Optimized Reservoir Development Plan Increases NPV by 47%
Integrating geological, engineering, and economic disciplines to simulate and analyze multiple reservoir development strategies can significantly improve economic viability and production success rates.
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
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.
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
Variables
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
(2019). Field developmental plan analysis: a case study of ‘x’ reservoir. Journal of Petroleum Exploration and Production Technology. https://doi.org/10.1007/s13202-019-0622-0 Retrieved from https://designdex.org/study/52421142-d118-41e9-b2de-165a6237da50/optimized-reservoir-development-plan-increases-npv-by-47
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 sourceQuestions 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.
- Is there evidence that development plan affects design outcomes?
- By simulating and comparing different development strategies, the study found that a specific waterflood approach (Case 2) was the most economically successful, offering the highest NPV and investment return. In resource-intensive industries, a robust Field Development Plan (FDP) is crucial for maximizing return on inv Source: Journal of Petroleum Exploration and Production Technology (2019).
- Where does this optimized reservoir research apply?
- Petroleum exploration and production It sits within commercial production research on designdex.org.
Related research topics
development plan design research · evidence on development plan · does development plan improve design outcomes · optimized reservoir studies for designers · development plan and optimized reservoir findings · commercial production research evidence