Skip to main content

The Difference Between Oil and Gas Reserves and Resources

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 involving safety, difficulty, and financial investment.

Put simply, if a deposit of oil or gas in an existing resource contains oil or gas which is valued at less than it costs to excavate (not a cheap task by any stretch of the imagination) then it is commercially unviable.

What should be known is that the term “resource” is often used when there is no geological information about the reservoir available – or an amount insufficient to begin excavation. Oil and Gas Companies main business is converting resources into reserves via exploration and the utilisation of new developments in technology.

Take Fracking, for instance. The act of Fracking is a very controversial one – but Fracking is an example of a resource being taken advantage of with new technology in order to yield an amount of oil which is higher in value than the cost associated with the extraction in itself.

It should be mentioned that Fracking is not the be all and end all of turning oil and gas resources into reserves. Instead it should merely be regarded as an example of new technology making commercially unviable resources viable.

The subject itself is rather controversial, but generally, there are other technologies that are available to gain more of a yield from an excavation point, and make excavation viable.

Comments

Popular posts from this blog

Home Heating Oil - Best Heating Option

If you’re deciding on what type of heating you want for your home, keep reading to find out why home heating oil Shropshire is the best option for you. When reworking the heating system in your home, or simply planning out a newly-built home, weighing the pros and cons of different heating options can be tough. It used to be simple, you could throw some wood in the fireplace and be good to go. Now we are bombarded with hundreds of brands, systems, and pieces of information that tell us one is better than the other. For a number of reasons that we’ll go over, we advocate that oil is the best home heating fuel option. That isn’t to say that there are pros and cons to the others, because there certainly are. This article will go over some of the fine details in home heating options to help you choose the best one for your home. Most Common Home Heating Options While there are lots of heating options to choose from, we’re going to cover the ones that you’re most likely to consider. The Bo

The Multidisciplinary Nature of AFM

AFM (atomic force microscopy) is used in a seemingly endless range of disciplines, from biology, chemistry and engineering. This is due to its high resolution and versatility, which make it a very useful and powerful tool for imaging the diverse nanoscale world in liquid, air and vacuum environments. AFM use can be highlighted across the disciplines, here are some prime examples of AFM use in specific discipline areas.  Biology - Nanoscale mechanics of brain abscess: an atomic force microscopy study A brain abscess is a life-threatening swelling of part of the brain which arises from an infection. In this example, the viscoelastic properties: Young’s modulus and hysteresis (H) of three layers of brain abscess tissue were measured using atomic force microscopy for the very first time. The measurements were performed immediately after surgical removal where the tissue was rough and inhomogeneous in terms of its thickness. Therefore, an AFM instrument with a large z-range movement had to

When to Order Heating Oil for the Best Price?

As the 1.5 million UK consumers of heating oil Shropshire will know, there can be significant price fluctuations, which can mean paying a different price depending on what time of year it is. Oil and gas prices fluctuate regularly so it can be quite difficult to know when the best time to purchase heating oil is in order to get the best value or the cheapest price - particularly in the run up to the colder winter months when you’ll be using the most home heating oil. On average, a household that uses home heating oil will use two-thirds of its yearly heating oil consumption between October and March. There are many complex factors that influence the price you pay for your home heating oil, this does make it difficult to predict when the best time to buy your oil is. However, by understanding some of the main factors that affect the price of winter heating oil, you will be in a much better position to make an informed decision about when the best time to order is for you. Although, as