A method for estimating hydrocarbon volume in a layered subsurface formation includes determining a vertical resistivity and a horizontal resistivity in the formation. A bound water saturation and a total porosity of individual layers of the formation are determined. Values of horizontal resistivity and vertical resistivity of the formation are calculated based on the bound water saturation and the total porosity for each layer and on an estimated irreducible bulk volume of water in each layer. The estimated values are compared to the determined horizontal resistivity and vertical resistivity. The estimated irreducible water saturation in each layer is adjusted and estimating the values is repeated until differences between the estimated values and the determined vertical and horizontal resistivity values fall below a selected threshold. The hydrocarbon volume is estimated from the adjusted irreducible water saturation for each layer.