Valuing future information under uncertainty

• US 8,073,800 B2
• Filed: 07/30/2008
• Issued: 12/06/2011
• Est. Priority Date: 07/31/2007
• Status: Active Grant

• Current Assignee: 3es innovation, Inc. (3esi-Enersight Corp.)
• Original Assignee: Schlumberger Technology Corporation (Schlumberger NV)
• Inventors: Prange, Michael, Bailey, William J., Couet, Benoit, Djikpesse, Hugues, Elliott, Michael A.
• Primary Examiner(s): Gaffin, Jeffrey A
• Assistant Examiner(s): SITIRICHE, LUIS A
• Application Number:
  US12/182,890
• Publication Number:
  US 20090271233A1
• Time in Patent Office: 1,224 Days
• Field of Search: None
• US Class Current: 706/46
• CPC Class Codes: G06Q 30/0206 Price or cost determination based on market factors

Abstract

The invention relates to a method of performing an oilfield operation of an oilfield having at least one well having a wellbore penetrating a subterranean formation for extracting fluid from an underground reservoir therein. The method steps include analyzing the oilfield operation to generate a decision tree comprising a first decision and a second decision, wherein a first outcome of the first decision dictates acquiring information relevant to the second decision, formulating a figure of merit of the oilfield operation according to the decision tree based on the information and uncertainties associated with the oilfield, determining a value of the figure of merit by modeling the oilfield operation using statistical sampling, and performing the oilfield operation upon making the first decision based on the value of the figure of merit.

Claims

1. A method of performing an oilfield operation of an oilfield, comprising:

analyzing the oilfield operation to generate a decision tree comprising a first decision and a second decision,

wherein the first decision comprises (a) a first outcome that dictates acquiring information relevant to the second decision and (b) a second outcome that dictates not acquiring the information, and

wherein the second decision is influenced by the first outcome of the first decision, the second outcome of the first decision, and uncertainties associated with the oilfield;

formulating a figure of merit of the oilfield operation according to the decision tree based on the information and the uncertainties associated with the oilfield;

determining, by a processor, a value of the figure of merit by modeling the oilfield operation using statistical sampling; and

performing the oilfield operation upon making the first decision based on the value of the figure of merit.

2. The method of claim 1, further comprising:

making the first decision by selecting the first outcome;

acquiring the information based on the first outcome; and

making the second decision based on the information.

3. The method of claim 1,

wherein the figure of merit is further formulated based on at least one selected from a group consisting of a plurality of outcomes of the first decision, a plurality of outcomes of the second decision, uncertainty associated with the information, and risk preference of a decision maker,

wherein the uncertainties associated with the oilfield comprises at least one selected from a group consisting of market uncertainty and private uncertainty,

wherein the market uncertainty relates to at least a future hydrocarbon price, and

wherein the private uncertainty relates to at least one selected from a group consisting of subterranean formation of the oilfield, underground reservoir of the oilfield, at least one well of the oilfield, extracted fluid of the oilfield, recoverable reserves of the oilfield, production rate of the oilfield operation, fixed cost and capital expenditure of the oilfield operation, and handling cost for oil, gas, and water.

4. The method of claim 1, wherein the figure of merit of the oilfield operation is evaluated by modeling the oilfield operation using at least one selected from a group consisting of reservoir simulator, wellbore simulator, surface network simulator, process simulator, hydrocarbon charge simulator, and economics simulator.

5. The method of claim 1, further comprising:

determining a first value of the figure of merit by modeling the oilfield operation based on the first outcome of the first decision to acquire the information;

determining a second value of the figure of merit by modeling the oilfield operation based on a second outcome of the first decision without acquiring the information; and

determining a value of acquiring the information based on a comparison between the first value and the second value,

wherein making the first decision is further based on the value of acquiring the information.

6. The method of claim 1, wherein the statistical sampling is performed based on at least one selected from a group consisting of random sampling using Monte Carlo method, random sampling using polynomial chaos method, importance sampling, and sampling from a response surface to model the oilfield operation.

7. The method of claim 1, wherein the figure of merit comprises a net present value.

8. The method of claim 1, wherein the value of acquiring the information comprises a net present value.

9. A surface unit comprising a memory and a processor, embodying instructions stored in the memory and executable by the processor to perform method steps to perform an oilfield operation, the instructions comprising functionality to:

analyze the oilfield operation to generate a decision tree comprising a first decision and a second decision,

wherein the first decision comprises (a) a first outcome that dictates acquiring information relevant to the second decision and (b) a second outcome that dictates not acquiring the information, and

wherein the second decision is influenced by the first outcome of the first decision, the second outcome of the first decision, and uncertainties associated with the oilfield;

formulate a figure of merit of the oilfield operation according to the decision tree based on the information and the uncertainties associated with the oilfield;

determine a value of the figure of merit by modeling the oilfield operation using statistical sampling; and

perform the oilfield operation upon making the first decision based on the value of the figure of merit.

10. The surface unit of claim 9, the instructions further comprising functionality to:

make the first decision by selecting the first outcome;

acquire the missing information based on the first outcome; and

make the second decision based on the missing information.

