PRMS Classifications: Updated Methodology for Resource Inventory Management
- Chris Carpenter (JPT Technology Editor)
- Document ID
- Society of Petroleum Engineers
- Journal of Petroleum Technology
- Publication Date
- December 2019
- Document Type
- Journal Paper
- 50 - 51
- 2019. Society of Petroleum Engineers
- 8 in the last 30 days
- 38 since 2007
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This article, written by JPT Technology Editor Chris Carpenter, contains highlights of paper SPE 195298, “Defining and Deriving the Proper Order of Movements From Prospective Resources, to Contingent Resources, to Reserves (and back),” by Nefeli Moridis, SPE, Morgan Quist, SPE, and W. John Lee, SPE, Texas A&M University; Wayne Sim, SPE, Aucerna; and Thomas Blasingame, SPE, Texas A&M University, prepared for the 2019 SPE Western Regional Meeting, San Jose, California, USA, 23–26 April. The paper has not been peer reviewed.
This paper presents a methodology that provides the upstream industry with a robust approach to petroleum inventory management. The authors describe the proper order of movements of resources within the Petroleum Resources Management System (PRMS) classification structure from Prospective Resources to Contingent Resources, to Reserves (and back). The methodology describes the causes of change in classification and what these changes mean when classifying Reserves as well as what are termed resources other than reserves (ROTR).
The PRMS provides a framework for classifying petroleum resources as Reserves, Contingent Resources, or Prospective Resources, and uses the terms “classify” and “categorize” when placing resources into inventory. Classification depends on the chance of commerciality, and categorization depends on the certainty of recovery. Resources can then be subclassified within a given class on the basis of the differences in their chance of commerciality. The definitions of the subclasses for Reserves, Contingent Resources, and Prospective Resources are presented in Table 1 of the complete paper.
The subclasses of Reserves (On Production, Approved for Development, and Justified for Development) are related to progressing a project though final approvals to implementation and initiation of production and product sales.
The subclasses of Contingent Resources (Development Pending, Development on Hold, Development Unclarified, and Development Not Viable) can be related to gathering and analyzing data and clarifying the maturity of the project. These subclasses mainly focus on contingencies that may prevent a project from being classified as Reserves.
The subclasses of Prospective Resources (Play, Lead, and Prospect) are those that can move a project closer to a decision to proceed with exploration drilling. To progress through Prospective Resources, one should focus on Plays, and try to identify more Leads. Ultimately, the goal is to obtain Prospects. This differs from the decision-making process through Contingent Resources and Reserves that only requires additional data or studies that are used to understand the project better.
Although the authors focus their efforts on the inventorying of unconventional resources, the proposed methodology can be applied to conventional resources as well.
|File Size||73 KB||Number of Pages||2|