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202                                       Intelligent Digital Oil and Gas Fields


          6.2.1 Single- vs. Multiobjective Optimization
          A mathematicaloptimizationproblem essentially combinesthree components:
          •  objective or cost function,
          •  optimization constraints, and
          •  control variables.
          The objective of optimization is to determine a feasible combination of opti-
          mization (control) variables within the boundaries of defined constraints that
          maximizes or minimizes the objective or cost function of choice.
             Based on the nature of the search for an optimal value of the objective
          function, the optimization problems can be classified as a single- or a mul-
          tiobjective optimization problem. An example of a single-objective optimi-
          zation is finding an extrema, a minimum, or maximum, of a nonlinear
          convex problem, such as a quadratic function. A common oil and gas opti-
          mization problem is (dynamic) model calibration or history matching,
          which seeks a least-square fit of reservoir simulation response to the observed
          or measured data. The misfit objective function Q is represented as (Ferraro
          and Verga, 2009):

                                           n
                                          X    2
                                      Q ¼    R                         (6.1)
                                               i
                                          i¼1
          with R i ¼w i (X m  X o ) i defined as a residual, where X m , X o , and w i corre-
          spond to the model data (reservoir simulation response), observed (mea-
          sured) data (e.g., pressures, fluid rates, gas-oil ratio) and the weighting
          factor, respectively.
             The optimization problem can be approached as a single-objective
          optimization in which an aggregate of all the quantities to be matched are
          grouped into a single, joint objective function, or as a multiobjective
          optimization approach, which usually considers two or more different
          objectives, addressed separately during the optimization process. Mathe-
          matically, the single-objective optimization is defined as (Hutahaean
          et al., 2015)


                               minimizef xðÞ
                                        l
                               subjectto h   x k   h u                 (6.2)
                                        k        k
                               x ¼ x 1 , x 2 , …, x k , …, x N g
                                  f
          where x¼{x 1 ,x 2 ,…,x k ,…,x N } is the vector of the N variables in the
                              l     u
          parameterization and h k and h k , respectively, correspond to the lower and
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