A glossary of common terms and abbreviations used in the industry, with links to more in-depth articles on key words
Octane - a measure of the tendency of gasoline to resist auto-igniting when compressed with air in a spark ignition (Otto cycle) engine
Official selling price - (OSP) announced price, typically for crude oil, that is offered to all buyers in the market for a set period of time (usually a calendar month)
Off sites - all the refinery facilities that are not core to process operations, but still account for a significant share of refinery investment
Off spec - when a commodity does not satisfy the quality requirements set by contract or regulation
Olefins - unsaturated hydrocarbons containing a double bond between two carbon atoms
Oil sands - deposits of crude oil in the form of small amounts of bitumen covering fine grains of sand
Oil tanker - a sea-going ship specifically designed to move large volumes of crude oil or refined product over long distances
Olmeca (crude) - a light, sour crude grade produced in Mexico
Oman (crude) - a medium, sour crude grade produced in Oman
OPEC - (Organization of petroleum exporting countries) the organization that coordinates crude oil production levels for the major crude exporting countries, in a an effort to balance global crude supply and demand to maintain market stability
Optimization - the process of making near term commercial decisions around the refinery so as to maximize refinery profitability
Option - a contract that allows (but does not require, hence option) the buyer of the option to either purchase (call option) or sell (put option) a parcel of crude oil or refined product at a specified time in the future at a specified price
Oriente (crude) - a heavy, sour crude grade produced in Ecuador
Oseberg (crude) - a light, sweet crude grade produced in Norway
OSP - (Official selling price) typically for crude oil, a published price that is offered to all buyers in the market for a set period of time (usually a calendar month)
OTC (contract) - (Over the counter) custom contracts directly between two counterparties, as opposed to standardized exchange traded contracts
Over the counter - (OTC) custom contracts directly between two counterparties, as opposed to standardized exchange traded contracts
Oxygenate - a gasoline blendstock containing oxygen that is used to reduce the emissions of carbon monoxide when gasoline is burned