Research Methods of Main Parameter Sensitivity Differences in China’s Dynamic Oil and Gas Reserve Estimation under SEC Standards

Qirong Qin, Lin Liu and Xuefeng Pan
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Qirong Qin: School of Geoscience and Technology, Southwest Petroleum University, Chengdu 610500, China
Lin Liu: School of Geoscience and Technology, Southwest Petroleum University, Chengdu 610500, China
Xuefeng Pan: Exploration and Development Research Institute, Petro China Huabei Oil Company, Renqiu 062552, China

Energies, 2022, vol. 15, issue 15, 1-20

Abstract: International oil and gas companies listed in New York must publish the information of oil and gas reserves under the SEC (United States Securities and Exchange Commission) standards every year. For greatly improving the SEC reserve, the SEC reserve value and the SEC reserve substitution rate, in this article not only the SEC reserve equations have been determined but also the SEC reserve value models have been established. The SEC reserve value models have been verified as correct. Based on these models, the multivariate function calculus method, the multivariate function limit method and the function recurrence method have been adopted to research parameter sensitivity differences rules, parameter adjustment directions, parameter adjustment degrees and SEC reserve parameter linkage adjustment rules. The research is significant, because there are great differences between SEC standards and China’s in reserve management mode, reserve estimation method system and financial management system. It is just these differences that cause the frequent adjustment of SEC reserve parameters during the process of SEC reserve submissions each year. As a result, this article reaches some conclusions. Above all, the article has clarified the parameter quantitative conditions that lead to the sensitivity between the SEC reserve and the initial production to begin stronger and weaker than the sensitivity between the SEC reserve and the price in production exponential, hyperbolic and harmonic decline types. Furthermore, the article has clarified the parameter quantitative conditions that lead to the sensitivity between the SEC reserve value and the initial production to begin stronger and weaker than the sensitivity between the SEC reserve value and the price in common production exponential decline types. Moreover, the article has clarified reserve parameter linkage adjustment rules and found the most significant parameter whose least adjustment will cause the largest reserve increase. In addition, the function calculus method adopted to disclose reserve parameter sensitivity rules will expand the parameter sensitivity analysis method that took the previous statistical mapping method as the main analysis method.

Keywords: SEC oil and gas reserve; SEC oil and gas reserve value; SEC reserve parameter sensitivity differences; parameter linkage adjustment rules; function calculus method; Arps production decline curve method; net present value method; initial production; oil price (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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