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The success of an oil field depends on the energy available to drive oil from the reservoir rock into the wells. There are three sources of energy, but they differ enormously in effectiveness: a) If the oil reservoir has a natural connection to water, as in an ordinary anticline, then water can displace oil out of the reservoir rock and into the wells. The efficiency of this “water drive” can drive as much as 60 percent of the original oil into the wells. b) If there is initially a separate accumulation of natural gas above the oil, the operator can locate the casing perforations only in the oil-saturated zone. As the oil is produced, the gas cap expands to displace oil, but the process recovers only about 40 percent of the oil. c) In most oil reservoirs, initially there is some natural gas dissolved in the oil. As the oil field is produced, bubbles of gas separate from the oil and push oil toward the wells. Typically, less than 20 percent of the oil is recovered. Planning the entire life of the oil field soon after the field is discovered has substantial benefits. Petroleum engineers can locate water injection wells and gas injection wells as part of the plan for drilling the early production wells. The program can be optimized for total oil recovery instead of maximizing the early cash flow. Computer simulations allow “what if” questions to be asked while planning the field. However, simple computer simulations can be highly misleading. The computer problem is not highly difficult for a natural gas reservoir in a mythical “homogeneous isotropic” reservoir with no natural water drive. Real reservoir rocks have lots of internal structure. For instance, little streaks of mudstone a quarter inch thick have a huge effect on fluid flow. The rate of flow of gas, oil, and water is highly dependent on how much gas, oil, and water are present. At the very birth of the modern computer age, John von Neumann identified weather forecasting and oil reservoirs as important problems requiring huge amounts of computer power. Economic study of Oil and Gas Exploration https://www.amazon.com/dp/B07BGCPY3V energy economics group / 319983132809585 economist roshdy ebrahim page / economist-roshdy-ebrahim-342996629513826 #energy #oil_gas