Reservoir Definition & Meaning | Energy Term | CSIMarket
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Glossary

Reservoir

Energy Term

A reservoir is a place where fluid or substance is stored. In the energy industry, a reservoir usually refers to a geological formation that holds oil, gas, or water. These reservoirs are typically underground and can be accessed through drilling.

In the oil and gas industry, reservoirs are crucial for production. The reservoir holds the oil or gas that is extracted through drilling. The reservoir characteristics such as the porosity and permeability are important in determining how much oil or gas can be recovered.

In the energy industry, reservoirs are also used for storing energy. One example is pumped-storage hydroelectricity, where water is pumped from a lower reservoir to a higher one during times of low energy demand and released back down to generate electricity during peak demand.

Overall, reservoirs are integral to the energy industry in both extraction and storage of energy resources.


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