Production Optimization under Uncertainty - Applied to Petroleum Production

A key challenge in production optimization is handling of model uncertainty. Traditionally, production optimization is done in a deterministic setting, ignoring the uncertainty. In this work, we formulate the problem a two-stage stochastic programming problem. The solution to the problem is a strategy for operating the wells, instead of a single setpoint obtained from the deterministic problem. This strategy is easy to follow for the operator. A synthetic case study shows how the proposed approach increases the expected oil production by 1.5 percent. (C) 2015, IFAC (International Federation of Automatic Control) Hosting by Elsevier Ltd. All rights reserved.