RE:RE:RE:RE:RE:RE:DifficultyIndeed TOU uses a conversion factor of 6 mcf = 1 bbl, see page 49 of latest Corporate Presentation: [url=As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.]As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.[/url]
From my experience of 30 years in oilpatch, the conversion factor is non-standardized and thus different between companies and countries. Also it was based on energy equivalency not revenue as gas when found or produced with oil, was often a side benefit or useless and flared, or is more expensive to transport to market.
Indeed on that page TOU states: "As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value."