Steel Markets
April 21, 2014
Oil and Gas Prices and Rotary Rig Counts
Written by Peter Wright
This month (April 2014) the EIA (U.S. Energy Information Administration) released its report on petroleum reserves for 2012. Proved reserves are estimated volumes of hydrocarbon resources that analysis of geologic and engineering data demonstrates with reasonable certainty are recoverable under existing economic and operating conditions. Reserves estimates change from year to year as new discoveries are made, existing fields are more thoroughly appraised, existing reserves are produced, and prices and technologies change.
Discoveries include new fields, identification of new reservoirs in previously discovered fields, and extensions, which are additions to reserves that result from additional drilling and exploration in previously discovered reservoirs. Within a given year, extensions are typically the largest percentage of total discoveries. While discoveries of new fields and reservoirs are important indicators of new resources, they generally account for a small portion of overall annual reserve additions.
