Reserves Evaluation Price Differentials Explained
An in-depth explanation of price differentials as they relate to reserve evaluations by our lead petroleum engineer, Kurt Mire, perfect for students and other industry professionals looking to understand more about oil and gas evaluations!
Reserves Evaluation Price Differentials Table Of Contents
- What Are Price Differentials?:
- Why are they important?
- Determining Price Differentials:
- Example Of Oil Differential Analysis:
- Recap:
Reserves Evaluation Price Differentials Study Guide
EUR (Estimated Ultimate Recovery) Vs Reserves Google Slide/PowerPoint
1.) What Are Price Differentials?
- EUR is the ultimate amount of oil & gas that will be produced over the life of a well
- Reserves are volumes of oil and gas that are left to produce
- Knowing the ‘as of’ date is crucial to determine which is which
2.) Determining Price Differentials
- Crude Oil
- Condensate
- Associated Gas
- Non Associated Gas
- Natural Gas Liquids (NGL’s)
3.) Example Of Oil Differential Analysis
- Crude Oil
- Condensate
- Associated Gas
- Non Associated Gas
- Natural Gas Liquids (NGL’s)
4.) Price Differential Recap
- Reserves are always remaining
- Reserves change everyday when the well is producing
- If you change the ‘as of’ date, the reserves will also change
- The only time EUR & reserves are the same is before you drill the well
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