Oil and Gas Glossary: O Terms
7 oil and gas terms start with the letter O. Each one is defined below, in alphabetical order.
Oil & Gas “Field”
Area of oil and gas production with at least one common reservoir for the entire area.
Oil & Gas Mineral Lease
The agreement outlining the basic terms of developing lands or minerals such as royalty to be paid, length of time, description of lands.
Oil Gravity
A measure of an oil’s density. Gravity is a widely used indicator of a crude oil’s worth. The less dense oils are of greater value.
Oil Well
Any well that produces one barrel or more crude petroleum oil to each 100,000 cubic feet of natural gas.
Operating Expense
The costs of operating a well to produce oil & gas.
Operator
A company or individual, acting for himself or as an agent for others who has primary responsibility for maintaining well operations and complying with state rules and regulations.
Overriding Royalty Interest, ORRI
A royalty in excess of the royalty provided in the Oil & Gas Lease. Usually, an override is added during an intervening assignment.