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;'''Analogous reservoir''' | ;'''Analogous reservoir''' | ||
: An analogous reservoir is one in the same geographic area that is formed by the same, or very similar geological processes as, a reservoir in question (or under study for reserves evaluation) as regards sedimentation, diagenesis, pressure, temperature, chemical and mechanical history, and structure. It also has the same or similar geologic age, geologic features, and reservoir rock and fluid properties. Analogous features and characteristics can include approximate depth, pressure, temperature, reservoir drive mechanism, original fluid content, oil gravity, reservoir size, gross thickness, pay thickness, net-to-gross ratio, lithology, heterogeneity, porosity and permeability. The development scheme for a reservoir (e.g. as reflected by well spacing) can also be important in establishing the relevance of the analogy [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | : An analogous reservoir is one in the same geographic area that is formed by the same, or very similar geological processes as, a reservoir in question (or under study for reserves evaluation) as regards sedimentation, diagenesis, pressure, temperature, chemical and mechanical history, and structure. It also has the same or similar geologic age, geologic features, and reservoir rock and fluid properties. Analogous features and characteristics can include approximate depth, pressure, temperature, reservoir drive mechanism, original fluid content, oil gravity, reservoir size, gross thickness, pay thickness, net-to-gross ratio, lithology, heterogeneity, porosity and permeability. The development scheme for a reservoir (e.g. as reflected by well spacing) can also be important in establishing the relevance of the analogy [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:Analogous reservoirs, as used in resources assessments, have similar rock and fluid properties, reservoir conditions (depth, temperature and pressure) and drive mechanisms, but are typically at a more advanced stage of development than the reservoir of interest and thus may provide concepts to assist in the interpretation of more limited data and estimation of recovery [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 3.4.1]]. | |||
;<div id="Approved for development">'''Approved for development'''</div> | ;<div id="Approved for development">'''Approved for development'''</div> | ||
:All necessary approvals have been obtained, capital funds have been committed, and implementation of the development project is under way [[#PRMS 2007|Table 1: Definition: Recoverable Resources Classes and Sub-Classes - 2007]]. | :All necessary approvals have been obtained, capital funds have been committed, and implementation of the development project is under way [[#PRMS 2007|Table 1: Definition: Recoverable Resources Classes and Sub-Classes - 2007]] & [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007]]. | ||
:At this point, it must be certain that the development project is going ahead. The project must not be subject to any contingencies such as outstanding regulatory approvals or sales contracts. Forecast capital expenditures should be included in the reporting entity’s current or following year’s approved budget. | :At this point, it must be certain that the development project is going ahead. The project must not be subject to any contingencies such as outstanding regulatory approvals or sales contracts. Forecast capital expenditures should be included in the reporting entity’s current or following year’s approved budget. | ||
:The project '''“decision gate”''' is the decision to start investing capital in the construction of production facilities and/or drilling development wells [[#PRMS 2007|Table 1 Guidelines: Recoverable Resources Classes and Sub-Classes - 2007]]. | :The project '''“decision gate”''' is the decision to start investing capital in the construction of production facilities and/or drilling development wells [[#PRMS 2007|Table 1 Guidelines: Recoverable Resources Classes and Sub-Classes - 2007]]. | ||
:Sub-class of [[#Reserves|Reserves]] [[#PRMS 2007|Table 1: Recoverable Resources Classes and Sub-Classes - 2007]]. | :Sub-class of [[#Reserves|Reserves]] [[#PRMS 2007|Table 1: Recoverable Resources Classes and Sub-Classes - 2007]]. | ||
;'''Associated gas''' :Associated Gas is a natural gas found in contact with or dissolved in crude oil in the reservoir. It can be further categorized as Gas-Cap Gas or Solution Gas [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;Assessment | ||
:See Evaluation [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 1.2]]. | |||
;'''Associated gas''' :Associated Gas is a natural gas found in contact with or dissolved in crude oil in the reservoir. It can be further categorized as Gas-Cap Gas or Solution Gas [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]] & [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 3.4.1]]. | |||
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==B== | ==B== | ||
;'''Barrels of oil equivalent''' : See [[#Crude oil equivalent|Crude oil equivalent]] [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Barrels of oil equivalent''' | ||
:See [[#Crude oil equivalent|Crude oil equivalent]] [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]] & [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2001 - 3.7]]. | |||
;'''Basin-centered gas''' | |||
:An unconventional natural gas accumulation that is regionally pervasive and characterized by low permeability, abnormal pressure, gas saturated reservoirs and lack of a down-dip water leg [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.4]]. | |||
