Reserves

Within this section

• Resource endowment
• Low permeability and shale area assessment
• Oil sands area assessment
• Section gas table reserve file [ZIP]
• Data [ZIP]

Resource Classes

The AER classifies Alberta’s hydrocarbon resources into six categories (see Figure R1.1):

• conventional
• low permeability
• shale
• coalbed methane (CBM)
• bitumen
• coal

Categorization allows the AER to customize its reserves and resources evaluations and reports based on unique properties.

Image

Resources

The term “resource” refers to a volume of petroleum estimated to exist in a naturally occurring accumulation within rocks and includes all known volumes and estimated volumes yet to be discovered. 

The AER’s conventional resources and reserves are reported based on the definitions developed by the Inter-Provincial Advisory Committee on Energy (IPACE), established in 1978. IPACE defines conventional resources as the initial volume in place and uses two categories: initial established reserves and ultimate potential.

For most resource classes, the AER uses the Canadian Oil and Gas Evaluation Handbook (COGEH) for evaluation methodologies, which recognizes reserves, quantities of discovered and commercially viable petroleum, and within the low-permeability and shale reports, two resource subcategories: prospective and contingent. Contingent resources are discovered but not commercially viable, and prospective resources are those that are yet discovered.

The AER evaluates bitumen resources and reserves using an IPACE methodology. IPACE defines bitumen resources as the initial volume in place and uses two categories: initial established reserves and ultimate potential. The AER has piloted a project to apply COGEH methodologies to bitumen reserves. The results are in the Oil Sands Area Assessment page.

Reserves

According to the COGEH, the term “reserves” refers to the remaining volume of petroleum that could be recovered from a known resource that is either already being produced or could begin production within about five years. To be classified as reserves, the volume must be recoverable using proven technology, and production must be economically viable. For regulatory purposes, the AER reports established reserves.

Estimates of reserves are used for many purposes: 

• energy regulation and policy
• royalty calculations
• inventory supply forecasting 
• corporate and capital planning
• securities-related reporting