This paper outlines a reservoir-economic approach and quantifies the microeconomic adjustment of the exploitation of different types of petroleum reservoirs by means of a numerical optimization model.

The numerical reservoir-economic optimization will be presented here. In this model the microeconomic adjustment is viewed in relation to reservoir engineering. The model optimizes the exploitation of an oil or gas reservoir in terms of: 1) Total depletion rate (production capacity, including the aspects of Maximum Efficient Rate) and, 2) Geographical distribution of total production capacity (well density, number of platforms, etc).

The model can be adjusted (calibrated) to the reservoir simulations of a specific oil or gas reservoir. The generation of production profiles is based on a limited number of reservoir simulations. This information is used to generate a fine network of production profiles in the reservoir module. The income side is coupled with a reservoir cost module and the optimal solution is sought in the net present value surface. The model is used for further economic analysis in different economic, financial and taxation modules.

It may serve to improve the general understanding of the effects of reservoir economics on the engineering decision-making process, and as such is a tool for communication between economists and reservoir engineers.

You can access this article if you purchase or spend a download.