Oil Initially In Place - OIIP

DEFINITION of 'Oil Initially In Place - OIIP'

The amount of crude first estimated to be in a reservoir. Oil initially in place differs from oil reserves, as OIIP refers to the total amount of oil that is potentially in a reservoir and not the amount of oil that can be recovered. Calculating OIIP requires engineers to determine how porous the rock surrounding the oil is, how high water saturation might be and the net rock volume of the reservoir.

BREAKING DOWN 'Oil Initially In Place - OIIP'

Determining oil initially in place is one of the major components undertaken by analysts determining the economics of oil field development. Oil operations do not typically recover the entire amount of oil that a reservoir may have available, meaning that not all fields will be economical unless oil prices warrant the effort.

RELATED TERMS
  1. Tertiary Recovery

    A technique used to extract the remaining oil from previously ...
  2. Produced Water

    Waste water generated during the production of oil and natural ...
  3. Oil Reserves

    An estimate of the amount of crude oil located in a particular ...
  4. Unconventional Oil

    A type of petroleum that is produced or obtained through techniques ...
  5. Oil ETF

    A category of exchange-traded funds that invest in companies ...
  6. Benchmark Crude Oil

    Benchmark crude oil is crude oil that serves as a pricing reference, ...
Related Articles
  1. Markets

    Who Wins With Low Energy Prices? 

    Low oil prices are here to stay for some time. Which economies will benefit or lose from the low oil price regime?
  2. Markets

    Oil Boom 2.0: Be Sure You Are Ready to Invest

    Learn about the potential for oil boom 2.0, and discover why some experts say this is a good time to invest in oil companies and ETFs.
  3. ETFs & Mutual Funds

    Oil Picks For Bulls And Bears

    Everyone thought the biggest economic news of 2014 was going to fall somewhere between the end of quantitative easing, some rumblings from the European Union or whatever Putin’s next bold move ...
  4. Markets

    Impact of Low Oil Prices on Oil Sellers and Buyers

    The impact of the fall in oil prices globally is nuanced due to the complex economies of some countries --some of which are both oil producers and buyers.
  5. Markets

    What We Learned From The Last Oil Shock

    The last oil shock in the 1970s carries some valuable lessons for consumers facing a repeat today.
  6. Markets

    How OPEC (and Non-OPEC) Production Affects Oil Prices

    Oil production from both OPEC and non-OPEC groups are assumed to affect oil prices. A reality check with historical study of whether and how these groups impact oil prices.
  7. ETFs & Mutual Funds

    It Might Be Too Late for Inverse Oil ETFs (SCO, DWTI)

    Learn why investors seeking to short the price of oil may want to be careful when using leveraged ETFs, and see how oil prices may have reached a bottom.
  8. Markets

    What is Crude Oil?

    Crude oil is a natural petroleum product that’s composed of organic materials, including hydrocarbon deposits.
  9. Markets

    What a $20 USD Barrel Means For the US Oil Industry

    Read about Goldman Sachs' prediction that oil prices could go as low as $20 a barrel. Understand how low prices impact companies in the U.S. oil sector.
  10. Markets

    The Reasons for the Mexican-U.S. Oil Swap

    The U.S. government is getting close to a historic deal to allow U.S. producers to swap the light, sweet crude oil that is in too much supply with Mexico, in return for heavy crude.
RELATED FAQS
  1. When you buy oil, do you have to buy thousands of stocks at one time or can you start ...

    I am new to oil stocks and want to invest a couple thousand dollars. Do oil stocks pay dividends? Is now the time to ... Read Answer >>
  2. Why do oil stock prices drop?

    Doesn't lower oil prices mean more profit for companies that use oil products?  ... Read Answer >>
  3. What is a heavy oil differential and how does it affect oil producers?

    Learn what the phrase "heavy oil differential" refers to and the significance of heavy oil differentials for oil production ... Read Answer >>
  4. I heard that if the price of oil is low that means the stock market is not doing ...

  5. How are oil reserves accounted for on an oil company's balance sheet?

    Oil reserves are estimated quantities of crude oil that have a high degree of certainty, usually 90%, of existence and exploitability. ... Read Answer >>
  6. If oil producers run out of room to store oil, will the price of gasoline plummet?

    Learn about what happens to gasoline price when room to store oil runs out and whether this creates a good situation for ... Read Answer >>
Hot Definitions
  1. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  2. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  3. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  4. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
  6. Security

    A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship ...
Trading Center