org/jpt
FEBRUARY 2015
F E B R U A R Y 2 0 1 5 V O L U M E 6 7, N U M B E R 2
OFFSHORE
FACILITIES
DRILLING TECHNOLOGY
WELL TESTING
FORMATION DAMAGE
FEATURES
Feb 15_JPT_Cover.indd 1
1/16/15 7:02 AM
Oilfield Review
slb.com/oilfeldreview
*Mark of Schlumberger. 2015 Schlumberger. Other company, product, and service names are the properties of their respective owners. 14-OR-0008
Volume 67 Number 2
20 G
UESTEDITORIALNEWPRICES,OPPORTUNITIES
INNEXTWAVEOFUNCONVENTIONALRESOURCE
DEVELOPMENT
The precipitous drop in global oil prices has added another key question
to the mix of economic sustainability: At what price do unconventional
plays cease to be economically sustainable? The industry can maximize
profitability by using brainpower rather than horsepower.
40 B
EYONDTHEHEADLINESCANWASTEWATERBE
DISPOSEDOFSAFELY?
49 B
ATTLEFOROILMARkETCONTROLCOULDHAVE
ALASTINGIMPACT
as part of a spar topside sandmanagement system on a dry-treeunit facility in the Kikeh field offshore
Malaysia. Solid-fines production
in this deepwater environment
necessitated the development
of a unique system to optimize
production. Photo courtesy of
eProcess Technologies.
Performance Indices
10
Regional Update
12
Company News
14
Presidents Column
18
Comments
24
Technology Applications
30
Technology Update
44
E&P Notes
133
SPE News
135
People
136
Professional Services
139
Advertisers Index
140
SPE Events
The decline in crude prices was caused by a large oversupply of oil that
could linger. OPEC leaders say they want to squeeze excess production
off the market, but US and Canadian companies are sticking with their
growthplans.
56 LOWOILPRICESMAkEINNOVATIONAPRIORITY
Low oil prices present opportunities for the oil and gas industry to
innovate and strengthen its base in preparation for the next phase of
industry development, panelists said at the International Petroleum
Technology Conference held in Kuala Lumpur.
62 THENEWPATHWAYSOFMULTIPHASEFLOWMODELING
The modeling technology that enabled the industry to safely and
economically build deepwater production facilities is being refined
to address hydrates and other challenges. Programs are also being
created to help design horizontal wells and optimize production from
shaledevelopments.
70 SAUDIARAMCOTAkESASMARTAPPROACH
72 M
ANAGEMENTINDUSTRYNEEDSRE-EDUCATION
INUNCERTAINTYASSESSMENT
The oil price slide has the potential to move industry performance
from below expectations to below profitability. If we do not change the
corporate culture and incentives regarding uncertainty assessment, chronic
underperformance will persist for decades.
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78 Drilling Technology
Mike Weatherl, SPE, Deepwater Consultant, Apache
Rhino RHE
DUAL-REAMER RATHOLE
ELIMINATION SYSTEM
TECHNOLOGY
94 Offshore Facilities
Ian G. Ball, SPE, Technology Adviser and Project Manager, Intecsea
Dual-reamer system
enlarges rathole, avoids
arun, and saves 16 hours
on a deepwater rig.
Unconventional Reservoirs
slb.com/RhinoRHE
The complete SPE technical papers featured in this issue are available
free to SPE members for two months at www.spe.org/jpt.
ASSURING
WELL INTEGRITY
weatherford.com/800
Formation Evaluation
Well Construction
Production
www.spe.org/jpt
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SPE Bookstore
PERFORMANCE INDICES
wORlD CRuDE OIl PRODuCtION+
tHOuSAND BOPD
OP EC
2014 APR
MAY
JUN
JUL
AUG
SEP
Algeria
1420
1420
1420
1420
1420
1420
Angola
1770
1710
1690
1690
1740
1770
560
554
555
558
558
551
Iran
3230
3230
3230
3230
3230
3230
Iraq
3300
3325
3325
3195
3205
3515
Kuwait*
2650
2650
2650
2650
2650
2650
210
230
235
435
530
785
Nigeria
2420
2320
2470
2470
2520
2470
Qatar
1573
1573
1573
1583
1583
1583
Saudi Arabia*
9690
9690
9690
9840
9740
9640
uAE
2820
2820
2820
2820
2820
2820
Venezuela
2300
2300
2300
2300
2300
2300
31943
31822
31958
32191
32296
32734
Ecuador
libya
TOTAL
tHOuSAND BOPD
NON-OPEC
2014 APR
MAY
JUN
JUL
AUG
SEP
Argentina
515
528
530
525
529
540
Australia
340
328
369
356
350
338
837
872
852
845
840
834
Brazil
2146
2189
2246
2267
2326
2358
Canada
3476
3397
3457
3509
3447
3867
China
4132
4181
4259
4084
4118
4175
Colombia
935
950
1008
971
1028
992
Contents
Denmark
163
172
109
159
173
165
Egypt
486
483
480
477
474
471
Eq. Guinea
248
248
248
248
248
248
Gabon
240
240
240
240
240
240
Azerbaijan
Deepwater operations
India
772
761
778
757
728
758
Indonesia
790
800
800
800
800
800
1644
1564
1517
1641
1646
1559
590
587
586
560
562
568
Mexico
2518
2530
2476
2427
2455
2430
Norway
Kazakhstan
Malaysia
1603
1376
1452
1605
1541
1548
Oman
924
936
957
957
953
958
Russia
10083
10083
10095
10003
10056
10079
Sudan
261
260
259
258
257
257
23
23
23
23
23
22
Syria
uK
uSA
820
869
753
706
468
747
8436
8586
8599
8650
8696
8864
Vietnam
301
297
305
288
304
288
Yemen
123
121
127
129
128
126
Other
2459
2480
2582
2517
2537
2527
Total
44865
44862
45106
45003
44927
45760
Total World
76808
76684
77064
77194
77224
78494
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PERFORMANCE INDICES
HENRy Hub GulF COASt NAtuRAl GAS SPOt PRICE*
6
5
Behind
every
winner
is a
great
nomination
4
3
uSD/Mil. btus
NOV
OCT
SEP
AUG
JUL
JUN
MAY
APR
MAR
FEB
2014
JAN
DEC
94.62
108.90
2014 JAN
109.54
107.48
FEB
102.18
111.80
MAY
97.09
100.82
105.79
87.43
SEP
107.76
MAR
106.77
JUN
93.21
100.80
APR
103.59
101.61
JUL
84.40
79.44
OCT
102.07
96.54
AUG
75.79
62.34
NOV
59.29
DEC
Brent
WTI
R EG I O N
2014
JUN
JUL
AUG
SEP
OCT
NOV
DEC
uS
1861
1876
1904
1930
1925
1925
1882
Canada
240
350
399
406
424
421
375
latin America
398
407
410
402
393
375
369
Europe
147
153
143
148
148
149
148
Middle East
425
432
406
396
390
403
403
Africa
123
137
125
117
125
142
138
Asia Pacific
251
253
255
260
252
255
255
3445
3608
3642
3659
3657
3670
3578
TOTAL
2013
2014
4th
1st
2nd
3rd
SUPPLY
90.79
90.94
91.56
92.27
DEMAND
91.29
90.25
90.86
92.35
Quarter
INDICES KEY
+
*
EXplORATiOn &
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REGIONAL UPDATE
AFRICA
Eni finished a production test on its
Minsala Marine 1 NFW well, located in
Marine XII block, 35 km offshore The
Republic of the Congo. During the test,
the well delivered natural flow in excess
of 5,000 B/D of 41 API crude and
14MMcf/D of natural gas from a 37-m
opened section of the discoverys 420-m
column. Eni (65%) is operator, with stateowned partner SNPC (25%), and New Age
(African Global Energy) Limited (10%).
ASIA
CNOOC started natural gas production
from the Panyu 34-1/35-1/35-2 project at
the Pearl River Mouth basin in the South
China Sea. Main production facilities
for the three gas fields include one
comprehensive platform, two sets of
underwater production systems, and 13
producing wells. Two wells are producing
a total of 21 MMcf/D of gas. The project
is expected to reach peak production of
150 MMcf/D. CNOOC is operator and holds
100% interest.
AuStRALIA
Santos discovered wet gas at its
Varanus South-1 well on PEL 513 of
Australias Cooper basin. The well was
drilled to a total depth of 3154 m, and
after preliminary interpretation of wireline
logs was found to contain an aggregate
best estimate of 18 m of net gas pay over a
gross interval of 365 m in the Patchawarra
formation. An additional net 9 m of
hydrocarbon pay was detected in the
Tirrawarra formation over a gross interval
of 37 m. Santos (60%) is the operator with
partner Drillsearch (40%).
10
EuROPE
Palomar Natural Resources spudded
the Rawciz-12 appraisal well in Polands
southern Permian basin, in the Rawciz
concession. The well is targeting a
natural gas accumulation in the Permian
Rotliegendes sandstones and will be
drilled to a total depth of 1900 m. Palomar
(65%) operates the concession with
partner San Leon Energy (35%).
MIDDLE EASt
Marathon Oil KDVa wholly owned
subsidiary of Marathon Oildiscovered
multiple stacked oil- and gas-producing
zones at its Jisk-1 exploration well in the
Harir block of Iraqs Kurdistan region. The
well reached a total depth of 15,000ft
and encountered Jurassic and Triassic
reservoirs. Drillstem testing yielded
6,100B/D of oil and nonassociated gas
flowing at a rate of 1015 MMcf/D. The well
was cased and suspended as a potential
producer. Marathon (45%) operates the
block with partners total (35%) and the
Kurdistan Regional Government (20%).
NORtH AMERICA
Cuttings from Linc Energys Pata
1 exploration welllocated in Alaskas
Arckaringa basinshowed evidence
SOutH AMERICA
Karoon Gas Australia detected
five separate oil-bearing zones at
its Kangaroo-2 well, offshore Brazil
in the Santos basin. Pay zones were
encounteredin Paleocene- and
Maastrichtian-aged formations, each
witha separate oil/water contact. The
gross oil column totals 250 m with no
gascap. Karoon will conduct wireline
logging and drill a possible sidetrack for
coring, depending on log results. Karoon
(65%) is operator of block S-M-1165 with
partner Pacific Rubiales(35%).
Vessel-based means
40 50% savings
on deepwater interventions.
www.fmctechnologies.com
COMPANY NEWS
MERGERS AND ACQUISITIONS
Bellatrix Exploration acquired assets
inthe Alder Flats area of west central
Alberta, Canada, from an unnamed
producer for approximately USD 118
million in cash. The acquisition increases
the buyers output by approximately
2,200BOEPD (80% natural gas, 20%
liquids). The transaction increases Bellatrixs
net working interest within the Mannville
formation by 57.3% (to approximately
96.9%) over 10 grosssections.
COMPANy MOvES
Oil and gas safety company Secorp
opened a new office in Hobbs, New Mexico.
The location will offer a wide range of
services, including H2S protection, gas
detection, confined space and highangle rescue equipment, fall protection,
emergency shower trailers, cooling trailers,
and safety training seminars. The office
will allow for dispatch of rapid-response
teams to clients operating in the northern
PermianBasin.
12
CONTRACTS
Electromagnetic Geoservices
BP awarded a USD-750-million
contractto Wood Group PSN for
delivery of engineering, procurement,
and construction services to six UK
continental shelf offshore upstream assets
and the Forties Pipeline System onshore
midstream facilities in Grangemouth, UK.
The contract includes options for two,
one-yearextensions.
Mangrove
slb.com/Mangrove
ENERGY 360
2015 President
Helge Hove Haldorsen, Statoil
2014 President
Jeff Spath, Schlumberger
2016 President
Nathan Meehan, Baker Hughes
Vice President Finance
Janeen Judah, Chevron
REGIONAL DIRECTORS
AFRICA
Anthony Ogunkoya,
TBFF Upstream Oil and Gas Consulting
CANADIAN
Darcy Spady, Sanjel
EAStERN NORtH AMERICA
Bob Garland, Tetra Technologies
GulF COASt NORtH AMERICA
Bryant Mueller, Halliburton
MID-CONtINENt NORtH AMERICA
Michael tunstall, Halliburton
MIDDlE EASt
Fareed Abdulla, Abu Dhabi Co. Onshore Oil Opn
NORtH SEA
Carlos Chalbaud, GDF Suez E&P UK
NORtHERN ASIA PACIFIC
Ron Morris, Roc Oil (Bohai)/Roc Oil (China)
ROCky MOuNtAIN NORtH AMERICA
Mike Eberhard, Anadarko Petroleum
RuSSIA AND tHE CASPIAN
Anton Ablaev, Schlumberger
SOutH AMERICA AND CARIBBEAN
Anelise Quintao lara, Petrobras
SOutH ASIA
John Hoppe, Shell
SOutH, CENtRAl, AND EASt EuROPE
Matthias Meister, Baker Hughes
SOutHERN ASIA PACIFIC
Salis Aprilian, PT Pertamina
SOutHwEStERN NORtH AMERICA
libby Einhorn, Concho Oil & Gas
wEStERN NORtH AMERICA
tom walsh, Petrotechnical Resources of Alaska
TECHNICAL DIRECTORS
DRIllING AND COMPlEtIONS
David Curry, Baker Hughes
HEAltH, SAFEty, SECuRIty, ENVIRONMENt,
AND SOCIAl RESPONSIBIlIty
trey Shaffer, Environmental Resources Management
MANAGEMENt AND INFORMAtION
J.C. Cunha, Chevron
PRODuCtION AND OPERAtIONS
Shauna Noonan, ConocoPhillips
PROJECtS, FACIlItIES, AND CONStRuCtION
Howard Duhon, Gibson Applied Tech PF&C
RESERVOIR DESCRIPtION AND DyNAMICS
Olivier Houz, KAPPA Engineering
AT-LARGE DIRECTORS
khaled Al-Buraik, Saudi Aramco
14
schedule, cost, production, reserves, and similar) actually resembling actuals. The industry needs better integrators or people with a good understanding and links to all parts of the business, thus making them understand the totality of the challenge
and opportunity. SPEs recent Leadership Academy is an early
response to this need. Further, if a persons competence profile
is a T and the stem of the T is a members core professional or
discipline competence, the IAC would like to see SPE increasingly help members develop the bar of the T, which represents
the various key nontechnical skills in the E&P industry, such as
HSSE-SR, project management, teamwork, decision analysis
and great communication skills.
The IAC appreciates the Societys continued focus on quality in everything we do and pointed out that growth does not always have to be our goal.
