C - Oil & Gas Terms

Casing

Pipe cemented in the well to seal off formation fluids and to keep the hole from caving in.


Casinghead Gas

The gas that is produced along with the crude oil.


Check Meter

An additional meter installed at the well site in order to “check” the main meter.


Christmas Tree, Wellhead

The system of pipes, valves, gauges and related equipment located on the well at ground level which controls the flow of gas and other petroleum products produced from the well.


CO2

Abbreviation for carbon dioxide.


Commercial Well (aka Producing Well)

A well that produces oil and/or gas in sufficient quantities such that proceeds from the sale of production exceeds directly related costs.


Commodities

Widely produced products whose quality is indistinguishable regardless of where it comes from. Examples include agricultural products, energy products, metals, currencies etc.


Commodity Prices

Crude oil and natural gas are commodities, thus are priced on a commodity exchange, the New York Mercantile Exchange (NYMEX).


Completion

This is the process which takes place immediately after the drilling operation is complete. This involves the setting of casing, tubing, packers, possibly down hole pumps, possibly hydraulic fracturing, possibly installing sand screens etc.


Compression

Often natural gas from the wellhead must be compressed to a higher pressure in order to increase its pressure enough in order to get it into pipelines for further transportation to market.


Condensate, Lease Condensate

A low-density mixture of hydrocarbon liquids that are often present as gaseous components in the raw production stream from an oil or gas well.


Contiguous Tract

A tract of land of which there is a continuous and unbroken perimeter.


Cost Depletion

One of the two calculation methodologies allowed by the IRS for calculating the depletion allowance on oil and gas royalty revenue. The other methodology is called percentage depletion.


Crude Oil

Raw, liquid petroleum as it comes out of the ground as distinguished from refined oils manufactured from it.


Cubic Foot of Gas, Standard Cubic Foot of Gas

As a unit of volume, 1,728 cubic inches. As applied to water, 7.48 gallons. As applied to natural gas, the volume of gas which, when saturated with water vapor at 60ºF and at a pressure of 30 inches of mercury occupies one cubic foot of volume.


Curative

The process that clears a title or straightens out any defects in the title chain.