by CC Swift

Created on: April 03, 2009

A Perspective on Trinidad and Tobago's Natural Gas Reserves

In 2007, the Government of Trinidad and Tobago (GOTT) commissioned a consulting firm to do a study of the nation's natural gas reserves. The report, which became known locally as the Ryder Scott Gas Reserves Report, was made available to the general public during the third quarter of 2007. The report questioned the adequacy of our nation's gas reserves and this has fuelled debate on whether or not the "end of the road" was within sight. The report showed that we are consuming our gas reserves much faster than we are replacing them (finding new reserves). Without any further new field discoveries, our country's proved reserves (both oil and gas) will be exhausted by the year 2025. Given that this sector is responsible for almost eighty percent (80%) of Trinidad and Tobago's (T&T's) foreign revenue, it is surprising that public reaction has been negligible. This lack of reaction is probably due to the lack of understanding over the definition of petroleum reserves. Politicians add to the public's confusion as they attempt to class probable reserves as proved reserves since this makes the situation look significantly better.

There are three (3) main categories of reserves, proved, probable and possible. The industry accepted definitions are as follows: > Proved Reserves - the quantities of petroleum, which can be estimated with reasonable certainty to be commercially recoverable from known reservoirs and under defined economic conditions, operating methods and government regulations. Analysis of geo-science and engineering data determined these quantities from a given date forward and there is a 90% probability that the quantities actually recovered will equal or exceed the estimate.

> Probable Reserves - the additional reserves which are less likely to be recovered than proved reserves but more certain to be recovered than possible reserves. Analysis of geo-science and engineering data indicate that there is a fifty percent (50%) probability that the actual quantities recovered will be equal to or exceed the sum of the proved reserves plus probable reserves.

> Possible Reserves - the additional reserves which are less likely to be recoverable than probable reserves. Analysis of geo-science and engineering data suggest that there is a ten percent (10%) probability that the actual quantities recovered will be equal to or exceed the sum of the proved plus probable plus possible reserves.

Simply

• 1
• 2
• Next Page >>