;<div id="Behind-pipe reserves">'''Behind-pipe reserves'''</div>:Behind-pipe reserves are expected to be recovered from zones in existing wells, which will require additional completion work or future recompletion prior to the start of production. In all cases, production can be initiated or restored with relatively low expenditure compared to the cost of drilling a new well [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.1.3.1]]. | |||
; | ;'''Best estimate''' | ||
:With respect to resource categorization, this is considered to be the best estimate of the quantity that will actually be recovered from the accumulation by the project. It is the most realistic assessment of recoverable quantities if only a single result were reported. If probabilistic methods are used, there should be at least a 50% probability (P50) that the quantities actually recovered will equal or exceed the best estimate [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.2.2 & 2001- 2.5]]. | |||
;'''Bitumen''' : | ;'''Bitumen''' : | ||
:See [[#Natural bitumen|Natural bitumen]] | :See [[#Natural bitumen|Natural bitumen]] [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.4]]. | ||
;'''Buy back agreement''' :An agreement between a host government and a contractor under which the host pays the contractor an agreed price for all volumes of hydrocarbons produced by the contractor. Pricing mechanisms typically provide the contractor with an opportunity to recover investment at an agreed level of profit. These agreements may include financial incentives for more efficient, lower cost developments and production levels higher than the minimum level agreed. These agreements may give rights to oil volumes and generally carry a risk for the contractor. They may allow booking of reserves. | ;'''Buy back agreement''' :An agreement between a host government and a contractor under which the host pays the contractor an agreed price for all volumes of hydrocarbons produced by the contractor. Pricing mechanisms typically provide the contractor with an opportunity to recover investment at an agreed level of profit. [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]] & [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007]]. | ||
:These agreements may include financial incentives for more efficient, lower cost developments and production levels higher than the minimum level agreed. These agreements may give rights to oil volumes and generally carry a risk for the contractor. They may allow booking of reserves [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | |||
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==C== | ==C== | ||
;'''Carried interest''' :A carried interest is an agreement under which one party (the carrying party) agrees to pay for a portion or all of the pre-production costs of another party (the carried party) on a license in which both own a portion of the working interest. This arises when the carried party is either unwilling to bear the risk of exploration or is unable to fund the cost of exploration or development directly. Owners may enter into carried interest arrangements with existing or incoming joint venture partners at the exploration stage, the development stage, or both [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Carried interest''' :A carried interest is an agreement under which one party (the carrying party) agrees to pay for a portion or all of the pre-production costs of another party (the carried party) on a license in which both own a portion of the working interest [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]] & [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2001 - 9.6.7]]. | ||
:This arises when the carried party is either unwilling to bear the risk of exploration or is unable to fund the cost of exploration or development directly. Owners may enter into carried interest arrangements with existing or incoming joint venture partners at the exploration stage, the development stage, or both [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | |||
;'''Chance''' | |||
:Chance is 1- Risk | |||
:See [[#Risk|Risk]] [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 1.1]]. | |||
;'''Coalbed methane''' :Natural gas contained in coal deposits, whether or not stored in gaseous phase. Coalbed methane, though usually mostly methane, may be produced with variable amounts of inert or even non-inert gases [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Coalbed methane (CBM)''' :Natural gas contained in coal deposits, whether or not stored in gaseous phase. Coalbed methane, though usually mostly methane, may be produced with variable amounts of inert or even non-inert gases [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]] & [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.4]]. | ||
:Also terms Caol Seam Gas, CSG, or Natural Gas from Coal, NGC [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.4]]. | |||
