Oilwell Placement Solutions in OilyGiant Petroleum Company
The project assigned to me during the ninth sprint involves Machine Learning within the Business domain.
Throughout this sprint, I acquired expertise in identifying essential business metrics, orchestrating A/B testing, employ bootstrapping methodologies, and data annotation.
During this endeavor, I collaborated with a petroleum mining enterprise known as OilyGiant. My responsibilities encompassed the discovery of precise locations for the excavation of new oil wells. In doing so, I engineered a model designed to pinpoint zones yielding the maximum profit margins. I evaluate thoroughly the prospective earnings and associated risks, leveraging bootstrapping techniques.
Through careful observation, I derived several key insights:
- A well must contain a volume of oil exceeding 112 thousand barrels to render its investment financially viable.
- On average, 20 million of the total 100 million data points across the three regions meet the criteria for potential development.
- If the foremost 200 wells in each region are developed, the maximum profit, totaling nearly 40 million USD, will be achieved in Region 1.
- Investing in the top 200 wells across the three regions will ensure profitability to each.
- Region 0 is distinguished by the highest profitability.
- Moreover, Region 0 exhibits the most significant number of points surpassing the threshold of 112.
Following a comprehensive analysis and the creation of the predictive model, a summary of the project is as follows:
The outcome of this project is a predictive model capable of assessing the volume of oil reserves within a well, fostering the optimism that the capital deployed will reap financial benefits. According to the predictions drawn from the model, Region 2 hosts the most abundant average oil reserves. To turn a profit, an oil well must contain at least 112 thousand barrels of oil reserves.
Upon conducting the bootstrapping process, I see that investment in Region 2 harbors a higher degree of risk along with the most modest average income in comparison to the other two regions. Consequently, I advocate for investment in Region 1, as it presents the most favorable balance of minimal risk and maximum profit.