When Brent Crude oil was worth about $80 per barrel and with the 67% recovery, w

Question

When Brent Crude oil was worth about $80 per barrel and with the 67% recovery, what is the potential value (to nearest $ Billion)? Congratulations - If you are now a registered petroleum geologist!. 1 Barrel petroleum = 42 gallons of crude oil, which yields 20 gallons of motor gasoline 1 gallon motor gasoline = 125,000 Btu [British Thermal Units] (1 Btu = energy to raise 1 pound water by 1 degree Fahrenheit = "1 match with a burned finger") 1 Barrel = 5.8 million BTU (= 1.46 billion calories, or 6.1 billion joules, or 1700 kilowatt hours) 1 cubic foot Natural Gas = 1021 BTU 1 ton (2000 lb: 1000 kg) Coal = about 20.7 million BTU

Explanation / Answer

4. Total content of reservoir is 50 million barrells

cost of each barell is $80.

So total potential value of reservoir is = $ 50x 80 million = $ 400 million

Recovery is only 67% , so potential value becomes = $400 m x 0.67 = $268 million

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