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Reservoir Management

Production Optimization

DELIVERING KNOWLEDGE. DEVELOPING COMPETENCE. 1


1 2008 PetroSkills LLC, All Rights Reserved
Reservoir Management Pyramid
Recovery
Optimization

Production
Monitoring

Field Implementation

Development Planning

Reservoir Characterization

Set the Strategy What Value to Maximize

Reservoir Management 7.2


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Production Optimization

Target Oil (and Gas)


Residual Oil in the Flooded Region
Target for EOR processes
Remaining Oil in the By-Passed Region
Target for improved conformance (sweep)

Reservoir Management 7.3


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Causes for Low Conformance

1. Vertical Heterogeneitysevere capacity contrast


between layers, presence of inter-connected
fractures, natural or induced faults, compartments,
and lineations
2. Areal Heterogeneityanisotropy, well pattern, well
spacing, well location with respect to structure,
stratigraphy, and proximity of fluid-fluid contacts
3. Well completion and perforation philosophy with
respect to permeability profile, water and gas
saturation distributions, and proximity of fluid-fluid
contacts
4. Gravitational segregation of fluids due to density
contrast

Reservoir Management 7.4


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Options to Improve Conformance

Infill Drilling
Pattern Rotation (Realignment)
Horizontal and Multilateral Wells
Conformance Improvement

Reservoir Management 7.5


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Why Infill Drilling?

Enhance Hydrocarbon Recovery (and Profit)


From Your Reservoir by Decreasing Well
Spacing
Contact Isolated Compartments
Increase Sweep Efficiency
Increase Injection Processing Rates
Usually Some Degree of Interference With
Existing Wells

Reservoir Management 7.6


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
General Comments on Well Spacing
Homogenous Reservoirs:
Additional wells accelerate production
No general correlation between recovery efficiency and
well spacing
Look for economic optimum
Meet market requirements
Protect against competitive drainage

Heterogeneous Reservoirs:
Additional wells can connect more reservoir volume
and improve recovery

Injection Projects:
Inter-well pressure limitations can determine spacing

Reservoir Management 7.7


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Infill Drilling in Oil Reservoirs
Barber (JPT, August 1983) Evaluated Infill Drilling
Success in 9 Fields in Texas, Oklahoma and Illinois
Well spacing decreased from 40 acres to 20 and eventually 10
acres per well
Projects added 60.8 MMBO of new reserves from 870 wells
Increased recovery from the new wells was between 56 and
100 percent of the infill well production
Where quoted infill drilling was expected to increase ultimate
recovery by 4-8 % of OOIP
Wu et al (SPE 19783, 1989) Statistically Evaluated Infill
Drilling Programs in 25 Waterflooded West Texas
Carbonate Reservoirs (14 Clearfork, 11 San Andres)
For the Clearfork reservoirs the median increase in ultimate
recovery due to infill drilling was 7.8 % OOIP
For the San Andres reservoirs the median increase in ultimate
recovery by infill drilling was 11.4 % OOIP

Reservoir Management 7.8


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Infill Drilling in Gas Reservoirs
Due to Low Viscosity Gas Wells Can Cause Pressure
Drops at Distances Well Beyond Their Apparent
Drainage Areas.
Rate Forecasts for Infill Drilling Should Always Factor in
Some Degree of Interference With Existing Wells.
Degree of Interference Best Determined by Simulation
Infill Drilling in Low Permeability (< 0.1 md) Reservoirs
Usually Attractive
Can increase ultimate recovery by accelerating gas
production into an economic time frame (50 years vs 200+)
Will still see interference in homogeneous reservoirs just
takes longer to show up

Reservoir Management 7.9


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Infill Drilling -
Reserve Growth vs Rate Acceleration
An Example Infill Drilling Study
h = 30 Pi = 8000 psia
PhiHC = 0.07 Xf = 300 FCD = 0.5 (parent well)
k = 0.04 md Xf = 500 FCD = 5 (infill wells)
T = 250 F 640 Ac OGIP = 18830 MMscf
Produce parent well at 2000 psia WHP initially. Reduce WHP by 500 psi every 2 years.
After 10 years, hold constant at 350 psia WHP. Produce all infill wells at 350 psia WHP.

EUR, Time to Res Cum @


Spacing Start Year
MMscf EUR, yr Growth 50 yr
640 ac 0 13538 200 0 7573
320 ac 10 14775 98 1237 12296
160 ac 12 & 14 15552 48 777 15552
90 ac 16 & 20 15653 37 101 15653

Reservoir Management 7.10


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Reservoir Factors Promoting
Infill Drilling
Geologic complexity
Faults
Permeability variations
Lateral discontinuities
Low permeability
Stress sensitive permeability
Factors that limit effective stimulations
Thick pay

Reservoir Management 7.11


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Areas to Evaluate for Infill Drilling

Wells With Shallow Declines


Also look at benefits of workovers and facilities
enhancements
Areas Where Volumetric OOIP or OGIP >>
Performance Based Values
Must understand the reason for the discrepancy
Bad volumetric estimate?
Material balance pressures incorrect?
Geologic data consistent with compartments?

