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U.S. Department of Energy
Office of Scientific and Technical Information

Production of Onshore Lower-48 Oil and Gas-model methodology and data description. [PROLOG]

Technical Report ·
OSTI ID:6557526

This report documents the methodology and data used in the Production of Onshore Lower-48 Oil and Gas (PROLOG) model. The model forecasts annual oil and natural gas production on a regional basis. A linear program is used to select drilling activities for conventional oil and gas on the basis of their economic merit, subject to constraints on available rotary rigs and constraints based on historical drilling patterns. Using an exogenously specified price path, net present values are computed for fixed amounts of drilling activity for oil and gas, and for exploration and development in each of six onshore regions. Forecasts of drilling for enhanced gas recovery (EGR) are exogenously determined, and this drilling is included when considering the constraints on drilling rigs. The report is organized as follows. Chapter 2 is a general overview of the model, describing the major characteristics of the methodology and the logical interaction of the various modules. Chapter 3 specifies the structure of the linear program including the equations for the objective function and the constraints. The details of the methodology used to model exploratory, developmental, and deep gas drilling are presented in Chapters 4-6, respectively. Chapter 7 presents a discussion of the economic evaluation which takes place in each discounted cash flow calculation performed by the model. Cost equations are presented, and various user-specified options as to how to incorporate these costs are discussed. Methodological details and equations used to model finding rates and revisions are given in Chapter 8. Possible areas of future enhancements to the PROLOG model are presented in Chapter 9.

Research Organization:
USDOE Energy Information Administration, Washington, DC. Natural Gas Div.
OSTI ID:
6557526
Report Number(s):
DOE/EIA-0345; ON: DE83006461
Country of Publication:
United States
Language:
English