One particular area in which the IAC would like to see SPEs
role grow is public awareness: communicating facts about our industry to the public. While all agree that SPE should not be a lobbying organization, there are valuable things that SPE can do. As
regulation and government action are driven by public opinion,
the IAC suggested that a top priority for SPEs 143,000 members,
wherever they live, is to become E&P ambassadors. The Society
should provide its membership with clear, simple, factual, and
science-based messages to share with the public along the lines
of: This is how we help supply energy to 7.2 billion people every
day in a sustainable manner. We are a key part of the solution,
not the problem, and we are very proud of our achievements.
As the worlds population grows to 9 billion by 2040, all of the
above energy sources will be needed to supply the world with
the energy required (including the 1.3 billion people today without electricity) in a sustainable and affordable manner.
The final IAC recommendation was for SPE to really prioritize YPs as they are the future of the industry. Later, during
ATCE week in Amsterdam, we did just that.
Expanding our work on public awareness was part of
SPEs Strategic Plan (http://www.spe.org/about/strategicplan.
php). We already have launched a hydraulic fracturing website
with nontechnical information (http://www.energy4me.org/
hydraulicfracturing/), introduced a Beyond the Headlines
column in JPT, and are working on developing additional materials to equip our members to help us in educating the public.
On 30 October, following ATCE, a small group of Board and
staff members had the opportunity to meet with a very different constituency: a group of 22 YPs from around the globe. Recognizing that most of our Board members have been in the industry for 20 years or more, we wanted to get the views of YPs
on what they would like to see in SPE 2.0: The SPE of the Future.
We structured the days activities as an innovation event,
gathering ideas around things that SPE can or should do to address future trends and respond to the needs of our next generation energy professionals. During the first portion of the day,
the participants quickly generated nearly 300 individual ideas
for new SPE programs and services, and changes to existing
ones. Next, the participants looked for common themes among
the ideas and began focusing on the most valuable changes that
SPE could make from the viewpoint of YPs.
The group selected five areas it fleshed out in greater detail. They are:
Personalization (SPE4Me). YPs want a much more
personalized experience on the SPE website and in
communications that are tailored to their specific
interests and giving them a greater control over the
process.
Volunteerism. By better articulating volunteer
opportunities and recognizing those who do, SPE will
grow and be enhanced and gain company support for
members who want to volunteer. There was a clear
sentiment that SPE can better explain and convey
the amazing value proposition inherent in an SPE
membership, especially in the direction of potential
SPE members with nonpetroleum engineering
background in the geosciences, financial analysis, risk
analysis, project management, and HSSE-SR areas. In
the process, SPE could be creating a bigger tent and
create more cross-discipline collaboration as stressed
by the IAC.
Member Engagement and Loyalty. Concepts around
engaging our members throughout their career journey
from student through retirement and beyond.
Skill Development. To help YPs develop their skills, SPE
should offer nontechnical skill courses and technical
training. Competency management and assessment
(such as the new system launched at ATCE) is a valuable
resource to help YPs take charge of their own career.
Gender and Diversity. YPs perceive a gap in the
treatment of women, particularly those with children,
in the industry. The group worked on defining what
SPE could do with networking and other approaches to
support them.
SPEs Board committees will be taking the input received
during the YP innovation session and determine how we can
implement suggestions. In many cases, we can tweak an existing program. For those that require new initiatives, we will need
to evaluate how they fit with the other suite of possible programs and services that SPE could provide.
When asked about the challenges facing SPE and the industry in the next 5 to 10 years, YPs were a bit more attuned to
social media and the possibilities that new technology and increased connectivity offers (leading to new business models for
old businesses such as Uber and airbnb) than Board members
and the IAC might be. Generally, however, their major concerns
mirror those of others in the industry, such as:
Oil price instability
Rising development costs and the high break-even of
new barrels
Sufficiently rapid dissemination of tools, technology,
experience, and best practice
15
ENERGY 360
The competitiveness of oil and gas vs. other energy
sources
Generational shifts (the big crew change)
Regulations on carbon emissions
Maintaining quality and avoiding SPE mission creep
(SPE cannot be everything to everyone)
Operating safely, responsibly, and sustainably
The publics view of the industry and maintaining
the publics trust through strong, local stakeholder
engagement
SPEs Board welcomes the input of the membership as we
fulfill our obligations to determine how SPE should constantly
renew and adapt to stay fit in the view of its members and the
industry by allocating its available resources to programs and
services that will benefit them. We will systematically be reviewing our portfolio of offerings with a critical eye to member bang
for the buck while listening loudly for your input. When the famous Canadian hockey player Wayne Gretzky was asked why he
was so good he said, Because I go to where the puck is going to
be before it goes there. Henry Ford said, If I asked people what
they wanted, they would have said a faster horse. While SPE is
coming up with incrementally faster horses, we also need to
look for cars that can radically improve the SPE value proposition for our members utilizing the e-latest and e-greatest to better and more quickly and more precisely inform, communicate,
innovate, form arenas, networks and special interest groups.
As I write this column in January 2015, I believe we may
have a new normal both short and long term in the E&P industry. Brent and West Texas Intermediate oil prices are now at
or below USD 50/bbl (more than 50% less than the June 2014
price) and most analysts forecast that the oil oversupply situation (currently around 1.82 million BOEPD) could last for quite
a while and that oil prices as a consequence could stay lowish
most of 2015 and into 2016 as cutbacks and drilling and natural
decline reduce supply. Further barring geopolitical mega events
affecting oil supply, they do not see us returning to a USD100
125/bbl oil price band anytime soon. This outlook spells a need
for serious adaptation, creative deconstruction and cost reductions across the board for a margin business like E&P. Activist
SPE MISSION
SPE VISION
16
investors say that E&P should stop thinking they are so specialyou should think of yourself as safely manufacturing oil
and gas in a low-cost manner, learning supply chain from other
manufacturing businesses. They also suggest we X-ray our companies for bad or nice to have costs (in departments we do not
really need) and become more competitive by cutting. CERA
Week 2014 concluded that 100 is the new 20 and now analysts see us having to make a satisfactory return for investors
with only USD 7580/bbl being the new 20. Remember though,
that the best cure for a low oil price is a low oil priceso we are
already taking the medicine. While I certainly cannot and will
not predict what oil prices will be as you read this in February
2015, I do believe it is important to discuss how SPE is addressing the low oil price situation. We will be listening loudly for
your input.
Last August, when prices were still above USD 100/bbl,
SPEs staff leadership team undertook a planning exercise on
how to respond should oil prices fall to USD 65/bbl. At the time,
no one knew how imminent such a situation might be. As the
staff team considered how lower oil prices would affect SPEs
business (e.g., reduced number of exhibits, fewer sponsorships,
less advertising, and reduced meeting attendance), it also proposed principles to guide SPEs reaction to a short-term (1- to
2-year) price drop:
We are here to serve the industry and our members,
whether the industry is doing well or not.
We are more concerned about helping our members
than preserving revenue or profit.
We will explore growth opportunities that may be
presented by a downturn (such as purchasing an event
from a commercial provider).
We will position ourselves for the recovery by taking
a long-term view, while also preparing in case the
downturn is prolonged.
SPE has healthy financial reserves that allow us to take a
long-term view. SPE staff and the SPE Board will be scrutinizing and prioritizing SPEs budget for its fiscal year 2016 (1 April
201531 March 2016). We believe that we do not have to take
immediate drastic actions beyond showing much more fiscal
discipline and restraint. I am pleased to be leading an organization that can establish guiding principles like those above, and
I know that SPE will be able to continue delivering value to its
members even if oil prices remain low for a while.
In my book, the best response to a downturn is to attend SPE
arenas to get fresh innovative ideas for boosting revenues and
smartly reducing bad costs rather than building a moat around
your company and staying away from all the good ideas you could
capture, adapt, and apply at home. Ask: Can we afford not to go
(and miss out on all the good ideas) rather than can we afford to
go! Just one great idea from an SPE meeting can mean millions
on the bottom line of your company when implemented at home.
For my part, the key is to continue to listen loudly to our members and the industry we serve, since we are in thistogether. JPT
TWO MILLION
CHALLENGING FEET
The AST is being used in an increasing number of applications:
STRINGERS
ENLARGEMENT
Contact us:
Aberdeen:
Houston:
Stavanger:
Rio de Janeiro:
PERFORMANCE INTERVENTION
Depth (ft)
6000
Agressive/Unlimited bit
8500
Conventional bits
10 000
11 500
13 000
14 500
5
ROUGH SEAS
10
Time (days)
15
20
COMMENTS
EDITORIAL COMMITTEE
Syed AliChairperson, Technical Advisor,
Schlumberger
WELL INTERVENTION
UNCONVENTIONALS
MATURE FIELDS
SUBSURFACE INSIGHT
THROUGH COIL
Make booth 711 at the Coiled Tubing & Well Intervention Conference and Exhibition
your key stop for insights, input, and information. Halliburton Production Solutions,
an acknowledged industry leader in well intervention, will be showing how their
CoilComm SM Service provides real-time ber optic depth, pressure, and temperature data
from inside and outside the coil to optimize treatments and decrease the number of runs.
Plus, hear how greater efciencies and safer land operations can be achieved with
Halliburtons next-generation Enhanced QuikRig Coiled Tubing System.
See display models and engage with our team at Booth 711, March 24 and 25 at
The Woodlands Conference Center, Woodlands Tx.
Solving challenges.
GUEST EDITORIAL
Hans-Christian
Freitag is vice
president of
integrated technology
in the Global Products
and Services
division at Baker
Hughes. He joined
Atlas Wireline Services in 1989 and has
worked in operations, geoscience, and
management positions around the world.
In 2002, he moved to Baker Hughes
INTEQ and oversaw the development and
market introduction of advanced logging
while drilling technology. From 2005 to
2008 he was responsible for formation
evaluation in North America. From 2008
to the end of 2013 he held a number
of senior and executive management
positions with Baker Hughes in the
Middle East and Asia Pacific. Before
assuming his current role, he was
vice president for the Unconventional
Resources Business Unit for the Eastern
Hemisphere. Freitag holds an MSc
degree in geophysics and a BSc degree
in physics from Technische Universitt
Berlin and Technische Universitt
Clausthal in Germany.
20
A few months ago, discussions about sustainability in the oil and gas industry focused
on the environmental effects of shale oil and gas development. While technology had
enabled the first wave of the unconventional resource revolution that swept North
America and propelled it toward energy independence, concerns about the usage of
water and chemicals and the environmental effect of large numbers of wells signaled
the need for new thinking to address these concerns.
How quickly times have changed! While safety and environmental sustainability remain at the top of operational considerations, the precipitous drop in global oil
prices has added another key question to the mix: At what price do unconventional
plays cease to be economically sustainable? Basin-related, break-even prices are now
top agenda items at planning and budgeting meetings. No longer are we discussing
efficient well delivery, improving completion effectiveness and fracturing designs, and
increasing estimated ultimate recovery as changes we should make. These are changes we now must make to boost production, ensure sustainable cash flow, and increase
booked reserves during the next wave of unconventional resource development.
The high oil prices of the past several years shielded the industry from inefficiencies that were built in to the first wave of unconventional development. Of the hundreds of thousands of shale wells that have been drilled and hydraulically fractured,
many have been significantly less productive than expected, delivering typical recovery factors below 10%. Despite these less-than-optimal recovery factors, efficiency
remained our industrys key focus of innovation in the unconventional plays. In fact,
factory drilling of a large number of wells and geometric fracturing along the lateral continues to represent the most popular approach to developing unconventional
assets. But with oil prices below USD 50/bbl, is drilling and stimulating more wells
at lower cost really the solution for long-term economic sustainability of unconventional plays?
As an industry, it is critical that we start thinking about these unconventional
assets differently. Large numbers of unconventional wells drilled in the past 5 to 7
years are now reaching the low end of the production curve and are ripe for rejuvenation. And the industry has already seen some positive results from rejuvenation efforts
including wellbore cleanup, installation of artificial lift, and restimulation. Many of
these projects have been effective at generating production rates that equal or even
exceed the wells initial production with less rapid decline rates.
But we can still do better. By using brainpower rather than horsepower.
Embracing an approach to unconventional rejuvenation that is grounded in
science and fact will let us drive production and efficiency simultaneously. The key
is developing a workflow that creates value through enhanced understanding of the
reservoir rock and the reasons behind poor well performance, and then executing on
thatworkflow.
With thousands of potential rejuvenation candidates in North America, we must
be able to rapidly and reliably identify the wells with the greatest production potential; diagnose each individual wells condition and specific rejuvenation needs; and
GUEST EDITORIAL
then prescribe and deliver the rejuvenation treatment efficiently and effectively to achieve the highest possible return
oninvestment.
22
Fracture with
Fresh Water
Visit us at the
SPE Hydraulic Fracturing
Technology Conference
at Booth #301
Formation Evaluation
Well Construction
Production
TECHNOLOGY APPLICATIONS
Chris Carpenter, JPT Technology Editor
Fluid-Control Valve
Flowrox introduced its slurry-knife-gate
product designed to enhance current
pipeline equipment and processes. The
new SKW (slurry knife wafer) valve was
developed for use where abrasive or corrosive slurries, powders, or coarse substances are processed. The main benefit of its full-bore design is that the
SKW valve itself becomes an integral
part of the pipe and allows it to process the same fluids in the harshest of
conditions. In addition to its strength
and resistance to aggressive slurries,
the SKW valve is designed as a full-port
fluid-control device that allows a moreefficient process, requiring less pumping
energy to operate. The SKW valve features a cast single-piece body that eliminates any potential leak paths from the
body and offers a versatile tower construction that will accept manual, electric, hydraulic, or pneumatic forms of
actuation (Fig. 1). When in the open position, the SKW valves rubber ring sleeves
are the only parts in contact with the
medium, as a way to reduce any potential corrosion or deterioration caused by
wear and tear from even the most abrasive slurries. The valve also features loaddistribution rings embedded into the
rubber ring sleeves, a feature that avoids
situations in which tight piping tolerances have caused the compression and
destruction of rubber sleeves.
For additional information, visit
www.flowrox.com.
24
Compliance-RequirementManagement Software
Designed and developed to eliminate
wide-ranging compliance-management
failures, ACS Engineerings Matrics
regulatory-management system offers
ease of learning, reduced workload, simplified user training, and streamlined
production efforts. The software uses a
simple system of implementation and
maintenance and addresses key sitespecific requirements such as air, water,
waste, and safety (including ongoing system maintenance) for a fixed monthly
fee with no added charges. Additionally, besides covering all typical scheduled
tasks, Matrics electronic functionality
includes unscheduled tasks that have
caused violations when not physically
checked. Submittal requirements accompany each specific task enumerated by the
software, eliminating guesswork about
processes. Converting requirements into
easily monitored action items can be performed easily by individually marking
Task or Checklist in the Matrics system.
