How is the quantity of oil and natural gas measured?

Oil is sold by the

42-gallon barrel.

10 feet

10 feet

10 feet

Natural Gas is sold by the MCF

(1000 cubic foot)

42 gallons

Why is the standard barrel of crude oil 42 US gallons?

This measurement originated in the early Pennsylvania oil fields when whiskey barrels were used to transport crude oil in horse-drawn wagons.

Are there standards for calculating costs and profits?

Rounding rules are strictly enforced in the oil and natural gas business.

When figuring gross and net production values, costs are rounded up to the nearest penny and profits are

rounded down.

How do sweet oil and sour oil differ?

a

Sweet oil is high quality, low sulfur crude oil that is used for processing into gasoline.

Sour oil is lower quality oil and harder to refine compare to sweet oil. Sour oil has the odor of

rotten eggs when levels of sulfur are high.

The amount of oil and/or natural gas a well produces

in a day.

What is the gross daily production of a well?

In Dewey County the Newfield Exploration Mid-Continent, Inc. is reporting 191 barrels oil per day and

626,000 cu-ft natural gas per day.

OIL AND GAS ACTIVITY

CompletionsCarter: Dominion Oklahoma Texas Exploration & Production Inc.; A.S. Moore No. 8 SWD Well; NW¼ NW¼ SE¼ of 31-01S-03W;TD 2,452.Comanche: Dominion Oklahoma Texas Exploration & Production Inc.; Mansel No. 1-14 Well; SE¼ SE¼ NW¼ SW¼ of 14-03N-10W;dry; TD 10,400.Dewey: Newfield Exploration Mid-Continent Inc.; Fugua No. 1-15 Well; SW¼ NW¼ SE¼ SE¼ of 15-18N-14W; 191 barrels oil per day, 626,000 cu-ft gas per day; TD 9,520.Major: Dominion Oklahoma Texas Exploration & Production Inc.; Wilma No. 1-2 Well; SW¼ SW¼ NE¼ SW¼ of 02-22N-15W; 239,000 cu-ft gas per day, 13 barrels oil per day; TD 8,002.Texas: Phillips Petroleum Co.; Frank G No. 6 Well C N½ N½ SW¼ of 12-01N-12ECM; 355,500 cu-ft gas per day; 6 barrels oil per day; TD 6,970.