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M AY 2 0 1 6 • V O L U M E 6 8 , N U M B E R 5 JOURNAL OF PETROLEUM TECHNOLOGY

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CONTENTS
Volume 68 • Number 5

14 GUEST EDITORIAL • CREATING VALUE FROM FLARED
NATURAL GAS
Capturing flared gas presents an opportunity to reduce
environmental impact and generate an additional revenue stream.
DNV GL’s study shows that economically viable solutions for
carbon abatement and development of flared gas for societal use
are possible.

30 UNCONVENTIONAL MEASURES FOR SHALE
RESERVOIRS
An array of new in-well testing methods involving drill bit
geomechanics and DNA sequencing are coming to the market.
These new technologies provide unconventional producers with
low-cost rock property data from the wells they fracture.

39 PRESSURE TEST FOR E&P INNOVATION
For innovators, the oil price crash offers an opportunity—customers
willing to try new methods they would not have in better times.
By analyzing the DNA make up of
The downside is, they can only sell to the survivors. microbes living in shale reservoirs
along different points in the
44 SEISMIC SHIFTS IN OKLAHOMA LEAD TO STRICTER wellbore, operators may be able
REGULATIONS to generate production profiles for
Oklahoma officials have ordered their tightest restrictions yet on a lower cost and improve future
completion designs. Image courtesy
disposal wells, ones that may impact production, in an effort to of Biota Technology.
reduce the high rate of earthquakes rattling residents.

50 OTC ASIA REVIEW
Highlights from the OTC Asia conference recently held in
Kuala Lumpur. The conference reflected Asia’s position as a
global provider of E&P technology. More than 15,000 energy DEPARTMENTS
professionals representing 2,500 organizations and 60 countries
attended the conference. 6 Performance Indices
8 Regional Update
54 MANAGEMENT • TRANSFORMING THE UPSTREAM 10 President’s Column
SERVICE INDUSTRY TO INCREASE OPERATOR 12 Comments
MARGINS
18 Technology Applications
In the current downturn, operators and service providers alike are
rethinking the way they work. Companies can no longer afford 22 Technology Update
business as usual. It takes a conscious decision and strategic vision 26 E&P Notes
to improve operator margins sufficiently to survive, indeed, thrive. 96 People
98 Professional Services
99 Advertisers’ Index
100 SPE Events

An Official Publication of the Society of Petroleum Engineers. Printed in US. Copyright 2016, Society of Petroleum Engineers.

completing. drilling. efficient. We provide the exclusive TAM-J Multi-Set Inflatable Packer and the PosiFrac® Straddle System tools for selective production testing. technology licensed exclusively to TAM International. Inc. The versatile TAMPlug effectively isolates lost circulation zones. acid stimulation. TIP. or abandoning wells. Casing Annulus Packer. WELL INTERVENTION DRILLING & COMPLETIONS UNCONVENTIONAL RESOURCES RESERVOIR OPTIMIZATION TAM-195_SolutionsLifeCycle_rv3_0210. TAM’s extensive suite of swellable packers is available in multiple elastomer compounds to fit the specific application. Whether companies are planning. and scab liners. Unique completions products include the PosiFrac HALO™ frac seat and PosiFrac Toe Sleeve™. producing. bridge plugs. and flexible. If P&A operations are needed. and TAM-J packers present reliable solutions. Solutions for the Life Cycle of Your Well Completions Remedial Drilling Abandonment Production Stimulation TAM has solutions: For almost half a century. and sand fracturing placement. remediating.com PosiFrac HALO™ is a HydraWell. TAM solutions are effective.indd 1 2/10/16 3:20 PM . Our Single-Set Inflatable Packers can be used as production Excellence at the Wellsite® packers. www. our Single-Set. TAMPlug.tamintl. TAM has provided solutions for the countless challenges operators encounter during the life cycle of a well. Cement Retainer. TAM’s proven EPIC® solutions for drilling use our swellable packer. and Port Collar for cement integrity during primary and secondary cementing operations.

BG 59 Advancing Deepwater Kick Detection 62 CLOV Project: Overview 64 Riser-System Design in Water Depths Greater Than 3000 m 67 Subsea Production Optimization in Field BC-10 Offshore Brazil 70 INTELLIGENT FIELDS TECHNOLOGY John Hudson. 80 Innovative Tool Improves Hole-Cleaning Efficiency in Extended- Reach Wells 83 New Rotary Shouldered Connection Expands Capability of ERD Operation ZeroTime™ is a game-changing 86 Magnetic Referencing and Real-Time Survey Processing Enable Tighter logging-while-working solution Spacing of Wells that eliminates stand-alone diagnostic surveys by adding 88 CEMENTING/ZONAL ISOLATION intelligence to routine trips Gunnar DeBruijn.info The complete SPE technical papers featured in this issue are available free to SPE members for two months at www. Principal Production Engineer.zerotime.TECHNOLOGY FOCUS 58 DEEPWATER PROJECTS Morten Iversen. Shell 71 Flow-Control Optimization Maximizes Accuracy of Multiphase-Flow Rate Allocation MAKING 74 Geology-Driven Estimated-Ultimate-Recovery Prediction With Deep Learning EVERY 76 Machine Learning Applied to Multiwell-Test Analysis and Flow-Rate Reconstruction 79 MULTILATERAL/EXTENDED-REACH WELLS TRIP Bernt S. SPE. . SPE. Aadnøy.Maximise efficiency . Schlumberger in hole. Professor of Petroleum Engineering.Minimise risk .spe. ZeroTime™ enables operators to plan their next 89 New Approach Tests Cement-Sheath Integrity During Thermal Cycling move in total confidence with zero-added rig time. 92 An Integrated Approach to Solving Sustained Casing Pressure in the Cana-Woodford Shale 94 Design Procedure for Cementing Intercalated Salt Zones . SPE.Minimise costs www. Standards and Knowledge Development Manager. University of Stavanger COUNT. SPE. Well Integrity Section Head.org/jpt.

even in the most challenging deep and ultra-deepwater basins worldwide.com/franksinternational . With more than 75 years in the industry. Let Frank’s unlock that value as you anticipate your next big challenge. Frank’s International leads the way with breakthrough technologies that help lower the total cost of ownership throughout the life of the well. Unlocking Complexities franksinternational. Smart Solutions for Complex Drilling Challenges As the offshore industry reaches new frontiers.com | facebook. Frank’s is a recognized leading provider of innovative tubular solutions and pioneering technologies that help our customers increase drilling efficiency and reduce downtime.

Schlumberger Contact us for a demonstration visuray. you’ll Phongsthorn Thavisin. AND CONSTRUCTION VISURAY’s revolutionary VR90 ® MIDDLE EAST Howard Duhon. AND SOCIAL RESPONSIBILITY EASTERN NORTH AMERICA Bob Garland. This permission is in addition to copying rights grant- Mary Jane Touchstone. or e-mail service@spe. For copying beyond that or the above permission: (1) libraries and other users David Grant. Baker Hughes John Hoppe. Senior Manager Publishing Services discussion of technical and professional subjects per- tinent to the interests of the Society in its publications. John Donnelly. Roger Hite. Silver Creek Services Trey Shaffer. Composition Specialist Supervisor page to CCC. The above permis- sion notwithstanding. Better yet. pertinence. Any material which. Khalid Zainalabedin. or motivations of any individual. AND EAST EUROPE Helge Hove Haldorsen.org to obtain permission to make more than five copies or for any other special use of copyrighted material in this journal. SPE does not waive its right as copyright holder under the US Copyright Act. Michael Tunstall PROJECTS. Chevron Salis Aprilian. contact SPE Librarian at SPE Americas Office in Richardson. USA Dennis Scharnberg. Publisher statement made or opinions expressed in its publications. Senior Technology Writer does not meet the standards for objectivity. Saudi Aramco not only finds downhole blockages RESERVOIR DESCRIPTION AND DYNAMICS faster. Baker Hughes CANADIAN Darcy Spady. Concho Oil & Gas Roland Moreau. Baker Hughes SOUTHERN ASIA PACIFIC you the superpowers Janeen Judah. Technology Editor character. Emerging Technology Senior Editor technical or professional interests of its readers. ExxonMobil Annuitant REGIONAL DIRECTORS WESTERN NORTH AMERICA Andrei Popa. 29 Congress St. personal Chris Carpenter. SAFETY. PT Badak NGL Vice President Finance SOUTHWESTERN NORTH AMERICA Libby Einhorn. ERM Introducing the world’s MANAGEMENT AND INFORMATION GULF COAST NORTH AMERICA J. Print Publishing Manager ed by law as fair use or library use. Features Editor accepts advertising (print and electronic) for goods and services that. Clearbrook Consulting AT-LARGE DIRECTORS you’ll eliminate downtime and RUSSIA AND THE CASPIAN Khaled Al-Buraik. PTTEP Dan Hill. Special Publications Editor COPYRIGHT AND USE: SPE grants permission to make Craig Moritz. SPE Joel Parshall. 01970. it lets you see 2D and 3D NORTH SEA Tom Blasingame. Cunha first X-Ray technology MID-CONTINENT NORTH AMERICA PRODUCTION AND OPERATIONS Jennifer Miskimins.C. Assistant Director Americas Sales & Exhibits up to five copies of any article in this journal for personal use. Trent Jacobs. Inwood Solutions J. in the publisher’s judgment. Canada Publications Agreement #40612608. Inc. Texas A&M University eliminate the problem. Saudi Aramco increase profitability. . Adam Wilson. USA. Chevron you’ve AFRICA Adeyemi Akinlawon. David Curry. or group. SPE reserves the right to refuse to publish any advertising it Stephen Whitfield. in the publisher’s opinion.com JPT STAFF The Journal of Petroleum Technology® magazine is a registered trademark of SPE. Petrobras We give 2016 President SOUTH ASIA Nathan Meehan. ENVIRONMENT. Pam Boschee. Mass. Texas A&M University Carlos Chalbaud. Adeb Konsult TECHNICAL DIRECTORS DRILLING AND COMPLETIONS always dreamed of. address the Stephen Rassenfoss. Statoil 2017 President Matthias Meister.50 per X-RAY VIS Laurie Sailsbury. Proofreader (ISSN0149-2136) or (2) otherwise. Staff Writer considers to be unacceptable. SPE BOARD OF DIRECTORS OFFICERS SOUTH AMERICA AND CARIBBEAN Anelise Quintao Lara. Salem. Broadview Energy HEALTH. Barree & Associates for oil wells. Senior Manager Magazines Society publications shall contain no judgmental remarks or opinions as to the technical competence. CENTRAL. ENGIE reconstructions of the obstruction. Anjana Sankara Narayanan. company.. Shell 2015 President SOUTH. Electronic Publishing Manager dealing with the Copyright Clearance Center (CCC) must VISURAY ION pay a base fee of USD 5 per article plus USD 0. NORTHERN ASIA PACIFIC DIRECTOR FOR ACADEMIA We’ll illuminate the problem. Liu Zhenwu. Visit us at OTC stand 5053 SPE PUBLICATIONS: SPE is not responsible for any Glenda Smith. GATE. ROCKY MOUNTAIN NORTH AMERICA Erin McEvers. SECURITY. China National Petroleum Corporation Anton Ablaev. Texas. Editorial Manager and professional tone will be returned to the contribu- tor with a request for revision before publication. Editor EDITORIAL POLICY: SPE encourages open and objective Alex Asfar. FACILITIES.

48 46. lease condensates.68 30.70 32. Total World 80525 80439 80038 80071 † Source: Baker Hughes. Yemen 22 22 22 22 * Includes approximately one-half of Neutral Zone production.39 96. ‡ Source: US Department of Energy/Energy Information Administration.32 37.44 37. natural gas plant liquids.11 94. 2 Includes crude oil.21 93. Guinea 250 250 250 250 Africa 96 93 90 91 94 88 91 Gabon 215 215 215 215 Asia Pacific 218 213 208 198 193 182 183 India 754 768 757 758 Indonesia 801 777 800 801 TOTAL 2171 2086 2047 1969 1891 1761 1551 Kazakhstan 1592 1593 1594 1595 Malaysia 599 591 652 619 WORLD OIL SUPPLY AND DEMAND2‡ Mexico 2308 2291 2306 2314 Norway 1611 1599 1581 1685 MILLION BOPD 2015 2016 Oman 1001 990 985 980 Quarter 2nd 3rd 4th 1st Russia 10200 10180 10150 10140 SUPPLY 95.47 Sudan 257 254 255 257 DEMAND 93.76 Syria 30 30 30 30 UK 838 788 862 912 USA 9433 9407 9460 9347 INDICES KEY Vietnam 343 307 348 333 + Figures do not include NGLs and oil from nonconventional sources.27 38. other hydrocarbons for refinery feedstocks.55 NON-OPEC 2015 JUL AUG SEP OCT Argentina 532 529 529 535 Australia 361 360 335 330 WORLD ROTARY RIG COUNT† Azerbaijan 867 867 867 872 Brazil 2466 2547 2395 2406 2016 REGION SEP OCT NOV DEC JAN FEB MAR Canada 3821 3912 3412 3581 US 848 791 760 714 654 532 478 China 4263 4278 4317 4259 Canada 183 184 178 160 192 211 88 Colombia 947 968 1009 1030 Latin America 321 294 284 270 243 237 218 Denmark 154 157 154 157 Europe 109 108 108 114 108 107 96 Egypt 524 511 510 509 Middle East 396 403 419 422 407 404 397 Eq.81 94.50 96.19 31.62 48. 6 JPT • MAY 2016 .21 THOUSAND BOPD WTI 42.eia. Total 46685 46670 46312 46446 refinery gains.43 44.52 95. alcohol.52 47.18 38.22 42. Other 2496 2479 2517 2509 1 Latest available data on www. and liquids produced from nonconventional sources. PERFORMANCE INDICES WORLD CRUDE OIL PRODUCTION1+‡ HENRY HUB GULF COAST NATURAL GAS SPOT PRICE‡ THOUSAND BOPD 6 O PEC 2015 JUL AUG SEP OCT Algeria 1370 1370 1370 1370 5 USD/million Btu Angola 1890 1910 1800 1810 4 Ecuador 538 537 539 538 3 Iran 3300 3300 3300 3300 Iraq 4375 4275 4425 4275 2 Kuwait* 2550 2550 2550 2550 1 Libya 400 360 375 415 APR MAY JUN JUL AUG SEP OCT NOV DEC 2016 JAN FEB MAR Nigeria 2270 2320 2320 2370 Qatar 1537 1537 1537 1537 Saudi Arabia* 10290 10290 10190 10140 UAE 2820 2820 2820 2820 WORLD CRUDE OIL PRICES (USD/bbl)‡ Venezuela 2500 2500 2500 2500 TOTAL 33840 33769 33726 33625 2016 AUG SEP OCT NOV DEC JAN FEB MAR Brent 46.gov.87 45.01 30.