11. The surface unit of claim 9,

wherein the figure of merit is further formulated based on at least one selected from a group consisting of a plurality of outcomes of the first decision, a plurality of outcomes of the second decision, uncertainty associated with the information, and risk preference of a decision maker,

wherein the uncertainties associated with the oilfield comprises at least one selected from a group consisting of market uncertainty and private uncertainty,

wherein the market uncertainty relates to at least a future hydrocarbon price, and

wherein the private uncertainty relates to at least one selected from a group consisting of subterranean formation of the oilfield, underground reservoir of the oilfield, at least one well of the oilfield, extracted fluid of the oilfield, recoverable reserves of the oilfield, production rate of the oilfield operation, fixed cost and capital expenditure of the oilfield operation, and handling cost for oil, gas, and water.

12. The surface unit of claim 9, wherein the statistical figure of merit of the oilfield operation is evaluated by modeling the oilfield operation using at least one selected from a group consisting of reservoir simulator, wellbore simulator, surface network simulator, process simulator, hydrocarbon charge-model simulator, and economics simulator.

13. The surface unit of claim 9, the instructions further comprising functionality to:

determine a first value of the figure of merit by modeling the oilfield operation based on the first outcome of the first decision to acquire the information;

determine a second value of the figure of merit by modeling the oilfield operation based on a second outcome of the first decision without acquiring the information; and

determine a value of acquiring the information based on a comparison between the first value and the second value,

wherein making the first decision is further based on the value of acquiring the information.

14. The surface unit of claim 9, wherein the statistical sampling is performed based on at least one selected from a group consisting of random sampling using Monte Carlo method, random sampling using polynomial chaos method, importance sampling, and sampling from a response surface to model the oilfield operation.

15. The surface unit of claim 9, wherein the statistical figure of merit comprises a net present value.

16. The surface unit of claim 9, wherein the value of acquiring the missing information comprises a net present value.

17. A non-transitory computer readable medium, embodying instructions executable by the computer to perform method steps for performing an oilfield operation of an oilfield having at least one well having a wellbore penetrating a subterranean formation for extracting fluid from an underground reservoir therein, the instructions comprising functionality to:

analyze the oilfield operation to generate a decision tree comprising a first decision and a second decision,

wherein the first decision comprises (a) a first outcome that dictates acquiring information relevant to the second decision and (b) a second outcome that dictates not acquiring the information, and

wherein the second decision is influenced by the first outcome of the first decision, the second outcome of the first decision, and uncertainties associated with the oilfield;

formulate a figure of merit of the oilfield operation according to the decision tree based on the information and the uncertainties associated with the oilfield;

determine a value of the figure of merit by modeling the oilfield operation using statistical sampling; and

perform the oilfield operation upon making the first decision based on the value of the figure of merit.

18. The non-transitory computer readable medium of claim 17, the instructions further comprising functionality to:

make the first decision by selecting the first outcome;

acquire the missing information based on the first outcome; and

make the second decision based on the missing information.

19. The non-transitory computer readable medium of claim 17,

wherein the figure of merit is further formulated based on at least one selected from a group consisting of a plurality of outcomes of the first decision, a plurality of outcomes of the second decision, uncertainty associated with the information, and risk preference of a decision maker,

wherein the uncertainties associated with the oilfield comprises at least one selected from a group consisting of market uncertainty and private uncertainty,

wherein the market uncertainty relates to at least a future hydrocarbon price, and

wherein the private uncertainty relates to at least one selected from a group consisting of subterranean formation of the oilfield, underground reservoir of the oilfield, at least one well of the oilfield, extracted fluid of the oilfield, recoverable reserves of the oilfield, production rate of the oilfield operation, fixed cost and capital expenditure of the oilfield operation, and handling cost for oil, gas, and water.

20. The non-transitory computer readable medium of claim 17, wherein the statistical figure of merit of the oilfield operation is evaluated by modeling the oilfield operation using at least one selected from a group consisting of reservoir simulator, wellbore simulator, surface network simulator, process simulator, hydrocarbon charge-model simulator, and economics simulator.

21. The non-transitory computer readable medium of claim 17, the instructions further comprising functionality to:

determine a first value of the figure of merit by modeling the oilfield operation based on the first outcome of the first decision to acquire the information;

determine a second value of the figure of merit by modeling the oilfield operation based on a second outcome of the first decision without acquiring the information; and

determine a value of acquiring the information based on a comparison between the first value and the second value,

wherein making the first decision is further based on the value of acquiring the information.

22. The non-transitory computer readable medium of claim 17, wherein the statistical sampling is performed based on at least one selected from a group consisting of random sampling using Monte Carlo method, random sampling using polynomial chaos method, importance sampling, and sampling from a response surface to model the oilfield operation.

23. The non-transitory computer readable medium of claim 17, wherein the statistical figure of merit comprises a net present value.

24. The non-transitory computer readable medium of claim 17, wherein the value of acquiring the missing information comprises a net present value.