Green Project Marketing Services

Natural Gas Glossary

Account of others (natural gas): Natural gas deliveries for the account of others are deliveries to customers by transporters that do not own the natural gas but deliver it for others for a fee. Included are quantities covered by long-term contracts and quantities involved in short-term or spot market sales.

Apparent consumption, natural gas (international): The total of an individual nation's dry natural gas production plus imports less exports.

Associated natural gas: See Associated-dissolved natural gas and Natural gas.

Associated-dissolved natural gas: Natural gas that occurs in crude oil reservoirs either as free gas (associated) or as gas in solution with crude oil (dissolved gas). Also see Natural gas.

Balancing item: Represents differences between the sum of the components of natural gas supply and the sum of the components of natural gas disposition. These differences may be due to quantities lost or to the effects of data reporting problems. Reporting problems include differences due to the net result of conversions off low data metered at varying temperature and pressure bases and converted to a standard temperature and pressure base; the effect of variations in company accounting and billing practices; differences between billing cycle and calendar period time frames; and imbalances resulting from the merger of data reporting systems that vary in scope, format, definitions, and type of respondents.

Base (cushion) gas: The volume of gas needed as a permanent inventory to maintain adequate reservoir pressures and deliverability rates throughout the withdrawal season. All native gas is included in the base gas volume.

Biomass: Organic non-fossil material of biological origin constituting a renewable energy source.

British thermal unit: The quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit at the temperature at which water has its greatest density (approximately 39 degrees Fahrenheit).

City gate: A point or measuring station at which a distributing gas utility receives gas from a natural gas pipeline company or transmission system.

Coke oven gas: The mixture of permanent gases produced by the carbonization of coal in a coke oven at temperatures in excess of 1,000 degrees Celsius.

Compressed natural gas (CNG): Natural gas which is comprised primarily of methane, compressed to a pressure at or above 2,400 pounds per square inch and stored in special high-pressure containers. It is used as a fuel for natural gas powered vehicles.

Conventional oil and natural gas production: Crude oil and natural gas that is produced by a well drilled into a geologic formation in which the reservoir and fluid characteristics permit the oil and natural gas to readily flow to the wellbore.

Costs (imports of natural gas): All expenses incurred by an importer up to the U.S. point of delivery for the reported quantity {of natural gas} imported.

Cubic foot (cuff), natural gas: The amount of natural gas contained at standard temperature and pressure (60 degrees Fahrenheit and 14.73 pounds standard per square inch) in a cube whose edges are one foot long.

Cycling (natural gas): The practice of producing natural gas for the extraction of natural gas liquids, returning the dry residue to the producing reservoir to maintain reservoir pressure and increase the ultimate recovery of natural gas liquids. The reinjected gas is produced for disposition after cycling operations are completed.

Delivered (gas): The physical transfer of natural, synthetic, and/or supplemental gas from facilities operated by the responding company to facilities operated by others or to consumers.

Depleted storage field: A sub-surface natural geological reservoir, usually a depleted gas or oil field, used for storing natural gas.

Disposition, natural gas: The removal of natural, synthetic, and/or supplemental gas, or any components or gaseous mixtures contained therein, from the responding company's facilities within the report State by any means or for any purpose, including the transportation of such gas out of the report State.

Dry natural gas: Natural gas which remains after: 1) the liquefiable hydrocarbon portion has been removed from the gas stream (i.e., gas after lease, field, and/or plant separation); and 2) any volumes of non-hydrocarbon gases have been removed where they occur in sufficient quantity to render the gas unmarketable. Note: Dry natural gas is also known as consumer-grade natural gas. The parameters for measurement are cubic feet at 60 degrees Fahrenheit and 14.73 pounds per square inch absolute. Also see Natural gas.

Dry natural gas production: The process of producing consumer-grade natural gas. Natural gas withdrawn from reservoirs is reduced by volumes used at the production (lease) site and by processing losses. Volumes used at the production site include (1) the volume returned to reservoirs in cycling, repressuring of oil reservoirs, and conservation operations; and (2) gas vented and flared. Processing losses include (1) non-hydrocarbon gases (e.g., water vapor, carbon dioxide, helium, hydrogen sulfide, and nitrogen) removed from the gas stream; and (2) gas converted to liquid form, such as lease condensate and plant liquids. Volumes of dry gas withdrawn from gas storage reservoirs are not considered part of production. Dry natural gas production equals marketed production less extraction loss.