All rights reserved.indd 1 3/7/16 9:35 AM . Copyright © 2016 Schlumberger. Find out more at slb. 16-ST-121508 Salik full page for JPT April. the service also decreases transportation expenses—all while maximizing production and fracture conductivity. Because it requires less imported proppant. Salik local-sand-enabled flow-channel fracturing service provides unprecedented cost reduction by using local sand as an inexpensive alternative to conventional proppant. May.com/salik *Mark of Schlumberger. Salik LOCAL-SAND-ENABLED FLOW-CHANNEL FRACTURING SERVICE Reduce fracturing costs by replacing more than 50% of proppant with local sand. June 2016 16-ST-121508 AD.

same vicinity. Shell wants to recoverable resources of 12. Eni is the operator with ◗◗ Petrobras reported that its early (20%) and ONGC (45%) holding a 65% interest in the license. A like” oil flows. viable oil reserves. (formerly the Nordeste de Tupi area) has begun operations in the Santos Basin pre- ◗◗ UK Oil & Gas Investments (UKOG) salt layer offshore Brazil. REGIONAL UPDATE LNG exports from the Gorgon Project on AFRICA MIDDLE EAST Barrow Island offshore Western Australia.9 Bcf (12. said Andre Araujo. first well to test the Kerio Valley Basin. According to the independent study. Despite report.000 B/D from and tied back to the Rosneft-operated 22 subsea wells. Gorgon. a stable rate of 323 B/D of oil in its latest in which Mosman holds the sole interest. the well flowed at its current location for 180 days.25%). the well has achieved a phase of the BC-10 project in the Campos gas in proven reservoirs of the West Walker total aggregate stable dry oil flow rate of Basin offshore Brazil. exploration decisions. there are unrisked prospective reported that a mean of almost 11 billion bbl market uncertainties. the company said. resource prospects within permit EP 145. Schlumberger has Conchas oil and gas development. Osaka Gas (1. Delonex single resource development ever.44 Bcf of oil in place is embedded within the keep investing in Brazil because of its of conventional gas and 1. UKOG and Solo Oil hold 20. The FPSO vessel AUSTRALIA/OCEANIA said that the Horse Hill-1 onshore Cidade de Sao Vicente is set to produce ◗◗ Mosman Oil and Gas said that its discovery well in Petroleum Exploration about 20. the sole interest holder of the block the company said. the LM No. respectively. the company The company said the PLDD geological oil field to produce from the Barents Sea. Potentially five Shoats Creek wells well has a design depth of 4. holds a 47. the other participants. the Australian Lutcher Moore (LM) No. Other participants are Exxon Mobil Eni.6 million metric tons storage.3 % interest in (46. Post-well analysis (25%). a CO2 injection project. Gorgon’s has delivered up to 44 MMscf/D of interval.300‑ft Australia’s northwest coast. which with a storage capacity of 1 million bbl. the production capacity of 250 MMscf/D the presence of an active petroleum field operator.6 Bcm) of the world’s largest floating production. The major facilities include a Barrow Island natural gas during production tests. 22 EUROPE Nam Con Son Basin. Louisiana will be spudded May 16 as part ◗◗ Rosneft has spudded the PLDD‑1X a fully funded work program.114 ft. with Statoil production system in the Sepia area the remainder.000 BOE/D).417%). surface facilities. With the inclusion of ◗◗ Shell plans to launch a new exploration highlights the potential for conventional earlier results. and Chubu Electric Power wells in the field this year. The results indicate and a domestic gas plant.163% and 6. license. Gorgon is Australia’s largest operator with a 40% interest. Tullow is the block (0. Chevron. Located in the Weald Basin to the 1-RJS-691 well and will remain at report by SRK Consulting on the basin’s near Gatwick Airport. 21 well at the Petroleum Production & Exploration Shoats Creek field in southwestern ASIA Association said. Shell (25%). 23 well in the third project. and offloading (FPSO) system the deeper Cockfield formation in the (5. JPT 8 JPT • MAY 2016 . Northcote is also doing geophysical structure is expected to hold recoverable Goliat was developed through the use of and engineering work in preparation reserves of 444.000 B/D of oil during the test Amadeus Basin project in Australia’s and Development License (PEDL) 137 in period. In an operates the deepwater Parque das Horn Valley Siltstone.528 ft. Following exploration well in Block 06. the FPSO system is connected cubic feet of recoverable natural gas. holds the invested more than USD 1 billion in the (LNG) and condensate production and remaining stake. Lying in 532 ft of water. of which 17 are now SOUTH AMERICA Lan Tay platform. well will be drilled. the company reported. plans to drill three additional now under way will affect future basin Tokyo Gas (1%). the operator. Horse a recent presentation. The company has a completed. production test. where the company Anticline and unconventional gas in the 1. which was constrained by Cheptuket-1 was drilled to a final annual capacity.688 B/D from three tested zones. has an estimated depth of 10. for high-grading drilling prospects in natural gas and 0. Preparations are under operated international offshore drilling ◗◗ Eni has started production from the way to drill the LM No. the Barents Sea offshore Norway. ◗◗ Tullow’s Cheptuket-1 well in Block The USD 54-billion project produces gas ◗◗ Eni’s Zohr 2X well in the Zohr field 12A of northern Kenya has encountered from the Gorgon and Jansz-Io fields off of the Shorouk Block offshore Egypt good oil shows over an almost 2. The first will be producing by year-end.218 ft (2200 m) Northern Territory holds trillions of southern England has shown “North Sea.4 Tcf of PEDL 137 and PEDL 246 Horse Hill licenses. the unconventional gas within both plays. holding the remainder. BC-10 Block. system with significant oil generation. said. LNG plant with 15. The company has ◗◗ Chevron began liquefied natural gas Hill Development.5% chief executive officer of Shell Brazil in stakes in PEDL 137.1 of Vietnam’s completion operations.4 million bbl) of gas condensate. of water. can be developed by subsea completion Field output will reach 100. the Goliat field on Production License 229 in quarter. Australia will surpass Qatar as the world’s ◗◗ Northcote Energy said that the largest LNG exporter in 2018. Deployed in 7. the first Rosneft. Goliat’s reserves are estimated 35% stake in the block with Petrovietnam at 180 million bbl. With NORTH AMERICA Energy (40%) and Africa Oil (20%) are production from Gorgon and other projects.6 million metric tons of The well.

Multistage Unlimited and “Learn from every frac. ŶĐƐŵƵůƟƐƚĂŐĞĐŽŵ ©2015. LLC. . All rights reserved.Introducing a new controlled optimization process for multistage completions ĮĞůĚůĞǀĞůƉƌŽŐƌĂŵďĂƐĞĚŽŶĐŽŶƐŝƐƚĞŶƚĨƌĂĐƉůĂĐĞŵĞŶƚ ĂŶĚŵĞĂƐƵƌĞĚĚŽǁŶŚŽůĞƉƌĞƐƐƵƌĞƐĂŶĚƚĞŵƉĞƌĂƚƵƌĞƐ ŽŶƚƌŽůůŝŶŐŬĞLJǀĂƌŝĂďůĞƐĞŶĂďůĞƐƚƌƵĞŽƉƟŵŝnjĂƟŽŶ zŽƵĐĂŶƚƚƌƵůLJŽƉƟŵŝnjĞƉůƵŐĂŶĚƉĞƌĨĐŽŵƉůĞƟŽŶƐ ďĞĐĂƵƐĞĨƌĂĐ ƐƉĂĐŝŶŐĂŶĚƉƌŽƉƉĞĚǀŽůƵŵĞĂƌĞƵŶĐŽŶƚƌŽůůĞĚǀĂƌŝĂďůĞƐdŚĞƐĂŵĞŝƐ ƚƌƵĞĨŽƌŽƉĞŶŚŽůĞƉĂĐŬĞƌďĂůůƐůĞĞǀĞĐŽŵƉůĞƟŽŶƐǀĞŶǁŚĞŶĂĐŽŵ ƉůĞƟŽŶŝƐĞĐŽŶŽŵŝĐĂůůLJĂĐĐĞƉƚĂďůĞ ƚŚĞƌĞŝƐŶŽŵĞƚŚŽĚŝĐĂůǁĂLJƚŽ ŝŵƉƌŽǀĞƚŚĞĚĞƐŝŐŶĨƌŽŵǁĞůůƚŽǁĞůů ďĞĐĂƵƐĞƚŚĞŶƵŵďĞƌŽĨĨƌĂĐƐ  ĨƌĂĐƐƉĂĐŝŶŐ ĂŶĚĨƌĂĐƐŝnjĞĂƌĞŶŽƚĐŽŶƚƌŽůůĂďůĞŽƌƌĞƉĞĂƚĂďůĞ tŝƚŚƚŚĞDƵůƟƐƚĂŐĞhŶůŝŵŝƚĞĚΠƉŝŶƉŽŝŶƚĨƌĂĐƐLJƐƚĞŵ LJŽƵŬŶŽǁ WƌĞĚŝĐƚĂďůĞǀĞƌŝĮĂďůĞĂŶĚƌĞƉĞĂƚĂďůĞĨƌĂĐƐƉĂĐŝŶŐĂŶĚƉƌŽƉƉĞĚ ǁŚĞƌĞĨƌĂĐƐŝŶŝƟĂƚĞĂŶĚĞdžĂĐƚůLJŚŽǁŵƵĐŚƉƌŽƉƉĂŶƚLJŽƵƉƵƚŝŶĞĂĐŚ ǀŽůƵŵĞĞůŝŵŝŶĂƚĞŬĞLJƵŶŬŶŽǁŶƐƚŽĨĂĐŝůŝƚĂƚĞĨŽƌŵĂƟŽŶƐƉĞĐŝĮĐ ŽŶĞEŽŵĂƩĞƌǁŚĂƚĞůƐĞLJŽƵǀĂƌLJĨƌĂĐƐƉĂĐŝŶŐ ĨƌĂĐĚŝŵĞŶƐŝŽŶƐ  ǁĞůůƚŽǁĞůůŽƉƟŵŝnjĂƟŽŶĂĐƌŽƐƐĞŶƟƌĞĮĞůĚƐ ƉƌŽƉƉĂŶƚƚLJƉĞ ĨƌĂĐŇƵŝĚ ŝŶũĞĐƟŽŶƌĂƚĞƐ ƉƌŽƉƉĂŶƚĐŽŶĐĞŶƚƌĂƟŽŶ ĨƌĂĐƉůĂĐĞŵĞŶƚƌĞŵĂŝŶƐƉƌĞĚŝĐƚĂďůĞĂŶĚƌĞƉĞĂƚĂďůĞ ƐŽLJŽƵĐĂŶ ĞǀĂůƵĂƚĞƚŚĞĞīĞĐƚƐŽĨƚŚĞĐŚĂŶŐĞƐLJŽƵŵĂŬĞ Recorded downhole data describes every frac ƚĞǀĞƌLJƐƚĂŐĞ ŽƵƌƐƚĂŶĚĂƌĚDƵůƟƐƚĂŐĞhŶůŝŵŝƚĞĚĨƌĂĐŝƐŽůĂƟŽŶ ĂƐƐĞŵďůLJƌĞĐŽƌĚƐĂĐƚƵĂůƉƌĞƐƐƵƌĞƐĂŶĚƚĞŵƉĞƌĂƚƵƌĞƐĂƚƚŚĞĨƌĂĐnjŽŶĞ ĂŶĚŝŶƚŚĞǁĞůůďŽƌĞďĞůŽǁ;ƐĞĞĐŚĂƌƚĂƚƌŝŐŚƚ€dŚĞĚĂƚĂƌĞǀĞĂůƐďŽƚŚ ƚŚĞƉƌĞƐĞŶĐĞĂŶĚƚLJƉĞŽĨĂŶLJŝŶƚĞƌnjŽŶĞĐŽŵŵƵŶŝĐĂƟŽŶ;ŶĂƚƵƌĂů ĨƌĂĐƚƵƌĞƐ ĐĞŵĞŶƚĨĂŝůƵƌĞ ůŽŶŐŝƚƵĚŝŶĂůĨƌĂЀ ƐŽLJŽƵĐĂŶĞƐƚĂďůŝƐŚ ŵŝŶŝŵƵŵĨƌĂĐƐƉĂĐŝŶŐŝŶĂŐŝǀĞŶĨŽƌŵĂƟŽŶdŚĞĚĂƚĂĂůƐŽŝĚĞŶƟĮĞƐ ƚŚĞƉƌĞƐĞŶĐĞĂŶĚƐŽƵƌĐĞŽĨŶĞĂƌǁĞůůďŽƌĞƌĞƐƚƌŝĐƟŽŶƐ ĂƐǁĞůůĂƐ ƉƌŽƉƉĂŶƚďƌŝĚŐŝŶŐ ŝĨŝƚŽĐĐƵƌƐ^ƚĂŐĞďLJƐƚĂŐĞĚĞƚĂŝůƐŐŝǀĞLJŽƵŝŶƐŝŐŚƚƐ LJŽƵĚŽŶƚŐĞƚǁŝƚŚŽƚŚĞƌŵƵůƟƐƚĂŐĞĐŽŵƉůĞƟŽŶŵĞƚŚŽĚƐ ƵŶůĞƐƐLJŽƵ ƉĂLJĨŽƌƐĞƉĂƌĂƚĞĂŶĚĐŽƐƚůLJŵŽŶŝƚŽƌŝŶŐƐLJƐƚĞŵƐ dŚĞĐŽŵďŝŶĂƟŽŶŽĨĐŽŶƐŝƐƚĞŶƚĨƌĂĐƉůĂĐĞŵĞŶƚĂŶĚĚŽǁŶŚŽůĞĚĂƚĂ ŝƐLJŽƵƌďĞƐƚĂŶĚĨĂƐƚĞƐƚƌŽƵƚĞƚŽƚƌƵůLJŽƉƟŵŝnjĞĚĐŽŵƉůĞƟŽŶƐĂŶĚ dŚĞƐĞĐŚĂƌƚƐƐŚŽǁƉƌĞƐƐƵƌĞĂŶĚƚĞŵƉĞƌĂƚƵƌĞĂďŽǀĞĂŶĚďĞůŽǁƚŚĞ ĮĞůĚĚĞǀĞůŽƉŵĞŶƚƐƚƌĂƚĞŐŝĞƐ>ĞĂƌŶŵŽƌĞĂƚŶĐƐŵƵůƟƐƚĂŐĞĐŽŵ ŝƐŽůĂƟŽŶĂƐƐĞŵďůLJĨŽƌƚĞŶƐƚĂŐĞƐdŚĞĚĂƚĂƌĞǀĞĂůƐĂŶĚĚĞƐĐƌŝďĞƐ ĂŶLJŝŶƚĞƌƐƚĂŐĞĐŽŵŵƵŶŝĐĂƟŽŶĂŶĚŝŵƉŽƌƚĂŶƚĨƌĂĐĂŶĚĨŽƌŵĂƟŽŶ ĐŚĂƌĂĐƚĞƌŝƐƟĐƐ dŚĞDƵůƟƐƚĂŐĞhŶůŝŵŝƚĞĚĨƌĂĐŝƐŽůĂƟŽŶƐLJƐƚĞŵŝƐƚŚĞǁŽƌůĚƐůĞĂĚŝŶŐĐŽŝůĞĚƚƵďŝŶŐĨƌĂĐƚĞĐŚŶŽůŽŐLJǁŝƚŚŵŽƌĞƚŚĂŶϭϮဓϬϬϬƐƚĂŐĞƐĐŽŵƉůĞƚĞĚ TM Learn from every frac. NCS Multistage. LLC.” are trademarks of NCS Multistage.

