Economic Report 2016 - Oil & Gas UK

11. Glossary

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bbl

Barrel (of oil) (one barrel = 0.16 m 3 and 7.55 barrels = one tonne) Billion cubic metres (one metre 3 = 35.3 cubic feet) Department for Business, Energy and Industrial Strategy

2

bcm BEIS

BFOE

A blend of crude from the cargoes of Brent, Forties, Oseberg and Ekofisk Barrel of Oil Equivalent – this includes oil, gas and other hydrocarbons and equates all of these with oil, in energy equivalent terms, so that a common measure can be made of any of them

3

boe

boepd

Barrel of Oil Equivalent per day

Brownfield

An oil or gas field already in production

4

As applied to trading, the standard quality of oil in Europe and elsewhere comprising a blend of four North Sea crudes from the Brent, Ekofisk, Forties and Oseberg fields

Brent

BTU

British Thermal Unit (of energy)

A term used to describe the availability of an immediate deduction against Ring Fence Corporation Tax and Supplementary Charge payments for almost all investment expenditure incurred on the UKCS A situation in which companies move their production abroad to countries with less ambitious climate measures, which can lead to a rise in global greenhouse gas emissions The value of fixed assets employed by the industry

5

Capital allowances

Capital employed

6

Carbon leakage

The amount that must be paid for the right to emit one tonne of CO 2

into the

Carbon price

atmosphere

7

CCGT

Combined Cycle Gas Turbine

CDA CNS

Common Data Access Limited (a subsidiary of Oil & Gas UK)

Central North Sea

A regime in which a company receives a licence to explore, develop, produce and sell hydrocarbons and the host government is compensated by receipt of tax payments Contango refers to the structure of prices where the price for prompt delivery is below the price for forward delivery A contracting model where the client pays the contractor an agreed mark-up based on the cost of the work carbon dioxide (one of the six greenhouse gases under the Kyoto protocol) Workers who spend over 100 nights a year offshore

8

Concession tax regime

Contango

Core offshore worker

9

Cost plus contracts

CO

2

CT

Corporation Taxes (see also RFCT)

10

Those employed by companies operating in the extraction of oil and gas and associated services

Direct employment

E&A

Exploration and appraisal (drilling)

EBITDA

Earnings Before Interest, Taxes, Depreciation and Amortisation

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Enhanced ability to carry back or carry forward losses, especially in regard to decommissioning losses, to generate a repayment of tax.

Enhanced loss flexibilities

EUA

EU Allowances

EU ETS

EU Emissions Trading System

A financial ratio that compares borrowed funds to the equity in business defined as: long-term liabilities/(equity + long-term liabilities)

Gearing

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