UN Framework Classification - Towards Global Harmonization of Fossil Energy and Mineral Resources Classification

Abstract

The UN Economic and Social Council recommended in July 2004 the UN Framework Classification for Fossil Energy and Mineral Resources (UNFC) for worldwide use by UN Member States, international organizations and regional commissions. UNFC is a tool for harmonizing existing classifications and will be helpful in improving Energy studies, Resource management, Business process management and Financial reporting. The basic criteria are Economic viability, Field project maturity and Geological knowledge which are divided into categories and subcategories. A simple codification makes UNFC applicable universally and to meet the demand for a global code for fossil energy and mineral resources. Non-conventional energy resources are emerging as supply sources, some of these blurring the boundary between mineral and energy. Collaboration with the financial community supports the development of an International Financial Reporting Standard for extractive activities. Specifications, guidelines and case studies for the classification are being developed by the Combined Reserves International Reporting Standards Committee (CRIRSCO) and UN experts for minerals and by the Society of Petroleum Engineers (SPE) for petroleum. Aggregated classes of remaining recoverable quantities, like proved, probable and possible reserves are distinguishable in UNFC.