, is subjected to jets of pure oxygen. The oxygen burns out the carbon to produce steel.

Battery

Equipment used to process or store crude oil from one or more wells.

Benchmark Price

A benchmark is a standard by which things are measured. A frequently used benchmark price for oil is the price set by the Organization of Petroleum Exporting Countries (OPEC) for Arabian Light crude, a 34o API gravity oil produced in Saudi Arabia. The other OPEC nations set their official prices in accordance with agreed differentials from the benchmark price.

Benzene

One of the aromatic hydrocarbons, produced from crude oil via fractional distillation and cataytic reforming, or from toluene via dealkylation. Large amounts of benzene are used in motor fuels without separation from the hydrocarbon mixture. When separated, it is used in the manufacture of several chemicals, including syrene, phenol and cyclohexane.

Beta Particle

A light particle produced by radioactive decay. It can be either positively charged (positron) or negatively charged (negatron), although the latter is more often found. A negative beta particle is identical to an electron.

Beyond Economic Reach Reserves

Those establised reserves that, because of size, geographic location or composition, are not considered economically feasible for connection to a pipeline at the present time.

Biomass

Any kind of organic substance, such as wood, dry plants or organic wastes, that can be turned into fuel.

Bit

The cutting or boring element used in drilling oil and gas wells.

Bitumen

The molasses-like substance that comprises up to 18% of oil sand.

Bitumen

Hydrocarbon material of natural or pyrogenous origin, which may be gaseous, liquid, semi-solid or solid and is completely soluble in carbon disulfide. Bitumens are found in asphalt and mineral waxes. Generealy used in industry to mean heavy oil. The term is also used to refer to the components of coal that are soluble in organic solvents.

Bitumen cracking

A process that breaks large,complex hydrocarbon molecules into smaller, simpler compounds by means of heat.

Bituminous Coal

High-quality coal with a high percentage of pure carbon, low ash and low moisture content, and a heat content of approximately 26-70 GJ/tonne. Also called "soft coal". ASTM Coal classification by rank on a mineral matter free basis and with bed moisture only: low volatile Dry fixed carbon - at least 78% but less than 86%, dry volatile matter - 22% or less but more than 14%. medium volatile Dry fixed carbon - at least 69% but less than 78%, dry volatile matter - 31% or less but more than 22%. high volatile (A) Dry fixed carbon - less than 69%, dry volatile matter - more than 31%, moist Btu - 33 GJ/tonne or more. high volatile (B) Moist Btu - at least 30 GJ/tonne but less than 33 GJ/tonne.

Blowdown

The production of gas, either from the gas cap of an oil reservoir (normally after depletion of the oil), or from a cycled gas pool upon cessation of the cycling operation.

Blow-Out

Uncontrolled flow of gas, oil or other well fluids from a well during drilling due to formation pressure exceeding the pressure exerted by the column of drilling mud.

Blow-Out Preventers (BOPS)

High pressure wellhead valves, designed to shut off the uncontrolled flow of hydrocarbons.

Boiling Water Reactor (BWR)

A nuclear power reactor cooled and moderated by light water and fuelled by enriched uranium. The water is allowed to boil in the core to generate steam, which passes directly to the turbine.

Borehole

The hole as drilled by the drill bit.

Break up

The early spring of the year, generally during April and May, when the frost comes out of the ground causing softening and heaving of the roadbeds or muskeg.

Breakout

The act of unscrewing one section of pipe from another section.

Breeder Reactor

Usually a reactor that creates more fissionable fuel than it consumes. In some usages, a reactor that produces the same kind of fissionable fuel that it consumes, regardless of the amount. The additional fissionable material is created when neutrons are absorbed in fertile materials. The process in both usages is known as breeding. 

British Thermal Unit (Btu)

The mean British thermal unit is 1/180 of the heat required to raise the temperature of 1 lb of water from 32oF to 212oF at a constant atmospheric pressure. It is approximately equal to the quantity of heat required to raise the temperature of 1 lb of water by 1oF. A Btu is equivalent to 252 calories; 3,413 Btu is equivalent to 1 kilowatt-hour.

Bunker C Oil

Residual fuel oil of high viscosity, commonly used in marine and stationary power plants. Also referred to as Number 6 fuel oil.

Butane

A colourless, odourless hydrocarbon gas, liquefied at relatively low pressure and therefore easily stored in cylinder for use as a fuel. Butane (C4H10) is the heaviest of the three natural gas liquids, and is a by-product of natural gas processing plants and petroleum refineries. There are two isomers of butane: normal butane and isobutane.

Calandria

A cylindrical reactor vessel that contains the heavy water moderator in a CANDU reactor. Hundreds of tubes extend from one end of the calandria to the other, containing the uranium fuel and the pressurized high-temperature coolant. The reactor core consists of all the components within the calandria.

