Standard

Application of value of information approach to seismic data for decreasing well drilling risks. / Sitnikov, A. N.; Butorin, A. V.; Timoshenko, G. M.; Vashevnik, A. M.

In: Neftyanoe khozyaystvo - Oil Industry, No. 12, 01.12.2016, p. 40-43.

Research output: Contribution to journalArticlepeer-review

Harvard

Sitnikov, AN, Butorin, AV, Timoshenko, GM & Vashevnik, AM 2016, 'Application of value of information approach to seismic data for decreasing well drilling risks', Neftyanoe khozyaystvo - Oil Industry, no. 12, pp. 40-43.

APA

Sitnikov, A. N., Butorin, A. V., Timoshenko, G. M., & Vashevnik, A. M. (2016). Application of value of information approach to seismic data for decreasing well drilling risks. Neftyanoe khozyaystvo - Oil Industry, (12), 40-43.

Vancouver

Sitnikov AN, Butorin AV, Timoshenko GM, Vashevnik AM. Application of value of information approach to seismic data for decreasing well drilling risks. Neftyanoe khozyaystvo - Oil Industry. 2016 Dec 1;(12):40-43.

Author

Sitnikov, A. N. ; Butorin, A. V. ; Timoshenko, G. M. ; Vashevnik, A. M. / Application of value of information approach to seismic data for decreasing well drilling risks. In: Neftyanoe khozyaystvo - Oil Industry. 2016 ; No. 12. pp. 40-43.

BibTeX

@article{7104ae3fc89844e291b21c0f2f441626,
title = "Application of value of information approach to seismic data for decreasing well drilling risks",
abstract = "Nowadays oil industry is often faced with the following question: which development strategy is preferable? The matter is that the best development scenario is important both in the initial and the development final stages of the hydrocarbons field. The most important criteria while choosing the development scenario is the process of maximizing the profit by raising the NPV value. This estimation parameter can be determined in terms of Value of Information approach (VOI). The authors carry out the usage of VOI approach in various seismic scenarios included all steps which are field survey, processing and interpretation in order to reduce risks and uncertainties. The new seismic data leads to changes in uncertainty distribution, key parameters and thus in NPV distribution. Consequently the new data can change the investment decision. Generally the project risks are closely connected with the lack of precise information about the geologic genesis, which creates the range of uncertainty and consequently leads to increasing the {"}dry hole{"} drilling risks and its expenditures. Conducting the seismic survey helps to decrease the standard deviation in forecasting parameter (to narrow of the forecast deviation). As a result knowingly noncommercial wells can be expelled from the project and thus can lead to the profit maximization and the development program correction. Economic rationalization due to cutting the non-commercial wells drilling allows to obtain the benefit and to form the VOI of the event. The operations called successful in case of VOI values are higher than its expenditures. Otherwise, the benefit is implicit and the operation has no practical usage. The article shows the main approaches of VOI calculation using reserves deviation and optimization of the development scenarios based on the real data.",
keywords = "Decision tree, Drilling risks, Seismic exploration, Value of information (VOI)",
author = "Sitnikov, {A. N.} and Butorin, {A. V.} and Timoshenko, {G. M.} and Vashevnik, {A. M.}",
year = "2016",
month = dec,
day = "1",
language = "English",
pages = "40--43",
journal = "НЕФТЯНОЕ ХОЗЯЙСТВО",
issn = "0028-2448",
publisher = "Neftyanoe Khozyaistvo",
number = "12",

}

RIS

TY - JOUR

T1 - Application of value of information approach to seismic data for decreasing well drilling risks

AU - Sitnikov, A. N.

AU - Butorin, A. V.

AU - Timoshenko, G. M.

AU - Vashevnik, A. M.

PY - 2016/12/1

Y1 - 2016/12/1

N2 - Nowadays oil industry is often faced with the following question: which development strategy is preferable? The matter is that the best development scenario is important both in the initial and the development final stages of the hydrocarbons field. The most important criteria while choosing the development scenario is the process of maximizing the profit by raising the NPV value. This estimation parameter can be determined in terms of Value of Information approach (VOI). The authors carry out the usage of VOI approach in various seismic scenarios included all steps which are field survey, processing and interpretation in order to reduce risks and uncertainties. The new seismic data leads to changes in uncertainty distribution, key parameters and thus in NPV distribution. Consequently the new data can change the investment decision. Generally the project risks are closely connected with the lack of precise information about the geologic genesis, which creates the range of uncertainty and consequently leads to increasing the "dry hole" drilling risks and its expenditures. Conducting the seismic survey helps to decrease the standard deviation in forecasting parameter (to narrow of the forecast deviation). As a result knowingly noncommercial wells can be expelled from the project and thus can lead to the profit maximization and the development program correction. Economic rationalization due to cutting the non-commercial wells drilling allows to obtain the benefit and to form the VOI of the event. The operations called successful in case of VOI values are higher than its expenditures. Otherwise, the benefit is implicit and the operation has no practical usage. The article shows the main approaches of VOI calculation using reserves deviation and optimization of the development scenarios based on the real data.

AB - Nowadays oil industry is often faced with the following question: which development strategy is preferable? The matter is that the best development scenario is important both in the initial and the development final stages of the hydrocarbons field. The most important criteria while choosing the development scenario is the process of maximizing the profit by raising the NPV value. This estimation parameter can be determined in terms of Value of Information approach (VOI). The authors carry out the usage of VOI approach in various seismic scenarios included all steps which are field survey, processing and interpretation in order to reduce risks and uncertainties. The new seismic data leads to changes in uncertainty distribution, key parameters and thus in NPV distribution. Consequently the new data can change the investment decision. Generally the project risks are closely connected with the lack of precise information about the geologic genesis, which creates the range of uncertainty and consequently leads to increasing the "dry hole" drilling risks and its expenditures. Conducting the seismic survey helps to decrease the standard deviation in forecasting parameter (to narrow of the forecast deviation). As a result knowingly noncommercial wells can be expelled from the project and thus can lead to the profit maximization and the development program correction. Economic rationalization due to cutting the non-commercial wells drilling allows to obtain the benefit and to form the VOI of the event. The operations called successful in case of VOI values are higher than its expenditures. Otherwise, the benefit is implicit and the operation has no practical usage. The article shows the main approaches of VOI calculation using reserves deviation and optimization of the development scenarios based on the real data.

KW - Decision tree

KW - Drilling risks

KW - Seismic exploration

KW - Value of information (VOI)

UR - http://www.scopus.com/inward/record.url?scp=85034962393&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:85034962393

SP - 40

EP - 43

JO - НЕФТЯНОЕ ХОЗЯЙСТВО

JF - НЕФТЯНОЕ ХОЗЯЙСТВО

SN - 0028-2448

IS - 12

ER -

ID: 88696064