Information Modeling as a Foundation for Revealing the Production Potential of an Oil Production Company

All major oil fields in the Urals and the Volga Region, Russia, are in the final stage of exploration, when oil production is becoming too costly. In the light of the novel coronavirus pandemic that has led to a reduction in oil demand, in turn resulting in limited production, optimizing the oil production costs is even more critical. This paper dwells upon developing methodological toolkit for information modeling to help identify the production potential associated with optimizing the operating costs of an oil production company; the case study uses the costs of well maintenance and repair. This methodology features little to no use of expert opinions to make the best and most sound managerial decisions. By finding the correlating indicators of oil fields in the Urals and the Volga Region, the authors apply Microsoft Excel Solver, a simplex-based linear programming solver, to comprehensively identify how the frequency and the average duration of repairs could be reduced. The authors propose organizational measures, adopting which will help optimize the well repair cycle.