How are hydrocarbon reserves estimated

admin 2016-06-02 16:21

How are hydrocarbon reserves estimated ?

There is no universally adopted system according to which hydrocarbon reserves could be classified, but there are some common standards. Russia has recently brought its system closer to them.

Soviet heritage

Hydrocarbon reserves mean the amount of fossil minerals in the Earth’s subsurface, identified during geological exploration and specifically determined at the beginning of production. A classification system was developed in the USSR in 1928. According to this system, reserves were classified as developed proved (category A), explored (category B), and inferred (category C) reserves.

New Russian system

Soviet system of reserves assessment has been improved with time and formed the basis for a new one, which is closer to the international classification standards adopted in 2001. New Russian system suggests the division to the explored reserves (categories A, B, С1), preliminary estimated reserves (category С2), in-place resources (category С3) and forecast resources (category D1, D2). However, Russian standards remain significantly different from the international ones.

PRMS

In 2007, the Society of Petroleum Engineers (SPE) developed the Petroleum Resources Management System (PRMS). According to the PRMS standards, reserves are classified as proved, probable, and possible. Considered is therefore not only the fact of hydrocarbon discovery in the subsurface, but also the economic efficiency of production. All costs involved in production and transportation, current prices for hydrocarbon feedstock, and other factors are taken into account.

Still stricter – SEC

There are also standards adopted by the US Securities and Exchange Commission (SEC). SEC standards are the strictest, as they set forth most serious requirements for the category of “proved” reserves and consider the period of validity of the license: reserves may not be recognized as proved if their extraction is planned after the expiry of the license.

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How are hydrocarbon reserves estimated