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Number 20, January 2000
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We
Have Moved
In Novemeber 1999 the WPC moved out of its office space
in the Institute of Petroleum to its own ofices not
far away in Duchess Street London
The new address and contact details are as follows:
World Petroleum Congresses
Fourth Floor, Suite 1
1 Duchess Street
London
W1N 3DE
Pierce Riemer (Director General):
Tel : +44 - (0)20-7637- 4958
Fax: +44 - (0)20-7637 - 4965
email: pierce@world-petroleum.org
Lamia Elhouni (Executive Secretary):
Tel: +44 - (0)20-7637 - 4995
Fax:+44 - (0)20-7637 - 4973
email: lamia@world-petroleum.org
email: (enquiry) secretariat@world-petroleum.org
How to
find us in London
Rio
2002 Vote
As you will have realised from a recent mailing the
votes to decide on the date for the 17th Congress
have now been counted. The result was 43 members for
and 2 against. This means that the Congress will be
in 2002 and will take place on 1st to the 5th of September
2002. Future Congresses will revert to a 3 year cycle
with the 18th Congress being in 2005.
Congress
2005
As we are getting closer to the PC meeting in Calgary
we have to start thinking about the 18th Congress
in 2005. Can I remind member countries that submissions
need to be received at the London office prefrabably
before the end of February.
Petroleum
Resources
In december 1999 we sent out o all committees the
latest draft of the work being carried out by Anibal
Martinez in conjunction with the SPE. The following
is the draft and please forward any comments to Anibal
Martinez at Martinezan@pdvsa.com
PETROLEUM RESOURCES CLASSIFICATION AND DEFINITIONS
SOCIETY OF PETROLEUM ENGINEERS (SPE) AND WORLD PETROLEUM
CONGRESSES (WPC)
In March 1997, the Society of Petroleum Engineers (SPE)
and the World Petroleum Congresses (WPC) approved
a set of petroleum reserves definitions which represented
a major step forward in their mutual desire to improve
the level of consistency in reserves estimation and
reporting on a worldwide basis. As a further development,
the SPE and WPC recognized the potential benefits
to be obtained by expanding the definitions to cover
the entire resource base, including those quantities
of petroleum contained in accumulations that are currently
sub-commercial or that have yet to be discovered.
These other resources represent potential future additions
to reserves and are therefore important to both countries
and companies for planning and portfolio management
purposes.
In 1987, the WPC published its report “Classification
and Nomenclature Systems for Petroleum and Petroleum
Reserves”, which included definitions for all
categories of resources. The WPC report, together
with definitions by other industry organizations and
recognition of current industry practice, provided
the basis for the system outlined here.
Nothing in the following resource definitions should
be construed as modifying the existing definitions
for petroleum reserves as approved by the SPE/WPC
in March 1997. As with unproved (i.e. probable and
possible) reserves, the intent of the SPE and WPC
in approving additional classifications beyond proved
reserves is to facilitate consistency among professionals
using such terms. In presenting these definitions,
neither organization is recommending public disclosure
of quantities classified as resources. Such disclosure
is left to the discretion of the countries or companies
involved. Any estimation of resource quantities for
an accumulation or group of accumulations is subject
to both technical and commercial uncertainties, and
should, in general, be quoted as a range. In the case
of reserves, and where appropriate, this range of
uncertainty can be reflected in estimates for Proved
Reserves (1P), Proved plus Probable Reserves (2P)
and Proved plus Probable plus Possible Reserves (3P)
scenarios. For other resource categories, the terms
Low Estimate, Best Estimate and High Estimate are
recommended.
 As
indicated in Figure 1, the Low, Best and High Estimates
of potentially recoverable volumes should reflect
some comparability with the reserve categories of
Proved, Proved plus Probable and Proved plus Probable
plus Possible, respectively. While there may be a
significant risk that sub-commercial or undiscovered
accumulations will not achieve commercial production,
it is useful to consider the range of potentially
recoverable volumes independently of such a risk.
Figure 1
Where probabilistic methods are used, these estimated
quantities should be based on methodologies analogous
to those applicable to the definitions of reserves;
therefore, in general, there should be at least a
90% probability that, assuming the accumulation is
developed, the quantities actually recovered will
equal or exceed the Low Estimate. In addition, equivalent
probability values of 50% and 10% should, in general,
be used for the Best and High Estimates respectively.
