Profitability analysis of producing crude oil by water- flooding using a simulation technique
This U.S. Bureau of Mines report presents a profit-ability analysis of producing crude oil by waterflooding. Included are the estimated costs of installation of water injection and producing equipment for waterfloods at 2,000 and 4,000 ft and the estimated annual operational expenses for each in W. Texas. Using these cost estimates as a base for selecting a range of costs that are indicative of producing crude oil by waterflooding, a simulation technique was derived for determining the profitability under various conditions. Because of the large number of combinations of variables used in this study, a high-speed digital computer was utilized for the calculations. The variables include operational expenses, capitalized costs, price of the oil, annual production, and leasehold acquisition cost. The results obtained from the simulations are presented. In addition, a nomographical approach was chosen for presentation of the profitability. Five nomographs are presented that can be used for fast estimation of the discounted cash flow (DCF) rate of return that might be expected from a prospective or active operation under various sets of assumed conditions. (14 refs.)
- OSTI ID:
- 6985968
- Journal Information:
- Inf. Circ. - U.S., Bur. Mines; (United States), Journal Name: Inf. Circ. - U.S., Bur. Mines; (United States) Vol. 8652; ISSN XIMIA
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
020300* -- Petroleum-- Drilling & Production
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
CAPITALIZED COST
COMPUTERIZED SIMULATION
COMPUTERS
COST
DEPTH
DIAGRAMS
DIGITAL COMPUTERS
DIMENSIONS
ECONOMIC ANALYSIS
ECONOMICS
ENERGY SOURCES
FEDERAL REGION VI
FLUID INJECTION
FOSSIL FUELS
FUELS
INPUT-OUTPUT ANALYSIS
LAND LEASING
LEASING
NOMOGRAMS
NORTH AMERICA
OIL WELLS
OPERATING COST
PETROLEUM
PRICES
PRODUCTION
PROFITS
SIMULATION
TEXAS
USA
WATERFLOODING
WELLS