In the oil and gas industry, accurately estimating reserves and forecasting viable production rates, whether on a short- or a long-term basis, involves complex processes. However, this is a difficult responsibility that business analysts must carry out on a regular basis, or their organization can fall short on achieving their goals.
Although no one can predict oil prices through reservoir performance analysis, they can predict its behavior through a performance analysis of a reservoir.
Reservoir performance: The primary factors
To come up with a reliable forecast of a reservoir’s performance, analysts need to take an in-depth look at three primary factors: the reservoir’s initial production rate, its decline curve, and its recoverable hydrocarbons.
It’s only through the consideration of these integral parameters that oil and gas operators can estimate the viability of their project.
Integration of innovative analytical methodology
Because of the many challenges that come with reserves estimation and production forecasting, petroleum engineering consultants continue to develop analytical methodologies. Through the utilization of more advanced analytics, these experts can generate more reliable predictions that have a better degree of certainty.
Creating a robust reservoir management program
Preventing major losses due to inaccurate predictions relating to reservoir performance is one of the goals of a reservoir management program. It’s necessary for operators to enlist the services of experts from various disciplines to achieve this goal. Petroleum engineers are amongst these critical players.
How such management policies can help
Through the creation of such a management program, oil and gas companies can economically optimize their recovery projects. They can better predict reservoir performance through reviewing its history. In addition to correct identification and definition of reservoirs and their properties, a well-developed reservoir management program can mitigate the risks of unnecessary drilling.