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Hydrocarbon

Reserve

Calculatation

Presented By :-

Rishi Nandan Vashistha (44) Robinu Rose Mathew (45) Sameer Sharma (46)

Agenda • To give a brief view of Hydrocarbon Reserve Estimation Techniques • To give a
Agenda
• To give a brief view of Hydrocarbon
Reserve Estimation Techniques
• To give a brief view about the reserves
and their classifications.
• To give a brief view of reserve status
categories
Introduction
Introduction

With this global expansion of the petroleum industry has come ongoing technological development that provides better tools and techniques for analyzing reservoirs and reservoir fluids as well as greater understanding of how reservoir geology affects reservoir performance.

The estimation of reserves is more than just a periodic, statutory calculating and reporting of company assets.

It is an essential element of investment planning and resource management for every prudent operator.

Begins with identifying a drillable prospect, and it continues while the prospect is developed and placed on production

Classification of Reserves • In 1930s API made attempts to standardize classification. • Since than evolution
Classification of Reserves
• In 1930s API made attempts to standardize
classification.
Since
than
evolution
of
technology
has
intensified
the
need
for
an
improved
nomenclature
to
achieve
consistency
among
professionals
working
with
reserve
terminology.
• SPE and WPC drafted a strikingly similar sets
of reserve definitions and these were
introduced in 1987.
• In 1993 the Petroleum Society of CIM published a monograph containing a report on reserve
In
1993
the Petroleum Society of CIM
published a monograph containing a report
on reserve definitions.
In
2000
SPE,
WPC
and
AAPG jointly
approved and published “Petroleum
Resources Classification and Definitions”.
The
Petroleum
Society published
“Definitions and Guidelines for Estimating
and Classifying
Oil
and Gas
Reserve” in
2002.
Reserves Definition According to the Classification • Total Petroleum–Initially–in–Place: It is the quantity of petroleum which
Reserves Definition According to
the Classification
• Total Petroleum–Initially–in–Place: It is the
quantity of petroleum which is estimated to exist
originally in naturally occurring accumulations, plus
those quantities in accumulations yet to be discovered
on a given date. It may be subdivided into
1. Discovered Petroleum-Initially-In-Place
2. Undiscovered Petroleum-Initially-In-Place
Discovered-Petroleum-Initially – In-Place It is that quantity of petroleum which is estimated to be contained in
Discovered-Petroleum-Initially –
In-Place
It is that quantity of petroleum which is estimated to be contained in known
accumulation, plus those quantities already produced there.
Discovered Petroleum initially-in-place may be subdivided into commercial and
sub commercial categories, with the estimated potentially recoverable portion
being classified as:
Reserves (commercial)
Reserves (commercial)
Discovered-Petroleum-Initially – In-Place It is that quantity of petroleum which is estimated to be contained in

I. Proved II. Proved plus probable

Discovered-Petroleum-Initially – In-Place It is that quantity of petroleum which is estimated to be contained in
III Proved plus probable plus possible Contingent resources (Sub Commercial) I. Low Estimate II. Best estimate
III Proved plus probable plus possible
Contingent resources (Sub Commercial)
I. Low Estimate
II. Best estimate
III High Estimate

a)

b)

a) Reserves placed on production within a reasonable timeframe.
a) Reserves
placed on production within a reasonable timeframe.

Those quantities of oil and gas anticipated to be economically recoverable from discovered resources from a given date forward are classified as reserves (published in draft by the Society of Petroleum Engineers (SPE) and World Petroleum Congress (WPC)).

In general, quantities must not be classified as reserves unless there is an expectation that the accumulation will be developed and

I. Proved Reserves recovered will equal or exceed the estimate.
I. Proved Reserves
recovered will equal or exceed the estimate.

Proved reserves are those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulations. Proved reserves can be categorized as developed or undeveloped.

If deterministic methods are used, the term reasonable certainty is intended to express a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually

II. Proved Plus Probable
II. Proved Plus Probable

Probable reserves are those Unproved Reserves* which analysis of geological and engineering data suggests are more likely than not to be recoverable. In this context, when

probabilistic methods are used, there should be at least a

50% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves.

