Petroleum production optimization - A static or dynamic problem?

Abstract This paper considers the upstream oil and gas domain, or more precisely the daily production optimization problem in which production engineers aim to utilize the production systems as efficiently as possible by for instance maximizing the revenue stream. This is done by adjusting control inputs like choke valves, artificial lift parameters and routing of well streams. It is well known that the daily production optimization problem is well suited for mathematical optimization. The contribution of this paper is a discussion on appropriate formulations, in particular the use of static models vs. dynamic models. We argue that many important problems can indeed be solved by repetitive use of static models while some problems, in particular related to shale gas systems, require dynamic models to capture key process characteristics. The reason for this is how reservoir dynamics interacts with the dynamics of the production system.

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