What are the best performance indicators for field development in Oil and Gas?

Estimate the reserves could be a hard task if you have limited numbers of wells and data, where the uncertainty in volumetric ranges will be large, which can be reduced by drilling more wells. Nevertheless there must be kind of balance between reserves volumes and the numbers of target wells to be considered for FDP to avoid Cashflow economics drop through drilling unnecessary and extra expensive wells.

It is highly important to understand operations physibility with environment condition & inside/ outside hazards For facility & installations. to ensure better performance set the standard targets as per recommended S.O.P's & let strive to achieve with dedication transparency. for further best operation must introduce Equipment's reliability optimizing procedures'.

Reserves and resources estimations are often based on probabilistic ranges to cater for uncertainties associated with insitu rock and fluid properties.

In the case of reserves, the Reserves Replacement Ratio (RRR) is an example of a strategic key performance indicator. It compares the total amount of oil and gas that has been extracted to the total amount of oil and gas that has been found or added to reserves. If the ratio is larger than 1, the company’s business strategy is sustainable, and it can keep adding oil to its reserves indefinitely. Companies aim to replace extracted reserves with new discoveries to ensure long-term sustainability

Reserves are like the confirmed amount of oil and gas we're pretty sure we can get. Resources, on the other hand, include all potential amounts, both confirmed and potential discoveries that might become useful with better tech or if things change. Both help decide where to invest and manage our oil and gas wisely.

The recovery factor is a significant parameter that measures the amount of hydrocarbons extracted from an oil or gas field over time. So, it is temporal. RF is calculated by dividing the amount of hydrocarbons produced by the amount initially in place. To enhance the RF, companies use various techniques like artificial lifts, water injection, improved oil recovery techniques, and enhanced oil recovery techniques. The RF of a producing field determines the economics of the field, and achieving an RF of up to 60% in a field is highly commendable.

Recovery factor will be effected by several items such as reservoir charatarazation and rock tightest, fluids property and FIP’s, reservoir pressure mechanism and well spacing ….etc. Based on subsurface studies and simulations modeling works i.e.(carbonate reservoirs), national depletion had RF% between 15-25%, with water injection can be boosted to 30-40%, with gas injection RF% will be increased between 45-55%, while with CO2, chemical IOR/EOR the estimated RF% can be reached between 50-75%.

In simple words we can say, The recovery factor is like a percentage that shows how much oil or gas we can actually get from a place compared to what's there. A higher recovery factor means we're doing a good job using the resources effectively, making oil and gas production more efficient and sustainable.

sure, recovery factors indicate reservoir performance, but may be little to deal with issues and rather observe GOR/LGR for more immediate action

Reservoir Recovery Factor: Definition: The percentage of hydrocarbons recoverable from a reservoir. Significance: Indicates the efficiency of reservoir management and the extent to which the field's resources are extracted.

Capital Expenditure (Capex) vs. Operating Expenditure (Opex): Definition: Compares the total capital investment to ongoing operational costs. Significance: Evaluates the cost-effectiveness of field development and ongoing operations.

By increasing the production rate through well workover or by drilling new wells, OPEX can be reduced. Remotely located fields especially in onshore areas have relatively more OPEX per barrel. OPEX may be a limiting factor for closing down a brownfield at its late stage, however, introducing new technologies that give EOR and optimizing existing infra can bring down CAPEX as well.

I would like to add that Opex comes either as fixed or variable opex. Fixed opex will include costs such as manpower, mandatory asset integrity expenses. Variable opex would include costs of consumables, e.g production chemicals which varies with production rate. Another opex that can be optimised but not cut off is mandatory wells and reservoir surveillance activities cost e.g. reservoir pressure surveys, build up surveys, caliper logs for gas wells etc. Usually government regulatory agency will require periodic activities that must be reported.

To expand on the performance indicators of field development in the oil and gas industry, incorporate a broader set of key performance indicators (KPIs) that provide a comprehensive view of the project's success and efficiency. Reservoir monitoring through water management and EOR (if field is mature) is key. Production sustainability and tracking carbon intensity can satify customer expectations. This is crucial for companies trying to solve the energy trilemma.

Regularly comparing actual production data with the initial projections and models is crucial. This helps in assessing the accuracy of the reservoir models and the effectiveness of the extraction techniques used. Discrepancies between actual and planned results can lead to model adjustments, improving future predictions and strategies. Analyzing similar fields or wells in the vicinity provides valuable insights into geological characteristics and potential production scenarios. Understanding the successes and challenges of similar producing assets and wells helps in refining strategies and anticipating potential issues.

Asset Uptime is a crucial performance metric. The operational performance category records the time equipment or assets are available for production owing to maintenance, breakdowns, or other reasons. Improving the time that assets are idle increases production and decreases revenue loss. Keeping asset uptime above than 95% is a standard industry benchmark. Improving uptime is crucial, provides a stable supply of oil and gas, helping to stabilize energy markets and avert shortages. It also helps businesses avoid revenue decline and keep their cash flow secure.

Another HSE metric to consider: Tracking the frequency of accidents and near-misses is essential for maintaining a safe work environment. Ensuring adherence to safety regulations and standards is not only a legal requirement but also a key performance indicator. Regular training and safety drills contribute to a safer workplace and are critical metrics for assessing the effectiveness of safety programs.

1. Flaring and venting intensity: This KPI measures the amount of natural gas that is flared or vented during oil production. Reducing flaring and venting intensity is important for minimizing greenhouse. 2. Flare gas recovery rate: This measures the percentage of associated gas that is captured and utilized rather than being flared. Increasing flare gas recovery helps reduce emissions and maximize resource utilization.

Reducing gas flaring in oil production involves implementing technologies like gas capture systems, promoting regulatory measures, and encouraging sustainable practices. Additionally, optimizing production processes and investing in infrastructure for gas utilization can help minimize flaring.

Emission reduction in oil and gas industry KPIs are classed under environmental responsibility. Emissions of greenhouse gases and other pollutants are monitored. Environmental objectives, regulatory compliance, and ethical corporate practices are all served by successful emission reduction efforts. Companies aim to reduce emissions significantly, often by 20-30%. This reduction supports environmental sustainability and regulatory compliance.

In my opinion, field development and reserve recovery is an economic activity, not different from any other similar ones, let's say farming. It has to be regarded the same and all performance indicators like NPV and ROI, etc. have to be reviewed and decisions made overall.

The ROP (rate of penetration), which measures how quickly the drill bit cuts through the rock, is a primary indicator of drilling efficiency. Higher ROP means faster drilling, which can significantly reduce the overall cost of the project. Companies can optimize drill bit selection, drilling parameters, and techniques to enhance performance. NPT (non-productive time) refers to periods when drilling operations are halted due to equipment failure, maintenance, or other issues. Minimizing NPT is crucial for maintaining project timelines and reducing costs. Reducing NPT measures could include regular equipment maintenance, improved operational practices, and enhanced personnel training.

The Steam-Oil Ratio (SOR) is a critical performance indicator in Steam-Assisted Gravity Drainage (SAGD) operations, which are commonly used for extracting heavy oil and bitumen from oil sands. The SOR is defined as the volume of steam injected into the reservoir relative to the volume of oil produced. A lower SOR indicates higher efficiency, meaning less steam is required to produce a unit of oil, which translates to lower operating costs and reduced energy consumption. Conversely, a higher SOR indicates lower efficiency.