The use of oil and natural gas in the United States is an important topic, as many homes and businesses rely on these resources for heat. Additionally, oil and natural gas are sometimes used to generate power for electricity, and at the very least, oil and natural gas are used somewhere along the supply chain when getting resources like coal and other fuel sources to their points of processing.
Paying for oil and natural gas is usually a straightforward experience. A customer uses a certain amount of fuel from a provider, and that amount is subject to the market rate at the time of use. The amount used is then converted to a dollar figure and a bill is issued. Unfortunately, what would usually be a cut-and-dried transaction can become a bit unclear when you factor in lost and unaccounted-for oil and gas.
What is Lost and Unaccounted-For Fuel?
Lost and unaccounted-for (L&U) oil and gas is any oil or gas that is lost in the supply chain. In some cases, customers end up being charged for fuel products that they did not use as a result of L&U oil and gas. Accounting errors can sometimes be to blame for L&U gas and oil, but things like leaks and defective distribution systems can also cause it.
Oil and gas operations services have stopgap measures in place to catch many of these issues, but they can’t catch every instance of L&U oil and gas. What this means is that innovators in oil and gas operations services need to look for new ways to capture data about L&U oil and gas to prevent these problems from piling up. Visit this website if you need more info about oil and gas operations services.
The Consequences of L&U Oil and Gas
Aside from the potential for customers to lose money on L&U gas and oil, the environment can suffer as well. As mentioned, L&U gas and oil may be the result of leaks, and when oil leaks go undetected for long periods, the potential for ground contamination grows. Additionally, natural gas that escapes distribution systems can result in catastrophic fires and explosions, meaning oil and gas professionals need to do everything possible to prevent these issues from occurring.
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