Application of Machine Learning in Predicting Crude Oil Production Volume

The production of oil is of great and immense significance as a source of energy worldwide. The major factors affecting the production volume of oil is classified into two groups namely the geological and the human factor. Each group comprises of factors affecting oilfield production volume. The challenge in this project is to find the variable for the crude oil production volume in an oilfield because there are numerous factors affecting the crude oil production volume in an oilfield. The objective of this paper is to provide a more accurate and efficient solution on how to predict the oil production volume. Furthermore, Machine Learning algorithm called Multiple Linear Regression was developed using Python programming Language to predict the production volume of oil in an oilfield. The model was developed and fitted to train and test the factors that affect and influence the oil production volume. After a several studies have been made, the affecting factors were provided from the oilfield which would be trained and tested in order to model the relationship between predictor variable and response variable which are the significant affecting factors and the oil production volume respectively. The predictor variables are the startup number of wells, the recovery percent of previous year, the injected water volume of previous year and the oil moisture content of previous year. The predictor variable is the oil production volume. Moreover, the model was found to possess greater utility in predicting the production volume of oil as it yielded an oil production volume output with an accuracy of 98 percent. The relationship between oil production volume and the affecting factors was observed and drawn to a perfect conclusion. This model can be of immense value in the oil and gas industry if implemented because of its ability to predict oilfield output more accurately. It is an invaluable and very efficient model for the oilfield manager and oil production manager.