NATURAL GAS EQUIVALENT
A term Natural gas equivalent is used in the oil and gas industry, representing a comparison between natural gas and crude oil. 6,000 cubic feet of natural gas is equivalent to one barrel of oil. "Billions of cubic feet equivalent" (BCFE), a term commonly found in the annual reports of natural gas and oil companies, is used to measure the amount of natural gas that is being pumped and delivered over an extended period of time, or that is untapped in reserves. BCFE is used to quantify the energy that is being produced, or that could potentially be produced, by an oil company's reserves. Investors can compare the production and/or reserves of oil and gas companies by looking at the natural gas equivalent figures.
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