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October 31, 1975 - Gerald R. Ford Presidential Library and Museum

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incorporated in computerized auditing procedures to identify incorrect<br />

units of information <strong>and</strong> operators were telephoned to obtain consistent<br />

data.<br />

Misinterpretation of instructions or definitions which were not<br />

flagged by the screen could distort estimates. In the case of natural<br />

gas estimates be1n9 reported in thous<strong>and</strong>s instead of millions of cubic<br />

feet, the estimate would tend to be overstated.<br />

Field Identification <strong>and</strong> Delineation<br />

To compare operator responses to a known base, FEA obtained 1973<br />

crude oil <strong>and</strong> gas production by fields from all States in which this<br />

information was available. However, in many instances, validation<br />

<strong>and</strong> delineation of fields to compare State production, operator production,<br />

field study production, decline curve production, <strong>and</strong> the 100<br />

oil fields <strong>and</strong> 50 gas fields for which the API <strong>and</strong> AGA published<br />

reserve estimates required data tabulations by h<strong>and</strong>. This resulted<br />

from inexact labeling of data entries into the benchmark system,<br />

inexact labeling of field names provided by operators, <strong>and</strong> grouping of<br />

previously individually designated <strong>and</strong> named fields into areas, trends,<br />

<strong>and</strong> other fields.<br />

Throuqh the use of auxiliary information purchased for 15 principal<br />

oil <strong>and</strong> gas producing States including operator production by field <strong>and</strong><br />

State allowable schedules, the FEA was able to identify satisfactorily<br />

<strong>and</strong> delineate virtually all fields for which API, AGA, <strong>and</strong> FEA field<br />

studies reserve data were available.<br />

The expansion of reserves for those responses that did not provide<br />

the data at a field level by using the ratio of reserve to production<br />

would have provided a more precise estimate than the State level expansion<br />

<strong>and</strong> the application of theoretical decline curves to calculate<br />

reserves. However, the delineation problems mentioned would have<br />

greatly increased the time <strong>and</strong> manpower requirements.<br />

Manpower Constraints<br />

There were insufficient technically qualified personnel available<br />

within FEA to complete the study in the allotted time. A total of 25<br />

professionals from three offices of the USBM, one office of<br />

Energy Research Development Administration <strong>and</strong> two FEA Offices assisted<br />

in the processing, analyzing <strong>and</strong> obtaining of additional information<br />

from operators. The work of these professionals contributed significantly<br />

to improvements in data quality. A sufficient number of<br />

personnel were made available to process, edit, encode, keypunch, <strong>and</strong><br />

verify data submissions; develop computerized systems; <strong>and</strong> process the<br />

data. At peak periods in April <strong>and</strong> May between 65 <strong>and</strong> 70 persons worked<br />

on the operator survey portion of this project.<br />

54

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