Urgent Problems of Valuation of Recoverable Oil and Gas Reserves

Abstract

Economic, technical, technological, and organizational problems of subsurface management, primarily oil and gas, are considered. The authors justify the necessity of cardinal restructuring of the valuation system for mineral resources and the assessment of the efficiency of their development projects. Social (economic) efficiency criterion should top the agenda here as in several developed countries. This will help not only consider the requirements of the country’s long-term sustainable development but also improve considerably the oil, gas, and condensate recovery factors and reduce the negative environmental consequences. Simultaneously, it is necessary to balance out the interests of the subsurface user, the state, and society, which requires certain changes in the organizational and economic mechanism of implementing subsurface management projects. If oil and gas projects are implemented in conditions of uncertainty and risk, the organizational and economic mechanism of their implementation should envisage the adaptation of projects to the changing conditions and the methods of valuation of reserves should be updated.