Thursday, October 31, 2024

Fundamentals of Reservoir Management - Synergy and team

 

Although the synergism provided by the interaction between geology and reservoir engineering has been quite successful, reservoir management has generally been unsuccessful in recognizing the value of other disciplines (e.g., geophysics, production operations, drilling, and different engineering functions).

The prime objective of reservoir management is the economic optimization of oil and gas recovery, which can be obtained by the following steps:

  • Identify and define all individual reservoirs in a particular field and their physical properties.

  • Deduce past and predict future reservoir performance. 
  •  Minimize drilling of unnecessary wells. 
  •  Define and modify (if necessary) wellbore and surface systems. 
  •  Initiate operating controls at the proper time. 
  •  Consider all pertinent economic and legal factors.

Thus, the basic purpose of reservoir management is to control operations to obtain the maximum possible economic recovery from a reservoir based on facts, information, and knowledge. The engineering system of concern to the petroleum engineer as being composed of three principal subsystems:

      •  Creation and operation of wells.    

      •  Surface processing of the fluids. 
      • Fluids and their behavior within the reservoir.

The first two subsystems depend on the third because the type of fluids (oil, gas, and water) and their behavior in the reservoir will dictate how many wells to drill and where, and how they should be produced and processed to maximize profits.  

The suggested reservoir management approach emphasizes interaction between various functions and their interaction with management, economics, proration, and legal groups. 

The reservoir management model that involves interdisciplinary functions has provided useful results for many projects.

  1. When should reservoir management start? 

The ideal time to start managing a reservoir is at its discovery. However, it is never too early to start this program because early initiation of a coordinated reservoir management program not only provides a better monitoring and evaluation tool, but also costs less in the long run. Most often reservoir management is not started early enough, and the reservoir, wells, and surface systems are ignored for a long time. Many times, we consider reservoir management at the time of a tertiary recovery operation. However, it is critical and prerequisite for an economically successful tertiary recovery operation to have a good reservoir management program already in place. 

What, how, and when to collect data? 

To answer this question, we must follow an integrated approach of data collection involving all functions from the beginning. Before collecting any data, we should ask the following questions:

-       Are the data necessary, and what are we going to do these data? What decisions will be made based on the results of the data collection?

-    What are the benefits of these data, and how do we devise a plan to obtain the necessary data at the minimum cost ?

 

The reservoir management team must prepare a coordinated reservoir evaluation program to show the need for the data requirement, along with their costs and benefits. It must be emphasized that early definition and evaluation of the reservoir system is a prerequisite to good reservoir management. The team members must convince the management to obtain necessary data to evaluate the reservoir system. In addition, the team should participate in making operating decisions. 


What kinds of questions should be asked if we want to ensure the right answer in the process of reservoir management?

      •  What does the answer mean ?  

      • Does the answer fit all the facts; why or why not ? 
      • Were the assumptions reasonable ? 
      • Are the data reliable ? 
      • Are additional data necessary? 
      • Has there been an adequate geological study ? 
      •  Has the reservoir been adequately defined ?

Setting a reservoir  management strategy requires knowledge of the reservoir , availability of technology , and knowledge of the business , political and environmental climate .Formulating  a comprehensive management  plan  involves depletion  and development strategies  , data acquisition  and analyses , geological and numerical model studies , production  and reserves forecasts, facilities requirements, economic optimization, and management approval . 

Implementing the plan requires  management support , field personnel  commitment , and multidisciplinary, integrated teamwork . 

Success of the project depends upon careful monitoring /surveillance and thorough, ongoing evaluation of its performance. If the actual behavior of the project does not agree with the expected performance, the original plan needs to be revised , and the cycle (implementing , monitoring , and evaluating  ) reactivated .

Successful reservoir management requires synergy and team efforts. It is recognized more and more that reservoir management is not synonymous with reservoir engineering and / or reservoir geology. Success requires multidisciplinary, integrated team efforts. The team members must work together to ensure development and execution of the management plan.

