On Why Model-Based Production Optimization is Difficult in the Upstream Industry

On Why Model-Based Production Optimization is Difficult in the Upstream Industry

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This paper presents an analysis on the use of model-based tools for production optimization in petroleum production. Its motivation is argued through a comparison with the downstream process industries where such tools are widely deployed. The empirical platform for the study includes interviews, secondments, experience with model-based tools in the downstream sector, and pilot testing of model-based tools in the upstream industry. In the paper we contextualize production optimization both in terms of technology and user groups before the main section on observations is presented. The discussion is grouped according to different aspects of data, technology and people, which reappear in a summarizing discussion.
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