ABSTRACT: Examination of MWD Wireline Replacement by Decision Analysis Methods: Two Case Histories
BECK, GARY F.
The common cost analysis on MWD wireline replacement is usually a simple comparison of invoice costs and anticipated rig time savings. While this type of method may yield useful information regarding cost benefits, it can be misleading as it does not take into account all of the risks and diverse factors that need be considered to evaluate the economic benefits of running MWD.
Decision analysis (DA) programs are capable of incorporating variable costs, risks, and diverse factors in evaluating the possible economic benefits of running MWD. They accomplish this by performing a Monte-Carlo simulation on a range of possible outcomes and their associated costs. Comparison of one set of outcomes and associated costs (wireline logging) to another set of outcomes and costs (MWD replacement) is then possible. Since risk is incorporated into this type of analysis, a more accurate picture can be obtained regarding the possible economic benefits of MWD wireline replacement.
AAPG Search and Discovery Article #90941©1997 GCAGS 47th Annual Meeting, New Orleans, Louisiana