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oil barrels

Oil Barrels and Derricks: What They Measure and How They Work

An oil barrel is a volume measure, while a derrick supports drilling and hoisting equipment. See how the terms connect in U.S. oil history.

By TheFinanceBase Team 2 min read

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An oil barrel is a unit of volume, not necessarily a physical drum: Nevada’s current oil-and-gas regulations define a barrel as 42 U.S. gallons measured at standard pressure and temperature. A derrick, by contrast, is part of the structure that supports drilling and hoisting equipment. The terms meet in oil history, but they describe different things—one measures oil; the other helps drill wells.

What does an oil barrel measure?

In the United States, the standard oil-field barrel is a volume unit of 42 U.S. gallons. Nevada Administrative Code 522.030 defines “barrel” as 42 U.S. gallons measured at standard conditions of pressure and temperature. That is a state regulatory definition, not a claim that every country uses the same legal standard.

The unit does not mean that the oil must be stored in a barrel-shaped container. In modern use, “barrels” commonly describe a quantity of oil, whether or not it is held in a physical barrel. The measure is useful for describing oil volumes; it does not identify the equipment used to extract or store the oil.

What does an oil derrick do?

A derrick is a tall supporting structure used with drilling and hoisting equipment. It helps raise and lower tools in a well. The derrick itself is not the drill bit, and its role differs from the barrel’s role as a unit of volume.

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Cable-tool drilling

In early cable-tool drilling, the rig lifted and dropped a heavy bit repeatedly to break rock. The derrick supported the hoisting system and tools used in that process.

Rotary drilling

Rotary drilling instead turns a bit to cut the rock. Drilling mud circulates through the borehole to carry cuttings back out. These are distinct drilling methods; a derrick supports equipment, while the bit and circulating system do the cutting and removal work.

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Three U.S. history examples

Titusville and the 1859 commercial well

The American Oil & Gas Historical Society dates a commercial oil well near Titusville, Pennsylvania, to August 27, 1859. The date is a landmark in the history of commercial U.S. oil drilling.

Spindletop and the Southeast Texas boom

The National Park Service dates the Lucas Gusher at Spindletop to January 1901 and describes it as ushering in an eight-year Southeast Texas oil boom. It is a regional historical example of how a major discovery helped trigger rapid development.

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Storage changes in the Big Thicket

The National Park Service’s account of the Big Thicket describes makeshift wooden crates and earthen pits that contributed to pollution. In that regional history, steel barrels and pipelines mitigated those storage problems. This example shows barrels as physical storage containers in a particular historical setting; it should not be taken as a description of all oil storage, past or present.

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Keep the terms straight

  • Oil barrel: a volume measure; the Nevada regulatory definition is 42 U.S. gallons at standard pressure and temperature.
  • Physical barrel: a container that may be used for storage, as in the Big Thicket example.
  • Derrick: a supporting structure for drilling and hoisting equipment.
  • Drilling method: the process used to cut or break rock and clear cuttings, such as cable-tool or rotary drilling.

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