Electric power sector: An energy-consuming sector that consists of electricity only and combined heat and power (CHP) plants whose primary business is to sell electricity, or electricity and heat, to the public--i.e., North American Industry Classification System 22 plants. See also Combined heat and power (CHP) plant and Electricity only plant.

Electric utility: A corporation, person, agency, authority, or other legal entity or instrumentality aligned with distribution facilities for delivery of electric energy for use primarily by the public. Included are investor-owned electric utilities, municipal and State utilities, Federal electric utilities, and rural electric cooperatives. A few entities that are tariff based and corporately aligned with companies that own distribution facilities are also included.

Exchange, natural gas: A type of energy exchange in which one company agrees to deliver gas, either directly or through intermediaries, to another company at one location or in one time period in exchange for the delivery by the second company to the first company of an equivalent volume or heat content at a different location or time period. Note: Such agreements may or may not include the payment of fees in dollar or volumetric amounts.

Exports: Shipments of goods from within the 50 States and the District of Columbia to U.S. possessions and territories or to foreign countries.

Extraction loss: The reduction in volume of natural gas due to the removal of natural gas liquid constituents such as ethane, propane, and butane at natural gas processing plants.

Flared: Gas disposed of by burning in flares usually at the production sites or at gas processing plants.

Flared natural gas: See flared.

Gas well: A well completed for production of natural gas from one or more gas zones or reservoirs. Such wells contain no completions for the production of crude oil.

Gross withdrawals: Full well stream volume, including all natural gas plant liquid and non-hydrocarbon gases, but excluding lease condensate. Also includes amounts delivered as royalty payments or consumed in field operations.

Heating value: The average number of British thermal units per cubic foot of natural gas as determined from tests of fuel samples.

Imports: Receipts of goods into the 50 States and the District of Columbia from U.S. possessions and territories or from foreign countries.

Intransit deliveries: Redeliveries to a foreign country of foreign gas received for transportation across U.S. territory, and deliveries of U.S. gas to a foreign country for transportation across its territory and redelivery to the United States.

Intransit receipts: Receipts of foreign gas for transportation across U.S. territory and redelivery to a foreign country, and redeliveries to the United States of U.S. gas transported across foreign territory.

Lease and plant fuel: Natural gas used in well, field, and lease operations (such as gas used in drilling operations, heaters, dehydrators, and field compressors) and as fuel in natural gas processing plants.

Lease fuel: Natural gas used in well, field, and lease operations, such as gas used in drilling operations, heaters, dehydrators, and field compressors.

Liquefied natural gas (LNG): Natural gas (primarily methane) that has been liquefied by reducing its temperature to -260 degrees Fahrenheit at atmospheric pressure.

Manufactured gas: A gas obtained by destructive distillation of coal or by the thermal decomposition of oil, or by the action of steam passing through a bed of heated coal or coke. Examples are coal gases, coke oven gases, producer gas, blast furnace gas, blue (water) gas, carbureted water gas. Btu content varies widely.

Marketed production: Gross withdrawals less gas used for repressuring, quantities vented and flared, and non-hydrocarbon gases removed in treating or processing operations. Includes all quantities of gas used in field and processing plant operations.

Native gas: Gas in place at the time that a reservoir was converted to use as an underground storage reservoir in contrast to injected gas volumes.

Natural gas: A gaseous mixture of hydrocarbon compounds, the primary one being methane.

Natural gas field facility: A field facility designed to process natural gas produced from more than one lease for the purpose of recovering condensate from a stream of natural gas; however, some field facilities are designed to recover propane, normal butane, pentanes plus, etc., and to control the quality of natural gas to be marketed.

Natural gas gross withdrawals: Full well-stream volume of produced natural gas, excluding condensate separated at the lease.

Natural gas hydrates: Solid, crystalline, wax-like substances composed of water, methane, and usually a small amount of other gases, with the gases being trapped in the interstices of a water-ice lattice. They form beneath permafrost and on the ocean floor under conditions of moderately high pressure and at temperatures near the freezing point of water.

Natural gas liquids (NGL): Those hydrocarbons in natural gas that are separated from the gas as liquids through the process of absorption, condensation, adsorption, or other methods in gas processing or cycling plants. Generally such liquids consist of propane and heavier hydrocarbons and are commonly referred to as lease condensate, natural gasoline, and liquefied petroleum gases. Natural gas liquids include natural gas plant liquids (primarily ethane, propane, butane, and isobutane; see Natural Gas Plant Liquids) and lease condensate (primarily pentanes produced from natural gas at lease separators and field facilities; see Lease Condensate).

