What does Estimated Ultimate Recovery - EUR mean?
The total volume of oil or gas that is expected to be extracted from an underground reserve. Estimated Ultimate Recovery (EUR) is the amount of oil and gas expected to be economically recovered from a reservoir or field by the end of its producing life.
Futures Knowledge Explains Estimated Ultimate Recovery - EUR
Oil is contained in underground reservoirs. Once oil is discovered, wells are drilled to bring oil to the surface. But entire oil cannot be taken out. There are limitation of technology and cost. Estimated Ultimate Recovery refers to the total oil and gas which can be recovered using available technologies economically over entire life cycle of the field. For example, according to a recent study by the US Energy Information Administration, the average estimated ultimate recovery (EUR) of shale oil in the Eagle Ford field in South Texas is estimated to be 168,000 bbl per well. The EUR projection is a key parameter for investment decision making in the oil industry.