Glossary

An individual who meets financial criteria allowing them to invest in private offerings.

Injecting acid into the wellbore to clean or open rock pores for better flow.

The international benchmark price for oil, primarily used in Europe and Asia.

A request for additional funds from investors during a project.

The operator’s share of profits earned after investors receive their preferred returns.

Steel pipe placed in a drilled well to prevent collapse and protect groundwater.

The process of preparing a well for production after drilling is finished.

Following legal and safety rules set by state and federal agencies.

Unrefined petroleum that’s pumped directly from the ground.

A chart showing how a well’s production naturally decreases over time.

A tax deduction that accounts for the declining value of the oil and gas produced.

The refining, distribution, and retailing stage — where crude oil becomes products like gasoline.

A type of company that searches for, drills, and produces oil and gas.

A legal agreement allowing limited use of land for a specific purpose.

The plan for returning investor capital and profits through production or sale.

A layer of rock that contains oil or gas.

A technique where water, sand, and additives are pumped into rock to create pathways for oil to flow.

The pricing point for U.S. natural gas, located in Louisiana.

Non-recoverable expenses such as labor, fuel, and supplies used in drilling — often tax deductible.

A temporary partnership between two or more parties to complete a specific project.

A contract that gives a company the right to explore and produce oil from land owned by someone else.

Required signs identifying the operator, lease number, and emergency contact at a production site.

A sedimentary rock that can store oil in its natural fractures and pores.

A business structure that offers flexibility and protects owners from personal liability.

The daily costs of maintaining and producing from a well.

A partnership where general partners manage the business and limited partners provide capital.

The stage that involves transporting, storing, and processing oil and gas after it’s produced.

Ownership of the underground resources (like oil or gas) beneath a piece of land.

A fossil fuel made mostly of methane, used for heating, electricity, and manufacturing.

The percentage of production income an investor receives after royalties and expenses.

Using pressurized nitrogen instead of water to fracture shallow formations.

Organization of the Petroleum Exporting Countries — a group of major oil-producing nations that coordinate production levels to influence prices.

OPEC plus additional partner countries like Russia that also coordinate production decisions.

The company responsible for drilling, managing, and reporting on an oil project.

Official authorization required before drilling or producing oil.

A system of pipes that transports oil or gas from production sites to processing or storage facilities.

The amount of space in rock that can hold oil or gas.

The minimum profit investors receive before operators share in the gains.

A legal document that outlines details, risks, and disclosures for a private investment.

A well that has been drilled and is currently generating oil or gas.

A report showing the amount of oil or gas produced during a certain time period.

Oil and gas that is known to exist but has not yet been drilled or developed.

A U.S. SEC rule that allows companies to raise capital from accredited investors under specific conditions.

The process of repairing or restoring a well to improve production.

A measurement of how strongly rock resists electric current, used to identify hydrocarbons.

Making technical adjustments to an existing well to access new zones or increase flow.

Permission granted to install pipelines, power lines, or roads across land.

A share of production revenue paid to the mineral rights owner without having to cover costs.

A porous rock type that allows oil to flow easily.

Sound-wave imaging used to map underground rock structures and identify potential oil zones.

A fine-grained rock that holds oil and gas in small pores, often developed using fracking.

The tanks, pumps, and pipes used on the surface to handle and transport oil and gas.

Physical items like equipment and pipes that are depreciated over time.

The state agency that regulates oil and gas exploration, production, and safety in Texas.

A drilling project that is fully designed and ready to execute once funded.

The part of the oil industry focused on exploring for and producing oil and gas.

Data collected from instruments lowered into the well to identify rock types and fluids.

A high-risk exploration well drilled in an unproven area.

An ownership share in a well that includes both costs and profits.

The U.S. benchmark price for crude oil, used to measure and trade oil value.