IMPROVING PEOPLE’S LIVES Hope Is Not a Strategy … But Without Hope. In late 1981.C. it is natural to try and drops are certainly possible. Training and travel budgets were slashed. Hughes rig count data from 1944 include only rotary rigs. In Fig. Current rig activity is lower than “scale” a current calamity with past ones. primarily in West downturn is unhappy in its own way. During the US Civil War. The US rig count followed drilling activity. These were replaced in the 1830s by steam engines certainly was not good. 1—The relative US rig count vs. Many companies have cut or eliminated divi- Weeks From Beginning of Downturn dends.000. There Is No Strategy Nathan Meehan.28/bbl in less than 5 months. I am also concerned about companies’ and SPE’s strategies. peak. Rathbone used a Fig. less than 15% of the peak. total US rig activity has exceeded 500 rigs since Abraham peak US rig activity immediately prior to the beginning of the Lincoln was the US president. Headcount 25 2008–2012 reductions now exceed 300.org. In a recent article in The Way Ahead (TWA 2016). rig activity peaked at 4. current rig activity a question that made me smile. cial recessions are compared with the Great Depression of the 1930s during which the worldwide gross domestic product (GDP) Is the Current US Rig Count the Lowest Ever? dropped 15% in 3 years. 10 JPT • MAY 2016 . Research and development budgets have been lowered Fig. While the TWA article dealt with individuals’ 75 strategies for responding to the downturn. this was a steeper drop from the peak level. Few companies took very long to resort to familiar actions. finan. Before WTI crude oil prices dropped from USD 145. is now approximately 70% of that ice age bottom. near-term payoffs.987 in August 2008 to 895 by mid-2009. and Pennsylvania. While is the worst time ever in the oil business. Each prior downturn recovered to about 80% of peak ac- tivity within approximately 2 years after dropping from 45% to When Will It Come Back Up? Is There Hope? 55% of peak activity. to provide rig power. The Baker 2009 saw a 1% drop in worldwide GDP but certainly felt huge. number of weeks for larger companies. the recession of 2008– I have been looking at historical rig activity measures. For example. cable tool activity took off. It is impossible to know how long the status quo may last. Virginia. Compare this with the 1980s. making the rig activity of 464 as of downturn and normalized subsequent weekly activity to this 24 March this year a truly historic low. what the US has seen in a very long time. email president@spe. Service com- 2001–2004 panies were required to lower prices multiple times. I have started with the rigs.” and each downturn and Virginia. and in 1860 when J. It powered rigs. California. world. cable tool rigs accounted for a significant portion of to USD 30.” but not panicked. Projects are shelved and com- 2014–March 2016 pany efforts focus on lowering costs. I have been asked if this the rig count dropped to 663. While few companies have 0 reduced salaries. 50 1997–2001 Capital expenditures were cut and then cut again. but it was relatively short-lived. dropping from 1.31/bbl on 3 July 2008 the 1950s. lies may be paraphrased to apply to downturns: “Each oil price many hundreds of cable tool rigs were drilling. Many are anxious about the future. In comparison. and future For some reason. To contact the SPE President. Rigs Operating as Percentage of 100 Hoping that prices will recover soon is not a strategy to deal Pre-Downturn Level with low oil prices. Cable tool drilling dates to 1806 with horse- suit. 2016 SPE President A great benefit of being the SPE president We are currently at less than 25% of the prior peak activity is the chance to interact with students level and at an all-time low for the Baker Hughes reported US rig and young professionals around the count dating to 1944. I wrote about the assumption that we are “riding the storm out” and pretty 125 soon things will return to normal. bonuses and other benefits have been lowered 0 50 100 150 200 250 or eliminated. Leo Tolstoy’s quote about fami. 1. If we include cable tool recovery had different causes.530 rigs and in the subsequent “ice age. or when an upswing will occur. 1 compares US rotary rig activity during the four most steam-powered cable tool rig to drill a 100-B/D producer in West recent significant downturns. shifting the focus to technologies with from peak rig activity.

This is also true for SPE. networking opportunities. disseminate. exhibitions have been affected by the financial difficulties of the companies who support SPE ac- tivities. Despite these difficulties. This reflects in no small measure our greatest as- sets.spe. Sponsor- ships and. to allow us to maintain continuity in our services for members. Noel Rietman. Recently. and the relevance of SPE to members who had been laid off—all very familiar topics from the past year of SPE Board of Directors discussions. since we do not know how long current conditions will last. SPE continues to offer events and training in which members can network. dues waivers for up to 2  years for members in transition. We provide eMentoring services. http://www. With more than 165. there are many reasons for hope. followed by larger independents. focused on how SPE was responding. health insurance. and then by integrated companies. and most importantly. SPE offered a voluntary severance package to staff. Should I Stay or Should I Go? The Way Ahead. member ben- efits. free admission on one day of many conferences. SPE has a reserve fund for “rainy days” like these. JPT • MAY 2016 . Most importantly. company support.petrowiki. N. Service companies reacted early and most dramatically. The resulting 12% reduction in the number of SPE employees was a sad first in our history. “Oily” independents and highly leveraged companies were next. the Board has had to prioritize services and make cuts in several areas. Taking a trip down memory lane.org). Every company is focused on lowering costs and increasing efficiencies. to a lesser extent.org) and PetroWiki (www.000 members and vast technical resources available through OnePetro (onepetro. and learn. No company could just “hope for the best” and keep doing what they had been doing. we invested our profits into growing the portfolio of services offered to our members. and training courses. However. free web events. 1987 SPE president. a competency management tool. the number and quality of technical papers remain high and the brand is solid. Training bud- gets slashed by operators have led to course cancellations. JPT Reference Meehan. SPE remains focused on supporting our members through good times and bad. Nonetheless. At- tendance at our events has been affected—more in some locales than others—so we have relocated many events to major oil and transportation hubs to facilitate ease of attendance. While times were good. share. SPE receives a large portion of its revenue from attendance at conferences. the members whose voluntary service and participation has never been greater. I reviewed copies of JPT from the downturn in the late 1980s. a way to stay current with evolving technology. 2016. and exchange technical information. At SPE. National oil companies often had significant capital contraction even if they had few (if any) layoffs.org/news/article/should-i-stay-or- should-i-go-young-professionals-and-the-industrys-future. 12 (1): 4–5. we continue to be the most significant place where upstream energy professionals collect. workshops. fol- lowed by an involuntary severance. we cannot simply continue with business as usual and hope that conditions improve before funds are exhausted.

DNV GL’s group technology Badrul H Mohamed Jan. 12 JPT • MAY 2016 . A. single-trip drilling. including better monitoring and more precise control of pro- Marc Kuck. inspection. Engineering missioning expenses. Schlumberger cost smart completions. Consultant improve the speed and safety of drilling operations and greatly reduce costs. lists six emerging technologies Alexandre Emerick. It will also require the use of related technologies such as Leonard Kalfayan. Rodney Wetzel. Schlumberger driven by cost pressures. email jdonnelly@spe. released last month. highlighting the need for such technologies Pat York. Baker Hughes Unmanned aerial vehicles will be used for onshore pipelines. Xiuli Wang.” reconfigured without a rig. that it predicts will have a significant impact on the upstream Petrobras Research Center sector over the next decade. Sunil Kokal. Plugging without the use of a rig would require that plugging and Otto L. Weatherford International as fully automated drilling and smart completions. Petrobras abandonment be performed with the well tubing in place. American Energy Partners and higher computing power. Gurpinar. DrillScan of longer tie-ins and simpler designs. managed-pressure drilling. according to the report. the report says. ConocoPhillips enhanced oil recovery also should be in full operation by 2025. BP GWO Completions ment involves costly permanent plugging. accounting for up to half of the total decom. Santos Nicholas Clem. FMC Technologies ter monitoring and diagnostic capabilities.000 wells that need attention. Ted Frankiewicz. and continued strong demand for hydrocarbons. COMMENTS EDITORIAL COMMITTEE Bernt Aadnøy. But its John Hudson.org. “Low- Jesse C. Saudi Aramco duction stability. WesternGeco and increased digitization. Current practice for plugging and abandon- Martin Rylance. Eni US Operating duction zones to maximize recovery. Saudi Aramco Smart completions. all contributing to uninterrupted flow and better integrity. Baker Hughes Alex Crabtree. Payne. could potentially boost addition- al output from complex reservoirs. Guzman-Garcia. Automated drilling could cut both drilling Thomas Knode. should be heavily adopted by the industry. Schlumberger use over the next several years because of economic.G. and environmental factors. the scope of government regulation. and bet. Saputelli. Schlumberger Mike Berry. Kuwait Oil Company John Donnelly. University of Malaya and research director. Sames said. Win Thornton. such as thin oil pay zones. The report predicts these technologies will be increasingly in Omer M. Hess Corporation automated drillpipe handling. John Macpherson. Baker Hughes tinuous flow from the well. Lee. Mike Berry Consulting Maria Capello. SPEC Services they are likely to be adopted at an accelerated pace and more Stephen Goodyear. Luigi A. JPT Editor Simon Chipperfield. has the potential to Greg Horton. Clariant Oil Services a need to drill new wells more efficiently. Silviu Livescu. maintenance. will drive simpler field development through the use Stephane Menand. University of Stavanger Syed Ali—Chairperson. University of Alberta Technologies of the Future William Bailey. cameras. Shell broadly than currently. BP plc ular pipeline inspection and will be equipped with sonars. Shell widespread adoption will require a “complete redesign” of drilling processes in order Morten Iversen. Hess Corporation Autonomous inspection of pipelines and the use of biodegradable polymers for Sally A. LLC to clarify their further use in civil airspace. Chevron ETC DNV GL forecasts the world to be consuming up to one-fifth more energy by 2025 Scott Wilson. DNV GL’s Technology Outlook 2025 Mark Elkins. That will help better predict flow-related problems and ensure con. JPT To contact JPT’s editor. Mark Egan. but regulations will need Mike Weatherl. and sensors. and Lee Morgenthaler. Hess Corporation The future of technology in the global energy industry will be Gunnar DeBruijn. Thomas. Shouxiang (Mark) Ma. Michael L. he said. Tom Kelly. fully automated drilling operations. Karachaganak Petroleum to gain all of the benefits. Autonomous under- water vehicles are more efficient than remotely operated vehicles in performing reg. Schlumberger Tayfun Babadagli. Retired repair. said Pierre Sames. Statoil While the technologies are not necessarily new to oil and gas. Zillur Rahim. This will improve leak detection. Santos. there will be Jonathan Wylde. with more sensors Casey McDonough. BP plc Rigless plugging and abandonment could be a particular boon in the North Sea. ConocoPhillips report. Statoil time and costs by up to 50% compared with conventional operations. regulatory. Baker Hughes Subsea systems will rely more on monitoring and data analytics to enhance pro. Saudi Aramco which has 8. Niall Fleming. Retired The first technology. Improved monitoring and analytics. Well Integrity. With operational cost pressures and oil price volatility. Ryder Scott Company than it does now.

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technologies have been used commer- nessed for power. Existing solutions are mature quarter of 2016. particu. and 10% with the poten- 350  million tonnes of CO2 release into for large-scale applications. A number of factors can affect the drive by the fourth quarter of 2014. and desire to undertake a reduction in the first quarter of 2015. for example. nity to generate an additional revenue emitted carbon there is seen to be little Proposed technology solutions are stream. GUEST EDITORIAL Creating Value From Flared Natural Gas Martin Layfield. ing on governments and companies to omies. the health and wellbeing of local com- to reduce the environmental impact as ered gas to processing facilities can be munities as well as contributing to well as provide an economic opportu. will vary accordingly. sphere that can have harmful effects on presents an opportunity for operators Retrofits and transportation of recov. This is equivalent to approximately or remote locations. gas-to- ing of a range of diverse technologies DNV GL has had a number of companies liquids. more to uncertainty in the industry about the Gas flaring releases toxic components than Africa’s entire annual consumption. natives like ammonia. and distance to market.” which examines Where there are carbon emissions reg. liquefied- managing contracts and relationships with a range of major petroleum-gas and natural-gas-liquids international clients. they were able to identify opportu- a variety of volumes and rates of gas technologies are emerging with a variety nities to produce valuable product alter- being flared. there is obviously more ket. The World Bank’s “Zero Rou. DNV GL has conducted and the implementation of technologies ferent conversion methods. which provided tion for missing targets. effective ways of transporting and con- in North Dakota. and carbon black. larly in countries with developing econ. By examining the most cost- existing oil and gas facilities. it could cially at a small scale. In the US. incentive to capture the waste from gas and their technologies/methods were The conceptual study looked at four flaring. developing solutions and securing and desalination. DNV GL Approximately 5% of world annual on real locations and field conditions as approach for assistance with the quali- gas production is being flared or vent. ogy solutions and means of transporta- 14 JPT • MAY 2016 . gas Clean and Economic. Algeria. To address both the need to end and economic drivers and limitations. If this could be har. and greenhouse gases into the atmo- Capturing the flared or vented gas turing the gas at these levels. ethanol. and the distance to mar- the viability of alternative solutions and ulations in place. More than 150 suppliers/vendors their revenue potential. technical and economic viability of cap. More novel techniques examined how to bring the market closer to the source Martin Layfield is the global segment leader of the gas value of the flaring and the opportunities to chain for DNV GL. gas tine Flaring by 2030” initiative is call. These included water oil and gas industry. This is perhaps due Technology Solutions produce 750  billion kW-hr/year. new value. our company considered routine gas flaring and tackle climate Access to funding to develop projects the technoeconomic viability of 19 dif- change concerns. and Russia. 15% by the first ing 140 Bcm would cause more than gas flaring. different geographies and the viability of different technologies achieve this target within the next 15 conjure various technical. nologies in the market. He has more than 25 years of commercial experience in industry and more than 10 years with DNV GL in the capture in-situ. He holds a degree in business administration recovery. onshore place for gas flaring that penalize opera. considered at different flow rates. and hydrogen. largely dependent on the flow rate. ceptual study. gas-to-power. but fewer tial for 5% by the fourth quarter of 2020. compositions. This enabled the model. These were research titled “Natural Gas Capture— is also a major factor. and ta Petroleum Council has set targets to equates to the combined gas consumption Understanding the Challenges reduce flaring. there are limits in researched. The technol- from Coventry University. As a result. benefit to capture the flared gas. regulatory. Global Segment Leader Gas Value Chain. costly. 23% by The World Bank estimates that flar. During the con- years. tors through the curtailment of produc. most flaring occurs at either aging and/ fication process to help establish tech- ed. of solutions. the atmosphere. These were set to 26% of Central and South America in 2013. The North Dako- 110–140 billion m3 (Bcm) of gas. Without a global cost penalty for climate change. Since issuing its research. composition. verting the gas into products of a higher and offshore Vietnam. Similarly.

or across any number of lateral junctions—all with a single control line. Find out more at slb. and make the necessary adjustments to maintain the well at optimal production. Using the Manara system to monitor and control previously unattainable zones. With patented inductive coupler technology that provides power and telemetry. 15-CO-87356 . in two or more sections. operators can now immediately identify problematic areas. Copyright © 2016 Schlumberger. Manara PRODUCTION AND RESERVOIR MANAGEMENT SYSTEM Water cut Fluid flow rate Pressure Water cut Temperature Fluid flow rate Pressure Temperature Increase production and manage inflow with real-time information and control in every zone. pinpoint the cause.com/manara *Mark of Schlumberger. the Manara* production and reservoir management system can be deployed in conventional or extended-reach wells. All rights reserved.

