Smith Rea Energy - experts in hydrocarbon accounting

Hydrocarbon accounting is a term used to describe how ownership of gas and oil is determined and tracked from the point of production to the point of sale. It is sometimes known as Hydrocarbon Value Realisation, Product Measurement and Allocation or Production Management and Reporting. Whatever term is used, it generally encompasses several business processes that are usually defined in contracts or operating agreements.

The main processes are:

Measurement
Allocation
Reporting

On-line metering and laboratory analysis generate measurements that, along with commercial data, are the inputs to allocation. Computers programmed with the allocation rules use this input data to determine production ownership and the output is communicated through reports.