multivariate production systems optimization - Stanford University

Chapter 8
CONCLUSIONS
8.1 Conclusions
The emphasis of this study may be summarized by two key points:
1) Nonlinear optimization techniques can be successfully applied to
production system optimization.
2) Nonlinear optimization of a production system model is an intelligent
alternative to exhaustive iteration of a production system model.
The significant advantages of using nonlinear optimization in lieu of exhaustive iteration are
• Nonlinear optimization is not limited by the number of decision variables-
-an unlimited number of decision variables may be optimized
simultaneously. Exhaustive iteration is limited to one or two decision
variables and becomes intractable when three or more variables are
optimized, especially when the variables are interrelated.
• Nonlinear optimization may be used to optimize various objective criteria.
Examples of various objective criteria are: to maximize the present value
of the production stream, to maximize the net present value of the well,
to maximize cumulative recovery on an equivalent barrel basis, to
minimize the cumulative gas-oil ratio, to minimize the cumulative wateroil
ratio, to minimize total investment per equivalent barrel produced, to
maximize the rate-of-return of the well, etc.
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