gets. Desalinization can clean methodology used in carrying out the that Obama has placed on renewables. Many of drive emissions targets further. Obama’s plan proposes a 32% cut ible solutions is highly attractive. particularly for small-scale the existing policy and technology devel. and the requirement for handle associated liquids-rich gas from regulatory and legal frameworks. as much as 30% to 40% of trial feedstock ethane. However. Opex. by 2030 on 2015 levels. the US has already made prog- tation infrastructure is often costly and small-scale gas flow rates. The fractur. Innovation is largely driven by If the industry is serious about ending ◗ Monetization of associated gas from the US shale industry. Installing transpor. time and resource ◗ Capturing vented gas existing gas-gathering networks. Although crit- and remote exploration and production ane. this emphasis on renewable growth applications such as micro liquefied nat. However. come the nontechnical hurdles such as where there is no infrastructure natives to flaring through connections to financial investment. beyond operational modification. safety. component to progress. ing. JPT 16 JPT • MAY 2016 . natural gasoline. Offshore gas-to-wire. LPG/ NGLs. that water and make it useable for local conceptual study. rather than using the flared ◗ Monetization of small-scale least. fallen by 15% between 2005 and 2013 ing process used in onshore shale gas ogy solutions as alternatives to flaring without regulatory incentive. and batteries Assess gas Assess technology Assess technology Assess Capex. the US and globally. greater aware. needed to encourage commitment from ties to create value from flared gas will Many of the novel techniques explored operators and policy makers. and the flow chart (Fig. meth. stranded gas fields elsewhere. current Though support for the World Bank’s ever. and associated gas solution product demand distance to market and reliability economic viability Selected suitable Onshore products from the diagram CNG – Compressed natural gas NGL – Natural gas liquids Opex – Operational expenditure LPG – Liquefied petroleum gas Capex – Capital expenditure NPV – Net present value Fig. and are and economic possibilities for gas flar. in the US. Although ther to go to displace coal as a friend- some solutions might be immature for Future for Gas Flaring lier carbon-based energy source. both in in the study. Source of Select technology flow rate and solutions and maturity. process to determine suitable technol. tion explored can also be applied to the capture of natural gas. In some North American shale regions more accessible drilling areas which are Major political forces will be a vital that experience a lack of infrastructure being used to produce propane. where many of the routine gas flaring and addressing climate extended well tests wells in North Dakota’s Bakken Basin are change concerns. ronmental and sustainable credentials gas hydrates. By using the four case studies with oppose it. Select suitable products from CNG. is production. mate change plan are determined to gas is being flared. given that natural gas still has much fur- communities as a water source. and conversion methods ness and understanding of the technical of natural gas given the improvements can deliver significant benefits. 1) shows the been some criticism of the emphasis duced water. How- near-term implementation. Many are at the pilot stage at emissions. emis- converting the gas can be highly ben. and indus. being made to reduce emissions in gas key in shale gas regions where regula. These commitment. As well tions to assist in carbon abatement and in carbon emissions from power plants as generating a valuable revenue stream. Tapping into the opportuni- tions will drive flaring reductions. proved that economically viable solu. It is a complex sions from power plants have already eficial to local populations. “Zero Routine Flaring by 2030” initiative should only serve to increase the envi- ural gas. NPVs. natural is gaining momentum. the study ress toward reaching its emissions tar- so looking at more economic and flex. butane. few are yet to be adopted gas to benefit society. compressed natural gas. 1—Technology selection methodology flow chart. it also needs to over- ◗ Resolving demands at remote areas already implementing affordable alter. ics of the Obama administration’s cli- activities. the development of flare gas for soci. There has extraction generates a great deal of pro. are maturing well opments are focused on reducing carbon following. etal use are possible.

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The machine is compatible with the company’s TorkPro3 torque/turns analyzing software. 1). At the core flow in horizontal or vertical wells. tem design compensates for bending evaluation. side loading to minimize space require- a zone or stage’s absolute openhole poten. and the combined equipment is compact enough to fit within limited pipe deck space. low power consump. rate for small movements. www. www. jaw changes and enhances operational mine a well’s in-flow performance. such as a three-axis Bucking Machine Tech-Flo measures fluid entry and the gyroscope. During makeup or gested uses of this system include post. It can reverse from makeup to be run in real time or memory mode. The Refrac Road Map Focused configuration. challenge. produces and measures uses capacitive sensing to measure the dling. An MEMS accelerometer consists safety by reducing the number of per- table.5 to 22 in. static bottomhole pressure. It can sors can be used for so-called “inertial efficiency. which records. It is movable and reset. and the grip- veyance methods include jointed pipe. 2—Weatherford’s ComCAM- the production is originating is more of a (MEMS) accelerometers in a three-axis 20/160-SL bucking machine. With only three sets of tial. pre-refracturing about expected movements. navigation. and sonnel and avoiding manual tubular han- well’s production. and an machine from Weatherford enables fully uses the flexibility of a hydraulic jet pump additional low-power accelerometer for rotational.000 lbf-ft. Combined with knowledge breakout. MEMS accel. tem. or fiber coiled tubing. 18 JPT • MAY 2016 . but of the LPHP platform are three state-of- determining from which stage or cluster the-art microelectro-mechanical-system Fig.com. 1—Schematic of the Refrac Road Map from Tech-Flo. visit Fig.tech-flo. and evaluates data from premium connections in real time. machine reduces the number of required flowing bottomhole pressure to deter. The open-head design enables a dead well’s production. Con. ◗ For additional information. It that can be used as a compass. the position measurements and shearing forces to reduce strain. but by them. According to ATEX regulations. Sug. a three-axis magnetometer The ComCAM-20/160-SL bucking phases of flow while in the hole (Fig. or other sen. can still become very precise. right inset: pup joint with Doppler production-logging tool. Left inset: jet pump. It measures three-phase flow. visit ◗ For additional information.com.” Inertial navigation is accu. including premium connec- www. visit of tubulars. and evaluation of vertical sor inputs. and can produce position of the proof mass. scale. The platform includes sev- Production Measurement System from eral other sensors. tions. It can each zone or stage is isolated between al mechanical systems on a microscopic be controlled remotely. the free-floating backup sys- fracturing evaluation. ured absolute position will tend to drift of tubular material. resulting in a standalone vibration- ate the complicated flow regimes in mod. MEMSs are tradition. Together. which enhances straddle packers. and low price.clampon. It is capable of generating torque up to 160. The wells with stacked pay. breakout operations of tubulars.net. monitoring and data-logging system that ern multistage wells. traditional piezoelectric accelerometers. and including small size. easily interchangeable clamping jaws. high-torque makeup and to produce and stabilize the well while longer battery life. bucking machine can be used for all types ◗ For additional information. It increases and measures a flowing of a system of springs and masses. Production logs can run continuously for weeks using work well at determining the phases of only a small battery pack. 2). breakout mode instantly.weatherford. the system can operate safe- ly in Zone-2 hazardous areas. ana- lyzes. but the meas. This unit operates in conjunction with a Weath- erford integrated pipe-transport system. ping force can be adjusted on the basis coiled tubing. tion. over time. JPT Technology Editor Production-Measurement Vibration-Monitoring Platform System The ClampOn LPHP vibration- Production logs have been an industry monitoring platform combines high standard for many years. tion. all the sen. erometers offer several advantages over ments (Fig. the perature. TECHNOLOGY APPLICATIONS Chris Carpenter. sensitivity with low power consump- selves they are not a reliable way to evalu. with diameters ranging from 4.

the patented HyFleX subsea tree system offers functional flexibility and the ability to batch set wells. The HyFleX* subsea tree system provides benefits of both vertical and horizontal conventional trees without the usual compromises. and can help deliver operators significant cost savings in field development over the life of the field.com/HyFleX All referenced trademarks are owned by or licensed to Schlumberger. Based on field-proven components. HyFleX SUBSEA TREE SYSTEM Based on field-proven components and designed for operational flexibility to reduce life-of-field costs. Designed so that the tubing hanger and tree can be installed and recovered independently of each other. Learn more about our leading technology at onesubsea. All rights reserved. the HyFleX subsea tree system can provide significant cost savings with multiple installation and recovery options. © 2016 Schlumberger. OSS-1062 .slb. mitigates risk.

20 JPT • MAY 2016 . visit www. The new trolley incorporates a proven pneumatic-drive system and can transit loads of up to 50 t at an average speed of 12 m/min. rately and reliably predicts the dissolve ical to a simulator’s performance. properties and specific bottomhole tem- peratures. zontal and extended-reach operations. rate of the Wraith Frac Ball in water on combining the extreme computation- tion because it can be used at multiple the basis of its (compound and physical) al power and bandwidth of GPUs with locations. ◗ For additional information. to allow production from all treat. current generation of which provides 5X vessel currently on charter to Noble Ener. and offloading rates may be achieved through the addi. fracturing sleeves. Cast and machined from an alu. both crit- grated pneumatic-drive system (Fig. rates. Protea has recently developed a self. shore drilling rigs and floating produc. storage. Fig. Fig. transport trolley. Stone Ridge Technology has introduced tions. and static-isolation subs (Fig. tion of corrosive fluids or an increase in or more memory bandwidth than cen- gy. 5—Graphic of Stone Ridge Technology’s ECHELON reservoir simulator in use. Fig. By A self-propelled trolley is a versatile solu. Phenom has developed an tral processing units and a similar advan- propelled transport trolley with an inte. The Protea pneumatic-drive minum base. requires less deck space.  3). The Wraith Frac Ball each currently available in five different plied a range of pneumatically driven dissolves at controllable and predictable formulations to accommodate a variety of winches. system ensures precise and reliable load shear strength is suited for high-pressure/ control and that the equipment can be high-temperature applications and hori. 4). 3—Self-propelled transport trolley from Protea. and is simpler to commission. however. 4—The Wraith Frac Ball dissolvable fracturing ball from Phenom. solid and hollow. begin dissolving. pressure fracturing.com. predominantly for use on off. faster dissolve graphics processing units (GPUs). ed zones. Dissolvable Fracturing Ball Phenom’s patent-pending Wraith Frac Ball is a metallic dissolvable fracturing ball designed to provide zone-successive isolation for fracturing plugs. the Wraith Frac Ball’s high www. empirically proven equation that accu. or produced water oil reservoir simulator supporting major winch. tage in computing throughput. Reservoir Simulator used in hazardous areas per ATEX regula.phenom-us.pl. of the Wraith Frac Ball. at temperatures greater than 100°F to engineering features. Protea has sup. the ing production. salt. Previous projects include a coiled.protea. The Wraith Frac Ball requires only expo. ◗ For additional information. and control sys. Phenom offers two versions Pneumatic Trolley tain integrity and isolation during high. ECHELON runs on tem that was installed on the Aseng float. temperature. an ultrafast extended black- tubing-handling system comprising an air sure to fresh. Over the past 15 years. Its high shear strength allows it to main. operator requirements. because there is no need to install a separate winch system complete with tow lines. The first unit is currently completing a program of extensive testing at Protea’s production facility in southern Poland. ECHELON. visit tion units.

s You’ll increase production rates. visit us at OTC booth 9053.recent advances in solver algorithms and modern software design. To find out more about Enventure’s ground-breaking SameDrift technology. s You’ll start production sooner. chassis has been engineered specifical. but www. elastomer. costs. logic descriptions without the need for upscaling. The fast run times and capabil. As pulling continues. When ity to handle very large models provide a removable production packer creates a the production tubing is pulled uphole. and risks and differential pressures as high as on the mandrel catch the outer packer during well-intervention operations. visit tion is needed (Fig. er wall flexes inward.com/SameDrift . shoulders nate nonproductive time. and the upper slips ly to separate from the casing wall when pull free from the casing wall. ed. with the production tubing. inner mandrel below the bottom slips. The ability to simulate very large mod- els allows the use of highly detailed geo.™ A More Efficient Way To Get Through Trouble Zones. while keeping the same ID. an industry first at wall.  5). With ECHELON.com. The BASTILLE designed segments break loose. 6). www. ECHELON is able to achieve unprecedented run times with only a modest hardware footprint (Fig. You can either tie back to the previous casing or simply clad the zone – or both. This action neers to handle multiple realizations for ing while the well is flowing. and the entire assembly is retrieved but can become permanently set when these ratings. The Baker Hughes BASTILLE high. to temperatures up to 400°F (204°C) the casing. 6—Baker Hughes’ BASTILLE HP/HT removable production packer. SameDrift. reliably disengages when well interven. the inner mandrel follows. On its way uphole.com. powerful and cost-effective tool for engi.stoneridgetechnology. specially ◗ For additional information. 17. the pack- www. The results? s You’ll reduce NPT. When intervention is need. a mechanical pipe cutter severs the ◗ For additional information. JPT exposed to high pressures and tempera. reliable seal between the casing and tub. visit tures.500 psi (1207 bar). This ground-breaking technology will help you get through trouble zones more efficiently than ever before. even after prolonged exposure es friction and separates the packer from Removable production packers can elimi.EnventureGT. and just as releases the bottom slips and relaxes the uncertainty quantifications. pressure/high-temperature (HP/HT) leaves the outer packer wall intact. This reduc- Removable Packer released.bakerhughes. Fig. models up to 35 million active cells can now be run on a single desktop with turnaround 10 to 50 times faster than that of exist- ing solutions that require big clusters. Enventure’s SameDrift™ lets you extend a casing string to isolate trouble zones.

TECHNOLOGY UPDATE Mature Flood Surveillance Using Streamlines Rod P. including faults as faults and shale barriers. And as new production/ ers automatically defines patterns and injection data are collected. ity implies that the past spatial pressure (light blue bubbles displaying injection distribution and gradients are immate. to further identification of well patterns and reli. Using measured historical produced and existing assets with minimal costs. and modeling since the early 1990s allow ity field will properly reflect the influ- CO2). high injection/production volumes are injection targets a guessing game at best Most floods are driven by pressure gra. tion distribution will do. need to calibrate the model to the past. volumes at the wells. For surveillance purposes. requires only a subset of these extensions mation about reservoir connectivity— tion or fluid cycling. and c) an sideration should be given to flow barri- have historically outperformed and assumption of in-situ fluid distributions ers. and if not. offer a ed for any moment in time without the pattern as being centered on a produc- 22 JPT • MAY 2016 . spatial pressure gradients. lines. it can be assumed duction volumes. For rics. measured rates to solve for the current ervoir management. SPE. with simpler models to create a feedback cantly simplified. and Marco R. include terms of production/injection volume rate targets. tracing be set that will improve sweep and reduce factors rather than forecasting. etc. which represent flow from field. Batycky. streamlines to be traced in 3D. or net to gross. one can define a injectors or aquifers to producers. they are reasonable for surveil- Being able to answer these questions lance because the primary objective is to Defining Injection Patterns with confidence enables target rates to identify current well pairs and allocation Once the total velocity is known. as these will radically affect the flow which have underperformed? How much if available. It is possible to add a spatial descrip- loop that is informative and valuable for ity is solved conditioned to a) measured tion of geological properties such as per- reservoir management. (historical) total injected and produced meability. wide range of flow physics.. By using historical be considered overkill for short-term res. such connectivity. and if not. An often overlooked detail is that his- ducers. and can even chemical floods. bubble plots are popular among engi- models require simulation expertise. such ment of an ongoing flood is the proper the subsurface geology. sure behaves like a liquid. Local oil is being recovered from each pat. While it is easy to identify all well geometries. complex geological descriptions. quality of a reservoir. the other hand. However. Alternatively. dients rather than absolute pressure. and port compared with low injection/pro- tion) model. the calcu. This is the reason why However. Which patterns a homogenous box can be used. oper. Even CO2 at high pres. permeability/porosity modifications. Thiele. Advances in streamline-based flow injected total rates implies that the veloc- mature floods (water. The starting point for any improve. Specifically. a are realigned to ensure that field recov. on tern for each unit of volume injected into Although these assumptions seem sub. a uniform satura. account for ence of wells relative to each other in egy is the intelligent adjustment of well. detailed calibrated reservoir that the fluids are nearly incompressible. are This is certainly true for water/polymer/ neers looking for clues to the spatial time-consuming to build. Special con- able pattern metrics. b) a description of as well as transmissibility barriers. powerful solution to define injector pat. porosity. and so streamlines can be extract. high-water-cut or high-water-rate pro. the veloc. chemical. rate targets Model Calibration Not Needed injector/producer pairs. are a lesser factor. For example. the result- lance techniques sidestep this problem lation for the total velocity field needed ing velocity field will implicitly reflect by using measured well data combined to trace the streamlines can be signifi. Streamsim Technologies With the recent drop in oil prices. pattern may be defined as an injector ery remains close to optimum. This makes setting and is much simpler to implement. SPE. streamlines from injectors to produc- fluid cycling. the pattern? stantial. at reservoir conditions. and flow barriers if available. 1) and all the producers Streamlines as a Solution rial to the solution of the current velocity connected to that injector by stream- Streamlines. condition the velocity field. Reservoir surveil. and incorporate a and spatial location. one low-cost optimization strat. ators are shifting to optimization of terns and associated key production met. field and tracing of streamlines. rates in Fig. The assumption of fluid incompressibil. it is not obvious to identify which applying streamlines for surveillance torical well data implicitly contain infor- injectors are contributing to oil produc. usually indicative of good pay and sup- without a calibrated reservoir (simula.

jobs/jpt . more sustainable. Apply now. We are looking for experienced petroleum engineering professionals to join our team.aramco. and more useful. www.p opl po d The power of our resources means nothing without the energy of our people. Their focus and expertise make our energy more dependable.

