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Natural Gas Equivalent

What is 'Natural Gas Equivalent'

The amount of energy used by the burning of natural gas versus that of crude oil. The term natural gas equivalent is used in the oil and gas industry and represents a comparison between natural gas and crude oil. 6,000 cubic feet of natural gas is equivalent to one barrel of oil. "Billions of cubic feet equivalent" (BCFE), a term commonly found in the annual reports of natural gas and oil companies, is used to measure the amount of natural gas that is being pumped and delivered over an extended period of time, or that is untapped in reserves. BCFE is used to quantify the energy that is being produced, or that could potentially be produced, by an oil company's reserves. Investors can compare the production and/or reserves of oil and gas companies by looking at the natural gas equivalent figures.

Explaining 'Natural Gas Equivalent'

Natural gas is a naturally occurring mixture of hydrocarbon gases from underground sources. These gases are composed mostly of methane (greater than 85% in certain instances), ethane, propane, butane, pentane and impurities such as carbon dioxide, hydrogen sulfide, helium and nitrogen. Natural gas liquids (NGLs) are natural gas components that are liquid at surface conditions. This includes ethane, propane, butane, pentane and condensates; it does not include methane, which remains gaseous at surface conditions.


Further Reading


Biogas plants in Denmark: technological and economic developments
www.sciencedirect.com [PDF]
… British Thermal Units (BTUs), the natural gas found in the Marcellus could be equivalent to the … 7 Figure 5: Quarterly production of natural gas equivalents … In 2008 alone, natural gas companies paid over $1.8 billion in these lease and bonus payments …

The impact of removing tax preferences for US oil and natural gas production: measuring tax subsidies by an equivalent price impact approachThe impact of removing tax preferences for US oil and natural gas production: measuring tax subsidies by an equivalent price impact approach
www.journals.uchicago.edu [PDF]
… British Thermal Units (BTUs), the natural gas found in the Marcellus could be equivalent to the … 7 Figure 5: Quarterly production of natural gas equivalents … In 2008 alone, natural gas companies paid over $1.8 billion in these lease and bonus payments …

Techno-economic analysis and life cycle assessment of hydrogen production from natural gas using current and emerging technologiesTechno-economic analysis and life cycle assessment of hydrogen production from natural gas using current and emerging technologies
www.sciencedirect.com [PDF]
… British Thermal Units (BTUs), the natural gas found in the Marcellus could be equivalent to the … 7 Figure 5: Quarterly production of natural gas equivalents … In 2008 alone, natural gas companies paid over $1.8 billion in these lease and bonus payments …

Does local access to finance matter? Evidence from US oil and natural gas shale boomsDoes local access to finance matter? Evidence from US oil and natural gas shale booms
pubsonline.informs.org [PDF]
… British Thermal Units (BTUs), the natural gas found in the Marcellus could be equivalent to the … 7 Figure 5: Quarterly production of natural gas equivalents … In 2008 alone, natural gas companies paid over $1.8 billion in these lease and bonus payments …

Understanding the shadow impacts of investment and divestment decisions: Adapting economic input–output models to calculate biophysical factors of financial …Understanding the shadow impacts of investment and divestment decisions: Adapting economic input–output models to calculate biophysical factors of financial …
www.sciencedirect.com [PDF]
… British Thermal Units (BTUs), the natural gas found in the Marcellus could be equivalent to the … 7 Figure 5: Quarterly production of natural gas equivalents … In 2008 alone, natural gas companies paid over $1.8 billion in these lease and bonus payments …

Gas flaring in Nigeria: Some aspects for accelerated development of SasolChevron GTL plant at EscravosGas flaring in Nigeria: Some aspects for accelerated development of SasolChevron GTL plant at Escravos
www.tandfonline.com [PDF]
… British Thermal Units (BTUs), the natural gas found in the Marcellus could be equivalent to the … 7 Figure 5: Quarterly production of natural gas equivalents … In 2008 alone, natural gas companies paid over $1.8 billion in these lease and bonus payments …



Q&A About Natural Gas Equivalent


What does BCFE stand for?

Billions of cubic feet equivalent.

What is the term natural gas equivalent used for?

Natural gas equivalent is used to compare the amount of energy in natural gas with that of crude oil.

What are NGLs?

NGLs are natural gas liquids that remain liquid at surface conditions. This includes ethane, propane, butane, pentane and condensates; it does not include methane which remains gaseous at surface conditions.

Why would you use BCFE to measure production or reserves?

You can use BCFE to measure production and/or reserves because it allows investors to compare companies' production and/or reserves.

How many cubic feet are in one barrel?

6,000 cubic feet.

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