TECHNOLOGY APPLICATIONS
The software keeps all requirements current, tracking changes daily and autoupdating new requirements, including
new wording, task revisions, and current
frequency. The scope of these updates
includes not only permits, plans, manuals, and contracts, but any items sometimes overlooked manually.
For additional information, visit
www.acsengineering.com.
Spill-Containment System
As regulations for spill management grow
increasingly stringent, oil and gas operators require new technologies that will
reduce contamination risks, improve onsite safety, and minimize overall project
costs. Newpark Mats and Integrated Services (NMIS) introduced the DURA-BASE
DEFENDER linerless spill-containment
system. The new system provides drilling
and completion crews with a faster and
more efficient way of achieving total site
containment of spills, adhering to environmental requirements while reducing
overall costs of operation. The DEFENDER system incorporates NMIS DURABASE mats into a fully integrated structure for total site containment (Fig.3). As
an all-in-one solution, DEFENDER protects the environment while eliminating the operator costs associated with
transport, repair, and disposal of liners.
The system features NMISs DX4 sealing
technology, a key component designed to
keep spills in check, limiting them to the
surface of mats for fast and easy cleanup. The DEFENDER systems enhanced
cellar-protection system, coupled with
DX4 sealing technology, reinforces the
critical cellar region with a third layer
of security. The proprietary cellarprotection system is custom-fitted for
any cellar, on any site. The fully inte-
High-Performance Motor
Scientific Drilling International (SDI) introduced the TiTAN22 high-performancemotor solution. The TiTAN22 is engineered to support the most demanding
drilling environments while delivering
reliability and durability across a wide
range of applications. The motor design
features SDIs Ti-Flex titanium flex
shaft, and supports the highest torque
power sections and highly robust bearing assemblies, providing optimal drilling performance in all sections of the
well (Fig. 4). The TiTAN22 delivers confidence and reliability through enhanced
weight-on-bit capacity for increased
rate of penetration, a rugged driveline
Power Section
Conductor-CementingSupport System
It has become increasingly common for
operators to install a jacket and batch
set the platform conductors so that the
topside can be installed at a later date.
The operator brings a rig over the jacket
and uses it to run a conductor and then
to hold the conductor in place while the
cement cures. Claxton Engineering Services has developed a new conductorcementing-support system (CCSS) that
has typically saved 12 to 18 hours of rig
Bearing Assembly
Ti-Flex
Titanium Flex Shaft
26
Breaking with
Conventional Practise
InterFrac
Provision of reservoir engineering:
- ensuring pin point fracturing design
- optimum production performance
Interventionless frac sleeve:
- improved reservoir recovery
- accelerated production
- operational efciency
- reduced well count
www.interwell.com
TECHNOLOGY APPLICATIONS
time per conductor waiting for cement
to cure. The Claxton CCSS secures the
conductor with a hydraulic jack-andclamp mechanism that holds the weight
of the conductor while the cement cures
(Fig.5). This means that the rig no longer has to hold each conductor and can
therefore move to the next slot and begin
running another conductor. The CCSS
has a holding capacity of 135160 t and is
suitable for conductor diameters of 24 to
30 in. However, the design can be scaled
to any conductor size on request and the
footprint and weight-handling capacity
tailored to specific slot or jacket configurations. The new system has a compact
design and can be repositioned easily
without a crane.
Fig. 5Claxtons CCSS saves rig time for operators and features custom-design
capabilities for size, footprint, and weight-handling capacity.
Fig. 6The STEP-ARM rotational mast from STEP Energy Services allows the
servicing of multiple wells without the need to move equipment.
28
FRACMAX
The power of CnF
right at your fngertips
Flush-Joint Elevator
The Weatherford flush-joint elevator (FJE)
uses four slipstwo hydraulically actuated slips and two passive slipsto clamp
onto joints as they come into the veedoor. As each joint arrives at the vee-door,
rig personnel lift and secure the elevator
around the joint by triggering the actuated slips. The elevator then lifts the joint to
the derrick by topdrive, where it is made
up to the string. Once the joint is threaded
securely, the slips are deactivated and the
elevator can be opened easily to release
the joint and move on to the next section. Although this tool is similar in use
to a single-joint elevator, the FJE has additional capabilities. It enables operators to
run flush joints without threading lift nubbins in and out. The FJE also can be used
on strings with a mixture of standard and
flush joints, which helps operators avoid
switching between two elevators when
running in and out. By eliminating the
need for lift nubbins, the FJE enables rig
personnel to make up and run flush joints
as if they were standard-drillpipejoints.
For additional information, visit
www.weatherford.com.
Hydraulic-Pumping System
The maintenance challenges associated
with pumping large volumes of proppant
at high pressures and rates are anaccepted part of day-to-day operations. Energy Recovery introduced the VorTeq
hydraulic-pumping system, engineered
to increase run time and reduce maintenance costs by rerouting abrasive
fracturing fluid away from existing
hydraulic-fracturing pumps. VorTeq
reroutes proppant-filled fluid away
from high-pressure pumps on fracturing sites so these pumps process only
fresh water and therefore last significantly longer. VorTeq channels the
abrasive fluids and sends them down
the wellbore. The core of the VorTeq
system is Energy Recoverys pressureexchanger technology, which is already
in use in more than 15,000 desalination installations worldwide. The system handles up to 110 bbl/min, with a
treating pressure up to 15,000 psi.
The system is designed with only one
moving part, and made from tungsten
carbide, which is 1,000 times more
abrasion-resistant than steel (Fig. 7).
With VorTeq, hydraulic-horsepower
pumps will not be exposed to the
abrasive-slurry mixture of proppant
and water, the source of most maintenanceissues. JPT
For additional information, visit
www.energyrecovery.com.
www.ftkfracmax.com
713.849.9911
TECHNOLOGY UPDATE
30
ing backpressure to increase the wellbore pressure profile is to close the blowout preventer (BOP). Consequently, the
primary well-control barrier is limited
to the hydrostatic pressure applied to
exposed formations.
The root concepts of the hydraulics
of conventional drilling were founded in
the Spindletop field in Beaumont, Texas,
circa 1901. The Spindletop gushers
were initially a time of celebration. However, resulting wasted resources, fires,
and lawsuits prompted a need to drill
into the reservoir without experiencing
a blowout. The solution was to drill with
weighted fluids, literally mud from a cattle pond at the time. Although drilling
fluids technology has come a long way,
conventional offshore drilling programs
still view the hydraulics of the circulating
fluids system essentially the same way
and we still commonly refer to drilling
fluid as mud.
The root concepts of managedpressure drilling (MPD) offer an alternative with several variations, each applicable to different types of challenges to
conventional drilling methods. They are
Constant bottomhole pressure
(CBHP) for drilling in narrow,
shifting, and/or relatively
unknown downhole pressure
environments
o Applied surface backpressure
with rotating control device
(RCD) and choke
o Continuous circulation
devices for maintaining
circulation during
connections
Pressurized mud cap drilling
(PMCD) for drilling in the
Offshore MPD
A state-of-the-art kit for practicing these
variations of MPD incorporates drillstring nonreturn valves, a programmable logic controlled (PLC) automatic choke system, and RCD designs that
enable a closed and pressurizable system on all types of offshore rigs. EMW
is maintained at a level greater than formation pressure by using a combination
of mud weight hydrostatic head pressure, circulating annular friction pressure, and surface backpressure. EMW,
rather than hydrostatic head pressure
alone, may be viewed as the primary
well-controlbarrier.
Beyond MPDs namesake of drilling in challenging downhole pressure environments to deeper depths,
including wells previously considered
undrillable, its practical operational
capabilities have grown to include an
impressive suite of drilling hazard mit-
suite results
TECHNOLOGY UPDATE
Fig. 1A sample screen shot is used to validate calculated vs. measured friction losses for surface equipment on a
deepwater well, right, being drilled with managed-pressure methods. Image courtesy of Weatherford.
32
Managed-pressure wellbore
strengthening
Mitigating the risk of a kick
advancing past the subsea BOP
into the riser on a deepwater rig
Facilitating the hazard
identification/hazard and
operability process with a wellspecific MPD operations matrix,
clearly defining the operational
limits and the point at which to
revert to conventional secondary
well control
This technology provides better control over the wellbores pressure profile and is progressing toward
standard procedure on challenging offshore wells in which the need to increase
recoverable reserves and operational safety is paramount. This is particularly true in deepwater and ultradeepwater. Nevertheless, the experience to
date has identified opportunities to further enhance PLC automated choke system softwarecapabilities.
CM
MY
CY
CMY
TECHNOLOGY UPDATE
Fig. 2The continuous flow system offers wellbore protection and control in
challenging environments by means of a perpetual circulation of drilling fluids.
Image courtesy of Weatherford.
and drag, the system displays the information from different perspectives and
aids in understanding the real operational limits. Where prior systems have
focused on drilling hydraulics, this new
capability includes kick tolerance calculations updated at will, identification of
the weakest link in the circulating fluids
system, and suggestion of the most applicable well-control actions.
For example, although early kick
detection has been a hallmark capability of drilling with a state-of-the-art MPD
34
EW
ing risks such as a shallow gas kick reaching the rig floor before the crew has time
(detection plus reaction) to implement
well-control procedures.
On floating rigs, a gyro accelerometer is added to measure rig heave
magnitude and frequency. The data from
these measurements calibrate flowmeter
output for heave swab/surge, enabling
the detection of kicks or losses of much
smaller quantities than the significant pit
gain that may be otherwise required. This
potentially can reduce the frequency of
false positive kick alarms.
Conclusion
A decade ago, most operators offshore
business units practiced MPD for the first
time on prospects thought or known to
be undrillable for safety, economic, and/
or technical reasons with a conventional circulating fluids system. The CBHP
and PMCD variations of MPD were mostly used to handle the types of drilling
hazards that each addresses, thereby
increasing recoverable reserves in the
process. To date, there have been no
reportable well-control incidents on such
challenging wells attributed to the technology itself or the failure of its specialized equipment.
Today, the technology is applied to
optimize operations safety and efficiency
on prospects that could be drilled with
conventional open-to-atmosphere systems. Where CBHP and PMCD variations
have been applied for drillability reasons,
it is anticipated that the RFC-HSE variation will see broader global application
in the future because it can more precisely manage the wellbore pressure profile on otherwise conventional fluid and
well construction programs. Early kick
detection and the associated benefit of
reducing the frequency of false positive
kick alarms will likely be primary drivers
for future applications of this variation
ofMPD.JPT
TECHNOLOGY UPDATE
36
directional drillers to maximize tool performance by increasing motor differential pressure. In some cases, operators
have increased the motor differential by
up to 1.5 times in a slide section, resulting in a near doubling of the rate of penetration (ROP).
The bit was initially tested in the
Wolfcamp formation of the Permian
Basin in Texas. Its use has since expanded to multiple basins across North America. To date, there have been 154 runs in
five basins, and operators continue to
expand and push the boundaries for the
use of these bits.
Field Experience
Jason
FREE
30-day evaluation
cgg.com/powerlogfrac
14AD-GJ-632-V2 PowerLog_Frac_JPT_Feb.indd 1
09/01/15 15:27
TECHNOLOGY UPDATE
11700
10
20
Time (hr)
30
40
lad
eP
DC
ad
11900
e
PD
TC
12100
DC
eP
C
PD
FS
12500
lad
a
er
e
ad
bl
6-
m
Ky
12300
5-b
Depth (ft)
60
50
6-b
bl
5-
12700
Fig. 1A comparison of drilling the curve with the Kymera FSR bit and
tungsten carbide insert (TCI) and polycrystalline diamond compact (PDC) bits
in the Eagle Ford Shale.
9000
9500
Depth In/Depth Out (ft)
total depth (TD) in 17 hours with an average ROP of more than 46 ft/hr (14 m/h).
The hybrid bit showed exceptional
tool face control and enabled more WOB
for the fastest drilling through the curve
achieved to date. The smooth drilling
also mitigated bit and motor failure. All
curve runs were completed with one bit,
which had not been achieved previously on this well pad. By using the bit, the
operator was able to reduce the cost per
foot in the curve by at least 36%.
In another case, an operator in the
Wolfcamp pay zone of the Permian Basin
wanted to optimize drilling operations
through the curve, a section that consistently proved very challenging because
of the formation rock. The curve passes through Wolfcamp shale sections and
the more challenging Third Bone Spring
sand, which has a rock strength that varies between 10,000 psi and 20,000 psi.
This section has proved difficult to drill
in the curve, typically requiring several
bits to reach TD.
Kymera FSR
10000
Offsets (Average)
10500
11000
11500
Enter
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in browser
Tap Add to
Home Screen
38
12000
10
15
20
25
ROP (ft/hr)
30
35
40
45
Fig. 2The performance of the Kymera FSR bit in drilling the curve in the
Wolfcamp formation compared with curve drilling in offset wells.
Advanced technology is vital to success in any air mission. Todays challenging well environments
demand breakthrough technology, too. The men and women of Newpark Drilling Fluids are
committed to creating tactical solutions that propel performance, reduce costs and minimize
environmental impact well after well.
As the worlds largest singularly focused drilling fuids provider,
wee ha
havee the mission-critical technology you need.
Visitt n
newparkdf.com
wparkdf.com today.
NDF-10353.jpt.TECHNOLOGY.Ad.indd 1
1/7/15 1:01 PM
40
flowback water in areas such as the Marcellus, where the starting point is often
in excess of 50,000 ppm. However, for
lower salinity produced waters this is
still the technique of interest. In such
situations, there are two outcomes for
Production & Extreme Service Chokes | Compact Ball & Check Valves
API Piping Accessories | Pressure Relief Valves | Valve Manifold Packages
www.u sc o r te c .com
Performance Tested
Quality Assured
The Standard
Houma 985.223.1966
41
SPE/CSUR
Unconventional
Resources
Conference
Call for
Abstracts!
Conclusion
Flowback water and other produced
water can be disposed of in an environ
mentally secure fashion. Flowback water
is most advantageously reused for frac
turing because doing so is cost effective
and reduces the need for fresh water.
Unusable waste water can be disposed of
safely in deep injection wells. It can also
readily be treated for surface discharge
or some other purpose.JPT
Stay on target.
Hit your target consistently with decades of feld-proven experience and the industrys
most reliable rotary steerable technology.
We land wells that others cant. Every time. Each member of the AutoTrak rotary
steerable family is specifcally designed to help reach your target. And with the new
AutoTrak eXact high build rate rotary steerable system with logging-while-drilling
services, you get the Answers While Drilling you need.
Call us or visit BakerHughes.com/AutoTrakeXact and let us help you hit your next target.
