Guys,
Have a riddle that need your bright minds here: How to maximize the value of an oil field?
Constraint: estimated reserves (2P+2C) are fixed. Estimated capex and opex cost for reserves is fixed.
Appreciate your sharing!
I can think of no fewer than 1000 experts in the E&P industry that work less than 1 mile away from me who have been wondering that same thing for many many years.
I bet if you can figure it out, you’ll be an instant billionaire. Good luck.
Yeah people have been wondering that for over a century. You have a conceptual oil/gas in place number, thats whats in the ground, then you have a recovery factor which is impacted by how you drill and complete your well. Minimize your capex and opex, with an eye to maybe a 10% increase in capex might yield a 20% increase in recovery from that well, if you’re adding better technology. Like greenie says, your questions are trying to be answered every day by thousands of people.
You can cut capex by finding cheaper contractors (but they might do a worse job) or by spending less time since most capex is charged by day rates (drilling rigs and the like).
By the sounds of your energy questions on here, it doesn’t sound like you have a lot of resources at your disposal at your job, or that you were kind of thrown into the deep end.
Yeah, although I have already done realistic valuation with detailed realistic technical & operating plan for the field (inputs from on-the-ground technical expert), however if you stick into the current reserves it’ll be dead-end. I’m not concerned regarding the valuation of reserves, but real Issue is how to materialize the ‘prospective resource’ value whereby everything is actually unknown until you drill and produce. Want to explore at high level concept if there’s any aspect that can potentially make a big difference. I’m not even looking at increasing value by 10%-20% but like 50%-100% (I know I know, people’s ambition is a hard-to-explain thing).
Any good case studies of companies around the world that successfully sell their prospective resources?
I take it back. You won’t be a billionaire. You’ll be so wealthy that Buffett and Gates will be begging you for scraps.
Good luck.
Hypothetical case is still hypothetical. People’s dream is still dream.
If you want a high level concept of increasing the value - porosity and pressure, and geology/geophysics. How can we maintain pressure, increase porosity, and better map out what’s down there. Improve any of those and you’ve hit the money.
I think you’re on the wrong forum. Try Petroleum Engineer Forum. (Drill together, frack together.)