II. Proved Plus Probable • Probable reserves are those Unproved Reserves* which analysis of geological and

*Unproved reserves may be estimated assuming future economic conditions different from those prevailing at the time of the estimate.

III. Proved Plus Probable Plus Possible
III. Proved Plus Probable Plus
Possible

Possible reserves are those unproved reserves which analysis of geological and engineering data suggests are less likely to be recoverable than probable reserves. In this context, when probabilistic methods are used, there should be at least a 10% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable plus possible reserves.

b) Contingent Resources It can be categorize in three types : Low Estimate • Contingent resources
b) Contingent Resources
b) Contingent Resources
It can be categorize in three types : Low Estimate
It can be categorize in three types :
Low Estimate

Contingent resources are defined as those quantities of oil and gas estimated on a given date to be potentially

recoverable from known accumulations but are not currently

economic. Contingent resources include, for example, accumulations for which there is currently no viable market.

I.

II. Best estimate

III. High Estimate

• Low Estimate: This is considered to be a conservative estimate of the quantity that will
Low Estimate: This is considered to be a conservative estimate of
the quantity that will actually be recovered from the accumulation.
If probabilistic methods are used, this term reflects a P90
confidence level.
Best Estimate: This is considered to be the best estimate of the
quantity that will actually be recovered from the accumulation. If
probabilistic methods are used, this term is a measure of central
tendency of the uncertainty distribution (most likely/mode,
P50/median, or arithmetic average/mean.)
High Estimate: This is considered to be an optimistic estimate of
the quantity that will actually be recovered from the accumulation.
If probabilistic methods are used, this term reflects a P10
confidence level.
c). Unrecoverable petroleum that are in the reservoir after commercial production has ceased, and in known
c). Unrecoverable
c). Unrecoverable
petroleum that are in the reservoir after commercial production has ceased, and in known and unknown
petroleum that are in the reservoir after commercial
production has ceased, and in known and unknown
accumulations that are not deemed recoverable due
to lack of technical and economic recovery
processes.

Unrecoverable resources, whether discovered or undiscovered, are neither technically possible nor economic to produce. They represent quantities of

2. Undiscovered Petroleum-Initially- In-Place oil and gas estimated on a given date to be contained in

2. Undiscovered Petroleum-Initially- In-Place

oil and gas estimated on a given date to be contained in accumulations yet to be
oil and gas estimated on a given date to be contained in
accumulations yet to be discovered. The estimated
potentially recoverable portion of undiscovered resources is
classified as prospective resources.
a). Prospective resources
I. Low Estimate
II. Best estimate
III High Estimate

Undiscovered resources are defined as those quantities of

b). Unrecoverable

a). Prospective resources economic to recover. • Prospective resources are defined as those quantities of oil
a). Prospective resources
a). Prospective resources
economic to recover.
economic to recover.

Prospective resources are defined as those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered

accumulations. They are technically viable and

• Low Estimate: This is considered to be a conservative estimate of the quantity that will
Low Estimate: This is considered to be a conservative estimate of
the quantity that will actually be recovered from the accumulation.
If probabilistic methods are used, this term reflects a P90
confidence level.
Best Estimate: This is considered to be the best estimate of the
quantity that will actually be recovered from the accumulation. If
probabilistic methods are used, this term is a measure of central
tendency of the uncertainty distribution (most likely/mode,
P50/median, or arithmetic average/mean.)
High Estimate: This is considered to be an optimistic estimate of
the quantity that will actually be recovered from the accumulation.
If probabilistic methods are used, this term reflects a P10
confidence level.
b). Unrecoverable economic to produce. They represent quantities of petroleum that are in the reservoir after
b). Unrecoverable
economic to produce. They represent quantities of
petroleum that are in the reservoir after commercial
production has ceased, and in known and unknown
accumulations that are not deemed recoverable due
to lack of technical and economic recovery
processes.