All development and operating decisions should be made by the reservoir management team, which recognizes the dependence of the entire   system upon the nature and behavior engineer; in fact, a team member who considers the entire system, rather than just the reservoir aspect, will be a more effective decision maker. It will help tremendously if the person has a background knowledge of reservoir engineering, geology, production and drilling engineering, well completion and performance, and surface facilities.

 Team approach to reservoir management can be enhanced by the following:

  •  Facilitate communication among various engineering disciplines, geology, and operations staff by: 
      •    meeting periodically,
      •   interdisciplinary cooperation in teaching each other’s functional objectives, and
      •   building trust and mutual respect. Also, each member of the team should learn to be a good teacher.
  • To some degree, the engineer must develop the geologist’s knowledge of rock characteristics and depositional environment, and a geologist must cultivate knowledge in well completion and other engineering tasks, as they relate to the project at hand.
  • Each member should subordinate their ambitions and egos to the goals of the reservoir management team.
  • Each team member must maintain a high level of technical competence.
  • The team members must work as a well-coordinated. Reservoir engineers should not wait on geologists to complete their work and then start the reservoir engineering work.

In summary, the synergism of the team approach can yield a “whole greater than the sum of its parts “.

Today, it is becoming common for large reservoir studies to be integrated through a team approach. However, creating a team does not guarantee an integration that leads to success. 

Team skills, team authority, team compatibility with the line management structure, and overall understanding of the reservoir management process by all team members are essential for the success of the project. Also, must reservoir management teams be being assembled only at key investment times.  

One model of the team approach follows:

  •  Functional management nominates team members to work on project team with specific tasks in mind. 

  • The team reports to the production manager for this project. Also, the team selects a team leader, whose responsibility is to coordinate all activities and keep the production manager informed. 
  • The team members consist of representatives from geology and geophysics, various engineering functions, field operations, drilling, finance, and so forth. 
  • Team members prepare a reservoir management plan and define their goals and objectives by involving all functional groups. The plan is then presented to the production manager; and after receiving the manager’s feedback, appropriate changes are made. Next the plan is published and all members follow the plan. 
  • The team members performance evaluation is conducted by their functional heads with input from the team leader and the production manager. The performance appraisal, in addition to various dimensions of performance, includes team work as a job requirement. 
  • Teams are rewarded recognition /cash awards upon timely and effective completion of their tasks. These awards provide an extra motivation for team members to do well. 
  •  As the project goals change (e.g. from primary development to secondary process), the team composition changes to include members with the required expertise .Also , this provides an opportunity to change / rotate team members with time . 
  • Approvals for project AEE’s (Appropriation for Expenditures) are initiated by the team members.; however, the engineering /operations supervisor and /or production manager have the final approval authority. 
  •  Sometimes conflicting priorities for the team members develop because they essentially have two bosses (i.e., their functional heads and the team leader). These conflicts are generally resolved by constant communication among the team leader, functional heads, and the production manager.

The success of reservoir management depends upon the reliability and proper utilization of the technology being applied concerning exploration, drilling and completions, recovery processes, and production. Many technological advances have been made in all of these areas.



Thursday, September 5, 2024

Estimation of Oil & Gas Reserves

 

By definition, it is something kept back or saved for future something kept back or saved for future use a special purpose.

The term “Reserves” means different things to different people. To the oil & gas operators, reserves are volume of crude oil, natural gas, and associated products that can be reserved profitably in the future from subsurface reservoirs.



Reasons for Reserve Estimates :


Segments of the industry concerned with oil & gas reserves:

  • Companies interested in exploration and development of oil and gas properties. 

  •  Banks involved in the financing exploration, development, or purchase of oil and gas properties. 

  • Agencies with regulatory or taxation authority over oil and gas operators. 

  • Investors in oil and gas companies.

Depending on the scope of their operation, operators require reserve estimates:

  • Sizing & design of equipment and facilities to process and transport them to market. 

  •  Assigning the FDP and corresponding cost (Budget) 

  • Establishing future production profiles 

  • Quantifying impact of key uncertainties.

 

Uncertainties in Reserve Estimates :


Estimates of commercially recoverable hydrocarbons reserves are inherently uncertain (physical & commercial). 

