It is possible to optimize the design, execution, and evaluation of drilling projects with the help of powerful software designed specifically for drilling economics. To get the best results, however, Emergency Exercise Simulators may be necessary to take a different approach and make different assumptions depending on the scenario. You are going to learn some of the best practices for using drilling economic software in various scenarios, such as exploration, development, and appraisal wells, as well as how to avoid common pitfalls and errors in the course of reading this article.

Wells used for exploration

Exploration wells are among the most uncertain and risky types of drilling projects because they aim to discover new hydrocarbon resources in unproven areas

1.  This makes exploration wells one of the most dangerous types of drilling projects

2.  Therefore, Emergency Exercise Simulators is necessary to consider the probability of success, the range of possible outcomes, and the sensitivity to key variables when using drilling economic software for exploration wells

3.  This is because the software is used to determine the economic viability of drilling

4.  Probabilistic methods should be used to account for uncertainty in reservoir parameters, drilling costs, and oil and gas prices so that best practices can be adhered to

5.  This will ensure that best practices are followed

6.  In addition, there is a need to define plausible scenarios and cases so that the results of the exploration well can be represented accurately

7.  A sensitivity analysis needs to be carried out in order to determine the factors that have the most impact as well as the points at which the case and scenario are profitable

8.  Last but not least, Emergency Exercise Simulators is important to have backup plans and an exit strategy in place for a variety of potential outcomes and circumstances, such as detouring, testing, or abandoning the well

Development wells

Development wells are the type of drilling projects that aim to produce hydrocarbon resources from proven reservoirs. As a result, they are typically the most profitable and predictable type of drilling project. Therefore, Emergency Exercise Simulators is necessary to carefully optimize the well design, location, and trajectory in order to ensure maximum recovery while incurring the fewest possible costs when using drilling economic software for development wells. The use of deterministic methods to estimate reservoir parameters, drilling costs, and oil and gas prices based on historical data and field analogues is recommended as the best practice. In addition, it is essential to determine an optimal well design, location, and trajectory by basing  on the characteristics of the reservoir, the production goals, and the surface constraints. In order to select the optimal option for the well, an economic analysis needs to be carried out to compare the net present value, internal rate of return, and payback period of each of the available options. A risk analysis and mitigation plan for potential technical and operational challenges, such as an unstable wellbore, damaged formation, or broken piece of equipment, should also be included.

Appraisal wells

The goal of appraisal wells is to reduce uncertainty and increase confidence in the hydrocarbon resources discovered by exploration wells. As a result, appraisal wells are some of the most challenging and complex drilling projects. In order to accomplish this goal, the drilling economic software must integrate the data and models used in geology, geophysics, and engineering in order to refine reservoir parameters, estimate recoverable volumes, and evaluate commercial viability. The use of stochastic methods to generate multiple realizations of reservoir parameters, drilling costs, and oil/gas prices is one of the best practices for the use of drilling economic software for appraisal wells. Other best practices include the use of these methods. In addition to this, it is essential to define appraisal objectives and strategies based on criteria for the reduction of uncertainty and the creation of value. It is important to conduct decision analysis in order to assess the expected monetary value, decision tree, and value of information associated with the various appraisal choices. Last but not least, learning curves and feedback loops need to be incorporated in order to adjust appraisal plans and update data and models based on the results of evaluations.