A New Reserve Growth Model for United States Oil and Gas Fields

Reserve (or field) growth, which is an appreciation of total ultimate reserves through time, is a well-recognized phenomenon, particularly in mature petroleum provinces. The importance of forecasting reserve growth accurately in a mature petroleum province made it necessary to develop improved growth functions, and a critical review of the original Arrington method was undertaken. During a five-year (1992–1996), the original Arrington method gave 1.03% higher than the actual oil reserve growth, whereas the proposed modified method gave a value within 0.3% of the actual growth, and therefore it was accepted for the development for reserve growth models.During a five-year (1992–1996), the USGS 1995 National Assessment gave 39.3% higher oil and 33.6% lower gas than the actual growths, whereas the new model based on Modified Arrington method gave 11.9% higher oil and 29.8% lower gas than the actual growths. The new models forecast predict reserve growths of 4.2 billion barrels of oil (2.7%) and 30.2 trillion cubic feet of gas (5.4%) for the conterminous U.S. for the next five years (1997–2001).     

Reserve Growth in Oil Fields of West Siberian Basin, Russia

Although reserve (or field) growth has proved to be an important contributing factor in adding new reserves in mature petroleum basins, it is a poorly understood phenomenon. Although several papers have been published on the U.S. fields, there are only a few publications on fields in other petroleum provinces. This paper explores the reserve growth in the 42 largest West Siberian oil fields that contain about 55% of the basin's total oil reserves.The West Siberian oil fields show 13-fold reserve growth 20 years after the discovery year and only about 2-fold growth after the first production year. This difference in growth is attributed to extensive exploration and field delineation activities between discovery and the first production year. Because of the uncertainty in the length of evaluation time and in reported reserves during this initial period, reserve growth based on the first production year is more reliable for model development. However, reserve growth models based both on discovery year and first production year show rapid growth in the first few years and slower growth in the following years. In contrast, the reserve growth patterns for the conterminous United States and offshore Gulf of Mexico show a steady reserve increase throughout the productive lives of the fields. The different reserve booking requirements and the lack of capital investment for improved reservoir management and production technologies in West Siberia are the probable causes for the difference in the growth patterns.The models based on the first production year predict that the reserve growth potential in the 42 largest oil fields of West Siberia for a five-year period (1998–2003) ranges from 270–330 million barrels or 0.34–0.42% per year. For a similar five-year period (1996–2001), models for the conterminous United States predict a growth of 0.54–0.75% per year.     

Application of the modified Arps-Roberts discovery proces model to the 1995 U.S. National Oil and Gas Assessment

ARDS (version 4.01), a modified version of the Arps-Roberts discovery process model, was used to forecast the remaining oil and gas resources in more than 50 provinces, super-exploration plays, and individual plays in the onshore and offshore United States for the 1995 National Oil and Gas Assessment. The size distribution of oil and gas fields was estimated for the underlying distribution of fields; the size distribution for the remaining fields was calculated to be the difference between this distribution and that of discovered fields. The guidelines that govern the 1995 National Assessment require the underlying size distribution of fields to be estimated by using only data from two standard commercial data files (the NRG Associates field file and the Petroleum Information Inc. well file). However, a variety of situations required further modification of the discovery process modeling system; for example, multiple exploration plays that occurred nearly simultaneously and also displaced each other in time, and the phenomenon of field growth introduced a large bias in the forecasts produced by the discovery process models for some provinces.     

A comparison of state space and multiple regression for monthly forecasts: U.S. Fuel consumption

Monthly consumption forecasts for U.S. oil, natural gas, and coal are made using state space and multiple regression applied to the same data. These forecasts are compared with actual consumption for a test period. The forecasts made using state space are preferred to those made using multiple regression models for both expost and exante cases. The state space forecasts track data cycles better than do the regression forecasts. Average absolute forecast errors are less for the state space models than they are for the multiple regression models.     

The Evolution of Giant Oil Field Production Behavior

The giant oil fields of the world are only a small fraction of the total number of fields, but their importance is huge. Over 50% of the world’s oil production came from giants by 2005 and more than half of the world’s ultimate reserves are found in giants. Based on this, it is reasonable to assume that the future development of the giant oil fields will have a significant impact on the world oil supply. In order to better understand the giant fields and their future behavior, one must first understand their history. This study has used a comprehensive database on giant oil fields in order to determine their typical parameters, such as the average decline rate and life-times of giants. The evolution of giant oil field behavior has been investigated to better understand future behavior. One conclusion is that new technology and production methods have generally led to high depletion rates and rapid decline. The historical trend points towards high decline rates of fields currently on plateau production. The peak production generally occurs before half the ultimate reserves have been produced in giant oil fields. A strong correlation between depletion-at-peak and average decline rate is also found, verifying that high depletion rate leads to rapid decline. Our result also implies that depletion analysis can be used to rule out unrealistic production expectations from a known reserve, or to connect an estimated production level to a needed reserve base.     