;'''Commercial''' :A project is commercial if the degree of commitment is such that the accumulation is expected to be developed and placed on production within a reasonable time frame. A reasonable time frame for the initiation of development depends on the specific circumstances but, in general, should be limited to around 5 years [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Commercial''' :A project is commercial if the degree of commitment is such that the accumulation is expected to be developed and placed on production within a reasonable time frame. A reasonable time frame for the initiation of development depends on the specific circumstances but, in general, should be limited to around 5 years [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:When a project is commercial, this implies that the essential social, environmental and economic conditions are met, including political, legal, regulatory and contractual conditions. In addition, a project is commercial if the degree of commitment is such that the accumulation is expected to be developed and placed on production within a reasonable time frame. While 5 years is recommended as a benchmark, a longer time frame could be applied where, for example, development of economic projects are deferred at the option of the producer for, among other things, market-related reasons, or to meet contractual or strategic objectives. In all cases, the justification for classification as Reserves should be clearly documented [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.1.2 & Table 1]]. | |||
;'''Committed project''' :Petroleum development projects are committed when firm commitments have been made for the expenditures and activities needed to bring a discovered accumulation to the production stage. Undeveloped projects are committed only when it can be clearly demonstrated that there is intent to develop them and bring them to production. Intent may be demonstrated with firm funding/financial plans, declarations of commerciality, regulatory approvals and satisfaction of other conditions that would otherwise prevent the project from being developed and brought to production. These commitments should be unconditional, except for timing that may be dependent on the development of prior committed projects. An example of this would be where production is dedicated to a long-term sales contract and will only be developed as and when the capacity is required to satisfy the contract [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Committed project''' :Petroleum development projects are committed when firm commitments have been made for the expenditures and activities needed to bring a discovered accumulation to the production stage. Undeveloped projects are committed only when it can be clearly demonstrated that there is intent to develop them and bring them to production. Intent may be demonstrated with firm funding/financial plans, declarations of commerciality, regulatory approvals and satisfaction of other conditions that would otherwise prevent the project from being developed and brought to production. These commitments should be unconditional, except for timing that may be dependent on the development of prior committed projects. An example of this would be where production is dedicated to a long-term sales contract and will only be developed as and when the capacity is required to satisfy the contract [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:Projects are committed only when it can be demonstrated that there is a firm intention to develop them and bring them to production. Intention may be demonstrated with funding/financial plans and declaration of commerciality based on realistic expectations of regulatory approvals and reasonable satisfaction of other conditions that would otherwise prevent the project from being developed and brought to production [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.1.2 and Table 1]]. | |||
;'''Completion''' :Completion of a well. The process by which a well is brought to its final classification - basically dry hole, producer, or injector. A dry hole is completed by plugging and abandonment. A well deemed to be producible of petroleum, or used as an injector, is completed by establishing a connection between the reservoir(s) and the surface so that fluids can be produced from, or injected into the reservoir. Various methods are utilized to establish this connection, but they commonly involve the installation of some combination of borehole equipment, casing and tubing, and surface injection or production facilities [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Completion''' :Completion of a well. The process by which a well is brought to its final classification - basically dry hole, producer, or injector. A dry hole is completed by plugging and abandonment. A well deemed to be producible of petroleum, or used as an injector, is completed by establishing a connection between the reservoir(s) and the surface so that fluids can be produced from, or injected into the reservoir. Various methods are utilized to establish this connection, but they commonly involve the installation of some combination of borehole equipment, casing and tubing, and surface injection or production facilities [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:Completion of a well. The process by which a well is brought to its final classification—basically dry hole, producer, injector, or monitor well. A dry hole is normally plugged and abandoned. A well deemed to be producible of petroleum, or used as an injector, is completed by establishing a connection between the reservoir(s) and the surface so that fluids can be produced from, or injected into, the reservoir. Various methods are utilized to establish this connection, but they commonly involve the installation of some combination of borehole equipment, casing and tubing, and surface injection or production facilities [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007]]. | |||
;'''Completion interval''' :The specific reservoir interval(s) that is (are) open to the borehole and connected to the surface facilities for production or injection [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Completion interval''' :The specific reservoir interval(s) that is (are) open to the borehole and connected to the surface facilities for production or injection [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:The specific reservoir interval(s) that is (are) open to the borehole and connected to the surface facilities for production or injection, or reservoir intervals open to the wellbore and each other for injection purposes [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007]]. | |||