(left). Furthermore.30 1. The sum of all the (injector). summing up the rates of the injection rate. With WAFs in hand. (injector) by properly accounting for the To extract pattern metrics. which is simply the oil pro. determined by the streamlines and displayed using a patented flux pattern map.4×106 0. 2). centering patterns on tion history changes.2×106 Rate Oil Produced (rm3/d) 180 0. as produc. The diagonal lines represent efficiency thresholds. good vs. The plots in Fig. and cumulative oil produced by each pattern tical choice. 2 are a power- tion of the total flow rate of the wells to to estimate the efficiency of each pattern ful diagnostic view of the flood. poor use of injected fluids based sweeping it with injected fluid toward nection (Fig. Fig. on measured data. sible to associate oil production with an The final goal is to estimate future well ducer pair will quantify the total rate injector (as shown in the left frame of target rates based on the streamline- between the well pair (Batycky et al. (right) Cumulative oil production associated with each injector as a function of cumulative injected (water) volume. 2—(left) Each triangle represents one injector with current water injection rate on the x-axis and allocated offset oil production on the y-axis.10 4×105 60 40 2×105 20 0 0 0 100 200 300 400 500 0 1×106 2×106 3×106 4×106 5×106 Rate Water Injected (rm3/d) Cumulative Water Injected (rm3/d) Fig. the streamlines are It is also possible to estimate the injectors has proven to be a good. Fig. 24 JPT • MAY 2016 . prac. and because to the total well rate of either the injec. 2).0×106 160 140 8×105 120 0. That allows estimation of the well the calculations are based on historical the efficiency of each injector/produc- 1. er WAFs and then divided by the water line-based surveillance model so unique Similarly. gives a historical rank of pattern efficiencies. of the WAFs—giving a summary plot of the goal of a flood is to produce oil by tor or producer on either end of the con. There are usually fewer the total rate of an injector/producer pair of the streamlines to the final calculation injectors than producers. In other words.40 220 Cumulative Oil Produced (rm3/d) 200 1. A crucial value is 2008). the WAFs are recomputed. quanti- which it is connected. it is useful changing production rates and WAFs to consider each streamline as being the Estimating Pattern Efficiency over time (as shown in the right frame center of a streamtube carrying a frac. it is pos. It should be reiterated that all based pattern metrics. 1). the patterns evolve through time. and useful. streamlines between any injector/pro.20 100 6×105 80 0. updated. where connection thicknesses can be used to display each well’s production allocation factor in addition to using a label. This is what makes the stream- rate of that well. All images courtesy of Streamsim Technologies. The bubbles represent injection (light blue) and production (water=dark blue. 1—(left) Injector-centered well allocation factors (WAFs) and (right) producer-centered WAFs. fying the relative efficiency of each pat- streamlines ending or starting in a well is duction rate of all the connected produc. it is straightforward of Fig. tern historically (right) and currently therefore expected to equal the total flow ers weighted by the respective produc. the producers. oil=green) rates. er with associated injectors connected allocation factors (WAFs) as the ratio of observed well rates—from the derivation by streamlines.

Operators have shown that using a streamline-based surveillance approach to update rate targets can lead to incre- mental oil production increases above base decline rates. well pairs.P. Streamline-based surveillance is an SPE Res Eval & Eng 17 (2): 165– ing to the offset oil production and the alternative to other surveillance work. Approach for the 8th Tortonian high-water-cut or high-water-rate wells. tion on injector patterns. and 2014. tion models. Mature pattern floods can benefit sig. Thiele. and ed by the associated injector. It is a flows and distinguishes itself by (1) org/10. The limitation of a surveil.2118/166393-PA. avoid fluid cycling. allocation factors can be used in a real. but the wealth of informa. sic rate-target management workflow of the production/injection data through 2006. R. producer network—the flux pattern forecasting. inef. R. map (Fig. OMV has achieved a 30% increase in oil rate for a three-pattern portion of a waterflood (Kornberger and Thiele 2014). Reservoir in the Vienna Basin.doi. M.. (2) accounting Waterflood Management. With this nificantly from streamline-based sur. SPE 95402-PA. Using Streamline-Derived predefined fixed patterns and the adjust. which amounts to a data. 176. injectors and producers. In Oman.R. rather Reservoir Flood-Surveillance than requiring months to assemble and Methods Using Streamlines. build and can be used in real time. As well rates and water cuts change over time with updated well-rate tar- gets. et al. SPE Connection Efficiency calibrate as with classic reservoir simula. and Thiele M. allowing engi- to promote higher efficiency connec.P. 2008. ranging from 1% to 10% of fieldwide daily oil rate.O. resulting in new rate targets. defining patterns automatically from Thiele. (4) being applicable to water. which for the dynamic nature of fluid flow and Res Eval & Eng 9 (2): 187–196. JPT information. ficient connections across the injector/ lance model is that it cannot be used for org/10.R. and Batycky 2006). 1)—is what makes stream. the patterns and injector efficien- cies will also change. the streamline-based surveillance metrics should be updated routinely. with mini- mal effort. and Batycky. M. neers to make decisions quickly and References tions and demote lower ones (Thiele and efficiently to manage short-term oil pro. Kornberger M. Res Eval & Eng 11 (2): 387–394.er pair. http://dx. The improvements in both cases came at minimal cost.doi. an operator has seen a 2% increase in the fieldwide oil rate for a heavy oil flood as a result of the intel- ligent redistribution of injected water. SPE 166393-PA. (3) SPE 84080-PA. duction. the use of streamlines that connect Injection Efficiencies for Improved ment of rates to maintain the fixed pat. usually does little to promote sweep or allowing patterns to change in time. such as WAFs and efficiencies. CO2. Because there is no assumption about fixed patterns. http://dx. http://dx. SPE tern voidage replacement ratio. but now which injectors are contribut. extracting per-injector/-producer met. Surveillance models are easy to Baker. fundamental improvement over the clas.. R. the fraction of oil produced at a Summary rics. The ability to identify efficient vs. age the reservoir. Opera. Revisiting driven approach to improve sweep. Experiences With an line-based surveillance unique. Batycky.2118/84080-PA. such as injection volumes and pump capacities. In Austria. chemical floods. and well due to a fraction of volume inject.doi. subject to operational con- straints. the field is nudged toward improved sweep as the good injector-producer con- nections are promoted and the bad ones are demoted. efficiency of this contribution.R. well rates can be modified veillance-type workflows. Efficient  Rate-Management tors know not only which producers are time feedback loop to continuously man. JPT • MAY 2016 25 .2118/95402-PA. Using this feedback loop. org/10.

creating a savings opportunity on drilling chemicals. Photo courtesy of J. Texas. the bits of step further by acting on the data to mines to measure things such as the size material that flow back up to the sur. a process known as shear degra- 26 JPT • MAY 2016 . ation is running smoothly. also the director of UT’s automated drilling research consor- tium. which allow drillers that they tend to break down inside the to quickly determine wellbore conditions and avoid problems. Van Oort. including agricultural plants and of feet through a wellbore. and react if things head south. otherwise known as a loss circulation event. Eric van Oort. A critical characteristic of LCMs is Particle-size analyzers deliver precise measurements of drilling fluids. a professor of petro- leum engineering at the Universi- ty of Texas (UT) in Austin. mix. which out- lines the capabilities of various analyz- er technologies. make precise adjustments to the fluid of corn kernels or to identify materi. On a rig. and they may also help move automated mine how the well is really holding up They are routinely used in a number drilling efforts forward. but he sees immedi- ate benefits for operators and con- tractors who commit to using it. E&P NOTES Drilling Down On Particle Size Analyzers Trent Jacobs. well. unprecedented ability to quickly deter- ing sector. explained that analyzers will improve upon how drillers currently monitor and make decisions in main- taining the quality and size of lost con- trol materials (LCMs)—substances used to plug fractures in wellbore walls that may lead to the partial or total loss of the drilling fluid.” van Oort said. As drilling fluids circulate thousands automated analyzers would go one trol. drilling rigs. Fully of industrial processes for quality con. Addressing these areas could help avoid or mitigate lost circulation events. into trouble. difficult conditions significantly easier. JPT Senior Technology Writer Automated particle-size analyzers are als that might damage a rock crusher.M. or running something you will not see on most for instance. particle size analyzers would Directly measuring these particles side-the-oil-field technology will play generate value by making drilling under would give rig crews and engineers an a big role in the future of the drill. Canty. He coauthored a technical paper on the subject that was  presented in March at the SPE Drilling Conference and Exhi- bition in Fort Worth. face can be a telltale sign that the oper. “which still account for billions of dol- lars in [nonproductive time] annually across the industry. but some think this out. believes the adoption of such technology is in the early stages.

manufactured and installed by Cameron in the Gulf of Mexico. we look forward to extending our leadership in flow control technology. Cameron offers fully automated drilling technologies for onshore and offshore operations – all backed by full life cycle support.000 psi in the field today were designed. Today.000 psi and 25. Find out more at cameron. as part of Schlumberger.com All referenced trademarks are owned by or licensed to Schlumberger. Cameron has the largest installed base of BOPs in the world. In addition. All rights reserved. © 2016 Schlumberger. CAM-1007 . Now. from conceptual design to installation and commissioning.slb. Flow Control Technology Leadership High-pressure large-bore BOPs in the Gulf of Mexico Drilling Technology Sets the Standard The only large-bore BOPs rated 20.

high. a Buffalo. The critical components include a criteria for mitigation. the company has developed One of the unique features about the ticular well. al oil companies (NOCs) and service fog clears. Nandurdi. environment. detects changes. operation. LED backlight. political. we don’t know whether this is In a presentation hosted by the SPE companies managing their own proj. He said the indus- Series. Canty says it the world?” Priore said the system is equipped has used the technology to develop the One caveat is that the analyzers must with automated valves controlled by sight glasses on space shuttle fueling be able to leave the laboratory and software which eliminates the need for lines and is the only company using it in the static environments of processing much human involvement in the device’s the oil and gas industry. for measurement and a “sacks per hour” ly. fication is key to developing efficient that we see. spot on. he said. projects. surements including how much fluid is exactly what’s there. can take action by sending commands to that he predicts analyzers will eventu. the task itself is harder for plexity. “We see what’s there and measure By adding a hard drive to the system. of a problem. ects. panies face in their operations: techni- tive actions the industry should take to tional multinational E&P company is cal.” lor them to the requirements of any par. Tech- improve project efficiency. New York. cialists in other countries outside of types of complexities that E&P com- aj Nandurdikar discussed the collec. and NOCs partnering with spe. “Journey Towards panies can only determine the ways in around the geological aspects of a project Efficiency. top marks for accuracy went to a device scopic lens attached to a high-perfor- cient for automated drilling operations built by J. The reason is because com- mote capital effectiveness and col. that allows the fluid and particles to ly indirect fluid loss measurement that ket. exploration and produc. Nandurdikar said these com. ally enable the automation of key mea. Simply put. that’s why we’re the images can be recorded and ana- being lost into the formation. try has learned how to handle most of 28 JPT • MAY 2016 . their home base.” he tion (E&P) companies must better han. not engage in enough cross-disciplinary direction. automated. a business lyzed later. with nation. Owners and operators E&P companies now because they do illusion that we are headed in the right must emphasize the long-term viabil. “Delivering Projects at Less a low-price environment. the Canty device footage of the particles at that exact for optimum fluid loss control and tai. Setting up the analyzer has less and less effective. the role of a tradi. in a way that is much more a field-hardened version that is fully company’s device is that the flow cell appropriate than the current. As the software financial impact. formance in the oil field and be easy to also been simplified. an collaboration. only one of the new devices has be observed is built by fusing glass to uses paper as a filtration medium—and been installed on a working rig for an metal. Simplification Key To Delivering Efficient Projects in Low-Oil-Price Climate Stephen Whitfield. Priore said that in the event Future systems. But due to the down mar. such as water depth and reservoir pres- ment of the study group’s Spring Event tions after they determine their roles in sures and volumes. and organizational. we see it. to press start. the ben. a flow cell. Staff Writer To survive in the current low-price Than USD 50/bbl.” van Oort said. said. “We have to attack it everywhere dle the complexities inherent in their Nandurdikar said that while simpli. then. Once installed. used at extreme pressures. Project Analysis. right problems. nical complexities typically revolve kar’s presentation.” van Oort went on to say. We think we’re solving the ity of their assets over high returns. mance camera that captures images of and as mentioned above. Among the systems studied by UT. and all aspects of complexity projects through practices that pro. used was a laboratory model and since time and see if there is a correlation. which they can simplify their opera. “If we want to achieve efficiency. but oftentimes. tor of the E&P practice at Independent we’ve really got to attack complexity. Canty. Facilities.” Gulf Coast Section Projects. the dard methods to deal with shear degra. In addition. Industry stan. in flux. “Otherwise. “will allow us development leader with Canty.” was the fourth install. the best project to do. Canty’s relies on high-resolution cam. which ultimately renders them plants. nology for a number of industries. dation.” He is the direc. and a micro- such imprecise methods are not suffi. eras. or specialization. the fluids passing by. an operational system on the rig. it can alert a remote “The longer-term objective is much Whereas other systems depend on monitoring center via the Internet or it bigger. use and maintain.M. a process that allows glass to be how much paper do we drill around undisclosed contractor. have a severe based firm that develops process tech. “You can look at the video to fine-tune [particle size distributions] In the UT study. Neer. until the expert said. creates the laboration. device is calibrated and the user just has dation involve the manual use of sieves efits of the technology evaporate quick. and demonstrate a strong per.” said Miles Priore. Nandurdikar said there are three and Construction Study Group. adding lasers to gather their measurements.

