Reserves and Resources
Resources are hydrocarbons which may or may not be produced in the future. A resource number may be assigned to an undrilled prospect or an unappraised discovery. Appraisal by drilling additional delineation wells or acquiring extra seismic data will confirm the size of the field and lead to project sanction. At this point the relevant government body gives the oil company a production licence which enables the field to be developed. This is also the point at which oil reserves can be formally booked.
Read more about this topic: Hydrocarbon Exploration
Famous quotes containing the words reserves and/or resources:
“...I want to see a film, they send the Israeli army reserves to escort me! What kind of life is this?”
—Golda Meir (1898–1978)
“Hearing, seeing and understanding each other, humanity from one end of the earth to the other now lives simultaneously, omnipresent like a god thanks to its own creative ability. And, thanks to its victory over space and time, it would now be splendidly united for all time, if it were not confused again and again by that fatal delusion which causes humankind to keep on destroying this grandiose unity and to destroy itself with the same resources which gave it power over the elements.”
—Stefan Zweig (18811942)