A method for developing and calibrating optimization techniques for oil production management strategy applications

The hydrocarbon extraction process is complex and involves numerous design variables and mitigating risk. Numerous time-consuming simulations are required to maximize objective functions such as NPV from a particular field while contemplating a significant representation of uncertainty scenarios and various production strategies. Production strategies searches may result in a high-dimensional search space which can yield sub-optimal reservoir economical exploration. As a solution, appropriate optimization algorithms selection and tuning may provide good solutions with lesser simulations. This paper presents a methodology to calibrate, develop, and select optimization algorithms for oil production strategy applications while quantifying the dimension and optimum location effects. Global optimum location altered the best method to be selected. It presents a novel algorithm (ASLHC) and a modification of the Nelder-Mead method (NMNS) to improve its high dimensionality performance. Performances of six pre-calibrated techniques were compared using novel normalized mathematical functions. Optimizations were limited to a 500 evaluation functions computational budget. The PSO, ASLHC, NMNS, and IDLHC were selected and implemented to perform production strategy improvements regarding two parameterizations of the reservoir management variables for a real reservoir model with restricted platform. Results showed the implemented algorithms successfully improved NPV by at least 8