A

Aframax

Medium-sized oil tankers capable of flexible trading patterns, considered the workhorse of the industry. Tanker size ranges between 80,000 and 119,999 deadweight tonnes with an average cargo carrying capacity of 0.6 million barrels.

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B

Ballast

A heavy weight that gives a ship stability and improve handling when the vessel is not carrying cargo.

Barrel

Common unit of measurement of liquids in the petroleum industry that equals 42 U.S. standard gallons or 35 imperial gallons.

Bunker

Refers to a vessel''s fuel, as well as the area of the ship where it is stored.

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C

Chartering

Commercial leasing of a vessel or space on a vessel.

Crude Oil

Crude oil is the naturally occurring rock oil which accumulates in underground fields. It is a fossil fuel consisting of a complex mixture of various hydrocarbons.

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D

DP (Dynamic Positioning)

DP allows a vessel to remain in the same location, even in harsh weather, through the combined use of rudders, thrusters, propellers, a position reference system and a computer.

Drilling

Process of boring a hole into the earth to remove oil and gas.

DSL (Direct Shuttle Loading)

Use of two submerged turret loading systems for direct loading of oil, eliminating the need for a storage vessel.

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E

Extended Well Test

When oil is discovered the well must be tested to determine flow rates, reservoir performance and fluid/gas composition. In some complex reservoirs, it may be necessary to flow the well for a long time to determine whether a full field development can be economically justified.

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F

Fixture

Process of selecting and securing a vessel for use.

FPSO (Floating Production, Storage and Offloading)

Vessels equipped with processing facilities for separating gas and oil, moored to a single location for an extended period. Oil and gas from offshore wells are transferred to FPSOs through pipes. Once oil has been processed and stored in the hull, shuttle tankers periodically offload it to other locations.

FSO (Floating Storage and Offtake)

Oil tankers modified to store and transfer oil from a permanently moored location.

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H

Heavy Crude

Crude oil that is more difficult to pump and process due to a higher viscosity.

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I

IMO (International Maritime Organization)

A United Nations organization that seeks to improve the safety of international marine transportation and prevent marine pollution.

ISM (International Safety Management) Code

Provides an international standard for the safe management and operation of ships and for pollution prevention. This is a regulatory requirement for shipping companies.

ISO (International Standards Organization)

The world's largest developer and publisher of International Standards.

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L

Light Crude

Crude oil that is easier to pump and process due to a lower viscosity.

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M

MARPOL (Marine Pollution Act)

An international convention concerning the prevention of pollution from ships. MARPOL is administered by the International Maritime Organization.

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N

Newbuilding

New ship under construction.

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O

Offshore

Segment of industry that deals with exploration and extraction of oil from undersea deposits.

OHSAS (Occupational Health and Safety Assessment Series) 18001

Provides standards to help a company control occupational health and safety hazards for staff.

OPA 90 (Oil Pollution Act of 1990)

A U.S. federal law created after the Exxon Valdez disaster that strengthened penalties for pollution of U.S. waters.

OPEC (Organization of Petroleum Exporting Countries)

A group of 11 oil producing nations, that currently account for approximately 40 percent of global oil production and hold a considerable amount of the world''s existing reserves.

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P

Petroleum

Generic term for all forms of oil and oil products, including crude oil, natural gas liquids and unfinished oils.

Production

Stage in the industry where oil and gas are extracted and prepared for transport.

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R

Refining

Processing and manufacturing of petroleum products out of crude oil and other hydrocarbons. Refining begins with simple distillation, and then additional processes are done to minimize the production of heavier/lower value products, such as residual fuel oil, in favor of lighter/higher value products such as gasoline.

Reserves

Reservoirs of oil and gas considered to be economically and operationally feasible to extract and refine.

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S

SAL (Single Anchor Loading)

Consists of a single or double mooring line attached to a suction anchor or pile on the seabed. A swivel stands on top of anchor. The oil flow is carried through a flexible hose up to the ship, which "weathervanes" freely around the anchor point.

SAP (Single Anchor Production)

Involves placing a multi-path production swivel on a seabed anchor. Can be used in most water depths and is expected to have a large potential in combination with subsea production equipment.

Shuttle Tanker

Shuttle tankers are specially equipped for shipping oil from offshore production facilities to onshore oil terminals, especially in harsh weather conditions.

SOLAS (Safety Of Life At Sea)

Passed in 1914 after sinking of the Titanic, SOLAS is an international convention that sets out rules and regulations to ensure ships are safe.

STL (Submerged Turret Loading)

System consisting of a submerged and moored buoy which can be pulled into the bottom of a tanker. The loading hose runs through the buoy to a rotating connector, which allows ship to "weathervane" freely around the anchor point, remaining "bows-on" to wind and waves.

Sweet Crude

Crude oil that has a low sulphur content. Typically refined into gasoline and is in high demand.

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T

Time Charter

Enables a charterer to cover shipping requirements at a fixed price other than bunker and port costs. Ship owner receives a fixed rate of hire (per day) which provides a stable cash flow over the agreed period of time.

Ton

Equivalent to 2,240 pounds.

Ton Mile

Equivalent to transporting one ton of cargo over a distance of one mile.

Tonnage

Cubic capacity of a ship.

Tonne

Metric ton equivalent to 1,000 kilograms.

Turret

An attachment for a Floating Storage and Offtake vessel or Floating Production, Storage and Offloading vessel that allows vessel to rotate around its mooring according to direction of wind and current.

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V

VECS (Vapor Emission Control System)

During ship / shore transfer operations, the VECS collects the vapors released and conveys them to emission control plant.

VOC (Volatile Organic Compounds)

A mixture of light-end components of crude oil - methane, ethane, propane, butane, etc. that are released from crude oil during crude oil transfers or transportation. Teekay has planned and built several VOC recovery plants, and is now operating these units on shuttle tankers for oil companies.

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