Instructions for the development of the oil production centre

Look before you leap, the essential motto for production! The decision will be influenced above all by economic considerations: is it profitable to begin extraction of the deposit that has been analysed? “Profitable” … that means that by selling the oil and gas to be extracted, we will be able to cover all the expenses of studies, construction of installations and of extraction operations during the life of the field. Cover the expenses … and make a little profit as well! These profitability calculations are complex, not so much from a theoretical point of view (no need to be Einstein …), but, above all, because there are many parameters and factors which come into play. Some of these parameters are very uncertain: for example, who can predict the price of a barrel of oil in 10 years time, when the oil field will be halfway through its life? We are forced to postulate hypotheses.

- All the available technical data is collected: the depth and the form of the deposit, the characteristics of the reservoirs, the types and distribution of the hydrocarbons, the accumulated volumes of oil and gas in the substratum.

- An attempt is made to estimate the number of wells that will be necessary. The production installations (for drilling, treatment of products brought to the surface, temporary storage and dispatch) are selected and sized in accordance with the technical data. Several different projects can be envisaged. After detailed comparison, the project having the best overall potential is retained.

- At the same time a production simulation is established, covering the whole period from the beginning to the end of the life of the field. This simulation is known as a production profile. It is a forecast of the annual production volumes from the field, which then enables the economists to establish economic forecasts on the basis of hypotheses for the hydrocarbon selling prices.