Optimization of the Net Present Value for Hydraulic Fracturing Treatments

Abstract

Hydraulic fracturing optimization is very necessary to achieve the best stimulation results. This dessertation aims to optimize the hydraulic fracturing treatment parameters by optimizing the Net Present Value which is directly linked to the fracture geometry. This study introduces a different approach into optimization, using a set of previous historical data from various wells to obtain a collection of charts that illustrate the liaison between the production and the optimal ranges of both the fracture geometry & conductivity and proppant distribution. We then proposed a tool developed in excel using the Generalized Reduced Gradient optimization method which resulted in obtaining the base cases and case study for this dissertation and acquire the fracture geometry parameters while focusing firstly on optimizing the revenues and costs separately in the first two cases in a way to simulate the operator’s usual approach, then secondly simultaneously optimizing the revenues while taking into consideration the operation costs which represents our strategy. Following that, case study validation is conducted using Petrel to demonstrate the application of the previous optimization strategy coupled with the historical data on well X and show that in fact this method can achieve optimal NPV results and meet both the service company and the operator’s demands.