Glossary

Non-self-propelled marine vessel used as cargo tankers, equipment and supply carriers, crane platforms and support and accommodation bases in offshore drilling, and as submarine pipe-laying vessels.

As the standard unit of measurement of liquids in the petroleum industry, it contains 42 U.S. standard gallons. Abbreviated to “bbl.”

The volume of natural gas that when burned produces the same amount of heat as a barrel of oil (6,000 cubic feet of gas equals one barrel of oil). BOE = gas volumes divided by six and added to crude and natural gas volumes.

Feedstock for lubricant production from the residual part of crude oil.

The ancient rock that lies below sedimentary strata; it does not contain oil or gas.

The firm base rock to which is anchored the geological structure of interest to petroleum geologists.

An aromatic hydrocarbon present to a minor degree in most crude oils. Some important products manufactured from benzene are styrene, phenol, nylon and synthetic detergents.

The technique of combining two or more petroleum liquids to produce a product with specific characteristics.

A geographical area that includes several separate oil and gas license tracts.

A contract with diverse owners of separately leased oil and gas tracts that enables an oil company to drill one or two test wells instead of one well per tract.

Convenience store.

An impervious layer of rock that overlies a reservoir rock, thus preventing hydro- carbons from escaping to the surface.

The minute spaces, cracks or pores in rock through which hydrocarbon fluids move in response to natural forces.

Tightly closing a well so that oil or natural gas cannot escape.

The base of all hydrocarbons; capable of combining with hydrogen in almost numberless hydrocarbon compounds. The carbon content of a hydrocarbon determines, to a degree, the hydrocarbon’s burning characteristics and qualities.

Steel pipe that is cemented into a well to prevent the well bore wall from caving in, to stop drilling fluids from losing circulation and to prevent water and other fluids from invading the well bore.

The holes made in the liner of a finished well to allow oil or natural gas to flow into the production tube.

The lowest point at which casing is set.

The top of the casing set in the well; the part of the casing that protrudes above the surface and to which the control valves and flow pipes are attached.

Gas produced with oil from an oil well as distinguished from gas from a gas well. The casinghead gas is taken off at the top of the well or at the separator.

A well drilled in an unproven area adjacent to a proven well to determine the extent of the reservoir; also referred to as a “stepout” well.

Method of fractionation. Distillation is based on the difference in boiling point of the liquids in the mixture to be separated. Successive vaporisation and condensation of crude oil in a fractioning column will separate out the lighter fractions, leaving a residue.

A term used in exploration and production to describe tools, equipment and instruments used in the well bore. Also, it refers to conditions or techniques applying to the well bore.

All activities associated with the refining, marketing and transportation of petroleum products.

Waste liquid, gas or vapor that results from petroleum and chemical processing.

Emergency Training and Response Action Centers. Two specially designed communications and emergency vehicles operated by the Red Cross and sponsored by Phillips. EmTRAC was developed after the Oklahoma City bombing to provide fast, mobile assistance in emergencies.

Recovery of oil or gas from a reservoir by artificially maintaining or enhancing the reservoir pressure by injecting gas, water or other substances into the reservoir rock.

Basic chemical used in the manufacture of plastics (such as polyethylene), antifreeze and synthetic fibers.

Drilling carried out to determine whether hydrocarbons are present in a particular area or structure.

A license to explore for oil or gas in a particular area issued to a company by the governing state.

A structure used to carry the equipment needed for exploratory drilling.

The phase of operations in which a company searches for oil or gas by carrying out detailed geological and geophysical surveys, followed up where appropriate by exploratory drilling in the most promising places.

Catalytic conversion of heavier and more complex hydrocarbons into lighter products and coke in fluidised bed catalytic reactor with continuous catalyst regeneration. Thus the lighter products yield from crude oil is increased.

Crude oil, natural gas liquids, natural gas or other materials used as raw ingredients for making gasoline, other refined products or chemicals.

A geographical area under which a producing or prospective oil and/or natural gas reservoir lies.

Estimate of the producing capacity of a field during a 24-hour period.

An open flame used to burn off unwanted natural gas.

The steel structure on an offshore rig or at a processing facility from which gas is flared.

Free on board. FOB prices for crude oil, feedstocks and finished products do not include the cost of insurance and freight charges.

Floating production, storage and offloading facility.

A tall tower, fitted with perforated trays, in which fractional distillation of crude oil or its products is carried out.

The process for breaking natural gas liquids into component parts — methane, ethane, propane, butane, pentane and heavier hydrocarbons.

A field containing natural gas but no oil.

An enhanced recovery technique in which natural gas is injected under pressure into a producing reservoir through an injection well to drive oil to the well bore and the surface.

An environmentally superior technology for converting a wide variety of hydrocarbon fuels (coal, heavy oil, petroleum coke, natural gas and wastes) into clean synthetic gas, or “syngas,” which is used to produce electricity, industrial chemicals and gases as well as fuels and fertilizers.

