Everything about the Barrel Of Oil Equivalent totally explained
The
barrel of oil equivalent (bboe, sometimes BOE) is a
unit of energy based on the approximate energy released by burning one
barrel of
crude oil. The US
Internal Revenue Service defines it as equal to 5.8 × 10
6 BTU (External Link
).
5.8 × 10
6 BTU59 °F equals 6.1178632 × 10
9 J or about 1.70 MWh.
A commonly used multiple of the bboe is the
kilo barrel of oil equiavalent (kbboe or kBOE), which is 1,000 times larger.
The bboe is used by oil and gas companies in their financial statements as a way of combining
oil and
natural gas reserves and production into a single measure.
A bboe is roughly 6000 cubic feet (170 cubic meters) of typical natural gas.
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