Predicting the Peak in World Oil Production

The US Department of Energy's Energy Information Administration (EIA) recently predicted that world oil production could continue to increase for more than three decades, based on the recent US Geological Survey (USGS) evaluation of world oil resources and a simple, transparent model. However, it can be shown that this model is not consistent with actual oil production records in many different regions, particularly that of the US, from which it was derived. A more careful application of the EIA model, using the same resource estimates, indicates that at best non-OPEC oil production can increase for less than two decades, and should begin to decline at the latest sometime between 2015 and 2020. OPEC at this point will completely control the world oil market and will need to meet increased demand as well as compensate for declining production of non-OPEC producers. OPEC could control the market even sooner than this, given its larger share of proven oil reserves, probable difficulties in transforming non-OPEC undiscovered reserves into proven reserves, and the converging interests of all oil producers as reserves are depleted. This has significant implications for the world economy and for US national security.     

Comparison of Methods Used to Estimate Conventional Undiscovered Petroleum Resources: World Examples

Various methods for assessing undiscovered oil, natural gas, and natural gas liquid resources were compared in support of the USGS World Petroleum Assessment 2000. Discovery process, linear fractal, parabolic fractal, engineering estimates, PETRIMES, Delphi, and the USGS 2000 methods were compared. Three comparisons of these methods were made in: (1) the Neuquen Basin province, Argentina (different assessors, same input data); (2) provinces in North Africa, Oman, and Yemen (same assessors, different methods); and (3) the Arabian Peninsula, Arabian (Persian) Gulf, and North Sea (different assessors, different methods). A fourth comparison (same assessors, same assessment methods but different geologic models), between results from structural and stratigraphic assessment units in the North Sea used only the USGS 2000 method, and hence compared the type of assessment unit rather than the method. In comparing methods, differences arise from inherent differences in assumptions regarding: (1) the underlying distribution of the parent field population (all fields, discovered and undiscovered), (2) the population of fields being estimated; that is, the entire parent distribution or the undiscovered resource distribution, (3) inclusion or exclusion of large outlier fields; (4) inclusion or exclusion of field (reserve) growth, (5) deterministic or probabilistic models, (6) data requirements, and (7) scale and time frame of the assessment. Discovery process, Delphi subjective consensus, and the USGS 2000 method yield comparable results because similar procedures are employed. In mature areas such as the Neuquen Basin province in Argentina, the linear and parabolic fractal and engineering methods were conservative compared to the other five methods and relative to new reserve additions there since 1995. The PETRIMES method gave the most optimistic estimates in the Neuquen Basin. In less mature areas, the linear fractal method yielded larger estimates relative to other methods. A geologically based model, such as one using the total petroleum system approach, is preferred in that it combines the elements of petroleum source, reservoir, trap and seal with the tectono-stratigraphic history of basin evolution with petroleum resource potential. Care must be taken to demonstrate that homogeneous populations in terms of geology, geologic risk, exploration, and discovery processes are used in the assessment process. The USGS 2000 method (7th Approximation Model, EMC computational program) is robust; that is, it can be used in both mature and immature areas, and provides comparable results when using different geologic models (e.g. stratigraphic or structural) with differing amounts of subdivisions, assessment units, within the total petroleum system.     

The space-time structure of oil and gas field growth in a complex depositional system

Shortly after the discovery of an oil and gas field, an initial estimate is usually made of the ultimate recovery of the field. With the passage of time, this initial estimate is almost always revised upward. The phenomenon of the growth of the expected ultimate recovery of a field, which is known as field growth, is important to resource assessment analysts for several reasons. First, field growth is the source of a large part of future additions to the inventory of proved reserves of crude oil and natural gas in most petroliferous areas of the world. Second, field growth introduces a large negative bias in the forecast of the future rates of discovery of oil and gas fields made by discovery process models. In this study, the growth in estimated ultimate recovery of oil and gas in fields made up of sandstone reservoirs formed in a complex depositional environment (Frio strand plain exploration play) is examined. The results presented here show how the growth of oil and gas fields is tied directly to the architectural element of the shoreline processes and tectonics that caused the deposition of the individual sand bodies hosting the producible hydrocarbon.     

