Can you imagine our life without petroleum influence? We depend on petroleum products on all aspects of our life. We live in a world which is so Oil intensive. Oil governs our economies and plays important role in our life. Oil reserves are most valuable resources that a country can have today and it also increases political value of the nation in the international front.
Oil reserves are crude oil reserves under the earth's crust. Oil reserves can be categorized into different categories based on commercial, geographical and political factors. Before we explore the various kinds of reserves. Let us first define the criteria for a reserve to qualify as a petroleum reserve.
There are four criteria for this:
1) Oil reserve was discovered through exploratory method.
2) Oil from this reserve is recoverable for existing technologies.
3) Must be commercially viable, i.e. the exploration has to be affordable.
4) Must be still inside the ground. :-) What were you thinking? It has to be inside the ground or under the Sea or Ocean bed. Only then that oil will be considered as oil reserve.
Different kind of Petroleum Reserves
Proven Reserve: It is a reserve, where 90% of oil recoverability is possible based on the geological, political and commercial aspects.
UnProven Reserves: Unproven oil reserves are those oil reserves which are not recoverable because of technical, commercial, political or geological reasons.
Strategical Reserves: These are oil reserves which are controlled by the governments as a national reserve to protect its future interests.
Contingent Reserves: These are the oil reserves which are potentially recoverable but the commercial value for this oil is not yet developed.
Unconventional Reserves: These are the oil reserves from where the oil recovery is not possible because of technical reasons and it gets very expensive to recover oil from these reserves.
Oil is an important aspect of our lives and we should be aware of current oil status in the world to take more informed decisions in our personal and professional life. I hope this blog entry helps you understand few basics in petroleum industry.
Oil reserves are crude oil reserves under the earth's crust. Oil reserves can be categorized into different categories based on commercial, geographical and political factors. Before we explore the various kinds of reserves. Let us first define the criteria for a reserve to qualify as a petroleum reserve.
There are four criteria for this:
1) Oil reserve was discovered through exploratory method.
2) Oil from this reserve is recoverable for existing technologies.
3) Must be commercially viable, i.e. the exploration has to be affordable.
4) Must be still inside the ground. :-) What were you thinking? It has to be inside the ground or under the Sea or Ocean bed. Only then that oil will be considered as oil reserve.
Different kind of Petroleum Reserves
Proven Reserve: It is a reserve, where 90% of oil recoverability is possible based on the geological, political and commercial aspects.
UnProven Reserves: Unproven oil reserves are those oil reserves which are not recoverable because of technical, commercial, political or geological reasons.
Strategical Reserves: These are oil reserves which are controlled by the governments as a national reserve to protect its future interests.
Contingent Reserves: These are the oil reserves which are potentially recoverable but the commercial value for this oil is not yet developed.
Unconventional Reserves: These are the oil reserves from where the oil recovery is not possible because of technical reasons and it gets very expensive to recover oil from these reserves.
Oil is an important aspect of our lives and we should be aware of current oil status in the world to take more informed decisions in our personal and professional life. I hope this blog entry helps you understand few basics in petroleum industry.
