Fracking or Hydraulic fracturing

Hydraulic fracturing is the fracturing of rock by a pressurized liquid. Some hydraulic fractures form naturally—certain veins or dikes are examples. Induced hydraulic fracturing or hydrofracturing is a technique in which typically water is mixed with sand and chemicals, and the mixture is injected at high pressure into a wellbore to create small fractures (typically less than 1mm), along which fluids such as gas, petroleum, uranium-bearing solution, and brine water may migrate to the well.

Farm In

When one company drills wells or performs other activity on another company’s lease in order to earn an interest in or acquire that lease.


A contractual agreement with an owner who holds a working interest in an oil and gas lease to assign all or part of that interest to another party in exchange for fulfilling contractually specified conditions. The farmout agreement often stipulates that the other party must drill a well to a certain depth, at a specified location, within a certain time frame; furthermore, the well typically must be completed as a commercial producer to earn an assignment. The assignor of the interest usually reserves a specified overriding royalty interest, with the option to convert the overriding royalty interest to a specified working interest upon payout of drilling and production expenses, otherwise known as a back-in after payout (BIAPO).


Free Along Ship. The seller delivers when the goods are placed alongside the vessel and the named port of shipment.

Fischer-Tropsch process

It is a catalyzed chemical reaction in which carbon monoxide and hydrogen are converted into liquid hydrocarbons of various forms. Typical catalysts used are based on iron and cobalt. The principal purpose of this process is to produce a synthetic petroleum substitute, typically from coal or natural gas, for use as synthetic lubrication oil or as synthetic fuel.


The setting of a price by a known method at regular times. For example, the establishment of an official exchange rate, interest rate, or security or commodity price.

Floating liquefied natural gas (FLNG)

Floating liquefied natural gas (FLNG) refers to water-based liquefied natural gas (LNG) operations employing technologies designed to enable the development of offshore natural gas resources. Floating above an offshore natural gas field, the FLNG facility will produce, liquefy, store and transfer LNG (and potentially LPG and condensate) at sea before carriers ship it directly to markets. Shell launched the world’s first project to construct a floating liquefied natural gas facility, Prelude FLNG, off Australia’s north-west coast.


Free On Board. The seller delivers when the goods pass the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that point.

Focus Group

It is a form of qualitative research in which a group of people are asked about their attitude towards a product, service, concept, advertisement, idea, or packaging. Questions are asked in an interactive group setting where participants are free to talk with other group members.


The positioning of PS locations in a company’s network.


Free On Rail.  The seller pays all charges and loads the goods onto a wagon or truck. The goods and their transit risks are passed to the buyer when the goods or wagon on which the goods are loaded passes into the custody of the railway or carrying agent.


It is the area where the pumps are present. It is the area outside the sales room or the convenience store of a gas station when customers park their automobiles for filling fuel. It can either be manned or unmanned.


Foreign Exchange difference. The purchase or sale of a currency against sale or purchase of another.

Formation Damage

Damage to the reservoir around a well due to e.g. plugging with mud, infiltration by water from the well, crumbling under pressure or high flow rate, etc.


Factor of Safety

Fossil Fuel

A fuel source (such as oil, condensate, natural gas, natural gas liquids or coal) formed in the earth from plant or animal remains.


Free On Truck. Goods sold loaded on road tanker at selling point.

Foundation Pile

The first casing or conductor string (generally with a diameter of 30 to 36 inches) set when drilling a well from an offshore drilling rig. It prevents sloughing of the seabed formations and is a structural support for the permanent guide base and the blowout preventers.


The process of cracking open the rock formation around a well bore to increase productivity. This is normally done by applying hydraulic pressure down the well bore.


Free Carrier. Seller pays all costs to the point where goods are handed over to the carrier at the named place.  The goods and their transit risks transfer to the buyer when delivery takes place.

Free Carrier

The seller delivers the goods, cleared for export to the carrier nominated by the buyer at the named place.

Free Float Ordinary

Indicates the percentage of free floating ordinary shares.

Free-water knockout

A vertical or horizontal vessel into which oil or emulsion is run in order to allow any water not emulsified with the water oil (free water) to drop out.

Fuel Cell Electric Vehicles (FCEVs)

A fuel cell vehicle (FCV) or fuel cell electric vehicle (FCEV) is a type of vehicle which uses a fuel cell to power its on-board electric motor. Fuel cells in vehicles create electricity to power an electric motor, generally using oxygen from the air and hydrogen. Fuel cell vehicles that are fueled with only hydrogen emit few pollutants, producing mainly water and heat, although producing hydrogen may create pollutants. Fuel cells have been used in various kinds of vehicles including forklifts, especially in indoor applications where their clean emissions are important to air quality, and in space applications. Fuel cell automobiles are being developed for commercial production expected to begin in 2015 in cars, and fuel cells are being developed and tested in buses, boats, motorcycles and bicycles, among other kinds of vehicles.

Fuel Oil

It is a fraction obtained from petroleum distillation, either as a distillate or a residue. Broadly speaking, fuel oil is any liquid petroleum product that is burned in a furnace or boiler for the generation of heat or used in an engine for the generation of power, except oils having a flash point of approximately +40 °C (104 °F) and oils burned in cotton or wool-wick burners. In this sense, diesel is a type of fuel oil. Fuel oil is made of long hydrocarbon chains, particularly alkanes, cycloalkanes and aromatics.


A contract specifying a future date of delivery or receipt of a certain amount of a specific tangible or intangible product. The commodities traded in futures markets include stock index futures; agricultural products like wheat, soybeans and pork bellies; metals; crude oil and petroleum products; and financial instruments. Futures are used by business as a hedge against unfavorable price changes and by speculators who hope to profit from such changes.