spe/wpc/aapg petroleum resource classification€¦ross petroleum june 2004 spe/wpc/aapg petroleum...

Ross PetroleumJune 2004

SPE/WPC/AAPG Petroleum Resource Classification

UNSD/ESCWA/OPECSeminar on the UNFC

Presented by Dr. Jim RossBeirut, June 2004


SPE/WPC/AAPG Petroleum Resource Classification System

Society of Petroleum Engineers (SPE)– Oil and Gas Reserves Committee

World Petroleum Congresses (WPC)American Association of Petroleum Geologists (AAPG)


Outline

Brief history of petroleum resource classification systemsSPE/WPC/AAPG petroleum resource classification systemExternal petroleum reserve reporting by public companiesIncorporation into UNFCConclusions


Petroleum Resource Classification Systems

Former Soviet Union system – 1920sSPE definition of proved reserves – 1965McKelvey Box – 1972SPE definitions for probable and possible reserves – 1987WPC resource system and definitions – 1987SPE/WPC reserve definitions – 1997SPE/WPC/AAPG resource definitions and classification system – 2000


Outline



McKelvey BoxResource Classification System

DISCOVERED UNDISCOVERED

CO

MM

ERC

IAL

SUB

-CO

MM

ERC

IAL

RESERVES

RESOURCES


McKelvey Box – incorrect use


CO

MM

ERC

IAL

SUB

-CO

MM

ERC

IAL

ProvedReserves

PROSPECTIVERESOURCES

ProbableReserves

PossibleReserves


McKelvey BoxSPE/WPC/AAPG Terminology


CO

MM

ERC

IAL

SUB

-CO

MM

ERC

IAL

RESERVES


CONTINGENTRESOURCES


A Consistent Approach to the Assessment of all Assets

PROJECT MATURITY ……– Will the project go ahead?

UNCERTAINTY ……– What is the range of the estimated recoverable

volumes if the project does go ahead?


Norwegian Petroleum DirectorateResource Classification System

UNDISCOVEREDRESOURCES Prospects Leads and unmapped

resources

CONTINGENTRESOURCES

New discoveries that have not been

evaluated

Developmentnot very

likely

Recovery likely, but

not clarified

In theplanning

phase

Possible futuremeasures to

improve the recovery factor

Inproduction

RESERVES

Licensees have

decided to recover

Approveddevelopment

and operation

plan

Sold and delivered petroleum

Historical Production


SPE/WPC/AAPGResource Classification System

DISCOVEREDCOMMERCIAL

DISCOVEREDSUB-COMMERCIAL

UNDISCOVERED

Production

Range of Uncertainty

ProvedProved +Probable

Proved +Probable +Possible

Low

Low

Best High

Best High

RESERVES

CONTINGENTRESOURCES


Unrecoverable

Unrecoverable


SPE/WPC/AAPGResource Classification System

PROJECT STATUSOn Production

Under Development

Planned for Development

Development PendingDevelopment on Hold

Development not Viable

Prospect

Lead

Play

ProjectMaturity

HigherRisk

LowerRisk

DISCOVEREDCOMMERCIAL

DISCOVEREDSUB-COMMERCIAL

UNDISCOVERED

Production

Range of Uncertainty

RESERVES

CONTINGENTRESOURCES

Unrecoverable

Unrecoverable

1P 2P 3P

Low

Low

Best High

Best High



Outline



External petroleum reserve reporting by public companies

SPE/WPC/AAPG system is now widely accepted by industry, but …– Most public oil and gas companies are listed on

New York stock exchange– Must report Proved reserves in accordance with

Securities and Exchange Commission (SEC) regulations


External petroleum reserve reporting by public companies

SEC definition of proved reserves– Designed to be conservative and also to provide a

consistent basis for comparison– Proved reserves only– Reasonable certainty of production– Existing economic and operating conditions– Limitations for proved undeveloped reserves– Limitations for secondary recovery methods


Outline



United Nations Framework Classification (UNFC)

UNITED NATIONS

ofUNITED NATIONS INTERNATIONAL FRAMEWORKCLASSIFICATION FOR RESERVES/RESOURCES

- Solid Fuels and Mineral Commodities -

Economic

Axis E

ECONOMICE 1

E 2

POTENTIALLY

ECONOMIC

E 3

INTRINSICALLY

ECONOMIC

F 3

F 1

FEASIBILITY STUDY/

MINING REPORTF 2

PREFEASIBILITY STUDY

GEOLOGICAL STUDYG 1

RECONNAISSANCE

G 4

G 2

G 3 PROSPECTINGGENERALEXPLORATION

DETAILED

EXPLORATION

Feasibility

Axis F

Geologica

l

AxisG

111

121

122

222

331

332

333334

PUBLICATION IN:ENGLISH

FRANÇAISРУССКИЙ


UNFC – expanded along F-axis

Legend

Commercial productions

Non-commercial productions

In use for one or more commodity

Not reserves

Not in use

Remaining in place

Original slide provided by Sigurd Heiberg

G1G2

G3G4

E1E2E3


Outline



Conclusions

SPE/WPC/AAPG have developed a system that is being adopted by many oil and gas companies and organisations around the worldThe UNFC offers an excellent opportunity to provide a direct and clear link with other systemsHarmonization will provide the basis for internationally-consistent reporting of all energy and mineral resources


SPE/WPC/AAPG Petroleum Resource Classification

UNSD/ESCWA/OPECSeminar on the UNFC

Presented by Dr. Jim RossBeirut, June 2004

spe/wpc/aapg petroleum resource classification€¦ross petroleum june 2004 spe/wpc/aapg petroleum...

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