Reservoir Management 7.12


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Pattern Rotation

Align Injection Patterns up With Preferred


Permeability Trends
Requires Some Flexibility in Initial Pattern
design
Inverted 9-spot pattern ideal if sufficient injectivity
can be maintained initially

Reservoir Management 7.13


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
One Possible Conversion:
9-spot to Line drive

Reservoir Management 7.14


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Horizontal and Multilateral Wells

Increase Rates
Thin reservoirs
Tight reservoirs
Viscous oils
Encounter natural fractures
Reduced Water and Gas Coning
Reduced Sand Production
Improved Areal Sweep
Accelerated Recovery
Reduced Investments and Operating Costs
Reservoir Management 7.15
Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Basic Multilateral Configurations

Intersect fractures,
reduce flowing Commingle Shallow low
friction pressure horizons, improve pressure or
productivity heavy oil sands
Illustration from Oil Field Review,
Schlumberger (Autumn 2002)
Reservoir Management 7.16
Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Multilateral Well Junction Classifications

From Oil Field


Review,
Schlumberger
(Autumn 2002)

Reservoir Management 7.17


Production Optimization
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Zuata Area of the Faja Heavy Oil Belt

From Oilfield
Review,
Schlumberger
(Autumn 2002)

Reservoir Management 7.18


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Types of Multilaterals Used in the Faja Area

From Oilfield Review,


Schlumberger (Autumn 2002)
Reservoir Management 7.19
Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Single Laterals vs. Multilaterals Zuata Area

From Oilfield Review,


Schlumberger (Autumn 2002)

Reservoir Management 7.20


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Conformance to Improve Areal Sweep

Targeting Wells for Bypassed or Slow Moving


Hydrocarbons
Maintaining IWR Balance
Reservoir and individual patterns
Re-directing Injection
Producing Shut-in Wells
Producing High WOR and GOR Wells
Adding Artificial Lift
Upgrading Surface Facilities to Accommodate
Increased Volumes
Reservoir Management 7.21
Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Conformance to Improve Vertical Sweep

Perforate All Pay


Profile Control in Producers and Injectors
Plugging High Permeability Thief Zones /
Fractures
Producing All Layers to High WOR
Selective Stimulation of Low Permeability
Layers
Injection Rate/Pressure Adjustments to
Maintain Production From High WOR Wells
Reducing Gathering System and Wellhead
Pressures
Reservoir Management 7.22
Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Foam Block Against Gas Coning / Cusping
1) Injection of surfactant 2) Initial foam generation
solution in completion brine by chase gas injection
Gas Gas

Foam
Surfactant Surfactant
Oil Oil

3) Further foam generation by


4) Foam blocking state
surfactant alternated gas injection
Gas Gas

Gas Surfactant Foam


Foam Oil block
Oil

Reservoir Management 7.23


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Targeting By-Passed Oil With Existing Wells

Injecting Gas in a Water Drive or Waterflooded


Reservoir May Contact Oil That Has Been By-
Passed Due To:
Structural location above highest well attic oil
Water underrunning
Water running above discontinuous shale lenses
Oil shielded below the lens
Overall reservoir heterogeneity

Reservoir Management 7.24


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Enhanced Oil Recovery (EOR) Process

Minimize retentive capillary force


Changing rock wettability
Eliminate retentive capillary force
Lower mobility ratio between oil and displacing
fluid
Promoting increased contact

Reservoir Management 7.25


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Enhanced Oil Recovery Processes
Thermal: Miscible:
Hot Water Flooding CO2
Steam (Soak) Enriched Hydrocarbon
In-situ Combustion Gas
Electrical Heating N2

Chemical:
Surfactant, Caustic
Polymer (& In-depth
plugging)
Micro-organisms

Reservoir Management 7.26


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Reported US EOR Projects

Oil & Gas Journal April 17, 2006

Reservoir Management 7.27


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Reported US EOR Production

Oil & Gas Journal April 17, 2006 U.S. Oil Production in 2005 6.83 x106 stb/d

Reservoir Management 7.28


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
EOR Projects Outside the U.S.

Canada
Steam, combustion HC miscible, CO2
Total EOR Production about 295,000 bpd (3x106 bpd
total)
Indonesia
Duri field, Sumatra 220,000 bpd steam flood
Other projects in China, Columbia, India,
Mexico, Trinidad, Turkey, Venezuela
New interest in Europe for injection of CO2 from
industrial plants injection as a means of
sequestration
Reservoir Management 7.29
Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Benefits of Thermal Processes

Increased temperature reduces oil viscosity


Reduced viscosity increases flow rates often
to the point of now being economic.
Steam reduces Sor due to distillation.
Adds Pressure to system allowing more driving
force.