  • Physical uncertainties:  

-       Recovery from subsurface reservoirs depends largely on the heterogeneities of the reservoir rock.

-       Reservoir Extension

-      The type of reservoir drive mechanism, etc. 

  •  Commercial uncertainties: 

-      The costs to acquire exploration and development rights (CAPEX)  

-     The costs to produce, process, and transport oil and gas to market (OPEX)

-      The market value of the volumes sold (Prices) 

Why is a reserves Definition Needed ?


·         Most of the parameters that define the reserves of a Reservoir cannot be measured directly, and must be determined indirectly through geological and reservoir engineering analysis and interpretations.

  •   As a result, the estimates of oil and gas reserves have an intrinsic uncertainty. 
  •   The definitions of reserves are designed to promote uniformity and standard measurement of the assets, providing a structure to quantify risk and uncertainty through its categorization.

Visual definition of resources and reserves :

Determining the resource and reserves at any time is a difficult task , and the values will change over time .

The resource might be technically recoverable, economics will dictate how much is produced at a given time and price . Because global and local economics change more a less continually, the amount of resource that is actually extracted  or extractable will also vary with time . It  is this amount of the resource that can be considered the reserves , both proven and probable .


Proven 

 (P)

Discovered reserves which can be produced under current economic conditions (80% chance). Developed and undeveloped
 

 Probable

  (P+P)

Discovered reserves which have a reasonable probability of production with present technology and economics (50% chance).

 Possible

(P+P+P)

Reserves not yet discovered with less chance to be produced (20% chance).


 



 Reserves are :

  •  Reserves are those quantities of petroleum which are anticipated to be commercially recovered from known accumulations from a given date forward.
  •  All reserve estimates involve some degree of uncertainty.
  • The uncertainty depends chiefly on the amount of reliable geologic and engineering data available at the time of the estimate and the interpretation of these data.
  • The relative degree of uncertainty may be conveyed by placing reserves into one of two principal classifications, either proved or unproved.
  • Unproved reserves are less certain to be recovered than proved reserves and may be further sub-classified as probable and possible reserves to denote progressively increasing uncertainty in their recoverability.

 


  1.  Proven Reserves:

·         Proven reserves are those reserves claimed to have a reasonable certainty (normally at least 90% confidence) of being recoverable under existing economic and political conditions, with existing technology. Industry specialists refer to this as P90 (having a 90% certainty of being produced). Proven reserves are also known in the industry as 1P.

  • Proven reserves are further subdivided into "proven developed" and "proven undeveloped".
  • Proven developed reserves are reserves that can be produced with existing wells and perforations, or from additional reservoirs where minimal additional investment (operating expense) is required.
  • Proven undeveloped reserves require additional capital investment e.g., drilling new wells to bring the oil to the surface.
  • Proven reserves can further be categorized on the basis of status of wells and reservoirs as developed and Undeveloped; producing and nonproducing. 

a.      Developed reserves:

Developed reserves are expected to be recovered from existing wells. Improved recovery reserves are considered developed only after the necessary equipment has been installed, or when the costs to do so are relatively minor. Developed reserves may be subcategorized as producing or non-producing.

®    Producing:  

    Reserves subcategorized as producing are expected to be recovered from completion intervals which are open and producing at the time of the estimate.

®    Non-producing:

Reserves subcategorized as non-producing include shut-in and behind-pipe reserves.

Shut-in reserves are expected to be recovered from:

  • completion intervals which are open at the time of the estimate but which have not started producing,
  • wells which were shut-in for market conditions or pipeline connections, or
  • wells not capable of production for mechanical reasons. Behind-pipe reserves are expected to be recovered from zones in existing wells, which will require additional completion work or future recompletion prior to the start of production.

 b.      Undeveloped Reserves:

Undeveloped reserves are expected to be recovered:

  •     from new wells on undrilled acreage,
  •     from deepening existing wells to a different reservoir, or where a relatively large expenditure is required to: 
      • recomplete an existing well or
      • install production or transportation facilities for primary or improved recovery projects.

