Field development and economics
Field development and economics
The objective of this research area is to improve and disrupt current field design workflows by developing, studying and implementing novel technical and economic valuation solutions that allow one to compute and flag optimum ways of exploiting hydrocarbons based on digital tools and methods. This is important to ensure the profitability of new fields under a low oil price environment, environmental constraints, smaller discovery sizes and challenging areas...read more
Program area team
- Milan Stanko, Assoc. Prof. Petroleum Engineering
- Verena Hagspiel, Prof. Investment and Finance
- Maria Lavrutich, Assoc. Prof. Industrial Economics
- Lars Imsland, Prof. Automatic Control and Optimization
- Asgeir Tomasgard, Prof. Industrial Economics & Technology Management
- Guowen Lei, PhD candidate
- Semyon Fedorov, PhD candidate
- Seok Ki Moon, PhD candidate
- Olga Noshchenko, PhD candidate
- Siva Sankar Udaya Kumar, PhD candidate
Decision-support tools for early-phase design of offshore hydrocarbon fields
Associate Professor Milan Stanko
This video is a short overview of some of the research performed by his group on decision support methods during early phase planning of offshore oil and gas fields. Some focus aspects are using accurate proxy modeling to determine probabilistic optimal drilling and production schedules to help deciding early on e.g. processing capacities and the project’s fate. Environmental parameters such as CO2 emissions and footprint are also considered.
Cost effective development of small discoveries on the Norwegian Continental Shelf
PhD Candidate Semyon Fedorov
Main Supervisor Verena Hagspiel
Sponsor: Okea
This project studies field development methods for reservoirs of modest to small size, with prominent downside risk. The project focuses on:
1) the value of flexibility for field development by combining the real options approach and decision analysis
2) comparing these advanced valuation methods against traditional methods
3) assessing the value of acquiring additional information on the reservoir to execute improved oil recovery projects during the production phase
4) study of a staged-development design philosophy.
Project result: Staged development allows to get more value out of small discovery
A study case showing that allowing for flexibility and updating with new information mitigates potential losses
Operator-contractor risk and benefit sharing in oil exploration and production
A study case shows that sharing agreements allow to decrease volatility and downside risks
BRU21 Conference 2022
Improved planning methods for more energy efficient and environmentally friendly fields in the Barents Sea
PhD Candidate Seok Ki Moon
Main Supervisor Milan Stanko
Sponsor: Aker BP
This project studies field planning methods to develop offshore fields with a small environmental footprint, increased energy efficiency and reduced emissions. The focus is on:
1) improving understanding of environmental KPIs and how are they influenced by field design features
2) development of a digital twin of the field study case to predict emissions, energy usage and efficiency of the field
3) development of computational routines for decision support
4) study of alternative economic valuation
Improved planning method for more energy efficient and environmentally friendly field development
Results of a study case from Aker BP show it is possible to find alternatives that have both good environmental and economic performance.
BRU21 Conference 2022
Automated methodologies for decision support in field development
PhD Candidate Guowen Lei
Main Supervisor Milan Stanko
Sponsor: Lundin Energy Norway AS
The aim of this project is to develop computer-based robust and reproducible methodologies that advise field planners in defining the main features of the field in phases DG0-DG2. This will be performed by:
1) developing a digital twin of the field’s value chain
2) developing machine-learning based models and integrating models of various nature and complexity
3) developing and testing methodologies (e.g. optimization, probabilistic simulations) to determine optimum design features
4) analyzing uncertainty and energy usage, CO2 emissions, ease of decommissioning.
Project result: Efficient formulation to find optimal production strategies matches reality
Two study cases showing that efficient optimization can provide valuable insights to field planning and matches reality
Optimal field planning considering uncertainties and environmental performance
PhD Candidate Olga Noshchenko
Main Supervisor Verena Hagspiel
Sponsor: Okea and Norwegian Petroleum Directorate
How to valuate oil and gas offshore projects considering economic and environmental performance?
BRU21 Conference 2022
Short-term optimization under uncertainty in the Norwegian natural gas system
PhD Candidate Siva Sankar Udaya Kumar
Sponsor: Gassco
How to smartly operate the network considering trade-offs between energy efficiency, CO2 emissions and economic value.
BRU21 Conference 2022