The light fuel used to spark ignition engines in cars, motorcycles, etc. Modern gasolines are blends of petroleum liquids that are produced in several different processes and which generally contain additives. Sold under the Phillips 66 brand at more than 6,500 stations in 26 states.

The piping networks installed in oil or gas fields to transport petroleum to a processing plant or bulk shipping point.

A rise in the average global temperature. There is general agreement in the scientific community that average global temperatures have risen about one degree Fahrenheit during the past century. Phillips supports taking actions now that make good environmental and economic sense in their own right — such as energy conservation and improved efficiency. The company also supports further work to improve our understanding of the impact of human activity on climate.

A scraper that is run through the pipeline to clear out loose objects and clean the wall of the line.

Phillips’ corporate goals are: a total annual return of 15 percent on a 5-year rolling average; quality products, superior services and innovative solutions for our customers; and opportunity, development and recognition for our employees.

High-density polyethylene. Used in the manufacture of plastic items such as plastic pipe, grocery bags, water coolers and milk bottles.

Thick, black substances that remain in refinery stills after all lighter fractions have been processed out of the feedstock.

Crude oil of 20-degree API gravity or less; often very thick and viscous.

A petroleum liquid found in small amounts in condensates; one of the components of natural gasoline.

A key feedstock in the manufacture of many high-density and linear low-density polyethylene resins, which are used to make food and drink containers, trash bags, plastic pipe and other consumer products.

The technique for cutting a hole in geological strata in a horizontal, rather than the normal vertical, direction.

Organic chemical compounds of hydrogen and carbon atoms that form the basis of all petroleum products. They may exist as solids, liquids or gases.

Catalytic cracking of hydrocarbon feedstocks in the presence of hydrogen.

The process of converting any type of organic sulphur compound into hydrogen sulphide and hydrocarbons in order to reduce the sulphur content of petroleum products complying with the required fuel specifications (includes gas oil and kerosene desulphurisation).

A refinery with a configuration which only includes distillation, reforming, some hydrotreating, and occasionally sulphur recovery processes.

Technology for increasing or prolonging the productivity of oil and gas fields. This is a special field of activity and research in the oil and gas industry.

A plastics-forming process in which molten plastic is forced into a mold under pressure and allowed to solidify.

A well used to inject gas or water into the reservoir in order to maintain reservoir pressure in secondary recovery projects or for conservation purposes.

The rearrangement of the molecular structure of hydrocarbons without adding or removing anything from the original material. Isomerisation is used in a refinery to manipulate physical quantities of a substance e.g., light naphtha isomerisation is a refinery process used to increase the octane number of naphtha.

An oil well pumping unit that operates with an up-and-down, or seesawing, motion; also called a pumping jack.

A type of mobile offshore platform with retractable legs that stand on the seabed to help support the drilling platform.

The steel lattice structure that supports an offshore platform.

An offshore platform constructed entirely of steel. Such platforms generally are held in position by long steel piles driven deep into the seabed.

An investment undertaken by a consortium of companies, usually with one member acting as operator.

Phillips’ copolymer resin used to produce clear packaging materials, cups, water bottles, toys and shower doors.

A medium-light distillate from the oil refining process; used for lighting and heating, and for the manufacture of fuel for jet and turbo-prop aircraft engines.

Catalytic processing of kerosene to convert mercaptan sulphur into less – objectionable disulphides, which remain in the treated product.

Phillips’ company-owned retail outlets, featuring up to 4,000 square feet of shopping space and a wide range of food items.

Low-density linear polyethylene. A strong, clear film ideal for packaging.

The legal contract that specifies the terms and conditions of the business relationship between an oil company and the landowner or mineral rights holder on a particular tract.

Production expenses and cost of sales excluding exploration expenses, depreciation, depletion, amortization and dry hole expenses.

An agreement in which a national government gives an oil company the rights to explore for and produce oil and/or gas in a designated area.

A section of continental shelf area in a particular national sector bounded by latitude and longitude lines, generally at one-degree intervals; a license block is usually sub-divided into smaller areas.

A stage in the allocation of offshore licenses in which a state places a number of specified areas in its sector on offer to oil companies at one time.

Unloading cargo from large marine tankers into smaller tankers that can enter shallow-water ports.

Usually a dark brown substance that is the lowest rank of coal.

Sophisticated mathematical models used to simulate and optimise refining processes.

A field that may not produce enough net income to make it worth developing at a given time; should technical or economic conditions change, such a field may become commercial.

The abbreviation for “thousand cubic feet,” the standard measure for natural gas.

Production expenses and cost of sales excluding exploration expenses, depreciation, depletion, amortization and dry hole expenses.

The depth of the well measured along the wellbore. Also called logged or driller’s depth.