A simplified spreadsheet program for estimating future growth of oil and gas reserves

Reserve growth refers to the typical increases in estimated sizes of fields that occur through time as oil and gas fields are developed and produced. Projections of the future reserve growth of known fields have become important components of hydrocarbon resource assessments. In this paper, we present an algorithm for estimating the future reserve growth of known fields. The algorithm, which incorporates fundamental reserve-growth assumptions used by others in the past, is programmed for a personal computer in the form of formulas for a spreadsheet. The primary advantages of this spreadsheet program lie in its simplicity and ease of use. We also present a library of 17 different growth functions that provides numerical models for predicting the future sizes of existing oil and gas fields in various regions of the United States. These growth functions are formatted for use in the spreadsheet program.     

Econometric and learning curve estimation of U.S. potential oil supply

This study employs (1) a simple econometric model to generate a time series of drilling footage to the year 2040 and (2) learning models to estimate the oil reserve additions from that drilling, given scenarios of oil price and projected U.S. population. Reserve additions are estimated separately for the lower 48 states and Alaska regions by estimating separate drilling footage and learning models for each region. Generally, the estimates of potential supply from undiscovered oil fields and from extensions of known fields are more optimistic than recent estimates by others. For a $1989 price of about $20/barrel (bbl), which is similar to recent prices, the potential supply of oil is estimated to be approximately 60.7 billion bbl, with 95-percent confidence bounds of 54.3 and 67.1 billion bbl. For a price of $25.50/bbl, potential supply is estimated to be approximately 82 billion bbl, with 95-percent confidence bounds of 74.5 and 89.5 billion bbl. Although estimates of potential oil supply for the entire United States are more optimistic than other recent estimates, the part of that supply estimated to be forthcoming from Alaska is smaller than other recent estimates: 2.3 and 3.3 billion bbl for prices of about $20 and $25.50 per barrel, respectively. Thus, reserve additions from the lower 48 states through development drilling and through improved recovery and production technologies will become increasingly important to future U.S. oil supply.     

An assessment of oil supply and its implications for future prices

This paper examines three issues related to both the U.S. and world oil supply: (1) the nature of the long-term, postpeak production profile for the U.S. and, by inference, other regions (the Hubbert curve is used as a “strawman” model); (2) implications on U.S. energy security of using a modified Hubbert-type conceptual model of prepeak production, testing the adequacy of Latin America to be the primary source of U.S. oil imports; and (3) the cyclic behavior of oil prices. it shows that U.S. production will exhibit a more attenuated decline than that simulated by the Hubbert curve and not decline to zero. it asserts that U.S. production is better predicted by past reserves than past production, but that this argument does not apply to nations that keep a much larger proportion of reserves in the ground. Such nations could considerably expand production without any growth in reserves. The paper concedes that the potential total production for these nations could be examined with a Hubbert curve model linked to reserves, but with great uncertainty. Such an uncertain optimistic forecast predicts that the cumulative production of Latin America could far exceed that of the United States. Nevertheless, a statistical model of oil prices since 1870 implies that real wellhead oil prices in the United States are on a long-term upward path, underlying a much more “noisy” cyclical pattern estimated to include 22- and 27-year cycles. The statistical model predicts a severe oil shock within a few years (of 1998) but also predicts that through 2030, real oil prices will not reach 1981 levels again. The paper examines U.S. and world trends in seismic exploration, drilling locations and depths, drilling costs, oil/gas reserves, oil/gas use rates, and oil demand. After taking these factors into consideration, it concludes that the statistical model of oil prices cannot be disputed, despite its lack of basis in economic theory.     

A petroleum discovery-rate forecast revisited—The problem of field growth

A forecast of the future rates of discovery of crude oil and natural gas for the 123,027-km² Miocene/Pliocene trend in the Gulf of Mexico was made in 1980. This forecast was evaluated in 1988 by comparing two sets of data: (1) the actual versus the forecasted number of fields discovered, and (2) the actual versus the forecasted volumes of crude oil and natural gas discovered with the drilling of 1,820 wildcat wells along the trend between January 1, 1977, and December 31, 1985. The forecast specified that this level of drilling would result in the discovery of 217 fields containing 1.78 billion barrels of oil equivalent; however, 238 fields containing 3.57 billion barrels of oil equivalent were actually discovered. This underestimation is attributed to biases introduced by field growth and, to a lesser degree, the artificially low, pre-1970's price of natural gas that prevented many smaller gas fields from being brought into production at the time of their discovery; most of these fields contained less than 50 billion cubic feet of producible natural gas.     