Unrecoverable resources, whether discovered or undiscovered, are neither technically possible nor

Reserves Status Categories

• Reserves status categories define the development and producing status of wells and reservoirs. 1. Developed
• Reserves
status
categories
define
the
development
and
producing status of wells and reservoirs.
1. Developed Reserves: Developed reserves are expected to
be recovered from existing wells including reserves behind
pipe. Improved recovery reserves are considered developed
only after the necessary equipment has been installed, or
when the costs to do so are relatively minor. Developed
reserves may be subcategorized as producing or
nonproducing.
a) Producing: Reserves subcategorized as producing are expected to be recovered from completion intervals that are
a) Producing: Reserves subcategorized as producing are expected to be recovered from completion intervals that are

a) Producing: Reserves subcategorized as producing are expected to be recovered from completion intervals that are

open and producing at the time of the estimate. Improved

recovery reserves are considered producing only after the improved recovery project is in operation.

estimate but that have not started producing, connections or (c) wells not capable of production for
estimate but that have not started producing,
connections or
(c) wells not capable of production for mechanical reasons.

b) Nonproducing: Reserves subcategorized as nonproducing include shut-in and behind-pipe reserves. Shut-in reserves are expected to be recovered from

(a) completion intervals that are open at the time of the

(b) wells which were shut in for market conditions or pipeline

2. Undeveloped reserves are expected to be recovered (a) from new wells on undrilled acreage, (b)
2. Undeveloped reserves are expected to be recovered
(a)
from new wells on undrilled acreage,
(b)
from deepening existing wells to a different reservoir,
(c)
where a relatively large expenditures required to
(I)
recomplete an existing well or
(II)
install
production
or
transportation
facilities
primary or improved recovery projects.

for

Classification of Reserves followed by ONGC USSR. Therefore the classification of reserves followed in USSR was
Classification of Reserves
followed by ONGC
USSR. Therefore the classification of reserves followed in
USSR was adopted with modifications suiting to Indian
environment.
categories.

The professional expertise of ONGC was imbibed from the systems, approaches and regulations followed in erstwhile

The reserves were classified as- Geological Reserves (In- place volumes of hydrocarbons) and Recoverable reserves. The reserves were divided into A, B, C1, C2 and Z -balance

After global changes in petroleum industry, the ONGC adopted a classification similar to that recommended by SPE, WPC and AAPG.

Periodicity of the Estimates
Periodicity of the Estimates
1. Prior to drilling of exploratory well 2. During and after appraisal and delineation drilling 3.
1.
Prior to drilling of exploratory well
2.
During and after appraisal and delineation
drilling
3.
After trial production data becomes available
4.
Prior to development strategy optimization
5.
During production
6.
When the production is declining
7.
At depletion

Range of Recovery Estimates

Estimated Ultimate Recovery: Estimated ultimate recovery (EUR) is an approximation of the quantity of oil or gas that

is potentially recoverable or has already been recovered

from a reserve or well.

Cumulative production: The total amount of oil and gas recovered from a reservoir as of a particular time in the life of the field. Cumulative production can be referenced to a well, a field, or a basin.

Ranges in estimates of ultimate recovery during life of

The Methods to follow • Volumetric Estimates • Performance Techniques – Material balance approach – Decline
The Methods to follow
• Volumetric Estimates
• Performance Techniques
– Material balance approach
– Decline curve analysis
• Monte-Carlo Method
Volumetric Estimates • Used early in the life of a reservoir, before sufficient production and/or pressure
Volumetric Estimates
• Used early in the life of a reservoir, before
sufficient production and/or pressure data
to use the performance method,
• Results from their use might be subject to
considerable uncertainty,
• Depends on the geologic setting
and the
amount
and
quality
of
geologic
and
engineering data.
Estimation of OIL Reserves
Estimation of OIL Reserves
Estimation of OIL Reserves = Q 0 7758 x ɸ x S 0 x h x
Estimation of OIL Reserves = Q 0 7758 x ɸ x S 0 x h x
= Q 0 7758 x ɸ x S 0 x h x A β 0
=
Q 0
7758 x ɸ x S 0 x h x A
β 0

where, 7758 = bbl/acre feet (converts acre-feet into STB, Stock Tank bbl)

