How do you determine the economic feasibility of well testing projects?

1 Project objectives

The first step in assessing the economic feasibility of well testing projects is to define the project objectives and scope. What are the main questions that you want to answer with well testing? How will the results affect your decision making and future plans? How much data and accuracy do you need to achieve your goals? By clarifying the project objectives, you can narrow down the options and select the most suitable well testing methods, equipment, and duration for your project.

2 Cost-benefit analysis

The second step in assessing the economic feasibility of well testing projects is to conduct a cost-benefit analysis. This involves estimating the costs and benefits of well testing and comparing them with the alternative scenarios. The costs of well testing include the direct expenses of renting or buying the equipment, hiring the personnel, mobilizing the resources, and operating the test. The benefits of well testing include the expected value of the information gained, the potential increase in production and recovery, and the reduction of risks and uncertainties. The cost-benefit analysis can help you determine the optimal level of investment and the expected return on well testing.

3 Risk and uncertainty analysis

The third step in assessing the economic feasibility of well testing projects is to perform a risk and uncertainty analysis. This involves identifying and quantifying the sources of risk and uncertainty that can affect the outcome and value of well testing. Some examples of risk and uncertainty factors are the reservoir heterogeneity, the fluid properties, the measurement errors, the operational delays, and the market fluctuations. The risk and uncertainty analysis can help you evaluate the sensitivity and robustness of your well testing project and devise appropriate mitigation and contingency plans.

4 Decision analysis

The fourth step in assessing the economic feasibility of well testing projects is to apply a decision analysis framework. This involves using a systematic and rational approach to compare the different options and scenarios of well testing and select the best one based on your objectives, preferences, and constraints. Some examples of decision analysis tools are decision trees, expected value calculations, utility functions, and probabilistic models. The decision analysis can help you optimize your well testing project and justify your choice with transparent and consistent criteria.

5 Validation and verification

The fifth step in assessing the economic feasibility of well testing projects is to validate and verify your results and assumptions. This involves checking the accuracy and reliability of your data, models, and calculations and ensuring that they are consistent with the reality and expectations. Some examples of validation and verification methods are quality control, peer review, sensitivity analysis, and historical data comparison. The validation and verification can help you improve your confidence and credibility in your well testing project and identify any gaps or errors that need to be corrected or updated.

6 Communication and presentation

The sixth step in assessing the economic feasibility of well testing projects is to communicate and present your findings and recommendations to the relevant stakeholders. This involves using clear and concise language, visuals, and formats to convey your message and persuade your audience. Some examples of communication and presentation skills are storytelling, data visualization, report writing, and oral presentation. The communication and presentation can help you share your insights and value proposition of your well testing project and obtain feedback and approval from the decision makers and partners.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?