Models for the Minimum Cost Development of Offshore Oil Fields
Since the cost of developing a single offshore oil field usually runs in the tens of millions of dollars, savings due to better development policies could be quite significant. This paper presents a general model for developing offshore fields at minimum cost. The model applies to any field develope...
| Published in: | Management Science |
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| Main Authors: | , |
| Format: | Article in Journal/Newspaper |
| Language: | unknown |
| Subjects: | |
| Online Access: | https://doi.org/10.1287/mnsc.18.8.B378 |
| Summary: | Since the cost of developing a single offshore oil field usually runs in the tens of millions of dollars, savings due to better development policies could be quite significant. This paper presents a general model for developing offshore fields at minimum cost. The model applies to any field developed from fixed platforms, and thus could also be used directly for the development of fields on the north slope of Alaska. The basic limitations and possible utility of the model are discussed. The mathematical programming formulation of the problem is shown to be identical in general structure to the well-known warehouse location problem. Algorithms for solving the problem are developed, whereby the algorithm for a particular problem will depend upon the general form of the platform cost function. The algorithms developed are tested and shown to be computationally practical. |
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