Short answer

Design projects involving resource extraction or complex infrastructure should incorporate integrated, multi-disciplinary analysis and simulation to validate economic viability and operational efficiency before full-scale implementation.

Field: Commercial Production
Source: Journal of Petroleum Exploration and Production Technology (2019)
Method: Case Study and Simulation
Evidence: Strong effect

Integrating geological, engineering, and economic disciplines to simulate and analyze multiple reservoir development strategies can significantly improve economic viability and production success rates. This commercial production research insight is drawn from a 2019 study published in Journal of Petroleum Exploration and Production Technology. Using Case study and simulation, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Design projects involving resource extraction or complex infrastructure should incorporate integrated, multi-disciplinary analysis and simulation to validate economic viability and operational efficiency before full-scale implementation.

Study

Commercial ProductionHigh ImpactStrong effect

Optimized Reservoir Development Plan Increases NPV by 47%

Journal of Petroleum Exploration and Production Technology · 2019

Key Findings

01Waterflood case 2 yielded the highest Net Present Value (NPV) of $2,163,756,338.
02Waterflood case 2 also demonstrated the highest investment return of 47%.
03A multi-disciplinary approach is essential for accurate FDP analysis and decision-making.

Application

Design takeaway

How to apply

When planning large-scale projects with significant resource or infrastructure components, establish integrated teams of experts from relevant disciplines and utilize simulation tools to model various operational scenarios and their economic impacts.

Project actions

01Clearly define the scope of your design project and identify all relevant disciplines.
02Utilize simulation tools where appropriate to model and test your design concepts.
03Incorporate economic feasibility studies into your design process.

Method & Evidence

AimTo determine the optimal Field Development Plan for a petroleum reservoir by integrating geological, engineering, and economic analyses to maximize economic viability and production success rate.

MethodCase Study and Simulation

ProcedureThe research involved integrating data from geological, reservoir engineering, well engineering, and petroleum economics disciplines. Multiple development scenarios, including natural depletion and three different waterflood strategies, were simulated. Economic analyses (Net Present Value, investment return) and sensitivity analyses were performed for each scenario to identify the most viable option.

ContextPetroleum exploration and production

Variables

IV["Development strategy (natural depletion, waterflood cases 1, 2, 3)"]

DV["Net Present Value (NPV)","Investment Return (%)","Production Success Rate"]

CV["Reservoir characteristics (porosity, permeability, water saturation, thickness, area extent)","Economic parameters (oil price, production costs, injection costs)"]

Strengths & Limitations

Strengths

+Integration of multiple expert disciplines.
+Use of simulation for comparative analysis.
+Inclusion of economic viability assessment.

Limitations

The complexity of real-world reservoir dynamics can be difficult to fully capture in simulations. Economic models are based on assumptions that may not hold true over the project's lifespan.

Reliability & validity

The reliability of the findings depends on the accuracy of the input data and the chosen simulation models. Validity is enhanced by the integration of multiple disciplines and the use of established economic metrics.

Think critically

How might the uncertainties in geological data or market price fluctuations impact the recommended development plan, and what strategies could mitigate these risks?

Design Principles

"Integrated multi-disciplinary analysis and simulation are essential for optimizing the economic viability and success rate of complex resource development projects."

In resource-intensive industries, a robust Field Development Plan (FDP) is crucial for maximizing return on investment and minimizing production costs. This research demonstrates that a multi-disciplinary approach, coupled with simulation and economic analysis, can lead to demonstrably better outcomes than relying on single-discipline perspectives.

What This Means for Your Design

This study shows that by using computers to test different ways of getting oil out of the ground and looking at the money involved, they found a plan that made the most profit.

How to use in your project

1.Reference this study when discussing the importance of integrated design approaches and economic analysis in your design project's evaluation phase.

Add to My Project

Quick Cite

Paragraph starter

This research highlights the critical role of integrated, multi-disciplinary analysis in optimizing complex development plans. By simulating various scenarios and conducting thorough economic evaluations, as demonstrated in the analysis of the 'x' reservoir, designers and engineers can significantly enhance project success rates and financial returns, a principle directly applicable to the planning and evaluation phases of this design project.

Source

Journal of Petroleum Exploration and Production Technology

Field developmental plan analysis: a case study of ‘x’ reservoir

journal · 2019

View source

Questions About This Research

What does the research say about optimized reservoir development plan increases npv by 47%?: Design projects involving resource extraction or complex infrastructure should incorporate integrated, multi-disciplinary analysis and simulation to validate economic viability and operational efficiency before full-scale implementation. Evidence: Journal of Petroleum Exploration and Production Technology (2019).
Why does "Optimized Reservoir Development Plan Increases NPV by 47%" matter for design?: In resource-intensive industries, a robust Field Development Plan (FDP) is crucial for maximizing return on investment and minimizing production costs. This research demonstrates that a multi-disciplinary approach, coupled with simulation and economic analysis, can lead to demonstrably better outcomes than relying on single-discipline perspectives.
How can designers apply this research?: Design projects involving resource extraction or complex infrastructure should incorporate integrated, multi-disciplinary analysis and simulation to validate economic viability and operational efficiency before full-scale implementation.
What were the main findings?: Waterflood case 2 yielded the highest Net Present Value (NPV) of $2,163,756,338.. Waterflood case 2 also demonstrated the highest investment return of 47%.. A multi-disciplinary approach is essential for accurate FDP analysis and decision-making.
What research method was used?: Case Study and Simulation.
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2019 journal from Journal of Petroleum Exploration and Production Technology.
What should I do differently in my next project?: When planning large-scale projects with significant resource or infrastructure components, establish integrated teams of experts from relevant disciplines and utilize simulation tools to model various operational scenarios and their economic impacts.
What are the limitations?: The findings are specific to the 'x' reservoir and may not be directly generalizable without similar detailed analysis for other reservoirs. The accuracy of the simulations depends on the quality and completeness of the input data.