Like many industries, the energy industry has developed an language all of it's own. Brokers and suppliers talk about Duos Charges and Triads and avialabiity, but what to they actually mean?

We've put together what we think is the most complete glossary of energy terms on the net, if you can't find what you're looking for here give us a call and we'll see if we can help you.

O

OCM:

On-the-day commodity market. Part of the new gas trading arrangements introduced in the UK in October 1999, the OCM is a screen-based, within-day gas market that allows shippers to fine-tune their daily gas positions.

Octane Rating:

A number used to indicate gasoline's antiknock performance in motor vehicle engines.  The two recognized laboratory engine test methods for determining the antiknock rating, i.e., octane rating, of gasolines are the Research method and the Motor method. To provide a single number as guidance to the consumer, the antiknock index (R + M)/2, which is the average of the Research and Motor octane numbers, was developed.

ODPM:

Office of the Deputy Prime Minister.

OECD:

 An international organization helping governments tackle the economic, social and governance challenges of a globalized economy. Its membership comprises about 30 member countries. With active relationships with some 70 other countries, NGOs and civil society, it has a global reach.

Off-peak:

Period of relatively low system demand. These periods often occur in daily, weekly, and seasonal patterns; these off-peak periods differ for each individual electric utility.

Offtake:

Gas removed from the national transmission system.

Ofgem:

Office of Gas and Electricity Markets, the energy regulator.

Ohm:

A measure of the electrical resistance of a material equal to the resistance of a circuit in which the potential difference of 1 volt produces a current of 1 ampere.

Ohm’s Law:

In a given electrical circuit, the amount of current in amperes is equal to the pressure in volts divided by the resistance, in ohms. The principle is named after the German scientist Georg Simon Ohm.

OPEC:

The acronym for the Organization of Petroleum Exporting Countries that have organized for the purpose of negotiating with oil companies on matters of oil production, prices, and future concession rights. Current members (as of the date of writing this definition) are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.  See OPEC's site at www.opec.org for more information.

Open outcry:

Trading my means of shouting bids and offers across a trading floor. This traditional method of trading is increasingly being replaced by electronic trading.

Option:

A contract that gives the purchaser the right, but not the obligation, to buy or sell the underlying commodity at a certain price (the exercise, or strike price) on or before an agreed date.

OTC:

Over-the-counter. An over-the-counter deal is a customised derivative contract usually arranged with an intermediary such as a major bank or the trading wing of an energy major, as opposed to a standardised derivative contract traded on an exchange. Swaps are the commonest form of OTC instruments.

Out-of-the-money:

An option with no intrinsic value. For calls, an option with an exercise price above the market price of the underlying future. For puts, an option with an exercise price below the futures price.