Conversion factors depend on the specific gravity of the crude oil. As a general guide:
• 1 tonne of crude = 7.5 barrels
• 1 barrel of crude = 5,604 cubic feet of natural gas, 0.996 barrels of gasoil or 1.446 barrels of liquefied petroleum gas
• 1 US barrel = 42 US gallons = 158.978 litres
• 1 million barrels of crude a day = 50 million tonnes a year
• 1 megajoule = 947.81 British thermal units = 238.85 Kcal
• 1 cubic foot = 0.0283 cubic metres
* see also cubic foot
Commodity trading and risk management is a subject that is necessarily complicated, and is becoming more so. The Energy Risk Glossary seeks to disentangle and clarify the jargon by providing definitions of commonly used energy and commodity market terms.
These include definitions related to a variety of underlying energy products, as well as technical terms about the many instruments and benchmarks used by energy market participants.
Many of the most recent terms to have been added to our glossary stem from the actions of regulators since the 2008 global financial crisis. The onset of rules, such as the US Dodd-Frank Act and European Market Infrastructure Regulation, has markedly increased the cost and complexity associated with commodity trading. Perhaps they have also increased the need for a handy reference guide such as this.
The glossary is extensively cross-referenced, making for easy and thorough searches. We hope you find the latest edition of the Energy Risk Glossary to be a useful resource.
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