Applied Reservoir Geology: Chapter 1 - Introduction Chapter 1 - Introduction

Applied Reservoir Geology
Chapter 1 - Introduction
Copyright 2008, NExT, All rights reserved
The Geological Integration Process
Stage 1
Regional Geology
Provenance, Stress Regime
Structural Geology
Local Geology
Depositional Process
Depositional Environment
Stratigraphy
Closure
Genetic Units
Flow Regime
Facies Distribution
Depositional Sequence, Architecture
17 Sd
21 Sd
20 Sd
IMM 9
22 Sd 23 Sd 22 Sd
Stage 2
The Geological Integration Process
Petrophysics Integration Process Model

Lithofacies Rock & Pore Types
Petrology, Miner alogy, Dia genes is, Porosity Por os ity, Pe rmea bility, Por e size dis tribution
Fluids
Capillarity, N MR, Por e Sizes, Satur ations , Fluid Colum n Heights Pres sur e or H eight Relative Perm eability Rec ove ry Fa ctor , PVT Fractional Flow
Swi Sor
Stage 2
Depositional Archite ctur e
. . . . . . . . . . . . .
. . . . . . . .
Facies B Facies A
Core Perm
Facies C
. . .. A .. . . .. . B .. ... .. . . .. . . C
Core Por osity
Por e Size s
Sw i
A
Sw
Non-wetting Saturation
Formation Evaluation
Reservoir Com partments & Flow Units

Pres sur es, Fluid Density , Fluid Contacts Stor a ge Flow D elive ry Ca pa city Ca pa city Spe ed % Cum . K H Modified Lorenz, Stor age & Flow Capacity
Stage 3
Well Log Models Lithology, Poros ity Res is tivity Density
Lithology, Poros ity, Fluid Satn, Ne t Pay
Depth
Depth
* **** ** ** ** * * **
st nd Sa
i Lm
C Gr B A
Sw
ne o
ne
i te om
o t es
**

Pres sur e
C B A
% PhiH %KH K/P hi(1-S w)
l Do
Water
Neutron
% Cum . B VHC
Amplitudes , AVO, Cohe rency, Vp/Vs 3D Volume
Seismic Models
Production Data
Pres s. Transient, Perm eability , Res ervoir Limits Fetk ovich Type Curves Volume in-place , Perm eability
* * ** *
Reservoir & Geostatistics Models

Performa nce Simulation, GCOMP, GAS3D Por os ity, Pe rm, Pay Distribution EOR sweep, by-pa ssed pay
Reservoir Management
Well & Field Performa nce
Oil
Stage 4
Pres sur e Horizon Slic es Attribute Maps
A A B B C
Rate
* *
A AB B
Time
Fundamentals of C Petrophysics and Subsurface Integration
C C
Pay Maps
. . . .. .. .
Performa nce Maps
Gas Water
10/19/ 97
11 96ori en t. ppt
Time
Time

is a complex interaction between physical, chemical, and time processes that needs to be understood from a number of viewpoints. In this course, we will deal with the GEOLOGICAL point of view.
The Petroleum Reservoir
What is Petroleum?
Petroleum:
a natural yellow-to-black liquid hydrocarbon found at and beneath the earths surface. Petroleum is a mixture of many different hydrocarbons
Hydrocarbon:
an organic compound made up of carbon and hydrogen atoms
History of Petroleum
History of petroleum use

First Use Egypt , China, Babylon, America First Drilling China: 800/250m in 347 AD. America: 70/25m in 1859 AD. First Product Kerosene for lamps. Gasoline was unwanted by-product. Demand Increase with Industrial Revolution Internal Combustion Engine(1885) Global Economic Growth
The early days.
The Ubiquitous Barrel
One barrel of oil 42 gallons / 159 litres

45 % Gasoline - 19.5 gallons Fuel Oil - 9.2 gallons 21 % Jet Fuel - 4.1 gallons 9% Asphalt - 2.3 gallons 5% Kerosene - 0.2 gallons 0.5% Lubricants - 0.5 gallons 1.2% Petrochemicals/other products 6.2 gallons 14.7%
9
World Energy Demand 1900-2100

Careers in Oil & Gas Hydroelectric 1993 Will be Important
100 BILLION BARRELS
New Technologies New Technologies New Technologies New Technologies
100
Solar Wind Geothermal
80 Billion Coal Equivalent (GBOE) 40 Natural Gas Nuclear Electric
Decreasing Decreasing Fossil Fuels
20
Crude Oil Tar Sands/Oil Shales
1900
1920
1940
1960
1980
2000
2020
2040
2060
2080
2100
10
after Edwards, AAPG 8/97