 2.      Unproven Reserves:

  •      Unproven reserves are based on geological and/or engineering data similar to that used in estimates of proven reserves, but technical, contractual, or regulatory uncertainties make such reserves being classified as unproven.
  •         Unproven reserves may be used internally by oil companies and government agencies for future planning purposes but are not routinely compiled. They are sub-classified as probable and possible

a.      Probable:

Probable reserves are attributed to known accumulations and claim a 50% confidence level of recovery. Industry specialists refer to them as P50 (having a 50% certainty of being produced). These reserves are also referred to in the industry as 2P (proven plus probable).

b.      Possible:

Possible reserves are attributed to known accumulations that have a less likely chance of being recovered than probable reserves. This term is often used for reserves which are claimed to have at least a 10% certainty of being produced (P10).

Reasons for classifying reserves as possible include varying interpretations of geology, reserves not producible at commercial rates, uncertainty due to reserve infill (seepage

from adjacent areas) and projected reserves based on future recovery methods. They are referred to in the industry as 3P (proven plus probable plus possible).





Sunday, March 10, 2024

Reservoir Characteristics and Petroleum

It is note quite sufficient   to say that to be  a reservoir , a rock requires porosity  and permeability . Reservoir behavior relative to oil  and gas accumulation and production certainly involves  porosity and permeability , but its performance is based  upon several  important engineering  factors . 

Porosity : 

Porosity represents the amount of void space in a rock and is measured as a percentage of the rock  volume. Connected  porosity where void space  has flow-through potential is called effective porosity .

Noneffective porosity is isolated .Summation of effective and noneffective  porosity produces  total porosity , which  represents all of the void space  in a rock . 

Pore space in rocks at the time of deposition  is original , or primary porosity . It is usually a function  of the amount of space between rock -forming grains . Original porosity is reduced by compaction and groundwater -related diagenetic processes .

Grownd water solution , recrystallization , and fracturing cause secondary porosity , which develops after sediments are deposited . 



Effective , noneffective , and total porosity
 

Permeability : 

A rock that contains connected porosity and allows the passage of fluids through it is permeable .Some rocks are more permeable than others because their intergranular  porosity , or fracture porosity , allows fluids to pass through them easily .

Permeability is measured in darcies . A rock that has a permeability  of 1 Darcy permits 1 cc of fluid with a viscosity  of  1 centipoise (viscosity  of water  at 680 F) to flow through one square centimeter of its surface for a distance of 1 centimeter in 1 second with  a pressure drop of 14.7 pounds per sequare inch . 

Permeability is usually expressed in millidarcies since few rocks have a permeability of 1 Darcy . Intergranular material  in a rock , such as clay  minerals or cement , can reduce permeability and diminish  its reservoir potential . It is evident , however that mineral grains must  be cemented to some degree to form coherent rock and that permeability will reduce to some extent in the process . 


Fluid flow through Permeable Sand 
 

Clay cement and porosity and permeability 


Relative Permeability : 

When water , oil , and gas are flowing through  permeable reservoirs , their rates of flow will be altered by the presence  of the other fluids . One  of the fluids will flow through a rock at  a certain rate by itself . However , in the presence of one or both of the other fluids , its rate of flow can be changed .

The flow rate of each fluid is affected by the amounts of the other fluids , how they reduce pore space , and to what extent they saturate the rock. Comparison of the flow rate of a single fluid through a rock its that same flow rate , at the same pressure drop , in the presence of another  fluid determines the relative permeability of the system .

When rock pores decrease in size , the surface tension of fluids in the rock increases . 

If there are several fluids in the rock , each has a different surface tension , which exercises a pressure variation between them .This pressure is called capillary pressure and is often sufficient to prevent the flow of one fluid in the pressure of another .    