Reservoir Management 7.30


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Hot Water & Steam Flooding

viscous oil

hot water
injection production
well well

steam

viscous oil

Reservoir Management 7.31


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Steam flooding
Impact on Reservoir / Stability / Sweep: Steam Injection:
- Use of horizontal wells - Quality
- Fluid compatibility (scale, asphaltenes, H2S)
- Temperature (related to pressure)
- Reservoir characterization, data gathering
- Steam override, fingering? - Thermal cement, insulation

Production:
- Steam breakthrough
- Pump limitations
- Well geometry Steam

Hot Oil
Cold Oil

Oil Mobility Improvement: Lower Residual oil (Sor< 5%):


- Heated zone only - Phase behaviour, Distillation
- Drive, pressure gradient
Enhancements:
Better distribution of injected steam
Soak: Alternating steam injection / oil production used also to manage steamfloods
Foam: Add surfactants to injected steam
Reservoir Management 7.32
Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Multilaterals and SAGD

Typical steam
assisted gravity
drainage (SAGD)
well configuration in
Athabasca Oils
Sands (length of
horizontal sections
500 750 meters)

From Oilfield Review,


Schlumberger (Autumn 2002)

Reservoir Management 7.33


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
In-Situ Combustion

combustion
burn
injection gases
front
well

air (&
steam production
water) well

viscous oil

steam
condensation
vapors

Reservoir Management 7.34


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
The Concept of Miscibility

Two fluids are miscible when they can be


mixed together in all proportions and the
mixture remains as a single phase.

Gasoline and Kerosene

No Interfacial Tension (No Interfaces)

Reservoir Management 7.35


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Reduction in Residual Oil Saturation
Residual Oil Saturation, %PV

Capillary Number, U/
Reservoir Management 7.36
Production Optimization
2008 PetroSkills LLC, All Rights Reserved
The Miscible Displacement Process

Displacement Efficiency Increased to Almost


100% of the Contacted Volume.
Miscible Displacement Process has Same (or
Worse) Concerns as Immiscible Displacement
with:
Vertical sweep efficiency
Areal sweep efficiency
Alternating Water Injection Helps Control
Mobility

Reservoir Management 7.37


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Types of Miscibility
First-Contact
Always single phase with reservoir oil
Propane LPG
VERY EXPENSIVE
Multiple-Contact
Initially forms two phases with reservoir oil
Miscibility generated over multiple contacts and
mass transfer between injected solvent and
reservoir oil
Most miscible injection projects use multiple-
contact fluids

Reservoir Management 7.38


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Miscible Flooding Limitations

Pressure / Composition Range Where


Miscibility Can be Generated
Minimum pressure increases with reservoir
temperature
Higher pressure required for injection gases with
large amounts of nitrogen or methane

Solvent Availability

Reservoir Management 7.39


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Chemical Methods
Surfactant and Alkaline Flooding
Reduce interfacial tension between water and oil
Lower Sor
Surfactant economics difficult due to high costs
Polymer Injection
Added to water to increase viscosity and lower
mobility ratio
Injected as a blocking agent to modify vertical
sweep
Chemical Methods Not Widely Used
Compared to Thermal or Miscible Solvent
Processes
Reservoir Management 7.40
Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Surfactant Flooding

Displacement Transition
Waterflood Zone

Postflood Residual
Saturation

Displacement Transition
Surfactants in reservoir Zone

Postflood Residual
Saturation

Reservoir Management 7.41


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Polymer Flooding

Water Injection
Production Production

Water & Polymer Injection


Production Production

Reservoir Management 7.42


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Selecting an EOR Process

Can Make First Pass Based on Technical


Screening Criteria
Oil viscosity
Reservoir depth (related to pressure)
Reservoir permeability
Final Selection Requires Thorough Study and
Economic Evaluation

Reservoir Management 7.43


Production Optimization
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Viscosity Ranges for EOR Methods

Reservoir Management 7.44


Production Optimization
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Depth Ranges for EOR Methods

Reservoir Management 7.45


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Permeability Ranges for EOR Methods

Reservoir Management 7.46


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Low Salinity Water Injection
SPE 93903* (2005)
Injection of Low Salinity Water Appears to
reduce Sorw
Experimental Studies
Core floods with North Sea oil
Increased oil recovery 10-40%
Log-inject-log test Middle East reservoir
Reduced Sorw 25-50%
4 single-well chemical tracer tests Alaskan North
Slope
Increased waterflood recovery by 8 19% (6-12% OOIP)

* P.L. McGuire et al, BP Alaska


Reservoir Management 7.47
Production Optimization
2008 PetroSkills LLC, All Rights Reserved
Low Salinity Water
SPE 102239 (2006)
Process Appears to Alter Reservoir Wettability
to More Water-Wet
Process Lithology Dependent
Only Demonstrated in Clastics
Recovery Benefit Increases With Abundance of
Some Clays
Requires Substantial Change in Water Salinity
Consistently < 10% of Connate Salinity
Probably < 25% or 5000 ppm absolute threshold

Reservoir Management 7.48


Production Optimization
2008 PetroSkills LLC, All Rights Reserved
EOR Projects Require More Attention

Need Detailed Reservoir Description to


Evaluate Heterogeneity
Pilot Testing Staged Implementation
Expanded Reservoir Surveillance Program to
Ensure Efficient Use of Injection Fluid
Up-front Invesments for New Facilities and
Injection Fluid Hurt Economics
Operating Costs Will Also be Higher

Reservoir Management 7.49


Production Optimization
2008 PetroSkills LLC, All Rights Reserved