What does Oil Reserves mean?
Oil and Gas are contained in underground rock formations called reservoirs. Reserves are defined as those quantities of petroleum which are expected to be commercially recovered from known accumulations.
Futures Knowledge Explains Oil Reserves
Recoverable reserves can be produced using all known primary and enhanced recovery method. Proved reserves are limited to those quantities that are commercial under current economic conditions and denoted by P1. Reserve estimates change with the availability of additional information, new technology and economic environment. Generally, quantities are not classified as reserves unless there is an expectation that the accumulation will be developed and placed on production within a reasonable timeframe.