;'''Concession''' :A grant of access for a defined area and time period that transfers certain rights to hydrocarbons that may be discovered from the host country to an enterprise. The enterprise is generally responsible for exploration, development, production and sale of hydrocarbons that may be discovered. Typically granted under a legislated fiscal system where the host country collects taxes, fees and sometimes royalty on profits earned [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Concession''' :A grant of access for a defined area and time period that transfers certain rights to hydrocarbons that may be discovered from the host country to an enterprise. The enterprise is generally responsible for exploration, development, production and sale of hydrocarbons that may be discovered. Typically granted under a legislated fiscal system where the host country collects taxes, fees and sometimes royalty on profits earned [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:A grant of access for a defined area and time period that transfers certain entitlements to produced hydrocarbons from the host country to an enterprise. The enterprise is generally responsible for exploration, development, production, and sale of hydrocarbons that may be discovered. Typically granted under a legislated fiscal system where the host country collects taxes, fees, and sometimes royalty on profits earned [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2001 - 9.6.1]]. | |||
;'''Condensate''' :Condensates are a portion of natural gas of such composition that are in the gaseous phase at temperature and pressure of the reservoirs, but that, when produced, are in the liquid phase at surface pressure and temperature [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Condensate''' :Condensates are a portion of natural gas of such composition that are in the gaseous phase at temperature and pressure of the reservoirs, but that, when produced, are in the liquid phase at surface pressure and temperature [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:Condensates are a mixture of hydrocarbons (mainly pentanes and heavier) that exist in the gaseous phase at original temperature and pressure of the reservoir, but when produced, are in the liquid phase at surface pressure and temperature conditions. Condensate differs from natural gas liquids (NGL) on two respects: (1) NGL is extracted and recovered in gas plants rather than lease separators or other lease facilities; and (2) NGL includes very light hydrocarbons (ethane, propane, butanes) as well as the pentanes-plus that are the main constituents of condensate. [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2001 - 3.2]]. | |||
;<div id="Conditions">'''Conditions'''</div>:The economic, marketing, legal, environmental, social, and governmental factors forecast to exist and impact the project during the time period being evaluated (also termed Contingencies) [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2001 - 3.1]]. | |||
;'''Constant case''' :Modifier applied to project resources estimates and associated cash flows when such estimates are based on those conditions (including costs and product prices) that are fixed at a defined point in time (or period average) and are applied unchanged throughout the project life, other than those permitted contractually. In other words, no inflation or deflation adjustments are made to costs or revenues over the evaluation period [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2001 - 3.1.1]]. | |||
;<div id="Contingency">'''Contingency'''</div> | |||
:See [[#Conditions|Conditions]] [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 3.1 & Table 1]]. | |||
;'''Contingent project''' :Development and production of recoverable quantities has not been justified, due to conditions that may or may not be fulfilled [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Contingent project''' :Development and production of recoverable quantities has not been justified, due to conditions that may or may not be fulfilled [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:Development and production of recoverable quantities has not been committed due to conditions that may or may not be fulfilled [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.1.2]]. | |||
<div id="Contingent resources">'''Contingent resources'''</div> | <div id="Contingent resources">'''Contingent resources'''</div> | ||
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:Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies [[#PRMS 2007|Table 1: Definition: Recoverable Resources Classes and Sub-Classes - 2007]]. | :Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies [[#PRMS 2007|Table 1: Definition: Recoverable Resources Classes and Sub-Classes - 2007]]. | ||
:Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent Resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status [[#PRMS 2007|Table 1: Guidelines: Recoverable Resources Classes and Sub-Classes - 2007]]. | :Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent Resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status [[#PRMS 2007|Table 1: Guidelines: Recoverable Resources Classes and Sub-Classes - 2007]]. | ||
:Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingent Resources are a class of discovered recoverable resources [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 1.1 & Table 1]]. | |||
