Billions of Cubic Feet Equivalent (BCFE)
What Are Billions of Cubic Feet Equivalent?
Billions of cubic feet equivalent (BCFE) is a natural gas industry term regularly used to measure the amount of natural gas that is either undiscovered in reserves or that which is being pumped and delivered overstretched periods of time (like months or years).
The saying "equivalent" is utilized to depict the equivalent amount of energy freed by the consuming of this type of fuel versus crude oil, with each 6,000 cubic feet of natural gas being equivalent (or equivalent) to one barrel of oil.
Grasping Billions of Cubic Feet Equivalent
Billions of cubic feet equivalent (BCFE), most regularly found in the annual reports of natural gas and oil corporations, is utilized to quantify the energy created (or possibly created) by a company's reserves, as well as what is really delivered to customers. Investors will see this figure to comprehend how much earning expected a producer in the space might have.
All one billion cubic feet of gas equivalent can deliver generally 1.028 trillion BTUs, which is sufficient to power Delaware's natural gas needs for somewhat over multi week. Taking into account that the average natural gas well pumps approximately 250,000 - 350,000 cubic feet equivalent each day, it would require one well around 3,000 days to pump one billion cubic feet equivalent of natural gas.
Accommodating Other Measures of Natural Gas Production
BCFE is a useful measure of natural gas production, however it isn't the one to focus on. Trillion cubic feet (Tcf) is a volume measurement of natural gas utilized by the U.S. oil and gas industry. A trillion (1,000,000,000,000) cubic feet is equivalent to roughly one Quad of Btu (British warm unit).
A "quad" is a truncation for a quadrillion (1,000,000,000,000,000) Btu. A Btu is a unit of measurement for energy, addressing the amount of necessary intensity to raise the temperature of one pound of water by one degree Fahrenheit at sea level. One Btu is generally equivalent to the intensity created by a kitchen stick match.
Inside the oil and gas industry, units of measurement are addressed by the following letters:
- M = 1,000
- MM = 1,000,000
- B = one billion
- T = one trillion
Any of these can show up before certain terms, like MMBOE (million barrel of oil equivalent) or Tcf (trillion cubic feet). Mcf is the conventional method for measuring natural gas in the United States, which utilizes the magnificent measuring system.
In Europe, where the decimal measuring standard is utilized, the condensing most normally utilized is thousand of cubic meters or Mcm. Oil and gas financial analysts should be particularly careful while investigating companies' quarterly outcomes to try not to stir up different units. For instance, ignoring the fact that U.S is very simple. companies will report in Mcf, while European companies often report in Mcm. This has truly an effect in light of the fact that 1Mcm = 35.3Mcf.
The greater part of the major international oil and gas companies have normalized reports to help analysts and investors precisely survey these figures. This is halfway a regulatory requirement with the U.S. Securities and Exchange Commission (SEC) requiring foreign companies with stock listed on U.S. exchanges to file normalized reports on an annual basis, called a 20-F.
Investors in the emerging markets of Russia, Africa, or Latin America often receive reports with data reported with the decimal standard, which is a global measurement system. Analysts of these companies should utilize conversion tables to quantify and compare them to additional sophisticated international administrators precisely.
Features
- BCFE is a measure of the amount of natural gas reserves and is made in terms equivalent to the energy in a normalized amount of crude oil.
- BCFE for a company is often listed in its annual report and might be a regulatory requirement by the SEC for publicly traded natural gas companies.
- Billions of cubic feet equivalent (BCFE) is a term used to comprehend how much earnings potential a natural gas producer might have.
