This paper articulates the understanding of the value of the Intelligent Well (IW) technology, and presents a systematic method to quantify the value of IW technology in specific applications.
Assessing the value of a project is often a prerequisite for its start and success. Without a clear understanding of the potential value of the technology, progress would be haphazard at best. The status of the technology is discussed. It is argued that understanding the value is a key for the industry to decide where to take the IW technology, which in turn will govern where to take the industry in terms of value addition.
The attributes of value determine the level of complexity of the task. Some efforts are made to show that a myriad of factors both affect the value and prevent a reliable or even a meaningful assessment being carried out.
The method described is a collection of common sense approaches, leading to a recommendation for the applications, based on the value and other considerations. Step-by-step explanation is presented. An example is also given. It has been shown that rigorous value assessment for a specific project could lead to new insight into aspects that unstructured analysis may not provide. The option with the highest NPV may not be the one that is recommended.
The mechanisms used in the method are not limited to IW value assessment.