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Accommodation Platform/Rig
An offshore platform, or semi-submersible rig, built or adapted to provide living quarters for drilling and
production personnel.
Acreage
Land leased for oil and gas exploration and development; usually descriptive of more than one lease.
Additive
A term used generally to indicate special chemicals that may be added to products to improve their
characteristics.
Air Drilling
A rotary drilling technique in which compressed air is used instead of fluids to circulate, or bring to the
surface, bits of rock and other cuttings from the drill bit.
Air Injection
An enhanced recovery technique in which air is inected into the petroleum formation to increase reservoir
pressure.
Air Lift
A production technique in which an air balance beam pumping unit is used to lift oil to the surface.
Aliphatic solvents
!rimarily white spirit and hexane for industrial use.Alkylation
A refining process for converting light, gaseous olefins into high-octane gasoline components "the reverse
of cracking#.
Alloy
A composition of two or more metals.
Annulus
$he space between the drill string and the earthen wall of the well bore, or between the production tubing
and the casing.
API Gravity
A measurement of the gravity "weight per unit volume# of crude oil and other liquid hydrocarbons by a
system recommended by the American !etroleum %nstitute "A!%#. $he measuring scale is calibrated in
terms of &A!% degrees.& $he lower the A!% gravity, the heavier the oil. $he higher the A!% gravity, the
lighter the oil.
Appraisal Drilling
'rilling carried out following the discovery of a new field to determine the physical extent, amount of
reserves and likely production rate of the field.
Appraisal Well
A well drilled as part of an appraisal drilling program.
ARDS
$he refiner(s shorthand for &atmospheric residual desulfuri)ation,& a refining process that removes sulfur
from oils.
Aromatics
*lass of hydrocarbons that have at least one ben)ene ring as part of their structure. +enerally describes
ben)ene and ben)ene derivatives. !hillips-produced aromatics include ben)ene, toluene and xylene.
$hese products are used as components of unleaded gasolines and as feedstocks for petrochemicals
such as cyclohexane and paraxylene, both of which are used in end products like nylons and polyesters.
Artificial Drives
$echniques for producing oil after depletion or in lieu of natural drives; includes waterflooding, natural gas
reinection, inert gas inection, flue gas inection and in-situ combustion.
Artificial Lift
Any of the techniques, other than natural drives, for bringing oil to the surface.
Associated Gas
,atural gas found in association with oil, either dissolved in the oil or as a cap of free gas above the oil.
Associated Liuids
Liquid hydrocarbons found in association with natural gas.
Atmospheric distillation
$he distillation of crude oil under pressure, slightly higher than atmospheric. $his is the basic process that
takes place in oil refining.
Aviation Gasoline
-igh-performance petroleum fuels made specifically for piston engine, propeller- driven airplanes
B
!arge
,on-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.
!arrel
As the standard unit of measurement of liquids in the petroleum industry, it contains ./ 0.1. standard
gallons. Abbreviated to &bbl.&
!arrels of "il #uivalent $!"#%
$he volume of natural gas that when burned produces the same amount of heat as a barrel of oil "2,333
cubic feet of gas equals one barrel of oil#.
456 7 gas volumes divided by six and added to crude and natural gas volumes.
!asement Roc&
$he ancient rock that lies below sedimentary strata; it does not contain oil or gas.
!ase oils
8eedstock for lubricant production from the residual part of crude oil.4edrock
$he firm base rock to which is anchored the geological structure of interest to petroleum geologists.
!en'ene
An aromatic hydrocarbon present to a minor degree in most crude oils. 1ome important products
manufactured from ben)ene are styrene, phenol, nylon and synthetic detergents.
!lending
$he technique of combining two or more petroleum liquids to produce a product with specific
characteristics.
!loc&
A geographical area that includes several separate oil and gas license tracts.
!loc& Leases
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.
!loc& (um)er
$he numerical designation assigned to offshore lease and license tracts, or subdivisions of the tracts.
!lo* +olding
A plastics-forming process that uses compressed air to shape the final product by expanding it to fit the
mold.
!ooster
A pump system installed to maintain or increase pressure in pipelines so that liquids and gases keep
flowing.
!"PD/!PD
4arrels of oil per day; barrels per day.
!"PP-
4i-axially oriented polypropylene production.4ottom 5ut
$o reach the obective depth in drilling a well.
!ottoms
$he heavy portions, or fractions, of a crude oil that do not vapori)e during distillation; the accumulation of
sediments, mud and water in the bottoms of lease tanks.
!ottom,hole Assem)ly
$he components, together as a group, that make up the lower end of the drill string 9 comprising the drill
bit, drill collars, drill pipe and ancillary equipment.
!un&er fuel oil
A heavy residual fuel oil used by ships.
!utadiene
A butane derivative that is one of the most widely used raw materials used in the manufacture of synthetic
rubber.
