Glossary
Production accounting terms, defined.
The vocabulary of hydrocarbon allocation, written for people who need to agree on what a number means.
- Allocation network
- The modelled relationships between wells, meters, tanks, equipment and facilities that determine how measured volumes are allocated.
- BOE
- Barrel of oil equivalent. A unit that expresses gas and NGL volumes in terms of the energy content of a barrel of crude oil.
- Date-effective configuration
- Configuration whose validity is bounded by effective dates, so network changes apply going forward without altering previously calculated periods.
- Disposition
- The destination or use of a produced volume: sales, fuel, flare, vent, lease use, gas lift, transfer or inventory change.
- Gross volume
- The total allocated volume attributable to a well or completion before ownership interests are applied.
- Imbalance
- The difference between a party's entitled share of production and the volume they actually took or were allocated.
- Lease use
- Gas or oil consumed on the lease for operations, such as fuel for compressors or heaters, rather than sold.
- Load oil
- Oil injected into a well during operations such as fracturing or workover, tracked so recovered load oil is not reported as new production.
- Net revenue interest (NRI)
- An owner's share of production revenue after royalties and other burdens are deducted.
- Net volume
- The share of allocated volume attributable to an owner after applying working interest or net revenue interest.
- NGL components
- Natural gas liquids separated at a plant, including ethane, propane, iso-butane, normal butane and natural gasoline.
- Prior-period adjustment
- A controlled restatement of a closed accounting period, recorded with an audit trail of the change and its reason.
- Production allocation
- Distributing volumes measured at a shared point back to the wells and completions that produced them, using defined rules and measurement inputs.
- Proration
- Allocating a measured total to contributors in proportion to an estimate of each one's share, such as theoretical production or a well-test rate.
- Residue gas
- Gas remaining after NGLs have been extracted at a processing plant, typically sold as pipeline-quality gas.
- Tank inventory accounting
- Reconciling beginning inventory, production, runs, sales, draws and ending inventory for storage tanks.
- Theoretical calculation meter
- A calculated, non-physical meter that derives a volume at a point in the network where no physical measurement exists.
- Theoretical production
- An estimated production volume for a well or completion, typically derived from well tests, rates and on-time, used as the basis for proration.
- Well test
- A periodic measurement of an individual well's oil, gas and water rates, often through a test separator, used to apportion commingled production.
- Working interest (WI)
- An ownership share in a lease that bears a proportional share of costs and receives a share of production.
Next step
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Walk us through your wells, facilities and month-end process. We will show you how Pro-Hub models it.