CHAPTER 6
Analyzing Reserves
In the oil and gas industry, increasing reserves is one of the single biggest challenges among integrated majors. Increasing proven reserves is a key metric and one of the scorecards by which energy analysts measure exploration and development activity among oil and gas companies. Today, the challenge lies with the integrated majors and other independents to increase their reserve base when 79 percent (according to the Organization of Petroleum Exporting Countries [OPEC]) of the globe's reserves belong to national oil companies. Measuring reserves takes on critical importance as the valuation of these fundamental assets forms the basis of many financial decisions and investments.
Measuring reserves is highly technical ...
