Chairperson’s Opening Remarks
Chairs: Keith MacLeod, Sproule; Jeff Tenzer, Chevron
The PRMS provides the international standard for global consistency, transparency, and comparability of petroleum resource classification. It is the common reference for the international petroleum industry, national reporting and regulatory disclosure agencies, and supports petroleum project and portfolio management requirements.
This session will provide an overview of the PRMS base principles and key elements, and the additional guidance of the PRMS-AG. The major changes to prior guidance will be reviewed, and a representative of the SPE Oil and Gas Reserves Committee (OGRC) will share insight into the latest activities on implementation of the PRMS and PRMS-AG.
Chairs: Naomi Boness, Chevron; Eleazar Benedetto-Padron, Ryder Scott
During this geoscience session, an integrated subsurface evaluation approach for reserves estimation and classification will be discussed with an emphasis on the role of geophysical technology. The session will include an overview of using seismic as outlined in the PRMS-AG, followed by a discussion of subsurface evaluation including the geologic, petrophysical, and engineering elements that are fundamental to PRMS. Integrated case studies will be used to illustrate the key issues and challenges of using seismic in conjunction with other data to build robust subsurface models and estimate reserves and resources with a high level of confidence.
Chairs: Paul Johnson, ConocoPhillips; John Lee, University of Houston
PRMS and PRMS-AG principles guiding acceptable deterministic and probabilistic methods will be reviewed. Industry views on when and how to apply the two methods over the life cycle of a field will be discussed. The discussion will include considerations of the data availability and uncertainty from prospective resources in the exploration phase to contingent resources and finally to reserves status as the field matures.
Additionally, the aggregation of resources following PRMS and PRMS-AG principles will be discussed. As companies adapt their reserves/resources aggregation approaches to meet corporate objectives, reporting regulations will arise, dictating specific aggregation approaches for disclosure. The challenges of multiple fields, application of the "project" concept, and national inventories will be also be reviewed.
Participants will engage in one of four different topic groups through a detailed round-table discussion. Feedback highlights from the session will be provided to all.
Chairs: Elliot Young, ExxonMobil; Rod Sidle, Sheridan Production Company
Case studies on interpretation and application challenges of PRMS and the PRMS-AG in the industry will be presented. Additionally, a case study example of how an international E&P company adapted PRMS for its internal use will be discussed.
Chairs: Frank Denelle, Shell; Elliot Young, ExxonMobil
The main PRMS features of typical fiscal systems around the world include regulations comparison, the division of profit and the government portion concepts, and the discussion of key criteria and contract elements for entitlement calculation and reserves recognition.
This session will highlight the commercial evaluation principles that are used to determine the value of investing in existing and planned petroleum recovery projects. Inherent uncertainties regarding costs, prices, taxes, and fiscal terms will be discussed. Beyond these uncertainties, there may be marketing, legal, environmental, social or governmental contingencies that must be addressed prior to deeming any discovered resource a reserve or a contingent resource.
Chairs: John Lee, University of Houston; Keith MacLeod, Sproule
Unconventional resources have become mainstream in the North American oil and gas industry, as depicted in the PRMS and with significantly more guidance in the PRMS-AG. The identification of the in-place resource as it moves to a discovered volume, and the confidence determination methods with area extend will be discussed. Examples will include coalbed methane (CBM), shale gas/oil, and natural bitumen.
Participants will engage in one of four different topic groups through a detailed round table discussion. Feedback highlights from the session will be provided to all.
Chairs: Ian McDonald, Nexen; Rod Sidle, Sheridan Production Company
Issues that have generated a high level of interest by the participants will be presented in this session for discussion. Issues discussed may include the comparison of other classification systems with their similarities and differences to PRMS.
Highlights from the breakout sessions will be reported and discussed.
Prior contributors to current and future reserves and resource classification systems will be recognized. The panel will note the underlying principles of PRMS, and its ability to serve the local and international industry stakeholders. Discussion will include topical issues of current day, status of PRMS and respective other systems, perceived areas for improvement, and the future vision.