Glossary F-K

The characteristics of a rock unit that reflect its origin and differentiate it from others.

Transfer of part of an oil or gas interest in consideration for an agreement by transferee(s) to meet certain expenditure that would otherwise have to be undertaken by licensee(s).

The commercial arrangement in which an incoming participant earns an interest in a permit by funding a proportion of the exploration costs.

A fracture or fracture zone in the Earth’s crust along which slippage of adjacent rocks has occurred at some time. A fault block is a compartment of a rock formation surrounded or partly surrounded by faults.

Gas used as a raw material in the production of LNG or electricity.

An area containing single or multiple oil or gas reservoirs.

The decision to proceed to fully fund a project or not.

Capital costs from acquisition, exploration, drilling and completion costs of 1P or 2P reserves.

Retrieving lost or stuck equipment from a hole.

The process whereby the nucleus of a particular heavy element splits into (generally) two nuclei of lighter elements, with the release of substantial amounts of energy. The most important fissionable materials are uranium-235 and plutonium-239, fission is caused by the absorption of neutrons.

Power generated from flash steam derived from water in geothermal reservoirs generally above say 220ºC which usually flows to the surface under its own pressure and boils or “flashes” into steam when it is subjected to a controlled pressure drop. The steam is used to drive a turbine-generator.

Flash Point Temperature is the lowest temperature at which a liquid releases sufficient vapour that can be ignited by an energy source.

A facility designed to float nearby oil and gas fields / platforms and take all of the oil or gas produced, process it, and store it until it can be offloaded onto a tanker or transported through a pipeline.

A term commonly used in contracts to describe an event or effect that cannot be reasonably controlled, an “act of God”. This term essentially frees one or both parties from liability of obligation when an extraordinary event or circumstance prevents one or both parties from fulfilling their contractual obligations.

The shutdown of a generating unit, transmission line or other facility, for emergency reasons or a condition in which the generating equipment is unavailable for load due to unanticipated breakdown.

Naturally occurring, non-renewable fuels, such as coal, natural gas and oil.

A structural feature seen on orthogonal seismic lines to dip away in all four possible directions, closure indicating that any hydrocarbons beneath a sealing stratum will be trapped in this feature.

The application of hydraulic pressure to the reservoir formation to create fractures to enhance recovery of oil or gas.

In an LNG FOB contract, the buyer lifts the LNG from the liquefaction plant and is responsible for transporting the LNG to the receiving terminal. The buyer is responsible for the shipping, either owning the LNG ships or chartering them from a shipowner.

The number of cycles per second of an alternating current. It is measured in Hertz.

Services which are required to maintain the system frequency between 49.1 Hertx and 50.1 Hertz. This maintains the generation/supply balance of the network.

The FEED phase is usually divided into three task areas when setting up a new unit:

1 - Provisional decision on investment by the owner or investor for the construction of a unit or plant;
2 - Production of quotations by an EPC contractor;
3 - Early phase of the Basic Engineering after the order has been awarded.

Fuel cells rely on the chemical interaction of natural gas and certain other metals, such as platinum, gold and other electrolytes to produce electricity. The only by product of a fuel cell’s operation is water.

Greenhouse gases that are discharged into the air as a result of the extraction, transport or production of fossil fuels. Fugitive emissions also include greenhouse gas emissions from landfill sites, sewage treatment works and some industrial processes.

A highly penetrating type of radiation which is produced during fission and fusion reactions. It is the highest energy light radiation.

A measurement of the natural emissions of gamma rays by a geological area. Different formations such as shale and sandstone emit different gamma rays.  Therefore a gamma ray log can be used to distinguish between different facies.

Australia’s State and Territory Governments commissioned the Review in April 2007 to examine the impacts of climate change on the Australian economy and recommend medium to long-term policies, to guide the Australian government in developing its policy responses to climate change.

Conventional gas, coal seam gas or coal mine methane.

A layer of natural gas above the oil in an oil reservoir.

Process whereby produced gas is re-injected into the reservoir after removal of condensate in order to maintain reservoir pressure and prevent condensate from condensing in the reservoir (retrograde condensation) and becoming difficult to recover.

An estimated measure of the amount of gas in a reservoir prior to production.

Gas is pumped into the reservoir in order to maintain pressure. In doing so, production is increased.