;'''Continuous-type deposit''' :A petroleum accumulation that is pervasive throughout a large area and which is not significantly affected by hydrodynamic influences. Examples of such deposits include "basin-center" gas and gas hydrate accumulations [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Continuous-type deposit''' :A petroleum accumulation that is pervasive throughout a large area and which is not significantly affected by hydrodynamic influences. Examples of such deposits include "basin-center" gas and gas hydrate accumulations [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:A petroleum accumulation that is pervasive throughout a large area and which is not significantly affected by hydrodynamic influences. Such accumulations are included in Unconventional Resources. Examples of such deposits include “basin-centered ” gas, shale gas, gas hydrates, natural bitumen and oil shale accumulations. | |||
[[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.4 & 2001 - 2.3]]. | |||
;'''Conventional crude oil''' :Petroleum found in liquid form, flowing naturally or capable of being pumped without further processing or dilution. See [[#Crude oil|Crude Oil]]. [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Conventional crude oil''' :Petroleum found in liquid form, flowing naturally or capable of being pumped without further processing or dilution. See [[#Crude oil|Crude Oil]]. [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
: Crude oil flowing naturally or capable of being pumped without further processing or dilution See [[#Crude oil|Crude Oil]] [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.4]]. | |||
;'''Conventional deposit''' :A discrete accumulation related to a localized geological structural feature and/or stratigraphic condition, typically with each accumulation bounded by a down-dip contact with an aquifer, and which is significantly affected by hydrodynamic influences, such as the buoyancy of petroleum in water [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Conventional deposit''' :A discrete accumulation related to a localized geological structural feature and/or stratigraphic condition, typically with each accumulation bounded by a down-dip contact with an aquifer, and which is significantly affected by hydrodynamic influences, such as the buoyancy of petroleum in water [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
;'''Conventional gas''' :Conventional Gas is a natural gas occurring in a normal porous and per- meable reservoir rock, either in the gaseous phase or dissolved in crude oil, and which technically can be produced by normal production practices [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Conventional gas''' :Conventional Gas is a natural gas occurring in a normal porous and per- meable reservoir rock, either in the gaseous phase or dissolved in crude oil, and which technically can be produced by normal production practices [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:Conventional Gas is a natural gas occurring in a normal porous and permeable reservoir rock, either in the gaseous phase or dissolved in crude oil, and which technically can be produced by normal production practices [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.4]]. | |||
;Conventional resources :Conventional resources exist in discrete petroleum accumulations related to localized geological structural features and/or stratigraphic conditions, typically with each accumulation bounded by a downdip contact with an aquifer, and which is significantly affected by hydrodynamic influences such as buoyancy of petroleum in water [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2.4]]. | |||
;'''Conveyance''' :Certain transactions that are in substance borrowings repayable in cash or its equivalent and shall be accounted for as borrowings and may not qualify for the recognition and reporting of oil and gas reserves. These include: 1) a) Cash advances to operators to finance exploration in return for the right to purchase oil or gas discovered. b) Funds advanced for exploration that is repayable by offset against purchases of oil or gas discovered, or in cash if insufficient oil or gas is produced by a specified date. 2) Funds advanced to an operator that are repayable in cash out of the proceeds from a specified share of future production of a producing property, until the amount advanced plus interest at a specified or determinable rate is paid in full, shall be accounted for as a borrowing and do not qualify for the recognition of reserves. The advance is a payable for the recipient of the cash and receivable for the party making the advance. Such transactions fall into a category commonly referred to as production payments [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Conveyance''' :Certain transactions that are in substance borrowings repayable in cash or its equivalent and shall be accounted for as borrowings and may not qualify for the recognition and reporting of oil and gas reserves. These include: 1) a) Cash advances to operators to finance exploration in return for the right to purchase oil or gas discovered. b) Funds advanced for exploration that is repayable by offset against purchases of oil or gas discovered, or in cash if insufficient oil or gas is produced by a specified date. 2) Funds advanced to an operator that are repayable in cash out of the proceeds from a specified share of future production of a producing property, until the amount advanced plus interest at a specified or determinable rate is paid in full, shall be accounted for as a borrowing and do not qualify for the recognition of reserves. The advance is a payable for the recipient of the cash and receivable for the party making the advance. Such transactions fall into a category commonly referred to as production payments [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:Certain transactions that are in substance borrowings repayable in cash or its equivalent and shall be accounted for as borrowings and may not qualify for the recognition and reporting of oil and gas reserves [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 9.6.9]]. | |||