Natural gas liquids production: The volume of natural gas liquids removed from natural gas in lease separators, field facilities, gas processing plants, or cycling plants during the report year.

Natural gas marketed production: Gross withdrawals of natural gas from production reservoirs, less gas used for reservoir repressuring, non-hydrocarbon gases removed in treating and processing operations, and quantities vented and flared.

Natural gas marketer: A company that arranges purchases and sales of natural gas. Unlike pipeline companies or local distribution companies, a marketer does not own physical assets commonly used in the supply of natural gas, such as pipelines or storage fields. A marketer may be an affiliate of another company, such as a local distribution company, natural gas pipeline, or producer, but it operates independently of other segments of the company. In States with residential choice programs, marketers serve as alternative suppliers to residential users of natural gas, which is delivered by a local distribution company.

Natural gas plant liquids: Those hydrocarbons in natural gas that are separated as liquids at natural gas processing plants, fractionating and cycling plants, and, in some instances, field facilities. Lease condensate is excluded. Products obtained include ethane; liquefied petroleum gases (propane, butanes, propane-butane mixtures, ethane-propane mixtures); isopentane; and other small quantities of finished products, such as motor gasoline, special naphthas, jet fuel, kerosene, and distillate fuel oil.

Natural Gas Policy Act of 1978 (NGPA): Signed into law on November 9, 1978, the NGPA is a framework for the regulation of most facets of the natural gas industry.

Natural gas processing plant: Facilities designed to recover natural gas liquids from a stream of natural gas that may or may not have passed through lease separators and/or field separation facilities. These facilities control the quality of the natural gas to be marketed. Cycling plants are classified as gas processing plants.

Natural gas production: See Dry natural gas production.

Natural gas utility demand-side management (DSM) program sponsor: A DSM (demand-side management) program sponsored by a natural gas utility that suggests ways to increase the energy efficiency of buildings, to reduce energy costs, to change the usage patterns, or to promote the use of a different energy source.

Natural gas, "dry": See Dry natural gas.

Natural gasoline: A term used in the gas processing industry to refer to a mixture of liquid hydrocarbons (mostly pentanes and heavier hydrocarbons) extracted from natural gas. It includes isopentane.

Natural Gasoline and Isopentane: A mixture of hydrocarbons, mostly pentanes and heavier, extracted from natural gas, that meets vapor pressure, end-point, and other specifications for natural gasoline set by the Gas Processors Association. Includes isopentane which is a saturated branch-chain hydrocarbon, (C5H12), obtained by fractionation of natural gasoline or isomerization of normal pentane.

Non-associated natural gas: Natural gas that is not in contact with significant quantities of crude oil in the reservoir. See natural gas.

Non-hydrocarbon gases: Typical non-hydrocarbon gases that may be present in reservoir natural gas, such as carbon dioxide, helium, hydrogen sulfide, and nitrogen.

Nonutility power producer: A corporation, person, agency, authority, or other legal entity or instrumentality that owns or operates facilities for electric generation and is not an electric utility. Non-utility power producers include qualifying co-generators, qualifying small power producers, and other nonutility generators (including independent power producers). Non-utility power producers are without a designated franchised service area and do not file forms listed in the Code of Federal Regulations, Title 18, Part 141

Offshore reserves and production: Unless otherwise dedicated, reserves and production that are in either state or Federal domains, located seaward of the coastline.

Offsystem (natural gas): Natural gas that is transported to the end user by the company making final delivery of the gas to the end user. The end user purchases the gas from another company, such as a producer or marketer, not from the delivering company (typically a local distribution company or a pipeline company).

Oil well: A well completed for the production of crude oil from at least one oil zone or reservoir.

On-system sales: Sales to customers where the delivery point is a point on, or directly interconnected with, a transportation, storage, and/or distribution system operated by the reporting company.

Onsystem (natural gas): Natural gas that is sold (and transported) to the end user by the company making final delivery of the gas to the end user. Companies that make final delivery of natural gas are typically local distribution companies or pipeline companies.

Outer Continental Shelf: Offshore Federal domain.

