Uncertainty in Oil Reservoir Properties Deterministic and Stochastic Methods of Reserves Estimation

Risk and uncertainty in the industry of oil and gas are very important issues that have major impact in oil industry. This due to the fact that the value of risk and uncertainty in projects with portfolio worth of several million dollars, have also value of worth millions of dollars. During the process of project approval and development in oil industry, risk and uncertainty have been taken in serious consideration by the engineers and they have achieved considerable success. Uncertainty in oil industry has its impact in resource and reserves estimation, because the information we need to use, reservoir data properties, production data, geophysic data etc, have always in some degree some uncertainty. While risk and uncertainty in oil resource estimation are never eliminated, what is very important to us is their evaluation.