A Suggestion for SEEA classifications of energy resources

Ole Gravgård Pedersen

Statistics DenmarkSejrøgade 11

DK 2100 Ø+45 3917 3488

ogp@dst.dk

Two dimensions relevant for SEEA:

1) Classification by type of energy ressource: Coal, oil, gas, etc.

SEEA 2003: EA.1 Natural resources

EA.11 Mineral and energy resources EA.111 Fossil fuels

EA.112 Metallic minerals EA.113 Non-metallic minerals

EA.12 Soil resources EA.13 Water resources EA.14 Biological resources

2) Classification by ”quality”/uncertainty: SEEA 2003: Reference to proven, probable and possible reserves

(McKelvey type classification)

SNA 2008: 12.17 …sub-soil assets are defined as those proven subsoil resources … that are economically exploitable, given current technology and relative prices.

New breakdown of EA.11 Mineral and energy - focusing on energy EA.1 Natural resources EA.11 Mineral and energy resources EA.111 Petroleum resources

EA.111.1 Natural gas EA.111.2 Oil EA.111.3 Natural bitumen, extra heavy oil, and others n.e.c. EA.112 Non-metallic minerals

EA.112.1 Solid energy resources EA.112.1.1 Coal EA.112.1.2 Other solid energy resources (oil shale,

others n.e.c.) EA.112.2 Other non-metallic minerals EA.113 Metallic minerals

EA.113.1 Uranium ores EA.113.2 Other metallic minerals EA.12 Soil resources EA.13 Water resources EA.14 Biological resources

Alignment with the MFA/product classification?

Classification by type of energy ressource:

Classification by asset characteristics

New SEEA classification based on /aligned with the UNFC classification

UNFC: United Nations Framework Classification for Fossil Energy and Mineral Resources

• Endorsed by the UN Economic Commission for Europe,

• Recommended for worldwide application by the United Nations Economic and Social Council (ECOSOC) (Resolution 2004/233)

Geological knowledge (G)Reflects the uncertainty in the estimates.

Figure 1. UNFC Classification principle

Geological axis

Project Feasibilityaxis

Economicaxis

Economic and commercial viability (E)Reflects whether or not there are hindrances to extraction in the social and economic domain.

Field project status and feasibility (F)Ranges from early exploration and research projects, to development, production and abandonment projects.

UNFC

Use the highest level possible, i.e. no more details than needed

Main questions: •What is the total ressource?•How much is recoverable?•What is the best estimate of future extraction?

Criteria for incorporating UNFC in SEEA:

A. Best estimate of reservesThe experts’ best bid on what will be extracted in the future (50 per cent probability of extraction ?)

B. Other reserves Still recoverable, but lower probability of extraction (Based on high bid – 10 per cent probability of extraction ?)

C. Other resources

Should hypothetical resources (G4) be left out ?

Suggested SEEA classification

B r id g e b e tw e e n S E E A c la ss if ic a t io n a n d U N F C c a te g o r ie s fo r p e tro le u m

S E E A U N F C c o d e s A . B e s t e s t im a te o f re s e r v e s 111 , 11 2 B . O th e r re s e r v e s 11 3 C . O th e r re s o u rc e s 1 2 1 , 1 2 2 , 1 2 3 , 2 2 1 , 2 2 2 , 2 2 3 3 11 ,3 1 2 , 3 1 3 , 3 2 1 , 3 2 2 , 3 2 3 , 3 3 1 , 3 3 2 , 3 3 3

B r id g e b e tw e e n S E E A c la ss i f ic a t io n a n d U N F C c a te g o r ie s fo r c o a l, u r a n iu m o re s a n d o t h e r so l id re so u rc e s

S E E A U N F C c o d e s A B e s t e s t im a te o f re s e r v e s P ro v e d M in e ra l re s erv es 11 1 P ro b a b le M in e ra l re se rv e s 1 2 1 , 1 2 2 B O th e r re s e r v e s E m p ty C O th e r re s o u rc e s F e a s ib ili ty m in e ra l re so u rce s 2 11 P re -fe a s ib ili ty m in e ra l re so u rc e s 2 2 1 , 2 2 2 M e a su re d m in era l re so u rc e s 3 3 1 In d ic a te d m in e ra l re so u rc e s 3 3 2 In fe rre d m in e ra l re so u rc e s 3 3 3 N o te : C a te g o rie s in i ta lic s r e fe r to U N F C c la ss es

Mapping of resource classifications

Solid energy resourcesPetroleum

SEEEA UNFC CRIRSCO IAEA/NEA(Uranium)

UNFC SPE

A. Best estimate of reserves 111 + 121 + 122 Proven + probable

Part of RAR + part of EAR II * /Inferred resources (costs < US $ 80 / kg U)

111+112 Proven + probable

B. Other reserves Not applicable Not applicable Not applicable 113 Possible

C. Other resources Others, except G4 Others, except Reconnaissance

Others, except Speculative resources, SR

Others, except G4

Others, except Undiscovered

Non-asset resources (not included in SEEA-E)

G4 Reconnaissance G4 Undiscovered

SPE: Society of Petroleum Engineers CRIRSCO: Committee for Mineral Reserves International Reporting StandardsIAEA/IEA: International Atomic Energy Agency/International Energy Agency).UNFC: United Nations Framework Classification for Fossil Energy and Mineral Resources RAR: Reasonable Assured Resources. EAR: Estimated Additional Resources. *The part included in A. Best estimate of reserves is those for which suggested extraction costs are lower than US$ 80 per Kg U (1 January 2005).

Next steps:

- Continue cooperation with the UNFC aiming at complete integration

- The UNECE Group of Experts on Harmonization of Fossil Energy and Mineral Resources Terminology (AHGE) is currently working on further harmonizaton of the terminology and a high level version of the UNFC that is largely commodity independent.