!utane
:efers usually to a mixture of isobutane and normal butane. A flammable, gaseous hydrocarbon. 0sed as
fuel.
!ypass
A pipe connected around a valve or other control mechanism in a flow line for the purpose of maintaining
flow during adustments or repair work.
!y,product
A substance obtained incidentally during the manufacture or production of some other substance.
-
-ap Roc&
An impervious layer of rock that overlies a reservoir rock, thus preventing hydro- carbons from escaping
to the surface.
-apillaries
$he minute spaces, cracks or pores in rock through which hydrocarbon fluids move in response to natural
forces.
-apping
$ightly closing a well so that oil or natural gas cannot escape.
-ar)on
$he base of all hydrocarbons; capable of combining with hydrogen in almost numberless hydrocarbon
compounds. $he carbon content of a hydrocarbon determines, to a degree, the hydrocarbon(s burning
characteristics and qualities.
-asing
1teel 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.
-asing Perforation
$he holes made in the liner of a finished well to allow oil or natural gas to flow into the production tube.
-asing Seat
$he lowest point at which casing is set.
-asinghead
$he 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.
-asinghead Gas
+as produced with oil from an oil well as distinguished from gas from a gas well. $he casinghead gas is
taken off at the top of the well or at the separator.
-asinghead Gasoline
Liquid hydrocarbons separated from casinghead gas by the reduction of pressure at the wellhead or by a
separator or an absorption plant.
-atalyst
1ubstance that aids or promotes a chemical reaction between other substances, but does not, itself, enter
into the reaction.
-atalytic -rac&ing
A petroleum refining process in which heavy hydrocarbon molecules are broken down "cracked# into
lighter molecules by passing them over a suitable catalyst "generally heated#.
-atalytic reforming
$he conversion of naphtha into higher octane intermediate products suitable for blending into finished
gasoline or for petrochemical feedstocks via simultaneous catalytic combination of polymerisation,
cracking, dehydrogeneration and isomerisation processes.
--R $continuous catalyst regeneration#
*ontinuous catalyst regeneration technology. $his assures the continuous operation of the catalytic
reforming process. %t involves partially aged catalyst in the reactors being continuously replaced with
freshly generated catalyst from an external regenerator to maintain a low average cost of the reactor
catalyst.-ementing
$he technique of pumping cement into the space between the casing and the well bore wall in order to
hold the casing in place.
-ho&e
A device to restrict the rate of flow during the testing of an exploratory discovery.
-I/
*%8 prices for crude oil, feedstocks and finished products include the cost of insurance and freight
charges.
-irculation
$he techniques for bringing rock cuttings from the bottom of the well bore to the surface by continuously
pumping drilling mud down through the drill string and up the annulus during rotary drilling.
-lean -irculation
'escriptive of drilling muds returning to the surface without rock cuttings.
-losed,in
'escriptive of a well that is capable of producing, but is not producing at the time.
-oal
A solid fossil fuel consisting mainly of carbon produced by the compression of decayed plants.
-oal)ed +ethane
A methane-rich, sulfur-free natural gas contained within underground coal beds. !roduced in the 1an
;uan 4asin of ,ew <exico.
-ogeneration
$he simultaneous production of electricity and steam from a single process, which requires up to one-
third less fuel than separate production.
-o&e
-ard carbon and other crude oil impurities that can form inside furnace tubes.
-om)ined cycle po*er generation
6lectrical power generation using the combination of gas turbogenerators and steam turbogenerators.
$he flue gas from the gas turbogenerator(s exhaust is used to produce steam to drive the steam
turbogenerators.
-ommercial /ield
An oil or natural gas field that, under existing economic and operating conditions, is udged to be capable
of generating enough revenues to exceed the costs of development.
-ommingling
!roducing oil and gas from two or more reservoirs at different depths.
-ompleting a Well
$he process by which a finished well is either sealed off or prepared for production by fitting a wellhead.
*omplex refinery
A refinery, the configuration of which includes a cracking complex.
-oncession
A geographic area that is licensed or leased to a company for a given period for exploration and
development under specified terms and conditions.
-ondensate
A term used to describe light liquid hydrocarbons separated from crude oil after production and sold
separately.
-onfiguration inde0
A scale providing a quantitative means of comparing the overall processing capabilities of individual
refineries. *onfiguration "or complexity# indices are produced by various companies "e.g., 1olomon
Associates#.
-onservation
:egulation of oil and=or gas production from a reservoir in order to prolong its life and hopefully recover a
larger quantity of the oil or gas in place; re-inection of associated gas for future use. Also, environmental
protection and preservation.
-onsortium
A group of unrelated companies acting together in a specific venture.
-ontinental Shelf
$he edge of a continental mass that lies under the sea in comparatively shallow water "up to a water
depth of about >33 feet#.
-opolymer
A polymer manufactured from two or more different monomers. An example is butadiene-styrene.
