Review article
DIFFERENCE IN APPROACH TO ECONOMIC EVALUATION BETWEEN CONVENTIONAL AND UNCONVENTIONAL PROJECTS
Igor Rusan
; INA d.d. Zagreb, Hrvatska
Abstract
Compared to conventional hydrocarbon resources estimation, which is based on volumes, estimation of unconventional layers is based on the possible recovery of each development well. The main risk in unconventional layers is not the probability of finding hydrocarbons, but instead the well production profile, initial production rate and decline per year, are used as main indicators of the project. Unconventional resources are mainly spread continuously in the subsurface, so the ultimate recovery depends on the size of the development well grid and the quality of performed stimulation jobs. For the final estimation of economics however a test program of at least three wells is necessary after which it would be possible to determine and optimize possible development scenarios. Besides geological parameters large influence on economics has envi¬ronmental and fiscal laws in force in a given region.
Keywords
resource estimation; unconventional hydrocarbon resources; risk; EU legal framework
Hrčak ID:
129075
URI
Publication date:
4.7.2014.
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