Initial Production

Dictionary Says

Definition of 'Initial Production '

The measurement of an oil well's production at the outset. Initial production will be fairly small, but the well will eventually increase to its peak capacity; however, over time oil production will decline. Eventually the well will fail or output will be so low as to make the enterprise unprofitable. Initial production is measured in B/D (barrels of oil per day) or BOE/D (barrels of oil equivalent per day).
Investopedia Says

Investopedia explains 'Initial Production '

The first known oil well was hand-dug in China around the year 350. The first modern oil well was drilled in Asia (in modern-day Azerbaijan) by the Russian engineer F.N. Semyenov. Oil was discovered in the U.S. in 1850 in California and the first North American oil well was drilled in Ontario, Canada in 1858. The first American oil well was drilled a year later. Oil wells in Europe were developed in Poland in 1854. The world's largest oil field is in Saudi Arabia and covers more than 3,300 square miles. 

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Crude Oil

    A naturally ...
  2. Oil Reserves

    An estimate of ...
  3. Peak Oil

    A hypothetical ...
  4. Oil Sands

    Sand and rock ...
  5. Sour Crude

    The name given ...
  6. Barrel Of Oil Equivalent (BOE)

    A term used to ...
  7. Sweet Crude

    A type of oil ...
  8. Hubbert Peak Theory

    Similar to the ...
  9. Production Volume Variance

    The amount of ...
  10. Boom

    A period of time ...

Articles Of Interest

  1. 9 Ways To Save On Winter Bills

    Winter heating bills can leave your finances in the cold. These tips will help warm things up.
  2. Commodity Prices And Currency Movements

    Find out which currencies are most affected by fluctuations in gold and oil prices, and improve your trading.
  3. Getting A Grip On The Cost Of Gas

    Feeling overwhelmed by rising oil prices? We offer some tips that will save you money.
  4. What Determines Oil Prices?

    Changes in the price of oil aren't arbitrary. Read on to find out what moves them and why.
  5. What Determines Gas Prices?

    Gas prices are influenced by more than supply and demand. Find out what determines the price you pay at the pump.
  6. A Guide To Investing In Oil Markets

    Find out how to take advantage of this market without having to open a futures account.
  7. Investing In Oil And Gas UITs

    Unit investment trusts provide direct exposure to the energy sector, fueling better returns.
  8. Oil As An Asset: Hotelling's Theory On Price

    Not sure where oil prices are headed? This theory provides some insight.
  9. How Does Crude Oil Affect Gas Prices?

    Find out how this commodity's fluctuating price affects more than just how much you pay at the pump.
  10. Meet OPEC, Manager Of Oil Wealth

    This organization's decisions can influence oil prices, but there is a limit to its power.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center