On December 29, 2014 3:32 pm
By: Rick Stouffer, Senior Energy Editor, Shale Energy Business Briefing
Oil, Natural Gas Resource Categories Reflect Varying Degrees of Certainty
Crude oil and natural gas resources are the estimated oil and natural gas volumes that might be produced at some time in the future, according to the US Energy Information Administration (EIA).
The volumes of oil and natural gas that ultimately will be produced aren’t known ahead of time. Resource estimates change as extraction technologies improve, as markets evolve, and as oil and natural gas are produced.
For many purposes, oil and natural gas resources are classified into four categories:
• Remaining oil and gas in-place (original oil and gas in-place minus cumulative production at a specific date)
• Technically recoverable resources
• Economically recoverable resources
• Proved reserves
The oil and natural gas volumes reported for each resource category are estimates based on a combination of facts and assumptions regarding the geophysical characteristics of the rocks, the fluids trapped within those rocks, the capability of extraction technologies, and the prices received and costs paid to produce oil and natural gas.