What Is Petroleum?

Petroleum is a naturally occurring liquid that is composed of a mixture of hydrocarbons. Hydrocarbons are molecules that contain both carbon and hydrogen atoms. Petroleum is found in underground rock formations and is extracted through the process of drilling. Petroleum is used to produce a variety of products, including gasoline, diesel fuel, and heating oil. … Read more

Renewable Energy Certificate (REC).

In the United States, a Renewable Energy Certificate (REC) represents the environmental attributes of one megawatt-hour (MWh) of electricity generated from a qualifying renewable energy resource. One REC is equal to one MWh of electricity generated and delivered to the grid from a renewable resource. Renewable energy certificates are created as a way to encourage … Read more

Internet of Energy (IoE).

The Internet of Energy (IoE) is a term used to describe the trend of energy producers and consumers using information and communication technologies (ICT) to manage the flow of energy. The IoE encompasses a wide range of applications and technologies, including smart meters, renewable energy management systems, demand response systems, and distributed energy resources (DER) … Read more

What Is a Swing Option?

A swing option is a type of derivative that gives the holder the right, but not the obligation, to enter into a particular transaction at a later date. The underlying asset of a swing option can be anything from stocks and commodities to currencies and interest rates. Swing options are often used by investors as … Read more

Energy Derivatives Definition.

An energy derivative is a financial contract whose value is based on the price of an underlying energy commodity, such as crude oil, natural gas, or electricity. Energy derivatives can be used to hedge against price fluctuations in the underlying commodity, or to speculate on future price movements. The most common types of energy derivatives … Read more

Measuring Natural Gas in MCF.

Natural gas is typically measured in MCF, or thousand cubic feet. One MCF equals 1,000 cubic feet of natural gas. Natural gas is also sometimes measured in MMBtu, or million British thermal units. One MMBtu equals 1,000,000 BTUs, or 1,054,000 joules. What is SCM gas unit? The Standard Cubic Meter (SCM) is the most commonly … Read more