CANDU

The Canadian nuclear reactor system, moderated by heavy water (deuterium) and fuelled by natural uranium. The name is derived from CANada, Deuterium and Uranium.

Cap Gas

Natural gas trapped in the upper part of a reservoir and remaining separate from any crude oil, salt water or other liquids in the well.

Capability

The maximum electrical energy a system can supply under specified conditions in a given time interval. Energy capability is the product of capacity and time, and is expressed in kilowatt-hours, or some multiple thereof.

Capacity Factor

The ratio of the average load on a machine or equipment for the period of time considered to be the capacity rating of that machine or equipment.

Capacity, Electrical

The load for which a generating unit, generating station, or other electrical apparatus is rated, as stated usually by the manufacturer's nameplate rating. Sometimes used synonymously with capability. Types of capacity: dependable the load-carrying ability for the period specified when related to the characteristics of the load to be supplied. The dependable capacity of a station is determined by such factors as capability, operating power factor, and the portion of a given load which the station is to supply. Peaking Generating units or stations which are available to assist in meeting that portion of peak load which is above base load. Purchase.  The amount of firm power available for purchase from a source outside the system to supply energy or reserve capacity. Reserve Capacity maintained within a system to meet unusual demand or to operate when normal units are undergoing maintenance. Reserve capacity is classified according to status: cold - Thermal generating units available for service but not maintained at operating temperature. Hot - Thermal generating units available, up to temperature and ready for service, but not actually in operation. Spinning - Generating units in operation and ready to take load.

Capital

Short and long-term debt, including capital lease obligations, plus total shareholders' equity.

Capital Ratio

Applies to banks and trust companies. Year-end assets divided by year-end total equity (capital plus reserves). A low capital ratio is good. It indicates that a higher proportion of the company's assets are financed by shareholders' equity and reserves (as opposed to debt or deposits), which would make the company stronger in an economic downturn.

Capital Spending

Amount spent on acquisition of fixed assets (equipment and machinery) and subsidiaries during the year, less government grants received. Shows the extent to which a company is replacing its fixed assets. By doing so, a company helps to ensure that it will have sufficient productive capacity in the future.

Capped Well

A well capable of production but lacking wellhead installations and a pipeline connection.

Capping

Closing in a well to prevent the escape of gas.

Capture Rate

The proportion of new customers selecting a particular fuel to meet their energy requirements.

Carbon dioxide (CO2)

A non-toxic gas produced from decaying materials, respiration of plant and animal life, and combustion of organic matter, including fossil fuels; carbon dioxide is the most common greenhouse gas produced by human activities.

Carbon Dioxide (CO2) Flooding

A tertiary crude oil recovery process in which carbon dioxide is injected in the reservoir under conditions which result in the mixing of the injected fluid and the reservoir fluid, making the fluid more viscous and pumpable.

Carbon Monoxide Emissions

Colourless, odourless, toxic gas released into the air when carbon molecules are burned incompletely. All forms of fossil fuel combustion emit carbon oxides.

Cash Flow

Income before extraordinary items plus non-cash revenues (such as equity income). Cash flow shows how much money is available for such things as the purchase of fixed assets, retirement of debt and payment of dividends.

Casing String

Steel pipe, threaded together and cemented into a well as drilling progresses to prevent the wall of the hole caving in during drilling and to provide a means of extracting oil/gas if the well is productive.

Catalytic Cracking

A petroleum refining process for breaking down heavy molecules in reduced crudes or other feedstocks. The feedstock is treated in a large vessel at high temperature and pressure in the presence of a catalyst. "Cat" cracking is a development of the older method of thermal cracking, which employs only heat and pressure. Catalytic cracking is generally preferred because it produces less gas and other highly volatile by-products. It produces a motor fuel of higher octane (by up to 15 MON) than the thermal process, and is more efficient in the production of iso-paraffins and aromatics, both of which have desirable anti-knock properties.

Catalytic Reforming

The use of controlled heat and pressure with catalysts, to cause cracking and isomerization of the hydrocarbon molecules in low octane petroleum fractions. The hydrocarbons formed are lower in molecule weight, somewhat more branched and somewhat unsaturated, and so have higher octane numbers. Other types of reforming exist, such as hydroforming.

Cetane Number

A numerical index designed to reflect the ignition quality of diesel fuels. The cetane number reflects the percentage of cetane in cetane/x-methyl naphthalene blend equal in ignition quality to a specific sample of tested diesel fuel.

Chemical Flooding

An enhanced recovery process in which water, with added chemicals, is injected into an oil reservoir to increase recovery.

Chemi-thermo-mechanical Pulping

Same as Thermo-mechanical pulping but with chemicals being added to the chips to further refine the pulp by removing the lignin.

