Abstract:

As part of a larger research that deals with modeling different aspect concerning oil industry, this paper intends to present how we can build up econometric models for optimal management of the extraction process in an oil drilling and extraction unit. In the beginning, a special focus was placed on revealing some models that help us estimate the productivity of oil wells, while application of these models have an important economic impact on oil extraction as oil-wells productivity can be maximized through the manipulation of critical extraction variables. Then, the article deals with models related to the estimation of oil deposit reserves through production decline method, while characterizing the rate of decrease in production of an oil deposit, the declining oil production term was introduced, which was defined both as the actual decline and the nominal decline. In the end, the paper discusses about building of a model for optimal management of the extraction process that implies to determine an extraction policy that dynamically matches the extraction possibilities to beneficiaries' needs while maximizing or minimizing a performance objective function.