Mathematical Model for the Economical Terminal Water Cut of Oil Well

Abstract

For an oil well, when its water cut rises to a certain high point, the economical input gets equal to the economical output, at this time, this oil well produces nothing economically. If the water cut exceeds this point, then this oil well produces a deficit. This point is the so-called economical terminal water cut. Based on the theory of break even analysis, this paper determined the components of the cost of an oil well, analyzed the factors affecting the economical terminal water cut of oil well and developed a mathematical model to predict the value of economical terminal water cut.