Reserves and Resources

"Proved reserves" are estimates of the amount of oil recoverable from known reservoirs under current economic and operating conditions.   Total global proved reserves have been estimated at approximately 1 trillion barrels since the late 1980's, because additions to reserves from new discoveries and from revisions to previous estimates have approximately matched the annual volume of oil produced (or withdrawn). 

Proved oil reserves reflect only a fraction of the oil that a reservoir may hold, and say nothing of reservoirs that have not yet been evaluated.  Historically, only some 30 percent of the total oil in a reservoir -- the "original oil-in-place" -- was recoverable.  As pressure declines in the reservoir, the oil becomes costlier and costlier to produce until further production becomes uneconomic

"Recoverable resources" is a broader category, encompassing estimates of both proved and undiscovered volumes that would be economically extractable under specified price-cost relationships and technological conditions.   By definition, there is a lower level of certainty attached to resource estimates than to proved reserve estimates.

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