Logo GISdevelopment.net

GISdevelopment > Proceedings > GITA > GIS for Oil & Gas Conference 2000


GIS for Oil & Gas Conference 2002 | GIS for Oil & Gas Conference 2001 | GIS for Oil & Gas Conference 2000






GIS for Oil & Gas


2000
Printer Friendly Format

Page 1 of 3
| Next |


Field planning and development of Oil and Gas Reservoirs using GIS Technology

John E. Pierce II and Richard T. Hill
J P Kenny Inc
16340 Park Ten Place Drive
Suite 242
Houston, Texas 77084


Abstract
The activities in advancing a deepwater oil or gas field to production stage are numerous and the interdependency of the activities, complex. Determining how to best extract the discovered fluids from the reservoirs and deliver the products to the market, while minimizing CAPEX, OPEX and risk of failure is critical. A dynamic and time dependent costing and optimization system for field development has been developed that allows flexibility in technical decision revisions, commercial re-evaluation of options available and time value assessment of money. The service combines the application of Geographical Information System (GIS) technology to handle the spatial context of the subsurface, surface and above water field components linked via a GIS Interface to the Cost Model, to facilitate economic evaluation. The Cost Model is in spreadsheet format producing a transparent costing system instead of the more common “Black Box” model. Multiple field layout scenarios are developed using the available reservoir simulation analysis, drilling constraints, production concerns, facilities requirements and intra-field pipeline architecture. The Cost Model generates costs for each scenario. The flexibility of the system allows sensitivity analysis and “what-if” investigations to be carried out while evaluating the economic viability of each scenario.

Introduction
The CAPEX cost for deepwater developments are projected to be in the billions of dollars and as such are an order of magnitude increase in cost above most of the field developments to date. The total planned CAPEX expenditure for deepwater developments, over the next five years, is over $35 billion. The efficient development of deepwater fields for each new development is crucial in assuring the economic viability of these fields.

To date, the development of deepwater oil and gas reserves, to a large extend, have employed many of the methodologies used for shallower water fields. Project development for the shallow water fields have been based on sound engineering judgment that relies heavily on a knowledge database built from existing fields.

The application of existing technologies in deepwater developments no longer applies. Commercial viability of the deepwater developments demands efficient design philosophy and implementation of new technologies in materials, construction, operation and management.

Depending on the size of the field, its complexity and its location, a team of experts derives a number of feasible development scenarios. Each scenario has input from disciplines such as reservoir, drilling, production and facilities. This input is typically supplemented with the involvement of Business, Commercial and Operation Managers. During the execution of such work the volume of information generated by the field development team and the inter-dependency of the different sets of information is often the cause of difficulties in maintaining the integrity of the project developed data, long project execution schedules and high costs.

The integration of this information in a single system that provides a visual user interface, coupled with a dynamic economic model that provides evaluation of economic indicators and facilitates the ability to audit the decision-making process, thus shortening the development time for each scenario was required. A system for the integration of technical, commercial and managerial issues related to the field development process has been developed. The system is called FOCU$. Although developed for deepwater application, the system is applicable to both offshore and onshore fields, new or existing, and can be applied at all stages of field development from the initial coarse screening of options, through the detailed engineering phase, as well as carrying on through field maturity and eventual abandonment.

Page 1 of 3
| Next |

Applications | Technology | Policy | History | News | Tenders | Events | Interviews | Career | Companies | Country Pages | Books | Publications | Education | Glossary | Tutorials | Downloads | Site Map | Subscribe | GIS@development Magazine | Updates | Guest Book