Impact of intelligent well systems on total economics of field development

S. A. Sakowski, A. Anderson, Kenji Furui

Research output: Chapter in Book/Report/Conference proceedingConference contribution

10 Citations (Scopus)

Abstract

Intelligent well technology, referring to the implementation of fundamental process control downhole, has advanced rapidly over the last decade in the upstream oil and gas industry. Application of this technology has continued to expand since recent installation results have demonstrated the value of these completions with a high success rate that operators find attractive. In this paper, we present an economic evaluation procedure to quantify the benefit of Intelligent Well Systems based on net present value (NPV) calculations. Reducing well count and eliminating or reducing interventions by using Intelligent Well Systems has the potential to add many millions of dollars to well NPV, since drilling rig and workover costs may be very expensive, especially in offshore deepwater environments. Delayed revenue associated with production shut-in also must be considered and reduced by discount rate at the same time that intervention and well operating costs increase by inflation rate. The use of Intelligent Well Systems not only reduces or eliminates some capital and operating costs, but also allows operators to accelerate oil production, increase the ultimate recovery and reduce water handling cost, which result in significant benefits in NPV of a project. Thus, Intelligent Well Systems are becoming economically attractive for modest-cost onshore operations as well as for the high-cost offshore environments for which they were initially deemed applicable.

Original languageEnglish
Title of host publicationSPE Hydrocarbon Economics and Evaluation Symposium
Pages143-157
Number of pages15
Publication statusPublished - 2005
Externally publishedYes
EventSPE Hydrocarbon Economics and Evaluation Symposium: Hydrocarbon Development - A Global Challenge - Dallas, TX, United States
Duration: 2005 Apr 32005 Apr 5

Other

OtherSPE Hydrocarbon Economics and Evaluation Symposium: Hydrocarbon Development - A Global Challenge
CountryUnited States
CityDallas, TX
Period05/4/305/4/5

Fingerprint

well
Economics
economics
cost
Operating costs
Costs
well technology
Drilling rigs
drilling rig
discount rate
Gas industry
gas industry
oil industry
inflation
oil production
Process control
Recovery
Water
water
rate

ASJC Scopus subject areas

  • Geotechnical Engineering and Engineering Geology
  • Geology

Cite this

Sakowski, S. A., Anderson, A., & Furui, K. (2005). Impact of intelligent well systems on total economics of field development. In SPE Hydrocarbon Economics and Evaluation Symposium (pp. 143-157). [SPE 94672]

Impact of intelligent well systems on total economics of field development. / Sakowski, S. A.; Anderson, A.; Furui, Kenji.

SPE Hydrocarbon Economics and Evaluation Symposium. 2005. p. 143-157 SPE 94672.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Sakowski, SA, Anderson, A & Furui, K 2005, Impact of intelligent well systems on total economics of field development. in SPE Hydrocarbon Economics and Evaluation Symposium., SPE 94672, pp. 143-157, SPE Hydrocarbon Economics and Evaluation Symposium: Hydrocarbon Development - A Global Challenge, Dallas, TX, United States, 05/4/3.
Sakowski SA, Anderson A, Furui K. Impact of intelligent well systems on total economics of field development. In SPE Hydrocarbon Economics and Evaluation Symposium. 2005. p. 143-157. SPE 94672
Sakowski, S. A. ; Anderson, A. ; Furui, Kenji. / Impact of intelligent well systems on total economics of field development. SPE Hydrocarbon Economics and Evaluation Symposium. 2005. pp. 143-157
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