Developing a value case model using the Reelwell Drilling Method

Abstract

The objective of this thesis has been to develop a value case model in Excel for analyzing the potential economic benefits of the Reelwell Drilling Method (RDM). The value case model was intended for use within Reelwell and as a way of showing their customers the potential of RDM. RDM is a new drilling technology which could potentially expand the horizontal drilling reach from 10 km to 20 km. A value case is defined in this thesis as a collection of Excel-based models which analyze different applications of RDM. The initial scope of the value case model was to analyze two specific cases: the first model, model CC (cost comparison), compares the cost and time usage when using RDM and conventional drilling equipment on the same well. The second model, model FDA (field development analysis), analyzes RDM in a field development setting. RDM is used in an extended reach well and compared to a subsea installation. The value case model was developed according to the agile project management methods. Agile project management methods focus in being able to handle scope changes, and are suitable for projects where the solution is not clear-cut. The development phase of the thesis was structured in seven 2 weeks development cycles. A lot of time and research was put into making the Excel-models easy to use and have an intuitive layout. The result is an Excel-based model that behaves more like a custom-made program than an Excel spreadsheet. Later the scope was redefined in collaboration with Reelwell to that the value case model should be able to compare any two drilling programs, and be able to compare any two field development investment options. The benefit of this was that the Excel models would not have to be rebuilt if different cases than those in the initial scope were to be analyzed. The final value case model is capable of analyzing any two drilling programs and any two field development investment options. In other words the model is capable of high-level feasibility studies, compilation of information at an early decision-making stage and high-level cost comparisons of drilling programs and field development investment options. As such, the value case model fulfilled the re-defined scope. With respect to the objective of the thesis the value case model is only suited for use within Reelwell, and is not suitable for use towards customers. Reelwell deemed the added flexibility to be more beneficial than a commercial product at the end of the thesis. The value case model is functionally complete, but some work remains in order for it to be a commercial product.