and you create XPLORTM Basic emulsifiers offer an economic alternative by meeting problems down the entire supply chain. the XPLOR logo and the Georgia-Pacific logo are trademarks owned by or licensed to Georgia-Pacific Chemicals LLC.” Political complexities require the adoption of a concept called “co. embrace a collaborative spirit on issues like local content requirements in a region while still being mindful of their competing interests. system. you are all competitors working done safely. Chevron. An example he gave is economic environment.gp-chemicals. He said such a cul- JPT • MAY 2016 29 . meet the budget.these issues. but guess drive costs. pen unless competitors are willing to dealing with the local conditions of a or they should be working together. and the requirements of other stakeholders such as joint industry proj- ect partners. and suppliers. they may wreak havoc on projects. expect from the emulsifier experts. and Exxon are competitors. but areas remain in which ture shift is necessary in the current on government issues or local content it can improve. Georgia-Pacific Oilfield Chemicals. symbi- otic ecosystem with service companies. the supply chain. opetition. subcontractors. “There are these divisions. Nandurdikar said organizational complexities may not have a particularly negative impact by themselves. cooperate.com/JPT5 ple. These include local con- tent requirements. However. “Yes.” he said. accepted by owners. The industry’s push for increased safety in its operations in recent years is the result of a cultural shift that was XPLOR. • Meet the requirements. no sin- gle supplier. to the supply chain—and start thinking of themselves as part of a larger. trying to make sure projects are technological redundancy on facilities. government regu- lations. and ©2016 Georgia-Pacific Chemicals LLC All rights reserved. Basic Emulsifiers functions. cades down the line. Don’t pay for unnecessary features. • Get the job done. To solve organizational complexi- ties. operators. rudimentary performance requirements combined with the quality you Until we start thinking of this as an eco. issues. same culture that drove safety to now or separators. that can do a project any- more. Nandurdikar suggested that E&P companies not think of themselves in a transactional manner—as operators putting out projects and dictating needs WHY PAY FOR THIS. and specializations present in companies that did not exist in pre- vious years. We’re going to bring that such as the use of unnecessary valves for different goals. He said it is possible for companies to • Available for both mineral oil and diesel solvents. The same goes for your emulsifier purchases. because adding functions and departments cre- ates additional jobs. and that’s not going to hap- Political complexities arise when what? They’re also working together. Shell. WHEN ALL YOU NEED IS THIS? “There is no single company.” or competitive competition.” Nandurdikar said. I doubt we’re going to get the kind of innovation we need. Contact us at 1-866-447-2436 or Nandurdikar used safety as an exam. when combined with technical and political complexities. Any ripple effect cas. BP. visit www. JPT given project. Organizational complex- ities are the additional departments.

zones that are productive. and prices. USD 20. but they share some fracturing them. and output of these two methods ing fracturing. “We tings and produced oil to identify sourc- points. to gather information that do not affect selling new ways of cutting the cost and whose price limits their use in unconven. that might yield 70 wells a year. which is the most established ducing little or nothing. a board adviser for Drill. these new ventures are all seeking technology options right now. shale would be to identify what it does as “drill bit geomechanics. Each well fracturing productivity. direc. such as well logs. Ingrain.” said Kevin Wutherich.” The methods vary. They are offering ways There is a growing group of companies to accepted methods. before Both are selling rock property analysis options. Vorpal Energy Solutions. sure total organic content. as well as scanning elec- vary. to design completions for gas wells in the cost of production from er. We have a program can generate more than 50 million data Customers “want it cheap. methods that are lower-cost alternatives common traits. operations that can be quickly turned tion cost. as do the scale.” The technology used has only recent- recorded while drilling to compare rock Based on favorable tests. data-gathering targeting the most productive spots dur- ing. Fracture ID. That might not fracture stages should be placed and Chuck Matula. Stephen Rassenfoss. of the group but still a young technology “I think better placement is where alternative sources of data: cuttings. fluids. neers to reduce the number of stages pro. operations at a price and pace that allow time required to gather data while drill. or well pressure readings. the pore scale. a startup company created by USD 100/bbl) but these days we will chase be refractured. whose website describes the Marcellus. tional plays. which can be used to improve are even looking at stuff that could save es of oil along the wellbore. want it fast. differ significantly.” said Vikram Rao. execu. While the methods and data points “Definitely we are exploring lots of and brittleness. have created an appetite for new ideas. sells a competitively priced ser- the money is. Others are relying on readily available. Biota is doing DNA analysis of drill cut- into a report on a limited number of data tor of completions for Rice Energy. Anything tron microscopic (SEM) imaging down to to gather data or samples during normal to drive down our dollar per foot comple. Rice Energy ly become affordable enough to use on hardness along a wellbore. company. But the cost. so that points that can be used to decide where and want to see a return quickly. “If you were to do a DNA 30 JPT • MAY 2016 . method. have been too big a deal (when oil was at which stages in an existing well should 2Frac. that uses data that down. or not. JPT Emerging Technology Senior Editor O ne of the biggest ways to lower It is competing with another newcom. They are hitting vice analyzing rock cuttings with chemi- tive director of the Research Triangle the market at a time when low oil prices cal and elemental analysis testing to mea- Energy Consortium. is moving toward using Drill2Frac data a large scale.5 million.000 a well. mineralogy.” said is about USD 1. which will allow completion engi.

in these wells at these prices. Basin. will encounter different stresses based on 1 4 7 sequence of a cup of coffee it would have Poisson’s ratio. The penalty for doing it wrong since the oil price downturn. The value of these ventures will depend erences in the literature of companies In the real world of unconventional on their ability to increase production. which is a rock mechanical property cost you USD 100. that significant insights can be gained ning a tool into a long horizontal well. the alternative is often no “Our whole goal here is to provide Walls said. based on rock property data gathered during drilling by using tools such as well logging.” development. used. The ultimate endorsement would be really. information that allows operators to as we move forward. All are aimed at answering ques- tions that can be answered in other ways Fracture modeling. Fracture ID.” he said. improve production. be a paper from an operator laying out director unconventional technology at ing. each with three perforations spaced 50 ft apart. doing geological spacing of fractures. which once cost USD  350. for example.” effective.” Neale from using this new method in conjunc. enough to do any science. gies fit for the times.000 dent of Fracture ID. use and present risks. There is such a small margin logging. and the geometry of the pore net. Darren Schmidt. The numbered pictures on A growing part of Ingrain’s unconven.” work. Selling it will require convincing users because of the expense and risk of run- The products need to be “reliable. relatively inexpensive SEM to see if kerogen is found in the the market at a time when the industry way to come in and verify your model as pores. but in this market that is still a lot can be used regularly while drilling in diagnostic method for unconventional of money. Matula said. is quite high. He said some layers of the how to do the best placement of perfora.” said Chris Neale. but did not provide further details The Point “There is an increasing number of ref. Matula said ulation design. are so thin that the The value of the new methods will Those sorts of details are hard to come rise and fall of the wellbore along a lat. ric designs. tion with other data. Courtesy of Fracture ID. and the ability of fracturing such as altering the size mix of the sand crews to precisely target stages. tic methods were used to significantly Wolfcamp shale play in the Permian tions. It is taking what it learned from converting available pump pressure data 3 6 9 during fracturing to map fracture net- works and working to turn it into a busi- ness. horizontal well shown on left.”  JPT • MAY 2016 31 . Well log- optimize fracturing at each stage by right direction. or core samples. Three stages. Statoil said fracture images based on eral can put it in multiple zones with diverge from their habit of using geomet.” said Joel Walls. presi. cost. research and technology group. “It will become more common testing at all. which help determine if it will ing how it completes its wells. The data are more widely ging costs have been sharply discounted matching rock properties with the stim.” a well for the service and rig time need- The business plans assume that the As with the drill bit data companies. “No one is logging a well anymore well to well. Reveal Energy Services. available. has led to a “lot of energy put into how data from one of these diagnos- Ingrain. really high. hinge on the willingness of companies to by. tings to see if they can be readily bro- ken when hydraulic pressure is applied which now are obtained using logging Much of the testing was done in the and if they have the organic content tools that are too expensive for regular Bakken Shale. pressure data led it to makes changes different characteristics. to what is happening. is looking at the fractures pro- duced. The goal is to offer detailed data.” said Moji Karimi. has slowed to a crawl and is reconsider. said. “These are little technolo- said. “It of a select group of samples using a New rock testing methods are hitting is a simple. “Prior to the crash they never slowed working on field tests comparing their “Almost every well we look at is sur.000 5 years ago— that affects stress. a princi- that can make them likely to fracture.” Matula said. results with standard diagnostics to con- prising in some way. A spinoff from Statoil. formations prone to abrupt changes from formations using readily available data. quick. The amount of The erratic results from designs stim. known as geometric fractur. vince users of the value of their informa- heterogeneity in a lateral wellbore can ulating regularly spaced spots along a tion. and high resolution. The trends are in the Cost has long been a barrier. the right predict what is likely at the numbered locations along the yellow tional rock business is testing drill cut. it says are proprietary. All of the companies mentioned are be productive. shows how the performance of three stages will likely vary due to distinctly different rock properties. the business development man- 2 5 8 ager at Biota. such as getting pal engineer in Statoil’s shale oil and gas What makes it different is its analysis stuck in a horizontal wellbore. The nine figures on the right predict seismic testing. ed to deploy it. now costs half that industry needs diagnostic systems that Reveal is commercializing a lower-cost much. wellbore. micro. how fracs will develop at each of the perforations. today it’s a hundred bucks.

as the bit wears. Users wanted better rock prop. BP Mechanical Factors produced during certain types of frac.800 12. Both are offering measure that avoids the time and logisti. the drill bit both affect these measures. I could not differential pressure (wellbore pressure Turning those feelings into a reliable tell them what microseismic was telling minus pore pressure) that a rock is sub- measure of the properties of rock based them. late the microseismic. It is a number calculated using ture ID.630 10.670 10. Drill2Frac creates a wellbore map showing variations in hardness along a wellbore.590 Total Vertical Depth (ft) 10. erty information to improve the inter.650 10.660 10. tool into a horizontal wellbore or setting the efficiency of various combinations ing fractures by providing information up surface receivers for microseismic.640 10. JPT Emerging Technology Senior Editor T he force required to drill through a rock is a direct test of its strength and stiffness.580 10. described a formula that it developed The changing condition of the rock and turing. others is mechanical specific energy Two startups. that could give us high-resolution rock measurements such as the torque.000 16.500 15.” olutions-per-minute. weight on bit. which images the property analysis. world I was very frustrated. That approach is “based on the theory a power drill to drill through plaster uses downhole drilling data for imaging. ing data.” the paper said. that the energy spent at the bit to remove and then hit a wooden beam can feel “When I was deep in the microseismic a volume of rock is a function of the the difference. offered to customers. Image courtesy of Drill2Frac. who A key measure in that approach and eral is a large challenge. impact of fracturing based on the sound In a recent paper (SPE 178842). but These companies are building on Experts in geomechanics—which apply at a significantly lower price. and sources of the inputs and the outputs Data gathered while drilling offer a the penetration rate while drilling. are selling services that do that. For example. and to measure used diagnostic method by those design. Drill2Frac and Frac. There was no in-well data to corre. on the force required to drill a long lat. was a cofounder of MicroSeismic Inc.610 10.600 10. president of Fracture ID.000 13.” said Neale. jected to while drilling. Drillers use it as a measure of how effi- an option that can become a routinely cal challenges of running a sonic logging ciently they are working. “We needed an inexpensive data stream (MSE).620 10. which las dating back to the late 1960s and early 1970s.300 Lateral Length (ft) Based on data gathered while drilling. The work improved on formu. microseismic testing. said Chris Neale. comparable to that from a sonic log. of hardware and settings while drilling. Anyone who has ever used pretation of the changes in microseismic data gathered around a well. work going back decades on formulas mechanical engineering techniques to Rock property information was also to quantify rock properties based on rocks—use it as a measure of the force often a missing piece for those doing data gathered while drilling and rock required to break up those rocks. rev- though their methods vary based on the properties for every well drilled. Getting a Feel for the Rock Stephen Rassenfoss.570 10. the rate of Trajectory Plot 10. to estimate pore pressures using drill. 32 JPT • MAY 2016 .

ticularly difficult in horizontal wells. because USD 30. “Placing sensors right behind are comparable to the sonic logs. Matula said. if we can help them ownership of the first version of the soft. the idea of using than Drill2Frac. HD4 50K–75K downhole information to improve the including locations of significant frac- rate of penetration” and monitor the con. The challenge for drill bit. Real-time drill. ers downhole data using sensors located Based on data and logs from old wells For example. including as an indicator that fractures are present. identify when the bit is sticking or slip. Matula said. rather than estimat. which was an early partner in reports into even modest gains. get during fracturing. director of com- miles long.” Neale said. to make these tests a regular part of the downhole measure of torque. To gather a which can quickly go bad during short. Drill2Frac is using Neale said. MSE—Mechanical specific energy said is no longer involved.long the tool appeared to offer data which at the surface are often considerably carrier sub. in paper SPE 174839. which was used for work covered mate recoveries everyone is a hero. HD11 225K–250K Drill2Frac’s methods have been used to At this stage the users are looking HD12 250K–300K evaluate about 200 wells for 25 operators for correlations between the data gath- over the past 18 months.000. tures intersecting the wellbore. It still shares “On a completion. Maneuvers required for drill.000. ing a curved well also affect the output. Image ware. Abrupt Fracture ID reports it has worked in Drill2Frac gets its data from the sur. This becomes par. been doing tests comparing its results units sold under the Pason and NOV Fracture ID’s analysis is designed to with dipole sonic logging in horizontal Totco brands. output. which affects the readings. and its ductility—Poisson’s ratio. Hardness Increases HD5 75K–100K dition of the bottomhole assembly “is get. JPT • MAY 2016 33 . nificant changes. The difference is due to the energy the forces on the bit. Energy as a possible lower-cost alterna- Another obstacle is that the drilling data ping. alternative. tive to sonic logs. with two wells fractured based on contact with the surrounding hole. and offers added detail. well “within the noise level of drilling and HD2 15K–30K mize drilling efficiency and monitor the completion costs on wells. and Its equipment records data with every log data and two based on drilling data. The data are retrieved process when planning completions. from the sensors when the drillstring The cost is low compared with the sure as well as the mud motor pressure. Fracture ID gath. differential pressure and standpipe pres. changes in the rock properties are used four unconventional basins. measures of torque done directly behind the drill bit in a 12-ft. Color Hardness MSE er reports in real time. For Fracture ID the cost per well is about ing data could serve double duty. If users HD13 300K–400K Some of those jobs were by C&J Energy find ways to turn drill bit rock-property Services. ered and their fracturing results. and it has face drilling data recorder. which it uses to identify gathered are different based on where the To avoid the challenges that come with spots with similar rock properties to tar- measurement is done. looks at changes over much shorter spans HD3 30K–50K “On the drilling side. those measuring the rock properties is to las to estimate the impact of bit wear and The tool attracted the interest of Rice tell one from the other. and using more science.” The report condition of the bit. it uses the lived incidents. on a four-well pad compared to a sonic lost to friction as the drillpipe comes in ing them from surface data. and to 15% of the companies leaning forward offers valuable insights. it could HD14 400K–500K development of the software that Matula catch on. The higher than measures done near the drill the drill bit allows us to directly measure company plans to test how it performs bit.” courtesy of Drill2Frac. the force required to twist a pipe that is turn of the drill bit to detect changes said Kevin Wutherich. The drilling data analysis companies HD6 100K–125K ting a lot of uptake in this environment. which Neale describes as HD1 0–15K MSE can also be used by drillers to maxi. get just a 3% to 4% increase in the ulti- Drill2Frac measures the hardness of the rock along the wellbore. More data may help answer the Selling drill bit geomechanics will require question “Why do results vary so much?” HD9 175K–200K convincing users it generates reports as “The initial sale process is to the 10% HD10 200K–225K accurate as the established methods. correcting surface data. in rock strength—Young’s modulus— pletions at Rice Energy. Those tests will help validate the into a cloud computer system that can caused by changes in the tool condition. log. there are numerous theories as to why HD7 125K–150K performance varies widely from stage HD8 150K–175K Checking Value to stage. It also uses proprietary formu. The data are transferred adjust the data to filter out differences wells. and are working on ways to deliv.” Neale said. with Drill2Frac charging Both companies are offering reports USD  10. but their goal is to convince users return a report within hours. is pulled.penetration will slow as if it were cutting which offer an estimate of the force at the a newer version of the software with sig- through stronger rock.” are hitting the market at a time when Neale said. the wellbore. The output shows differ- on well sections after they have been ences in the strength in the rock along Hardness Index drilled.

