sit7r2024 Estimated Utimate Recovery (EUR) - Overview, Categories, Calculation
What is csumavea Ulumave Recovery (cUN,
Estimated Ultimate Recovery (EUR) is a term specifically used in the oil
and gas industry. It is the estimate of the total quantity of oil and/or gas
that can ultimately be recovered from an oil reserve or a field. Simply
put, it is the estimated quantity of expected total production from an oil
reserve or well.
Summary
Estimated Ultimate Recovery (EUR) is an estimate of the
total quantity of oil and/or gas that can ultimately be
recovered from an oil reserve or a field.
The EUR is classified into three different categories: proven
reserves, probable reserves, and possible reserves.
The change in EUR depends on a few factors that directly
affect the production of oil and gas. They include time
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duration, changes in production technology, or changes in
oil production infrastructure, changes in methods of oil
recovery, and so on.
Estimated Ultimate Recovery - Purpose
The estimated ultimate recovery (EUR) measure is of very high
importance in the oil and gas industry. Every oil and gas recovery project
is required to perform a EUR assessment to determine its value. The
project can then be assessed whether it will be feasible and profitable. It
is the basic purpose of the EUR measure.
The EUR is sometimes also referred to as the net present value (NPV)
metric of the oil and gas industry. It determines the net present value of
an impending project and helps ascertain whether it is feasible and
profitable or not.
Estimated Ultimate Recovery - Categories
The EUR is further classified into three different categories, each based
on the potential recoverability of the oil from a reserve or a field using
the current infrastructure and technology. The three categories are:
Proven Reserves: Oil reserves with a 90% chance of recovering the
oil
Probable Reserves: Oil reserves with a 50% chance or greater of
recovering the oil.
Possible Reserves: Oil reserves with a recovery potential but of a
less than 50% chance of recovering the oil.
EUR Calculation
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Estimates Utimate Recovery (EUR)- Overview, Categories, Calculation
The EUR is calculated using several different methods depending on the
project to be carried out. However, it involves the use of the same few
parameters including the cost of production, capital, the cost of oil,
inputs, and technology used to extract oil, etc.
The production data sample that is taken is a minimum of several
months. It is done because the EUR is an estimation or approximation,
and several months’ data is required in order to avoid compromising the
integrity of the approximation.
Changes in the EUR
The EUR never remains constant. For any production well, reservoir, or
oil field, the value can change over time. The change in EUR depends on
a few factors that directly affect the production of oil and gas. They
include time duration, changes in production technology, changes in oil
production infrastructure, changes in methods of oil recovery, and so on.
The unique aspect of oil reserves is that the potential of recoverability of
an oil field can change over time. It is possible to convert the probable
and possible reserves mentioned above into proven reserves with the
passage of time and with the direct influence of the aforementioned
factors,
Sources of Oil and Gas Production Data for Estimating the
EUR
The prime source of domestic oil and gas production data for the
purpose of estimating the EUR is the IHS Production Database from the
IHS Energy Group, 2000. The group stores monthly oil and gas
production data on a lease by lease basis.
In addition, oil and gas production data is also procured from the
database of various state or governmental sources. After gathering all
data, the EUR is estimated.
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