A barrel of oil equivalent (BEP) is a unit of measurement used to know the energy equivalent of burning a barrel of crude oil.
Therefore, we are dealing with a standard international measure that allows comparisons to be made. Keep in mind that in order to compare, it is necessary that the measurements of what you want to relate are the same. Meters with meters, dollars with dollars, etc.
In this way, companies use it in the balance sheets of their financial statements with the aim of combining oil and natural gas in a single unit of measurement. Thus, comparisons can be made between countries or positions between them can be established.
Measurements of a barrel of oil equivalent (BEP)
Let’s see the equivalences with other measures used. Although there are conversion tables for all of them, we want to show the most relevant ones.
- Regarding natural gas, one BEP is equivalent to about 6,000 cubic feet, which would be about 170 cubic meters.
- We also have the equivalent tons of oil that represent approximately almost seven million barrels of this substance.
- On the other hand, there is the crude oil equivalent (PCE), which is an international unit of measurement to know the total inventories of hydrocarbons. To calculate it, some substances must be added to the crude oil.
Prices in the BEP and natural gas
Both types of fuels are very important energy sources. Their prices can affect the economy in general and citizens in particular.
The prices and units of measurement that include oil and natural gas allow authorities to make effective and efficient decisions. In this way, plans can be proposed that allow less dependence on fossil fuels.
The barrel of oil equivalent (BEP) and sustainability
Caring for the planet and the environment is a priority for most countries in the world. For this reason, a series of actions are carried out, especially related to fossil fuels, in which this unit of measurement is used.
In the development plans of several countries, for example, Mexico, oil production and consumption are included. Above all, you want to know the efficiency in its use. In this way, the aim is to reduce pollution.
For this reason, the barrel of oil equivalent (BEP) becomes an essential unit of measurement. It is used to know how much oil and natural gas is produced or consumed. With this information, authorities can take corrective action.