Because of the two‐constituent nature of seawater, there is no conservative potential vorticity for the ocean, even when viscous and diffusive effects are ignored. Specifically, nonconservation arises in association with the thermobaric effect, which is related to nonlinearities in the equation Of state. While this is well‐known, it is generally supposed that this forcing is far too small to be of importance for most problems of interest. A careful scale analysis is presented to suggest that thermobaric forcing is larger than is generally supposed, particularly at the high wavenumber end of the spectrum. The spatial structure of the thermobaric potential vorticity source is dependent on an arbitrary choice, such as the choice of a reference pressure in the definition of potential vorticity. To address the effect of thermobaricity on the dynamics, which must be independent of arbitrarily chosen parameters, it therefore seems desirable to consider how balanced dynamical systems are affected. In this spirit, an analog to quasigeostrophy that is applicable to thermobaric fluids is derived and its conservation properties are discussed. It is argued that thermobaricity can lead to O(1) changes in the vorticity distribution at the high wavenumber end of the spectrum. Additionally, integral constraints that can influence basin scale circulation are affected. For example, isopycnal mixing affects the (QG) energetics and potential enstrophy is lost as a conserved quantity. The size of the enstrophy source (or sink) and the wave number at which thermobaric effects produce an O(1) effect both depend on the size of a nondimensional parameter that is introduced. This parameter, although typically small, can be large with respect to the Rossby number appropriate to the mid‐latitude eddy field. That is, it is suggested that thermobaric effects may be larger than finite Rossby number effects on the dynamics of the mid‐latitude eddy field, particularly below the thermocline.