-o,venturer
A person or company oined with others in a particular venture.
-rac&ing
$he refinery process in which large, heavy, complex hydrocarbon molecules are broken down into simpler
and lighter molecules in order to derive a variety of fuel products.
-rude "il
A mineral oil consisting of a mixture of hydrocarbons of natural origin, yellow to black in color, of variable
specific gravity and viscosity; often referred to simply as crude.
-rude slate sulphur content
$he average percentage of sulphur contained in crude oil. +enerally, the higher the crude slate content
the lower the price of the crude oil.
-yclohe0ane
$he cyclic form of hexane; used as a raw material in the manufacture of nylon.
D
Delineation Well
A well drilled in an unproven area adacent to a proven well to determine the extent of the reservoir; also
referred to as a &stepout& well.
Distillation
<ethod of fractionation. 'istillation is based on the difference in boiling point of the liquids in the mixture
to be separated. 1uccessive vaporisation and condensation of crude oil in a fractioning column will
separate out the lighter fractions, leaving a residue.
Do*nhole
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.
Do*nstream
All activities associated with the refining, marketing and transportation of petroleum products.
E
#ffluent
?aste liquid, gas or vapor that results from petroleum and chemical processing.
#m1RA-
6mergency $raining and :esponse Action *enters. $wo specially designed communications and
emergency vehicles operated by the :ed *ross and sponsored by !hillips. 6m$:A* was developed after
the 5klahoma *ity bombing to provide fast, mobile assistance in emergencies.
#nhanced "il Recovery
:ecovery of oil or gas from a reservoir by artificially maintaining or enhancing the reservoir pressure by
inecting gas, water or other substances into the reservoir rock.
#thylene
4asic chemical used in the manufacture of plastics "such as polyethylene#, antifree)e and synthetic fibers.
#0ploration Drilling
'rilling carried out to determine whether hydrocarbons are present in a particular area or structure.
#0ploration License
A license to explore for oil or gas in a particular area issued to a company by the governing state.
#0ploration Phase
$he 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.
#0ploration Rig
A structure used to carry the equipment needed for exploratory drilling.
F
/-- $fluid catalytic crac&ing#
*atalytic conversion of heavier and more complex hydrocarbons into lighter products and coke in fluidised
bed catalytic reactor with continuous catalyst regeneration. $hus the lighter products yield from crude oil
is increased.
/eedstoc&
*rude oil, natural gas liquids, natural gas or other materials used as raw ingredients for making gasoline,
other refined products or chemicals.
/ield
A geographical area under which a producing or prospective oil and=or natural gas reservoir lies.
/ield Potential
6stimate of the producing capacity of a field during a /.-hour period.
/lare
An open flame used to burn off unwanted natural gas.
/lare Stac&
$he steel structure on an offshore rig or at a processing facility from which gas is flared.
/"!
8ree on board. 854 prices for crude oil, feedstocks and finished products do not include the cost of
insurance and freight charges.
/PS"
8loating production, storage and offloading facility.
/ractionating -olumn
A tall tower, fitted with perforated trays, in which fractional distillation of crude oil or its products is carried
out.
/ractionation
$he process for breaking natural gas liquids into component parts -- methane, ethane, propane, butane,
pentane and heavier hydrocarbons.
/uel "ils
$he heavy distillates from the oil refining process that are used primarily for heating, for fueling industrial
processes, for fueling locomotives and ships, and for fueling power generation systems.
G
Gas /ield
A field containing natural gas but no oil.
Gas Injection
An enhanced recovery technique in which natural gas is inected under pressure into a producing
reservoir through an inection well to drive oil to the well bore and the surface.
Gasification
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 fertili)ers.
Gasoline
$he light fuel used to spark ignition engines in cars, motorcycles, etc. <odern gasolines are blends of
petroleum liquids that are produced in several different processes and which generally contain additives.
1old under the !hillips 22 brand at more than 2,@33 stations in /2 states.
Gathering Lines2 Systems
$he piping networks installed in oil or gas fields to transport petroleum to a processing plant or bulk
shipping point.
Glo)al Warming
A rise in the average global temperature. $here is general agreement in the scientific community that
average global temperatures have risen about one degree 8ahrenheit during the past century. !hillips
supports taking actions now that make good environmental and economic sense in their own right -- such
as energy conservation and improved efficiency. $he company also supports further work to improve our
understanding of the impact of human activity on climate.
Go,devil
A scraper that is run through the pipeline to clear out loose obects and clean the wall of the line.
Goals
!hillips( corporate goals areA a total annual return of B@ percent on a @-year rolling average; quality
products, superior services and innovative solutions for our customers; and opportunity, development and
recognition for our employees.
H
3DP#
-igh-density polyethylene. 0sed in the manufacture of plastic items such as plastic pipe, grocery bags,
water coolers and milk bottles.