+44 2070 483646 or +1 713-268-6218
2014 Baker Hughes Incorporated. All Rights Reserved. 42129 10/2014
E&P NOTES
44
45
E&P NOTES
46
Transmitter
Borehole
with Casing
(a)
Counter
electrode
at the
surface
Distant counter
electrode
Distant counter
electrode
Wireline to
downhole
electrode
Distant counter
electrode
Distant counter
electrode
Transmitter
connected directly
to the borehole casing
Path of
electric
current flow
within the
Earth (typ.)
Source
electrode
at depth
(b)
Paths of
electric
current flow
within the
Earth (typ.)
(c)
Paths of
electric
current flow
within the
Earth (typ.)
Saudi Aramco researchers have tried three approaches to creating electromagnetic images by running a current from an
electrode in the well to a second on the surface. The first two, (a) and (b), require putting an electrode at the bottom
of the well, which sends a current to an electrode on the surface. The company is now testing a method of creating the
electromagnetic field by running a current through the casing (c). Graphics courtesy of Saudi Aramco.
47
E&P NOTES
Using methods and equipment
from two US companies, GroundMetrics
and Berkeley Geophysics Associates, the
new method creates a similar electromagnetic field by running a relatively
low electric current from a connection
to the casing at the surface, avoiding the
need to insert an electrode in the well.
The approach is promising because
this allows a similar way to convey electromagnetic signals with a big advantage on cost, Marsala said.
If this method proves able to produce useful images, it could reduce the
cost and production interruptions associated with inserting equipment into a
well, thus enabling the wider use of the
method, which has been used in Russia
and China. Using a casing to create an
48
would further erode its share of a market where production outside OPEC rose
by 2 million B/D in 2014, according to
the EIA, which said demand was up by
900,000B/D.
OPECs goal is to
ultimately
reduce production by forcing output reductions by what Saudi A
rabian
Minister of Petroleum and Mineral
Resources Ali al-Naimi has described as
inefficientproducers.
The strategy, which allowed the
price of a barrel of oil to drop to less
than USD 50 early this year, appears
aimed at the independent companies
producing millions of barrels a day
from tight, unconventional formations,
where the cost of extracting oil is far
more expensive than Saudi Arabias
world-classreservoirs.
So far the news suggests this could
be a slow-moving process. The large,
public US producers have announced significant reductions in planned exploration and production (E&P) budgets, but
still predict greater production in the
year ahead.
200
150
100
50
0
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
49
2.0
US ImportS ShrInk
The United States is importing
less, and exporting more fuel
and chemicals made from locally
produced hydrocarbons. The result
is a rapid decline in net imports.
Forecast
1.5
1.0
0.5
0.0
0.5
1.0
1.5
2013
OPEC countries
2014
North America
2015
Russia and Caspian Sea
Latin America
North Sea
Other Non-OPEC
Year
Quarter
2013
1
2
3
4
6.56
6.64
6.46
5.30
2014
1
2
3
4
5.38
5.18
4.98
4.18
2015
1
2
3
4
4.11
4.27
4.30
3.59
enzies recent global outlook said, Chinas economy is evolving and the nature
of its energy demand growth is changing. A more rapid than expected shift
to consumption-led growth could slow
energydemand.
For independents, discussions of
how long they can hold out in this test of
wills commonly comes back to the question: What is the break-even price for
US shale producers? The goal is a price
where the losses will force them to shut
in wells.
So far that question has remained
unanswered. Based on statements from
US companies and analysts, lower prices will slow the growth of US shale plays
and be a severe financial stress test for
E&P and oilfield service companies.
Aggressive cost reduction moves have
already begun, including layoffs, and
1,000
900
800
USD 703
700
600
500
USD 446
400
300
December
Short-Term
Energy Outlook
forecast
200
100
0
1975
1980
1985
1990
1995
2000
2005
2010
2015
OPEC has had declining export revenues because of declining volumes, and revenue is expected to drop further with
falling oil prices. This prediction assumes oil at USD 68/bbl. Source: EIA.
50
Unpredictable: plug-and-perf
ncsmultstage.com
2015, NCS Multistage, LLC. All rights reserved. Multistage Unlimited and The Technology are trademarks of NCS Multistage, LLC.
2005
974
2006
1,119
2007
1,190
2008
1,201
2009
1,340
2010
1,470
2011
1,619
2012
1,797
2013
1,945
2014
2,106
2015
2,272
52
We have seen almost across-theboard cuts in E&P spending, but companies continue to project growing output,
Dukes said. If they succeed, oil prices at
USD 75 in 2015 might provide the same
opportunities at USD 90 in 2014 as companies lower costs and hone in on the
best areas.
While the growth rate will slow, drilling new wells to more than replace rapidly declining output from old ones is going
to require aggressive cost reductions.
Everything we see is operators cutting budgets. Some 20% to 50%, some
60%. The norm is in the 20% to 30%
range, said Christopher Robart, director
of Energy Insights at the energy information firm IHS. At the same time, most
operators are currently forecasting single-digit growth in production for 2015.
In the short run, operators can focus
on prime prospects in areas where they
have learned how to optimize production. Keeping production rising over the
longer haul will ultimately require investment in new areas with higher costs during early development periods.
Low prices are expected to limit
future growth in the Canadian oil sands
where producers are expected to complete announced expansion projects,
increasing the output of the tarlike bitumen to 2.27 million B/D in 2015, up from
1.95 million B/D in 2013, according to the
Canadian Association of Petroleum Producers 2014 annual forecast.
Oil production in Canada has more
than doubled over the past decade and
is expected to rise, even with lower
oilprices.
The price challenge is magnified
because heavy oil sands crude sells at
a discount due to higher shipping and
refining costs. But that is not likely to
shut down current operations, or construction in progress, said Andrew
Leach, a professor at the University of
Alberta. With oil sands, existing production is fairly robust. Some have operating and sustaining capital costs under
USD 20/bbl. But the new stuff is whats
at risk, Leach said. Unlike a shale
play, you would not need the same
level of reinvestment to keep produc-
The Big If
This year, unconventional producers,
such as Continental Resources, will need
to prove they can produce considerably
more oil for significantly less cost. It
added to the pressure to do so by closing out its hedging positions last fall,
which had previously locked in higher
prices for oil sold, even as the markets
declined. The widely publicized move
paid it USD433 million, but exposed Continental to the risk of falling prices.
Reducing the companys break-even
costs will require a combination of loweroperating and materials costs, as well as
more productive wells.
For example, Continental released
a revised 2015 E&P budget in December, chopping its expected spending
to USD 2.7 billion, which is 10% less
than it spent last year and far less than
its original 2015 budget. It predicted
that production would rise from 16%
to 20%.
On the cost-reduction side, its budget called for a 15% reduction, lower-
3.0
Saudi Arabia
Kuwait
Iraq
Nigeria
Libya
Iran
2.5
2.0
1.5
1.0
0.5
0.0
Jan 2011
Jul 2011
Jan 2012
Jul 2012
Jan 2013
Jul 2013
Jan 2014
Jul 2014
day when the West Texas Intermediate price was flirting with USD 55/bbl,
Robart said US shale exploration companies would be ecstatic at USD 70 to
USD 80.
B/D
Year
Month
2008
July
Aug.
Sept.
Oct.
Nov.
Dec.
69
73
74
78
89
83
76,424
83,072
94,287
109,929
122,054
112,784
2009
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
68
63
50
43
35
36
41
44
47
51
56
62
100,904
106,040
111,219
114,106
123,427
132,882
146,783
151,522
157,970
161,239
165,719
164,578
53
Difficult Conversations
A sharp drop in prices and the number
of rigs working should speed the transition to new rigs able to drill wells faster,
and allow operators to choose from the
best remaining workers. Companies will
focus on well-known areas where they
have learned how to produce most efficiently and have paid for the infrastructure to do so. Customers have already
begun squeezing service providers for
costconcessions.
I have been forwarded a number of
pricing decreases from operators seeking discounts from providers from 20%
across the board to 30% requests, from
companies doing completions, Robart
said, adding, those are just a starting point for negotiations. We expect
54
RESOURCES
his universitys job
fair and said that oil
prices are only part
of the problem. I
think a major problem for not only
University of HousRAJAN
ton, but other universities as well, is our size, said Rajan.
Despite being only 5 years old, UHs
petroleum engineering program already
has more than 900 students.
In the months before the slide in
prices, Rajan noted that more UH petroleum engineering alumni were taking
jobs further away from the wellhead. We
see it now with new graduates. Theyre
not necessarily practicing petroleum
engineering. Many are going into less
technical careers, like sales, he said.
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55
CONFERENCE REVIEW
A sharp decline in oil prices is pushing oil and gas companies to innovate to
increase efficiency and prepare to meet
the worlds long-term energy needs, panelists said at the International Petroleum
Technology Conference (IPTC) held in
Kuala Lumpur, Malaysia, in December.
Under the theme of Innovation and
Collaboration: Keys to Affordable Energy, the IPTC attracted an attendance
record 10,318 industry professionals
ister in the Office of the Prime Minister of Malaysia, who delivered the keynote speech about the paradox of energy
affordability. One side is positive, with
more affordable prices for those buying oil and gas, thus aiding consumers
and the economy. The other side is negative for oil producing countries such as
Malaysia, whose collections on production represent more than half of government revenues.
Dato Sri Abdul Wahid Omar, a minister in the Office of the Malaysian Prime Minister, spoke at the opening ceremony of
the eighth International Petroleum Technology Conference.
56
Energy correspondent Eithne Treanor, left, moderated the Executive Plenary Session. Matthias Bichsel, formerly of Royal
Dutch Shell, center, and Raoul Jacquand, executive vice president at CGG, right, were two of thepanelists.
Do Not Panic
Meanwhile, the consensus among panelists at the Executive Plenary Session
was that the industry should not panic
because of lower oil prices and should
take the opportunity to strengthen its
base to prepare for the next phase of oil
and gas industry development.
Speakers at the panel agreed that
companies need to learn from past
price declines, which showed the value
of spending on continued research and
development and to hold on to staffers
with valuable skills.
Matthias Bichsel, former director of projects and technology at Royal
Dutch Shell, said that lower oil prices
are not something to panic about, referring to his long experience in the industry, during which he has witnessed a
lot of panic. Our industry is a cyclic
industry, and this cyclicity of the business needs to be managed through collaboration and innovation, he said.
Low prices are a great opportunity to
worktogether.
57
CONFERENCE REVIEW
58
Time to Experiment
Falling oil prices offer an opportunity
for companies to look for new ways to
slash costs. This reversal represents a
shift in what looks risky. When oil was
selling for more than USD 100/bbl, the
fear was that something might fail and
reduce returns. However, when profits
take a hit, there is a hunger for trying
something better, particularly if it can
lower costs.
In my 35 years in the industry,
I have seen innovation acceptance go
through cycles, said Rustom Mody, vice
president of technology at Baker Hughes.
The introduction of new technology is
quite different for the unconventional
market and conventional market.
Independent companies with limited resources in the middle of the cost-
ury, Plathey said. He explained, Investment in research is not like a light switch.
You cannot turn it off and come back 9
months later and turn it back on.
Convincing operators that they need
to make a significant change requires
getting their feedback and involvement
with technology development. Mody said
innovation is understanding the need,
looking systematically for the best solution, and tying it all together to create
tangible rewards.
For national oil companies in Saudi
Arabia and China, research efforts are
critical because they are aimed at the
unique challenges in countries where
there are powerful social and economic motivations to maximize the amount
of oil and gas produced. Saudi Aramcos
expansive work includes partnerships
with research institutions and service
companies, such as Schlumberger and
Baker Hughesboth tenants in a Saudi
Arabian research park established to
At Praxair, were always looking for innovative ways to help our customers be more
productive. We now offer DryFrac waterless fracturing technology, a process that
completely replaces water in hydraulic fracturing with CO2. This process can improve
production and recovery rates as a result of:
Reduced formation damage
www.praxair.com/frac
59
CONFERENCE REVIEW
allow more face-to-face collaboration
and long-term work seeking groundbreaking results.
Those projects put Saudi Aramco
at the frontiers of nanotechnology and
imaging methods, but are based on daily
concerns in the country working to max-
60
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61
MULTIPHASE FLOW
The separation of the oil and water phases is shown in the tail of a
hydrodynamic slug. The modeling fluid and gas behavior in wellbores and
pipelines is one of the chief technologies that has expanded the industrys
capability to produce oil and gas. Photo courtesy of Schlumberger.
62
In many shale fields, operators control only the wells and not the transportation network, which is often why
pipeline capacity increases at a slow-
63
MULTIPHASE FLOW
The University of Tulsas Fluid Flow Project was founded by James Brill in 1973
and is regarded as one of the leading facilities for the study of multiphase flow
in pipelines. Photo courtesy of James Brill.
PipeFractionalFlow is among the newest multiphase flow models to be developed for the oil and gas industry. It is
targeting a wide array of applications including high-pressure/high-temperature production and horizontal shale wells.
Image courtesy of Anand Nagoo.
64
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MULTIPHASE FLOW
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MULTIPHASE FLOW
said that there has been less emphasis placed on developing models to figure out the nature of hydrate formation,
which happens in nearly all subsea flowlines and places onshore such as Alaska,
where much of the production comes
from north of the Arctic Circle. The simple reason hydrate modeling has not
been a major focus for multiphase modeling research because it is very complex
and hard to do.
Sum compared hydrate modeling
with modeling sand in pipes, which has
been successfully done, to illustrate why
it is so difficult. Hydrates are quite different from sand, especially in terms of
the density and in that hydrates aggregate, whereas sand will just either remain
dispersed in the fluid or depending on
the flow rate, settle, he said. In other
68
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component is severe-duty engineered to perform under the harshest conditions.
Each of our field-proven frac spreads is electronically and mechanically integrated
end-to-end and precisely managed through our mobile control data unit. Plus we
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70
71
MANAGEMENT
It is clear the oil and gas industry recognizes the large uncertainty in which
it operates. A search in the OnePetro
technical paper database using the keywords uncertainty or risk returns
more than 53,000 conference and journal papers. Yet, it is also clear that the
industry does not know how to reliably
assess uncertainty and that this inability
negatively affects industry performance.
Capen (1976) described the difficulty
of assessing uncertainty. He pointed to
massive capital overruns and low industry returns due to an almost universal
tendency to underestimate uncertainty.
Brashear et al. (2001) and Rose (2004)
later documented the dismal performance of the industry in the last 10 to 20
years of the 20th century due to chronic
bias and evaluation methods that do not
account for the full uncertainty.
