Estimating the economic limit flow rate of an oil well
Abstract
At the on-set of well investment analysis, a well planer is faced with two critical problems: deciding on which price per barrel of oil and breakeven flow rate that the well investment analysis will be based. In this paper we have proposed a method of establishing a risk free price per barrel of oil on which well investment can be based. We have also established a trial and error method that can be reliably used to establish the breakeven flow rate and lifespan of an oil well. The analysis shows a risk free price of 65USD per barrel of oil, a breakeven flow rate of 80,000 barrels and a lifespan of 23 years for the hypothetical oil well.
Fields of Study & Subjects
Capital Investment and Risk Analysis
Mining Techniques and Economics
Reservoir Engineering and Simulation Methods
Publication details
- Journal / source
- Scientia Africana
- Volume
- 24
- Issue
- 6
- Pages
- 61–67
- Publication date
- 16 February 2026
- Language
- EN