Summary
This paper proposes a method based on Lagrangian decomposition for real-time production optimization. It argues the method is well suited for the well-allocation and routing problem in the upstream industries. A semirealistic field case assuming steady-state conditions is used to compare the merits of the method with current industrial practice. The method compares favorably and is therefore an interesting option in real-time production optimization. There are several reasons for this. An error bound on the solution of the production optimization problem can be computed, which is clearly information of interest to any user. Furthermore, the algorithm is efficient and can be parallized for an even higher efficiency. Finally, the Lagrangian decomposition method provides a tool for understanding how a limited resource, such as gas capacity, is used in production optimization.
