Oil and Gas Glossary: D Terms
21 oil and gas terms start with the letter D. Each one is defined below, in alphabetical order.
D&A
Dry and abandoned. Refers to oil and gas wells.
Decline Curve
The graphic representation that shows how hydrocarbon production rate changes over time.
Decline Rate
The rate of change in oil and gas production for a particular well.
Defects in Title
Items which are or appear to be problematic with respect to having a clear title. Clear title would be a title with no questions or encumbrances as relating to ownership.
Dehydration
The process of removing water vapor from produced natural gas. This is done in order to bring the raw gas stream up to minimum quality standards for transporting in the pipeline network.
Delay Rental
Yearly payments made to Lessor during the primary term to compensate for delayed drilling.
Depletion
With respect to oil and gas production, the process by which a producing reservoir is depleted (or produced) of it’s hydrocarbon.
Depletion Allowance
The tax deduction allowed by the IRS for royalty and mineral owners to offset the decrease in value of a capital investment caused by the production (depletion) of minerals.
Developmental Well
A well drilled to a known producing formation in an existing oil field.
Direct Participation
Financial participation in the direct costs of drilling a specific well or wells; as differentiated from owning an interest in an oil company stock, or partnership.
Discovery Well
The first oil or gas well drilled in a new field. The discovery well is the well that is drilled to reveal the actual presence of a petroleum-bearing reservoir. Subsequent wells are called development wells.
Dissolved Gas
Commonly referred to as solution gas.
Division Order
A schedule of owners and their decimal ownership share in revenues of a well’s production derived from the sale of oil or gas.
Division Order Title Opinion
An opinion, generally written by an attorney, stating the names and decimal ownership interests within a producing oil or gas well, unit, or lease.
Downstream
This term is used in describing oil and gas operations occurring after the sales meter.
Drill Bit
The item placed at the end of the drilling string used in drilling into the earth. Drill bits cut and chip small pieces of rock as the pipe rotates.
Drill String
The pipe, tools, and bit comprise a drill string
Drilling Mud, Drilling Fluid
Fluid used to lubricate the drill string, line, the walls of a well, flush cuttings to the surface and create enough hydrostatic weight to prevent blowouts.
Drilling Rig
The equipment used to bore into the earth. Rotary style drilling is what is primarily used in today’s drilling.
Dry Gas
Natural gas that does not have a significant amount of liquid hydrocarbons or water vapor.
Dry Hole
Any well that fails to discover oil or gas in paying quantities.