An administered market for the injection of gas into and the withdrawal of gas from, the transmission system and the balancing of gas flows in or through the transmission system.

A process that combines the carbon and hydrogen elements in natural gas molecules to make synthetic liquid petroleum products, such as diesel fuel and naphtha.

Removal of impurities from natural gas.

The boundary in a reservoir above which is predominately gas and below which is predominately water. This boundary is not necessarily sharp as gas and water are mildly miscible.

A well drilled and completed to primarily produce natural gas.

A type of rotating machine which converts mechanical energy into electrical energy.

A proprietary energy simulation system developed by Core Energy Group in conjunction with CSIRO.

Costs incurred in undertaking geological and geophysical studies, and analysis including, but not limited to, costs incurred for salaries, equipment, obtaining rights of access, and supplies for scouts, geologists, and geophysical crews.

A type of geothermal resource occurring in deep basins in which the fluid is under very high pressure.

The processes and technology that aims to store carbon dioxide in underground rock structures.

Hot water or steam extracted from geothermal reservoirs in the Earth’s crust. Water or steam extracted from geothermal reservoirs can be used for geothermal heat pumps, water heating, or electricity generation.

The rate of temperature increase in the Earth with increasing depth below the earth’s surface measured in units of °C/km.

Gippsland Basin / Gippsland Basin Joint Venture.

An increase in the near surface temperature of the Earth. Global warming has occurred in the distant past as the result of natural influences, but the term is today most often used to refer to the warming some scientists predict will occur as a result of increased anthropogenic (man made) emissions of greenhouse gases.

The term applied to that part of the mine from which the coal has been removed and the space more of less filled up with waste. Also, the loose waste in a mine. Also called goaf.

A geological term for a block which is lowered by movement of faults. Graben sit between high standing blocks called Horsts.

A method used to avoid production of formation sand. A steel screen is placed in the well bore and gravel is packed in the surrounding annulus.

A Greenfield development is one which occurs on a site previously un-used for the same or similar purpose. In contrast, a brownfield development is one which occurs on an existing project site.

The result of water vapor, carbon dioxide, and other atmospheric gases trapping radiant (infrared) energy, thereby keeping the earth’s surface warmer than it would otherwise be. Greenhouse gases within the lower levels of the atmosphere trap this radiation, which would otherwise escape into space, and subsequent re-radiation of some of this energy back to the Earth maintains higher surface temperatures than would occur if the gases were absent.

Those gases, such as water vapor, carbon dioxide, nitrous oxide, methane, hydro fluorocarbons (HFCs), per fluorocarbons (PFCs) and sulfur hexafluoride, that are transparent to solar (short-wave) radiation but opaque to long-wave (infrared) radiation, thus preventing long-wave radiant energy from leaving Earth’s atmosphere. 

A method for identifying and dealing with potential problems or issues in industrial processes.

Generally a non-binding document (can be binding) prepared in advance and as a basis for development of a final agreement. The HOA outlines the main commercial and other terms to be addressed in the definitive agreement.

A quantitative index reflecting the amount of energy needed to heat a home or business. The metric is usually expressed at a base temperature. If the temperature of a given day is hotter than the base temperature then the difference is calculated. This difference is summed for the period in question.

The amount of heat produced by the complete combustion of a given amount of fuel.

A financial instrument to manage the risk created by price volatility for a commodity on a spot market. Buyers and sellers of the commodity may enter into long or short-term contracts that set an agreed price for the commodity outside the spot market.

A unit of frequency.

A sharp rise in the floor of a seam.

A drilling technique in which the direction of drilling is not vertical. This technique is commonly used to try and improve production rates by intercepting a greater area of reservoir.

A geological term for a block which is elevated by movement of faults. Horsts sit between low standing blocks called Graben.

A geothermal resource created when impermeable, subsurface rock structures, typically granite rock 15,000 feet or more below the Earth’s surface, are heated by geothermal energy.

Different methods of producing electricity are combined to ensure a continuous power supply. For example gas or diesel fuel generators may be combined with solar cells or wind generators.

Chemical compounds which are primarily comprised of carbon and hydrogen such as petroleum and which have been derived from the burial of land or sea plants.

The normal or expected pressure at a given depth. Often described in terms of the change in pressure exerted by a column of water from sea level to another depth.

