  Closed-loop field development (CLFD) optimization is a comprehensive
framework for optimal development of subsurface resources. CLFD involves three
major steps: 1) optimization of full development plan based on current set of
models, 2) drilling new wells and collecting new spatial and temporal
(production) data, 3) model calibration based on all data. This process is
repeated until the optimal number of wells is drilled. This work introduces an
efficient CLFD implementation for complex systems described by multipoint
geostatistics (MPS). Model calibration is accomplished in two steps:
conditioning to spatial data by a geostatistical simulation method, and
conditioning to production data by optimization-based PCA. A statistical
procedure is presented to assess the performance of CLFD. Methodology is
applied to an oil reservoir example for 25 different true-model cases.
Application of a single-step of CLFD, improved the true NPV in 64%--80% of
cases. The full CLFD procedure (with three steps) improved the true NPV in 96%
of cases, with an average improvement of 37%.