Worldwide Estimates of Deep Natural Gas Resources Based on the U.S. Geological Survey World Petroleum Assessment 2000

The U.S. Geological Survey recently assessed undiscovered conventional gas and oil resources in eight regions of the world outside the U.S. The resources assessed were those estimated to have the potential to be added to reserves within the next thirty years. This study is a worldwide analysis of the estimated volumes and distribution of deep (>4.5 km or about 15,000 ft), undiscovered conventional natural gas resources based on this assessment. Two hundred forty-six assessment units in 128 priority geologic provinces, 96 countries, and two jointly held areas were assessed using a probabilistic Total Petroleum System approach. Priority geologic provinces were selected from a ranking of 937 provinces worldwide. The U.S. Geological Survey World Petroleum Assessment Team did not assess undiscovered petroleum resources in the U.S. For this report, mean estimated volumes of deep conventional undiscovered gas resources in the U.S. are taken from estimates of 101 deep plays (out of a total of 550 conventional plays in the U.S.) from the U.S. Geological Survey's 1995 National Assessment of Oil and Gas Resources. A probabilistic method was designed to subdivide gas resources into depth slices using a median-based triangular probability distribution as a model for drilling depth to estimate the percentages of estimated gas resources below various depths. For both the World Petroleum Assessment 2000 and the 1995 National Assessment of Oil and Gas Resources, minimum, median, and maximum depths were assigned to each assessment unit and play; these depths were used in our analysis. Two-hundred seventy-four deep assessment units and plays in 124 petroleum provinces were identified for the U.S. and the world. These assessment units and plays contain a mean undiscovered conventional gas resource of 844 trillion cubic ft (Tcf) occuring at depths below 4.5 km. The deep undiscovered conventional gas resource (844 Tcf) is about 17% of the total world gas resource (4,928 Tcf) based on the provinces assessed and includes a mean estimate of 259 Tcf of U.S. gas from the U.S. 1995 National Assessment. Of the eight regions, the Former Soviet Union (Region 1) contains the largest estimated volume of undiscovered deep gas with a mean resource of343 Tcf.     

Verification of the motion fields over Southeast Asia by the Florida State University (FSU) superensemble forecast

The Florida State University (FSU) multimodel superensemble forecast is evaluated against several other operational weather models for the Southeast Asia region. The superensemble technique has demonstrated its exceptional skills in forecasting precipitation, motion and mass fields compared to either individual global operational or ensemble mean forecasts. The motion field investigation for the season of 2001 reveals that the superensemble forecasts are closer to the observed data compared to the other global member operational models through its low systematic errors at the 850 hPa level. The FSU multimodel superensemble forecasts exhibit the lowest root mean square errors (RSMEs), the highest correlation against the best observed data and the lowest systematic errors compared to the other operational model members. These forecasts have the potential to provide better daily weather predictions over the Southeast Asia region, particularly during the early northeast monsoon that often causes heavy rainfall in the equatorial part of the Southeast Asia region.     

