Toward understanding oil and gas reserves. [Problems in estimating reserves]

Journal Article · Thu Feb 03 04:00:00 EST 1977 · Public Util. Fortn.; (United States)

OSTI ID:7313470

Keplinger, H F

Accurate determinations of oil and gas reserves should be feasible if engineers and accountants will work together in developing reliable calculations and data. Problems encountered in estimating reserves are reviewed in this article to help the public understand some of the seeming discrepancies between an industry's reserve estimates and its financial data. Reserves are divided into proven, probable, possible, and potential, as developed by sophisticated geological and geophysical mapping of reservoirs. Recovery factor (the percent of oil or gas that can be removed) determines whether solution gas drive, water drive, gas cap expansion, gravity drainage, or some other mechanism is used to effect recovery. A range of samples and readings is used, the results requiring subjective and intuitive evaluation. During the lifetime of a well, estimates will be made at four points: geological (before drilling), at initial completion, at midlife (after enough drilling has been done to show a trend), and at the economic limit. Examples are drawn to show how two different engineers can reach different results from the same information. Further complications arise when these reserves are converted to dollars because of the unknown levels of future costs and prices. (DCK)

• Research Organization: Keplinger and Associates, Inc., Houston, TX
• OSTI ID: 7313470
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 99:3; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020100 -- Petroleum-- Reserves-- (-1989)
03 NATURAL GAS
030100 -- Natural Gas-- Reserves-- (-1989)
29 ENERGY PLANNING, POLICY, AND ECONOMY
294000* -- Energy Planning & Policy-- Fossil Fuels
ACCOUNTING
AVAILABILITY
DATA
DATA COMPILATION
ECONOMICS
ENERGY SOURCES
EXPLORATION
EXTRACTION
FINANCIAL DATA
FLUIDS
FORECASTING
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GEOLOGIC DEPOSITS
GEOLOGICAL SURVEYS
INFORMATION
MANAGEMENT
NATURAL GAS
NATURAL GAS DEPOSITS
OIL YIELDS
PETROLEUM
PETROLEUM DEPOSITS
PUBLIC RELATIONS
RESERVES
RESOURCES
SEPARATION PROCESSES
YIELDS