Compounds of carbon, hydrogen and sulfur found in sour crude and gas; the lower mercaptans have a strong, repulsive odor and are used, among other things, to odorize natural gas.

New “precision” catalysts that provide extended manufacturing control over the molecular structure and properties of polyethylene. When used to manufacture linear low-density polyethylene (LLDPE), the result is a film of exceptional clarity and strength that is ideal for food packaging.

The key ingredients in the company’s proprietary metallocene catalyst.

The principal constituent of natural gas.

A sulfur-based chemical used primarily to produce methionine (a food supplement for poultry) and agricultural chemicals.

A lead-free, anti-knock additive for gasolines.

A colorless liquid product of petroleum distillation that is used as a manufacturing solvent, a dry-cleaning fluid and a gasoline-blending stock.

A petroleum province west of the Prudhoe Bay Field and south of Point Barrow on the North Slope of Alaska, consisting of millions of acres set aside and held in reserve for the purpose of national defense. Also called the Strategic Petroleum Reserve.

A mixture of light hydrocarbons found naturally in the Earth’s crust, often in association with oil (when it is known as associated gas). Methane is the most dominant component.

A mixed stream of ethane, propane, butane and pentanes that is split into individual components. These components are either sold or used as feedstocks for refineries and chemical plants.

A measure of the resistance of a fuel to pre-ignition (“knock”) when burned in an internal combustion engine. The higher the number, the more anti-knock quality.

A substance, such as a mercaptan, that is added to odorless natural gas and natural gas liquids; gives them a characteristic smell and thus enables them to be detected.

A mixture of liquid hydrocarbons of different molecular weights.

Basic chemicals made from oil or natural gas liquids feedstocks; commonly used to manufacture plastics and gasoline. Examples are ethylene and propylene.

The Organization of Petroleum Exporting Countries, which are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.

The legal right to produce oil or gas from a well, accompanied by the responsibilities to pay production costs and assume the risks.

Term used to describe a company appointed by venture stakeholders to take primary responsibility for day-to-day operations for a specific plant or activity.

An aromatic compound used in the manufacture of plasticizers and polyester.

That portion of a continental land mass that constitutes the slope down to the ocean floor. The outer continental shelves are heavily sedimented, and it is believed they contain a large portion of the earth’s undiscovered oil and gas.

An aromatic compound used to make polyester fibers and plastic soft drink bottles.

The stratum of rock in which oil and/or gas is found.

The capacity of a rock or stratum to allow water or other fluids, such as oil, to pass through it.

An intermediate chemical derived from petroleum, hydrocarbon liquids or natural gas: ethylene, propylene, benzene, toluene and xylene.

A generic name for hydrocarbons, including crude oil, natural gas liquids, natural gas and their products

Solid carbon or coke retained as a residue in tar stills after high-temperature distillation.

A cylindrical device that is inserted into a pipeline to clean the pipeline wall or monitor the internal condition of the pipeline. Also called a go-devil.

Long steel piles driven into the seabed to anchor fixed offshore structures solidly in place.

A pipe through which natural gas, crude oil or petroleum products are pumped between two points, either onshore or offshore.

A generic term for a range of high-molecular-weight polymers that can be used to produce a variety of items.

A vessel, tank or tower in which a specific chemical reaction takes place.

That proportion of the oil and/or gas in a reservoir that can be removed using currently available techniques.

The process undertaken to regain material for human use. To reuse; to make ready for reuse.

A plant used to separate the various components present in crude oil and convert them into usable fuel products or feedstock for other processes.

The difference in value between the products produced by a refinery and the value of the crude oil used to produce them. Refining margins will thus vary from refinery to refinery and depend on the price and characteristics of the crude used.

Reformulated gasoline is a cleaner-burning gasoline that reduces smog and other air pollution. Federal law mandates the sale of reformulated gasoline in nine metropolitan areas with the worst ozone smog: Baltimore, Chicago, Hartford, Houston, Los Angeles, Milwaukee, New York, Philadelphia, and San Diego. Some other cities voluntarily require reformulated gasoline. About 20 to 25 percent of the gasoline sold in the United States is reformulated. It has the same effect on the environment as taking seven million cars off the road, according to EPA.

An economically recoverable quantity of crude oil and gas that has not yet been produced from reservoirs.

A porous, permeable sedimentary rock formation containing oil and/or natural gas enclosed or surrounded by layers of less permeable or impervious rock.

The continuing process of integrating and interpreting geological, geophysical, petrophysical, fluid and performance data to form a unified, consistent description of a reservoir.

Very heavy fuel oils produced from the residue from the fractional distillation process rather than from the distilled fractions.

An interval of a geological formation that contains one or more oil or gas reservoirs; a portion of a geological formation that has the porosity and permeability to form petroleum traps for oil and natural gas.

An area of the Timor Sea jointly administered by Australia and Indonesia.