Price of Oil 1861 to Today
June 2008 $ 145
March 2010 $ 72 Feb 2009 $ 39
11
Proved oil reserves
61.0%
Total 2007 Reserves = 1,238 billion barrels
3.2 %
5.5 %
9%
9.5 %
11.6 %
From BP Statistical Review of World Energy 2008
Distribution of proved oil reserves 1987-2007
3ero.
1er. 1er 3ero.
1er 2do.
2do.
3ero.
2do.
BP Statistical Review of World Energy 2008
Oil production by area

Total 2007 Production = 81.5 million barrels per day
Oil consumption by area

2007 Consumption = 86 million barrels per day Total 2007 Production = 81.5 million barrels per day
Reserves Coal and Gas
16
4o.
3ero.
2do. 1er
World Oil Reserves by Rock Type
18
Energy Consumption
The CO2 Problem
The United States' "400-plus coal-fired power plants emit more toxins into the air than any other single source; some 42% of the US total, according to the 2002 Toxic Release Inventory (TRI)"
Half of all Americans live within 30 miles of a coal-burning power plant "...which, in addition to mercury, emit more than 361,000 tons of other toxins including vanadium, barium, zinc, lead, chromium, arsenic, nickel, hydrogen fluoride, hydrochloric acid, ammonia and selenium."
Are we replacing reserves?

Even though the early oilmen worked with primitive exploration techniques, the peak year for discoveries of giant oil fields (ultimate recovery of 500 mbbl oil or more) in the U.S. was 1930in the world, 1962. 80% of the oil produced in 1995 was found before 1973. We now find one barrel for every four we consume.
In the last 20 years, only three fields (in Norway , Columbia and Brazil ) have been found with more than one billion barrels each. None produce more than 200,000 barrels a day. From 1990 to 2000 a total of 42 billion barrels of new reserves were discovered. In the same period the world consumed 250 billion barrels.
Are we replacing reserves?
The Reservoir Lifecycle
Exploration The reservoir is discovered, but not yet understood (size, contents, etc.) Delineation/Appraisal Size and extent of reservoir delineated & reservoir parameters evaluated Development Understanding of reservoir improves, production grows Maturity Reservoir well understood, produced, depleted, secondary recovery
23

Exploration
Reservoir Life Cycle and Business Value
Appraisal
Development
Maximize Production Economically
Maturity
+
Cash Flow
Accelerate Production
Maximize Recovery Economically
Time Minimize Capital Expense Minimize Operating Expense Optimized Development Defer Abandonment Traditional Development
24
Domain Integration
Prediction
Geophysics Petrophysics Reservoir Drilling Computing Engineering
Description Characterization Performance Optimization
Geology
25
Prudhoe Bay - 2001
26
Prudhoe Bay - 2001
27
Prudhoe Bay Original 1969 Map
28
Prudhoe Bay Field Oil - 28API
L. Cretaceous
L. Jurassic U. Triassic Triassic Carboniferous Source Rocks: 1. L. Cretaceous marine shale (HRZ Fm.) 2. L. Jurassic marine shale (Kingak Sh.) 3. U. Triassic marine carb. & shale
29
Prudhoe Bay Field Parameters 1968 Arco Sohio 22 Billion Barrels 1977 9.6 BSTB 1.6 MMSTB/Day 1989 13 BSTB 30TCF High quality sandstone with discontinuous shales Gravity, Gas Cap expansion, solution gas
30
Discovery OOIP First Production Initial Recovery Estimate Maximum Production Rate Estimated Start of Decline 1997 Recovery Estimate Gas Cap Reservoir Drive Mechanism
Prudhoe Bay Field Development
Enhanced value and field production due to technology and improved reservoir understanding. Better 3D Seismic Reservoir Models/Modeling 3x Number of Wells Horizontal/Multilateral Wells Coiled Tubing Waterflood
Gas Injection (Cycling) Miscible Gas EOR New Zones/Satellite Fields Re-Perforations Formation Damage Mitigation
31
Prudhoe Bay Field Maturity
32
Prudhoe Bay Field Stratigraphy
33
Prudhoe Bay Field Stratigraphic Section
34
Prudhoe Bay Field Depletion Mechanism
35
Prudhoe Bay Field Development & Production
36
Prudhoe Bay Field Summary
OOIP Estimate Ultimate in 1970 1997
22 Billion Barrels 9.6 Billion Barrels (Rf = 44%) 13.0 Billion Barrels (Rf = 59%)
Note: 38% more oil to be produced due to improved geological understanding and improved technology
37

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