Reservoir engineering in the context of "United States Securities and Exchange Commission"

Petroleum engineering is a field of engineering concerned with the activities related to the production of hydrocarbons, which can be either crude oil or natural gas or both. Exploration and production are deemed to fall within the upstream sector of the oil and gas industry. Exploration, by earth scientists, and petroleum engineering are the oil and gas industry's two main subsurface disciplines, which focus on maximizing economic recovery of hydrocarbons from subsurface reservoirs. Petroleum geology and geophysics focus on provision of a static description of the hydrocarbon reservoir rock, while petroleum engineering focuses on estimation of the recoverable volume of this resource using a detailed understanding of the physical behavior of oil, water and gas within porous rock at very high pressure.

The combined efforts of geologists and petroleum engineers throughout the life of a hydrocarbon accumulation determine the way in which a reservoir is developed and depleted, and usually they have the highest impact on field economics. Petroleum engineering requires a good knowledge of many other related disciplines, such as geophysics, petroleum geology, formation evaluation (well logging), drilling, economics, reservoir simulation, reservoir engineering, well engineering, artificial lift systems, completions and petroleum production engineering.

Reservoir simulation is an area of reservoir engineering in which computer models are used to predict the flow of fluids (typically, oil, water, and gas) through porous media.

The creation of models of oil fields and the implementation of calculations of field development on their basis is one of the main areas of activity of engineers and oil researchers. On the basis of geological and physical information about the properties of an oil, gas or gas condensate field, consideration of the capabilities of the systems and technologies for its development create quantitative ideas about the development of the field as a whole. A system of interrelated quantitative ideas about the development of a field is a model of its development, which consists of a reservoir model and a model of a field development process. Layer models and processes for extracting oil and gas from them are always clothed in a mathematical form, i.e. characterized by certain mathematical relationships. The main task of the engineer engaged in the calculation of the development of an oil field is to draw up a calculation model based on individual concepts derived from a geological-geophysical study of the field, as well as hydrodynamic studies of wells. Generally speaking, any combination of reservoir models and development process can be used in an oil field development model, as long as this combination most accurately reflects reservoir properties and processes. At the same time, the choice of a particular reservoir model may entail taking into account any additional features of the process model and vice versa.