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David H. Root

Publications and source records attributed to David H. Root.

13 recordsLinked to original sources

World petroleum resource estimates and production forecasts: Implications for government policy

Resource estimates alone will not give advance warning of encroaching production difficulties. An analysis of the general stages in the evolution of petroleum production and discovery and of industry statistics provides an estimate of when the stage characterised by increasing production in the market economy countries outside the United States and Canada will end. The analysis indicates that the year of maximum production will be in the 1990s. Economic growth aggravates the difficulties accompanying the production decline by advancing the date of peak production and by increasing the adjustments that must be made as oil production declines.

Natural Resources Forum

The enigma of oil and gas field growth

Growth in estimates of recovery in discovered fields is an important source of annual additions to United States proved reserves. This paper examines historical field growth and presents estimates of future additions to proved reserves from fields discovered before 1992. Field-level data permitted the sample to be partitioned on the basis of recent field growth patterns into outlier and common field sets, and analyzed separately. The outlier field set accounted for less than 15% of resources, yet grew proportionately six times as much as the common fields. Because the outlier field set contained large old heavy-oil fields and old low-permeability gas fields, its future growth is expected to be particularly sensitive to prices. A lower bound of a range of estimates of futu e growth was calculated by applying monotone growth functions computed from the common field set to all fields. Higher growth estimates were obtained by extrapolating growth of the common field set and assuming the outlier fields would maintain the same share of total growth that occurred from 1978 through 1991. By 2020, the two estimates for additions to reserves from pre-1992 fields are 23 and 32 billion bbl of oil in oil fields and 142 and 195 tcf of gas in gas fields.

American Association of Petroleum Geologists Bulle

Small fields in the National Oil and Gas Assessment

In the 1989 National Oil and Gas Assessment prepared by the U.S. Geological Survey (USGS) and the Minerals Management Service, undiscovered oil and gas resources in small fields were assessed separately from resources in fields containing more than 1 million bbl of oil equivalent. This paper concerns the USGS Part of the study: onshore and state waters in the conterminous United States. After the resources in small fields were assessed by geologists, statistical techniques were used to allocate these resources to field-size distributions at the province level. The total numbers of small fields remaining to be discovered is estimated at about 77,800. They account for about 10.6 billion bbl of oil equivalent or 20% of the undiscovered resources in the conterminous United st tes. When an economic analysis was applied to the small fields, none of the offshore small fields were estimated to be commercially developable. For the onshore study area, about 52% of the small oil fields and 46% of the small gas fields are commercially developable. Overall, because more hydrocarbons are contained in the larger size classes of the small fields, about 70% of the undiscovered resources in small fields is expected to be commercially developable.

American Association of Petroleum Geologists Bulle

Statistics of petroleum exploration in the Caribbean, Latin America, Western Europe, the Middle East, Africa, non-communist Asia, and the southwestern Pacific

This circular presents a summary of the geographic location, amount, and results of petroleum exploration, including an atlas showing explored and delineated prospective areas through 1990. The data show that wildcat well drilling has continued through the last decade to expand the prospective area by about 40,000 to 50,000 square miles per year. However, the area delineated by 1970, which represents only about one-third of the prospective area delineated to date, contains about 80 percent of the oil discovered to date. This discovery distribution suggests that, from an overall prospective, the industry was successful in delineating the most productive areas early. The price increases of the 1970's and 1980's allowed the commercial exploration and development of fields in high-cost areas, such as the North Sea and Campos Basin, Brazil. Data on natural-gas discoveries also indicate that gas will be supplying an increasing share of the worldwide energy market. The size distribution of petroleum provinces is highly skewed. The skewed distribution and the stability in province size orderings suggest that intense exploration in identified provinces will not change the distribution of oil within the study area. Although evidence of the field-growth phenomenon outside the United States and Canada is presented, the data are not yet reliable enough for projecting future growth. The field-growth phenomenon implies not only that recent discoveries are substantially understated, but that field growth could become the dominant source of additions to proved reserves in the future.

Circular

Statistics of petroleum exploration in the non-Communist world outside the United States and Canada

The search for petroleum has expanded to include most countries in the world. From January 1, 1950, through 1980, about 160,000 crew months were spent in geologic and geophysical exploration in a study area that includes all nonCommunist countries outside the United States and Canada. By the end of 1982, almost 27,000 wildcat wells had been drilled in this study area; these and other pre-1983 wells delineated a prospective area of 1.56 million square miles in which about 836 billion barrels of ultimately recoverable crude oil has been found, 62 percent of it since 1950. The delineated prospective area is still expanding at a rate of 56,000 square miles per year (60 square miles per wildcat well) for the study area, and it is increasing in nearly every country in the study area. Maps of the delineated prospective area in each country show that in most countries, only a small part of the national territory has been explored. In spite of the expansion of the searched area, however, the rate of discovery has declined significantly from 22 million barrels per exploratory well in the 1950's to 8 million barrels per exploratory well in the 1970's.