Although industry profitability
may have improved in the past decade
because of high oil prices, Neeraj Nandurdikar in an October 2014 JPT article,
Wanted: A New Type of Business Leader
Observed Frequency
1.0
0.8
0.6
0.4
0.2
0
0.2
0.4
0.8
0.6
1.0
Assessed Probability
72
Re-Education Needed
Persistence of unreliable uncertainty
assessment also indicates that we need
to change the way we educate engineers
about uncertainty, and it needs to start
no later than their undergraduate education. Most formal education is focused
on getting the right answer. Undergraduate engineering students traditionally have been taught to solve problems
deterministically, and traditionally have
been motivated, through grades, to get
the single right answer. I teach senior
design courses in which there is commonly no single correct answer, and students are often noticeably uncomfortable when I cannot tell them the single
correctanswer.
It is the same when students are
asked to quantify the uncertainty in
their knowledge about a topic. They
are uncomfortable because quantifying
uncertainty is an alien concept to them.
We are all subject to many biases and
quantifying ones uncertainty does not
come naturally, which is why humans
are poor at it. Assessing uncertainty, i.e.,
assessing how much you know about
something, is a different skill, separate
from petroleum engineering or other
knowledge areas.
Accordingly, the ability to assess
uncertainty in a particular area does not
necessarily come with increased knowledge in that area. Evidence in the literature suggests that despite their advanced
knowledge, experts can be just as poor
at assessing uncertainty as nonexperts.
Although assessing uncertainty is a different skill, it can be taught and learned.
Teaching Uncertainty
Assessment
We consider uncertainty assessment to
be a vitally important skill for students in
the Petroleum Engineering Department
73
MANAGEMENT
74
MANAGEMENT
76
References
Capen, E.C. 1976. The Difficulty of Assessing
Uncertainty. J. Pet Technol 28 (8): 843850.
Rose, P.R. 2004. Delivering on Our E&P
Promises. Leading Edge 23 (2): 165168.
Brashear, J.P., Becker, A.B., and Faulder, D.D.
2001. Where Have All the Profits Gone?
J. Pet Technol 53 (6): 2023, 7073.
Nandurdikar, N. 2014. Wanted: A New Type of
Business Leader to Fix E&P Asset Developments. J. Pet Technol 66 (10): 1519.
McVay, D.A. and Dossary, M. 2014. The Value
of Assessing Uncertainty. SPE Econ & Mgmt
6 (2): 100110.
TECHNOLOGY
Mike Weatherl,
SPE, is a deepwater
consultant for
Apache. He holds a
degree in petroleum
engineering from
The University of
Tulsa. Weatherl started his career as a
production engineer with Chevron in
New Orleans. Over the next 25 years,
his career with Chevron included a
variety of positions in production
and drilling. Since 2004, Weatherl
has worked primarily on deepwater
projects, first as a drilling adviser
at Chevron before moving over to
Hess Corporation in November 2007.
He is a board-certified professional
engineer in Texas and a 25-year SPE
member. Weatherl has authored
several papers and has served as a
technical editor for SPE Drilling &
Completion. He is a member of the
JPTEditorialCommittee.
Recommended additional reading
at OnePetro: www.onepetro.org.
SPE 166456 Newtonian Fluid in
Cementing Operations in Deepwater
Wells: Friend or Foe? by Polina Khalilova,
Schlumberger, et al.
SPE 166166 Casing While Drilling
UsingRotary-Steerable Technology
in theStag FieldOffshore Australia
by Kyle S. Graves, Apache, et al.
OTC 24189 Taking the Proper Action to
Gas Influx During Constant-BottomholePressure Technique of Managed-Pressure
Drilling by Ali Karimi, The University of
Tulsa, et al.
SPE/IADC 170550 Novel Lubricant/
Bridging-Agent Combination Cures
Differential-Sticking Problems in
High-Pressured North Kuwait Wells
by M.S. Al-Muhailan, Kuwait Oil Company,
et al.
78
DRILLING
TECHNOLOGY
I have been a witness to the evolution of drilling technology during the past 33 years,
and being part of this industry has been a great privilege and an adventure. Nowhere
else are these new and evolving technologies more accessible or better documented
than in SPE media. In this Drilling Technology feature, a few example papers from
recent industry events have been selected to highlight new ways extreme challenges
are being addressed and solutions are being applied to deliver game-changing breakthroughs in the way wells are being delivered.
Geosteering of multilateral wellbores in mature reservoirs in Kuwait using geochemical analysis is an example of the kind of cross-discipline interaction that has
become a hallmark of successful well delivery. Drilling engineers are dedicated as a
part of the core team early in the project-planning phase. Here, Earth scientists and
engineers develop effective communication and working relationships and become
fluent in the languages of other disciplines.
As is often said, all of the easy reserves have been produced. Long gone are the
days when low-risk, low-cost wells were drilled, completed, and put on production for
a quick payout. Today, to extract value from complex reservoirs with ever-increasing
cost and risk, using innovative techniques and new ideas is the name of the game.
Seamless, multidiscipline work flows and imbedded integrated teams continue to
present significant opportunities within the industry and will for many years to come.
The application of managed-pressure drilling (MPD) and underbalanced drilling
(UBD) has evolved across the spectrum of offshore, onshore, new-field, and mature
developments in recent years. Experienced teams report with increasing frequency
that they were able to deliver wells and reserves using MPD/UBD that otherwise would
have been undrillable. Considering the narrowing pore-pressure and fracture-gradient
windows over the life of the field, with increasing depletion and reinjection, applications for these technologies are expected to continue to expand. Two related articles
are featured showing dramatic geographic and well-type diversity: MPD offshore Vietnam and high-pressure/high-temperature UBD onshore US in the Marcellus shale. Two
very different case histories share a common element: a departure from conventional
drilling fluid, well control, and overbalanced drilling. A review of recent SPE papers and
presentations at industry events indicates applications of MPD/UBD technologies are
widespread. On the other hand, looking at the fields where these strategies have not yet
been implemented, one gets the feeling that perhaps these are still early days.
Finally, evolution in drillstring design is detailed in a paper addressing recent technology advancements and practical considerations associated with extreme deepwater
drilling applications. Once again, ever-increasing well complexity, depths, pressures,
and temperatures demand new materials, new procedures, and aggressive innovation.
Mechanical integrity and reliability under extreme static and dynamic loads will continue to dictate systematic design, manufacturing, and testing to deliver well objectives.
These are but a small sample of the many excellent papers recently generated.JPT
Introduction
The Minagish field in Kuwait was discovered in 1959 and is located in the
southwestern part of the country. It
contains several reservoir intervals in
its stratigraphic column, varying from
Early Jurassic to Late Cretaceous. The
field is situated 12 km northwest of
the west Umm Gudair field. The field
has been penetrated by more than 180
wells, to contact not only the middle
and lower Minagish reservoirs of the
Lower Cretaceous but also other shallow reservoirs such as the Mishrif/
Rumaila carbonates and the Wara/Burgan sandstone. The Minagish field structure of the Wara and Burgan formations
is a closed elongated asymmetrical anticline oriented in a north/south direction. The top of the Burgan structure is
This article, written by JPT Technology Editor Chris Carpenter, contains highlights of
paper IPTC 16617, Drilling of Multilateral Wells Aided With Geochemical Analysis,
Kuwait, by Taher El Gezeery, Abdul Aziz Ismail, Khalaf Al Anezi, Monirah Al
Jeaan, Jeevan Kumar Silambuchelvan, and G.S. Padhy, Kuwait Oil, and Atul Wasnik
and Ahmed Al Shoeibi, Geolog International, prepared for the 2013 International
Petroleum Technology Conference, Beijing, 2628 March. The paper has not been
peerreviewed.
Copyright 2014 International Petroleum Technology Conference. Reproduced by
permission.
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
JPT FEBRUARY 2015
79
the reservoir contact. The authors present the details of an integrated interpretation based on a real-time data set
for the LAT-0 and LAT-1 sections of Well
MN-A (multilateral).
Fig. 2The production log shows incoherent areas on seismic having a very
high potential for water coning. This zone is interpreted as a fault zone
connected with the aquifer. The water coning is mainly caused by a very high
mobility ratio and oil-wet reservoir characteristics.
Multilateral-Well-Location
Optimization
The well locations for smart multilateral
wells are optimized by integrating data
from multiple disciplines, from the macroscale (seismic) through the microscale
(petrography). Furthermore, data from
seismic, geology, petrophysics, reservoir
engineering, and well surveillance were
incorporated into the predrill characterization program. The lower lateral,
LAT-0 (main bore) of the smart multilateral well, is placed in the lower Burgan,
consisting of a braided river system with
80
stacked sand bodies. The sediment ranges from fine to coarse grain sizes, with
the porosity ranging from 20 to 30% and
with permeability values on the order of a
few darcies. The bottom part of the massive, thick sand bodies is connected directly to the bottom aquifer.
The upper lateral, LAT-1 of the
smart multilateral well, is targeted in
the upper Burgan reservoir, which ranges from silt to medium sands. The porosity is relatively low (between 15 and
18%), and the permeability values are
on the order of 100 md because the
reservoir still retains its fluvial-sand
character. Shaly sediments between the
lower and upper Burgan can act as a permeability barrier or baffle for vertical
migration of fluids. This complex channel geometry makes these reservoirs
very challenging for implementation of
smart multilateral wells.
Multilateral-Junction Considerations.
A crucial aspect in designing the smart
multilateral well was the selection of an
appropriate multilateral junction. After
a complete screening of various multilateral junctions, the Level-4 junction
was selected. During the well-trajectory
optimization, the multilateral-junction
depth was selected across excellent compact shale at the base of Wara layers to
ensure junction stability during drilling and well completion, and to ensure
junction integrity during long-term production. The high-resolution-XRF analysis shows a high-argillaceous siliciclastic
zone on the basis of chemical behavior.
XRF-Aided Chemosteering in Lower
Burgan Sand (LAT-0). The geochemical
model built with offset-well data guided
the chemosteering of the well, in integration with other information. In the
absence of resistivity data, XRF-analysis
data identified a fault at 7,340ft, which
was not observed by the near-bit gamma
ray log. Elemental changes, supplemented with lithological changes, confirm
the faults encountered at 7,490, 7,950,
8,450, and 8,700 ft. Cl could be used
as a good marker before encountering
the fault. The findings of XRF analysis
are further confirmed, while drilling,
from interpretation of azimuthal density images. Chemosteering thus aided
in changing the well path on the basis of
elemental analysis, helping to maximize
the reservoir contact.
Identification of Faults/Fractures. Azimuthal lithodensity images were interpreted while drilling not only to understand the formation dip but, more
importantly, to identify clusters of fractures/faults. Four fault zones were identified through the LAT-0 section of Well
A, and these were quite evident from
XRF analysis. Though the real-time density images were not of high confidence,
they still were able to provide information about formation dip and helped
guide the geosteering process in the
upper and lower Burgan reservoirs.
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82
Managed-Pressure-Drilling Technology
in Offshore HP/HT Gas/Condensate Fields
Introduction
The Bien Dong drilling team decided
to deploy MPD technology in the planning phase of the development drilling
and mobilized it for the first well drilled
in the project. This decision was made
because of the very low kick-and-loss
margin and potential for ballooning and
kick events, given the very high pore
pressure. The frequency of well-control
incidents can be higher in HP/HT wells;
MPD enables easier control of kicks with
the automated choke manifold.
A semisubmersible tender assist rig
is being used to drill all the current development wells; it is the largest of its
type in the world and incorporates a
quad mast. The MPD equipment was in-
Implementation of MPD
in Bien Dong POC Well 1
MPD with early kick detection was deployed in five Bien Dong wells. The
major objective of using MPD was to ensure that the wells could be drilled safely without encountering any unplanned
well-control events. Ballooning events
were identified by the MPD system during pump-off periods, which had induced microfractures in the overpressured formation, and the return drilling
fluid was flowed back into the wellbore
as the fractures closed. The resultant
flowback can often be confused with
influx. Failure to recognize ballooning
vs. well control is a common mistake
made in drilling operations. While drilling, the entire MPD system was able
to detect a number of gas-at-surface
events. Moreover, the events were eas-
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper SPE 171429, The Deployment of Managed-Pressure-Drilling Technology
To Assist in the Development of Offshore HP/HT Gas/Condensate Fields in Vietnam:
Planning, Engineering, and Implementation, by Ben Gedge, Tan Chai Yong, Jordan
Rao, Harpreet Kaur Dalgit Singh, Joseph Oracion, and Bao Ta Quoc, Weatherford;
Nguyen Viet Bot, PVD Well Services; Nam Hong Tran, Tri Le Tran Minh, Richard
Buitenhuis, and Lich Tran Dai, Bien Dong POC; and Alan E. Wittry, Peter Malpas,
Aldric Beaugeois, Nhieu Nguyen Huu, and Nguyen Van Que, Cuu Long JOC,
prepared for the 2014 SPE Asia Pacific Oil and Gas Conference and Exhibition,
Adelaide, Australia, 1416 October. The paper has not been peer reviewed.
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
84
The computation of equivalent static density (ESD), when the drilling fluid
is not circulated in the wellbore and no
surface backpressure (SBP) is being held,
indicates that the selected mud weight
would lead to a statically underbalanced
condition. SBP is recommended to be applied to compensate for the loss of annular friction in static conditions.
85
86
highest formation pressure was encountered. This hole section was drilled
from 3505-m measured depth (MD) to
4594-m MD and has a formation pressure ranging from 10.2 to 13.7 lbm/gal
in the upper part of the section, then reducing from 13.7 to 12.8 lbm/gal and finally to 11.8 lbm/gal at TD.
With the use of MPD, the hole section can be drilled to TD with a single mud
weight. In the hydraulics simulation performed, the ECD of 12.8 lbm/gal and flow
rate of between 500 and 600 gal/min
are sufficient to stay overbalanced at the
highest anticipated pore pressure. However, when pumps are stopped for a connection, 750- to 800-psi SBP is required
with the MPD choke manifold to replace
the frictional losses while circulating. By
choosing the highest pressure in the hole
section as the pivot point for the MPD
application, the entire hole section can
be drilled successfully and safely with a
single mudweight.
Operations. The MPD equipment was
rigged up after the 13-in. casing was
set and cemented. After the rig up was
completed, the MPD system was pressure tested to check the integrity of
the whole system. The MPD fingerprinting exercise was then conducted before
drilling the 12-in.-hole section. The
RCD bearing assembly was initially installed at 3145-m MD to drill through
the first pressure-ramp zone to 3505-m
MD TD.
For the 8-in.-hole section, the
MPD application started with performing the fingerprinting exercises.
