SPE Production & Operations
Volume 21, Number 4, November 2006, pp. 455-466

SPE-90213-PA

Real-Time Optimization: Classification and Assessment

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DOI  More information 10.2118/90213-PA http://dx.doi.org/10.2118/90213-PA

Citation

  • Mochizuki, S., Saputelli, L.A., Kabir, C.S., Cramer, R., Lochmann, M.J., Reese, R.D., Harms, L.K., Sisk, C.D., Hite, J.R., and Escorcia, A. 2006. Real-Time Optimization: Classification and Assessment. SPE Prod & Oper  21 (4): 455-466. SPE-90213-PA.

Discipline Categories

  • 5 Production and Operations
  • 6.6.5 Well Performance Monitoring, Inflow Performance
  • 5.7 Operations Management
  • 4.4.1 Process Control and Automation
  • 3.5 Information Systems and Data Use

Summary

The Real-Time Optimization (RTO) Technical Interest Group (TIG) has endeavored to clarify the value of real-time optimization projects. RTO projects involve three critical components: People, Process, and Technology.   Understanding these components will help establish a framework for determining the value of RTO projects.  In this paper, the Technology component is closely examined and categorized.

Levels within each Technology category are illustrated by use of spider diagrams, which help decision makers understand the current status of operations and the future RTO status. The perception of uncertain value has been one of the critical issues in adopting RTO systems in our industry. Therefore, case histories are reviewed to demonstrate the impact of RTO projects.

To assist RTO project promotion further, we list lessons learned, suggest a justification process, and present a simple example of an economic-evaluation process.

Introduction

Industry case histories demonstrate many types of benefits from RTO such as production-volume increase; better return on investment (ROI); higher decision quality; health, safety, and environment (HSE) improvements; and operational expenditures (OPEX) reduction.   However, they have lacked systematic project-evaluation processes for justification.

Today, promoting RTO is, in essence, a competition for capital within a company.  The project teams that recognize this fact and then clearly outline the purpose, benefits, costs (direct or indirect), and strategic business alignment of their proposals will be in an advantageous position to secure funding. Because RTO is still an emerging discipline, classifying projects of this nature is still dependent on an individual’s point of view. This paper provides classification of RTO to help provide a common vocabulary to address a multitude of issues.

© 2006. Society of Petroleum Engineers

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History

  • Original manuscript received: 7 June 2004
  • Meeting paper published: 26 September 2004
  • Revised manuscript received: 10 May 2005
  • Manuscript approved: 19 January 2006
  • Version of record: 20 November 2006