Barrels of Oil Equivalent to Therm (EC)

One BOE equals approximately 6.118 gigajoules, 1,700 kWh, or 5.8 million BTU. That is roughly the energy a US household uses in electricity over six weeks. The figure is a defined convention — actual crude oil barrels vary by 5–10% depending on whether it is light sweet crude or heavy sour crude.

Because modern energy companies produce oil, natural gas, and natural gas liquids. Reporting everything in BOE allows investors to compare total energy reserves across companies on one scale. Roughly 6,000 cubic feet of natural gas equals 1 BOE. Without this conversion, comparing an oil-heavy company to a gas-heavy one would be apples-to-oranges.

Global oil consumption in 2024 was approximately 102 million barrels per day — or about 102 million BOE/day just from oil. Including natural gas and coal, total world primary energy consumption is roughly 580 million BOE/day equivalent. The US alone accounts for about 20 million barrels per day.

A physical barrel of crude oil is 42 US gallons (~159 liters) of liquid petroleum. A BOE is a standardized energy unit pegged to the average energy content of that barrel (6.118 GJ). Light crudes like Brent may actually yield slightly more energy per barrel, while heavy crudes yield less. The BOE smooths out these differences for accounting purposes.

A typical EV driven 20,000 km/year consumes about 3,500 kWh, which is roughly 2 BOE of energy. A petrol car covering the same distance burns about 1,500 liters of fuel — approximately 9.5 BOE. The EV uses roughly one-fifth the primary energy, largely because electric motors are 85–95% efficient while combustion engines waste 60–75% as heat.

The EC therm is defined as exactly 105,505,600 joules; the US therm is 105,480,400 joules — a difference of 25,200 J (about 0.024%). The discrepancy arose from slightly different historical BTU definitions. For residential gas billing the difference is negligible, but in large-scale energy trading involving millions of therms, the distinction can affect settlement amounts.

The UK Gas Act 1995 mandated a switch from therms to kWh as part of broader metrication. One therm (EC) equals 29.3071 kWh. The change aligned gas billing with electricity billing, making it easier for consumers to compare energy costs. Older UK customers and industry veterans still refer to therms colloquially, and wholesale gas markets continued using therms for years after the retail switch.

A typical UK home uses 500–800 therms (EC) per year for heating and hot water, equivalent to roughly 14,700–23,400 kWh. Well-insulated newer homes may use under 400 therms, while large Victorian houses with poor insulation can exceed 1,200 therms. Ofgem's energy price cap is set in pence per kWh, but converting back to therms gives about £2.50–£3.50 per therm at recent rates.

One cubic meter of UK pipeline-quality natural gas contains roughly 38.5–39.5 MJ, which is about 0.365–0.374 therms (EC). Gas meters measure volume in cubic meters, and the utility applies a calorific value correction to convert to kWh (or therms). The correction factor varies by region and season because gas composition changes depending on the source field.

The therm (EC) was once the standard trading unit on the UK's NBP (National Balancing Point) gas market. In 2020, the ICE exchange switched NBP contracts from pence per therm to pence per kWh. Continental European hubs like TTF have always traded in euros per MWh. The therm is fading from professional use but remains in legacy contracts and older billing systems.