In plays with multiple prospects, decision-makers put themselves at a significant disadvantage by using economics on a standalone basis to justify development for each prospect. In the clustered-development approach, the geologic dependence between prospects is combined with the aggregation of prospects to determine the economic viability of a grassroots development offshore. Although easily visualized, economic evaluations of clustered developments typically do not consider the geological dependencies and development synergies that exist. Modeling these synergies has a significant effect on the economic evaluation of developments.
Geologic Dependency
In assessing the economic effect of the dependencies between prospects, breaking the chance of geologic success into a shared element and a local element is mandatory.