Deep Natural Gas Resources

From a geological perspective, deep natural gas resources generally are defined as occurring in reservoirs below 15,000 feet, whereas ultradeep gas occurs below 25,000 feet. From an operational point of view, deep may be thought of in a relative sense based on the geologic and engineering knowledge of gas (and oil) resources in a particular area. Deep gas occurs in either conventionally trapped or unconventional (continuous-type) basin-center accumulations that are essentially large single fields having spatial dimensions often exceeding those of conventional fields.Exploration for deep conventional and continuous-type basin-center natural gas resources deserves special attention because these resources are widespread and occur in diverse geologic environments. In 1995, the U.S. Geological Survey estimated that 939 TCF of technically recoverable natural gas remained to be discovered or was part of reserve appreciation from known fields in the onshore areas and state waters of the United States. Of this USGS resource, nearly 114 trillion cubic feet (Tcf) of technically recoverable gas remains to be discovered from deep sedimentary basins. Worldwide estimates of deep gas also are high. The U.S. Geological Survey World Petroleum Assessment 2000 Project recently estimated a world undiscovered conventional gas resource outside the U.S. of 844 Tcf below 4.5 km (about 15,000 feet).Less is known about the origins of deep gas than about the origins of gas at shallower depths because fewer wells have been drilled into the deeper portions of many basins. Some of the many factors contributing to the origin and accumulation of deep gas include the initial concentration of organic matter, the thermal stability of methane, the role of minerals, water, and nonhydrocarbon gases in natural gas generation, porosity loss with increasing depth and thermal maturity, the kinetics of deep gas generation, thermal cracking of oil to gas, and source rock potential based on thermal maturity and kerogen type. Recent experimental simulations using laboratory pyrolysis methods have provided much information on the origins of deep gas.Technologic problems are among the greatest challenges to deep drilling. Problems associated with overcoming hostile drilling environments (e.g. high temperatures and pressures, and acid gases such as CO₂ and H₂S) for successful well completion, present the greatest obstacles to drilling, evaluating, and developing deep gas fields. Even though the overall success ratio for deep wells (producing below 15,000 feet) is about 25%, a lack of geological and geophysical information continues to be a major barrier to deep gas exploration.Results of recent finding-cost studies by depth interval for the onshore U.S. indicate that, on average, deep wells cost nearly 10 times more to drill than shallow wells, but well costs and gas recoveries differ widely among different gas plays in different basins.Based on an analysis of natural gas assessments, deep gas holds significant promise for future exploration and development. Both basin-center and conventional gas plays could contain significant deep undiscovered technically recoverable gas resources.     

Unconventional Energy Resources: 2011 Review

This report contains nine unconventional energy resource commodity summaries prepared by committees of the Energy Minerals Division (EMD) of the American Association of Petroleum Geologists. Unconventional energy resources, as used in this report, are those energy resources that do not occur in discrete oil or gas reservoirs held in structural or stratigraphic traps in sedimentary basins. These resources include coal, coalbed methane, gas hydrates, tight gas sands, gas shale and shale oil, geothermal resources, oil sands, oil shale, and uranium resources. Current U.S. and global research and development activities are summarized for each unconventional energy commodity in the topical sections of this report. Coal and uranium are expected to supply a significant portion of the world’s energy mix in coming years. Coalbed methane continues to supply about 9% of the U.S. gas production and exploration is expanding in other countries. Recently, natural gas produced from shale and low-permeability (tight) sandstone has made a significant contribution to the energy supply of the United States and is an increasing target for exploration around the world. In addition, oil from shale and heavy oil from sandstone are a new exploration focus in many areas (including the Green River area of Wyoming and northern Alberta). In recent years, research in the areas of geothermal energy sources and gas hydrates has continued to advance. Reviews of the current research and the stages of development of these unconventional energy resources are described in the various sections of this report.     

Oil- and gas-resource assessment in certain South American Basins—An application of ARDS (Ver. 5.0) to complex exploration and discovery histories

The modified Arps-Roberts Discovery Process Modeling System [ARDS (Ver. 4.01)] has recently been upgraded [ARDS (Ver. 5.0)] and applied to a wide variety of field discovery and wildcat drilling data with differing characteristics. ARDS is designed to forecast the number and sizes of undiscovered fields in an exploration play or basin by using historical drilling and discovery data. Fields used as input may be grown or ungrown. Two models for field growth—one offshore and the other onshore—have been implemented (Schuenemeyer and Drew, 1996). Uncertainty attributable to field growth is estimated via simulation. This upgrade of ARDS has been designed to handle situations when the data cannot be partitioned into homogeneous regions, but where estimation of the number of remaining oil and gas fields is still meaningful. In this upgrade of ARDS, many restrictions, which include those on the number of fields and wildcat wells required to forecast the size distribution of the oil and gas fields that remain to be discovered in an exploration play, a basin, or other target area, have been removed. In addition, flexibility has been gained by reforming the criteria for convergence of the model. In all, 32 basins and subbasins in South America were examined, 18 of which had sufficient data to be amenable to forecasting the field-size distribution of undiscovered oil and gas resources directly by using the Petroconsultants Inc. (1993) field discovery and wildcat drilling data. Overall, ARDS (Ver. 5.0) performed well in estimating the field-size distribution of undiscovered oil and gas resources in the 18 basins and subbasins. The aggregate volume of undiscovered petroleum resources was characterized by using histograms of the distribution of resources and the following five statistics: the mean, the 80% trimmed mean, and the 10,50 (median), and 90 quantiles. More than 38 billion barrels of oil equivalent (BOE) in fields that contain more than one million BOE individually were forecast as remaining to be discovered. The largest basin, the Campos (Brazil), is forecast to contain nearly 10 billion BOE undiscovered resources. The East Venezuela Basin (excluding the Furrial Trend) is forecast to contain about 8 billion BOE; the Austral-Magallanes Basin (Argentina and Chile), about 7 billion BOE; and the Napo (Colombia and Ecuador) and the Neuquen (Argentina) Basins, between 3 billion and 4 billion BOE. A subset of these basins that illustrate the increased flexibility of ARDS are discussed.     

