Glossary of Industry Terms
Refined Products
The marketable processed output of a petroleum refinery. Examples include naphtha, gasoline, kerosene, heating oil, diesel, lubricant base oils and asphalt.
Refining Margin
Similar to gross margin, refining margin represents the composite value of all products produced by the refinery minus the cost of crude. To get the net margin, subtract the overhead and manufacturing costs from the gross margin.
Relief Valve (Conventional Pressure Relief Valve)
A spring loaded pressure relief valve whose performance characteristics are directly affected by changes in the back pressure on the valve.
Relieving capacity (Rated)
That portion of the measured relieving capacity permitted by the applicable code or regulation to be used as a basis for the application of a pressure relief device.
Relieving Conditions
The term relieving conditions is used to indicate the inlet pressure and temperature of a pressure relief device at a specific overpressure. The relieving pressure is equal to the valve set pressure (or rupture disk burst pressure) plus the overpressure.
Reserves
An economically recoverable quantity of crude oil and gas that has not yet been produced from reservoirs.
Reserves (Probable)
Probable Reserves are those reserves which are not yet proven but which, on all the available evidence and taking into account technical and economic factors, have a better than 50% chance of being produced.
Reserves (Proven)
Proven Reserves are those reserves which geological, geophysical and engineering data indicate to be in place and recoverable, under good industry practices, with a high degree of certainty. Proven reserves are those reserves which, on all the available e
Reservoir
A porous, permeable, sedimentary rock formation containing oil and/or natural gas enclosed or surrounded by layers of less permeable or impervious rock.
Royalty
Whenever oil or gas production begins, the landowner is entitled to part of the total production. A royalty is agreed upon as a percentage of the lease, minus what was reasonably used in the Lessee's production costs. The royalty is paid by the Lessee to the owner of the mineral rights, the Lessor in the Lease. It is based on a percentage of the gross production from the property and is free and clear of all costs, except for taxes.
Traditionally, royalty can be 1/8 of production or 12.8 perc
RR (Royalty or Override)
Royalty or OverRiding Royalty - PLS Symbol
Rupture Disk
A nonreclosing differential pressure relief device actuated by inlet static pressure and designed to function by bursting the pressure containing rupture disk. A rupture disk device includes a rupture disk and a rupture disk holder.
