Prediction of volumes and risk in hydrocarbon exploration: a quantification of geology

 The prediction of the hydrocarbon potential of a specific trap or of a number of specific traps (venture), referred to herein as prospect appraisal, concerns a probabilistic exercise based on the quantification of geology in terms of structural closure, reservoir quality, hydrocarbon charge, and the retention potential of the seal. Its objectives include: (a) prediction of the hydrocarbon volumes that could be present in the trap from an analysis of its geologic attributes; (b) the amount of uncertainty introduced in the volumetric prediction by the uncertainties in the subsurface geology; (c) the risk that one or more of the essential attributes of the prospect are underdeveloped and recoverable reserves are absent. The uncertainty of the geologic input requires a probabilistic approach, for which the Monte Carlo procedure is well suited. Prospect appraisal forms the basis for decision-making in oil exploration and development and, therefore, should be reliable, consistent, and auditable. This requires the use of a consistent methodology, the development of reliable models to quantify the geologic processes involved, and the collection of comprehensive and relational databases for the many geologic variables. As a result of data availability, uncertainty and risk tend to increase strongly from mature, producing basins to areas of frontier exploration. This may complicate management of exploration portfolios. Received: 1 July 1996/Accepted: 25 November 1996