What are the proven reserves?
petroleum reserves are an important accumulation of oil while the oil society has already discovered and can extract and produce with existing technology. Specialized experts also divide these petroleum reserves into two wide subdivisses, unregulated and proven reserves based on the degree of certainty, which experts have with regard to the final production of the reserve. The proven reserves are the oil tanks for which oil experts have extremely high confidence that they can and will produce fields, usually around 90 percent. For this reason, oil industry staff refer to proven reserves such as P90 or 1P, which means the first priority reserve for drilling with a high probability of extracting significant oil from the ground. Other subdivisses of proven reserves include proven oil reserves and proven undeveloped oil reserves, which are distinguished by the degree of capital investments needed to create a field.
SECURITY United States and Exchange Commission allows oil companiesreport proven reserves to investors. If one of the United States is reported by the Company, the Company must prove its demands on the oil reserve by supplying the data confirming. The proven oil reserves that are developed are attracted by investors because they can be produced by existing oil wells for which minimum additional operating costs are expected. The demonstrated undeveloped reserves require further investments in drilling to extraction of oil from the reserve, which increases the cost of field production.
Unlike proven reserves, unknown places of oil are, where oil geologists think that oil is renewable on the basis of their interpretation of engineering and geological details. Well -known oil accumulations may fall in this category if regulatory, political or technical issues cause production to be uncertain. Often recommenders up to AS P50 or 2P are likely to have about 50 % of the level of reliability for production. PossibleThe reserves called P10 or 3P have 10 % of the level of reliability of recovery. The reasons for lack of trust may include lack of commercial, economic viability, leakage into a reserve or incomparable geological interpretation.
The proven reserves contain a certain amount of oil in place (OIP). Not all OIPs can be removed from the ground due to limits in extraction technologies. The recovery of the reserve is the ratio of renewable oil to the total volume of oil on the spot. Recovery factors for global oil fields range from 10 to 80 percent, depending on the different characteristics of the tank and liquid. Methods of estimating oil volume in demonstrable oil reserves include the volume method, the method of the decrease curve and the method of material balance.