Beyond classifi ation - managing resources sustainably

Sigurd Heiberg Petronavit a.s Oslo Norway
The United Nations Framework Classification of Resources is created to serve the needs of policy makers, governments, industry and financiers. The information carrier is the project, not the deposit and focus is on the quantities that the project will yield in the form of sales and non-sales production and how much will be left in the subsoil.Inventories are constructed by categorising separately the economic and social conditions for development, the industrial status and the uncertainty with which the quantities are defined. The underlying projects carry other important management information suchas time series of production, costs, labour etc. The classification is mapped (bridged) to other key classifications such as the newRussian classification for oil and gas (RF2013), SPE PRMS and the CRIRSCO templates. This facilitates the reporting of a UNFC inventory in these classification.The UNFC is built to support comprehensive resource management in a public-private partnership that enhances the capabilities of both the public and private sectors, reduces waste, increases recovery and helps manage volatility in the revenues. Most importantly, the sustainable capabilities and capital generated provides a foundation for the next generation when it embarks on creating the future it wants.
In summary, the UNFC facilitates both the economic, social and industrial processes necessary to move towards a sustainable development through careful exploitation of the resources. The example from Norway shows marked reduced waste in the form of gas flaring and excessive use of fuel. It also shows how the recovery factors have been substantially increased and how the state revenues have been stabilized and nearly doubled through the development of a sovereign wealth fund.This has created the transferrable integrative dynamic capabilities and the capital base required for the next generation to create the future they want.
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