Estimated Ultimate Recovery (EUR)

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  • Post last modified:December 15, 2023
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Estimated Ultimate Recovery (EUR) is a term commonly used in the oil and gas industry to refer to the total expected recoverable reserves of hydrocarbons from a well or a field over its productive life. EUR is an important metric in reservoir engineering and plays a crucial role in estimating the economic viability of an oil or gas project.

Key points related to Estimated Ultimate Recovery (EUR) include:

1. **Definition:** EUR represents the total estimated amount of hydrocarbons, usually expressed in barrels of oil equivalent (BOE) or cubic feet, that can be economically recovered from a reservoir over its lifetime.

2. **Factors Influencing EUR:**
– **Reservoir Characteristics:** The geology and properties of the reservoir, such as porosity, permeability, and pressure, influence the recoverability of hydrocarbons.
– **Recovery Methods:** The techniques and technologies used for extraction, such as primary recovery, secondary recovery (e.g., water flooding), and enhanced oil recovery (EOR), can impact EUR.
– **Fluid Properties:** The type and properties of hydrocarbons in the reservoir, including viscosity and composition, influence recovery.

3. **Calculation Methods:** EUR is often estimated using a combination of geological and engineering data, reservoir simulation models, and historical production data. Reservoir engineers use various methods, including decline curve analysis, material balance calculations, and numerical reservoir simulations, to project future production and estimate the ultimate recovery.

4. **Uncertainty:** Estimating EUR involves a degree of uncertainty due to the complex nature of subsurface reservoirs and various factors influencing recovery. As additional data becomes available during the production life of a field, engineers may update and refine their estimates.

5. **Economic Significance:** EUR is a critical factor in assessing the economic viability of an oil or gas project. It influences investment decisions, project financing, and overall project economics. Companies use EUR estimates to evaluate the potential return on investment and make decisions regarding field development and production strategies.

6. **Reporting Standards:** In financial and regulatory reporting, oil and gas companies often disclose estimated reserves, including the EUR, based on standardized reporting frameworks such as those provided by the Society of Petroleum Engineers (SPE) and the World Petroleum Council (WPC).

7. **Lifecycle Considerations:** EUR is considered throughout the lifecycle of an oil or gas field. It is initially estimated during the exploration and appraisal phase and is continuously reassessed as more data becomes available during the production phase.

8. **Field Development Planning:** Engineers and geoscientists use EUR estimates to plan the development and optimization of oil and gas fields. This includes determining the number and location of wells, selecting extraction methods, and optimizing production rates.

EUR is a dynamic metric that evolves as more data is acquired, and it is a key factor in the long-term planning and management of oil and gas reservoirs. Accurate EUR estimates are essential for making informed decisions about field development, production strategies, and overall project economics.