Been seeing a lot of promotion from companies around the BOE ...
Barrels of OIl Equivalent is a way of converting natural gas and NG liquids into "Barrels" -
Everyone wants oil. It is decieving to call many of these wells "oil wells" when in fact the bulk of the production is gas.
NG Liquids are often being heavily discounted - there is a glut of it and the price is often below 50% of "oil" prices. And, of course, Nat gas is $4 or so ... not so hot.
The BTU content ratio of a bbl of oil to an MCF of gas is about 8:1. But the price differential is about 20 to 1. Oil is king.
When you convert nat gas to "oil" using BTU v. price ... you distort the actual totals of "Equivalent" production.
This results in numbers touted by the industry being inflated and implying they have a lot more oil than they actually do. Those "BOEs" may be 95% natural gas and you think you are invested in an oil well with some gas and instead you are the owner of a gas well with a few barrels of oil.
Clarity is when they report the three products separately - much more sensible.