3eavy !ottoms
$hick, black substances that remain in refinery stills after all lighter fractions have been processed out of
the feedstock.
3eavy -rude
*rude oil of /3-degree A!% gravity or less; often very thick and viscous.
3e0ane
A petroleum liquid found in small amounts in condensates; one of the components of natural gasoline.
3e0ene,4
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.
3ori'ontal Drilling
$he technique for cutting a hole in geological strata in a hori)ontal, rather than the normal vertical,
direction.
3ydrocar)ons
5rganic chemical compounds of hydrogen and carbon atoms that form the basis of all petroleum
products. $hey may exist as solids, liquids or gases.
3ydrocrac&ing
*atalytic cracking of hydrocarbon feedstocks in the presence of hydrogen.
3ydrodesulphurisation
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#.
3ydros&imming refinery 9
a refinery with a configuration which only includes distillation, reforming, some hydrotreating, and
occasionally sulphur recovery processes.
3ydrotreating
$he process whereby feedstocks are place into contact with hydrogen, under high pressure and at a high
temperature, in the presence of a catalyst, to reduce the content of sulphur, nitrogen, metals,
polyaromatics and olefins.
I
Improved Recovery
$echnology for increasing or prolonging the productivity of oil and gas fields. $his is a special field of
activity and research in the oil and gas industry.
Injection +olding
A plastics-forming process in which molten plastic is forced into amold under pressure and allowed to
solidify.
Injection Well
A well used to inect gas or water into the reservoir in order to maintain reservoir pressure in secondary
recovery proects or for conservation purposes.
Isomerisation
$he rearrangement of the molecular structure of hydrocarbons without adding or removing anything from
the original material. %somerisation 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
5
5ac&
An oil well pumping unit that operates with an up-and-down, or seesawing, motion; also called a pumping
ack.
5ac&et
$he steel lattice structure that supports an offshore platform.
5ac&et Platform
An offshore platform constructed entirely of steel. 1uch platforms generally are held in position by long
steel piles driven deep into the seabed.
5ac&,up Rig
A type of mobile offshore platform with retractable legs that stand on the seabed to help support the
drilling platform.
5oint 6enture
An investment undertaken by a consortium of companies, usually with one member acting as operator.
K
7erosene
A medium-light distillate from the oil refining process; used for lighting and heating, and for the
manufacture of fuel for et and turbo-prop aircraft engines.
7erosene mero0
*atalytic processing of kerosene to convert mercaptan sulphur into less - obectionable disulphides, which
remain in the treated product.
7,Resin
!hillips( copolymer resin used to produce clear packaging materials, cups, water bottles, toys and shower
doors.
7ic&s 88
!hillips( company-owned retail outlets, featuring up to .,333 square feet of shopping space and a wide
range of food items.
L
LDLP#
Low-density linear polyethylene. A strong, clear film ideal for packaging.
Lease
$he 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.
Lease "perating #0penses
!roduction expenses and cost of sales excluding exploration expenses, depreciation, depletion,
amorti)ation and dry hole expenses.
License
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.
License !loc&
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.
License Round
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.
Light -rude
*rude oil with a high A!% gravity due to the presence of a high proportion of light hydrocarbon fractions.
Lightering
0nloading cargo from large marine tankers into smaller tankers that can enter shallow-water ports.
Lignite
0sually a dark brown substance that is the lowest rank of coal.
Liuefied (atural Gas $L(G%
,atural gas liquefied either by refrigeration or by pressure to facilitate storage or transportation.
Liuefied Petroleum Gas $LPG%
A mixture of butane, propane and other light hydrocarbons derived from refining crude oil. At normal
temperatures it is a gas, but it can be cooled or subected to pressure to facilitate storage and
transportation.
Linear programming
1ophisticated mathematical models used to simulate and optimise refining processes.
Liuids
An aggregate of crude oil and natural gas liquids; also known as hydrocarbon liquids.
LLDP#
Linear low-density polyethylene. A strong, clear film ideal for packaging and one of the fastest-growing
M
+arginal /ield
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.
+aureen Platform
Located B2C miles offshore Aberdeen, 1cotland, <aureen is the world(s first large re-usable platform --
and is currently for sale. Like all of !hillips( 0.D. fields, <aureen was named after the wife of the
geoscientist who discovered the field.
+-/
$he abbreviation for &thousand cubic feet,& the standard measure for natural gas.
+easured Depth
$he depth of the well measured along the wellbore. Also called logged or drillerEs depth.
+ercaptans
*ompounds 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 odori)e natural gas.
+etallocene -atalyst
,ew &precision& catalysts that provide extended manufacturing control over the molecular structure and
properties of polyethylene. ?hen used to manufacture linear low-density polyethylene "LL'!6#, the result
is a film of exceptional clarity and strength that is ideal for food packaging.
+etallocene -ompounds
$he key ingredients in the company(s proprietary metallocene catalyst.
