- Economic conductivity
Economic Conductivity (2008) is a sophisticated financial analysis of an oil or natural gas reservoir's ability to provide maximum financial payout through optimized productive capacity.
Oil and natural gas are typically found hundreds or thousands of feet underground in the small pores of rock formations. The [http://en.wikipedia.org/wiki/Hydraulic_conductivity conductivity] or permeability of a reservoir is one of the most critical factors in getting oil and gas to the surface. Reservoirs are often treated by
hydraulic fracturing or other activities to stimulate greater conductivity.For petroleum exploration and production (E&P) companies (ranging from multi-national
supermajor s to small independents) as well as service companies which drill oil and natural gas wells, a single well represents an investment of millions of dollars. While producers have an understandable incentive to minimize their costs, a growing number are choosing to look beyond initial costs, instead designing completion and stimulation programs that optimize production for cost-effective output, saving money in the long run. [ “Operators shift to optimization” by Karl Lang, "E&P magazine", August 2002 http://www.epmag.com/archives/features/3205.htm]Economic conductivity analysis can result in optimized conductivity under realistic conditions to provide the best
return on investment . [“Understanding Fractures”, "Oilfield Chemicals", May 2008, Hart Energy Publishing, LP]The petroleum industry traditionally used simple formulas and basic models to try to predict a well’s production capacity. Economic conductivity analysis draws upon significant advances in technology and detailed case studies, enabling [http://en.wikipedia.org/wiki/Petroleum_engineering petroleum engineers] to factor in complex variables and downhole conditions such as closure stress, non-
Darcy Flow,multiphase flow , fluid velocity, and cyclic stress to determine the realistic [http://en.wikipedia.org/wiki/Hydraulic_conductivity conductivity] of the reservoir.The costs of
hydraulic fracturing and other stimulation activities can then be assessed according to the corresponding increases in production, allowing producers to achieve the most cost-efficient production of oil and gas.Economic conductivity is measured in
millidarcy -feet per dollar (mD-ft/$).ee also
*
Petroleum industry
*Society of Petroleum Engineers
* FracturingReferences
External links
* [http://www.economicconductivity.com/ Economic Conductivity]
* [http://www.spe.org/The Society of Petroleum Engineers]
* [http://www.epmag.com/ E&P magazine]
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