J Roger Hite, Business Fundamentals Group, Kemal Farid, Merrick Systems, Lee Blanton, Business Fudnametnals Group, and other members of the SPE Real Time Optimization Technical Interest Group.

SPE Paper 103248 was prepared for presentation at the 2006 SPE Annual Technology Conference and Exhibition in San Antonio, Texas, 24-27 September, 2006.

It will also be published in the Journal of Petroleum Technology in December, 2006.

Abstract
There seems to be broad support at the leadership levels in most large oil and gas companies for a version of the Digital Oilfield as a strategic direction, but difficulty at the implementation level in building a convincing case for investment. Implementation seems to be slow. Perhaps this is because generating convincing business cases for incremental investments is challenging. This paper is intended to provide practical how-to advice.

Getting acceptance of new computing, automation and communications technology (CACT) in the oil patch is always a challenge – one that begins and ends with a convincing business case. A good business case speaks to decision makers in a language they can understand. It outlines in clear terms the benefits of the investment, its costs and the risks involved. Each needs to be presented clearly, openly and honestly.

This paper focuses on preparing a good business case for investments in CACT in oil and gas production. The applications in mind have to do with real-time operations, smart fields and fields of the future, areas of rapidly emerging technology.

For a complete copy of the paper please visit the SPE library at www.onepetro.org.