Using Embedded Economic Models: an Example of the Workflow

Let's suppose you have a project with eight reservoirs (named A through H), and you want to calculate reservoir-level economics. If you didn't have the option to embed economic models,you would be forced to repeat the same set of inputs and calculations for each reservoir. Using economic models instead allows you to define the set of calculations only once and use these calculations in each module by just embedding the model.

We will first create a complete generic module for reservoir economics, and then we will split it into a host module that will contain the inputs, and an embedded module with all the calculations. This way, we won't need to work "blindly", that is, defining calculations without the inputs they refer to.

• Create an econ model containing a module called "Reservoir A Economics". In this module, define all the inputs and calculations you need to perform reservoir economics, using results from reservoir A. You should give all the inputs and calculations generic names, such as "Oil Production" rather than "Reservoir A Oil Production". Make sure that the model is set up correctly and calculates before continuing, and that all the outputs you want to see are included as results.
• Save the model as "Host Model". Then make as copy by using the Save As option in the File Menu. Name the new copy "Embedded Model".
• Now continue working on the "Embedded Model". Delete all input parameters and keep only the calculations. With this, the model will report unresolved references and cannot be calculated anymore, because it now refers to inputs that are no longer there; you can ignore this. Save the model.
• Open the "Host Model". Do the opposite as with the embedded model: delete all calculations in the "Reservoir Economics" module and keep only the inputs. Then select the option to Embed economic model in the Edit Menu or the right-click menu.
• Make seven duplicates of the "Reservoir Economics" module by copying and pasting it using the options in the Edit menu or the right-click menu. Name them "Reservoir B Economics", "Reservoir C Economics", etc.
• Change all the references in the inputs of each new module to match the corresponding reservoir Plan variables and results.

Now the reservoir level of the model is ready. If necessary, you can complete the host model with modules required for project-level calculations.