Definition - What does Theoretical Gallon mean?
Theoretical Gallon is the quantity of liquefiable hydrocarbons present in a given volume of gas which is generated from a gas plant, as determined by the analysis of the gas. Theoretical Gallon is calculated from the volume of gas generated, the GPM factor (Gas per Mcf) of the gas and the recovery factor of the gas plant.
Petropedia explains Theoretical Gallon
Theoretical Gallon is calculated as the product of the Volume of Gas generated with the GPM factor of the gas and the gas plant recovery factor. The formula is written as:
Theoretical Gallon = (Volume of Gas Generated) x (Gas per Mcf fatcor) x (Gas recovery factor)
Gas recovery factor is the amount of gas that can actually be recovered from the gas reservoir where it is already found that the gas is in place (GIP), i.e., it is estimated that the economical quantities of natural gas is available in the reservoir.