Assuring Investor Confidence Through Qualified Reserves Evaluators Applying Globally Accepted Principles Of Evaluations and Reporting
- Principles Of Evaluations and Reporting”
• Our petroleum industry has come a long way since SPE created “Proved Reserves Definitions for Property Evaluation” in 1965. Banks and insurance companies were at that time the primary sources of external capital for the US industry through various forms of lending and financial support and likely initiated this effort. Those definitions were modified over time and became the underlying basis for those issued by the US SEC in 1978. Virtually every business transaction in the upstream side requires a high level of confidence in the estimates of proved oil and gas reserves and/or resources and the resulting cash flow profiles along with the estimated range of uncertainty in non-proved reserves and resources. This presentation focuses on the absolute necessity for having (1) qualified reserves evaluators with recognized ethical integrity - both engineers and geoscientists, (2) global understanding and acceptance of the most current industry-recognized estimation and evaluation principles and terminology, and (3) continuing training opportunities for reserves and resources evaluators worldwide. Both users and preparers of these standards clearly recognize the need for virtually continuous updating as a result of evolving technology creating new opportunities in both conventional and unconventional reservoirs. Many producers are being urged to become more open to sharing their experiences with industry and seem to be recognizing the benefits in doing so. Such input from both large and small producers - public or private - is essential to expanding the training role being largely supported by academia and energy consultants. This presentation addresses all three of these topics and the ongoing efforts of dozens of dedicated member volunteers representing AAPG, SPE, SPEE, WPC, SEG, SPWLA and EAGE to maintain the high standards embodied in these guiding documents.
AAPG Datapages/Search and Discovery Article #90350 © 2019 AAPG Annual Convention and Exhibition, San Antonio, Texas, May 19-22, 2019