Return on Investment
The Return on Investment (ROI) varies depending on the level of implementation (virtual metering only, abnormalcy monitoring, production optimization, etc.) and varies based on your situation. The following discusses these benefits. First, we cover the optimization benefits, as they are the largest and most tangible.

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Real-Time Production Optimization
The returns for Real-Time Production Optimization vary by asset, ranging from no gains to a 500% gain in production. Safe expected gains are 5-7%. This is quantified by expertly hand optimizing production then turning iGLO on and off and observing production. 5% should be used for project justification. Mulitiply your lift assisted production rate by 0.05 and then multiply by the value per barrel and convert to annual value.

If a gas-lift assisted platform is producing 20,000 bbl/d and your profit per barrel is $20, then...

20,000 bbl/d * 0.05 * 20 $/bbl * 300 operating days/yr

= $6,000,000 / year.

Subtract off the cost of the system from our proposal to get net profit from the project per year.

Your ROI will be VERY LARGE if your asset is already instrumented and controlled.

Other, less tangible benefits:

• What is the value of more consistent production. When a well is operated at peak production, its output is better controlled and more steady. Downstream operations may enjoy this benefit, such as slug catchers, RVP towers, etc.
• What is the value of decreased decline? Production is higher and declining assets step up production at less slope of decline.
• What is the value of increased ultimate recovery? Some customers have claimed ultimate recovery is increased by drawing on a reservoir harder and faster, though that may vary based on reservoir characteristics. You know best. 
• What is the value of recovering the oil and gas sooner, reducing platform operating costs?

 

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Virtual Metering
Virtual metering tells you what your production is while wells are not on test. Intellect / iGLO estimates may be more accurate than the actual test separator meters or the platform production meters. Most benefits in virtual metering are "soft", meaning it depends on the value you personally see. Generally, the investment in this capability is the lowest, so in almost all cases the benefits justify the expenditure.

The questions you might ask yourself include:

• What is the value of seeing production while a well is "off test"?
• What is the value of being informed that a test is needed? 
• What is the value of knowing what your production likely is, sometimes more accurately than the meters themselves? 
• What is the value of discovering the location or cause of "missing oil or gas"? That is, getting clues on reconcilliation problems? Wells behave differently when on test than off and sometimes the sum of well tests do not equate to platform production. You can see these interactions as you change platform operating conditions.

 

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Anomaly Monitoring (Assest Surveilance)
Anomaly Monitoring tells you when things are "odd" about your operations. Most benefits in anomaly monitoring are "soft", meaning it depends on the value you personally see. Generally, the investment in this capability is the lowest, so almost in all cases, the benefits justify the expenditure.

Case Studies

Send us an email at info@intellidynamics.net to discuss your needs and to learn more about how we've used these technologies to achieve outstanding results with similar customer challenges.