THE BASICS OF MODEL FOR MARGINAL TESTING OF COSTS FOR DISPOSAL OF EXTRACTED FORMATION WATER

Abstract

Formation water is extracted throughout the life of the fields of hydrocarbons together with oil and/or gas. Oil dehydration costs, as well as those of production water reinjection represent significant component in total costs at mature oil and gas fields. The optimization of the aforesaid costs, from the point of technology and economics, can affect both profitability (cost-effectiveness) and development of the oil field in the future. Methodology of calculation of unit cost will be elaborated in this paper for treatment of produced water (dehydration) and production water reinjection. The methodology of calculation of unit cost for disposal of produced water will be applied at production of mature oil and gas field. Unit cost for disposal of produced water for the period 2009 – 2014 will be calculated in the selected example. Making of this particular model of calculation of disposal costs of produced water is crucial for economy analyses of hydrocarbons exploitation from mature fields.

Keywords

• Petroleum production economics
• cost analyses
• cost calculation methodology
• water treatment costs