For the first 500 m (3505 to 4004-m
MD), the RCD bearing assembly was installed but SBP was not applied. Drilling of the remaining 8-in.-hole section from 4004-m MD to section TD
of 4594-m MD continued, applying up
to a maximum of 800-psi SBP during
connections, to maintain an equivalent
mud weight of 14.0 lbm/gal; 150-psi
SBP during back reaming after drilling standdown; and 150-psi SBP during
measurement-while-drilling downlinking. After circulating the hole clean,
the mud in the hole was displaced to
14.1 lbm/gal with no losses noted dur-
Introduction
While seeking alternatives to increase
ROP and reduce drilling costs, a few operators in the northeastern US implemented batch-drilling practices from pad
locations. This provides an attractive alternative by allowing multiple wells to
share the same surface location, effectively reducing footprint and environmental impact. Common well design uses
streamlined well construction, where
low-cost rigs can drill the tophole sections and larger, more-expensive rigs
drill the curve and lateral sections. The
typical well plan incorporates surface,
intermediate, curve, and lateral sections
that, combined, may exceed 18,000 ft.
The lateral sections are the most critical
and range between 2,000 and 8,000 ft,
depending on formation and well geometry. The goal for close-proximity-well design is to minimize well-to-well interference and maximize reservoir exposure.
Single-Phase
Fluid-System Type
Two-Phase
Foam
Gas/Mist
2.5
7.5
10
12.5
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper SPE 171024, Unique System for Underbalanced Drilling by Use of Air in the
Marcellus Shale, by Chris Maranuk, SPE, Ali Rodriguez, SPE, Joe Trapasso, SPE,
and Joshua Watson, SPE, Weatherford, prepared for the 2014 SPE Eastern Regional
Meeting, Charleston, West Virginia, USA, 2123 October. The paper has not been
peerreviewed.
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
JPT FEBRUARY 2015
87
Air-Drilling System
An EM MWD telemetry system offers
several advantages over standard mudpulse-telemetry systems and is the preferred method of transmitting data from
a downhole tool to surface during underbalanced operations. The key advan-
88
50
25
25
2
3
-LEARNING
DRILLING
50
75
75
50
25
25
50
75
FOLLOW US ON
TM
+1.713.849.7400
www.wellcontrol.com
JPT FEBRUARY 2015
Third-Generation
Double-Shoulder Connection
Since the introduction of the secondgeneration double-shoulder connection
(DSC), the industry trend has continued
toward deeper and longer-reach wells,
which has dictated the need for drillpipe connections with enhanced mechanical and dimensional characteristics coupled with improved makeup/
breakoutspeeds.
Consequently, a project was commissioned to design, analyze, laboratory test, and field trial the industrys first
third-generation DSC. A key objective
of the project was to improve connection makeup/breakout speeds significantly. Mechanical and hydraulic gains
were also dictated on the basis of the industrys trend toward deeper and longerreach wells.
Thread 1
Second-generation
DSC-57
Third-generation
DSC-585
Thread 2
Approximately 4 revolutions
Approximately 13 revolutions
Design Philosophy. One of the primary philosophies underlying the development of third-generation DSCs was the
concept that one design does not fit all.
This philosophy suggests that a thread
form optimized for 6-in. drillpipe may
not be optimal for 2-in. drillpipe. In
fact, optimized thread forms for each of
these sizes differ substantially.
5- to 5-in. drillpipe sizes represent common sizes for offshore, deepwater, and higher-profile programs such
as extended-reach drilling. Connection
designs focused on speed of makeup and
more-streamlined connections for increased hydraulic performance.
For the large 6-in. drillpipe size
commonly run in elevated-spread-rate
projects such as deep and ultradeep
water, speed of makeup is a primary
This article, written by JPT Technology Editor Chris Carpenter, contains highlights of
paper SPE 170566, Advanced Technologies and Practical Solutions for Challenging
Drilling Applications, by M.J. Jellison, SPE, NOV Grant Prideco, and A. Chan,
Workstrings International, prepared for the 2014 SPE Asia Pacific Drilling Technology
Conference and Exhibition, Bangkok, Thailand, 2527 August. The paper has not been
peer reviewed.
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
90
Tungsten-carbide-free
hardbanding to protect
riser/casing
High-strength-grade
tube of reduced wall
thickness
Pin-wall thickness to provide
connection tensile capacity
Fig. 2Components of a state-of-the-art landing string.
Landing-String Development
92
Pipe Body
Sour-Service Drillpipe
SSC caused by the presence of H2S gas
in downhole drilling environments
has led to the development of sourservice drillpipe, which is engineered
to have resistance to SSC. The weld area
of sour-service drillpipe has not been
SSC tested in the past, and there have
been no documented SSC failures in
the weld zone of sour-service drillpipe.
There are several factors that make an
SSC failure in the weld zone of sourservice drillpipe unlikely. The region on
both sides of the weld has a cross section much larger (1.5 to 2.0 times) than
that of the tube. This larger weld-area
cross-section means that the stress experienced in that area is less by the
same proportion. Also, it is generally
possible during drilling operations to
control the well environment and help
prevent SSC failure of the drillpipe and
weld zone.
On the other hand, the operating
environment for some critical sour applications cannot always be controlled,
and direct and prolonged exposure to
H2S can occur. Consequently, it became
apparent that an SSC-resistant friction weld was required for these critical
sourapplications.
Friction-Type Welds
and SSC Resistance
During friction welding, heat is generated by mechanical friction between a rotating tool joint and a stationary upset
tube. At forging temperatures, a lateral force is applied to displace and fuse
the components plastically. The weld
area is effectively forged, resulting in a
high-strength weld. The weld area is then
austenitized, quenched, and tempered
to produce a final tempered martensite microstructure. Careful weld-process
control and heat treatment are required
to produce weld-area SSC resistance in
friction-type welds.
For a discussion of SSC-testing parameters, as well as tensile-test and
bend-testing results, please see the complete paper.
Downhole-Heating Failures
Downhole-friction-generated-heating
failures are another problem experienced in a number of deepwater drilling applications. Directional drilling followed by long, potentially high-angle,
deviated sections can create conditions
conducive to downhole heating.
93
TECHNOLOGY
94
offshore facilities
Last years Offshore Facilities Technology Focus (February 2014) highlighted the slowdown of new-project approvals that the inflated cost of doing business in the oil and
gas sector had already brought about. That slowdown has continued throughout the
past year, although the high cost of goods and services has been replaced as the driver
by the much lower revenues now attainable from the oil and gas produced. In many
cases, the currently required capital investment cannot be justified.
Of course, the cost of goods and services will gradually moderate as the demand
from operators temporarily wanes, but the project activity will really pick up again
only when the value of the hydrocarbons recovers to a point where confidence in
longer-term economic viability is restored. Meanwhile, we risk witnessing yet another
cycle of layoffs and redundancies, even while the wailing over resource shortages for
the tasks ahead still echoes around the upstream corridors of power.
One of the phenomena examined in this years feature is the destabilizing escalation in weight, and hence cost, of offshore facilities that has been an increasingly common feature of our industry after project sanction at a given commitment level. This
is clearly something the industry has to get a proper grip on before confidence can be
restored fully.
We also continue to highlight a theme that has appeared in each of the last four
editions of the Offshore Facilities feature, namely the critical importance and benefits
of effective collaboration at all levels and between sectors of our industry in honing the
efficiency with which development objectives are achieved.
Availability and application of new ways of tackling tough development challenges remain key components of this collaborative quest for ever-better operational efficiency. We delve into several recent examples of how this has been achieved,
using new technologies, methods, and materials. It is hoped that these might serve
as a timely reminder to avoid temporary layoffs by encouraging instead a redeployment of resources temporarily liberated by the current lull in field-development
activity. Many of these could, and perhaps should, be tasked with qualifying the next
tranche of new approaches that will benefit the eventual resumption of unfettered
field-developmentactivity.
Innovation is the life-blood of any high-tech industry, and the operators are the
primary beneficiaries of its application. If we do not take advantage of opportunities
such as those currently presented, to focus liberated resources onto developing and
qualifying the innovations needed for enabling the next set of challenges to be overcome, then we will have only our collective selves to blame.JPT
Olympus
West
Mars A
East
Salt
Salt
Deimos
Development
(Deep Mars)
Fig. 1Seismic cross section of the Mars and Deimos reservoirs.
Introduction
The operator discovered the Mars field
in the Mississippi Canyon Area Block 763
in 1989, located 130 miles southeast of
New Orleans in approximately 3,000 ft
of water. The Mars-B project made its
final investment decision in September
2010 to expand the existing Mars operation with a new 24-slot TLP structure and
additional subsea infrastructure for the
west Boreas and south Deimos fields. The
Olympus TLP is located approximately 1 mile southwest of the existing Mars
TLP and represents the first brownfield
development of a deepwater field in the
GOM. It will enable production of an additional 1.1 billion BOE over the approximately 700 million BOE that has been
produced today with the Mars TLP.
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper OTC 25437, Mars-B Development: Well Challenges and SolutionsAn
Evolution of Traditional Well, Rig, and Facility Design, by Arno L.M. van den Haak,
Wylie J. Cameron, Lisa S. Grant, Nor Janiah H. Japar, and Deandre R. Reagins,
Shell, prepared for the 2014 Offshore Technology Conference, Houston, 58 May. The
paper has not been peer reviewed.
Copyright 2014 Offshore Technology Conference. Reproduced by permission.
higher shut-in surface pressure of approximately 11,000 psi. The well trajectories range from near-vertical to highangle extended reach, through sediments
and through salt penetrations. See Fig. 1
for a seismic cross section. Modifications
to the traditional TLP and DVA rig design
practices are essential for successful execution of these complex DVA-well designs. The traditional approach of fitting
well designs within the limit of a conventional/available rig is no longer viable because of the complex nature of the Olympus well designs.
Olympus Host-Platform
Drilling Requirements
The Olympus topside facilities are configured into four main modules: drilling
module, power module, process module,
and living quarters. The drilling module consists of the DVA-rig structure,
the bridge structure, and the drillingsupport module (DSM), with an estimated dead-weight load of 5,115 tons (Figs.2
and 3).
The DSMs incorporate five submodules (i.e., the electrical, mud-pump,
mud-mixing, and mud-tank modules and
95
Platform North
True North
Drilling Module
Bridge Module
DSM
Fig. 2General arrangement of the drilling module (DVA-rig structure, bridge
structure, and DSM).
Derrick Design
Fig. 3Bridge structure connecting the DVA rig to the DSM.
96
Fluids Management
and Solids Control
Because of the various formation types to
be encountered and the requirement for
specialty fluids during cementation, multiple complete-well displacements are
anticipated. Active and reserve pits were
Managed-Pressure-Drilling
(MPD) -System Configuration
MPD will be used on the majority of hole
sections in order to manage wellbore
stability by reducing the number of bot-
tomhole stress cycles that are traditionally induced when making conventional
connections. On connections and other
pumpoff events, the bottomhole pressure is kept near the same pressure as
when circulating by accurately applying
annular pressure. To streamline MPD
operations and take best advantage of
the technology, the Olympus DVA design has incorporated a dedicated MPD
choke manifold into the rig design. System modifications were made to the traditional MPD piping design, size, and
choke configuration, reducing the expected surface losses to 20 to 30 psi at
rates greater than 1,000 gal/min. An
MPD rotating head with an 18-in.inner-diameter (ID) pass through was
designed to match the drift of the
blowout-preventer (BOP)system.
Pressure-Control Systems
Surface BOP. The well systems are designed to operate with a surface-BOP
system. The surface BOP is an 18-in.
BOP with four rams rated to a 15,000-psi
working pressure. The BOP contains two
doubles, each with a shear-ram/variable-
MARIETTA COLLEGE
DEPARTMENT CHAIR, PETROLEUM ENGINEERING AND GEOLOGY
Marietta College invites applications for the position of Chair of the Department of Petroleum Engineering and Geology at
Marietta College. The Petroleum Engineering program at Marietta is accredited by the EAC of ABET. The full-time faculty of
the Department consists of seven engineers and five geologists. Marietta College admits approximately 90 undergraduate
petroleum engineering students per year. The class of students offered admission for the 2015-16 academic year has an
average incoming high school GPA of 3.94 and an average composite ACT of 29.7. The Department also offers two different
minors in the area of energy systems. There are approximately 380 undergraduate students in the program and a total of
1,250 undergraduate students on campus. The Geology program has approximately 60 majors as well. Graduate degrees
are not offered in Petroleum Engineering or Geology.
Job Description: Marietta College seeks an experienced educator who is dynamic, enthusiastic, and has a proven record of
collaboration and excellence in Petroleum Engineering education. Responsibilities of this position include department
organization and administration; accreditation maintenance; continuous program improvement; fiscal management; budget
and grant development; mentorship and evaluation of faculty; scholarly activities; coordination of the Departments Industry
Advisory Committee; work with industry to facilitate placement of students in internships and permanent jobs; and service to
the college and community. The Department Chair reports directly to the Provost of the College. This is a full-time (9- month),
tenure track position with an additional stipend paid for Chair duties and modest summer duties.
Requirements: Applicants must be a graduate of an accredited petroleum engineering program and preferably hold a PhD
degree or a masters degree, professional registration, and significant industry experience. Teaching experience, an
understanding of the ABET accreditation process, and involvement in SPE activities are highly desired.
Interested applicants should submit a CV, cover letter and contact information for three professional references via the online
application process by March 1, 2015. We regret that we are unable to accept application material via any other venue than
the online option. Please visit the Marietta College website and click on Jobs to apply.
97
Register
Now!
The choice of configuration is dependent on whether there are hydrocarbons present with flow potential, on the
drift required through the riser, and on
the exposed-formation shut-in pressure
with a full hydrocarbon column.
The 21-in. outer high-pressure
drilling riser is deployed for drilling intervals well above known hydrocarbon
zones with flow potential, and a second
high-pressure inner riser will be used
when flow-potential hydrocarbon zones
are expected. This provides two barriers
once hydrocarbons with flow potential
are exposed.
Hopping of 21-in. High-Pressure
Drilling Riser. The Olympus drilling
riser is designed to be suspended below
the skid platform, enabling the rig to
move off the slot without pulling the
drilling-riser systems. This functionality allows for riser parking and riser
hopping rather than having to recover
the riser once the drilling phase has been
The unmatched superiority of our GaugePro Echo on-command digital reamer eliminates
the ineffciencies and limitations of drop-ball and hydraulic reamers. The feld-proven
GaugePro reamer can be placed near the bit, which eliminates the need for a second trip
for reaming the rathole.
And the downhole reamer has the power and fexibility to go through as many activation
cycles as neededall while the blade status and position is confrmed in real time.
Call us or visit BakerHughes.com/DigitalReamer to learn how the reliable GaugePro Echo
on-command digital reamer can eliminate dropping the ball on your next well.
