Economic evaluations serve as the policeman of the petroleum industry. They determine whether or not a project will be undertaken. However, due to the complexity and nature of each petroleum project, an evaluation used in conjunction with one type of project may not be necessarily suitable for another.
This paper will introduce a computer program of a simplified model that deals with the economic evaluation of steam injection projects only. Steam injection ecompasses a large variety of methods, but all methods do have several economic factors in common. They include present and future cost of oil, taxes and operating costs. Other factors include past and present production, lease cost, discounted cash flows, as well as inflation.
The program also contains several features not usually found in the petroleum industry:
It is user friendly, no user manual is required.
Alterations may be easily made in the program, therefore, tailoring it to the project.
It can be used with different steam injection performance models with minimum modifications.
As the need for oil increases, the implementation of steam injection projects will in turn grow proportionately. This trend will call for fast, efficient methods for analyzing such projects. This program fulfills that need. This paper provides a means for economic evaluation in thermal recovery projects.