Production Allocation

We maintain the leading edge in the industry in designing and operating production allocation systems – essentially setting the standard. We assist with production allocation and reporting, regulatory compliance, surface commingling permitting, commercial production handling and measurement and allocation agreements.


We assess commercial and financial risk by materially balancing systems from well to sales, evaluating for losses, biases, errors in laboratory analysis, and measurement calculations. We understand the boundaries of today’s industry standards, or where they do not apply – and provide solutions that result in balanced systems.

Compositional Analysis

Extensive work in measurement and allocation compositional analysis and validation and rehabilitation techniques to ensure accurate production allocation and material balancing of systems. Common examples of our work include shrink, flash, and retrograde condensate calculations and algorithm development.

Simulation Modeling

We build simulation models that perform theoretical calculations and determine fluid properties and quantities of commingled fluids. The equations of state used in our models are tuned to actual fluids properties and capture impacts to those fluid properties due to commingling.


Hydrocarbon Engineering is a privately held engineering and consulting services firm that is highly skilled in the quantification and distribution of all commercial hydrocarbon quantities, including crude oil and natural gas, condensates, liquid natural gas, natural gas liquids, and refined products.

We boast a vast breadth of knowledge in oil and gas measurement, process engineering, and fluid characterization. Our services span from consulting on commercial negotiations for production handing and measurement and allocation agreements to designing and building custom production allocation systems. We ensure our clients capture every high margin product from their wells or pipeline system through sales points. We create value for our clients by establishing material balances across their value chain, driving excellent understanding of losses and providing preventive and corrective action for sustained results.


Hydrocarbon Engineering has been instrumental in the development of API Manual of Petroleum Measurement Standards, Chapter 20.1, Production Measurement and Allocation Systems.

Hydrocarbon Engineering has also been selected to provide technical consulting services related to the document development and editing of the 1st Edition of API Manual of Petroleum Measurement Standards, Chapter 20.4, Phase Behavior Applications in Upstream Measurement Standard.

25 million bbls

Crude Oil Allocated Monthly

14 billion cubic feet

Natural Gas Allocated Monthly


Component Production Allocations

Hydrocarbon System Balancing

Fluid Characterization

Commingling and Blending Models


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