Oil in Mass

World Peep v4.5

December, 2007
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Released December, 2006.
 Contents

About oil in mass ............................................................................................................ 1

Obtaining a Mass View license ...................................................................................................... 1
Changing the mass/volume storage setting ................................................................................... 1
Setting mass view density defaults ................................................................................................ 2
Entering mass opcosts ................................................................................................................... 2
Changing the case storage units.................................................................................................... 2
Using prices in mass ...................................................................................................................... 3
Entering/forecasting mass production and density ........................................................................ 4
Reporting mass and volume data .................................................................................................. 4

How to reach us .............................................................................................................. Error! Bookmark

 Oil in Mass
World Peep v4.5

About oil in mass

This new World Peep functionality allows mass-related and volume-related production, prices,
and opcosts to exist simultaneously in the same case, and to be calculated in the same reports.

Obtaining a Mass View license

You will be unable to use the Oil in Mass features until a Mass View license is granted.
To obtain a Mass View license:
1. Click the Preferences toolbar button, or choose Edit menu > Preferences.
2. Click the Startup tab.
3. Select the request a Mass View license option.
4. Click OK, close Peep, and re-launch the application.
5. If a Mass View license is found and granted to you (i.e., you have permission to use the
license), Peep will launch with full Oil in Mass capabilities, including:
• Mass and Volume icons in the toolbar;
• Mass and Volume options in the right-click shortcut menu in the Price tab of the case;
• Case Production Storage Defaults in the General tab of the model;
• Total Mass and Mass Rate columns are visible in the Oil, Condensate, Butane, Propane,
Ethane, Other, and Water Product tab views;
• Density columns are visible in each of the Product tab views;
• default density settings are available in the Startup tab of Preferences;
• reporting variables for Mass production and rates, in currency/tonne, are visible in the
report variable selection dialog boxes;
• Oil Density and Condensate Density columns are available in the Mthly side tab of the
Data tab in the well document;
• Global Parameters density.

Changing the mass/volume storage setting

The data entered in your cases can be stored in the database in either mass (tonnes) or volume
(volume units) measures. The storage settings you choose in the model determine the default
measure for all production in the case, including scenarios and multiple sales streams.
Note: existing and new models are defaulted to store in volume.
To change the storage settings in the model:
1. Open the model for which you want to change the mass/volume storage setting.
2. Click the Parms tab, General side tab.
3. Click Case Production Storage Defaults. The Case Default Production Storage Settings
dialog box opens.
4. Select the option to store production in mass for each product that should be stored in mass
units (or if you are already storing production in mass and want to switch to volume, clear
each check box).
Note: these settings will apply to new cases only. To change the storage settings for existing
cases, see Changing the case storage units.

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Setting mass view density defaults

1. Choose Edit menu > Preferences, or click the Preferences toolbar button.
2. Click the Startup tab, then the Mass View and Density Settings button. The Mass View
Settings dialog box opens.
3. Type the density value for each of the products that will be displayed in Mass view (the
measure displayed in this dialog box is determined by the Default Unit System selected on
the Startup tab.
4. Select the Volume or Mass option from the Display data as option group.
5. Click OK.
Notes:
• these values are used in new well documents, and in case documents only if no density values
are present in the global parameters document when creating the case, or if no global
parameters document is selected. No values will be overwritten in existing well and case
documents.
• the 6 density values are pre-populated with appropriate default values during the Peep
installation, and can be edited in Preferences, or in the case/well document.
• Water is a hard-coded density of 1, and is uneditable.

Entering mass opcosts

As with any other opcost variable, you have to first create mass-related opcost variables in the
model before you can enter opcost data in the case.
You can set up both mass-related and volume-related variable opcosts for the same product. Each
variable will apply to only the production in the related measure. For example, if your revenue is
calculated when selling to one client using mass measure (tonnes), and in volume when selling to
a second client, the mass-related opcost is calculated using the mass production values; volume-
related opcosts are calculated using the volume production values.
To enter mass-related opcosts:
1. Create mass-related variables in the model, selecting the appropriate [Product name] Mass
products from the Variable (apply to) drop-down list. Other settings can be changed as
required.
2. Create a new case and note that both the volume-related and mass-related variables present in
the model are now columns in the case, with the appropriate measure displayed in the column
header.
3. Modify the existing column headers and/or create new columns based on the volume/mass
variables created in the model.
Note: the mass or volume measure displayed in the column headers will NOT change based on
which toolbar button is selected.

Changing the case storage units

The production units are stored in the database according to the setting selected in the model (see
Defining model parameters (World Peep) in the Peep Help for more information), but only for
cases created after the setting is selected. To change the production units for existing cases, you
have to change the storage settings within the case.
Note: you can only change the production units to bring them in-line with the storage setting in the
model (e.g., if you have chosen to store data in Mass in the model, you cannot use the Product
Explorer to change the case's storage to Volume).