Where deterministic methods are used, a similar analogy
to the reserve definitions should be followed. As
one possible example, consider an accumulation that
is currently not commercial due solely to the lack
of a market. Where a market is subsequently developed,
and in the absence of any new technical data, the
Proved Reserve estimate would be expected to approximate
the previous Low Estimate.
DEFINITIONS
The resource classification system is summarized in
Figure 1 and the relevant definitions are given below.
In general, resources are defined as including all
quantities of petroleum which are estimated to be
initially-in-place; however, some users consider only
the estimated recoverable portion to constitute a
resource. In these definitions, those quantities estimated
to be initially-in-place are defined as such and the
recoverable portions are defined separately. In any
event, it should be understood that reserves constitute
a subset of resources, being those quantities that
are discovered (i.e. in known accumulations), recoverable,
commercial and remaining.
TOTAL PETROLEUM INITIALLY-IN-PLACE
Total Petroleum-initially-in-place is those quantities
of petroleum which are estimated to exist originally
in naturally occurring accumulations. Total Petroleum-initially-in-place
is, therefore, those quantities of petroleum which
are estimated, on a given date, to be contained in
known accumulations, plus those quantities already
produced therefrom, plus those estimated quantities
in accumulations yet to be discovered. Total Petroleum-initially-in-place
may be subdivided into Discovered Petroleum-initially-in-place
and Undiscovered Petroleum-initially-in-place, with
Discovered Petroleum-initially-in-place being limited
to known accumulations. It is recognized that all
Petroleum-initially-in-place quantities may constitute
potentially recoverable resources since the estimation
of the proportion which may be recoverable can be
subject to significant uncertainty and will change
with variations in commercial circumstances and technological
developments. A portion of those quantities classified
as Unrecoverable may become recoverable resources
in the future as commercial circumstances change or
technological developments occur.
DISCOVERED PETROLEUM-INITIALLY- IN-PLACE
Discovered Petroleum -initially -in-place are those
quantities of petroleum which are estimated, on a
given date, to be contained in known accumulations,
plus those quantities already produced therefrom.
Discovered Petroleum -initially -in-place may be subdivided
into Commercial and Sub-commercial categories, with
the estimated potentially recoverable portion being
classified as Reserves and Contingent Resources respectively,
as defined below.
RESERVES
Reserves are defined as those quantities of petroleum
which are anticipated to be commercially recovered
from known accumulations from a given date forward.
Reference should be made to the full SPE/WPC Petroleum
Reserves Definitions for the complete definitions
and guidelines. Estimated recoverable quantities from
known accumulations which do not fulfil the requirement
of commerciality should be classified as Contingent
Resources, as defined below. The definition of commerciality
for an accumulation will vary according to local conditions
and circumstances and is left to the discretion of
the country or company concerned. However, reserves
must still be categorized according to the specific
criteria of the SPE/WPC definitions and therefore
proved reserves will be limited to those quantities
that are commercial under current economic conditions,
while probable and possible reserves may be based
on future economic conditions. In general, quantities
should not be classified as reserves unless there
is an expectation that the accumulation will be developed
and placed on production within a reasonable timeframe.
In certain circumstances, reserves may be assigned
even though development may not occur for some time.
An example of this would be where fields are dedicated
to a long-term supply contract and will only be developed
as and when they are required to satisfy that contract.
CONTINGENT RESOURCES
Contingent Resources are those quantities of petroleum
which are estimated, on a given date, to be potentially
recoverable from known accumulations, but which are
not currently considered to be commercially recoverable.
Contingent Resources may include, for example, accumulations
for which there is currently no viable market, or
where commercial recovery is dependent on the development
of new technology, or where evaluation of the accumulation
is still at an early stage.
UNDISCOVERED PETROLEUM-INITIALLY -IN-PLACE
Undiscovered Petroleum -initially -in-place is those
quantities of petroleum which are estimated, on a
given date, to be contained in accumulations yet to
be discovered. The estimated potentially recoverable
portion of Undiscovered Petroleum-initially-in-place
is classified as Prospective Resources, as defined
below.
PROSPECTIVE RESOURCES
Prospective Resources are those quantities of petroleum
which are estimated, on a given date, to be potentially
recoverable from undiscovered accumulations.
