Production optimization requires a clear understanding of subsurface c
onditions throughout the field's life. Description of the subsurface t
hrough classical 2D techniques is being replaced increasingly by power
ful computer technology. Such technology enables construction of fully
numeric 3D models of the subsurface, which can be visualized through
high-end graphics displays. This 3D modeling technology is having a si
gnificant impact on development planning and monitoring activities. Th
e focus here is on the perceived benefits and challenges of using 3D m
odels to optimize production. The paper includes examples of integrate
d 3D static and dynamic modeling activities carried out on fields unde
rgoing appraisal and development and fields facing abandonment. Case 1
(appraisal) illustrates how the integrated use of 3D static and dynam
ic modeling during primary development enables petroleum engineers (PE
's) to construct alternative reservoir models rapidly and to evaluate
the impact of various uncertainties quantitatively. This approach opti
mizes production by facilitating fast-track developments, design of ro
bust development schemes incorporating optimized well paths, and provi
ding quantified justification for appraisal expenditure. Case 2 (mid f
ield life) illustrates the benefits of using 3D modeling technology to
integrate static and dynamic field data, geological knowledge, and sc
enario analysis concepts to locate bypassed oil and optimize infill we
ll trajectories. History matching offers the geologist valuable feedba
ck on the robustness of the geological model, including aspects such a
s the size and orientation of reservoir sands. The relative impact of
various uncertainties can be quantified and development schemes optimi
zed. Case 3 (end field life) illustrates how. even in very mature fiel
ds that are facing abandonment, 3D modeling technology can facilitate
data integration with subsequent cross-discipline interpretation. This
leads to the successful planning and drilling of horizontal sidetrack
s to develop bypassed oil. In all cases, the technology used allows so
phisticated 3D models of the subsurface to be built through integratio
n of diverse data types and geological knowledge. The resultant models
can be upscaled rapidly for dynamic simulation; model optimization th
rough iterative feedback from the reservoir flow simulator can be achi
eved easily. The facility to plan and ''drill'' wells in the 3D volume
enables development scenarios to be optimized both in terms of well t
rajectory and multidisciplinary teamwork.