ABSTRACT

Continued advances in computing technology have stimulated great interest in the objectives and the results of this activity. This paper summarizes some profitable new computing applications developed for producing operations in the fields of Economics, Planning, and Reservoir and Production Engineering. Each application is reviewed in terms of the problem to be solved, the approach used to solve it, results where available, and the requirements for long-range profit potential.

Two basic conclusions are reached. First, advanced computing methods can be adapted to a wide scope of our producing operation with profitable results, and, second, the most important requirement for successful computing is a thorough understanding of our problems and the economic potential to be gained from their solution.

INTRODUCTION

"The requirements for scientific computing have doubled each year since 1952, and the trend seems to be continuing." This statement and others like it have led to two very basic questions - How is this activity improving profits? And where is the payout? A great deal of information is available in the technical literature on new mathematical techniques for solving otherwise insurmountable problems. An equal volume of accounting literature is devoted to automated but straightforward data-handling methods that aim simply at reducing cost over manual procedures. Most of these articles stress computing techniques rather than the fundamental requirements for profitable use.

This paper discusses the basic consideration involved in applying some of the new computing techniques to economic planning studies of field producing operations Each application is discussed in terms of the basic problem to be solved, the approach used to solve it and the economic considerations involved The discussion is not intended to detail the numerical approach or data requirements used for each procedure. However, this information is available through the referenced material. In most cases, the applications do not employ mass data-handling methods or involved numerical techniques. They follow an approach which closely simulates sound engineering logic and relies upon a thorough understanding of the problem trid the economic potential to be gained from its solution. This point is better illustrated by reviewing specific problems which are being solved in the fields of Economics, Planning, Drilling and Reservoir Analysis.

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