Technical and economic impact of crosswell technology: Progress Report

Conoco`s Crosswell Reservoir Characterization (CRC) team is using Decision and Risk Analysis (D and RA) to evaluate the potential economic impact of the authors` projects. D and RA can be a useful tool for refining the direction of a project and communicating the value of information in economic terms. Initial studies show that CRC has high potential economic value. Three steps were used to analyze the value of the CRC project. A high-level, industry-wide model was developed to look at the technical, application, and commercialization success of the technology. The team considered an infill drilling decision in shallow shelf carbonates as a detailed case. For that case, fully integrating crosswell information with supporting data (well logs, cores, production information, etc.) leads to a three-fold increase in expected value. The third step, a portfolio analysis of all crosswell applications, was initiated, but not completed. Given the potential broad application of CRC and the value obtained by the one detailed case, the technology is expected to have a very high value.