A method used to identify any leaks within the pipeline.

Pertaining to rock units which are formed by solidification from a molten or partly molten state.

The total effects of a circuit that oppose the flow of an AC current consisting of inductance, capacitance, and resistance. It can be quantified in the units of OHMS.

A corporate body responsible for the administration and operation of the Western Australian Wholesale Electricity Market in accordance with the Market Rules. Their aim is to provide and maintain an effective infrastructure for the efficient operation of the Wholesale Electricity Market in Western Australia.   

The independent economic regulator for NSW. IPART oversees regulation in the electricity, gas, water and transport industries and undertakes other tasks referred to it by the NSW Government.

That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade, and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques such as outcrops, trenches, pits, workings, and drill holes. The locations are too widely spaced or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

Industrial applications for natural gas are many and varied and include alumina refining, aluminium smelting, glass melting and fuel for industrial boilers.  Gas is also used as a feedstock for power generation for mining projects, and in the manufacturing of chemicals and other products.

That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a reasonable level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings, and drill holes which may be limited or of uncertain quality and reliability.

A well used to inject gas or water into the reservoir in order to maintain reservoir pressure in secondary recovery projects or for conservation purposes.

Electricity transmission circuit that connects the transmission networks of adjacent electricity grids. In the Australian context, HVDC transmission lines connecting the power grids of each region (particularly connecting state grids).

A scientific intergovernmental panel set up by the World Meteorological Organisation and by United Nations Environment Programme. It provides reports that assess the latest scientific, technical and socio-economic evidence on climate change. It is the world’s pre-eminent scientific advisory body on climate change.

Generation which is used to supply electricity between base and peak load – approximately 10% to 60% utilisation.

The discount rate that produces a net present value of zero for a set of cash inflows and cash outflows.

A positively or negatively charged atom or molecule.

A quality assurance standard issued by the International Organisation for Standards. Standard is titled; Quality systems - Model for quality assurance in design/development, production, installation and servicing.

A way of measuring the amount of gas adsorbed to coal as a function of its pressure at constant temperature.

A self-contained combination drilling rig and floating barge, fitted with long support legs that can be raised or lowered independently of each other. The jack up, as it is known informally, is towed onto location with its legs up and the barge section floating on the water. Upon arrival at the drilling location, the legs are jacked down onto the seafloor, preloaded to securely drive them into the sea bottom and then all legs are jacked further down.

Steel structure placed on the seabed with a deck supporting drilling and/or production facilities.

The Japan Customs-cleared Crude (JCC) is the average price of customs-cleared crude oil imports into Japan (formerly the average of the top twenty crude oils by volume) as reported in customs statistics; nicknamed the “Japanese Crude Cocktail”.
It is a commonly used index in long term LNG contracts in Japan, Korea and Taiwan, and replaced the Government Selling Price of crude oil as the standard index.
The data to calculate JCC is published by the Japanese government every month. This is the raw and crude oil import prices in yen per kilolitre, the dollar yen exchange rate and the total Japanese imports of all commodities for the month. JCC prices are available from the Petroleum Association of Japan.

A consortium of companies, usually with one member acting as Operator. Sharing costs, revenues, assets and liabilities in proportion to their equity interest in a field or license.

2004 Australasian Code for Reporting Identified Mineral Resources and ore Reserves. Australian mining exploration and production companies are bound to produce Resource and Reserves Statements using the JoRC Code in accordance with the listing Rules of the Australian Stock exchange.

A unit of energy equal to one watt per one second. 1 Gigajoule = One Million Joules = 278kWh.

The middle period of the Mesozoic era, spanning the time between 213 and 145 million years ago.

A solid organic material which yields petroleum-type hydrocarbons on heating and distillation.

Equal to 1000 watts of electricity.

One thousand watt hours.

That portion of a basin containing mature source rocks capable of generating  and expelling hydrocarbons.

A protocol adopted by the United Nations Framework Convention on Climate Change in Kyoto, Japan in 1997, committing Annex B countries (most OECD and some others) to reduce anthropogenic greenhouse gas emissions relative to 1990 levels. The Kyoto Protocol deals with carbon dioxide, nitrous oxide, methane, sulphur hexafluoride, hydrofluorocarbons and perfluorocarbons.