Proved oil and gas reserves are defined to include only those. Estimated oil and gas reserves, gulf of mexico ocs region. Pdf estimation of oil and gas reserves in place using. The opec trend, however, is rather distorted by irregular revisions, and the rate of additions to reserves in non. The sec, to satisfy bankers and shareholders, obliges the oil companies listed on the us stock market to report only proved reserves and to omit probable reserves that are reported in the rest of the world. Guidelines for the evaluation of petroleum reserves and.
Estimates of world oil reserves and production figures are reported annually in four periodicals, namely the oil and gas journal ogj. It can be stated that accurate reserve estimates can be made for carbonate reservoirs with the available methods. Defining oil shale reserves is difficult, as the chemical composition of different oil shales, as well as their kerogen content and extraction technologies, vary significantly. Society of petroleum engineers of aime 1979, 1980, 1982a. The society of petroleum engineers spe oil and gas reserves committee, made up of international oil and gas experts, partners with several industry related societies to provide publicly available resources for the consistent definition and estimation of hydrocarbon resources. It is inevitable that adherence to applicable reserves definitions must be recognized in any discussion of recommended practices regarding the estimation of petroleum reserves. Reserves estimation is one of the most essential tasks in the petroleum industry. Calculated areas mean of inferred areas based on geologic analogies volumetric reserves calculation change from volumetric to performance control high confidence recoveries. Prediction of reservoir performance applying decline curve. In this study, we examine the extent to which firms voluntarily elect to engage a thirdparty specialist to estimate or audit these reserve disclosures. The global rp ratio shows that oil reserves in 2018 accounted for 50 years of current production. Guidelines for the evaluation of petroleum reserves and resources. History and methods 145 method was very simple and dubbed the per cent decline curve.
Pdf reserves estimation ooip fred pagocho academia. Oil reserves at the end of 2018 totalled 1730 billion barrels, up 2 billion barrels with respect to 2017. Oil and gas reserves disclosure january 26, 2009 prms4 generally, many of the revised definitions are designed to be consistent with the prms and use similar terminology and concepts. Oil companies have responded by revisiting reserves estimation procedures, and spe, american association of petroleum geologists aapg, world petroleum council wpc, and society of petroleum evaluation engineers spee have launched a joint project to train reserves evaluators. The shale oil resources assessed in this report, combined with eias prior estimate of u. Reserves or recoverable reserves are the volume of hydrocarbons that can be profitably extracted from a reservoir using. The estimation and audit of oil and gas reserves abstract estimates of hydrocarbon reserves are a key disclosure for oil and gas firms. Opec statistics conversion factors for crude oil in barrel per ton. Jpt may 2007 introduction reserves estimation is one of the most essential tasks in the petroleum industry. Opec countries seems to have surpassed opec countries during the 1990s. Original oil in place ooip original oil in place and original gas in place ogip original gas in place refer to the total volume of hydrocarbon stored in a reservoir prior to production. This newly revised course will cover the definitions of, and uses for, oil and gas reserves estimates, and how to be compliant with each of the industry standard speprms and regulators us sec versions of the reserves requirements.
As its very name indicates, the per cent graph depicted the declin e in the production of a well, of a property, or an oil field by expressing each year s production as a percentage of the first year of output. Estimation and classification of reserves of crude oil, natural gas, and condensate chapman cronquist on. However, pv10 values absolutely do not represent fair market value fmv. Introduction oil and gas projected production and initially in place estimation is a serious business that should not be taken for granted. On the other hand, for oil reservoirs under hydraulic control, where there is no. The first national estimate of oil resources was commissioned from the u. Nevertheless, opec, with its easily accessible low. One of the key problems encountered by oil companies. Pricing mechanism for oil and gas reserves estimation the 12month average price method. This problem can result in ineffective recovery factor, adequate economic evaluation of wells performances and early. Equation 2, can be easily integrated using the initial condition of qq. It is the process by which the economically recoverable hydrocarbons in a field, area, or region are evaluated quantitatively. What follows was written in 2001 and needs to be updated based on current experience. If s g is the gas saturation and b o the oil formation volume factor at abandonment pressure, then oil in place at abandonment pressure is given by.
Reserve estimation an overview sciencedirect topics. To better understand reserves estimation, a few important terms require definition. Estimation of oil and gas reserves in place using production decline trend analysis article pdf available july 20 with 607 reads how we measure reads. Hydrocarbon reserves estimation, classification and importance. Estimation of oil and gas reserves in place using production. To help manage the uncertainty associated with reserves estimation a variety of classification systems have been developed.
Material balance calculations for oil reservoirs, 5. This effort was joined by the american association of petroleum geologists aapg later that year. Petroleum reserves cannot be measured, but estimates of reserves are important to different people for different purposes. Reserves in this report are proved plus probable 2p reserves estimates. It is clearly not the intent of this paper to interfere with the necessary judgment the reserves evaluator must employ in preparing reserves estimates.
If s g is the gas saturation and b o the oil formation volume factor at. These reserves are recoverable from 489 active fields. Particular emphasis is placed on how these methods change with the type of information avail. Material balance calculations for gas reservoirs, 6.
The amount of reserve from the petroleum reservoir, together with oil and gas prices, operating costs and taxes controls the cash flow of the industry. Estimation of primary oil reserves semantic scholar. It is the process by which the economically recoverable hydrocarbons in a field, area, or region are evaluatedquantitatively. Under this license, the society of petroleum engineers and the oil and gas reserves committee allows derivatives to be created for internal, noncommercial company distribution only. Shale gas is becoming increasingly important globally. Estimating auditing reserves information june 2019 5 article ithe basis and purpose of developing standards pertaining to the estimating and 1auditing of oil and gas reserves information 1. Standards pertaining to the estimating and auditing of oil. Security and exchange commission secbooked reserves by some oil companies in 2004 brought the topic under public scrutiny. The aim of these systems is to establish a set of criteria that can be used to determine the reliability of a particular estimation of reserves. Chapter 11 oil and gas reserve estimation methods sciencedirect. Technically recoverable shale oil and shale gas resources.
Pdf an improper estimation of an oil and gas reservoir will have considerable inimical effect on the economical output of that reservoir. Nov 23, 2018 an accurate estimation of oil and gas reserves is a key to the success of every field development, and this continues throughout the life of the field. If a reservoir comprises a closed system and contains singlephase gas, the pressure in the reservoir will decline proportionately to the amount of gas produced. Although there are reports of res that range from 5 to 20% oip, no general correlations are available that relate specific rockfluid properties and res for heavy oil. Keywords estimation, production, trend analysis, oil and gas i. Large oil fields have a significant impact on the accounting of total reserves as almost half of the world oil production is coming from less than 3% of the total number of oil fields also half.
The basic methods employed in reserve estimation calculations can be broadly classified into analytical and empirical categories. A supplement to the spewpc petroleum reserves definitions and the. Estimation and classification of reserves of crude oil. Hence reserves will change with the price, unlike oil resources, which include all oil that can be technically recovered at any price. Magnitude of uncertainty in reserves estimates the oil and gas reserves estimation methods can be grouped into the following categories. Reporting data on oil production or oil reserves is a political act. Material balance calculation is an excellent tool for estimating gas reserves. Prediction of reservoir performance applying decline curve analysis. Crude oil and natural gas proved reserves, 2012, provides reliable estimates of u. The reserves must be discovered, recoverable, commercial and remaining. There are several methods available for hydrocarbon reserves estimation and these are analogy, volumetric, decline analysis, material balance and reservoir simulation.