John R. Schuyler Consultant Aurora, Colo.
Steven M. Hochanadel Tiorco Inc. Englewood, Colo.
Defining some variables with a probability distribution can establish more precisely the economic value of such projects as polymer flooding in the Minnelusa formation.
An enhanced-oil-recovery (EOR) project often presents a difficult investment decision. The substantial risks and performance uncertainties must be carefully weighted against the investment costs.
A Monte Carlo simulation model was used to characterize the incremental economics of a Minnelusa polymer flood. The principal questions addressed were: