Page 90 - Principles of Applied Reservoir Simulation 2E

Chapter 9

Economics and the Environment

Economic analyses are an essential aspect of a reservoir management
study. The economic performance of a prospective project is often the deciding
factor in determining whether or not a project is undertaken. Consequently, it
is important to be aware of basic economic concepts and factors that may effect
the economic performance of a project. These topics are introduced here. Further
details can be found in references such as Thompson and Wright [1985] and
Satter and Thakur [1994].

9.1 SPEAVPC Reserves

The analysis of a petroleum project depends on the amount of commer-
cially valuable resource that is available. According to the Society of Petroleum
Engineers and the World Petroleum Congress [Staff-JPT, 1997], reserves are
those quantities of petroleum which are anticipated to be commercially
recoverable from known accumulations from a given date forward. Table 9-1
summarizes the SPEAVPC definitions of reserves. The definitions of reserves
include both qualitative and quantitative criteria. Although the SPEAVPC
definitions have been adopted in many parts of the world, they are not universal.
For example, a different, yet analogous, set of definitions exists in the Russian
Federation [Nemchenko, et al., 1995; Grace, et al., 1993].

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