50 PETROLEUM TECHNOLOGY, ECONOMICS, AND POLITICS
A depletable resource, is a resource (crude oil and natural gas in
the current context) for which the natural replenishment feedback
loop can be safely ignored. With depletable resources, storage, such
as the strategic petroleum reserve, provides a way of extending the
economic life of a resource. On the other hand, a renewable resource
(e.g. biomass) is a resource with a natural replenishment rate that
augments its own stock (or biomass) at a non-negligible rate.
Current reserves are those resources that can profitably be
extracted at current prices. Even though current reserve is usually given as a number, it usually fluctuates with prices. Potential
reserves refer to the relationship between the market price for the
resource and the amount of the resource that can be profitably
extracted at that price. The higher the price, the greater the potential reserves.
Resource endowment is the natural occurrence of resources in
the earth's crust, which provides an upper boundary on the available (terrestrial) resources.
Finally, the static reserve index is the ratio of current reserves
to current consumption and is expressed in terms of the number
of years a given resource will last. However, this index is accurate
if and only (1) the consumption rate continues at its current level,
and (2) no new additions to reserves occur during the intervening
period.
2.4.2 Development of Resources
In the extrapolation and development of petroleum resources, the
properties of interest are the porosity, saturation, chemistry, and
mobility. These are in pursuit of the following information:
1. The porosity of the reservoir rock and whether or not
there sufficient porosity for the fluid to exist,
2. The types of fluids in the reservoir,
3. The extent of the oil saturation, i.e. the extent to which
the porosity of filled with oil,
4. The mobility of the oil.
None of the above can be measured directly. They are measured
in conjunction with some other parameters. For example, the injection of an electric current and the measurement of voltage response
determine the electrical resistivity — the property that describes
A depletable resource, is a resource (crude oil and natural gas in
the current context) for which the natural replenishment feedback
loop can be safely ignored. With depletable resources, storage, such
as the strategic petroleum reserve, provides a way of extending the
economic life of a resource. On the other hand, a renewable resource
(e.g. biomass) is a resource with a natural replenishment rate that
augments its own stock (or biomass) at a non-negligible rate.
Current reserves are those resources that can profitably be
extracted at current prices. Even though current reserve is usually given as a number, it usually fluctuates with prices. Potential
reserves refer to the relationship between the market price for the
resource and the amount of the resource that can be profitably
extracted at that price. The higher the price, the greater the potential reserves.
Resource endowment is the natural occurrence of resources in
the earth's crust, which provides an upper boundary on the available (terrestrial) resources.
Finally, the static reserve index is the ratio of current reserves
to current consumption and is expressed in terms of the number
of years a given resource will last. However, this index is accurate
if and only (1) the consumption rate continues at its current level,
and (2) no new additions to reserves occur during the intervening
period.
2.4.2 Development of Resources
In the extrapolation and development of petroleum resources, the
properties of interest are the porosity, saturation, chemistry, and
mobility. These are in pursuit of the following information:
1. The porosity of the reservoir rock and whether or not
there sufficient porosity for the fluid to exist,
2. The types of fluids in the reservoir,
3. The extent of the oil saturation, i.e. the extent to which
the porosity of filled with oil,
4. The mobility of the oil.
None of the above can be measured directly. They are measured
in conjunction with some other parameters. For example, the injection of an electric current and the measurement of voltage response
determine the electrical resistivity — the property that describes