Definition - What does Commercial Rate mean?
Commercial Rate is the rate of production from a well that is commercially viable. It is the production which brings net income and is worth developing or the price at which production is done for commercial purposes. The production and consumption are monitored daily to keep the commercial aspect alive. We can even get the daily rates of production for oil and gas wells.
Petropedia explains Commercial Rate
As per 2014 reports, only four countries commercially produced shale gas and tight oil. The commercial rate of production is the rate or price at which the product is sold to earn profit. In certain countries there is an allowable rate of production. This allowable rate of production is put in place to control the amount of gas produced from a well in 24 hours. The commercial rate of production is related to the commercial angle (price, profit or net revenue) and monitoring of the production to attain the required gain.
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