ECONOMIC EVALUATION OF MEASURES FOR INCREASING PRODUCTION IN OIL WELL

Measures for the increase in oil production in oil wells are of various types. Different measures may bring about different effects of the increase in oil production. However, they also have different cost combinations. In this paper, a method is proposed for the improvement in the economic evaluation of different measures for the increase in oil production. The first step of this method is to forecast the accumulated increase in oil production after the measure is adopted. The second step is to estimate the investments and costs. The final step is to make net benefit, economic limit, and sensitivity analyses of the measure adopted. Consequently, the actual evaluation result of a certain oil well is obtained to prove the effectiveness of this method.