ESTIMATED ULTIMATE RECOVERY
Estimated Ultimate Recovery (EUR) is not a resource
category as such, but a term which may be applied
to an individual accumulation of any status/maturity
(discovered or undiscovered). Estimated Ultimate Recovery
is defined as those quantities of petroleum which
are estimated, on a given date, to be potentially
recoverable from an accumulation, plus those quantities
already produced therefrom.
AGGREGATION
Petroleum quantities classified as Reserves, Contingent
Resources or Prospective Resources should not be aggregated
with each other without due consideration of the significant
differences in the criteria associated with their
classification. In particular, there may be a significant
risk that accumulations containing Contingent Resources
or Prospective Resources will not achieve commercial
production.
RANGE OF UNCERTAINTY
The Range of Uncertainty, as shown in Figure 1, reflects
a reasonable range of estimated potentially recoverable
volumes for an individual accumulation. For undiscovered
accumulations (Prospective Resources) the range will,
in general, be substantially greater than the ranges
for discovered accumulations. In all cases, however,
the actual range will be dependent on the amount and
quality of data (both technical and commercial) which
is available for that accumulation. As more data become
available for a specific accumulation (e.g. additional
wells, reservoir performance data) the range of uncertainty
in EUR for that accumulation should be reduced
Uruguay
1999 Meetings
 |
| Dirk van
der Meek with his wife Bep and Senior Vice
President Ing. Carlos Bechelli |
|
 |
| Uruguay NC
Sec Mr Pedro Baridon seated with Mr William
Zattar. |
|
 |
| Left to right,
Mr. Husain Al Sunaidi and Mr. Mansour Daftarian
with SPC Secretary Lamia Elhouni |
|
 |
| Pierce Riemer,
Director General, flanked by Randy Gossen
of CANOC and SPC Chair Dr. F Pradas Perez. |
|
Punta del Este, Uruguay, was the meeting place for
the WPC’s 1999 Annual General Meeting. From
October 1st-5th the meetings of the SPC, CAC,DC and
EB were held at the Conrad Resort and Casino Hotel,
Punta del Este, hosted by the Secretary of the Uruguay
National Committee Mr Pedro Baridon. WPC members were
delighted to see the return of WPC President Ir Dirk
van der Meer who attended
Several key issues concerning the Calgary Congress
were discussed and finalised by the Scientific Programme
Committee which met on October 1st. As well reviewing
Forum Chair Progress Reports received to date, the
Committee approved the up-to-date list of Forum and
RFP Vice Chair nominations and agreed on increasing
.
collaboration between the SPC Secretariat in London
and CANOC to monitor all aspects of the Congress paper
selection process. CANOC reported on its activities
to the SPC, CAC and EB and encouraged National Committees
to set up WPC-16 website accounts which are free of
charge. The Chair of CANOC, Mr Jim Gray, also gave
a report to the EB and underscored the need to get
more involvement in the Congress from National Committees.
After lengthy discussions of SPC matters the Committee
agreed not to hold a further SPC meeting in Spring
2000 unless warranted by SPC Secretariat and CANOC.
The Brazilian Organising Committee gave an extensive
presentation of plans for the Rio Congress and expressed
thanks to CANOC for the support shown towards the
Brazil National Committee. At the meetings, the Brazilian
Organising Committee outlined its strategy for holding
the
17th WPC in 2002 which would ensure government support
and avoid collision with other congresses:
2000 16th WPC Calgary
2001 18th WEC Argentina
2002 17th WPC Rio
2003 IGU Tokyo
2004 19th WEC Australia
2005 18th WPC (to be decided)
2006 IGU Amsterdam
WPC members, some of whom were in Uruguay for the
first time, were treated to an excellent programme
ofsocial events after the meetings were held, including
dinners at the scenic Las Cumbres Restaurant, La Posta
del Cangrejo, La Bourgogne and a barbecue at the famous
Lapataia ranch.
IP
Week
The 14th – 17th February 2000 are the dates
for the Institute of Petroleum’s annual IP week
in London.
 |
| He Sheikh
Yamani, speaks on the first day |
|
This well-known event has been running for a number
of years and a large attendance is expected. Speakers
during the week include, He Sheikh Yamani, Mark Moody
Stuart, He Dr Rilwanu Lukman, Patrick Thompson, Dr
Richard Ward and Lee Raymond. The event starts on
Monday 14th February with a one day conference entitled
“Oil & Gas: An Industry Fit For the New
Millennium”. The last two years have been momentous
ones for the international oil and gas industry throughout
the world and many topics will be addressed during
the day. Volatile and frequently low oil prices, mergers
amongst the largest oil companies, continuing privatisation
in many parts of the world, ongoing cost reduction
initiatives, uncertain recovery from economic problems
in Asia, Russia and Latin America, a growing convergence
of oil, gas and power markets and a revolution in
the use of IT to manage complex businesses have all
contributed to a period of unprecedented change in
the structure and management of the oil industry and
will be the subject of much discussion during this
first day, chaired by Peter Ellis Jones.
