Smart fields technology seeks to optimize the exploitation of reservoirs. Intelligent well completions is a technology that enables this goal. It, in combination with production monitoring tools, makes production optimization possible. In this paper, we take a well-centric look at optimizing production by closing the loop from observing well behavior to determining if it is being produced optimally to making adjustments, if it is not. In order to justify the additional cost of an intelligent well, service companies must quantify how much better it will perform than a conventional installation. The paper will propose net present value as a tool for quantification and show how this benefit is realized though increased ultimate recovery, accelerated production or cost reduction. The well optimization loop has traditionally been closed by a human. As intelligent wells gain acceptance, we will move to automated systems. The paper documents how such automation will create value.

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