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)
“When we want culture more than potatoes, and illumination more than sugar-plums, then the great resources of a world are taxed and drawn out, and the result, or staple production, is, not slaves, nor operatives, but men,—those rare fruits called heroes, saints, poets, philosophers, and redeemers.”
—Henry David Thoreau (1817–1862)