A Conceptual Overview

on Reserve Estimation
Techniques

- Dr. M Prince
Introduction
• What are Petroleum reserves?
• What are the type of petroleum reserves?
• How do you categorize?
• What is its status globally?
• How do you estimate?
• Proven techniques for reserve estimations.
What are petroleum reserves?
❖ hydrocarbon deposits predominantly
occurring in subsurface geologic
formations.

❖ Reserves are either discovered or likely to be

discovered in the future.

❖ Technological expertise, either current or in

the future, must be in place to exploit the
deposits of petroleum.

❖ Economic feasibility, either current or in the

future, must exist to bring the oil and gas
reserves from reservoirs to markets.

❖ Reserves can be reported in the context of a

reservoir, field, petroleum basin, or country as
a whole.
What are the type of Petroleum reserves?

• Proved Reserves, 90% Certainty

of Commercial Extraction

• Probable Reserves, 50%

Certainty of Commercial
Extraction

• Possible Reserves, 10%

Certainty of Commercial
Extraction
How do you categorize them?
Category A → Actual producing and developed
reserves

Category B → Explored matured fields (drainage

of reserves)
Category C1 & C2 → Adjacent to A & B (drainage
distance)
Category D1,D2 and D3 → Near by prospect resources
Category A
Developed fields
Drainage area
Category B

Appraised and planned

to develop
Category C1 Near to the
end of
drainage
boundary
Category C2
Between the
drainage
boundaries
D1,D2 & D3
What is its status globally?
How do you estimate?
• Volumetric
• Material balance equation
• Production decline curves
• Simulation
Volumetric
Oil Gas

Amount of oil Reserves

Formation Volume Factor
Area of the reservoir
Thickness of the reservoir Saturation of water

Porosity
Material Balance Equation
Production decline curves
qt = qi / (1+bDit)^1/b q t
xx yy
b→ 0 q
xx yy
b→ 1
xx yy
q b→ (0,1)
xx yy

tp t Q

Log q

Log q

Q
t
Production decline curves
b→ 0 q

t Q

Log q

Log q

Q
t
Production decline curves
q
b→ 1
q

t Q

Log q

Log q

Q
t
Production decline curves
q
b→ (0,1)
q

t Q

Log q

Log q

Q
t
Reservoir simulation
Discretization of
reservoir

Time t1

Space
t2 `

t3
Reservoir Simulation
Water saturation

Oil saturation
Reservoir Simulation
Upstream weightage

So So So So

Downstream weightage

So So So So ?

Mixed weightage
(So1+S (So1+S
So1 So2 o2)/2
o2)/2
Extrapolation weightage

So1 So1 So2 So2

Grid representation of lithofacies
Grid sizing
t1 t2
Conclusions
Simulation in reserve estimations are one of the most significant methods followed by oil
and gas industry.

It acts as a protocol for production operations.

All four techniques have pros and cons.

Long and short term reservoir prognostication

Recent developments were concentrated on reservoir simulations.

Lot of scope for advancing in this field.