FORECASTING OIL-FIELD ECONOMIC-PERFORMANCE

This paper presents a general method for forecasting oilfield economic performance that integrates cost data with operational, reservoir, an d financial information. Practices are developed for determining econo mic limits for an oil field and its components. The economic limits of marginal wells and the role of underground competition receive specia l attention. Also examined is the influence of oil prices on operating costs. Examples illustrate application of these concepts. Categorizat ion of costs for historical tracking and projections is recommended.