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Learn
How to Talk Like an Oilman
Over
400 Oil and Gas and related investment terms defined
D
- G
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- D -
Deductions
- Tax items which may be subtracted from gross income to arrive
at taxable income in Federal income tax computations.
Deed
- A written document by which the title to a property is transferred
from one party (the grantor) to another (the grantee).
Deepwater
port - An offshore marine terminal designed to accommodate large
vessels such as VLCCs and tankers, connected to the shore by submerged
pipelines.
Delay
rental - Cash payments to the mineral rights owner (lessor)
by the working interest owner (lessee), for the privilege of postponing
the commencement of drilling operations on the leased property.
Deliverability
- A well's tested ability to produce.
Depletion,
restoration of - In federal income taxation, the adding back
to income of depletion allowance taken on minerals not produced.
Development
- well A well drilled in an already discovered oil or gas field.
Diesel
oil - A petroleum fraction composed primarily of aliphatic (linear
of unbranched) hydrocarbons. Diesel oil is slightly heavier than
kerosene.
Differential-pressure
sticking - A condition in which a section of drillpipe becomes
stuck in deposits on the wall of the borehole.
Directional
drilling - Drilling at an angle, instead of on the perpendicular,
by using a whipstock to bend the pipe until it is going in the desired
direction. Directional drilling is used to develop offshore leases,
where it is very costly and sometimes impossible to prepare separate
sites for every well; to reach oil beneath a building or some other
location which cannot be drilled directly; or to control damage
or as a last resort when a well has cratered. It is much more expensive
than conventional drilling procedures.
Distillate
- Liquid hydrocarbons, usually colorless and of high API gravity,
recovered from wet gas by a separator that condenses the liquid
out of the gas. The present term is natural gas.
Distillate
fuel oil - A term subject to a variety of definitions. Sometimes
the definition is based on the method of production, but other definitions
are based on boiling range, viscosity, or use.
Distributor
- A wholesaler of gasoline and other petroleum products; also know
as a jobber. Distributors of natural gas are almost always regulated
utility companies.
Division
Order - A contract for the sale of oil or gas, by the holder
of a revenue interest in a well or property, to the purchaser (often
a pipeline transmission company).
Domestic
production - Oil and gas produced in the United States as opposed
to imported product.
Downhole
- Refers to equipment or operations that take place down inside
a borehole.
Downstream
- All operations taking place after crude oil is produced, such
as transportation, refining, and marketing.
Drill
bit - The part of the drilling tool that cuts through rock strata.
Drill
string - Also called drill pipe or drill stem. Thirty-foot lengths
of steel tubing screwed together to form a pipe connecting the drill
bit to the drilling rig. The sting is rotated to drill the hole
and also serves as a conduit for drilling mud.
Drilling
- The act of boring a hole through which oil or gas may be produced
if encountered in commercial quantities.
Drilling
break - A sudden increase in the rate of drilling.
Drilling
fund - The generic term employed to describe a variety of organizations
established to attract venture capital to oil and gas exploration
and development. Typically the fund is established as a joint venture
or limited partnership.
Drilling
mud - A mixture of clay, water, chemical additives, and weighting
materials that flushes rock cuttings from a well, lubricates and
cools the drill bit, maintains the required pressure at the bottom
of the well, prevents the wall of the borehole from crumbing or
collapsing, and prevents other fluids from entering the well bore.
Drilling
platform - An offshore structure with legs anchored to the sea
bottom that supports the drilling of up to 35 wells from one location.
Drilling
rig - The surface equipment used to drill for oil or gas, consisting
chiefly of a derrick, a winch for lifting and lowering drill pipe,
a rotary table to turn the drill pipe, and engines to drive the
winch and rotary table.
Drillstem
test - A test through the drill pipe prior to completion to
determine if oil or gas is present in a formation.
Dry
hole - A well that either produces no oil or gas or yields too
little to make it economic to produce.
Dry
natural gas - Natural gas containing few or no natural gas liquids
(liquid petroleum mixed with gas).
Dual
completion - Completing a well that draws from two or more separate
producing formations at different depths. This is done by inserting
multiple strings of tubing into the well casing and inserting packers
to seal off all formations except the one to be produced by a particular
string.
Due
Diligence - In an offering of securities, certain parties who
are responsible for the accuracy of the offering document, have
an obligation to perform a "due diligence" examination
of the issuer; issuer's counsel, underwriter of the security, brokerage
firm handling the sale of the security. Due diligence refers to
the degree of prudence that might properly be expected from a reasonable
man, on the basis of the significant facts which relate to a specific
case.
- E -
Economic
interest - An interest in oil and gas in the ground. It entitles
the owner to a deduction from gross income derived from production
of that oil and gas as specified in Federal income tax regulations.
Electrical
well logging - A method of oil exploration that originated with
Conrad Schlumberger, who first tested it in 1927 on a 1,500-meter
well in France. As used today, the process is very simple. Current
passes into the ground, through the resistive medium and into the
sonde. The resulting charts show the varying resistance, the conductance,
and the self-potential of the strata surrounding the well at every
level, and geophysicists use them to assay whether petroleum is
present in a formation.
Enhanced
oil recovery - Injection of water, steam, gases or chemicals
into underground reservoirs to cause oil to flow toward producing
wells, permitting more recovery than would have been possible from
natural pressure or pumping alone.
Ethanol
- The two-carbon-atom alcohol present in the greatest proportion
upon fermentation of grain and other renewable resources such as
potatoes, sugar, or timber. Also called grain alcohol.
Expenses
(Tax Usage) - Expenditures for business items that have no future
life (such as rent, utilities, or wages) and are incurred in conducting
normal business activities.
Exploration
- The search for oil and gas. Exploration operations include: aerial
surveys, geophysical surveys, geological studies, core testing and
the drilling of test wells.
Exploratory
well - A well drilled to an unexplored depth or in unproven
territory, either in search of a new reservoir or to extend the
known limits of a field that is already partly developed.
External
casing packer - A device used on the outside of the well casing
to seal off formations or protect certain zones. The packer is run
on the casing and expanded against the wall of the borehole at the
proper depth by hydraulic pressure or fluid pressure from the well.
Extraction
plant - A plant for the extraction of the liquid constituents
in casinghead gas or wet gas.
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