Definition of Decline curve:
A method of estimating production yields from oil and gas wells. Oil production rates fluctuate over time due to reservoir pressures, depletion or down time for maintenance. Exponential, hyperbolic or harmonic Arps equations provide basis for decline curves.
The decline curve is a method for estimating reserves and predicting the rate of oil or gas production. It typically shows the pace at which production is expected to decline over the lifetime of an energy asset. Knowing the decline curve can help a producer estimate the quantity of oil reserves that can come from a well over its lifetime, the present and future value of a well, and the rate at which assets should depreciate on a company’s books. In aggregate, the decline curve can also help determine the rate of production for a total reservoir or even multiple reservoirs..
The decline curve rests is a method used to determine estimated ultimate recovery (EUR) for an oil or gas reserve. This calculation rests on a set of equations that U.S. geologist J.J. Arps developed in 1945. It is of the utmost importance that drilling projects meet an acceptable EUR threshold for a project to be considered viable and profitable.
Meaning of Decline curve & Decline curve Definition