Christmas Tree

The assembly of fittings and valves on the top of the casing which control the production rate of oil.

CIF

Literally, "cost, insurance, freight," this term refers to a sale in which the buyer agrees to pay a unit price that includes the free-on-board value of the goods at the port of origin, plus all costs for insurance and transportation. This type of transaction differs from a "delivered" agreement in that it generally does not include duty, and the buyer accepts the quantity and quality at the loading port (as certified by the Bill of Lading and Quality Analysis Report), rather than pay according to quantity/quality as determined at the loading port. Risk and title are transferred from the seller to the buyer at the loading port, although the seller is obliged to provide insurance (usually FPA type) in a transferable policy at the time of loading. It is similar to an fob transaction, except that the seller, as a service for which he is compensated, arranges for transportation and insurance.

 

 

City Gate Price

The unit price charged by a transmission company for natural gas transported via pipeline to a distribution company in a particular city or area.

Clean Cargo

A product that leaves little residue in the holds of a tanker. Kerosene, gasoline, jet fuel and middle distillates are clean cargoes; heavy oil is not.

Cloud Point

The temperature at which wax begins to crystallize in a given sample of middle distillate, giving it a cloudy appearance. The cloud point is higher than the pour point, but wax will clog fuel filters at temperatures below the cloud point, so the latter is an important specification for diesel fuel, especially during winter.

Coal Benefication

A method of improving the quality of coal prior to combustion, for example, by washing it.

Coal Gasification

The chemical conversion of coal to synthetic gaseous fuels.

Coal Liquefaction

The chemical conversion of coal to synthetic liquid fuels. The conversion may be either direct or indirect: direct A process by which liquid fuels are produced from the interaction of coal and hydrogen at high temperature and pressure. indirect A process in which coal is first converted to synthetic gas, then catalyzed to produce hydrocarbons or methanol. Additional processing can convert methanol to gasoline.

Coal Slurry Pipeline

A pipeline used to transport coal over long distances after mixing the crushed coal with water or some other fluid.

Coal Washing

The process of cleaning coal with water and certain additives before burning it, to remove some of the impurities. Most impurities tend to be heavier than coal and sink to the bottom of the water mixture, so the clean coal can be skimmed off.

Coalbed Methane (CBM)

Natural gas trapped in coal seams.

Cogeneration

An energy conversion system producing both electricity and process steam or steam for heating with a resultant overall improvement in conversion efficiency. It usually involves increasing the temperature and/or pressure of steam required for process use, extracting part of the heat for electricity production and discharging the remainder at appropriate conditions for process requirements.

Cokers

Vessels in which bitumen is cracked into its fractions and from which coke is withdrawn to start the process of converting bitumen to upgraded crude oil.

Coking

In petroleum refining, a relatively severe thermal cracking process designed to completely convert residual oils into gases, naphtha, gas-oil and coke. The gas-oil fraction is usually the major product obtained from coking, and is used primarily as catalytic cracker feedstock. The coke obtained from the process is usually consumed as fuel, although there are a number of specialized products made from coke, such as electrode raw material, chemicals and metallurgical coke. These latter products require further processing of the basic petroleum coke obtained from this process. There are several different coking processes employed commercially, including delayed coking, fluid coking and Fexicoking.

Coking Coal

Coal which meets specific processibility criteria and which has a sufficiently low percentage of contaminants for the production of metallurgical coke, essential to the manufacture of steal.

Collector, Solar

A solar collector or absorber is used to gather solar radiation. In the process, the radiation undergoes a change in its energy spectrum and is converted to heat.

Commercial Field

An oil and/or gas field judged to be capable of producing enough net income to make it worth developing.

Commercial In-Service Date

The date at which a new unit has completed its testing and is turned over to operating staff for normal system operation.

Common Carrier

A company or individual licensed by government to operate bulk transportation services for hire. Some pipeline companies are common carriers, others carry only products that they have previously purchased and intend to resell.

Completed Well

A well made ready to produce oil or natural gas. Completion involves cleaning out the well, running steel casing and tubing into the hole, adding peermanent surface control eqipment and perforating the casing so oil or gas can flow into the well and be brought to the surface.

Completion

The installation of permanent wellhead equipment for the production of oil and gas.

Condensate

Hydrocarbons which are in the gaseous state under reservoir conditions and which become liquid when temperature or pressure is reduced. A mixture of pentanes and heavier hydrocarbons.

Consumer Tankwagon Price

The delivered price of petroleum products sold to the end-user.

Containment

The structures, within and including the reactor building, designed to prevent any material that may escape from a nuclear reactor from reaching the outside environment. The reactor containment usually employs steel and thick concrete.

Continuous Casting

A process that directly casts molten steel in a primary mill into smaller and thinner sections without the need for reheating steel ingots.

Contract