Energy Glossary
To make the informed choice, you need to know the lingo. Learn it here.
F
A federal agency created in 1977 to regulate, among other things, interstate wholesale sales and transportation of gas at “just and reasonable” rates. The FERC establishes uniform ceiling prices for each of several categories of natural gas, and these prices apply to all sales on a nationwide basis.
The price paid for natural gas at the wellhead or outlet of a central gathering point in a field.
The highest quality sales or transmission service offered to customers under a filed rate schedule, which anticipates no planned interruption. Usually associated with distribution companies that serve residential customers and other “high priority end-users” but can also apply to upstream pipelines and other customers.
A superior force, "act of God" or unexpected and disruptive event, which may serve to relieve a party from a contract or obligation.
Oil, coal, natural gas or their by-products. Fuel that was formed in the earth during prehistoric times from remains of living-cell organisms.
The process of opening up underground channels in hydrocarbon-bearing formations by force by pumping a liquid or other substance into a well under pressure to crack (fracture) and prop open the gas-bearing formation in order to increase the deliverability of a production or underground storage well.
A market trading in contracts to buy and sell natural gas contracts for delivery on a specified future date. Trading is carried out through open yelling and hand signals in a trading pit, as well as electronically.