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1.7.1  Estimation of Reserves
            Estimation of oil and gas reserves in a discovered reservoir is one of the
            most important factors in evaluating the discovery and deciding on its
            viability for commercial development. To determine the volume of oil and/
            or gas present in the reservoir, the bulk volume of the reservoir (V b ) is first
            determined using the available reservoir description data. The volume of
            fluids in the pore spaces of the reservoir rock is then calculated by
            multiplying the bulk volume by the rock porosity (’); this is also known as
            the pore volume of the rock. Porosity is a property of the rock defined as
            the ratio of the volume of the pore spaces within the rock to the bulk
            volume of the rock. The pore volume is normally occupied by oil (or gas)
            and water. The fraction of the pore volume occupied by water is known as
            the water saturation (S w ). The porosity and initial water saturation are
            determined from the logs and core samples obtained from the exploratory
            wells. Therefore, the initial volume of oil (V 0 ) at the reservoir conditions is
            determined by

                 V 0 ¼ V b ’ð1   S w Þ
            This volume of oil is called the initial oil in place (IOIP) or the original oil
            in place (OOIP). This method of estimating the OOIP is known as the
            volumetric method. Other methods (the material balance method and
            decline curve method) also exist for estimating the OOIP.
                 It is impossible to recover all of the OOIP; certain forces within the
            reservoir rock prevent the movement of some oil from the rock to the well.
            The fraction of the OOIP that could be recovered is called the recovery
            factor (E r ), and the total recoverable volume of oil (E r V 0 ) is called the
            proven reserves.
                 The proven reserve for a reservoir changes with time as a result of
            three factors. First, the volume of oil in place decreases as oil is produced
            from the reservoir. Second, as more oil is produced, more reservoir data
            become available, which could change or modify the initial estimate of the
            OOIP. Third, new developments and improvements in recovery and
            production methods may increase the possible recovery factor. Therefore,
            the proven reserve of any field is continuously updated.


            1.7.2  Well Location, Spacing, and Production Rates
            Another important function of reservoir engineering is to determine the
            optimum locations of the wells to be drilled and the production rate from
            each well for the most effective depletion of the reservoir. Where the wells
            should be drilled depends largely on the structural shape of the reservoir






 Copyright 2003 by Marcel Dekker, Inc. All Rights Reserved.
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