The Relationship between Oil Price and Reserves
Article from: OGEL 3 (2005), in Economic and Commercial Context for Oil, Gas and Energy Law
Introduction
Oil price assumptions can impact oil and gas reserve estimates in several ways. First though, some comments on terminology may be helpful. According to the most widely used and industry-accepted definitions and resource classification system (i.e. those of the Society of Petroleum Engineers (SPE), the World Petroleum Council (WPC) and the American Association of Petroleum Geologists (AAPG)), all reserves are required to be commercial, by definition. The term "Commercial Reserves" is therefore a tautology. Conversely, under these definitions, there is no such thing as "Technical ...