the use of DNA sequencing technology has largely been relegated to the domains place the wells. Biota sam- ples several sources of DNA. not just the life of the tracer. along the wellbore allow Biota to gener- imize production in horizontal shale Biota so far has used its technology ate a production profile which can then wells by directing operators where to on 60 wells operated by six different US be used to design engineered comple- tions in subsequent wells. To screen for contamination. customers can’t answer today across mul. chief executive officer of Biota. and sample to about USD 100 in just 5 years. a California. “It is a high- resolution data source that provides 4D analysis across the production life cycle.000 per that microbial DNA sequencing is about as accurate as chemical tracers.” During a drilling operation. including the humans working on the job and any Mean Production dirt at the drillsite that may be swept into the well during operations. what is the fracture height for each well. and demonstrate its value proposition 34 JPT • MAY 2016 . There are hundreds of care industry. and what is the connectivity between to stand out. “Think of the DNA as a tracking device. the subsurface. Founded in 2013. Biota says DNA multiple wells?” said Ajay Kshatriya. same-well comparisons have shown costs from around USD 100. DNA Sequencing: A New Diagnostic Tool for Shale Wells Trent Jacobs. a leading DNA technology devel- oper that credits itself as a pioneer in the effort to drive down sequencing For the application of production profiling. All this information is com- piled and sifted through by the com- pany’s data scientists and its machine learning software to find the most important correlations. or to identify refracturing opportunities. Their unique signatures and locations sequencing technology can help max. are associated with hydrocarbons tend based startup. These samples come from drill- ing mud and cuttings and provide base- line data needed to characterize the well as production begins and comingles all of the microbial DNA. it provides usable data over the life of the well. and how they should be completed. and rock in of criminal forensics and the health. As it continues to build a track record Graphic courtesy of Biota. “We are addressing questions that our producers. Its novel approach involves analyzing the DNA of tiny microbes that coexist with the oil. which doesn’t introduce environmental risk or require downhole tools. More samples are taken during com- pletion operations and then from pro- duced oil and water during production. as many as 600 samples may be taken from a sin- gle well. water.” said Kshatriya. inside a formation but certain species list is Biota Technology. Among Biota’s largest investors is a Biota’s DNA-Based Oil Potential Score multibillion dollar company called Illu- Oil Frac Tracer % Contribution mina. The company betting that tiple scales: Where are the sweet spots thousands of different microbes living the shale industry soon will join that and producing intervals for each stage. JPT Senior Technology Writer F or the past 2 decades.

downside is cost. “But you are generally used only on pilot projects hopes to develop new ways to analyze can’t get that 4D snapshot along the life and science wells. more data than a geochemistry test. © 2016 Baker Hughes Incorporated.to the industry.” materials to generate usable insights. the DNA data in real time. Biota aspect that the company hopes will dis. Biota’s sampling deliver high-resolution data. In the short term. DNA sequencing provides 1. variations in production behavior. Unlike other “removable” packers. sequencing and geochemistry tests can But the company notes that it was questions our customers be run at any point in time to analyze the founded on the idea that the new and can’t answer today across makeup of a well’s production stream dramatically lower price point meant and depend on the presence of organic shale producers could now afford to multiple scales.” noted Kshatriya. Production logs are generally viewed gy next to downhole fiber-optic sys.com/BASTILLE to learn more about this industry-leading HP/HT removable production packer. fiber-optic systems tinely use. studies. Biota has yet to disclose “We are addressing output is geochemistry testing. DNA its pricing structure. Current lead cycle of the well—you get an initial point Perhaps the most similar technolo. from a sequencing. 44216 04/2016 . if the ties. But the company points out that tinguish it from the established technol. technology in each and every well—an geochemistry tests. Like DNA sequencing applications for convention- process is done at the surface.500-psi well. Farther down the road. fiber-optic systems provide al wells and offshore production facili- shale shaker or a flowline for instance. the VO-rated BASTILLE™ production Stuck with a packer you packer stays removable—even after maintaining a gas-tight seal for years thought was removable? in a 400°F. data for months after installation. which allows it to detect much smaller as expensive and they require wells to tems which have gained wide accep. time from field to laboratory results is in time and that’s their real limitation. use DNA sequencing as a diagnostic Biota says its DNA data line up with Ajay Kshatriya. Biota is also putting its technolo. 17. per independent Chief Executive Officer.000 times ogies it is competing against. it great tools. surface data sets that companies rou- “Tracers and microseismic are also lion per installation. All Rights Reserved. but their biggest to integrate DNA data with other sub- be sent downhole. Visit Bakerhughes. be shut in for a period of time until the tance in the industry for their ability to The company has also explored DNA tool run is completed. At around USD 1 mil. Biota has goals and requires no shut-ins or anything to fiber remains intact.” gy to DNA sequencing in terms of data about 2–3 weeks.

” well data.000 per well. adding the qualification. known for being a pioneer in time to consider what they need to do. has built a business test. to well. unpredictable variations in the rock. JPT Emerging Technology Senior Editor W hen describing what Ingrain does for oilfield clients.3 to 0.” Walls said.2%. mercial scale” using current technology. company. for a price that he said is in the same range with other new testing methods costing less than USD 100. But there is a limit on the time He brings it up repeatedly because the Walls said. and a look at pore-scale imag- ing to quantify the hydrocarbon-filled pores. while pores with kerogen in them (red) make up 8. 36 JPT • MAY 2016 . “The asset teams and technology that tored science wells to establish a standard design for the many wells that followed.” That points to the toughest challenge facing those selling wide area analysis based on testing tiny rock chips drawn from cuttings gathered every 30 ft in lat- erals often 10. and similar observations from other An image of a microscopic rock sample shows the different sources of oil and wells in the area. but it is normally about a week.000 ft long. Joel Walls. and water filled pores (blue) 0. points out that remain in these (operating) companies case for the value of adding individual it is “not just for science. Walls said. Grinding Out Big Data From Tiny Samples Stephen Rassenfoss. Vertical Direction “Everyone is interested in drill cuttings.” are some of the best in the industry. Wide performance variations made a al technology. which provides a good estimate of permeability. the rock-test- ing company’s director of unconvention- using better diagnostic testing at a time when drilling has greatly slowed. The turnaround time can be days. Courtesy of Ingrain. “The objective is to do it relatively inex- methods built on imaging ultratight rock plan. With the slowdown there is and money available to do so. To deliver on that Ingrain had to develop ing drilling cuttings to help identify pro. “They may be doubtful we can get information they want from rock samples so small. fracturable rock to help opera. are used to spot trends gas. There is kerogen (green) making up 22% of the volume. and do more testing. companies “The trend is doing it quickly and designed to fit into the industry’s need to commonly would “optimize” a drilling doing it in a repeatable fashion on a com- sharply increase the productivity of wells program by doing a few heavily moni. Ingrain has developed a machine learning algorithm capable of recognizing patterns along the wellbore and identifying which spots could offer a view of the big picture. pletion designs based on field-scale data. To select 10 to 20 representative samples. The and relationships in the rock properties permeability is from 0. at the core level. is guided by the realization that produc. The testing pensively on every well drilled. tion performance varies widely from well a system to scale up that process to deliver ductive. The pricing and turnaround time is Before the oil price crash. which can highlight if sections can be effectively broken using hydraulic pressure.9 microdarcy.” he said. and estimate the reservoir volume.6%. The cutting testing program uses min- eral and elemental tests to measure brit- tleness. and from stage to stage due to results in time to be used to adjust com- tors design better completions. 1 µm The data from these high-resolution scanning electron microscope imag- es.

This makes it possible to land any PDC drill-bit on hard rock without risk of impact damage. This prevents the onset of damaging vibrations when the Contact us: cutters are lowered to fast on to hard rock or when the bit bites too deep in to a new formation layer. The 2016 generation Anti Stick-Slip Tool (AST) uses a new counterforce solution for balancing the load on the PDC cutters in both axial and angular directions. An operator in South-Eastern Europe recently drilled a deep 6. Aberdeen: +44 1224 561313 Houston: +1 713 557-7542 Stavanger: +47 51 95 11 70 Rio de Janeiro: +21 3497-5083 www. Back on surface.no . HARD ROCK NEWS The better protection of the PDC cutters in the first contact 3D & LAYOUT: RENDER. the bit was graded 1-3-WT.0 inch section in one bit-run with excellent ROP. A similar result was obtained by a major operator drilling on the UK shelf where the planned turbine and impregnated bit The counterforce upgrade enables the new XC-AST to was replaced by a conventional PDC bit and the AST solution.tomax. continuously balance the loading on the cutters.NO NEW XC-AST with the bottom of the hole has already delivered impressive results. The bit drilled for 235 hours to a local TVD record of 5350m (17500’).

the pressure of the flow son said “we are confident it will work in some good information. shut-in interference tests. The service. normally on a multiwell pad and then get of fractures. a princi- pany to market the method. includ- son. Mapping Fracturing With Pressure Change Stephen Rassenfoss. evaluate Statoil wells in the Bakken. length. Dawson said.” said Schmidt. mation. The extremely limited flow in the for. investment manager at data from at least two wells are required. he said they hope to be able to gather and ing tracers. in three US unconventional plays. who also helped create the method. which has been using a method it developed to track the impact of hydraulic fracturing using wellhead geometry with minimal cost incurred. but if “you are are trapped in a dense. said Wesley Zurovec. said of pressure changes during fracturing— “It really turned out to be not very dif- Matt Dawson. Within a year against 11 other diagnostics. and more is better—Dawson said it is ations.000. which created a com. gas research and technology group.” who was then doing completions. JPT 38 JPT • MAY 2016 . and electromagnetic imaging. ensures that the measurements are of “the pressure pro- When Statoil researchers asked engi- neers in the field if they could try the test during fracturing in the Bakken. called Reveal possible to measure the largest fracture’s pal engineer in Statoil’s shale oil and Energy Services. there Statoil developed the method. a completions engi- Photo courtesy of Statoil.” he said. Adding what has been learned about fracturing using pressure analysis to other observations led to changes in fracturing methods. 12-month period. and Marcellus shales. them from the fractures growing from the well to be stimulated. he said. and has file in the stimulated fracture. It is now marketing the test to others. JPT Emerging Technology Senior Editor A service using pressure data from a few nearby unconventional wells to map fracturing will soon be for sale. More than one-third of the company’s Fracture analysis based on pressure The signals—a poroelastic pressure wells in the Bakken were tested over a readings has been compared by Statoil response—can be 10–100 psi. ficult to accommodate into normal oper- Statoil Ventures. The The approach assumes that in forma. fiber optics. and the fact the monitoring wells to be used by crews as they are fractur. The method developed to track fluid method requires setting plugs at certain tions where most of the hydrocarbons flows through fractures has been used to times while fracturing. A strong fracture hit into an adjoining well means data from that stage cannot be used. Eagle zipper fracturing a well. Reveal is currently running a field test are pressurized with water to protect ing the well. It will not work in a conventional reservoir or in unconventional ones with extensive natural openings for fluid flow. such as the Barnett. height. from a shift in the sand size mix to better prop smaller openings to earlier deployment of diverter to more effectively limit growth of the largest fractures. in nearby wells.000 to USD 90. Fracture mapping “is another tool to help us better understand our fracture This rig is drilling in the Eagle Ford for Statoil. said Daw. which has been used by several customers already. for an operator comparing its results with microseismic imaging.” pressure data at several nearby wells. and angle. The method requires a pressure re- sponse from a limited number of frac- tures. he said. you can fit this in meable matrix with a limited number Ford. were questions about how much it could used it to improve how it completes wells With multiple surface measurements complicate fracturing.” said Darren Schmidt. and Daw. nearly imper. interpret the data quickly enough for it and production rate transient analysis. through those pathways can be measured those three. will likely be priced at the high end of the range from USD 10. neer for Statoil in the Eagle Ford.

averse industry that is very measured others has slowed as drilling and com. depends on quickly lowering their cost es “Strategic Marketing in the Energy utive officer (CEO) of Fountain Quail per barrel enough to survive with oil Industry” to a class of graduate students Water Management.” in its adoption of new technologies and pletion work plummeted in shale fields Rao said. vate or perish for anyone in between. “Rather than enough to pump profitable barrels if oil can better understand what is going on developing an infinite force to move this edges toward USD 50/bbl. drawing on his experi- sion at the recent IHS CERAWeek con.” oilfield operation afloat. “We are dealing with a very risk- Demand for the water company and “What is happening is.” said George King. a consultant who teach- ard Broderick president and chief exec. solutions. And at Rice University. technology innova- Those with likely answers to that imaging to track water and carbon diox. or spot missed oil reserves.” Rich. Abso.” ing innovations from the service sec- hopeful sign for the future for innova. Add to it. in the ground by using electromagnetic immovable object. which is select group of companies whose busi- operating costs or increase production trying to convince companies that they ness is built on innovation. companies will survive from one day to es to spend. which question “were getting some traction ide flooding. tors have to work on the fringes. the increasing where the cost of adding production can survive. The rich have resourc. frequently employ- doing things differently. Those still on the payroll have power. ference in Houston. going and have potential customers with At the top are the companies with and logging while drilling (LWD). selling for less than USD 50/bbl. horizontal drilling. Rao said opera. Rao divides the market into three tor. distin- board adviser and founder of a company is not at stake. which have Corp.” said Vikram Rao. squeezing suppliers for more discounts. JPT Emerging Technology Senior Editor O il prices are so low that the oil angle Energy Consortium. inno. they will not be able to get there by ence marketing oil and gas innovations. JPT • MAY 2016 39 . Their long-term future Pradeep Anand. are firms that have good reasons to when prices where high. little to spend and a lot to worry about.” executive director of the Research Tri. said during a ses. PRESSURE TEST for E&P Innovation Stephen Rassenfoss. but their survival ogy leaders. “They have 2 years to show they rightfully so.” he said. tors did manage to quickly reduce the industry is having to consider ited because “they can only make that cost of production. sense of urgency. A lot of risk-averse and at the bottom are those in serious good times and bad. petitive advantages in their markets. same way and they are looking for new seemingly immovable object. Sales are lim. adopt new technologies to create com- much as they are now.” said Mark Wilkinson. Anand said. ronment in the 1980s. but not as Faced with similar cost pressures. secure financial futures—the majors Dogged persistence is an essen- “What we see is a lot of consolidations and the strongest of the independents— tial trait for oilfield innovators in and slowdowns now. there was so with some money to spend and a great The comment speaks volumes to much indecision and uncertainty. High on his long list of obstacles: aimed at unconventional producers. It is a point to survivors.” reluctance to change corporate and pro- exceeds the price of oil. “Most operators folks out there who do not know if their financial trouble. guished engineering adviser at Apache called Drill2Frac. which dipped “They cannot keep doing things the cess habits over time and we have a below USD 40/bbl in early April. That is the issue for com. and an equally awful economic envi. who is a drive to reduce costs. subsea completions. focused on dealing with creditors. The industry embraced 3D seismic. a vice The key is to win support from the ful motivation to consider how to reduce president for GroundMetrics. and 3 years to make good. though it is limited by their but few can afford to be new technol- the next.” said Chuck Matula. which offers services panies at the other extreme. basically. not appear to know how to effectively lutely everyone was trying to keep an In the middle are those companies introduce technology. tors who have been struggling to keep groups based on their financial needs. are not adverse to new technologies. no money to spend because they are “Most new technology promoters do “2015 was an absolute blur.