+ethane
$he principal constituent of natural gas.
+ethyl +ercaptan
A sulfur-based chemical used primarily to produce methionine "a food supplement for poultry# and
agricultural chemicals.
+ethyl 1ertiary !utyl #ther $+1!#%
A lead-free, anti-knock additive for gasolines.
+idstream
All activities associated with storage and transport of crude oil and natural gas "before processing# via
ship, rail, truck or pipeline.
+ission
!hillips( corporate mission is to provide superior financial returns for its shareholders.
++-/D
<illion cubic feet per day.
+onomer
A simple molecular unit "such as ethylene or styrene# from which a polymer can be made.
+otor "il
:efined lubricating oil, usually containing additives; used as a lubricant in internal combustion engines.
!hillips( brand is called $ropArtic
plastics lines in the world.
(
(aphtha
A colorless liquid product of petroleum distillation that is used as a manufacturing solvent, a dry-cleaning
fluid and a gasoline-blending stock.
(ational Petroleum Reserve
A petroleum province west of the !rudhoe 4ay 8ield and south of !oint 4arrow on the ,orth 1lope of
Alaska, consisting of millions of acres set aside and held in reserve for the purpose of national defense.
Also called the 1trategic !etroleum :eserve.
(atural Gas
A mixture of light hydrocarbons found naturally in the 6arth(s crust, often in association with oil "when it is
known as associated gas#. <ethane is the most dominant component.
(atural Gas Liuids $(GL%
A mixed stream of ethane, propane, butane and pentanes that is split into individual components. $hese
components are either sold or used as feedstocks for refineries and chemical plants.
O
"ctane (um)er
A measure of the resistance of a fuel to pre-ignition "&knock&# when burned in an internal combustion
engine. $he higher the number, the more anti-knock quality.
"dorant
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.
"il
A mixture of liquid hydrocarbons of different molecular weights.
"il /ield
A geographical area under which an oil reservoir lies.
"lefins
4asic chemicals made from oil or natural gas liquids feedstocks; commonly used to manufacture plastics
and gasoline. 6xamples are ethylene and propylene.
"P#-
$he 5rgani)ation of !etroleum 6xporting *ountries, which are Algeria, %ndonesia, %ran, %raq, Duwait,
Libya, ,igeria, Fatar, 1audi Arabia, 0nited Arab 6mirates and Gene)uela.
"perating Interest
$he legal right to produce oil or gas from a well, accompanied by the responsibilities to pay production
costs and assume the risks.
"perator
$erm used to describe a company appointed by venture stakeholders to take primary responsibility for
day-to-day operations for a specific plant or activity.
"rtho0ylene
An aromatic compound used in the manufacture of plastici)ers and polyester.
"uter -ontinental Shelf $"-S%
$hat portion of a continental land mass that constitutes the slope down to the ocean floor. $he outer
continental shelves are heavily sedimented, and it is believed they contain a large portion of the earthEs
undiscovered oil and gas.
P
Para0ylene
An aromatic compound used to make polyester fibers and plastic soft drink bottles.
Pay 9one
$he stratum of rock in which oil and=or gas is found.
Permea)ility
$he capacity of a rock or stratum to allow water or other fluids, such as oil, to pass through it.
Petrochemical
An intermediate chemical derived from petroleum, hydrocarbon liquids or natural gasA ethylene,
propylene, ben)ene, toluene and xylene.
Petroleum
A generic name for hydrocarbons, including crude oil, natural gas liquids, natural gas and their products.
Petroleum -o&e
1olid carbon or coke retained as a residue in tar stills after high-temperature distillation.
Pig
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.
Pilings
Long steel piles driven into the seabed to anchor fixed offshore structures solidly in place.
Pipeline
A pipe through which natural gas, crude oil or petroleum products are pumped between two points, either
onshore or offshore.
Plastic
A generic term for a range of high-molecular-weight polymers that can be used to produce a variety of
items.
Plastic Resins
A class of petroleum-based materials that can be molded to form plastic items or used as the basis of
adhesives.
Plateau Level
$he level of peak production reached by an oil or gas field; it is always followed by declining level of
production.
Platform
An offshore structure from which development wells are drilled; see drilling installation, production
installation.
Platt:s /"! +#D ,
free on board <editerranean prices as stipulated by !latt(s.
Playa La&es 5oint 6enture
!hillips was one of the founding partners of this cooperative partnership of government and private
organi)ations to preserve the playas of 5klahoma, $exas, ,ew <exico, *olorado and Dansas. !layas,
which are small, shallow basins, serve as critical habitat for some . million ducks, geese and sandhill
cranes. An important part of the effort is providing teachers in the playa region with educational materials
that stress the importance of playas. %n BHHB, the oint venture was awarded a !residential *itation by
!resident +eorge 4ush.
