For many years, reserve determination has focused on engineering best practices.As various regulatory agencies increase their scrutiny of how oil and gas companies are determining their reserves and assigning value to those reserves, relying only on engineering best practices is no longer adequate.Reserve determination and subsequent public disclosure of those reserves needs to have a collaborative effort with emphasis on:
This paper will look at each of these 3 areas, and explain the importance of each area as they pertain to reserve determination and disclosure. It is not enough to have each of these items individually addressed. A solution that addresses these areas must be tightly interwoven and utilized in a seemless architecture.This paper will propose such a solution.
Much has been written about engineering and geoscience's best practices in determining both the technical and economic reserves.This paper will not address either of those areas.Instead this paper will focus on areas that are normally not discussed at petrotechnical conferences. With increased scrutiny by regulatory agencies and the need to determine and report reserves quicker and more efficiently, these areas must be addressed in order to have accurate and credible reserves.
Process management involves documenting the steps a company takes to determine and publish its oil and gas reserves.
These steps include:
Ensuring that engineering best practices are followed,
Defining responsible parties for signoff and final reserve numbers as well as interrmediate step signoff. and
Making sure all processes are used consistently across all business units as well as with outside consultants.
A simple flow chart can be used to document the petrotechnical and business processes used to determine reserves.Such a sample workflow is presented in Figure 1.