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To change the case production units:

1. Open the World Peep case you want to modify and click the Parms tab > General side tab.
2. Click Product Explorer. The Product Explorer dialog box opens.
3. Click the beside the case name and expand the hierarchy until you can select the product
and related scenario or stream for which you want to modify the production storage settings.
4. Click Change. The Production Storage dialog box opens.
5. Select either Mass or Volume, whichever option is available. If the ratio-related options are
available, you may also select one.
Note: ratios can be stored in volume measures only.
6. Click OK to close the Production Storage dialog box.
7. Repeat steps3-6 for as many of the production scenarios and streams you need to change.
8. Click OK to close the Product Explorer dialog box.
Notes:
• when a ratio is selected for a product, the storage settings is automatically changed to the
Volume measure.
• the storage setting controls how the Mass and Volume values react to changes in density; they
do not control what is visible in the Product tab of the case.

Using prices in mass

The Oil in Mass feature has been seamlessly integrated into the standard price and revenue
calculation functionality of Peep. Revenue is calculated using a simple formula, regardless of
whether the production and price is entered in volume or mass measure.
The calculation of revenue for each product is broken down into three components: Marker,
Offset1, and Offset2. The equation used for the calculation of each of these components is based
on how the price is entered/linked to the case. (e.g., currency/volume unit or currency/tonne):
• for volume-based prices the revenue component is calculated based on production volume.
• for mass-based prices the revenue component is based on production mass.
Product Revenue = (Marker Price * Production) – (Offset1 Price * Production) –
(Offset2 Price * Production)
This formula is able to handle a case where the marker price is in one measure and the offsets in
another, or any other combination of volume and mass measures. If production has been stored in
mass, but volume-based prices have been used, the production is converted to volume in order to
calculate the revenue.
To create mass-related prices in the case:
1. Manually enter the marker and offset prices in the Price tab of the case (either By Product or
By Type).
- OR -
Create and link to a price document as you would for volume-based prices. (See the Peep
Help if you require information about creating and linking prices documents.)
Note: Net Price is always displayed in the measure of the marker price. If offset prices are in a
different measure than the marker price, Net Price is calculated by converting the offsets
(using the density value) into the measure of the marker price and then subtracting the offsets
from the marker.
2. If the prices have been entered manually, right-click on each column and choose the $/Bbl or
$/T to display that column in the desired measure (mass or volume). The toolbar buttons do
not affect how these columns are displayed. If the prices are linked from a price document, or

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through global parameters, the measure displayed in the column header is read in from the
price document.
Price scenarios are created in the same measure as the base scenario.

Entering/forecasting mass production and density

The Oil in Mass functionality relies on the conversion of volume to mass (or vice-versa) based on
the density value (using the formula, Mass = Volume * Density, or Volume = Mass / Density) to
make production data available simultaneously in both volume and mass in the same case.
As with any production forecasting, you can manually-enter mass data in the case, or use mass-
based forecasts from a linked well.
To enter mass production in the case:
1. Click one of the product buttons on the Product tab of the case.
2. Enter data in the Total Mass column for the product. The Mass Rate column is automatically
calculated according to the Total Mass data entered.
- OR -
3. Enter data in the Mass Rate column for the product, and the Total Mass column is
automatically calculated.
To forecast on mass production in the case or well document:
1. Click one of the product buttons on the Product tab of the case.
2. Click Edit next to the Forecast drop-down list (or choose Forecast menu > New or click the
New Forecast toolbar button if you are in the well document). The Edit Forecast dialog box
opens.
3. Set up the forecast as you normally would for volume data, ensuring that the [Product]
Density is provided on the Fit Options tab. Note that the decline parameters are displayed in
mass measures.
4. Calculate the forecast. The volume measure is calculated, and in conjunction with the density
value, the mass production column is populated according to the formula above.
Note: the forecasted density values will overwrite any density values already entered in the case.

Reporting mass and volume data

Columns reports for mass-related production opcosts are no different than those created for
volume-related production and opcosts; in fact, column reports can include both volume and mass
variables.
Note: you have to create the mass variables before they will be available for use in a column
report (see the Peep Help for more information about creating variables).
To create a column report with both mass and volume variables:
1. Create a column report as you normally would to report on volume variables.
2. Select the appropriate mass-related opcost variables you created earlier in this tutorial. These
variables are in the Economic Variables > Opcost I/P and Opcost Result and Production
categories.
3. If you want to report on a price variable in mass measure, edit the report column definition
(see the Peep Help).
4. Add the appropriate density variable, found in the Well Variables List > [Product Name]
Density categories.

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Notes:
• the mass-related opcost variables will also be included in any ALL [Product name] Opcosts
result variables.
• no mass-specific production variables are available in the well document, however,
production variables are reported in volume or mass based on the toolbar selection.
• Cum density values are calculated using the average density to-date weighted on volume
production.

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 Oil in Mass
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