OkOil Reservoir Recovery Analysis

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OkOil Reservoir Recovery Analysis
Acme Consulting, Inc.
Dale Simpson Yoshiko Katori Karine Peron Dustin
Walker Keleigh Tepel Venk Rajan
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Problem Statement
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Methodology

• Ideal gas law assumed to determine thermodynamic
  data
• Calculated inlet flowrates and pressure
• Calculated outlet flowrates using Pro II
  Simulator
• Size of compressor found by Process Associates
  simulator
• Used internet trend to determine future gas
  prices
• Calculated revenue using flowrates and price data
• Volume flash tank used to determine cost
• Calculated depreciated cost of compressor and
  flash tank
• Created cumulative cash position graph

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Oil and Gas Sales Trends
Year 2
Year 1
Oil(/bbl)
Gas (/MMBTU)
United States Department Of The Interior
Minerals Management Service NTL No. 99-G06
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Option A Analysis
Total Flowrates decrease with time
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Option A Financial Analysis
Total Profit Revenue 1,000,000
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Option B Analysis
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Option B Financial Analysis
Liquid Flowrate 9.3 ft3/hr Revenue 711 per
day Cost Compressor 190,000 Salvage Value
114,000 Power Consumption 4000 per month
Total Profit Revenue Cost 400,000
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Compressor Specifications

• Type six-stage centrifugal compressor
• Brake horse power 8,000 hp
• Head of each stage 20,000 ft
• Pressure difference 1400 psi
• Specific gravity around 300
• Adiabatic efficiency 73
• Mechanical efficiency 97.5
• Price 190,000
• Salvage Value 114,000

Source - www.processassociates.com
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Comparison of Option A vs. Option B
Option A More Cost efficient
Figure Cumulative Cash Position Graph