Barrel Definition & Meaning | Energy Term | CSIMarket
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Glossary

Barrel

Energy Term

A barrel, also known as a drum, is a cylindrical container typically made of steel, plastic, or wood. In the energy industry, a barrel is a unit of measurement that is used to quantify the volume of crude oil, refined petroleum products, and natural gas liquids, among other substances. The standard size of a barrel used in the industry is 42 US gallons or approximately 159 liters.

Barrels are critical to the functioning of the energy industry as they are used to transport and store various petroleum products. Crude oil, for example, is typically transported from oilfields to refineries in large volumes stored in tanker vessels, railcars, or pipelines. When the oil reaches the refinery, it is stored in barrels as it undergoes refining and processing. Once refined, the petroleum products such as gasoline, diesel fuel, and jet fuel are transported in barrels to storage facilities and distribution centers.

The use of barrels in the energy industry is not limited to crude oil and refined petroleum products. Natural gas liquids (NGLs) such as propane, butane, and ethane are also measured in barrels. NGLs are used as feedstock in petrochemical industries, as well as in residential, commercial, and industrial applications such as heating and cooking.

To summarize, barrels are an essential component of the energy industry. They are used to measure the volume of petroleum products and NGLs, as well as transport, store, and distribute these energy sources.


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