Improved Recovery from Exisiting Fields : A Survey of Decison Criteria

The decline in oil prices, combined with high costs which are slow to deflate, has brought forward the date when some fields on the Norwegian continental shelf (NCS) will cease production. Measures are therefore urgently required to extend the producing life of these fields and to improve their recovery factor. The government has identified a number of projects in this area which it believes will provide a good return for both society and the oil companies, but which have nevertheless been postponed or not realised. Against that background, this article surveys oil company decision criteria for projects which could improve oil recovery. Subjects we discuss include parameters for measuring financial performance, management parameters in the companies, organisational structures, and research and development incentives