Techbits: Workshop and Survey Focus on SPE Petroleum Resources Management System

Abstract

Techbits An SPE workshop titled “Application of the SPE Petroleum Resources Management System (Unconventional Resources),” was held 14 November, the day after the 2013 SPE Unconventional Resources Conference and Exhibition–Asia Pacific in Brisbane, Australia. The workshop attracted 83 participants from nine countries and speakers from the exploration and production sector, the finance sector, service companies, consultancies, and academia. The goal of the workshop was to highlight the challenges faced by the industry in estimating unconventional resources. The SPE-PRMS, published in March 2007, endeavors to encompass the full life cycle of all types of petroleum resources. Since 2007, the industry has experienced remarkable growth in unconventional resources. Unconventional plays challenge the fundamental conventional definitions of reserves and resources estimation, including the definitions required to demonstrate a discovery and commerciality. Within the investment and regulatory community, the growth and importance of unconventional reserves and resources have fueled discussion on the credibility and dependability of oil and gas estimates. To assist in the application of the SPE-PRMS, a second document called Guidelines for Application of the Petroleum Resources Management System was published by SPE in 2011. Based on discussions I have noted in the industry, it seems there is a need for further clarification in the interpretation and application of the PRMS. The workshop gave an opportunity to gauge participants’ perception of the SPE-PRMS. A survey was sent to the 83 participants; 37 responded. The results of this small survey are set out below. The demographics and experience level of the respondents were not captured and, therefore, the results are conditional. The comments are the author’s interpretation of the survey results. As with all surveys, it is possible that how the respondents answered questions may apply to a broader population. The goal here, though, is to provoke discussion and debate that could contribute to future improvements in the SPE-PRMS. The survey asked the participants to indicate agreement, disagreement, or neutrality to a series of statements. Respondents’ answers were intended to provide insight into how clear the SPEPRMS is, how well understood it is, and respondents’ level of confidence in it. Ideally, interpretation and implementation of the SPE-PRMS in estimating reserves/resources is independent of the reserve estimator. The first two survey statements endeavor to gauge the perception of consistency between reserve estimators in estimating conventional and unconventional reserves.