Oil and Gas Reserve Evaluations are an integral part of any part of the lifetime of an oil drill. The process is intended to forecast the estimated petroleum values in your prospect, and can sometimes be called future production value.
It is somewhat important to note that this terminology is not used in some areas of the world. Of course, it’s absolutely vital to know just how much value you can expect from a prospect, as drilling in itself is almost certainly going to be an arduous and an extremely expensive task.
Drilling wells is a process that lasts for years upon years and is well known to be fraught with issues and difficulties. Why is this? It’s a very widely acknowledged fact that no two drills, no two wells, and no two projects are the same- due to geographical differences and the like. As human beings, we generally consider the earth above us as all there is. That’s not the case at all. The earth is a living thing and a living being, and areas of it can be as different as night and day.
Needless to say, these differences can affect a well substantially, and also adversely affect the time and the resources needed to get to the oil and the gas below.
How do companies manage to work out whether a well is worth it? That’s where an oil and gas reserves evaluation company comes into play.
Essentially, a reserves evaluation is absolutely imperative to a company in order to anticipate commercial, economic factors behind recoverable resources which are recovered from wells in oil and gas accumulations beneath the earth.
An oil and gas reserves evaluation will enable your company to work out what is beneath the ground and essentially, the size of the prize which is to be had – or alternatively mean the return from the brink of ruin should a project not be worth the time and the effort. Sometimes, it is considered best simply not to drill and not to extract what oil is there – and billions can be saved by good estimations if a prospect turns out to be a proverbial case of fool’s gold due to increased complexity or other factors.
Throughout the oil and gas industry, decisions are based upon these reports, and the data derived from technical and economic analysis by professionals. It doesn’t matter what the subject is – whether estimated petroleum reserves, future production rates or even expected net income, the assistance of geoscientists, petroscientists, and economists is an absolute must for oil and petroleum companies the world over.