Browsing by Subject "Net present value"
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Item An analysis on starting up a specific small business(2010-12) Gomez, Juan Leonardo; Lewis, Kyle, 1961-; Duvic, Robert C.A unique business opportunity has been presented to me. I have been invited to create a small business that would initially offer mechanical design services to two main customer segments: automotive and biomedical device companies. My main responsibility is to help frame the small business and act as an investor partner. I will act as a silent partner once the day to day operations begin. My main focus of this paper is to provide practical information to answer many specific questions about starting this small business. A Net Present Value (NPV) and Profitability Index (PI) analysis will help me determine whether the required initial investment capital will be a good investment for all the parties involved. The legal aspect of managing people in a small business with less than 15 employees will be also reviewed. The conclusions from the Human Capital Framework and the main components of a business plan will be used in the future development of an operating procedure. A business structure will be selected as part of this analysis. Finally, the business values and strategic goals that are most important to all participating parties will be mentioned.Item A life cycle optimization approach to hydrocarbon recovery(2010-12) Parra Sanchez, Cristina, 1977-; Lake, Larry W.; Bickel, James E.The objective of reservoir management is to maximize a key performance indicator (net present value in this study) at a minimum cost. A typical approach includes engineering analysis, followed by the economic value of the technical study. In general, operators are inclined to spend more effort on the engineering side to the detriment of the economic area, leading to unbalanced and occasionally suboptimal results. Moreover, most of the optimization methods used for production scheduling focus on a given recovery phase, or medium-term strategy, as opposed to an integrated solution that allocates resources from discovery to field abandonment. This thesis addresses the optimization of a reservoir under both technical and economic constraints. In particular, the method presented introduces a life cycle maximization approach to establish the best exploitation strategy throughout the life of the project. Deterministic studies are combined with stochastic modeling and risk analysis to assess decision making under uncertainty. To demonstrate the validity of the model, this document offers two case studies and the optimal times associated with each recovery phase. In contrast with traditional depletion strategies, where the optimization is done myopically by maximizing the net present value at each recovery phase, our results suggest that time is dramatically reduced when the net present value is optimized globally by maximizing the NPV for the life of the project. Furthermore, the sensitivity analysis proves that the original oil in place and non-engineering parameters such as the price of oil are the most influential variables. The case studies clearly show the greater economic efficiency of this life cycle approach, confirming the potential of this optimization technique for practical reservoir management.