What is Reserve Growth? BP : In general, a portion of a field’s probable and possible reserves tend to get converted into proved reserves over time as operating history reduces the uncertainty around remaining recoverable reserves: an aspect of the phenomenon referred to as ‘reserves growth’. Wiki : Experience shows that initial estimates of the size of newly discovered oil fields are usually too low. As years pass, successive estimates of the ultimate recovery of fields tend to increase. The term reserve growth refers to the typical increases in estimated ultimate recovery that occur as oil fields are developed and produced. Basically the U.S. Security and Exchange Commission have stringent reserve booking requirements for oil companies. As a result early booked reserves of any given field is very conservative. Also, any company would much rather have reserves too low and increase them later than have them too high and have to […]