112 PETROLEUM TECHNOLOGY, ECONOMICS, AND POLITICS
best laid plans and numbers are subject to debate. As a result, the
classification of reserves is discussed here so that the reader may
compare the recognized systems of reserve classification and wonder why all oil-producing countries do not subscribe to similar systems or develop their own systems. In fact, the reserves estimates
of various oil-producing nations have already come under question
(Campbell and Laherrère, 1998; Aluko, 2004).
Reporting data on oil production or oil reserves is either a technical or a political act. The Society of Petroleum Engineers classify
crude oil reserves to satisfy the technical needs, while the Securities
Exchange Commission (SEC) classify reserves to satisfy bankers and shareholders and requires 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.
Various definitions have been applied to energy reserves, but the
crux of the matter is the amount of a resource that is recoverable
using current technology. In fact, the definitions that are used to
describe petroleum reserves are often misunderstood because they
are not adequately defined at the time of use. Therefore, as a means
of alleviating this problem, it is pertinent to consider the definitions
used to describe the amount of petroleum that remains in subterranean reservoirs.
Petroleum is a resource; in particular, petroleum is a fossil fuel
resource. A resource is the entire commodity that exists in the sediments and strata, whereas the reserves represent that fraction of a
commodity that can be recovered economically.
Reserves are those quantities of petroleum claimed to be commercially recoverable by application of development projects to
known accumulations under defined conditions. Reserves must
satisfy four criteria:
1. They must be discovered through one or more exploratory wells
2. They must be recoverable using existing technology
3. They must be commercially viable
4. They must be remaining in the ground.
As already noted (Chapter 2) one of the basic requirements
of reservoir studies is to provide certifications of oil and gas
reserves and resources, which is known as reservoir evaluation.
Crude oil reserves are the estimated quantities of crude oil that
best laid plans and numbers are subject to debate. As a result, the
classification of reserves is discussed here so that the reader may
compare the recognized systems of reserve classification and wonder why all oil-producing countries do not subscribe to similar systems or develop their own systems. In fact, the reserves estimates
of various oil-producing nations have already come under question
(Campbell and Laherrère, 1998; Aluko, 2004).
Reporting data on oil production or oil reserves is either a technical or a political act. The Society of Petroleum Engineers classify
crude oil reserves to satisfy the technical needs, while the Securities
Exchange Commission (SEC) classify reserves to satisfy bankers and shareholders and requires 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.
Various definitions have been applied to energy reserves, but the
crux of the matter is the amount of a resource that is recoverable
using current technology. In fact, the definitions that are used to
describe petroleum reserves are often misunderstood because they
are not adequately defined at the time of use. Therefore, as a means
of alleviating this problem, it is pertinent to consider the definitions
used to describe the amount of petroleum that remains in subterranean reservoirs.
Petroleum is a resource; in particular, petroleum is a fossil fuel
resource. A resource is the entire commodity that exists in the sediments and strata, whereas the reserves represent that fraction of a
commodity that can be recovered economically.
Reserves are those quantities of petroleum claimed to be commercially recoverable by application of development projects to
known accumulations under defined conditions. Reserves must
satisfy four criteria:
1. They must be discovered through one or more exploratory wells
2. They must be recoverable using existing technology
3. They must be commercially viable
4. They must be remaining in the ground.
As already noted (Chapter 2) one of the basic requirements
of reservoir studies is to provide certifications of oil and gas
reserves and resources, which is known as reservoir evaluation.
Crude oil reserves are the estimated quantities of crude oil that