What is the difference between mboe and mmboe

These are valuable hydrocarbons but are obviously used for different industrial purposes than oil. In your work calculations, care must be taken to follow the standards set by other members of your company or organisation.

The largest component by far is the oil, if the well were a purely gas play, then the MCF figure is more relevant. In the natural gas mix, we find methane, ethane, propane and butane.

There are a number of other less well known gasses that will be extracted at the same time. Examples include hexane, octane, benzene and toluene. Only if the reserves are pure oil, with no other hydrocarbons. We know that a barrel light sweet crude fetches substantially more than the equivalent in LNG. This value will change over time according to individual commodity prices. We know that despite fluctuations, this prices gas at around a third of oil, for the same energy output.

This means that one well reservoir could be valued at triple the reserves of another the same size. For now, the percentages are very important to profitability. One other point to consider, is the market potential for gas in a local area, how far is the compression facility?

How far will the gas need to be shipped to a potential buyer and will this make a sale non-viable? For example LNG is no good for creating plastics for industrial purposes. Globally, we see heavy oil and light oil being exported and imported to refineries that are able to process it.

As previously mentioned, each measure is of little use on its own, and can lead to false assumptions. There are few people who fully understand the bigger picture. Oil and gas are created in the same reservoirs, by the same geological model. BOE is one measure of comparing the total reserves for each company, country or well. As with any type of technical analysis, in any industry, we never focus on a single metric, but look at an overview of all the data that is available to us.

Some wells are notoriously gassy in nature, so industry standard accounting measures can create a false sense of wealth. A current example of this is the shale boom. On a more macro scale, presidents and leaders might get carried away in talking about energy independence. Serial Energy Entrepreneur. Webmaster at drillers. This measurement is just as common but looks at production differently depending on what you need to learn from the information.

However, the acronym GPM is also a measurement for natural gas meaning gallons per Mcf, or gallons of NGLs produced per thousand cubic feet of gas processed. The richer your gas, the more gallons you get. The number for barrels of oil per day can refer to anything from a global amount produced to a single production field so the numbers can vary wildly.

Cubic feet is the measurement of volume used for natural gas. CFM is cubic feet per minute. Simply put for our industry, BTU is a measure of the energy content of a fuel , in this case, natural gas. There is no universal conversion for energy to volume because the energy content varies with the natural gas composition. As an approximation, 1, cubic feet of natural gas yields about 1,, BTU when burned. The price of natural gas is often expressed in currency units per energy content.

Crude oil reserves are measured in barrels BBL and natural gas is measured in cubic feet mcf. Converting these reserves to a barrel of oil equivalent, or BOE, gives a total energy content in a single unit. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads.

Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Many oil companies produce both of these commodities, but the unit of measure for each is different. Oil is measured in barrels and natural gas is measured in cubic feet. To help facilitate like-for-like comparisons, the industry standardized natural gas production into "equivalent barrels" of oil.

One barrel of oil is generally deemed to have the same amount of energy content as 6, cubic feet of natural gas. So this quantity of natural gas is "equivalent" to one barrel of oil. One barrel of oil is standardized to have the same amount of energy content as 6, cubic feet of natural gas.

The gallon barrel was a commonly used standard prior to the 18th century. This sized container was used for shipping everything from fish, molasses, soap, butter, wine, and whale oil. The gallon oil barrel was officially adopted in Crude oil is refined into various end products, including gasoline used in cars.

Refineries use approximately 2. Texans for Natural Gas. Energy Trading. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.

We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Oil Guide to Investing in Oil Markets. Commodities Oil. Key Takeaways Barrel of oil equivalent BOE is a way of standardizing natural gas and other energy resources to a barrel of oil's energy.