;'''Cost recovery''' :Under a typical production-sharing agreement, the contractor is responsible for the field development and all exploration and development expenses. In return, the contractor recovers costs (investments and operating expenses) out of the gross production stream. The contractor normally receives payment in oil production and is exposed to both technical and market risks [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Cost recovery''' :Under a typical production-sharing agreement, the contractor is responsible for the field development and all exploration and development expenses. In return, the contractor recovers costs (investments and operating expenses) out of the gross production stream. The contractor normally receives payment in oil production and is exposed to both technical and market risks [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:Under a typical production-sharing agreement, the contractor is responsible for the field development and all exploration and development expenses. In return, the contractor recovers costs (investments and operating expenses) out of the gross production stream. The contractor normally receives payment in oil production and is exposed to both technical and market risks [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2001 - 9.6.2 & 9.7.2]]. | |||
;<div id="Crude oil">'''Crude oil'''</div>:Crude Oil is the portion of petroleum that exists in the liquid phase in natural underground reservoirs and remains liquid at atmospheric conditions of pressure and temperature. Crude Oil may include small amounts of non-hydrocarbons produced with the liquids. Crude Oil has a viscosity of less than or equal to 10,000 centipoises at original reservoir temperature and atmospheric pressure, on a gas free basis [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;<div id="Crude oil">'''Crude oil'''</div>:Crude Oil is the portion of petroleum that exists in the liquid phase in natural underground reservoirs and remains liquid at atmospheric conditions of pressure and temperature. Crude Oil may include small amounts of non-hydrocarbons produced with the liquids. Crude Oil has a viscosity of less than or equal to 10,000 centipoises at original reservoir temperature and atmospheric pressure, on a gas free basis [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:Crude oil is the portion of petroleum that exists in the liquid phase in natural underground reservoirs and remains liquid at atmospheric conditions of pressure | |||
and temperature. Crude oil may include small amounts of non-hydrocarbons produced with the liquids but does not include liquids obtained from the processing of natural gas [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2001 - 3.1]]. | |||
;<div id="Crude oil equivalent">'''Crude oil equivalent'''</div> :Converting gas volumes to the oil equivalent is customarily done on the basis of the heating content or calorific value of the fuel. There are a number of methodologies in common use. Before aggregating, the gas volumes first must be converted to the same temperature and pressure. Common industry gas conversion factors usually range between 1.0 barrel of oil equivalent (boe) = 5.6 thousand standard cubic feet of gas (mscf) to 1.0 boe = 6.0 mscf [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;<div id="Crude oil equivalent">'''Crude oil equivalent'''</div> :Converting gas volumes to the oil equivalent is customarily done on the basis of the heating content or calorific value of the fuel. There are a number of methodologies in common use. Before aggregating, the gas volumes first must be converted to the same temperature and pressure. Common industry gas conversion factors usually range between 1.0 barrel of oil equivalent (boe) = 5.6 thousand standard cubic feet of gas (mscf) to 1.0 boe = 6.0 mscf [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:Converting gas volumes to the oil equivalent is customarily done on the basis of the nominal heating content or calorific value of the fuel. There are a number of methodologies in common use. Before aggregating, the gas volumes first must be converted to the same temperature and pressure. Common industry gas conversion factors usually range between 1 barrel of oil equivalent (BOE) = 5,600 standard cubic feet (scf) of gas to 1 BOE = 6,000 scf. (Many operators use 1 BOE = 5,620 scf derived from the metric unit equivalent 1 m³ crude oil = 1,000 m³ natural gas ). (Also termed Barrels of Oil Equivalent.) [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 2001 - 3.7]]. | |||
;'''Cumulative production''' :Production of oil and gas to date [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Cumulative production''' :Production of oil and gas to date [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:The sum of production of oil and gas to date. See [[#Production|Production]] [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 1.1]]. | |||
