1. Development and application of an optimization model for overseas oil and gas production benefits
- Author
-
Ting LI
- Subjects
full benefit multidimensional ,benefit yield model ,asset appreciation and preservation ,pareto solution set ,optimal decision interval ,Mining engineering. Metallurgy ,TN1-997 ,Environmental engineering ,TA170-171 - Abstract
Benefit maximization is the enduring objective of production and management for international oil companies. This objective can only be realized through oil and gas production; thus, enhancing production efficiency inevitably leads to maintaining and increasing the value of overseas assets. Given the current practices adopted by domestic companies to improve the quality and efficiency of overseas projects, it is imperative to establish a set of comprehensive benefit and output optimization methods that can withstand oil price shocks, adapt to overseas projects, and cater to various other requirements, thereby serving to improve the quality and efficiency of overseas projects. Taking into account the differences between overseas and domestic projects, this paper analyzes the characteristics and strategies for realizing benefits under different financial and tax regimes, such as mine tax contracts, output-sharing contracts, and service contracts. A framework for evaluating the benefits and outputs of overseas projects under different conditions (such as cost, output, and other floating indicators) is established based on research and analysis conducted at home and overseas. Overall marginal benefit, cash flow, and profit optimization objectives are used to guide benefit allocation to achieve asset appreciation and preservation. A multidimensional and multi-objective decision-making model and an algorithm for benefit maximization are developed by considering both profitability and risk. A Pareto solution set is provided for a comprehensive optimal decision-making interval of overseas oil and gas field project development by considering the constraints of investment, cost, and block in conjunction with multiple decision-making objectives such as production, profit, and risk. This model was applied to specific cases of overseas oil fields under certain decision objectives, and the Pareto optimal decisions were generated. An in-depth analysis and comparison of each solution in the solution set was conducted. Appropriate selection of different solutions is advocated for different decision preferences to ensure the objectivity and scientific nature of profit management decisions. Finally, considering the influence of uncertainty factors, the scenario-based uncertainty analysis of the project output, oil price, cost, and investment has proved effective and generally provides reliable support for decision making in the context of overseas oilfield efficiency and plans for production optimization and high-quality development. The benefit production model and solving algorithm for overseas oilfield projects developed in this paper can provide a theoretical basis and support for decision making by oil field companies to optimize the production benefits of overseas oil fields and improve profitability.
- Published
- 2023
- Full Text
- View/download PDF