Since a prior paper on analogy for estimating petroleum reserves (Hodgin and
Harrell 2006), new dimensions of this topic have emerged. This paper provides
updated guidance for analogy use and explains new concepts for the application
of analogy in reserves estimation and classification.
Reserves evaluators using engineering and geoscience techniques now have new
petroleum-reserves rules that include the use of analogy. In 2007, SPE
finalized the Petroleum Resource Management System (PRMS) instructions, and in
late 2008, the US Securities and Exchange Commission (SEC) published updated
regulations on reserves reporting. Recent papers (Lee 2009; Etherington 2009)
provide good summaries of the updated SEC rules and a comparison to PRMS. This
paper will provide guidance to aid understanding of and compliance with these
rules as related to the use of analogs.
The paper provides interpretations of new analogy-related terminology and
the related reserves rules. It also gives examples of how these interpretations
can be applied to common reserves-estimation situations where analogy is used.
The paper also addresses new concepts concerning how analogies can be shown as
valid and can be adjusted for minor differences in the comparison of target
field with analogy field.
The recent publication of the US SEC reserves reporting rules, which draw
partially from the SPE PRMS, has increased interest in deeper understanding of
both these SEC rules and PRMS. This paper will assist those who develop and use
petroleum-reserves data in understanding how the use of analogy can contribute
to reliable reserves estimates and proper classification. Please note that the
opinions expressed in this paper are those of the authors alone. They represent
the opinions of neither the US SEC nor its staff members.
© 2010. Society of Petroleum Engineers
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- Original manuscript received:
8 January 2010
- Meeting paper published:
9 March 2010
- Manuscript approved:
19 March 2010
- Published online:
26 August 2010
- Version of record:
11 October 2010