PRMS

Oil and gas reserves and resources are defined as volumes that will be commercially recovered in the future. Unlike the inventory of a manufacturing company, reserves are physically located in reservoirs deep underground and cannot be visually inspected or counted, but rather are estimates based on the evaluation of data that provides evidence of the amount of oil and gas present. There is no definitive answer until the end of a reservoir's producing life. All reserve estimates involve some degree of uncertainty. The estimation of reserves volumes is generally performed by highly-skilled individuals who use their experience and professional judgment in the calculation of those volumes. To take into account this uncertainty, the PRMS incorporates a central framework that categorizes reserves and resources according to the level of certainty associated with their recoverable volumes (horizontal axis in the figure below), and classifies them according to the potential for reaching commercial producing status (vertical axis).