Why Is a Trap Necessary to Create a Conventional Reserve

question 34

Multiple Choice

Why is a trap necessary to create a conventional reserve?

• A) Without a trap,temperatures within the Earth would be too high for hydrocarbon formation.
• B) A trap is the porous and permeable reservoir in which conventional hydrocarbon reserves reside.
• C) A trap is the source rock for the accumulation and creation of hydrocarbon resources.
• D) Without a trap,hydrocarbons would rise buoyantly and seep onto the Earth's surface.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are considered variable costs.

Factory Depreciation

The systematic reduction in the recorded cost of fixed assets (such as manufacturing equipment) to account for wear and tear or obsolescence over time.

Total Manufacturing Costs

The aggregate cost of direct material, direct labor, and manufacturing overhead incurred in producing goods.

Operating Expenses

Operating expenses consist of the costs related to a company's primary operational activities, excluding costs associated with manufacturing or production.