The Importance of Accurate Shrinkage Factors in Commingled Production Systems

In commingled production systems, particularly in offshore and deepwater operations, accurate shrinkage factors are critical for fair and compliant fluid allocation. Even a small error in shrinkage (e.g., 5% on a 60,000 BOPD well) can result in major financial discrepancies. Regulatory bodies like BSEE and the Texas Railroad Commission require precise, data-backed reporting, yet many allocation models still rely on assumptions. GeoMark Research solves this problem by delivering lab-measured certainty through high-resolution PVT and geochemical analysis, eliminating guesswork and aligning production reporting with regulatory standards. 

GeoMark supports the entire Production Measurement and Allocation (PMA) lifecycle with data collected from hundreds of wells in the Gulf of Mexico, all measured in-house. Services include flash separation, live oil viscosity, GC and isotope analysis, and shrinkage factor calibration. This enables customers to validate metered fluids against stock tank volumes, improve accuracy in MPFM 5X5 tables, and build robust, assumption-free allocation models. Whether managing complex infrastructure or onshore assets, GeoMark empowers customers with reliable, regulator-ready data that supports better decisions in reservoir management, revenue distribution, and field development.