Modeling the Economics for Oilfield Construction Projects

Oil and gas companies will face the problem of oilfield construction in the process of production. The economic evaluation for oilfield construction is the premise to ensure the successful implementation of construction projects. The purpose of this paper is to analyze economic evaluation method of oilfield construction project. After comprehensive analysis of the technical measures of oilfield construction, we establish a target economic evaluation model and discuss the parameter determination method in the model; According to the actual conditions of oilfield construction, we must measure how the overall economic benefits are affected by investment timing, we develop an investment timing selection method of the oilfield construction project; Through the application, the economic benefits of oilfield construction can be evaluated by the NPV method and investment timing selection can be combined with the boundary analysis method.