The Oil and Gas industry is a very convoluted one, requiring a range of different approaches and different disciplines in order to run an oil and gas company – much less make a profit doing so. There are a lot of terms in the oil and gas industry which can easily be mistook for the other, but are different things entirely and not to be confused. Oil and Gas Reserves and Resources Evaluation is a discipline that mostly involves an economical look at assets or potential assets respectively, in order to provide much-needed information to a company about financial risk associated with excavation. Oil and gas reserves and resources are similar in the respect that they present challenges, but the challenges are unique from the other. An oil reserve is viewed in far higher regard than a resource, due to the fact that “resource” denotes crude oil and natural gas accumulations which are known to an oil and gas company, but cannot be produced in a commercial manner due to factors involv
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