Building Bridges: Work to Advance Use of Reserves Guidelines Continues
- Bill Cobb (2008 SPE President)
- Document ID
- Society of Petroleum Engineers
- Journal of Petroleum Technology
- Publication Date
- June 2008
- Document Type
- Journal Paper
- 12 - 14
- 2008. Copyright is retained by the author. This document is distributed by SPE with the permission of the author. Contact the author for permission to use material from this document.
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Much has happened since the Petroleum Resources Management System (PRMS) was completed in March 2007, providing updated definitions and a related classification system for petroleum reserves and resources. This landmark document reflects advancements in technology, the international expansion of the industry, and the increasing role of unconventional resources, as well as incorporating recommended best practices identified in other international petroleum and mineral classification systems.
SPE is proud to have led the effort that produced a set of technical guidelines that can be adopted by oil and gas companies to better manage their business and that can be consistently used in estimating reserves by international financial, regulatory, and reporting bodies. The PRMS is the result of more than 2 years of collaboration by SPE, the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE), with considerable input from the industry at large and other external organizations.
Our work was not over with the completion of the technical definitions. Intense education and training are required to support consistent use by the industry and other financial and regulatory bodies. I want to give you a brief report on the progress that has been made to educate important stakeholders about the new system.
In December, the U.S. Securities and Exchange Commission (SEC) announced it would seek public comment on possible revisions to disclosure requirements for oil and gas reserves, citing the extent and nature of changes that have occurred in the oil and gas industry in the nearly three decades since the commission first adopted its oil and gas disclosure rules. SPE’s Oil and Gas Reserves Committee, among many others, provided comments to the SEC that recommend the use of PRMS as the technical basis for a reporting process. It is notable that the overwhelming majority of comments made to the SEC that addressed the PRMS recommended using it in some form. All of the comments can be viewed on the SEC website at http://www.sec.gov/comments/s7-29-07/s72907.shtml.
To help energy professionals apply the definitions, the Oil and Gas Reserves Committee and SPE’s Reserves Education Committee are collaborating on an applications manual for the PRMS that will include detailed discussion and examples of use. Companies have been asked to submit examples and case studies from petroleum provinces worldwide.
The applications manual will be a valuable, comprehensive, and long-lasting reference document. The manual will be consistent with the PRMS, update and incorporate the content of the 2001 “Guidelines for the Evaluation of Petroleum Reserves and Resources,” and expand the content to address the full spectrum of hydrocarbon evaluation situations experienced by industry. It will be available in the reserves section of www.spe.org.
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