Work out barrels of oil equivalent instantly with clear inputs, formula shown and shareable results.
Barrels of oil equivalent adds oil, natural gas liquids and gas on an energy basis, converting gas at 5800 to 6000 standard cubic feet per barrel. Reporting the gas share matters because a BOE from gas typically realises far less revenue than a BOE from oil.
BOE conversion
Gas BOE = gas (scf) / conversion factor; total BOE = oil + NGL + gas BOE
It equates energy, not value. At six thousand to one, gas priced at 3 dollars per Mscf is worth 18 dollars per BOE while oil is worth 78 — so a company reporting BOE growth from gas is not growing revenue proportionally.
6000 scf/BOE is the common industry convention and the SEC basis; 5800 is also widely used. State which you used, because the difference is over 3%.