|  Definitions, Sources and Explanatory Notes |
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|  Category:   | Natural Gas Exploration & Reserves                 |
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|  Topic:      | Federal Offshore Gulf of Mexico Deepwater Reserves |
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|   Definitions |  |
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| Key Terms                               | Definition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| Crude Oil                               | A mixture of hydrocarbons that exists in liquid phase in natural underground reservoirs and remains liquid at atmospheric pressure after passing through surface separating facilities. Depending upon the characteristics of the crude stream, it may also include: Small amounts of hydrocarbons that exist in gaseous phase in natural underground reservoirs but are liquid at atmospheric pressure after being recovered from oil well (casinghead) gas in lease separators and are subsequently commingled with the crude stream without being separately measured. Lease condensate recovered as a liquid from natural gas wells in lease or field separation facilities and later mixed into the crude stream is also included; Small amounts of nonhydrocarbons produced with the oil, such as sulfur and various metals; Drip gases, and liquid hydrocarbons produced from tar sands, gilsonite, and oil shale. Liquids produced at natural gas processing plants are excluded. Crude oil is refined to produce awide array of petroleum products, including heating oils; gasoline, diesel and jet fuels; lubricants; asphalt; ethane, propane, and butane; and many other products used for their energy or chemical content.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Dry Natural Gas                         | Natural gas which remains after: 1) theliquefiable hydrocarbon portion has been removed from thegas stream (i.e., gas after lease, field, and/or plant separation);and 2) any volumes of nonhydrocarbon gases have beenremoved where they occur in sufficient quantity to render thegas unmarketable. (Note: Dry natural gas is also known asconsumer-grade natural gas. The parameters for measurementare cubic feet at 60 degrees Fahrenheit and 14.73 poundsper square inch absolute.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Federal Offshore                        | Located in Federaldomain, seaward of the coastline.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Lease Condensate                        | A mixture consisting primarily of pentanes and heavier hydrocarbons which is recovered as a liquid from natural gas in lease separation facilities. This category excludes natural gas plant liquids, such as butane and propane, which are recovered at downstream natural gas processing plants or facilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Natural Gas Liquids                     | Those hydrocarbons in natural gas which are separated from the gas through the processesof absorption, condensation, adsorption, or other methods in gas processing or cyclingplants. Generally such liquids consist of propane and heavier hydrocarbons and are commonly referred to as condensate, natural gasoline, or liquefied petroleum gases.Where hydrocarbon components lighter than propane are recovered as liquids, thesecomponents are included with natural gas liquids.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Natural Gas, Wet After Lease Separation | The volume of natural gas remaining after removal of lease condensate in lease and/orfield separation facilities, if any, and after exclusion of nonhydrocarbon gases wherethey occur in sufficient quantity to render the gas unmarketable.  Natural gas liquidsmay be recovered from volume of natural gas, wet after lease separation, at natural gasprocessing plants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Proved Reserves                         | Proved reserves of natural gas as of December 31 of the report year are the estimatedquantities which analysis of geological and engineering data demonstrate with reasonablecertainty to be recoverable in future years from known reservoirs under existingeconomic and operating conditions.Reservoirs are considered proved if economic producibility is supported by actual productionor conclusive formation test (drill stem or wire line), or if economic producibility issupported by core analyses and/or electric or other log interpretations.The area of a gas reservoir considered proved includes: (1) that portion delineated bydrilling and defined by gas -- oil and/or gas -- water contacts, if any; and (2) theimmediately adjoining portions not yet drilled, but which can be reasonably judged aseconomically productive on the basis of available geological and engineering data. In theabsence of information on fluid contacts, the lowest known structural occurrence of hydrocarbons is considered to be the lower proved limit of the reservoir.Volumes of natural gas placed in underground storage are not to be considered proved reserves.For natural gas, wet after lease seperation, an appropriate reduction in the reservoir gasvolume has been made to cover the removal of the liquefiable portions of the gas in lease and/orfield separation facilities and the exclusion of nonhydrocarbon gases where they occur insufficient quantity to reder the gas unmarketable.For dry natural gas, an appropriate reduction in the gas volume has been made to cover theremoval of the liquefiable portions of the gas in lease and/or field separation facilities,and in natural gas processing plants, and the exclusion of nonhydrocarbon gases where theyoccur in sufficient quantity to render the gas unmarketable.It is not necessary that production, gathering, or transportation facilities be installed oroperative for a reservoir to be considered proved. It is to be assumed that compressionwill be initiated if and when economically justified. |
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| For definitions of related energy terms, refer to the   EIA Energy Glossary. |
|  	Sources |
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|  | Form EIA-23L, "Annual Report of Domestic Oil and Gas Reserves (County Level Version)".    Natural Gas Survey Forms and Instructions
 	Explanatory Notes
  Related data and background information are published in the      U.S. Crude Oil and Natural Gas Proved Reserves Annual Report. |