Plugging
$he process whereby a well that is no longer "and never likely to be# needed is filled with concrete and
abandoned. 5ften referred to as &pIa& -- plugged and abandoned.
Polymer
A complex compound formed by the polymeri)ation of one or more monomers.
Polyethylene
!lastic made from ethylene; used in manufacturing trash bags, milk ugs, shampoo bottles, water coolers
and cable coating, among other things.
Polyphenylene Sulfide
An engineering plastic with excellent resistance to most chemicals. 1ee :yton.
Polypropylene
4asic plastic formed by oining propylene molecules together. 0sed in the manufacture of synthetic fibers,
automotive parts, luggage, safety helmets and home construction.
Po*erformer
$he commercial name of the 6sso proprietary naphtha catalytic reforming processor.
PP+
$he abbreviation for &parts per million,& the scale on which impurities and contaminants in oils, gases and
petrochemicals are measured.
Processing Plant
A facility designed to separate substances or make new substances through chemical reactions,
procedures or physical actions.
Produced Water
4rines that flow or are lifted to the surface with oil.
Product ;ield
$he percentages of gasoline, et fuel, kerosene, gas oil, distillates, residual fuel oil, lubricating oil and solid
products that a refinery can produce from a single barrel of crude oil.
Production Drilling
'rilling of wells in order to bring a field into production.
Production Installation
An installation from which development wells are drilled and that carries all the associated processing
plants and other equipment needed to maintain a field in production.
Production License
A document issued by the governing state granting an oil company authority to produce oil and natural
gas in a designated geographic area.
Production Phase
$he productive life of an oil or gas field.
Production Platform
A platform from which development wells are drilled and that carries all the associated processing plants
and other equipment needed to maintain a field in production.
Production String
$he tubing or piping in a production well through which oil or gas flows from the reservoir to the wellhead.
Production Well
A well used to remove oil or gas from a reservoir.
Propane
A heavy gaseous hydrocarbon found in crude oil and natural gas; used as fuel and in the making of
petrochemicals.
Propylene
A raw material in the chemical, plastics and fibers industries. <aor component of the plastic
polypropylene.
Proven /ield
An oil and=or gas field whose physical extent and estimated reserves have been determined.
Proven Reserves
6stimated quantities of hydrocarbons that geological and engineering data demonstrate will be
recoverable from known oil and natural gas reservoirs under existing economic and operating conditions.
Pump Stations
8acilities placed along the route of a pipeline to keep oil or gas moving along with pressure or suction.
R
Reactor
A vessel, tank or tower in which a specific chemical reaction takes place.
Recovera)le Reserves
$hat proportion of the oil and=or gas in a reservoir that can be removed using currently available
techniques.
Recycling
$he process undertaken to regain material for human use. $o reuse; to make ready for reuse.
Refinery
A plant used to separate the various components present in crude oil and convert them into usable fuel
products or feedstock for other processes.
Refining +argins
$he difference in value between the products produced by a refinery and the value of the crude oil used
to produce them. :efining margins will thus vary from refinery to refinery and depend on the price and
characteristics of the crude used.
Reformulated Gasoline
:eformulated gasoline is a cleaner-burning gasoline that reduces smog and other air pollution. 8ederal
law mandates the sale of reformulated gasoline in nine metropolitan areas with the worst o)one smogA
4altimore, *hicago, -artford, -ouston, Los Angeles, <ilwaukee, ,ew Jork, !hiladelphia, and 1an 'iego.
1ome other cities voluntarily require reformulated gasoline. About /3 to /@ percent of the gasoline sold in
the 0nited 1tates is reformulated. %t has the same effect on the environment as taking seven million cars
off the road, according to 6!A.
Reserves
An economically recoverable quantity of crude oil and gas that has not yet been produced from
reservoirs.
Reservoir
A porous, permeable sedimentary rock formation containing oil and=or natural gas enclosed or surrounded
by layers of less permeable or impervious rock.
Reservoir -haracteri'ation
$he continuing process of integrating and interpreting geological, geophysical, petrophysical, fluid and
performance data to form a unified, consistent description of a reservoir.
Residual /uel "il
Gery heavy fuel oils produced from the residue from the fractional distillation process rather than from the
distilled fractions.
Residue Gas
$he gas that remains after natural gas is processed and the liquids removed.
Resin
A solid or semi-solid mixture of organic substances of complex composition having no definite melting
point, as in plastic resins made from hydrocarbon feedstocks.
Re6AP
:educed Golatility Alkylation !rocess. An environmental innovation that cuts by 23 to H3 percent the
airborne hydrogen fluoride "-8# emissions in the event of an accidental release. !hillips and <obil ointly
developed the process in BHH..
Re*or&ing a Well
:estoring a wellEs productivity by cleaning out accumulations of sand, silt or other substances that clog
the production tubing.
Rig
A structure that contains all the necessary equipment for drilling.
