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Industry Glossary Term

Batch Drilling

A method where multiple wells are drilled to the same depth or stage before moving to the next phase across all wells. Subcontractors should expect high-volume, repetitive scopes with tight sequencing between crews and equipment. Mobilisation efficiency and crew continuity are critical to keeping pace with the operator's schedule.

Related Terms

Feedstock

Industry

Raw material fed into a processing facility, such as crude oil, bitumen, or natural gas. Subcontractors often support feedstock handling through pipeline work, tank maintenance, and material transfer operations.

LNG (Liquefied Natural Gas)

Industry

Natural gas cooled to -162°C to become liquid for easier transport and storage, creating specialized work opportunities for subcontractors in cryogenic equipment maintenance, pipeline construction, and terminal facilities that require specific safety certifications and cold-weather expertise.

Alternative Delivery Models

Industry

Contracting arrangements beyond traditional lump-sum or day-rate structures, such as alliance, integrated project delivery, or performance-based contracts. These models shift how subcontractors are engaged, paid, and held accountable for outcomes. Understanding them helps field service firms assess risk, pricing strategy, and scope responsibilities before signing.

GOR (Gas-oil Ratio)

Industry

GOR measures the volume of gas produced relative to each barrel of oil at a well site. A rising GOR signals changing well conditions, which can affect equipment requirements and scope of work for field service crews. Subcontractors should monitor GOR shifts, as they may trigger additional service calls or changes to compression and separation equipment needs.

Grid Hardening

Industry

Upgrades to electrical infrastructure that improve resilience against outages, extreme weather, and physical damage. For subcontractors, it drives demand for line work, equipment installation, and civil construction crews. Contracts often involve tight timelines and utility compliance requirements.

Physical Oil Price

Industry

The actual market price paid for real barrels of oil delivered at a specific location, as opposed to futures contract prices. For subcontractors, client budgets and contract award activity closely track physical oil prices. When physical prices drop, project deferrals and rate pressure often follow quickly.

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