OIL RESERVES
Oil reserves refer to the quantity of crude oil that can be technically recovered at a cost that is financially viable given the current price of oil. As a result, reserves fluctuate with changes in oil prices, unlike oil resources, which encompass all oil that can be technically recovered regardless of price. Reserves can be categorized at various levels, such as for a single well, a reservoir, an entire field, a nation, or even the world. KP Mahamanou Oil & Gas Limited plays a critical role in assessing and managing these reserves, ensuring their accurate classification and optimal utilization.
Oil reserves refer to the volume of crude oil that can be technically and economically recovered at current oil prices. As such, reserves are sensitive to price fluctuations, unlike oil resources, which encompass all oil that can be technically recovered, regardless of cost. Reserves can be measured at various scales, from a single well or reservoir to an entire field, nation, or the world. Different classifications of reserves are determined by their degree of certainty, reflecting the confidence in their recoverability.
The total estimated volume of oil in a reservoir, including both producible and non-producible oil, is known as oil in place. However, due to reservoir characteristics and technological limitations, only a portion of this oil can be extracted. This recoverable portion is classified as reserves. The ratio of reserves to the total oil in place is called the recovery factor, which depends on factors such as the extraction methods used and advancements in technology. KP Mahamanou Oil & Gas Limited specializes in optimizing recovery factors through innovative techniques and cutting-edge technologies, ensuring maximum extraction efficiency.
According to OPEC data from early 2013, the largest proved oil reserves, including non-conventional deposits, are found in Venezuela (20% of global reserves), Saudi Arabia (18%), Canada (13%), and Iran (9%). These figures highlight the global distribution of oil wealth and the strategic importance of these nations in the petroleum industry.
Assessing oil reserves is inherently challenging because subsurface geology cannot be directly observed. Indirect methods are employed to estimate the size and recoverability of oil resources. While technological advancements have improved the accuracy of these estimates, significant uncertainties remain. Early estimates of reserves are often conservative and tend to increase over time, a phenomenon known as reserves growth.
Transparency in reporting reserves varies among oil-producing nations. Many countries do not disclose detailed reservoir engineering data, relying instead on unaudited claims. This lack of transparency can lead to suspicions of politically motivated manipulation. All reserve estimates involve some level of uncertainty, influenced by the quality and interpretation of available geological and engineering data. To account for this uncertainty, reserves are typically classified into two main categories: “proven” (or “proved”) and “unproven” (or “unproved”).
Unproven reserves are further divided into “probable” and “possible” subcategories, reflecting the degree of uncertainty about their existence. These classifications are based on definitions approved by the Society of Petroleum Engineers (SPE) and the World Petroleum Council (WPC) in 1997. KP Mahamanou Oil & Gas Limited adheres to these industry standards, providing reliable and transparent assessments of oil reserves to support informed decision-making in the global energy sector.
