End of field life economics in the North Sea
With many North Sea oil fields now well into the decline phase of their production profiles, interest is now being shown in the management of a field in its latter years of production. The realization that reservoirs have a finite limit and that this limit is approaching prompts two questions: What determines how much of the remaining oil reserves can be produced and how can this be maximized while retaining economic efficiency. What determines when a field should be abandoned and what constraints are there on the decision to abandon. This paper attempts, firstly, to identify those variables that will determine the extent to which production should combine, and the effects of shifts in these variables on the remaining productive life of the field. Secondly, the manner in which the abandonment decision might be approached is discussed. The implications of changes in the variables described earlier for both the abandonment date, and any corresponding fiscal relief for abandonment costs, are highlighted.
- OSTI ID:
- 6736201
- Report Number(s):
- CONF-870993-
- Resource Relation:
- Conference: Offshore Europe '87: SPE of AIME conference, Aberdeen, UK, 8 Sep 1987; Other Information: Technical Paper SPE 16559/1
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
99 GENERAL AND MISCELLANEOUS//MATHEMATICS, COMPUTING, AND INFORMATION SCIENCE
ABANDONED SITES
ECONOMICS
NORTH SEA
OIL FIELDS
PROGRAM MANAGEMENT
CONSTRAINTS
DECISION MAKING
FIELD TESTS
FORECASTING
HIDDEN VARIABLES
PRODUCTION
ATLANTIC OCEAN
GEOLOGIC DEPOSITS
MANAGEMENT
MINERAL RESOURCES
PETROLEUM DEPOSITS
RESOURCES
SEAS
SURFACE WATERS
TESTING
294002* - Energy Planning & Policy- Petroleum
990100 - Management
290200 - Energy Planning & Policy- Economics & Sociology