Research On Development Investment Optimization Of Z Oil Company

The optimization of oilfield development investment is a key measure of the oil companies to ensure oil production,achieve stable output,and increase investment returns.At present,the oil fields of Z Company have largely entered the middle and later stages of development characterized by high water cut and high recovery.In order to avoid drastic decrease of oil production,secure investment returns,and realize sustainable exploration and development,Z Company needs to make immediate adjustments to its investment plan and carry out multi-constraint and multi-objective optimization on its project portfolio and also on the investment scale,investment direction,and investment structure of its oilfield development projects.First,this paper reviewed the theoretical methods related to the optimization of oilfield development investment,including overview of oilfield development investment,oilfield development theory,portfolio theory,optimization theory,as well as optimization approaches including financial analysis,mathematical planning,and computer simulated algorithm.This paper then analyzed the development and investment status of Z company,and identified the following problems: the investment structure problem caused by insufficient investment in the new area and excessive development in the old area;The production stability problem caused by the insufficient design of yield replacement;The development investment fluctuation caused by the fluctuation of oil price is too large,which leads to the development continuity problem.After this,the author carried out optimization design for Z company's investment.The net present value,internal rate of return,and total output were selected as the objectives in the investment optimization,while total investment,ratio of reserve structure,and output fluctuation were selected as constraints in the investment optimization.Through the construction of investment,cost,sales revenue and other indicator estimation formulas of oilfield development projects,relations between objective function and constraint function of investment optimization were established.Taking Project A as an example,the author calculated the investment optimization indicators in 15 of the existing projects of Z company.Finally,targeting at both single-objective and multi-objective optimization and in combination with 0-1 integer programming,the mathematical models of single-objective and multi-objective optimization were constructed respectively,and the parameters and indicators of the projects were put into the models.Through hybrid genetic algorithm,the optimal portfolios under both single-objective and multi-objective optimization were obtained.According to the optimization results,Z Company should shift its focus of investment from capacity building in the old area to capacity building in the new area,while greatly reducing investment in the old area and the investment on stimulation measures.In addition,when selecting projects for investment,Z Company should give priority to projects with large development scale in new area.