Relative permeability From Clark , 1969. Copyright 1969, SPE-AIME



 

Tuesday, February 27, 2024

Core Analysis


Objective :


The  objective of every coring operation is to gather information that leads to more efficient oil or gas production . 

some specific tasks might include the :

Geological objectives : 

  • Geologic maps 
  • Fracture orientation 
  • Lithological information  :
    • Rock type
    • Depositional environment  
    • Pore type  
    • Mineralogy/ Geochemistry  

  Petrophysical  and reservoir engineering :

    • Capillary pressure data  
    • Permeability information :  

        • Permeability / Porosity  correlation 
        • Relative Permeability

      •  Data for refining log calculations :

        • Electrical properties 
        • Grain density
        • Core Gamma Log 
        • Mineralogy and cation exchange capacity   

      • Enhanced oil recovery studies
      • Reserve estimate : 

        • Porosity
        • Fluid saturations

       Drilling and completions : 

        • Fluid/ formation compatibility studies 
        • Grain size  data for gravel pack design 
        • Rock mechanics data 




         Why Core Analysis is important for Development Plan ? 

         Exploration :

        • Exploration of structures  and determination of their physical  characteristics. 
        •  Estimate of production  possibilities  for wildcats, extension wells  and edge wells .

        Well completion and workover operations : 

        • Selection of intervals for testing . 
        • Interpretation of tests during drilling -Comparison results -Explanation of test anomalies etc.  
        • Determination of the best combinations for order of completions when there are several horizons . 
        • Selection of intervals and choice of depths if plugs , packers , cement plugs  etc.  are installed to keep out water and gas influxes . 
        • Selection of intervals for perforations or acidizing . 
        • Estimation of completion efficiency . 
        • Selection of intervals for recompletion . 

        Field Development : 

        • Determination of optimal spacing . 
        • Determination of the location  of new wells . 
        • Definition of field boundaries . 
        • Estimate of production for determination of field equipment . 
        • Definition of contact zones for the various fluids . 
        • Structural  and stratigraphic correlations . 
        • Sampling and bases of interpretation for other well logging . 
        • Selection of intervals for optimum completion . 


        Well and reservoir evaluation :

        • Determination of net pay zone . 
        • Estimate of initial productivity 
        • Estimate of water production rates and injection pressures . 
        • Estimate of decompression zones invaded bay water or gas , and simultaneous  production of various  zones . 
        • Estimate of probable recovery . 
        • Estimate of oil or gas  reserves in place . 
        • Estimates for equitable shares in unitization operations . 
        • Reservoir engineering and programming for maintaining pressure or secondary recovery . 
        • Forecasts for optimum well completion and maximum future recovery .  

         



         Core Analysis Tests : 

        The  experiments done on core sample are as following :

          • Routine Test
          • special test
          • Geo-mechanics tests 
          • Formation damage tests

        1. Routine Test : 

          • Porosity measurements 
          • Permeability measurements
          • Saturation's measurements 
          • Grain density 

        These measurements are made to correct the well logs results and use this correction in non-cored  intervals , as example :

        • Tyne the Archie's equation  constants (a, m ,n) until having matching to core saturation.
        • Get a correlation between porosity and permeability .
        • Rock Typing .

        2. Special Test : 

        •  Relative permeability : used for multiphase modelling in case of having saturation less than 100 % .
        • Capillary pressure : used to determine the thickness of transition zone and the saturation distribution in this interval .
        • Wettability : used a criteria in EOR applications screening .
        • Rock compressibility : used especially for material balance calculations to estimate oil recovery and also in geomechanically applications . 
        • Acoustic properties : used to tune the Archie's equation constants to estimate the saturation and porosity from ell logs.
        • Other tests like XRD  and SEM . 


        3. Geomechanics Test : 

        Geomechanics has an important role to play in assessing formation integrity during well construction and completion and in the response of the reservoir  to oil production , water injection and depletion .
        The tests most commonly used to determine  fundamental rock mechanics parameters are described including : 


        • Unconfined compressive strength 
        • Thick Wall Cylinder .
        • Tensile Strength.
        • Triaxial Tests .
        • Pore Volume Compressibility .
        • Elastic Moduli.
        • Particle Size Analysis . 




        Application of Core Analysis Data: 

         

        • Permeability Modelling .  
        • Facies distribution modelling .
        • Production prediction . 
        • Residual Oil Saturation targeted by EOR . 
        •  STOIP calculation . 
        •  Sand control . 

         

         


         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

           

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