Pipeline (natural gas): A continuous pipe conduit, complete with such equipment as valves, compressor stations, communications systems, and meters for transporting natural and/or supplemental gas from one point to another, usually from a point in or beyond the producing field or processing plant to another pipeline or to points of utilization. Also refers to a company operating such facilities.

Pipeline fuel: Gas consumed in the operation of pipelines, primarily in compressors.

Pipeline quality natural gas: A mixture of hydrocarbon compounds existing in the gaseous phase with sufficient energy content, generally above 900 British thermal units, and a small enough share of impurities for transport through commercial gas pipelines and sale to end-users.

Production, natural gas: The volume of natural gas withdrawn from reservoirs less (1) the volume returned to such reservoirs in cycling, repressuring of oil reservoirs, and conservation operations; less (2) shrinkage resulting from the removal of lease condensate; and less (3) non-hydrocarbon gases where they occur in sufficient quantity to render the gas unmarketable. Volumes of gas withdrawn from gas storage reservoirs and native gas, which has been transferred to the storage category, are not considered production. Flared and vented gas is also considered production. (This differs from "Marketed Production" which excludes flared and vented gas.)

Production, natural gas liquids: Production of natural gas liquids is classified as follows:

  • Contract Production. Natural gas liquids accruing to a company because of its ownership of liquids extraction facilities that it uses to extract liquids from gas belonging to others, thereby earning a portion of the resultant liquids.
  • Leasehold Production. Natural gas liquids produced, extracted, and credited to a company's interest.
  • Contract Reserves. Natural gas liquid reserves corresponding to the contract production defined above.
  • Leasehold Reserves. Natural gas liquid reserves corresponding to leasehold production defined above.

Production, natural gas, dry: The volume of natural gas withdrawn from reservoirs during the report year less:

  1. the volume returned to such reservoirs in cycling, repressuring of oil reservoirs, and conservation operations; less
  2. shrinkage resulting from the removal of lease condensate and plant liquids; and less
  3. non-hydrocarbon gases where they occur insufficient quantity to render the gas unmarketable.

Volumes of gas withdrawn from gas storage reservoirs and native gas, which has been transferred to the storage category, are not considered production. This is not the same as marketed production, because the latter also excludes vented and flared gas, but contains plant liquids.

Production, natural gas, wet after lease separation: The volume of natural gas withdrawn from reservoirs less (1) the volume returned to such reservoirs in cycling, repressuring of oil reservoirs, and conservation operations; less (2) shrinkage resulting from the removal of lease condensate; and less (3) non-hydrocarbon gases where they occur in sufficient quantity to render the gas unmarketable. Note: Volumes of gas withdrawn from gas storage reservoirs and native gas that has been transferred to the storage category are not considered part of production. This production concept is not the same as marketed production, which excludes vented and flared gas.

Propane air: A mixture of propane and air resulting in a gaseous fuel suitable for pipeline distribution.

Proved energy reserves: Estimated quantities of energy sources that analysis of geologic and engineering data demonstrates with reasonable certainty are recoverable under existing economic and operating conditions. The location, quantity, and grade of the energy source are usually considered to be well established in such reserves. Note: This term is equivalent to "Measured Reserves" as defined in the resource/reserve classification contained in the U.S. Geological Survey Circular 831, 1980. Measured and indicated reserves, when combined, constitute demonstrated reserves.

Receipts:

  • Deliveries of fuel to an electric plant
  • Purchases of fuel
  • All revenues received by an exporter for the reported quantity exported

Refinery gas: Non condensate gas collected in petroleum refineries.

Repressuring: The injection of gas into oil or gas formations to effect greater ultimate recovery.

Salable natural gas: Natural gas marketed under controlled quality conditions.

Spot market (natural gas): A market in which natural gas is bought and sold for immediate or very near-term delivery, usually for a period of 30 days or less. The transaction does not imply a continuing arrangement between the buyer and the seller. A spot market is more likely to develop at a location with numerous pipeline interconnections, thus allowing for a large number of buyers and sellers. The Henry Hub in southern Louisiana is the best known spot market for natural gas.

Storage additions: Volumes of gas injected or otherwise added to underground natural gas reservoirs or liquefied natural gas storage.

Storage withdrawals: Total volume of gas withdrawn from underground storage or from liquefied natural gas storage over a specified amount of time.

Supplemental gaseous fuels supplies: Synthetic natural gas, propane-air, coke oven gas, refinery gas, biomass gas, air injected for Btu stabilization, and manufactured gas commingled and distributed with natural gas.

