Lane, Robert HValko, Peter P2013-12-162017-04-072013-12-162017-04-072013-082013-07-27http://hdl.handle.net/1969.1/151172In this work, we present methodologies for optimization of hydraulic fracturing design under uncertainty specifically with reference to the thick and anisotropic reservoirs in the Lower Tertiary Gulf of Mexico. In this analysis we apply a stochastic programming framework for optimization under uncertainty and apply a utility framework for risk analysis. For a vertical well, we developed a methodology for making the strategic decisions regarding number and dimensions of hydraulic fractures in a high-cost, high-risk offshore development. Uncertainty is associated with the characteristics of the reservoir, the economics of the fracturing cost, and the fracture height growth. The method developed is applicable to vertical wells with multiple, partially penetrating fractures in an anisotropic formation. The method applies the utility framework to account for financial risk. For a horizontal well, we developed a methodology for making the strategic decisions regarding lateral length, number and dimensions of transverse hydraulic fractures in a high-cost, high-risk offshore development, under uncertainty associated with the characteristics of the reservoir. The problem is formulated as a mixed-integer, nonlinear, stochastic program and solved by a tailored Branch and Bound algorithm. The method developed is applicable to partially penetrating horizontal wells with multiple, partially penetrating fractures in an anisotropic formation.enStochastic ProgrammingHydraulic FracturingOffshoreThesis