World oil: Hotelling depletion or accelerating use?

In theoretical Hotelling-type models of resource depletion, oil use declines monotonically over time to depletion. However, world oil use has been increasing for several years. Can theory and reality be reconciled? The answer is affirmative, if theory is modified to accommodate outward-shifting demand functions that are rising in response to growth in world population and income. Under this assumption, a Hotelling depletion model projects a 50-year period of increasing world oil use before the decline to exhaustion. This holds for both competitive and monopolistic regimes. Hotelling theory has been criticized by Adelman and others, in part because of the unreality of the theoretical projections. By combining the modified Hotelling theory with U.S. Geological Survey resource estimates, the numerical projections seem congruent with Adelman's near-term expectations. Finally, a backstop technology, such as renewable biomass ethanol, introduces a new dimension. Assuming a $2-per-gallon cost for the ethanol, the modified Hotelling theory projects accelerating use of conventional oil until depletion or substitution. Consequently, it does not seem unreasonable to believe that a finite, limited resource of conventional oil is consistent with growing use for several decades. A projected exhaustion in 100 years is consisten with increasing use for 50 years.     

Guiding Principles of USGS Methodology for Assessment of Undiscovered Conventional Oil and Gas Resources

During the last 30 years, the methodology for assessment of undiscovered conventional oil and gas resources used by the Geological Survey has undergone considerable change. This evolution has been based on five major principles. First, the U.S. Geological Survey has responsibility for a wide range of U.S. and world assessments and requires a robust methodology suitable for immaturely explored as well as maturely explored areas. Second, the assessments should be based on as comprehensive a set of geological and exploration history data as possible. Third, the perils of methods that solely use statistical methods without geological analysis are recognized. Fourth, the methodology and course of the assessment should be documented as transparently as possible, within the limits imposed by the inevitable use of subjective judgement. Fifth, the multiple uses of the assessments require a continuing effort to provide the documentation in such ways as to increase utility to the many types of users. Undiscovered conventional oil and gas resources are those recoverable volumes in undiscovered, discrete, conventional structural or stratigraphic traps. The USGS 2000 methodology for these resources is based on a framework of assessing numbers and sizes of undiscovered oil and gas accumulations and the associated risks. The input is standardized on a form termed the Seventh Approximation Data Form for Conventional Assessment Units. Volumes of resource are then calculated using a Monte Carlo program named Emc2, but an alternative analytic (non-Monte Carlo) program named ASSESS also can be used. The resource assessment methodology continues to change. Accumulation-size distributions are being examined to determine how sensitive the results are to size-distribution assumptions. The resource assessment output is changing to provide better applicability for economic analysis. The separate methodology for assessing continuous (unconventional) resources also has been evolving. Further studies of the relationship between geologic models of conventional and continuous resources will likely impact the respective resource assessment methodologies.     

A Bootstrap Approach to Computing Uncertainty in Inferred Oil and Gas Reserve Estimates

This study develops confidence intervals for estimates of inferred oil and gas reserves based on bootstrap procedures. Inferred reserves are expected additions to proved reserves in previously discovered conventional oil and gas fields. Estimates of inferred reserves accounted for 65% of the total oil and 34% of the total gas assessed in the U.S. Geological Survey's 1995 National Assessment of oil and gas in US onshore and State offshore areas. When the same computational methods used in the 1995 Assessment are applied to more recent data, the 80-year (from 1997 through 2076) inferred reserve estimates for pre-1997 discoveries located in the lower 48 onshore and state offshore areas amounted to a total of 39.7 billion barrels of oil (BBO) and 293 trillion cubic feet (TCF) of gas. The 90% confidence interval about the oil estimate derived from the bootstrap approach is 22.4 BBO to 69.5 BBO. The comparable 90% confidence interval for the inferred gas reserve estimate is 217 TCF to 413 TCF. The 90% confidence interval describes the uncertainty that should be attached to the estimates. It also provides a basis for developing scenarios to explore the implications for energy policy analysis.