BARREL OF OIL EQUIVALENT (BOE)

A term used to summarize the amount of energy that is equivalent to the amount of energy found in a barrel of crude oil. There are 42 gallons (approximately 159 liters) in one barrel of oil, which will contain approximately 5.8 million British Thermal Units (MBtus) or 1,700 kilowatt hours (kWh).

Also known as crude oil equivalent (COE).

This term is used frequently when exploration and production companies are reporting the amount of reserves they may have. By giving a BOE figure, analysts, investors and management can assess the total amount of energy the firm has access to, without breaking it down into barrel's of crude oil, or the cubic feet of natural gas.