Monday, April 16
This course provides an overview of the classification, estimation and reporting of reserves and resources. The focus of the course is on the SPE-PRMS, but other systems such as SEC and COGEH are also mentioned. The course will outline the key definitions of each of the main classes and categories of reserves and resources. The estimation methods which can be used, together with how and when each should be used is also covered.
Tuesday, April 17
The low oil price and limited resources are some of the main challenges for protecting current and developing new reserves. There is a need to review existing guidelines/methods for reserves bookings and, if warranted, revise the existing booked resources.
It is essential to integrate information from all available tools, and to adopt a proper de-risking and surveillance plan – be more cautious when booking costly reserves and EOR projects. Overbooking reserves is common and should be avoided. There should be more stringent internal processes for mature reserves quantification – including improved calibration of modelling results through lab experiments, data gathering and pilot test.
This session will focus on different analysis methods that are used for reserves estimation and how to address requirements to classify and estimate reserves.
Since its issuance in 2007, the industry has cited the PRMS guidelines as the key reference for reserves and resources classification and definition. Through the years, there have been many case studies on issues, challenges and experiences of using this important document.
This session will look at those topics using various real-life examples. Volatile oil and gas price, project definition, advancement in technology and scarcity, all linked to financial guideline are among key subjects to those challenges.
New definitions in reporting (operational, financial or reserves) will inevitably result in changes in business practices and processes. Organisations require training to adapt, and company resources need to be committed to ensure the necessary level of understanding and compliance to set standards.
This session will focus on the business value and issues that the new standards will invariably bring to reserves professionals (trainers, practitioners, auditors etc.) and senior executives driving decision-making exercises that are dependent on reserves reporting.
Wednesday, April 18
This session will examine the various techniques, both stochastic and deterministic, used in reservoir simulation to generate reserves forecasts. The challenge in using simulation to derive reserves forecasts is to ensure the simulation models have captured the range of uncertainty commensurate with 1P, 2P and 3P definitions and have been built to in accordance with the desired reserves standards. Case histories will examine these challenges, in particular the robustness of methodologies used and how analytical techniques may be used to ground truth the sensitivity of forecasts for the purpose that they will be used for.
Determining commerciality is a key component in the classification of volumes within the SPE-PRMS framework. The test of the commerciality of a Project is defined by a set of assumptions on financial conditions (costs, prices, fiscal terms and taxes), marketing, contractual, environmental, regulatory, and other issues related to the Project. This session will examine some of these assumptions and their associated challenges, especially in the current low hydrocarbon price environment. The situation is often complicated further by the role that national oil companies have to play in securing energy supply.
As we deplete conventional oil and gas reserves, “unconventional” energy resources are increasingly important to the U.S. and international energy supplies. Today, shale gas and oil projects are amongst the most active hydrocarbon plays in North America. While unconventional hydrocarbons resources are very large, economically recoverable volumes are much smaller and more uncertain. Some of these are due to the greater costs and the additional technology required for economic production from wells, along with the uncertainty of continuous drilling programmes over many years. Optimal development of unconventional reservoirs requires knowledge of optimal drilling, completion and stimulation methods for low-permeability gas reservoirs and extraction of heavy crude. This session will discuss:
- Risk, uncertainties and accuracy in forecasting unconventional resources
- Applicability of the use of conventional methods for unconventional reservoirs
- Improvement of available techniques using type curve method, modelling of fluid flow in nano-porous media and fluid and rock properties characterisation techniques
This is an open session that will address any questions from participants and learning outcomes from the 2-day workshop.