Barrel Of Oil Equivalent (BOE)

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DEFINITION of 'Barrel Of Oil Equivalent (BOE)'

A term used to summarize the amount of energy that is equivalent to the amount of energy found in a barrel of crude oil. There are 42 gallons (approximately 159 liters) in one barrel of oil, which will contain approximately 5.8 million British Thermal Units (MBtus) or 1,700 kilowatt hours (kWh).

Also known as crude oil equivalent (COE).

BREAKING DOWN 'Barrel Of Oil Equivalent (BOE)'

This term is used frequently when exploration and production companies are reporting the amount of reserves they may have. By giving a BOE figure, analysts, investors and management can assess the total amount of energy the firm has access to, without breaking it down into barrel's of crude oil, or the cubic feet of natural gas.

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RELATED FAQS
  1. How does an oil and gas company measure and state its production?

    Measuring Oil and Gas Production Oil and gas exploration and production companies, or E&P companies, use three basic ... Read Full Answer >>
  2. What does a barrel of oil equivalent (BOE) refer to in the oil and gas sector?

    A barrel of oil equivalent, or BOE, is a term used in the oil and gas sector to describe the amount of energy found in one ... Read Full Answer >>
  3. What economic indicators are especially important to oil traders?

    Economic indicators are used by traders and investors in an attempt to understand the underlying fundamentals of the market. ... Read Full Answer >>
  4. How much oil must be produced to maintain inventory levels in the United States?

    Domestic energy investors should track the reserve inventory of crude oil for the United States, which is released in a weekly ... Read Full Answer >>
  5. To what extent is the oil and gas sector dominated by a few major companies?

    Oil and gas are two expansive and highly diverse product lines, with active competition domestically and internationally. ... Read Full Answer >>
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    The primary drivers of share prices in the oil and gas sector are energy prices and economic growth. Stock prices in the ... Read Full Answer >>

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