;'''Current economic conditions''' :Establishment of current economic conditions should include relevant historical petroleum prices and associated costs and may involve an averaging period that is consistent with the purpose of the reserve estimate, appropriate contract obligations, corporate procedures, and government regulations involved in reporting these reserves [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Current economic conditions''' :Establishment of current economic conditions should include relevant historical petroleum prices and associated costs and may involve an averaging period that is consistent with the purpose of the reserve estimate, appropriate contract obligations, corporate procedures, and government regulations involved in reporting these reserves [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
:Establishment of current economic conditions should include relevant historical petroleum prices and associated costs and may involve a defined averaging period. The SPE guidelines recommend that a 1-year historical average of costs and prices should be used as the default basis of “constant case” resources estimates and associated project cash flows [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007 - 3.1.1]]. | |||
;'''Cushion gas volume''' :With respect to underground natural gas storage, Cushion Gas Volume (CGV) | |||
is the gas volume required in a storage field for reservoir management purposes and to maintain adequate minimum storage pressure for meeting working gas volume delivery with the required withdrawal profile. In caverns, the cushion gas volume is also required for stability reasons. The cushion gas volume may consist of recoverable and non-recoverable in-situ gas volumes and injected gas volumes [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007]]. | |||
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==D== | ==D== | ||
;''Deposit'' : Material laid down by a natural process. In resource evaluations, it identifies an | |||
accumulation of hydrocarbons in a reservoir. See [[#Accumulation|Accumulation]] [[#PRMS 2007|Appendix A: Glossary of Terms Used in Resources Evaluations - 2007]]. | |||
;'''Deterministic estimate''' :The method of estimation of reserves or resources is called deterministic if a single best estimate is made based on known geological, engineering, and economic data [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Deterministic estimate''' :The method of estimation of reserves or resources is called deterministic if a single best estimate is made based on known geological, engineering, and economic data [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
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;'''Estimated ultimate recovery''' :Those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from an accumulation, plus those quantities already produced therefrom [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Estimated ultimate recovery''' :Those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from an accumulation, plus those quantities already produced therefrom [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
;<div id="Evaluation">'''Evaluation'''</div> | |||
;'''Evaluation''' | |||
;'''Exploration''' :Prospecting for undiscovered petroleum [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Exploration''' :Prospecting for undiscovered petroleum [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
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;'''Reversionary interest''' :The right of future possession of an interest in a property when a specified condition has been met [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Reversionary interest''' :The right of future possession of an interest in a property when a specified condition has been met [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
;'''Risk''' :The probability of loss or failure. As “risk” is generally associated with the negative outcome, the term “chance” is preferred for general usage to describe the probability of a discrete event occurring [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;<div id="Risk">'''Risk'''</div> | ||
:The probability of loss or failure. As “risk” is generally associated with the negative outcome, the term “chance” is preferred for general usage to describe the probability of a discrete event occurring [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | |||
;'''Risk and reward''' :Risk and reward associated with oil and gas production activities stems primarily from the variation in revenues from technical and economic risks. Many companies use exposure to risk in conjunction with the rights that they are assigned to operate and to take volumes in kind to support reserves reporting. Technical risk affects a company's ability to physically extract and recover hydrocarbons and is usually dependent on a number of technical parameters. Economic risk is a function of the success of a project and is critically dependent on the ability to economically recover the in-place hydrocarbons [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ;'''Risk and reward''' :Risk and reward associated with oil and gas production activities stems primarily from the variation in revenues from technical and economic risks. Many companies use exposure to risk in conjunction with the rights that they are assigned to operate and to take volumes in kind to support reserves reporting. Technical risk affects a company's ability to physically extract and recover hydrocarbons and is usually dependent on a number of technical parameters. Economic risk is a function of the success of a project and is critically dependent on the ability to economically recover the in-place hydrocarbons [[#PRMS 2005|Glossary of Reserves/Resources Terminology - 2005]]. | ||
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