How Do We Perform Stochastic Reservoir Optimization?*

Reservoir Risk Management Workflow

Valuation under Uncertainty

When to Perform Reservoir Optimization

Reservoir Optimization

Thought Process

Example 1: Horizontal well with ACS

Sample Cost Function

Valuation of ACS : Deterministic case

Example 1: Stochastic reservoir

Treatment of uncertainty

Equi-probable points

Objective function

Results of stochastic optimization
single uncertainty

Optimization at different risk aversion factors

Added value through monitoring

Example 1: Two uncertainties

Results of stochastic optimization

Optimization for different risk aversion factors

Added value through monitoring

Which uncertainty to resolve?

Example 1: Three uncertainties

Results of stochastic optimization

Issues

Optimization Algorithms

Optimization Algorithms

Uncertainty

Efficiency

Neural Network

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