Papers - - Estimation of Petroleum Reserves - A Method of Estimating Oil and Gas Reserves (With Discussion)

In the management of oil properties, it is always desirable to know the future behavior of oil wells and oil reservoirs. Some estimation of the quantity of oil and gas that will be produced must be made as a basis for decisions on possible returns on investments in lifting equipment, drilling of additional wells, and other operating expenditures. In new or wildcat areas, operating expenditures are considered highly speculative, but in the completion of partly drilled and the operation of producing fields it is good business to remove as much speculation as possible. An accurate knowledge of oil and gas reserves in such cases would solve many management problems. The term "oil reserves" usually signifies the future ultimate recovery without specifying the method of production. Thus with changing methods and innovations in the production industry, reserves of any definite reservoir may be increased by increasing the portion of oil recovered. The usual reserve estimates are made by comparisons of well and formation characteristics, by using a percentage recovery on the oil content of the formation volume using porosity data, by extending production curves on non-prorated wells, or by extending bottom-hole pressure-production curves. The most reliable method would appear to be one that would estimate the initial quantity of oil and gas present and then obtain percentage recovery values for various productive methods and formations from experience. It is the purpose of this paper to describe a method of estimating the initial quantity of oil and gas present in a reservoir. The method is based on field operating data and the properties of crude oil-gas mixtures. The principles involved, the data required, the assumptions necessary, and an example of the method will be given. The method is entirely independent of sand volumes and formation porosities. Principles of Method The method of estimating the initial quantity of oil and gas present is based upon the premise that the volume occupied by oil and gas in the reservoir is constant and that a mixture of crude oil and gas will behave in