Reserves and Forecasting · Module R8
Reserves Economics and the Reserves Report (capstone)
The capstone: volumes become reserves only when a project is commercial. The module covers price decks and differentials, economic truncation under each deck, value by category, the difference between a company hurdle and the economic-producibility test, year-on-year reconciliation and the audit trail a reviewer expects.
- Level
- Intermediate
- Position
- Module 8 of 8
- Video
- About 18 minutes, narrated
- Format
- Narrated video lesson with captions and slide reading view; with the certified option, a quiz whose pass unlocks the next module.
What the module covers
- Commerciality and economic producibility
- Flat, escalated and backwardated price decks
- NPV by reserves category
- When a price fall moves volumes to contingent
- Reconciliation and the reserves audit trail
Learning outcomes
After the module you should be able to:
- Test commerciality with a stated price deck and deliver a traceable reserves summary.
- Test a project's commerciality with a stated deck
- Reconcile reserves between two effective dates
- Assemble a reserves summary a reviewer can trace
A short preview
A reserves reconciliation explains every change between two reports. If last year's remaining reserves were 2.40 million barrels, the field produced 0.35 million during the year and this year's estimate is 2.10 million, then 2.40 − 0.35 = 2.05 would be expected with a perfect forecast, and the remaining 0.05 million is a positive technical revision. Revisions that keep pointing the same way, year after year, are evidence the forecasting method is biased.
Who it is for
Reservoir and production engineers, petrophysicists and geoscientists who estimate, review or report reserves and production forecasts.
Prerequisites: None required; working familiarity with production data and volumetrics helps.
Take the module in the Learning Hub
Reserves and Forecasting: Specialty course, sold separately: eight modules from PRMS classification and decline curves to type wells, material balance, aggregation and the reserves report. The lesson opens in the Learning Hub once the track is purchased; graded quizzes and the certificate come with the certified option.