Unit of Measurement
Definition - What does Unit of Measurement mean?
Unit of Measurement is the unit in which crude oil, refined petroleum products, natural gas, liquefied natural gas, and any liquids or condensates are measured and traded between two or more entities. Crude oil and refined products are measured in barrels or gallons or liters whereas natural gas is measured in British Thermal Units (BTU’s). In Canada and the United States an oil barrel (bbl) is measured at 42 US gallons.
Petropedia explains Unit of Measurement
A Barrel is a measuring unit of the volume of oil in liters. Each barrel of oil in the United States or Canada contains 159 liters, which are equivalent to 42 US gallons. Oil manufacturing organizations enlisted in the American stock exchange use this term to represent their total oil production range, which is usually in terms of volume and identified as either Mbbl or MMbbl. Mbbl stands for one thousand barrels while MMbbl stands for one million barrels. The organizations identify their production range with barrels of oil per day on a regular basis.
During the measurement of Natural Gas, the units of measurement are British Thermal Units or (BTU's). 1 BTU is equal to 1055 joules, which means that 1055 joules are needed in order to cool off or heat 1 pound of water by 1°Fahrenheit. British thermal unit is mostly used in the United States and United Kingdom. A BTU can be converted to other forms of energy, for example:
- 1 BTU = 252-253 Calories
- 1 BTU = 1.054-1.060 kJ
- 1 BTU = 0.293071 Watt hours
- 1 BTU = 0.25 Kilocalories
- 1 Million BTU = 1.054615 Gigajoules
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