Right,of,*ay
$he strip of land, usually @3 feet wide, that is the route of a pipeline and for which the company pays for
the legal right of passage.
Royalty
A share of the revenue from the sale of oil, gas or other natural resources paid to a landowner of grantor
of a lease or license.
Royalty "il
$he landownerEs share of net oil production, taken in the form of crude oil rather than in cash.
Ryton
!hillips( brand name for high-performance resins used in applications requiring resistance to heat or
abrasive chemicals, such as automotive components.
S
Satellite Platform
An offshore structure that depends on another platform for materials or services.
Secondary Recovery
6nhanced recovery of oil or gas from a reservoir beyond the oil or gas that can be recovered by normal
flowing and pumping operations. 1econdary recovery techniques involve maintaining or enhancing
reservoir pressure by inecting water, gas or other substances into the formation. 1ee also enhanced
recovery and tertiary recovery.
Seismic #0ploration
An exploration technique involving the use of seismic methods.
Seismic Survey
A technique for determining the detailed structure of the rocks underlying a particular area by passing
acoustic shock waves into the strata and detecting and measuring the reflected signals.
Semi,su)mersi)le Rig
A floating drilling installation that is supported by underwater pontoons; generally used for exploration
purposes only.
Service Well
A well that does not produce oil or gas but that is used to inect liquids or gas into the main producing
formation for such purposes as pressure maintenance, enhanced recovery, and storage or subsurface
disposal of salt water and other substances.
Sidetrac& Drilling
A remedial operation that results in the creation of a new section of well bore for the purpose of detouring
around &unk,& redrilling a lost hole or straightening crooked holes.
Solte0
!hillips( brand of drilling muds.
Sour -rude
*rude oil with a high sulfur content.
Sour Gas
,atural or associated gas with a high sulfur content.
Specialty -hemical
A chemical made in a relatively small quantity for a particular application.
Specific Gravity
A measure of the density of a material usually obtained by comparing it with water.
Spot +ar&et
$he trading in crude oil and petroleum products that occurs in international commerce, setting the prices
that are widely published. <ost crude moves from producer to refiner under long-term contracts, so only a
small fraction of the world(s petroleum is priced and traded on the spot market.
Spud
$o start the actual drilling of a well.
Steamflood 1echnology
5ne method of enhanced recovery in which steam is introduced into the reservoir through an inector well,
providing heat and pressure to push heavy oil toward the surrounding producing wells.
Straight run
A description applied to a product of crude oil created solely by distillation without further treatment e.g.,
straight run atmospheric residue "1:A:#.
Stripper Well
An oil well that produces a limited amount of oil, usually no more than B3 barrels a day.
Su)salt
:efers to rock formations lying beneath long, hori)ontal layers of salt. $hese rock formations may contain
hydrocarbons.
Su),sea Wellhead
A wellhead installed on the sea floor and controlled remotely from a platform, a floating production facility
or land.
Su)sidence
$he settling or sinking of a surface as a result of the loss of support from underlying soils or strata.
Su)structure
$he support form of an offshore installation on which the derrick, engines, quarters, helicopter pad,
cranes, etc. are installed.
Sulphur recovery
!rocess used to recover sulphur contained in acid gas streams "e.g., hydrogen sulphide# generated in
refining processes
Supply -hain +anagement
$he interlocking series of transactions necessary to convert crude oil into marketable products.
Suspended Discovery
An oil or gas field identified by a discovery well but not being produced or developed.
S*eet -rude
*rude oil with a low sulfur content.
S*eet Gas
A natural gas that contains little sulfur.
Syngas
A synthetic gas fuel.
Synthetic /uels
4urnable energy fluids made from coals or other hydrocarbon-containing substances.
Synthetic (atural Gas
+ases made from coals and other hydrocarbon-containing substances.
Synthetic "ils
Liquid fuels made from hydrocarbon- containing substances, including tar sands, plus animal and
vegetable oils that are used as lubricants.
TOP TOP
T
1ail Gas
A sulfur recovery unitEs residue gas; any processing unitEs gaseous exhaust that is treated as residue.
1an& /arm
A number of petroleum tanks that are operated together as a depot in oil storage and distribution
activities.
1APS
Abbreviation for $rans-Alaska !ipeline 1ystem, the line from !rudhoe 4ay on the ,orth 1lope to the
terminal port of Galde) on the south coast of Alaska. !hillips owns a B../ percent interest.
1ension,leg Platform
A floating offshore structure held in position by a number of tension-maintaining cables anchored to the
seabed. $he cables dampen wave action to keep the platform stationary.
1erminal
!lant and equipment designed to receive and process crude oil or gas to remove water and impurities.
1ertiary Recovery
$he third maor phase of recovery of oil or gas, the quantities recovered being over and beyond what
could be produced by primary and secondary recovery technology; generally involves using sophisticated
techniques such as heating the reservoir to reduce the viscosity of the oil.
