Proven reserves, also called proved reserves, measured reserves, 1P, and Reserves, are business or political terms regarding fossil fuel energy sources. (see prove: usage). They are defined as a "Quantity of energy sources estimated with reasonable certainty, from the analysis of geologic and engineering data, to be recoverable from well established or known reservoirs with the existing equipment and under the existing operating conditions." These terms relate to common fossil fuel reserves such as oil reserves (see main article), natural gas reserves, or coal reserves.
Operating conditions includes operational break-even price, regulatory and contractual approvals, of which without these items cannot be classified as proven and are usually classified into probable. Price changes therefore can have a large impact on classification of proven reserves. Regulatory and contractual conditions may change, and also affect proven reserves amount.
Read more about Proven Reserves: Numbered Terms, More Terms, Reserve Evaluations, Valuations and Certifications, See Also
Famous quotes containing the words proven and/or reserves:
“For a man who loves power, competition from the gods is annoying. I have done away with that. I have proven to these illusory gods that a man, if he has the will, can practice, without any apprenticeship, their ridiculous trade.”
—Albert Camus (1913–1960)
“...I want to see a film, they send the Israeli army reserves to escort me! What kind of life is this?”
—Golda Meir (1898–1978)