One of the Subsurface Production Disciplines related to building Field Development Plan (FDP).
The key instrument of Field Development Planning is Nodal Analysis and Investment Planning.
The key principles of Field Development Planning are based on the following proxy equation:
| (1) | \Delta { \rm Cash } = R_{HC} \cdot J_{HC} \cdot \left( p_e - p_{wf} \right) - { \rm Cost } |
where
\Delta { \rm Cash } | Discounted Net Profit from selling hydrocarbons |
R_{HC} | Market price of hydrocarbons |
J_{HC} | Total field productivity |
p_e | Formation pressure in producers |
p_{wf} | Bottomhole pressure in producers |
\rm Cost | Cost of production |
The actual economics of petroleum production is more complicated than equation
(1) but it shows the fundamental ideas behind the Field Development Planning process.
The digital petroleum asset twins are capable to accurately simulate the holistic process of discounted cash flow generation from production activities and associated Financial Investment Metrics but it takes many more parameters than equation (1).
See Also
Petroleum Industry / Upstream / Production
[ Subsurface E&P Disciplines ]
[ Nodal Analysis ] [ Investment Planning ]
[ Field Development Plan ] [ Field Summary ]