As production of fields declines, revenues will eventually no longer cover costs. As defined by the Petroleum Resources Management System (PRMS), the Reserves class of resources is limited by the earliest truncation of either technical, license, or economic limit. If no technical or license restrictions exist, the economic limit, defined as the time when the maximum cumulative net cash flow occurs for a project, defines the date up to which Reserves may be booked. The complete paper outlines some of the challenges involved in late-life field management and how Reserves assessment may be affected.
Extending Field Life
Oil and gas fields can have lives much longer than initially envisioned.
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