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Quantitative tools link portfolio management with use of technology

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The exploration and production (E and P) business is in the midst of a major transformation from an emphasis on cost-cutting to more diverse portfolio management practices. The industry has found that it is not easy to simultaneously optimize net present value (NPV), return on investment (ROI), and long-term growth. The result has been the adaptation of quantitative business practices that rival their subsurface geological equivalents in sophistication and complexity. The computational tools assess the risk-reward tradeoffs inherent in the upstream linkages between (1) the application of advanced technologies to improve success in exploration and in exploitation (reservoir evaluation, drilling, producing, and delivery to market) and (2) the maximization of both short- and long-term profitability. Exploitation is a critical link to the industry`s E and P profitability, as can be seen from the correlation between earnings growth of the international majors and production growth. The paper discusses the use of tools to optimize exploitation.
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Roger retired as Emeritus Professor and Sr Research Scientist after 42 years at Columbia University's Lamont Doherty Earth Observatory and Earth and Data Science Institutes. Roger has led teams that have developed the next generation of machine learning control systems for smart hydraulic fracturing, 4D seismic reservoir simulation and smart energy management of electricity, water, steam and occupancy tracking for skyscrapers. In 2020, he was elected to the EU Academy of Sciences. Over his research career, Roger brought in more than a Quarter Billion $$ in National Science Foundation, Department of Energy, and Office of Naval Research grants and contracts, including research ship-time, drillship, platform and drilling costs. He also co-founded AKW Analytics, Bell Geospace, 4D Technologies, CALM Energy and vPatch companies. He co-invented 23 patents, with 8 more pending. Software and licenses for these “Computational Learning Systems©” are available from Columbia Technology Ventures https://techventures.columbia.edu/industry/start-licensing-process . Roger has had technical, business, computational, and working collaborations with Baker Hughes, Boeing, BBN, Booz, BP, Shell, Pennzoil, Con Edison, Range Resources, and Western Geophysical, and has run consortiums with many other companies. Roger has been in residence at Baker Hughes, Con Edison Control Centers, Earthquake Research Institute of University of Tokyo, FedEx, Finmeccanica, GE, IBM Research, Kansas Geological Survey, KBR, Lockheed Martin, Rudin Management, Schlumberger, Sinclair, Texas Energy Center, Urban Utility Center of NYC, USGS, University of California Berkeley and University of Hawaii Manoa. Roger has written 44 books, edited 4 others, published more than 750 peer reviewed scientific and engineering papers, and written and produced 15 technical videos. While at Columbia, Roger graduated 9 Ph.D. students, many of whom are now leaders in national scientific and engineering communities like the National Environmental Research Laboratory, University of Illinois, Chicago, the US Geological Survey as well the international business communities like Head of IBM Research Brazil, CNRS Marcelles FR, IT director of the Commodities Trading Floor at Citibank, and Head of Risk Management Software Development for PEMCO. Roger’s team was recently chosen as the winning University Program in General Electric’s Ecomagination Innovation Challenge, winning a $1.2 million prize. While at the Lamont-Doherty Earth Observatory of Columbia, he founded the Borehole Research, Global Basins Research Network, 4-D Seismic Reservoir Simulation, Portfolio Management and Energy Research Groups. Roger has been Chief Scientist or Logging Scientist of more than 30 oceanographic and Deep-Sea Drilling cruises, including in 1979, when he led the first U.S. research ship to visit the Peoples Republic of China in the modern era. The Wall Street Journal recently characterized him as “a computer-imaging pioneer”. However, perhaps his most difficult assignment ever was as “Head of Umpires” at West Side Baseball Little League in Manhattan, NY. Email: anderson@ldeo.columbia.edu Cell: 713-398-7430
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The use of Distributed Electric Energy Storage (DEES) for the real time support and optimization of the electric generation, transmission and distribution (G,T&D) system has been limited to date to pumped hydro, primarily due to a lack of cost-effective options and/or sufficient value bases, as well as actual field experience. Recent developments in advanced energy storage technology, including a number of demonstration and commercial projects, are providing new opportunities to use energy storage in grid stabilization, grid operation support, distribution power quality, and load shifting applications. Our team proposes to characterize the leading DEES markets for New York State, including a projection of the respective capacities and range of values. We will then drill down into the detailed cost, benefit, risk, and uncertainty benefits for use of an exemplary DEES technology, a 10 MW sodium-sulfur (NAS) super-battery in an urban substation in a critical Load Pocket of New York City.
Research Proposal
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