Topic outline

  • Reserves Estimation

    This course provides an overview of all significant aspects and considerations of reserve estimation for geologists, geoscientists, engineers, business analysts, investment bankers, oil and gas company asset managers, oil and gas economists, government regulatory officers, financial analysts, private equity and venture capitalists as well as acquisition, divestment and new business professionals.

    • Training Methodology & Objectives

      Training Methodology

      This Trainee-centered course includes the following training methodologies:-

      • Talking presentation Slides (PPT with audio)
      • Simulation & Animation
      • Exercises
      • Videos
      • Case Studies
      • Gamification (learning through games)
      • Quizzes, Pre-test & Post-test

      Course Objectives

      After completing the course, the employee will:-

      Apply a comprehensive knowledge on reserves estimation To review principles of reservoir characterization and reserves evaluation
      To learn about main concepts of risks and uncertainties management To learn about integrating risks and uncertainties into reserves evaluation - static uncertainties, dynamic uncertainties, geostochastic modeling, etc
      Classify and define petroleum resources, reserves & resources commerciality and resource uncertainty categories Identify project status categories, operational issues, fuel, flare and operational & third-party gas
      Identify wet & dry gas, non-hydrocarbon gases, gas re-injection, liquid conversion to oil equivalent and gas conversion to oil equivalent Apply gas balancing, current economic conditions and interpretation of current economic conditions
      Explain operating costs and abandonment in current economic calculations for proved reserves Carryout production-sharing contract/contract extensions and current economic conditions
      Employ probabilistic estimation procedures and quoting reserve and resource quantities using probabilistic methods Explain reserves and resources, proved reserves, unproved reserves, contingent resources and undiscovered resources
      Apply static analysis of reserves, recovery of sales products from the well streams and selecting distribution functions for individual parameters Determine aggregation of reserves, reservoir behaviour from performance plots, dependencies between estimates, use of correlations and aggregating resource categories
      Apply geostatistics in the petroleum industry, geostatistical methods, seismic applications, flow surveillance and full-wavefield seismic analysis Recognize rock & fluid properties, seismic estimation of reserves & resources, full-wavefield seismic analysis, reserve recognition under production-sharing & other nontraditional agreements
      • Course Description

        This E-Learning course is designed to give participants a detailed overview of the reserve estimation methods and the uncertainty calculations. It covers the current techniques used for resource and reserves analysis including exploration, “green-field” and “brown field” development, economic and operational risk and production forecasting. The implications for the evaluation of oil and gas resources are discussed and how these impacts the technical appraisal process
        The course will update geologists, geophysicists and reservoir engineers with the newest and most accurate methods for obtaining the value of a reserve.  Following the completion of this course, all participants should be able to manage deterministic and probabilistic methods, with the aim of gaining a thorough understanding of various reserve levels and their equivalence in both systems.
        Modern methods of resource appraisal including reservoir simulation, response surface analysis and stochastic simulation will be introduced and the benefits from using these techniques will be discussed in the course
        During this course, participants will learn the petroleum resources, reserves & resources commerciality and resource uncertainty categories; the project status categories, operational issues, fuel, flare and operational & third-party gas; the wet & dry gas, non-hydrocarbon gases, gas re-injection, liquid conversion to oil equivalent and gas conversion to oil equivalent; the gas balancing, current economic conditions and interpretation of current economic conditions; the production-sharing contract/contract extensions and current economic conditions; the operating costs and abandonment in current economic calculations for proved reserves; the reserves and resources, proved reserves, unproved reserves, contingent resources and undiscovered resources; the static analysis of reserves, recovery of sales products from the well streams and selecting distribution functions for individual parameters; the aggregation of reserves, reservoir behaviour from performance plots, dependencies between estimates, use of correlations and aggregating resource categories; the geostatistics in the petroleum industry, geostatistical methods, seismic applications, flow surveillance and full-wavefield seismic analysis; and the rock & fluid properties, seismic estimation of reserves & resources, full-wavefield seismic analysis, reserve recognition under production-sharing & other nontraditional agreements
        • Module 1 - Petroleum Resources Classification and Definitions

          Contents:
            • Introduction
            • Reserves and Resources
            • Related Definitions
            • Commerciality
            • Resource Uncertainty Categories
            • Video: What is Petroleum Reserves Management System
            • Risk-Based Philosophy
            • Uncertainty-Based Philosophy
            • Project Status Categories
            • Reserves
            • Contingent Resources
            • Prospective Resources
            • Module Quiz
          • Module 2 - Operational Issues

            Contents:
              • Fuel, Flare, Operational Usage, and Third-Party Gas
              • Wet and Dry Gas
              • Non-Hydrocarbon Gases
              • Other Substances—Sulphur
              • Gas Re-Injection
              • Liquid Conversion to Oil Equivalent
              • Gas Conversion to Oil Equivalent
              • Royalty
              • Overlift/Underlift
              • Gas Balancing
              • Video: Gas balancing - Gas Accounting Software - Gas Balancing Software - Tutorial - GBSAllocation 
              • Module Quiz
            • Module 3 - Current Economic Conditions

              Contents:
                • Introduction—History and Background/ Interpretation of Current Economic Conditions
                • Current Economic Conditions Defined
                • Operating Costs and Abandonment in Current Economic Calculations for Proved Reserves
                • Video: How Spot Prices Impact Futures Prices
                • Production-Sharing Contract Reserves/Contract Extensions and Current Economic Conditions
                • Module Quiz
              • Module 4 - Probabilistic Reserves Estimation Procedures