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2015 Baker Hughes Incorporated. All Rights Reserved. 42533 01/2015
The FPSO
In September of 1993, the Gryphon Alpha
became the first purpose-built longterm-moored FPSO to be installed in the
North Sea. The unit is located 175 miles
northeast of Aberdeen in a water depth
of 112 m. Gryphon has a somewhat unusual layout in that the turret is located
forward of midships (Fig. 1). Five fully
azimuthing thrusterstwo forward and
three aftare used to provide heading
control. Each mooring line has its own
windlass and azimuth swiveling-gypsywheel assemblies provided at the base
of the turret. It is therefore relatively
easy to adjust mooring-line tensions and
lengths compared with other turret designs. A drag chain is provided for fluid
transfer from the wells. This means rotation of the FPSO is limited to 270, either
clockwise or counterclockwise from the
vessels neutral heading of 225. During
New-Mooring-System Design
and Fabrication
A number of potential mooring-linedesign solutions were considered; from
these, it became evident that using a
weighted section of chain in the mooring
line reduced the dynamic tensions. The
new design was optimized further to provide installation and maintenance preferences (e.g., a change was made from
the original 84-mm studded to 84-mm
studless chain). For the weighted-chain
section, 120-mm studless chain was used
to allow the chain to be supported by
a number of available anchor-handling
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper OTC 25322, Gryphon Alpha FPSO: Experience Gained During Moorings
Replacement and Hookup, by Fred J. Toal and John G. Martin, Maersk Oil, and
Martin G. Brown, Ian M. Lindsay, and Robert Sinclair, GL Noble Denton, prepared
for the 2014 Offshore Technology Conference, Houston, 58 May. The paper has not
been peer reviewed.
Copyright 2014 Offshore Technology Conference. Reproduced by permission.
Mobilization for
New-Moorings Prelay
Preparations for FPSO-moorings prelay commenced during the last quarter of 2011. An important element in
the preparation of the mooring was the
makeup of the trichains, which involved
careful chain selection and placement.
Placing the shortest chain in each tri-
ried out before prelay to check for obstructions and seabed features.
Applying a classification-societyspecified test-tension load of 430 t to
each anchor for 15 minutes was beyond
the bollard pull capability of a single
AHV, so it required the use of two AHVs
in formation. A lesson learned from this
operation was that, because of apparent
variations in seabed density and vessel
motions during test tensioning, the dynamic load applied to the anchors varied
fairly significantly around the required
mean value. This resulted in all anchors
dragging in to some extent and a few anchors becoming deeply embedded (the
deepest of which was measured to have
embedded approximately 14 m below
thesurface).
101
Fig. 4Gantry available to traverse the complete aft deck of the AHV.
Connected trichain and 84-mm single chain over the stern roller.
102
For a discussion of the preparation and execution of the FPSO sailaway from Rotterdam, please see the
completepaper.
Prelaid-Moorings Connection
to the FPSO
On arrival at the location, the FPSO connected to four dynamic-positioning
Class-2 AHVs in a star-shaped formation. Once all four vessels were connected, station-keeping trials took place, and
there was a short delay while waiting on
the requisite weather window. The FPSO
was then moved into position over the
field turret center (FTC) by the four AHVs
and was maintained at FTC (with an average accuracy of 5 m) for the entirety of
the mooring-connection operation.
Once the FPSO was at FTC and station keeping was being maintained to the
Push the
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Call us or visit BakerHughes.com/GoM-pushtheboundaries and learn how our Total
Systems Approach pushes the boundaries of what was previously thought possible.
+1 713-268-6218
2014 Baker Hughes Incorporated. All Rights Reserved. 40430 12/2014
Project Overview
The Kikeh field is located 120 km northwest of the island of Labuan at approximately 1300-m water depth. The field
was developed using a standalone facility, with hydrocarbons being produced
from both subsea and dry-tree wells from
a spar/DTU facility. The oil is processed,
stored, and exported from an FPSO.
Fig.1 shows the layout of the field.
In December 2008, the Kikeh field
began to produce solids at varying rates,
and by January 2010, after the failure
of a sand-screen completion on one of
the wells, the process facilities on the
FPSO started to receive approximately
1 t/d of sand. Once it became apparent
that solids production would be experienced throughout the life of the field, a
program had to be developed to address
the challenge.
Fig. 1Photograph of Kikeh field surface layout showing the Seadrill West
Menang semitender contracted for well workover in the left foreground, the
Murphy Kikeh spar DTU in the right foreground, and the Kikeh FPSO in the
background.
The project goal was to install wellhead desanders on the DTU immediately
downstream of the wellheads, which provide protection for the DTU choke valves,
production headers, fluid-transfer lines
(FTLs), and FPSO swivel and manifolds,
and lessen the accumulation of solids in
the FPSO process vessels. The objective
was to remove to the highest possible degree (and as soon as practicable) the produced solids that reached the surface in
the process flowlines.
By March 2011, the solidsproduction problems became worse, resulting in some of the wells being shut in.
The situation led to a proposal to install
five individual wellhead-desander units
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper OTC 24705, Upgrade of Spar Topside With Comprehensive Facilities SandManagement System, by Y. Loong, Murphy Sabah Oil, and H. Rawlins and D. Goo,
eProcess Technologies, prepared for the 2014 Offshore Technology Conference Asia,
Kuala Lumpur, 2528 March. The paper has not been peer reviewed.
Copyright 2014 Offshore Technology Conference. Reproduced by permission.
A revolutionary way
to treat saltwater.
Breathe easier with an environmental
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We developed the WaterWolf Dynamic Oil Recovery (DOR) System as a fresh approach to
conventional produced saltwater treatment alternatives. With its small footprint, ease of
installation and maintenance, and the complete elimination of expensive water treatment
chemicals, you can reclaim more oil than ever before.
Its time to look at produced water diferently.
1/12/2015 6:23:30 PM
Clean
well fluids
Wellhead
Solids-laden
well fluids
Wellhead
desander
Solids
accumulator
Solids
discharge
106
Equipment Performance
Three aspects of equipment performance
were analyzed to determine the efficiency
of the system. The first was measurement
of separation size through sampling, the
second was the net effect on hydrocarbon
production, and the third was the lifetime
of cyclonic inserts in regard to material
selection. Of these three criteriaall discussed in detail in the completepaper
the net effect on production is the most
critical, because it determines the return on investment for the facilitiesmodification work. The primary goal
of each wellhead-desander system is to
reduce the incoming solids loading to
<0.05% solids content.
The net operating effect of installing wellhead desanders on six of the
wells was dramatic. Hydrocarbon production is increased because the wellhead desander allows for opening of the
choke until the 0.05% sediment value
is reached. The total net oil increase is
an average of 1,000 B/D per well. The
amount of sand produced by each well
has a wide range, both within a single
well and across multiple wells. These values range from 130 to 1137 kg/d, with a
total sand production ranging from 400
to 2741 kg/d for these six wells. JPT
CONFERENCE:
EXHIBITION:
CONFERENCE
ORGANISERS
EXHIBITION
ORGANISERS
fawzi@aemallworld.com
dubprog@spe.org
WORLDWIDE
COORDINATORS
FAR EAST
meos@oesallworld.com
gerald@iemallworld.com
www.meos2015.com
JPT FEBRUARY 2015
COORDINATORS
TECHNOLOGY
well testing
With the success of hydraulic fracturing in the US shale-gas plays, why are more operating companies not using energized fluids to minimize the use of water, decrease the
amount of proppant required, and (theoretically) enhance long-term productivity? It
appears that Canadians have been somewhat more receptive to the idea and are more
willing to use energized fluids, with apparently positive results. Perhaps it is too early
in the game to convince operators in the US to take another look at this technology
with an open mind. Allow me to start a dialogue in this area.
The perception that using energized fluids is more expensive to achieve the same
goal could be one hurdle keeping operators from using them. Nonetheless, let us take
a step back and think of some of the more obvious, readily understood benefits: minimizing the use of water and decreasing the amount of proppant. Every operator knows
the vast quantities of water required in hydraulic fracturing. This is a commodity that
appears to be readily available, but it is not. And this problem will only be exacerbated with time. One of the insidious issues is that not all the water used during fracturing is recovered when flowing back the well, and whatever water is recovered cannot
be used in subsequent fracturing stages. Hence, there are huge costs associated with
water alone. Proppant, the nice, homogeneous sand grains that keep the fractures
open and permeable, is also costly. Decreasing the amount required per stage is equivalent to more money in the operators pockets. When one realizes that many countries
with enormous shale-gas plays do not have vast resources of readily available water,
then the game changes. This may even result in an excellent public relations opportunity when the general public realizes that oil companies care about the environment
and the precious resources.
For this issue of JPT, it was quite difficult to select three articles because there
were so many excellent papers. I have attempted to narrow down the many papers
to three that provide a broad perspective and the astute use of well-test data to be
insightful to all readers. The interested reader will find many good articles on this subject in the OnePetro library.JPT
108
Temperature Model
During Pressure-Falloff Test
After a well is shut in at the surface, afterflow at the sandface is negligible because
of low formation permeability. Upon cessation of injection, the cold injection
water begins to gain heat from the surroundings. Heat transfer during flowing
and shut-in conditions has been modeled
with an energy-balance equation, accounting for various resistances to heat
transfer. The resulting differential equations are solved numerically. However,
with robust assumptions, an analytical
expression can be developed for transient fluid temperature during falloff.
The heat flow from the formation into the
Field Example
This article, written by Special Publications Editor Adam Wilson, contains highlights
of paper SPE 166120, Modeling Wellbore Transient Fluid Temperature and Pressure
During Diagnostic Fracture Injection Testing in Unconventional Reservoirs, by
B.Nojabaei, SPE, The Pennsylvania State University, A.R. Hasan, SPE, Texas A&M
University, and C.S. Kabir, SPE, Hess, prepared for the 2013 SPE Annual Technical
Conference and Exhibition, New Orleans, 30 September2 October. The paper has not
been peer reviewed.
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
JPT FEBRUARY 2015
109
6,000
BHP
230
220
220
210
210
200
200
190
4,000
180
2,000
WHP
170
160
160
150
150
0
66.0
150
65.5
T, 24 hours
T, 0.5 hours
100
Initial T
0
2,000
4,000
65.0
, 24 hours
6,000
8,000
64.5
64.0
10,000
110
1,000
Density (lbm/ft3)
T (F)
200
50
75
Time (hours)
25
100
66.5
, 0.5 hours
50
180
50
100
Shut-in Time (hours)
250
Data
Model
190
170
BHT (F)
8,000
230
BHT (F)
10,000
-slope
After-Closure
Linear Flow
-slope
Preclosure
Linear Flow
100
-slope
Radial Flow
WHP
WHP
1
0
10
100
Shut-in Time (hours)
1,000
that the short-duration linear flow followed by the unit-slope response is the
norm. The authors speculate that the
dominance of the late-time unit-slope response, preceded by the half-slope signature, suggests that the fluid has not had
time to diffuse into the formation given
the high-rate injection over a short time
span in a very tight formation.
Discussion
The transient-temperature model and
the computational approach presented in the complete paper are primarily intended for the falloff test run in
any DFIT in an unconventional setting
to account for large changes in fluid
temperature at early times. As expected, the early-time injection data for the
modified Hall formulation also require
the linear-flow treatment in micro- and
nanodarcyformations.
Questions arise when downhole
pressure measurements become a necessity to avoid any uncertainty arising
This article, written by Special Publications Editor Adam Wilson, contains highlights
of paper SPE 164039, Creating Value Through Permanent Downhole Gauges in Oman
Block A Tight Gas Appraisal, by Badar Al Busafi, SPE, Robert A. Clark Jr., SPE, and
Imtiaz Adil, SPE, BP, prepared for the 2013 SPE Middle East Unconventional Gas
Conference and Exhibition, Muscat, Oman, 2830 January. The paper has not been
peer reviewed.
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
112
Certified Performance
Without The Wait
150
200
250
16.0
12.0
8.0
4.0
0.0
40.0
30.0
100
10.0
20.0
50
0.0
20,000
15,000
5,000
0
10,000
300
Time (minutes)
Fig. 1Example of a typical fracture-treatment surveillance illustrating a screenout being prevented by timely shutdown.
114
Recommendations
115
Breakdown
pressure
Stop
injection
3
4
Pressure
Injection
rate
Fracture
Pseudolinear flow
1
5
Well testing is the technique of establishing fluid flow in the reservoir by e ither
producing from or injecting into a well
and then changing or terminating the
flow rate to create a transient event, usually by shutting in the well at the surface. The resulting wellbore-pressure
response is then evaluated to derive reservoir properties, such as transmissibility and initial reservoir pressure.
Creating a hydraulic fracture bypasses wellbore damage and near-
wellbore stress concentrations and connects the wellbore to a significant portion
of the reservoir-layer thickness, enabling
a representative investigation of reservoir properties.
A typical DFIT sequence is shown
in Fig. 1.
Initially, the well is filled with water,
with care taken to purge the fluid column
of entrained air and gas.
Well
Pseudoradial flow
6
Instantaneous
shut-in pressure
Time
Introduction
Fracture
Shut-in Period
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
116
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Stellar search results.
118
Hydraulic-Fracture Modeling
Procedure/Execution
Conclusion
TECHNOLOGY
Niall Fleming,
SPE, is the leading
adviser for well
productivity and
stimulation with
Statoil in Bergen,
Norway. He has
previously worked as a production
geologist, chemist, and engineer.
Flemings main interest is within the
area of formation damage from drilling
and completion fluids and from wells
in production. He holds a PhD degree
in geology from Imperial College
London. Fleming has authored several
SPE papers, is an associate editor for
SPE Production & Operations, serves
on the JPT Editorial Committee, and
has been a member of the organizing
committees for several SPE conferences
and workshops.
120
formation damage
Brant Bennion, in the Journal of Canadian Petroleum Technology Distinguished
Authors series, titled his 1999 article on formation damage The Impairment of the
Invisible by the Inevitable and Uncontrollable, Resulting in an Indeterminate Reduction in the Unquantifiable. This is a brilliant definition of formation damage because
it reflects very well the lack of relevant data (in particular, permeability data) that
are essential for adequate design of drilling and completion fluids. In addition, the
opening sentence in Bennions article is as relevant today as it was in 1999: Formation damage is a hot topic these dayswith justifiable reason as we move to the
exploitation of more challenging oil and gas reservoirs in tighter, deeper, and more
depletedconditions.
