Tuesday, April 8, 2014

Good humor on oil/natgas reserves estimation:
Reserves are like fish . . .
-- Proved developed: The fish is in your boat. You have weighed him. You can smell him, and you will eat him.
-- Proved undeveloped: The fish is on your hook in the water by the boat, and you are ready to net him. You can tell how big it looks...and they always look bigger in the water.
-- Probable: Fish are in the lake. You may have caught some yesterday. You may be able to see them today, but you have not yet caught any.
-- Possible: The lake has water. Someone may have told you there are fish in the lake. You have your boat on the trailer, but you may go play golf instead.

Source: http://www.bloombergview.com/articles/2014-04-04/fracking-is-like-fishing

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