                Contents:
                  • Quoting Reserve and Resource Quantities Using Probabilistic Methods
                  • Reserves and Resources
                  • Proved Reserves
                  • Unproved Reserves
                  • Contingent Resources and Undiscovered Resources
                  • Reserve Description
                  • Static Analysis of Reserves
                  • Reserves as the Sum of Sales Forecasts in Time
                  • Video: How to get Accurate Sales Forecasts
                  • Parameters and Their Uncertainty Distribution
                  • Reservoir Volume
                  • Reservoir Parameters
                  • Recovery From the Reservoirs
                  • Recovery of Sales Products From the Well Streams
                  • Entitlement
                  • Selecting Distribution Functions for Individual Parameters
                  • Definitions and Rules
                  • Module Quiz


                • Module 5 - Aggregation of Reserves

                  Contents:
                    • Introduction: Issues in Reserves Aggregation
                    • Aggregating Over Reserves Levels (Wells, Reservoirs, Fields, Companies, Countries)
                    • Reservoir Behavior
                    • Dependencies Between Estimates
                    • Two Levels of Aggregation
                    • Adding Proved Reserves
                    • Difference Between Dependent and Independent Addition
                    • Arithmetic or Dependent Addition
                    • Probabilistic or Independent Addition
                    • The Intermediate Case—Using Correlation Matrices
                    • Aggregating Over Resource Categories
                    • Video: Operations Management - Aggregate Planning
                    • Scenario Methods
                    • Example of Low Dependence Between Reservoir Elements
                    • Example of Dependent Reservoir Elements
                    • Comparing Degrees of Dependence
                    • Comparing Scenario Trees and Correlation Methods
                    • Normalization and Standardization of Volumes
                    • Summary—Some Guidelines
                    • Module Quiz


                  • Module 6 - Application of Geostatistics in the Petroleum Industry

                    Contents:
                      • Introduction
                      • Terminology
                      • Historical Review
                      • Application of Geostatistical Methods
                      • 1D Geostatistical Methods
                      • 2D Geostatistical Methods
                      • 3D Geostatistical Methods, Heterogeneity Modeling
                      • New Developments and Areas of Application
                      • Fuzzy Mathematics
                      • Flow Simulation
                      • Well Intervention
                      • Well Positioning
                      • Video: Well Intervention
                      • Lithology and Fluid Prediction
                      • Conclusions
                      • A Terminology
                      • Module Quiz
                    • Module 7 - Seismic Applications

                      Contents:
                        • Introduction
                        • Seismic Estimation of Reserves and Resources
                        • Trap Geometry
                        • Rock and Fluid Properties
                        • Flow Surveillance
                        • Uncertainty in Seismic Predictions
                        • GRV of a Trap
                        • Reservoir Bulk Volume
                        • Reservoir Properties
                        • Seismic Inversion
                        • Video: Introduction to Seismic Inversion in Paradigm
                        • Full-Wavefield Seismic Analysis
                        • Module Quiz
                      • Module 8 - Reserve Recognition Under Production-Sharing and Other Nontraditional Agreements

                        Contents:
                          • Introduction
                          • Regulations, Standards, and Definitions
                          • Regulations—U.S. Securities and Exchange Commission
                          • Regulation Summary—Elements Supporting Reserves Reporting
                          • U.S. Treasury Department
                          • Taxes and Reserves
                          • Accounting Standards
                          • Interpretive Differences
                          • Agreements and Contracts
                          • Concessions, Mineral Leases, and Permits
                          • Production-Sharing Contracts
                          • Revenue-Sharing/Risked-Service Contracts
                          • Pure-Service Contracts
                          • Loan Agreements
                          • Video: What is LOAN AGREEMENT? What does LOAN AGREEMENT mean?
                          • Production Loans, Forward Sales, and Similar Arrangements
                          • Carried Interest
                          • Purchase Contracts
                          • Production Payments and Conveyances
                          • Example Cases
                          • Base Case Example
                          • Production-Sharing Contract Terms—Normal Tax Treatment
                          • Production-Sharing Contract—Carried Tax Treatment
                          • Risked-Service Contract
                          • Pure-Service Contract
                          • Conveyances—Production Payments
                          • Conclusions
                          • Module Quiz
                        • Module 9 - SPE/WPC Petroleum Reserves Definitions

                          Contents:
                            • Preamble
                            • Definitions
                            • Proved Reserves
                            • Unproved Reserves
                            • Probable Reserves
                            • Possible Reserves
                            • Reserve Status Categories
                            • Video: Reservoir Definition (Proved, Probable, Possible Reserves)
                            • Module Quiz
                          • Module 10 - SPE/WPC/AAPG Petroleum Resources Classification and Definitions

                            Contents:
                              • Petroleum Resources Definitions
                              • Definitions
                              • Video: Establishing Oil & Gas Reserves and Resources 
                              • Total Petroleum-Initially-in-Place
                              • Discovered Petroleum-Initially-in-Place
                              • Undiscovered Petroleum-Initially-in-Place
                              • Estimated Ultimate Recovery
                              • Aggregation
                              • Range of Uncertainty
                              • Resources Classification System
                              • Graphical Representation
                              • Module Quiz
                            • Post-Test

                              Kindly complete the post-test to assess your knowledge about the topic after the course.