VOI using Data Analytics in Oil & Gas Marginal Field Development

Monetizing marginal field and developing it has become increasingly challenging to Exploration and Production (E & P) companies. Absence of good quality subsurface information or relevant production from the field or nearby it can cripple decision making, be it for development or acquiring new acreage. This is especially true when previous drilling initiatives or even appraisals were beset with poorer forecast than desired. In today’s environment, oil and gas operators face numerous challenges such as complying with newer and stricter environmental regulations. These draw resources away, and companies are unable to exert focus to comb through information which can yield helpful information on developing marginal fields. This paper aims to address the uncertainties in decision making by E & P companies especially on marginal fields by leveraging on data analytics, in particular the usage of Value of Information (VOI), a decision analytics tool that can be helpful in reducing uncertainties. We then identify and discuss the possible causes for the limited use of VOI and suggest ways to increase their application.