Barrel Of Oil Equivalent (BOE)


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.

  1. Basis Differential

    The difference between the Henry Hub spot price and the corresponding ...
  2. Price Per Flowing Barrel

    A metric used to determine the value of a oil and gas company. ...
  3. Royalty Interest

    In the oil and gas industry this refers to ownership of a portion ...
  4. Billions Of Cubic Feet Equivalent ...

    A natural gas industry term typically used to measure the amount ...
  5. West Texas Intermediate - WTI

    Light, sweet crude oil commonly referred to as "oil" in the Western ...
  6. Barrels Per Day - B/D

    A measure of oil output, represented by the number of barrels ...
Related Articles
  1. Stock Analysis

    The 6 Biggest Russian Energy Companies

    Learn about the top energy companies in Russia, a country that holds some of the largest reserves of oil, natural gas and coal in the world.
  2. Stock Analysis

    The 5 Biggest Russian Oil Companies

    Discover the top Russian oil companies by production volume and find out more about their domestic and international business operations.
  3. Stock Analysis

    The 7 Biggest Canadian Natural Gas Companies

    Read about the seven biggest Canadian natural gas companies as measured by production volume and learn a little more about their recent performance.
  4. Stock Analysis

    The 7 Biggest Canadian Energy Companies

    Read about the largest seven Canadian energy companies as measured by market capitalization, and learn more about their energy operations.
  5. Home & Auto

    Getting A Grip On The Cost Of Gas

    Feeling overwhelmed by rising oil prices? We offer some tips that will save you money.
  6. Active Trading

    Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  7. Active Trading

    Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.
  8. Forex Education

    Commodity Prices And Currency Movements

    Find out which currencies are most affected by fluctuations in gold and oil prices, and improve your trading.
  9. Budgeting

    Understanding Oil Industry Terminology

    The drillers are just one aspect of the oil & gas industry, and by knowing some details of their role, you'll be better suited to make investment decisions.
  10. Active Trading

    Unearth Profits In Oil Exploration And Production

    Drill down into financial statements to tap into the right companies and let returns flow.
  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 >>
  6. What factors are the primary drivers of share prices in the oil and gas sector?

    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 >>

You May Also Like

Hot Definitions
  1. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  2. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  3. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  4. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  5. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  6. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!