In order to avoid some of the detrimental effects of formation damage, a key
aspect is laboratory testing of representative core material under representative
downhole conditions. Thin sections, dry scanning electron microscopy (SEM), cryogenic SEM, and X-ray diffraction have been used for a number of years to identify
the main damage mechanisms, mechanical or liquid, contributing to the observed
returned permeability measurement from coreflooding. High-resolution images can
be obtained from dry and cryogenic SEM, but they offer only a limited view at any one
time. One technique that has been applied recently to identify and quantify potential
formation damage is that of microcomputed tomography (CT). This provides highresolution scans of whole plugs and allows, for example, the identification of changes
in pore structure because of fines mobilization, and the visualization of the filter cake
after cleanup, depth of mud solids, and filtrate invasion. The combination of microCT with techniques previously used for formation-damage analysis is providing new
understandings in the interaction of drilling and completion fluids with core material.
One of the more frustrating aspects of coreflooding has been how to relate the
results obtained to potential well-inflow performance. Computational fluid dynamics
is one technique that appears to have bridged this gap. This technique incorporates
the data obtained from coreflooding into a model that recreates the actual well geometry, depth of formation damage, mud thickness, and distribution of restrictions in
the tubing, such as safety valves. With this approach, production rates can be obtained
that provide useful insights into selecting appropriate drilling and completion fluids,
for example.
Enjoy the papers selected. Formation damage is still a hot topic.JPT
Introduction
Micro-CT Scanning
Micro-CT scanning uses a class of scanner that can rapidly capture a series of
scans at high resolution; these scans can
be reconstructed with software to create
a 3D model of the object scanned. Resolution of significantly less than 1 m can
be achieved on smaller subsamples, reducing as the sample size and length increases. The time taken to capture a data
set also decreases as the resolution lowers, so the selection of operational settings is a balance of resolution vs. sampling times and data-set sizes. For scans
of intact core samples, a maximum resolution of 1015 m is achievable after
taking into account sample size and sampling time.
While micro-CT scanning provides
high resolution, to analyze entire core
samples nondestructively it does not
approach the resolution seen in thin-
section analysis or SEM. Although offering a higher resolution, these techniques
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper SPE 165110, Use of Micro-CT-Scanning Visualizations To Improve
Interpretation of Formation-Damage Laboratory Tests Including a Case Study
From the South Morecambe Field, by Justin Green, Ruaridh Cameron, and Ian
Patey, Corex, and Vishal Nagassar and Mark Quine, Centrica, prepared for the
2013 SPE European Formation Damage Conference and Exhibition, Noordwijk, The
Netherlands, 57 June. The paper has not been peer reviewed.
Difference-Mapping Technique
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
JPT FEBRUARY 2015
121
Unchanged
=
Changed
122
of micro-CT-scan data has tens of thousands of points, which means that to examine an entire core sample in three dimensions, there will be many millions,
and potentially billions, to compare. The
visualization of differences within coresample data sets will therefore be more
complex and will require powerful computers and software to produce good
data in a reasonable time. Fig. 2 shows
an example of real data and the result of
mapping the differences. Again, the lefthand image is data captured after the
test sequence, the middle image is the
same area of the sample before testing,
and the right-hand image is the map of
the differences between the two. Here,
those points that are the same are in
black, with a grayscale showing intensity
of difference. Here, the greatest change
is where the mudcake has developed,
in the first 12 mm into the core sam-
1/8/15
10:21 AM
(a)
(b)
100X
200 m
(c)
(d)
500X
50 m
500X
50 m
The Pet oleum Enginee ing Depa tment at The Pet oleum Institute invites applications/nominations fo the position of Depa tment Chai , sta ting Fall
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Requi ed qualifications of the candidate include: (1) PhD deg ee in Pet oleum Enginee ing o closely elated field suppo ted by elevant pet oleum
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The position of Depa tment Chai offe s highly competitive compensation and benefits. The total compensation package includes a tax-f ee 12-month
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Kindly apply di ectly to: https://ca ee .pi.ac.ae
124
drilling muds gave similar results, although the pure-NaCl-based drilling mud
showed slightly lower reductions at the
final permeability stage.
Micro-CT scanning was carried out
to see the distribution of permeability
change. Two micro-CT-scan data sets
were captured per sample: the first after
the sample had been prepared to a representative baseline saturation, and the
second after final drawdown but before
any removal of the mudcake. These data
sets were aligned, and the differences between the two sets analyzed and visualized. In all samples, the differences were
seen to be concentrated in the region
very near the wellbore, with scattered
change throughout the remainder of the
sample length. The change at the wellbore faces was concentrated in the mudcake attachments and the first few pores
into the samples; significant change was
not seen more than a few millimeters into
the samples. Some variation was seen
between samples, including the thickness/nature of the remnant mudcakes
and some evidence of flow channelizing
along higher-permeability streaks within
core samples.
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125
Introduction
Well A19A, some conclusions may be derived from the present study that could
support the understanding of the productivity behavior of Well A19A.
To achieve the objective, one CFD
model of both wells was constructed. Different completion options were provided, including the case of the hydraulically
fractured well. Several sensitivity analyses were carried out in order to depict the
well potential.
CFD Modeling
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper SPE 165113, Modeling Formation Damage and Completion Geometry in an
Old Well Enables Better Planning for New Wells: Gyda Development Case Study, by
M. Byrne, SPE, and E. Rojas, SPE, Synergy, and V.B. Holst, SPE, Talisman Energy,
prepared for the 2013 SPE European Formation Damage Conference and Exhibition,
Noordwijk, The Netherlands, 57 June. The paper has not been peer reviewed.
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
126
Fracture
Well
Assumptions
In order to construct the predictive
model, several assumptions were made.
As mentioned previously, two different
wells, A19 and A19A, were simulated;
however, these wells were located very
close to each other, so only one base
CFD model was built to represent both
wells, with different completion options
included. The CFD 3D numerical models used can incorporate a level of detail that extends to the perforation-size
level (diameter and length). However,
because of the excessive number of cells
that would result, it is not possible to
generate a model that includes the entire formation thickness and all perforations. In order to evaluate the productivity of the perforation case, two small
models (1-ft thickness) were constructed to determine a productivity ratio between the well completed as an open
hole and the well completed as cased
and perforated.
The entire model (total net sand)
was built as an open hole consisting of
an undamaged reservoir zone, the well,
Results
Several sensitivity analyses were run in
order to evaluate real-well performance.
The sensitivities included scenarios with
and without fractures and the crushed
zone around the perforation, as well as
different drawdown conditions. Table 1
depicts the results of the sensitivities
for the different cases evaluated, while
Cases
Rate (STB/D)
No Fracture
1,641
5,416
1,639
5,412
Effectively no flow
1,038
2,427
5,123
17,567
3,839
8,973
13,161
12,448
127
a fracture, it is apparent that the position of the fracture relative to the higher-
permeability layers has a significant effect on wellproductivity.
Production in B/D
Drawdown=110 bar
6,000
5,000
4,000
3,000
2,000
1,000
0
C&P (Damage)
Fracture (46 m)
Fracture (168 m)
Production in B/D
Drawdown=300 bar
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Conclusions
C&P
C&P
(Damage) (No Damage)
Fracture
(46 m
Top)
Fracture
(46 m
Middle)
Fracture
(46 m
Bottom)
Fracture
(168 m)
Figs.2 and 3 display the plots of the production for each scenario evaluated.
The openhole and perforated cases
were run at the same drawdown conditions; the results were almost identical.
The openhole case considers the entire
open interval, whereas the perforated
case considers only the zones that were
perforated. The cases with the crushed
zone around the perforations indicate
that this zone will have a significant effect on production, and underbalanced
perforation (in which the crushed zone
can be interpreted to be reduced) should
be beneficial. The crushed zone was observed to result in a reduction in flow rate
of more than 35%.
The case using a fracture length of
168 m is a hypothetical case, but it does
enable comparison with the other case
128
0.04
0.01
0.02
0.03
0.04
0.05
0.07
0.06
Time
(a)
40
20
Model
Field
Introduction
Model
Field
0.02
Drawdown
0.01
0.02
0.03
(b)
0.04
0.05
0.06
0.07
Time
Fig. 1Simulation results for Well 2 with an analytical model for well
productivity with fines migration. Blue stars correspond to well data. The
model match is shown in hollow black circles.
Fines-Migration Modeling
The traditional mathematical model
for fines migration assumes release intensity to be proportional to differences between the current and critical values of velocity, salinity, pH, and stress.
The shortcomings of the classical model
for fines migration have been discussed
in the literature. Another approach to
fines-mobilization modeling is use of the
maximum-retention function. This approach was adopted in the current work.
Steady-state and quasisteady-state regimes of flow toward wells are described
by analytical modeling. In the current
work, the analytical model was developed for unsteady-state fines lifting, migration, and straining in fractured wells.
This article, written by JPT Technology Editor Chris Carpenter, contains highlights of
paper SPE 165108, Fines Migration in Fractured Wells: Integrating Modeling With
Field and Laboratory Data, by M. Marquez, W. Williams, and M. Knobles, Chevron,
and P. Bedrikovetsky, SPE, and Z. You, SPE, University of Adelaide, prepared for the
2013 SPE European Formation Damage Conference and Exhibition, Noordwijk, The
Netherlands, 57 June. The paper has not been peer reviewed.
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
JPT FEBRUARY 2015
129
0.05
Model
Rate
Field
0
0
0.005
0.01
0.015
0.02
Drawdown
(a)
0.025
Time
0.03
0.035
0.04
0.045
0.05
Model
200
Field
100
0
0
0.005
0.01
0.015
0.02
(b)
0.025
Time
0.03
0.035
0.04
0.045
0.05
Fig. 2Simulation results for Well 4 with an analytical model for well
productivity with fines migration. Blue stars correspond to well data. The
model match is shown in hollow black circles.
Rate
Laboratory Assessment
of Fines Production
Model
0.03
Field
0.02
Drawdown
0.01
0
(a)
100
0.005
0.01
0.015
0.02
Time
0.025
0.03
0.035
0.04
Model
Field
50
0
0
0.005
0.01
0.015
(b)
0.02
Time
0.025
0.03
0.035
0.04
Fig. 3Simulation results for Well 6 with an analytical model for well
productivity with fines migration. Blue stars correspond to well data. The
model match is shown in hollow black circles.
130
Laboratory experiments were conducted to assess the potential for fines production and permeability impairment
caused by reservoir depletion and nearwellbore stresses at various flow conditions. It is important to note that conventional critical-velocity tests performed
on core material before field development did not show evidence of fines migration. Those results were supported by
X-ray-diffraction data and thin-section
images of the core material, showing relatively low clay content and good cementation by tight grain-to-grain contacts.
One limitation of conventional
critical-velocity tests is that they do not
capture flow conditions in fractured
wells adequately, in particular the effect of multiple operational shutdowns/
restarts and pressure-buildup tests,
which can induce stress cycling and frictional forces capable of breaking and
crushing in the formation and the proppant pack, and releasing fine particulate
material therefrom. Changes in reservoir
stresses with depletion can intensify this
effect further, increasing the potential for
fines production, skin increase, and productivity loss through the life of the well.
To address this gap, alternative methods
to test fines migration in the laboratory
were considered in this study.
The first set of tests involved
single-phase-flow experiments with
surging steps to simulate the effect of
multiple shut-ins and restarts of production. A two-phase coreflow experiment
was also conducted with coinjection of
synthetic formation brine and treated
kerosene, starting with kerosene at irre-
200
10 mL/min
160
120
k/k initial =52%
at 30,000 PV
80
40
kair =283 md
0
(a) 0
6,000
12,000
18,000
24,000
30,000
36,000
42,000
100 mL/min
120
100
k/k initial =48%
at 30,000 PV
80
60
40
kair =294 md
20
0
(b)
40,000
80,000
120,000
160,000
200,000
Fig. 4Single-phase coreflow tests with surging and constant flow rate.
Permeability to liquid vs. cumulative injected fluid in PV: (a) 10 mL/min; (b)
100 mL/min. k=permeability; kair=air permeability; kinitial=initial permeability.
1.000
Relative Permeability (fraction)
ducible water saturation (Swi), and progressively increasing the water-cut ratio
(oil/water ratios of 90:10, 75:25, 50:50)
to 100% synthetic formation brine. For
a discussion of the procedure for conducting single-phase and two-phase
coreflow experiments, please see the
completepaper.
Permeability to brine vs. cumulative injected fluid in pore volumes (PV)
is plotted for each sample in Fig. 4. As
seen in the figure, approximately 50% of
the initial permeability for each sample is
lost after 30,000PV of cumulative injection, regardless of flow rate.
Unlike conventional critical-velocity
tests, in which fines production and permeability impairment are correlated
to a critical velocity for mobilization of
fines, the results in Fig. 4 suggest that the
amount of damage may be correlated to
a critical cumulative volume of fluid injected through the sample, in this case
30,000 PV.
A possible reason that a number of
conventional critical-velocity tests do not
show evidence of fines migration, despite
field evidence in support of it, is that
these tests often flow a limited volume of
fluid through the sample (e.g., a few hundred PV).
To assess the impact of multiphase
flow and increasing water cuts on fines
production in the vicinity of the fracture face and the annular packa region subjected to large volumes of fluid
flowan extended two-phase coreflow
experiment was conducted by coinjecting synthetic formation brine and treated kerosene, starting with kerosene at Swi
and progressively increasing the water
cut (oil/water-injection ratio=90:10,
75:25, 50:50) until synthetic formation
brine at irreducible oil saturation (Sor)
was reached, as illustrated in Fig. 5. Care
was taken to remove drilling-fluid filtrate
from the sample while preserving the native wettability of the sample.
Steady-state relative permeability
vs. water-saturation data for an extracted sample, and a wettability-restored
sample, are shown in Figs. 6a and
6b,respectively.
Direct comparison of Figs. 5 and 6
reveals a significantly-more-damaged
sample from the two-phase extendedflow test (Fig. 5). For instance, the relative permeabilities to oil (Ko) at 75:25
ko at Swi
0.100
90:10
75:25
kw at Sor
0.010
50:50
kair =301 md
0.001
0
3,500
7,000
131
EW
N
1
38:62
kw at Sor
0.1
97:3
krw
75:25
kor
0.01
Extrapolated
50:50
kair=266 md
0.001
0.0
(a)
0.2
0.4
0.6
0.8
1.0
1
38:62
Relative Permeability (fraction)
Drilling
Performance
Simulation and
Prediction
(DPSP)
Technical
Section
kw at Sor
0.1
97:3
75:25
krw
kor
Extrapolated
50:50
0.01
kair=266 md
0.001
0.0
(b)
0.2
0.4
0.6
0.8
1.0
Fig. 6Steady-state relative permeability vs. water saturation for (a) extracted
sample and (b) wettability-restored sample.
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