• • • • • Q 0 = Quantity of Oil in Barrels ɸ = Porosity
Q 0 = Quantity of Oil in Barrels
ɸ = Porosity of reserve in fraction
S 0 = Saturation fraction
h = Average effective thickness in feet
A = Area of pool Acres
β 0 = Formation volume factor for Oil
Estimation of GAS Reserves
Estimation of GAS Reserves
= Q g 43560 x ɸ x S g x h x A β g
=
Q g
43560 x ɸ x S g x h x A
β g
• • • 43560 = ft 3 / acre feet (1 acre = 43,560 sq. feet)
43560 = ft 3 / acre feet (1 acre = 43,560 sq. feet)
Q g = Quantity of gas in Standard Cubic Feet
ɸ = Porosity of the reservoir in fraction

Where,

Sg = Gas saturation in fraction h = Average effective thickness in feet A = Area of pool in acres β g = Formation volume factor for Gas

The Methods to follow • Volumetric Estimates • Performance Techniques –Material balance approach – Decline curve
The Methods to follow
• Volumetric Estimates
• Performance Techniques
–Material balance approach
– Decline curve analysis
• Monte-Carlo Method
Performance Techniques • Material Balance Approach – It is a computational procedure, treating the reservoir as
Performance Techniques
• Material Balance Approach
– It
is
a
computational
procedure,
treating
the
reservoir as though it were a tank.
– These
methods
can
be
used
when
there
are
sufficient
historical
reservoir
pressure
and
production data to perform reliable calculations.
– The method is based on the premise that the Pore
Volume of a reservoir remains constant or changes
in predictable manner with reservoir pressure
drop.
• The data used for this approach consist of the following : – Production volume –
• The data used for this approach consist of the
following :
– Production volume
– Reservoir Pressure & Temperature
– Fluid Analysis Data
– Log Data ,Core data
– Drive mechanism

The Equation

types was first developed by Schilthuis in 1936.
types was first developed by Schilthuis in 1936.

A general material balance equation that can be applied to all reservoir

Expansion of oil in the oil zone + Expansion of gas in the gas zone +
Expansion of oil in the oil zone +
Expansion of gas in the gas zone +
Expansion of connate water in the oil and gas zones +
Contraction of pore volume in the oil and gas zones +
Water influx + Water injected + Gas injected

= Oil produced + Gas produced + Water produced

The Equation • types was first developed by Schilthuis in 1936. A general material balance equation

Mathematically

Mathematically where, Np = cumulative oil production, STB Bt = formation volume factor, total, RB/STB Bg

where,

Mathematically where, Np = cumulative oil production, STB Bt = formation volume factor, total, RB/STB Bg

Np = cumulative oil production, STB Bt = formation volume factor, total, RB/STB Bg = formation volume factor, gas, Rcf/sc

Rp = cumulative (producing) gas/oil ratio, scf/STB Rsi = initial solution gas/oil ratio, scf/STB Bw =
Rp = cumulative (producing) gas/oil ratio, scf/STB
Rsi = initial solution gas/oil ratio, scf/STB
Bw = formation volume factor, water, RB/STB
Wp = cumulative water production, ST
Ni = oil initially in place, STB or m
Bt = formation volume factor, total, RB/STB
Bt = formation volume factor, total, RB/STB

Bti = initial total formation volume factor, RB/STB m = ratio of initial gas cap volume to initial oil column volume, dimensionless Bgi = initial formation volume factor, gas, Rcf/scf or RB/scf We = cumulative water influx, RB

