Reserve Engineering: A Universal Language
Reserve engineers evaluate and quantify oil and natural gas reserves and resources, a key driver of value for oil and gas exploration and production. To accomplish this, it is important to have an understanding of the factors affecting reserve estimates as well as the standard approach for reservoir engineers follow.
Reserve Engineers couldn't always rely on consistent nomenclature and classification systems when evaluating a petroleum reservoir. It wasn't until 1997 when the approval of the petroleum reserves definitions was made and soon after a resource classification system. And even still, numerous supplications and amendments have been made to those original definitions. Understanding these terms and definitions and staying abreast of their updates, as well as knowing how to this information is paramount to reserve engineers as they assist clients in obtaining a reliable determination of value.
Seasoned Reserve Engineers understand that the application of reliable standards, when applied correctly in this unpredictable and often volatile landscape, bring clarity and value to our clients.
Probability to proved reserves
According to the Society of Petroleum Engineers, when proved reserves are estimated using probabilistic methodologies, there is greater than a 90% probability of recovery of those estimates. Having the right reservoir engineer on your team is crucial to fulfilling that potential.
New technologies recognized
Technological development is moving at lightning speed. For a client to receive the most accurate estimate of recoverable volumes, taking into account the latest technologies is imperative, something for which experienced reservoir engineers and accurate classification systems account.
Evolution of financial and economic conditions recognized
Reserve Engineers understand that the financial and economic conditions in the oil market are constantly evolving. The industry forecast today has shifted significantly over the past few years, not just in decreased demand, but in the discovery of robust new reserves all around the world. Reservoir engineers help provide clarity to these changes by applying their expertise, utilizing their understanding veteran experience of things such as average pricing periods.
Reserve Engineering Consultants—demonstrating an understanding of the factors affecting reserve estimates and properly applying the definitions and classifications with consistency—provide clarity and confidence, allowing our clients to focus their efforts instead on production growth.