What is Oil Initially In Place ?

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Oil initially in place (OIIP) is the amount of crude oil first estimated to be in a reservoir. Oil initially in place differs from oil reserves, as OIIP refers to the total amount of oil that is potentially in a reservoir and not the amount of oil that can be recovered. Calculating OIIP requires engineers to determine how porous the rock surrounding the oil is, how high water saturation might be and the net rock volume of the reservoir. The numbers for the aforementioned factors are established by conducting a series of test drills around the reservoir.

Definition

Original Oil in Place (OIIP) refers to the initial estimate of the total amount of crude oil present in a reservoir. Unlike oil reserves, OIIP indicates the total amount of oil in a potential reservoir, not the recoverable portion.

Origin

The concept of Original Oil in Place originated in the early stages of the petroleum industry as a method to estimate the total amount of oil in reservoirs for effective resource management and development planning.

Categories and Features

OIIP is mainly categorized into conventional and unconventional reservoirs. Conventional reservoirs typically have higher porosity and permeability, making extraction easier, while unconventional reservoirs require special techniques like hydraulic fracturing to extract oil. Calculating OIIP involves factors such as rock porosity, water saturation, and net rock volume, determined through exploratory drilling.

Case Studies

For instance, Saudi Aramco uses OIIP to estimate the total oil in its massive Ghawar field, aiding in long-term extraction planning. Another example is the Permian Basin in the USA, where oil companies use OIIP estimates to assess potential production in the area.

Common Issues

Investors often confuse OIIP with recoverable reserves, assuming they are the same. In reality, OIIP is a total estimate, while recoverable reserves are the portion that can actually be extracted. Additionally, OIIP estimates can be inaccurate due to imprecise geological data.

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