Efficient optimization and uncertainty analysis of field development strategies by incorporating economic decisions in reservoir simulation models

James Browning, Sheldon Gorell, Justin Andrews

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Design, evaluation and approval of a field development plan is generally very iterative, requiring meetings, design and execution of simulation models, then financial reviews, back to updating and running the models, then financial evaluations again, and on and on. This paper presents a system (tools and processes) designed to significantly reduce the iterations of simulation runs and financial reviews. This is accomplished through implementing financial logic directly inside the model. This novel ability assesses and controls individual well operations every time step, eliminating the need to modify (and rerun) a model after every run due to financial review indicating a well is losing money and needs to be shut in or modified. Even with the simple model presented, with 23 wells, at least one new iteration would be required every time post run financial analysis indicates a well's operation needs modification due to its financial performance. This would require a minimum of 23 additional runs because changing a well will also impact the performance of other nearby wells. The system presented also provides the flexibility to configure multiple parameters into the model, enabling the automatic execution of multiple combinations of operational and financial scenarios. Such a capability enables the rapid analysis and review of parameter impacts resulting in the confidant selection of the best operating for the organization. The impact of financial realities is demonstrated through the simulation of operating five different field scenarios, each with its own combination of producers and injectors. A variety of operational and financial parameters were included. The results indicate that including financial parameters and decisions inside the simulation run significantly improves the usefulness of the production forecast and provides considerable efficiencies in the modeling and analysis processes.

Original languageEnglish
Title of host publicationSociety of Petroleum Engineers - SPE Asia Pacific Oil and Gas Conference and Exhibition 2020, APOG 2020
PublisherSociety of Petroleum Engineers
ISBN (Electronic)9781613997093
StatePublished - 2020
EventSPE Asia Pacific Oil and Gas Conference and Exhibition 2020, APOG 2020 - Virtual, Online
Duration: Nov 17 2020Nov 19 2020

Publication series

NameSociety of Petroleum Engineers - SPE Asia Pacific Oil and Gas Conference and Exhibition 2020, APOG 2020

Conference

ConferenceSPE Asia Pacific Oil and Gas Conference and Exhibition 2020, APOG 2020
CityVirtual, Online
Period11/17/2011/19/20

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