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.
Physical Oil Price
Related Terms
Turnaround
IndustryA planned shutdown of a facility for maintenance, inspection, and repair. Turnarounds often require large numbers of contractors and subcontractors working intensive schedules.
Mobilization/Demobilization
IndustryThe process of moving equipment and personnel to a job site (mobilization) and returning them afterward (demobilization). Often billed as separate line items.
Throughput
IndustryThe volume of work or units a crew completes within a set timeframe. Higher throughput means more billable output per shift, directly affecting your contract profitability. Subcontractors often track throughput to justify crew sizes and equipment needs.
CNG (Compressed Natural Gas)
IndustryNatural gas compressed and stored at high pressure, used to fuel fleet vehicles and equipment on remote job sites. Subcontractors may need CNG-certified technicians and compliant fuelling procedures when working on CNG infrastructure projects or operating CNG-powered equipment.
Processing Capacity
IndustryThe maximum volume of oil, gas, or fluids a facility can handle within a given timeframe. For subcontractors, it determines the pace and scale of your scope of work on site. Exceeding this limit causes bottlenecks that can delay schedules and trigger penalties.
Legacy Well
IndustryAn older well built to outdated standards that may require specialised remediation, abandonment, or workover services. Subcontractors should expect non-standard equipment configurations and additional compliance requirements. Scope creep and unforeseen costs are common on legacy well projects.
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