On Monday afternoon there will be a press conference
for Jim Gray, Chairman of the Canadian National Organising
Committee (WPC), where he will promote the 16th Congress
to the World media. Jim is also the main speaker on
Tuesday evening at the IP London Branch Evening Discussion
Meeting. The title of his presentation is “16th
World Petroleum Congress: Why you should be there”.
Canada will become the focus of the attention of the
energy world when Calgary hosts the 16th World Petroleum
Congress (WPC) in June 2000 and Jim will discuss the
opportunities presenting themselves in exploration
and development in Canada today and discuss progress
on the 16th Congress.
Tuesday starts of with a seminar on Bunker Trading
and Risk Management, which will examine some aspects
of the fuel oil trading markets and compares the bunker
market with the cargo market, particularly against
the background of price risk management. Also on Tuesday
there is a seminar entitled “Towards the Total
Energy Company” This seminar will discuss issues
in the wider energy sector. As with oil, large-scale
mergers have occurred. In other cases companies have
chosen, or been forced, to withdraw from some areas
and focus on others. In what is potentially the most
significant development for the long term there has
been a convergence between the oil and utility sectors,
towards the Total Energy Company, with major oil companies
moving towards gas and power retailing, and utilities
moving back up the value chain to establish midstream
and upstream positions. In either case, power generation
and energy trading are pivotal skills. All these topics
will be debated in what promises to be an interesting
day.
On Wednesday the 13th Oil Price Seminar and Exhibition
on Coping with Oil Price Volatility – Liquidity
in the Pricing Instruments is followed in the evening
by the very popular Instituite Annual Dinner. Thursday
is the last day of IP week and features an International
Conference on “The Middle East – The Key
to Global Oil Supply”. In recent years, oil
and gas have been in abundant supply and consumer
countries have been able to feel confident in security
of supply. Yet, if we look at production and reserves
statistics, it is immediately apparent that the rest
of the world is producing its reserves relatively
quickly and thus in the long term is becoming ever
more dependent on the Middle East which now accounts
for more than 70% of the world oil reserves. Any informed
opinion on the future of oil supply or price must
therefore include consideration of the oil, economic
and political outlook for the countries in this region.
This promises a facinating conclusion to a very busy
week.
For further information on any aspect of IP week please
contact Pauline Ashby, Conference Administrator at
he Institute of Petroleum in London, (fax +44 (0)
171 255 1472
In
Brief
In November 1999 we updated the “In Brief”
leaflet and issued it to all National Committees.
This will, be re-printed after the 16th Congress to
reflect the changes in officers and committees. We
feel that it is a useful tool for promoting the WPC.
If you have an comments, suggestions, corrections,
or would like additional copies please forward your
requests to the London office.
National
Committee Involvement
It is important for the future success of the Congresses
that the member countries do as much as they can within
their own countries to publisissd the congress. This
can be achieved in many ways. Some of the most popular
are: Publishing the Congress on your website or providing
links. Please link to www.wpc2000.com Advertising
the event in any local newsletters. Distributing event
details among members, local industry and government.
Organising special events to promote business opportunities
in Canada. Encouraging your colleagues to attend.
Talking to you local press/media contacts Supplying
information to relevant journals.
News
from the Internet
Go to forum.wpc.2000.com - The latest documents for
paper and poster presenters are now online.
Dates
for the WPC Diary
2000 Spring meeting DC/CAC - 9-11th February 2000 11th
- 15th June, 16th Congress, Calgary Canada.
Committee
Meetings in Calgary
SPC Saturday June 10th EB Sunday June 11th PC Wednesday
June 14th (Lunch 12, meeting 12.30) EB Friday June
16th
New
Directory
By the time you read this you should have received
the new Directory. This will be updated very soon
after the Calgary Congress. If you have any changes
or suggestions please let us know as soon as possible.
Member
Countries
Current WPC members |
