CRUDE OIL CLASSIFICATION AND BENCHMARKS
117
Reserves are those quantities of petroleum which are anticipated to be commercially recovered from known accumulations from a given date forward (http://www.spe.org/spe/jsp/
basic/0„1104_1718,00.html).
Estimated recoverable quantities from known accumulations
that do not fulfill the requirement of commerciality should be classified as contingent resources, as defined below. The definition of
commerciality for an accumulation will vary according to local conditions and circumstances and is left to the discretion of the country
or company concerned. However, reserves must still be categorized according to specific criteria, therefore proved reserves will
be limited to those quantities that are commercial under current
economic conditions, while probable and possible reserves may be
based on future economic conditions. In general, quantities should
not be classified as reserves unless there is an expectation that the
accumulation will be developed and placed on production within a
reasonable timeframe.
In certain circumstances, reserves may be assigned even though
development may not occur for some time. An example of this
would be where fields are dedicated to a long-term supply contract
and will only be developed as and when they are required to satisfy
that contract.
Contingent resources are those quantities of petroleum that
are estimated, on a given date, to be potentially recoverable from
known accumulations, but which are not currently considered as
commercially recoverable. Some ambiguity may exist between the
definitions of contingent resources and unproved reserves. This is a
reflection of variations in current industry practice, but if the degree
of commitment is not such that the accumulation is expected to be
developed and placed on production within a reasonable timeframe, the estimated recoverable volumes for the accumulation
be classified as contingent resources. Contingent resources may
include, for example, accumulations for which there is currently no
viable market, or where commercial recovery is dependent on the
development of new technology, or where evaluation of the accumulation is still at an early stage.
Undiscovered petroleum initially in place is that quantity of
petroleum that is estimated, on a given date, to be contained in accumulations that are yet to be discovered. The estimated potentially
recoverable portion of undiscovered petroleum initially in place
is classified as prospective resources, which are those quantities
117
Reserves are those quantities of petroleum which are anticipated to be commercially recovered from known accumulations from a given date forward (http://www.spe.org/spe/jsp/
basic/0„1104_1718,00.html).
Estimated recoverable quantities from known accumulations
that do not fulfill the requirement of commerciality should be classified as contingent resources, as defined below. The definition of
commerciality for an accumulation will vary according to local conditions and circumstances and is left to the discretion of the country
or company concerned. However, reserves must still be categorized according to specific criteria, therefore proved reserves will
be limited to those quantities that are commercial under current
economic conditions, while probable and possible reserves may be
based on future economic conditions. In general, quantities should
not be classified as reserves unless there is an expectation that the
accumulation will be developed and placed on production within a
reasonable timeframe.
In certain circumstances, reserves may be assigned even though
development may not occur for some time. An example of this
would be where fields are dedicated to a long-term supply contract
and will only be developed as and when they are required to satisfy
that contract.
Contingent resources are those quantities of petroleum that
are estimated, on a given date, to be potentially recoverable from
known accumulations, but which are not currently considered as
commercially recoverable. Some ambiguity may exist between the
definitions of contingent resources and unproved reserves. This is a
reflection of variations in current industry practice, but if the degree
of commitment is not such that the accumulation is expected to be
developed and placed on production within a reasonable timeframe, the estimated recoverable volumes for the accumulation
be classified as contingent resources. Contingent resources may
include, for example, accumulations for which there is currently no
viable market, or where commercial recovery is dependent on the
development of new technology, or where evaluation of the accumulation is still at an early stage.
Undiscovered petroleum initially in place is that quantity of
petroleum that is estimated, on a given date, to be contained in accumulations that are yet to be discovered. The estimated potentially
recoverable portion of undiscovered petroleum initially in place
is classified as prospective resources, which are those quantities