Circular

Distribution and quantitative assessment of world crude oil reserves and resources

World Demonstrated Reserves of crude oil are approximately 723 billion barrels of oil (BBO). Cumulative production is 445 BBO and annual production is 20 BBO. Demonstrated Reserves of crude-oil have declined over the past 10 years consistent with discoveries lagging production over the same period. The assessment of Undiscovered Resources shows a 90 percent probability that the amount discoverable lies between 321 and 1,417 BBO, 550 BBO being the most likely value. The most likely value for Ultimate recoverable resources is 1,718 BBO. The distribution of Ultimate Resources of crude oil will remain highly skewed toward the Middle East; no frontier areas that have potentials large enough to significantly affect present distribution are recognized. Rates of discovery have continued to decline over the past 20 years even though exploration activity has increased in recent years. Prudence dictates, therefore, that the low side of the assessment of Undiscovered Resources be responsibly considered and that alternate energy sources be a part of future planning. Extra-heavy oil and bitumen are assessed separately, with Reserves being figured as the annual productive capacity of installed facilities times 25 years. The annual production of extra-heavy oil is about 8 million barrels and of bitumen about 60 million barrels.

Open-File Report

Petroleum-resource appraisal and discovery rate forecasting in partially explored regions

PART A: A model of the discovery process can be used to predict the size distribution of future petroleum discoveries in partially explored basins. The parameters of the model are estimated directly from the historical drilling record, rather than being determined by assumptions or analogies. The model is based on the concept of the area of influence of a drill hole, which states that the area of a basin exhausted by a drill hole varies with the size and shape of targets in the basin and with the density of previously drilled wells. It also uses the concept of discovery efficiency, which measures the rate of discovery within several classes of deposit size. The model was tested using 25 years of historical exploration data (1949-74) from the Denver basin. From the trend in the discovery rate (the number of discoveries per unit area exhausted), the discovery efficiencies in each class of deposit size were estimated. Using pre-1956 discovery and drilling data, the model accurately predicted the size distribution of discoveries for the 1956-74 period. PART B: A stochastic model of the discovery process has been developed to predict, using past drilling and discovery data, the distribution of future petroleum deposits in partially explored basins, and the basic mathematical properties of the model have been established. The model has two exogenous parameters, the efficiency of exploration and the effective basin size. The first parameter is the ratio of the probability that an actual exploratory well will make a discovery to the probability that a randomly sited well will make a discovery. The second parameter, the effective basin size, is the area of that part of the basin in which drillers are willing to site wells. Methods for estimating these parameters from locations of past wells and from the sizes and locations of past discoveries were derived, and the properties of estimators of the parameters were studied by simulation. PART C: This study examines the temporal properties and determinants of petroleum exploration for firms operating in the Denver basin. Expectations associated with the favorability of a specific area are modeled by using distributed lag proxy variables (of previous discoveries) and predictions from a discovery process model. In the second part of the study, a discovery process model is linked with a behavioral well-drilling model in order to predict the supply of new reserves. Results of the study indicate that the positive effects of new discoveries on drilling increase for several periods and then diminish to zero within 2? years after the deposit discovery date. Tests of alternative specifications of the argument of the distributed lag function using alternative minimum size classes of deposits produced little change in the model's explanatory power. This result suggests that, once an exploration play is underway, favorable operator expectations are sustained by the quantity of oil found per time period rather than by the discovery of specific size deposits. When predictions of the value of undiscovered deposits (generated from a discovery process model) were substituted for the expectations variable in models used to explain exploration effort, operator behavior was found to be consistent with these predictions. This result suggests that operators, on the average, were efficiently using information contained in the discovery history of the basin in carrying out their exploration plans. Comparison of the two approaches to modeling unobservable operator expectations indicates that the two models produced very similar results. The integration of the behavioral well-drilling model and discovery process model to predict the additions to reserves per unit time was successful only when the quarterly predictions were aggregated to annual values. The accuracy of the aggregated predictions was also found to be reasonably robust to errors in predictions from the behavioral well-drilling equation.

Professional Paper