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Reserve growth during financial volatility in a technologically challenging world

Open-File Report 2010-1145

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Abstract

Reserve growth (growth-to-known) is the addition of oil and gas quantities to reported proved or proved-plus-probable reserves in discovered fields. The amount of reserve growth fluctuates through time with prevailing economic and technological conditions. Most reserve additions are the result of investment in field operations and in development technology. These investments can be justified by higher prices of oil and gas, the desire to maintain cash flow, and by greater recovery efficiency in well established fields. The price/cost ratio affects decisions for field abandonment and (or) implementation of improved recovery methods. Although small- to medium-size fields might show higher percentages of reserve growth, a relatively few giant fields contribute most volumetric reserve growth, indicating that companies may prefer to invest in existing fields with low geologic and production risk and an established infrastructure in order to increase their price/cost relationship. Whereas many previous estimates of reserve growth were based on past trends of reported reserves, future reserve growth is expected to be greatly affected by financial volatility and fluctuating economic and technological conditions.

Additional Publication Details

Publication type:
Report
Publication Subtype:
USGS Numbered Series
Title:
Reserve growth during financial volatility in a technologically challenging world
Series title:
Open-File Report
Series number:
2010-1145
Edition:
-
Year Published:
2010
Language:
ENGLISH
Publisher:
U.S. Geological Survey
Contributing office(s):
Central Energy Resources Science Center
Description:
iii, 33 p.
Online Only (Y/N):
Y
Additional Online Files(Y/N):
N