1887

Abstract

Summary

This research presents a new method on how to build a portfolio of gas fields within the presence of uncertainty. The portfolio method helps decision makers in the industry to understand the economic impact of their investment based on their portfolio return and risk. This method has been inspired by the Modern Portfolio Theory (MPT) which has revolutionized the financial industry. This research method extends MPT application for the O&G industry by introducing scheduling feature which helps decision makers to understand the optimum time to start their fields at their efficient production rates. The model is solved deterministically and stochastically. The latter helps to quantify reservoir volume uncertainty and the downside risk of losing the capital investment. The extended abstract presents this research method on gas fields and shares the outcomes of the deterministic and stochastic cases.

Loading

Article metrics loading...

/content/papers/10.3997/2214-4609.201900990
2019-06-03
2024-04-18
Loading full text...

Full text loading...

References

  1. Al-Harthy, M.H and Khurana, A.K.
    2006. Portfolio Optimization: Systems vs. Sequential Approach. Presented at the SPE Asia Pacific Oil & Gas Conference and Exhibition, Adelaide, Australia, 11–13 September. SPE 101152.
    [Google Scholar]
  2. Arps, J.J.
    1945. Analysis of decline curves. Transactions of the AIME, 160(01), 228–247. SPE 945228G
    [Google Scholar]
  3. Bukhari, A.A.
    (2014). Optimizing corporate decisions for dominant hydrocarbon producers under uncertainty (Doctoral dissertation, The Pennsylvania State University).
    [Google Scholar]
  4. Edwards, R.A. and Hewett, T.A.
    1993. Applying Financial Portfolio Theory to the Analysis of Producing Properties. Presented at the SPE Annual Technical Conference and Exhibition, Houston, Texas, October 3–6. SPE 26392.
    [Google Scholar]
  5. Judah, J.
    2016. Mitigating Risks to Improve Project Results. JPT,68(10):10–11. SPE-1016-0010-JPT.
    [Google Scholar]
  6. Hightower, L. and David, A.
    1991. Portfolio Modeling: A Technique for Sophisticated Oil and Gas Investors. Presented at SPE Hydrocarbon Economics and Evaluation Symposium, Dallas, Texas, April 11–12. SPE 22016
    [Google Scholar]
  7. Markowitz, H.
    1952. Portfolio selection. The Journal of Finance, 7(1), 77–91.
    [Google Scholar]
  8. Orman, M. M., & Duggan, T.E.
    1999. Applying Modern Portfolio Theory to Upstream Investment Decision Making. JPT, 51(03), 50–53. SPE-54774-JPT.
    [Google Scholar]
  9. Wood, D.A.
    2016. Characterization of Gas and Oil Portfolios of Exploration and Production Assets Using a Methodology that Integrates Value, Risk and Time. Journal of Natural Gas Science and Engineering, 30, 305–321.
    [Google Scholar]
http://instance.metastore.ingenta.com/content/papers/10.3997/2214-4609.201900990
Loading
/content/papers/10.3997/2214-4609.201900990
Loading

Data & Media loading...

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error