PRMS

PRMS stands for Petroleum Resources Management System, a framework for classifying and reporting petroleum resources and reserves. It was developed by the Society of Petroleum Engineers (SPE) in collaboration with international industry bodies to standardize how volumes are defined, quantified, and disclosed across jurisdictions. The system aims to improve transparency for investors, regulators, and operators by providing a consistent language for resource and reserve estimation.

Key concepts and classification include a clear division between Reserves and Resources. Reserves are quantities that are commercially recoverable under assumed economic conditions and with current technology. Resources are quantities that are potentially recoverable but not yet economically feasible or discovered. Within Reserves, volumes are categorized as Proved (1P), Probable (2P), and Possible (3P), and further distinguished as Developed or Undeveloped. Within Resources, terms include Contingent Resources and Prospective Resources, indicating levels of certainty and maturity and the presence or absence of development plans.

Methodology and uncertainty in PRMS emphasize both probabilistic and deterministic assessments, with explicit documentation of assumptions, economics, and planning horizons. Estimates are typically presented with confidence levels and ranges to convey risk, and the framework requires transparent reporting of technical and commercial factors that influence recoverable quantities.

Usage and impact extend across many sectors of the oil and gas industry. PRMS is widely adopted by national oil companies, independents, and publicly listed companies for internal planning and external disclosures. It informs financial reporting, project evaluation, and regulatory filings. While not itself a regulatory standard, PRMS concepts are often aligned with regulatory requirements or translated into local reporting rules by authorities or auditors.