Synthetic natural gas (SNG): (Also referred to as substitute natural gas) a manufactured product, chemically similar in most respects to natural gas, resulting from the conversion or reforming of hydrocarbons that may easily be substituted for or interchanged with pipeline-quality natural gas.

Therm: One hundred thousand (100,000) Btu.

Unaccounted for (natural gas): Represents differences between the sum of the components of natural gas supply and the sum of components of natural gas disposition. These differences may be due to quantities lost or to the effects of data reporting problems. Reporting problems include differences due to the net result of conversions of flow data metered at varying temperatures and pressure bases and converted to a standard temperature and pressure base; the effect of variations in company accounting and billing practices; differences between billing cycle and calendar-period time frames; and imbalances resulting from the merger of data reporting systems that varyin scope, format, definitions, and type of respondents.

Unconventional oil and natural gas production: An umbrella term for oil and natural gas that is produced by means that do not meet the criteria for conventional production. See Conventional oil and natural gas production. Note: What has qualified as "unconventional" at any particular time is a complex interactive function of resource characteristics, the available exploration and production technologies, the current economic environment, and the scale, frequency, and duration of production from the resource. Perceptions of these factors inevitably change over time and they often differ among users of the term. For these reasons, the scope of this term will be expressly stated in any EIA publication that uses it. For example, seeInternational Energy Outlook, Table E4 for the list it currently uses for unconventional oil and natural gas production.

Underground gas storage: The use of sub-surface facilities for storing gas that has been transferred from its original location. The facilities are usually hollowed-out salt domes, geological reservoirs (depleted oil or gas fields) or water-bearing sands topped by an impermeable cap rock (aquifer).

Underground gas storage reservoir capacity: Interstate company reservoir capacities are those certificated by the Federal Energy Regulatory Commission. Independent producer and intrastate company reservoir capacities are reported as developed capacity.

Underground storage injections: Gas from extraneous sources put into underground storage reservoirs.

Underground storage withdrawals: Gas removed from underground storage reservoirs.

Undiscovered recoverable reserves (crude oil and natural gas): Those economic resources of crude oil and natural gas, yet undiscovered, that are estimated to exist in favorable geologic settings.

Unit value, consumption: Total price per specified unit, including all taxes, at the point of consumption.

Unit value, wellhead: The wellhead sales price, including charges for natural gas plant liquids subsequently removed from the gas; gathering and compression charges; and state production, severance, and/or similar charges.

Vehicle fuel consumption: Vehicle fuel consumption is computed as the vehicle miles traveled divided by the fuel efficiency reported in miles per gallon (MPG). Vehicle fuel consumption is derived from the actual vehicle mileage collected and the assigned MPGs obtained from EPA certification files adjusted for on-road driving. The quantity of fuel used by vehicles.

Vented: Gas released into the air on the production site or at processing plants.

Vented natural gas: See vented.

Wellhead: The point at which the crude (and/or natural gas) exits the ground. Following historical precedent, the volume and price for crude oil production are labeled as "wellhead, "even though the cost and volume are now generally measured at the lease boundary. In the context of domestic crude price data, the term "wellhead" is the generic term used to reference the production site or lease property.

Wellhead price: The value at the mouth of the well. In general, the wellhead price is considered to be the sales price obtainable from a third party in an arm's length transaction. Posted prices, requested prices, or prices as defined by lease agreements, contracts, or tax regulations should be used where applicable.

Wet natural gas: A mixture of hydrocarbon compounds and small quantities of various non hydrocarbons existing in the gaseous phase or in solution with crude oil in porous rock formations at reservoir conditions. The principal hydrocarbons normally contained in the mixture are methane, ethane, propane, butane, and pentane. Typical non-hydrocarbon gases that may be present in reservoir natural gas are water vapor, carbon dioxide, hydrogen sulfide, nitrogen and trace amounts of helium. Under reservoir conditions, natural gas and its associated liquefiable portions occur either in a single gaseous phase in the reservoir or in solution with crude oil and are not distinguishable at the time as separate substances. Note: The Securities and Exchange Commission and the Financial Accounting Standards Board refer to this product as natural gas.

Working (top storage) gas: The volume of gas in the reservoir that is in addition to the cushion or base gas. It may or may not be completely withdrawn during any particular withdrawal season. Conditions permitting, the total working capacity could be used more than once during any season.

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