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11. Glossary
bbl
Barrel (of oil) (one barrel = 0.16 m
3
and 7.55 barrels = one tonne)
bcm
Billion cubic metres (one metre
3
= 35.3 cubic feet)
BEIS
Department for Business, Energy and Industrial Strategy
BFOE
A blend of crude from the cargoes of Brent, Forties, Oseberg and Ekofisk
boe
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
boepd
Barrel of Oil Equivalent per day
Brownfield
An oil or gas field already in production
Brent
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
BTU
British Thermal Unit (of energy)
Capital allowances
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
Capital employed
The value of fixed assets employed by the industry
Carbon leakage
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
Carbon price
The amount that must be paid for the right to emit one tonne of CO
2
into the
atmosphere
CCGT
Combined Cycle Gas Turbine
CDA
Common Data Access Limited (a subsidiary of Oil & Gas UK)
CNS
Central North Sea
Concession tax regime
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
Contango refers to the structure of prices where the price for prompt delivery is
below the price for forward delivery
Core offshore worker
Workers who spend over 100 nights a year offshore
Cost plus contracts
A contracting model where the client pays the contractor an agreed mark-up based
on the cost of the work
CO
2
carbon dioxide (one of the six greenhouse gases under the Kyoto protocol)
CT
Corporation Taxes (see also RFCT)
Direct employment
Those employed by companies operating in the extraction of oil and gas and
associated services
E&A
Exploration and appraisal (drilling)
EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortisation
Enhanced loss flexibilities
Enhanced ability to carry back or carry forward losses, especially in regard to
decommissioning losses, to generate a repayment of tax.
EUA
EU Allowances
EU ETS
EU Emissions Trading System
Gearing
A financial ratio that compares borrowed funds to the equity in business defined as:
long-term liabilities/(equity + long-term liabilities)