A Discussion on Functions of Economic Factors in Evaluation of SEC Reserves

Concept of reserves in China has been changing from geologic reserves to remaining economic recoverable reserves, which emphasize the influences of economic factors on evaluation of SEC reserves, since the successful public listing of Chinese oil companies in foreign stock market. Based on the basic flow of reserves evaluation with net present value method and the economic parameters needed, this paper analyzes the influences of economic factors on evaluation of SEC reserves. It is concluded that production descending pattern of the field determines remaining technical recoverable reserves, while economic factors determine remaining economic recoverable reserves, on which oil price has the most remarkable impacts.