Oil and gas measurement is vital for the industry to ensure accurate sales and compliance with regulations. Measurements are taken before oil and gas leave the production site.
Measuring Oil
Crude oil refers to unrefined oil extracted directly from an oil well. This raw mixture contains hydrocarbon fluids, water, and various impurities, which is why it’s termed “crude.” In its unprocessed state, crude oil is primarily traded as a commodity.
Crude oil is measured using three primary units:
Barrels (BBL)
- A barrel holds 42 gallons.
- This unit is commonly used on royalty statements.
SI Units
- In countries using the metric system, oil volumes are measured in metric tonnes (mt).