How do you incorporate value of information into reservoir management and optimization?

VOI is really important because it evaluates and quantify a company's deviation from it strategy using data. The VOI should be design as a two way process between the operational end and the strategic end. Ways on to bridged the observed gap should be the collaborative efforts of both parties who should fashion proper procedure,processes and systems on how to bridge the observed gap. VOIs ensure that organization remains focused on their strategy and acts as a guide to ensure that operations is in line with strategy.

Incorporating value of information into reservoir management involves assessing the cost-effectiveness of acquiring additional data to reduce uncertainty, optimize decisions, and maximize economic returns in oil and gas production.

VOI calculation will depend on the importance laid to the data collection, impact made from decisions as a result of the data collected as well as the quality of the data collected. A weigh value attach to the strategic importance to the VOI decision would help improve the outcome.

You have provided a clear and concise explanation of how to calculate the Value of Information (VOI) in the context of decision-making, particularly in the oil and gas industry. To further illustrate the process, let's break it down into the three main steps you mentioned: 1. **Define the decision problem and alternatives:** The decision problem in this case is whether to drill a new well in a reservoir. There are two alternatives: drill the well or do not drill the well. 2. **Estimate the probability and value of each outcome for each alternative:** This step requires a thorough understanding of the potential outcomes and their probabilities.

VOI is apply to performance Management. It is also of great value when formulating strategies to improve processes and overall organizational objectives. It helps to drive operational activities to organization strategy which leads to organisational success. VOI can help optimize tools,processes, and systems that influence and govern productivity in the oil and gas industry.

VOI also required special skill set and experience to implement.. In addition there is a tendency to incorporate unnecessary data that is not required. It requires extra manpower to define the standard require as a benchmark for your performance evaluation.

Design a decision tree contrasting two worlds: one with the new info, and one without it. Add branches for every possible outcome, their probabilities, and payouts. Then, when you realize the decision’s already been made by those above you, just tweak the assumptions—there’s plenty of wiggle room—until the tree magically supports the decision. Easy peasy.

To use VOI in reservoir management effectively: define objectives, focus on key uncertainties, integrate data, analyze scenarios, weigh cost vs. benefit, use advanced tech, update iteratively, involve stakeholders, manage risks, and continuously monitor and adjust strategies.

First and for most l wil l design a two face interactive system where input into the system would be done by experts ,specialist and subject matter experts with adequate feedback put been done by operations or field works. The system would the statistically evaluation the data and automatically evaluate the difference between the expected as designed by the experts and the feedback system imputed by operational staffs Based on collaborative interaction between the experts and feild workers strategies can be design to bridge the gap.