In spite of advances in multiphase flowmeter technology since inception, test separators continue to hold relevance in well performance monitoring around the globe. This paper investigated the economic viability of replacing existing test separators with multiphase flowmeters in today's well performance monitoring using a cost-benefit approach for supporting management decision-making process. Data analysis using cost-benefit approach indicates that given the current procurement and installation cost for multiphase flowmeters, it is not economically viable to replace existing test separators with multiphase flowmeters on a per well basis. A sensitivity study showed companies may consider installing multiphase flowmeters on a per well basis for a facility with few producing wells but as more wells are drilled for expansion, multiphase flowmeter installation on per well basis loses its economic viability. The study supports leveraging synergies between multiphase flowmeter and multiport flow selector value technologies as a panacea for moving the needle on conventional test separator deployment.
Table of Contents
1. Introduction
2. Cost-Benefit Methodological Approach
3. Results and Discussion
4. Conclusion
5. Recommendation
Objectives and Topics
The primary objective of this paper is to evaluate the economic viability of replacing conventional test separators with multiphase flowmeters in oilfield well performance monitoring using a structured cost-benefit analysis (CBA) to support management decision-making.
- Economic assessment of multiphase flowmeters versus traditional test separators.
- Application of the Benefit-Cost Ratio (B/C) and Net Present Value (NPV) as decision metrics.
- Sensitivity analysis to identify critical input variables affecting project viability.
- Impact of well field expansion and scale on the economic feasibility of individual well metering.
- Potential of leveraging synergies between multiphase flowmeter and multiport flow selector technologies.
Excerpt from the Book
1. Introduction
The petroleum industry need for real-time multiphase flow data from individual wells was met about two decades ago with the commencement of multiphase flowmeter production by manufacturers on a commercial scale. This need was born out of a desire by field operators to eliminate the conventional means of well performance monitoring using test separators with their attendant drawbacks – They are expensive and cumbersome; they require field personnel intervention; they attract high operating and maintenance cost; and do not lend themselves to real-time continuous metering [1]. In spite of advances in multiphase flow measurement technology, test separators are still widely used in the industry for well performance monitoring. Accordingly, the attendant gains afforded by multiphase flowmeter deployment in terms of CAPEX and OPEX reduction and increased production efficiency have, for the past two decades, eluded the industry [2].
This paper presents a cost-benefit approach to analysing the economic viability of replacing the conventional test separators with multiphase flowmeters in today’s well performance monitoring. It is believed that studies of this nature would provide for decision makers a decision support system in deciding on multiphase flowmeter deployment in both existing and newly-developed oil and gas fields. Data obtained from meter manufacturers and inputs from industry experts formed the basis for the analysis.
Summary of Chapters
1. Introduction: Outlines the historical context and the industry's ongoing reliance on test separators despite the technological advancements in multiphase flow measurement.
2. Cost-Benefit Methodological Approach: Describes the economic model utilized, specifically the use of Benefit-Cost Ratios and defined assumptions regarding service life and discount factors to evaluate project alternatives.
3. Results and Discussion: Presents the comparative calculations of PV costs and benefits, highlighting the break-even analysis and the outcomes of sensitivity testing for the two technologies.
4. Conclusion: Summarizes the finding that replacing test separators with individual multiphase flowmeters is not economically viable on a per-well basis as fields expand.
5. Recommendation: Proposes the integration of multiphase flowmetering with multiport flow selector valve technologies to optimize cost savings and facility footprint.
Keywords
Cost-Benefit Analysis, Multiphase Flowmeter, Test Separator, Sensitivity Analysis, Economic Viability, Well Performance Monitoring, CAPEX, OPEX, Net Present Value, Benefit-Cost Ratio, Oil and Gas Industry, Flow Testing, Decision Support System.
Frequently Asked Questions
What is the core focus of this research?
The study investigates whether it is economically sensible to replace traditional well-test separators with modern multiphase flowmeter technology in oilfield operations.
What are the primary topics covered?
The research covers economic valuation, cost-benefit modeling, sensitivity analysis of input variables, and the comparison of operational expenditures between two distinct metering technologies.
What is the ultimate goal of this paper?
The goal is to provide a decision support system for managers to determine the most cost-effective approach for real-time well performance monitoring in both new and existing oil fields.
Which scientific method is applied?
The paper utilizes a quantitative Cost-Benefit Analysis (CBA) method, calculating the Net Present Value (NPV) and the Benefit-Cost Ratio (B/C) based on a 15% discount factor.
What does the main body address?
The main body details the methodology for evaluating the economic models, presents the numerical results in comparison tables, discusses break-even points, and performs sensitivity analyses on variables like the number of wells and total costs.
Which keywords best describe this study?
The most relevant keywords include Cost-Benefit Analysis, Multiphase Flowmeter, Test Separator, Sensitivity Analysis, and Economic Viability.
How does the number of wells affect the economic viability of the transition?
The study finds that while multiphase flowmeters might be considered for facilities with very few wells, their economic viability decreases as the number of wells in a field increases.
What is the suggested "panacea" for the industry?
The authors suggest leveraging the combined synergies of multiphase flowmeters and multiport flow selector valve technologies to improve cost-efficiency and reduce the physical footprint of production monitoring facilities.
- Arbeit zitieren
- Eric Gbaden (Autor:in), 2020, Cost-Benefit Approach to Replacing Conventional Test Separators with Multiphase Flowmeters in Today’s Well Performance Monitoring, München, GRIN Verlag, https://www.grin.com/document/1168262