1hree,dimensional Seismic
*ommonly shortened to C-' seismic. $hree-dimensional images created by bouncing sound waves off
underground rock formations; used by oil companies to determine the best places to drill for
hydrocarbons.
1hroughput
$he average amount of raw material that is processed in a given period by a facility, such as a natural gas
processing plant, an oil refinery or a petrochemical plant.
1oluene
A key petrochemical and an organic solvent; along with xylene, a key component in unleaded gasoline.
1on
/,333 pounds in the 0nited 1tates; in the 0nited Dingdom, a long ton is /,/.3 pounds; a metric ton equals
/,333 kilograms. %n most countries, oil and petroleum products are sold by weight instead of liquids
quantities, e.g. a ton of oil is the equivalent of 2.> to >.@ barrels of oil, depending on temperature, specific
gravity and other physical factors.
1opping refinery
A refinery consisting only of an atmospheric distillation unit.
1otal Depth $1D%
'escriptive of a well reaching the intended depth.
1rain
A series of units that together accomplish a complex process.
1u)ing
$he piping installed in wells for the production of oil and gas.
1ur)ine
A piece of equipment in which a shaft is steadily rotated by the impact of a current of steam, air, water or
other fluid directed from ets or no))les upon blades of a wheel.
1urnaround
A period of brisk activity at a refinery or plant when processing units, or portions of them, are shut down
for scheduled maintenance or the installation of new equipment and systems.
U
<nassociated Gas
,atural gas found in reservoirs that do not contain crude oil.
<niti'ation
?hen owners of oil and=or gas reserves pool their individual interests in return for an interest in the overall
unit, which is then operated by a single company on behalf of the group, thus increasing efficiency and
profitability.
<pstream
5il and natural gas exploration and production activities; plus gas gathering, processing and marketing
operations
V
6acuum distillation
'istillation under reduced pressure "less than atmospheric# which lowers the boilign points of the liquid
mixture being distilled. $his technique, involving a relatively lower temperature, prevents cracking or
decomposition of the very heavy hydrocarbon stocks which normally boil at very high temperatures.
6acuum gas oil $6G"%
$he top product of the vacuum distillation unit.
6acuum gas oil mild hydrocrac&er
A unit processing vacuum gas oil at moderate temperatures and pressures over a fixed catalyst bed in
which the vacuum gas oil is partially cracked in a hydrogen atmosphere in order to produce lighter
products "mainly naphtha, kerosene, distillates and oils#. At the same time sulphur, nitrogen and oxygen
are almost completely removed and olefins are saturated so that products are a mixture of essentially
pure paraffins, naphthenes and aromatics.
6alues
!hillips( values areA 1afety, trust, respect, diversity, opportunity for everyone, teamwork, open and honest
communications, creativity, ethical conduct, community involvement and environmental stewardship.
6-+
Ginyl chloride monomer. 8eedstock used in the manufacture of !G*.
6iscosity
A measure of the resistance that a fluid makes to motion or flow; it usually decreases as the temperature
increases.
6is)rea&er
A process unit whereby residue feedstock "e.g., vacuum gas oil and straight rum atmospheric residue# is
heated until it reaches a temperature at which it thermally cracks with a consequent reduction in viscosity
and pour point "producing gas, gasoline and gas oil#.
W
Water Injection
<ethod of enhanced recovery in which water is inected into an oil reservoir to increase pressure and
maintain or improve oil production.
Waterflooding
5ne method of secondary recovery in which water is inected into an oil reservoir to force additional oil out
of the reservoir rock and into the well bore of producing wells.
Well
A hole bored or drilled into the earth for the purpose of obtaining water, oil or gas, or other natural
resources.
Well !ore
$he hole in the rock made by the drill bit.
Well -ompletion
$he techniques of preparing a newly drilled well for production.
Well 5ac&et
A protective structure built around an offshore well to keep boats or floating debris from damaging the
wellhead.
Wellhead
$he control equipment fitted to the top of a well casing, incorporating outlets, valves, blowout preventers,
etc.
Wet Gas
,atural gas that contains large amounts of associated liquids.
Wildcat
An exploration well drilled in &unproven territory,& without direct evidence of the contents of the underlying
rock structure.
Wildcat Appraisal Well
An appraisal well drilled with minimum preliminary information about the underlying structure and
conditions; it usually follows a wildcat well that reported shows of oil or gas.
W1I
An abbreviation for ?est $exas %ntermediate. ?$% is a specific grade of crude oil that is a benchmark
commodity of the 0.1. oil industry.
Wor&ing Interest
$he operating interest in an oil and gas lease.
Wor&over
$he process whereby a completed production well is subsequently re-entered and any necessary
cleaning, repair and maintenance work done.
X
Kylene
An aromatic hydrocarbon that is the basis for many petrochemicals; along with toluene, a key ingredient
in unleaded gasoline.