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ECONOMIC REPORT 2015
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GVA
gross value added
HH
Henry Hub (the principal trading
point for gas in the USA)
HMRC
Her Majesty’s Revenue and
Customs (sometimes known as ‘the
Exchequer’)
HMT
Her Majesty’s Treasury (of which
HMRC is part)
HPHT
high pressure, high temperature
(of reservoirs)
IEA
International Energy Agency
(part of the OECD)
Indirect
employment as a result of supply
employment
chain effects caused by oil and gas
sector activity. For these
companies, extraction of oil and
gas and associated services will be
one part of a wider business
Induced
employment supported by the
employment
redistribution of income from the
oil and gas sector
IOGP
International Association of Oil &
Gas Producers
LNG
liquefied natural gas
LTI
lost time incident
LTO
light, tight oil
M&A
mergers and acquisitions
mb/d
million barrels per day (of oil)
mboepd
million barrels of oil equivalent
per day
mcm/d
million cubic metres per day (of gas)
mechanical
description of a specific sidetrack
sidetrack
that is made to bypass an
obstruction while the surface and
target locations remain the same
MER UK
maximising economic recovery from
the UKCS (ref. the Wood Review)
MNSH
Map of Northern Sea High
mtoe
million tonnes of oil equivalent
mt/y
million tonnes per year
MSR
Market Stability Reserve
NBP
National Balancing Point
(fictional location in Britain where
the NTS is notionally in balance
and at which the trading of gas
takes place)
NGL
natural gas liquid (for example
butane, propane)
NIC
National Insurance Contributions
NPV
Net Present Value
NNS
northern North Sea
NTS
National Transmission System
(high pressure gas transmission
system in Britain operated by
National Grid – the ‘motorway’
network for gas)
OECD
Organisation of Economic
Co-operation and Development
(based in Paris)
OGA
Oil and Gas Authority
ONS
Office for National Statistics
OPEC
Organisation of Petroleum
Exporting Countries
opex
operating expenditure
P&A
plugging and abandonment
PAR
potential additional resources
PAYE
Pay As You Earn
PE
production efficiency, a measure of
a field’s performance by comparing
actual production as a percentage
of the maximum production
potential, after allowing for the
natural decline of a reservoir, the
reliability of infrastructure, the
effects of shutdowns and major
maintenance, and the like
P/I
Profitability Index
PRT
Petroleum Revenue Tax
PUQ
production, utilities and quarters
p/th
pence per therm (for gas)
RFCT
Ring Fence Corporation Tax
(as applied to upstream oil and gas
production in UK)
SC
Supplementary Charge (a corporate
tax applied to upstream oil and gas
production in addition to RFCT)
sidetrack
description of a well that is started
from the bore of an existing well,
but is then deviated to create a
new well
SME
small to medium (sized) enterprise