Mathematically where, Np = cumulative oil production, STB Bt = formation volume factor, total, RB/STB Bg
Mathematically where, Np = cumulative oil production, STB Bt = formation volume factor, total, RB/STB Bg
The Methods to follow • Volumetric Estimates • Performance Techniques – Material balance approach –Decline curve
The Methods to follow
• Volumetric Estimates
• Performance Techniques
– Material balance approach
–Decline curve analysis
• Monte-Carlo Method
Decline Curve Analysis • Analysis of Production Decline Curve can provide estimation of three important items.
Decline Curve Analysis
• Analysis of Production Decline Curve can
provide estimation of three important
items.
– Remaining Oil and gas reserves.
– Future expected production rate.
– Remaining productive life of well or reservoir.
What it is…… • A decline curve of a well is simply a plot of the
What it is……
• A decline curve of a well is simply a plot of the well’s
production rate on the y-axis versus time on the x-
axis.
The plot is usually done on a semilog paper; i.e. the
y-axis is logarithmic and the x-axis is linear.
• Three types of Decline Curves
– Exponential Curve
– Hyperbolic Curve
– Harmonic Curve
Exponential Curve • When the data plots as a straight line, it is modeled with a
Exponential Curve
When the data plots as a straight line, it is modeled with a
constant percentage decline “exponential decline”.
The equation of the straight line on the semilog paper is given
by:
q= q i e -Dt
• Where,
– q = well’s production rate at time t, STB/day
– qi = well’s production rate at time 0, STB/day
– D = nominal exponential decline rate, 1/day
t = time, day
Hyperbolic Curve
Hyperbolic Curve
• When the data plots concave upward, it is modeled with a “hyperbolic decline” • The
• When the data plots concave upward, it is modeled with a
“hyperbolic decline”
• The equation of the hyperbolic decline is given by:
q = q i (1+bD i t) -1/b
Where,
q = well’s production rate at time t, STB/day
q i = well’s production rate at time 0, STB/day
D i = initial nominal exponential decline rate (t = 0), 1/day
b = hyperbolic exponent
t = time, day
Harmonic Curve
Harmonic Curve

A special case of the hyperbolic decline is known as “harmonic decline”.

Harmonic Curve • A special case of the hyperbolic decline is known as “ harmonic decline”.
Harmonic Curve • A special case of the hyperbolic decline is known as “ harmonic decline”.

The equation of the straight line on the semilog paper is given by:

q = q i 1+ bD i t
q
=
q i
1+ bD i t
Harmonic Curve • A special case of the hyperbolic decline is known as “ harmonic decline”.
The Methods to follow • Volumetric Estimates • Performance Techniques – Material balance approach – Decline
The Methods to follow
• Volumetric Estimates
• Performance Techniques
– Material balance approach
– Decline curve analysis
• Monte-Carlo Method
Monte Carlo Method • A method of random sampling the Stochastic input values to provide a
Monte Carlo Method
• A method of random sampling the Stochastic input
values to provide a picture of the output distribution
values and probabilities
The
model
takes
these
inputs
and calculates the
outputs
• These outputs are recorded
• The process is repeated x time until sufficient repeat
samples
are
collected
to
provide
a probability
breakdown for a range of output values

The Equation

Hydrocarbon in Place = GRV x N/G x Porosity x S h FVF • Gross Rock
Hydrocarbon in Place = GRV x N/G x Porosity x S h
FVF
Gross Rock volume - amount of rock in the trap above the
hydrocarbon water contact
N/G - net/gross ratio - percentage of the GRV formed by the
reservoir rock ( range is 0 to 1)
• Porosity - (typically 5-35%)
• S h - hydrocarbon saturation
• FVF - formation volume factor - oil shrinks and gas expands
when brought to the surface. The FVF converts volumes at
reservoir conditions (high pressure and high temperature) to
storage and sale conditions
References • Chapter 18, Estimation of Primary Reserves of Crude Oil, Natural Gas, and Condensate. Ron
References
• Chapter 18, Estimation of Primary Reserves of
Crude Oil, Natural Gas, and Condensate. Ron
Harrell, SPE, Ryder Scott Co. and Chap
Cronquist, SPE, Consultant.
• Chapter
11,
Sec
11.4-11.7,
Bassiouni,
Z:
Theory, Measurement, and Interpretation
of Well Logs, SPE Textbook Series, Vol. 4,
(1994)
• Corelab, Fundamentals of Core Analysis,
Houston, TX (1983), Chapter 7
That’s all folks……!!!!!!!!
That’s all folks……!!!!!!!!
That’s all folks……!!!!!!!!