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It is impossible to precisely measure underground accumulations of oil and natural gas. Reserve engineering involves complex, subjective estimates and assumptions about future oil & gas prices, production levels, and operating and development costs. Consequently, estimates of proved reserves, projections of future production rates, and the timing of development expenditures may not always be accurate.

Petroleum reserves are critical to the oil and gas industry, representing the recoverable amount of oil, gas, and natural gas liquids over time. Reserve forecasts are used by companies for planning, budgeting, and capital allocation, while energy lenders, investors, and government agencies rely on reserve estimates to make significant financial and policy decisions. However, the process of estimating and reporting reserves is often misunderstood outside the reservoir engineering profession, leading to misinformed decisions and financial risks.

This book addresses the gap in non-technical resources on oil & gas reserves and reserve reporting, providing readers with an easily understandable yet thorough examination of the key concepts and principles behind reserve estimation and reporting. It aims to demystify the complexities of oil & gas reserves and guide decision-makers through the fundamentals of reserve evaluation and reporting. It is designed to become the go-to reference for energy and finance professionals across the globe, offering critical insights into oil & gas reserves and reserve reporting. It aims to be a valuable resource found on the desks of professionals who rely on reserves and reserve reports for making key decisions related to forecasts, investments, capital allocation, and valuation.

Features & Benefits

Foundational Guide to Reservoir and Geological Principles: A clear introduction to the core reservoir and geological concepts essential for understanding reserve reporting.
Quick Reference for Reserve Classifications and Categories: A user-friendly resource to easily look up and comprehend the different reserve classes and categories used by various reporting agencies.
Non-Technical Overview of Reserve Calculation and Reporting: A straightforward explanation of how reserves are calculated and how reserve reports are generated, tailored for non-technical readers.
How to Interpret and Analyze Reserve Reports: Practical guidance on reading and interpreting the diverse types of reserve reports used in the industry.
Understanding the Limitations of Reserve Estimates: A key explanation of the inherent uncertainties and limitations that come with any reserve estimate or report.
Evaluating the Strengths and Weaknesses of Reserve Reports: Insight into the strengths and potential shortcomings of any reserve report to help assess its reliability.
Introduction to Reserve-Backed Metrics for Report Validation: A beginner's guide to the most critical reserve-backed metrics and how to use them for validating reserve reports.
Holistic Risk Assessment of Reserve Reports: A comprehensive approach to quantifying and understanding the overall risk associated with reserve estimates and reports.

Audience

Petroleum engineers
Geologists
Field level personnel
Management
Energy lending and finance professionals
Government agenceis
Anyone who seeks to understand how, or relies upon, energy markets
Students