Definition - What does Cumulative Production mean?
Cumulative production is defined as the gross amount of oil and gas production from an oil reservoir over a particular period of time of the life of a well. In general, cumulative production is an oil and gas industry term related to an oil well, a basin or an oil field. Cumulative production of oil and gas can be calculated by multiplying the amount of production by the rate. The data gathered from the cumulative production and production rate of an oil and gas reservoir is analyzed to keep track of the productive oil wells over a time period, for example a year.
Petropedia explains Cumulative Production
An energy producer extracts oil from a well as long as the field is producing enough amount of oil and gas. The company conducts a survey on the field, basin or the well to determine how much oil and gas has been produced from it over a specific time span. The gross total of oil and gas produced is known as cumulative production, which is calculated by multiplying the rate with the amount of production. Ideally, the cumulative production of all oil reservoirs is calculated annually.