As a result. rapid downturn. Chart courtesy of IHS. Perhaps because it was such a operational budgets. “I do not Weatherford of around 20% each. Halli- Pioneer estimates the value of its inno. One technology consul. in innovation is more urgent.500 Left axis 125 2. and improved estimated ultimate sent the largest number of the more ny tracked which customers were most recoveries. see that new technology is going into All those were well short of the rev- ning.” understandable after waves of layoffs 15%” in R&D budgets. It differen. it is a very real concern: Have we cut so cial reports for 2015 shows a 9. Seto. 40 JPT • MAY 2016 .” said Richard Spears.8% the next 10 years.000 175 Left axis 150 2. and A review of company annual and finan- example of a company that has contin. list of innovative operators was short.4% the efficiency. and reductions at Baker Hughes and Pioneer’s key paths for growth in the uncomfortably for a rebound. the need for investment according to a survey by John Graves. which will foster greater ates. and budget cuts. “For A few oil companies “are much more Oilfield innovation is talked about as if service companies I am seeing double- aggressive about innovation. coming decades.” said Sha-Chelle Man. While working as Halliburton’s chief trative expenses. Pioneer Natural Resources is an “One of the concerns we have heard. burton’s spending on long-term technol- vation program is USD 500 million over vice president of Spears and Associ. who asked not to be named. industry again?” Schlumberger.000 workers laid off in 2015. likely to use new technology. say why.1% drop ued to invest in new technology through much we will not be able to restart the in research and engineering spending at the downturn. reduced general and adminis. increased competitive. said Carolyn said Rustom Mody.500 75 1. ogy development rose in 2015 to 2. it were an endangered species. Big they paid close attention to the top five. said. director of corporate innovation use like it was in cycles past. That is digit reductions—around about minus tiates them. tant. adding that than 250. service company budget cuts have hit four of which were big independents. Both groups significantly increased their outlays until cuts in 2015. ness.000 Oil Price (USD/bbl) Number of Firms 100 1. Rao said the compa. I can’t enue declines that led to deeper cuts in at Pioneer.000 Right axis 50 500 25 0 0 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 Year E&P Firms Oilfield Services Firms Oil Price Oilfield service companies have taken over as the big spenders on research and development in exploration and production after oil companies reduced their role during the 1980s oil bust. up from 2. Shock Treatment research and development (R&D). director of upstream technology prise technology for Baker Hughes. Manning said. which has also invested in a couple of its 2015 revenues. Because the “with low prices. and innovation at IHS. year before. a 29% drop at Hallibur- “Technology innovation is one of Those selling innovation are waiting ton. of startups. Service company layoffs repre- technology officer. and Schlumberger’s rose to 3. chief engineer enter.” a Houston oil industry consultant. Their culture is based on it.

3. such as one that R&D. per barrel of production can still sell for breaking initiative has required that a pass what oil companies were doing.1% of revenues last year.spe. when the large service for most products and services. “We have committed to what oil companies spend. propping the reservoir. deep The company is creating a growing But the structure of technology devel. company whose expertise is in ceramic Service sector R&D spending has On the one hand. in a not willing to spend much money. development program is a competi. even with last year’s dip. global engineering direc- company R&D outlays are nearly double Carbo Ceramics has committed to an tor for Carbo. Inflation-adjusted names in the business. That ground- for service company spending to sur. ceramic grains of proppant it sells. is the threat to margins posed when “Keeping technology development er now than the peak in the early 1980s prices are set by low-cost producers or going in this downturn is not easy. when the lingering slump led as oil companies did in the 1980s. on the other for imaging. and getting. Rao said. big oil with significant downsides for service to the ceramic grains that go beyond companies were the biggest spenders on companies in the long term. Back then. will service com. and even 1980s. with a surge nies must keep up with the biggest it and data-processing algorithms beginning in 2010. For them. from 2. a new pant with a coating that shows up in companies grew through consolidation. a productive technology delivers a controlled release of scale- er by a wide margin. reducing chemical in a reservoir. While lower-cost sand.5% The question this time around is. Terry Palisch. offering which is able to lower the cost electromagnetic images.” SPE COMPETENCY MANAGEMENT TOOL Are you on track? Or way off course? Take control of your professional development. service compa. An hour spent taking our new self-assessment is an investment in your self-assurance—and your future. which moves it R&D spending for a time.org/training/cmt International Human Resources Development Corporation . the slump continues. Now the service sector is the lead. if business where the price of plain prop- in 2014. Where are you? Find out now. pant is set by competition with low-cost Pessimists warn of a repeat of the panies continue cutting R&D spending international manufacturers. which is also innovation program to add value to the this project. deep discounts into the geophysics business. It took until demanding. manufacturing create methods to detect grown sharply since then.” said boom. to many years of R&D spending cuts. cuts in innovation programs now come line of products that add new functions opment has changed. the pressure is there to spend less. Its The transition period resulted in low tive weapon. At a time when buyers are most ambitious project. www. is a prop- the mid-1990s. a premium price. Service commodity markets. R&D spending in the industry is far high. It is tough. Customers are up from where it was early this century.

are partnering with a private equi- ing. In an industry where marketers love to of doing things. and it is seeking to ment. The survey shows that they are profitable fact of life is the challenge fac- interested. Last year. learned from that technical achieve- Data Survey ment and reduce its cost and complexity enough to make it a widely used option. When a program is shut Øvrum. trim the bloated cost of offshore devel.” said Margareth Mody said. projects. “We know • 36% plan significant or moderate investment in big data and what to do. which reduced the average cost things.” as new technology. who previously built just looking to play the game better platforms to the seafloor. “With will have to compete on that cost-of- essential piece of its business strategy. Now she said the ty firm to build an oil and gas software align with the strategy of the com. • 20% considered operations “highly digitalized today” such as US shale operators. predictable it will be possible to extend “It takes years to build it. and the answer elsewhere. and we because technology development re.” “If you are going to be a tech company on R&D innovation that has a more clear said Ryan Lance.” ings using an available technology Statoil’s project included some ambi. committed to developing “subsea facto. company is working to take what was company through multiple acquisitions. nies competing to equip and help man- age them. must tem on the seabed. the personnel. that talent will be quickly hired nology. IHS.” Seto said. Over the • Cost constraints and uncertainty about the cost-saving potential past 10 years. CEO of ConocoPhil- and you do not spend money on technol. West Consulting Partners and sold it to “Research and development spend. and real-time er role in managing projects in a way data.” he said. Everyone But the commitment is seen as an pany in the near term. • 45% see solid or high potential for data and analytics to make the Industrywide there is a lot of room industry more efficient for productivity improvement. which could commercially and psychologically com- lead to enormous costs if not dealt with. The largest service company uses • Condition monitoring for more effective maintenance and that statistic as an argument for a great- inspection programs. fully locate a large gas-compression sys.” CERAWeek.” ogy used in another way. But she said “it can be existing technol. But there is little argument that the key performance measure is the cost per barrel produced. plex relationship between those who • Detecting anomalies during drilling and operation can lead to own and operate wells and the compa- more effective decisions for cost savings. the a shale data consultancy firm called Pac- and cheaper. historical. according to Schlumberg- The certification body identified these opportunities: er.” sets. with a cost-cutting drive to thing we have in the business. the know-how. Øvrum has long been For Christopher Robart this looks like claim they are selling the next game. and drilling for Statoil. we just need to do it cost- analytics in 2016 effectively. a four-fold rise in global are two factors that are limiting spending E&P spending yielded only 15% more produced oil. They offer a path to quick sav- tise you better protect. the low oil price there is a greater focus supply basis and margins will be king. Data Points down. operators are ries” that move processing from offshore Alexander Robart. speaking during a session at IHS ogy.” Rao said. it is “exper. and innovation spending. Ask what is new and hot. He and his brother changing technology. executive vice president tech. adding. is data. a great opportunity. with preventive maintenance that selects and integrates technology based on early warnings from sensor data. push it lower. but have their doubts. company demonstrated it could success. “One goal is to reduce skills mixing technical skills and the of development from USD 70/bbl to downtime and extend the life of equip- ability to create products that profitably USD 41/bbl last year. are learning how to sift through all those quires professionals with hard-to-find opment. ing large segments of the industry now. dictated by industry.to 24-month time frame. he said. “It is a well-supplied world. more productively. 42 JPT • MAY 2016 . with results so solve difficult problems. like compressors. line-of-sight path to benefits within an lips. Statoil has shown what is possible in “We have instrumented about every- Long-term commitments are required 24 months. DNV GL recently asked 900 senior oil and gas professionals about Making what is technically possible a data use now and in the future. he said. • Instant information from fields can provide timely decisions on Others offer interpretations of the underperforming wells and other potential issues. leads to reduced downtime.” 18. you have a gap in your program. The skill “Most people think of innovation the warranties. from another industry and a little used Quick Fixes tious efforts to leapfrog the existing way asset—data stored and ignored.

the LWD tool made by NL Indus. the thinking is that combining single- product companies into an operation Improved Performance of Drilling Tools: Partnered with suppliers able to sell a wider range of products to to improve the design of a directional drilling component to reduce a larger group of customers can create failure rate by 50%. ical role of finding the initial customers where they are working so they quit Like many startups. “The timing couldn’t be better to be a buyer buying low and selling for higher Pioneer Resources’ Drilling Ideas valuations.” an update of what is available.” bought Sperry-Sun. Spears said. what it can do in the field. As he drilling-data-acquisition techniques. very difficult. idea is still a slog. mental (gains) because that is what most and Gas. ‘There was entrepreneurs. when it An invention does not become an inno. said. conversion is very. use. ing a company. time-consuming test. rode. Anand had the crit. Rao joined Halliburton when it and lighter than metal.” JPT JPT • MAY 2016 43 . then part of Dress. there is a limit. Its projects include the following: lists to support later acquisitions. Digital E&P applications sell to a lim- ited group of customers with special. CEO of Airborne. and [Airborne’s pipe] or trust it.” Eric the time and effort needed to prove that “The truth is that most new oilfield van der Meer. It is perfectly timed for valu- ations. he said. During the 1980s.” Rao said.” Robart said. The flood of talented people out of with two joint industry projects to prove “I got thrown out of more offices.’” problems that plague operations. it has proved “almost what they want. that its pipe is capable. which is trying to convince Based on what he expected after a 25-year buyers want. Big leaps tern repeated many times as it acquired tiation has been relatively easy. Lead require a customer willing to commit startups with promising technology. but the upside is limit- ed compared with Silicon Valley. career at Shell. Not what they need. which took time.” to find jobs in which it can demonstrate era. Industry experience is “We find an asset—a flowline to no way I would risk my credibility on a plus. He said. as well as the ability to better track power use for analysis. Veterans in the field know the replace—someone says I do not like it your tool.” “We have no illusions it is easy or sim- ple. This has significant support after the sale. “I knew one guy extremely well. But selling a new it somewhere else. or I would like to see much of what is sold as new is actually stands up to field use. but operators that flowlines made of ther. moplastic composite pipe are stronger exactly as difficult as I thought. with their inability to pursue their idea The downturn in demand is a factor. comes to finding customers. They are impatient Week conference. Analytics for Improved Team and Rig Performance: Partnering with ized functions.” said Robart. it is not That point of his story explains why what it takes to build something that qualified enough. He ups from some of these involuntary and still there is resistance. a software company to provide analytics to compare and understand ing requirements. faster. will not cor- cycle in 2 to 3 years. fit it into their technology comes from four guys leav. asked me to leave. It has worked tries’ Sperry-Sun division. said something new works. and the need for rig performance differences and share improved practices. “lead ini- vation until someone buys it. during a session at the IHS CERA- operation. put it: “There will be no unicorns in oil and gas software. and then it stops.” he work now could create a flood of start. Airborne struggles for one of the big technical leaps of the to start something in their garage. where Real-Time Communications: Piloting and improving real-time investors brag about finding unicorns— communication services required to improve rig communication companies worth USD 1 billion or more. services and real-time analytics. he saw that pat. The initial focus is on companies enabling Rig Power Optimization: Partnered with a rig operator to pilot operators to produce “better. While yielded an efficiency gain of half-a-day per well. and tell others how it can help.” potential benefits are reduced generator stack maintenance and fuel The goal is to build and sell the com. Yet. The and cheaper. An example of that is Airborne Oil The barriers are not a sign of the times. A partnership with a private lab is investigating significant value. “It is all about getting in a position for a pretty significant up. while he worked there. after it proved LWD could shore installations. of innovation and the company has the cash on hand now to support tions that offer cash flow and customer it at a time many others do not. and could reduce the cost of off- er Industries. Its shareholders Startups be a highly profitable business. and scale a power system to offset peak load from generators. pany in 5 years. who wants to start Pioneer stands out because its culture has long emphasized the value with a handful of established opera. “Most service companies sell incre. And include Shell and Chevron.

If there are no feasible alternatives. 44 .1 magnitude trembler.000 ft 10.and gas-producing state in the US. Seismic Shifts Waste Water in Oklahoma Disposal Well Lead to Stricter Regulations Trent Jacobs. production in the Mississippian Lime was estimated to be around 100. no new disposal well permits will be granted in the restricted zone. efforts that failed to slow the rising rate of earthquakes. Last year.000 sq miles—an area twice the size of Qatar. the third- strongest earthquake in Oklahoma history shook homes across the state and was felt hundreds of miles away by residents of three neighboring states. An additional 118 wells have been included in an “area of interest” and face increased reporting and monitoring require- ments. the plan affects approximately 20% of the state’s disposal wells and marks a major change for the fourth- largest oil. and operators must curtail fluid injections into existing wells by 40% of their 2014 average rate.000 B/D. But just days after the 5. that means a reduction of fluid injection of approximately 300.000 B/D. Scientists and regulators in Oklahoma have concluded that the high-volume injections into the subsurface are increasing the pore pressure inside the rock along the faults. spent a year issuing volume reductions and shut-ins at a number of specific disposal sites. Based on last year’s figures. ongoing production declines may accelerate in the Mississippian Lime. The play is a carbonate for- mation. The Oklahoma Corporation Commission. which accounted for a quarter of the state’s overall production. Altogether. Because water disposal is a necessary component of oil and gas operations. For the foreseeable future. reg- ulators abandoned their pinpoint approach and announced a “regional earthquake response plan” that covers approximately ∼7. and unconventional techniques are used to recover oil and gas from it. Recycling or trucking the water outside of the restriction zone are expensive options that few operators can afford right now. Then on 13 February. JPT Senior Technology Writer I ndustry regulators in Oklahoma have rolled out broad new restrictions on more than 600 disposal wells as part of the largest action of its kind taken in response to earthquakes. the state’s industry regulator. which creates a greater risk of the faults slipping. Graphic courtesy of Steven Than/Stanford University. the immediate scarcity of disposal wells may drive up fees at sites operated by third parties. the most sig- nificant play affected by the order. No serious damage or injuries were reported.

according to the Oklaho- ma Geological Survey (OGS). But when the volume of water being injected in Oklahoma soared to new levels. A year Arb later drilling activity peaked and several companies sold off their entire positions at fire-sale prices. this is a safe and standard practice. In addition to high oil prices. low oil Pro and gas prices are likely to mask any immediate impact. instead. But he also noted that production in the area is already on course to decline by 20% or more by the end of this year. so did the rate of earthquakes—now 600 times higher than it was before 2008. doubled down around that time and acquired more core acreage leases. “there are many questions with regard to what threshold oil price might be required for [the Mississippian] Lime to be a profitable play. a process termed r induced seismicity. a better understanding is needed of where disposal wells will have little or no chance of triggering fault slips. m ent ∼16. operators have spent millions of dollars on drilling a vast network of disposal wells. The play is notable for being the leading water producer in the state. the Mississippian Lime was seen as a “perfect appli- Form cation for horizontal drilling.000 ft ase In March. If it fails. Oklahoma City-based SandRidge Energy. eB If that is the case.000 ft) and since it is a carbonate as opposed to a shale. scientists. In most loca- Waste Water Pipelines tions. along with much smaller fractions of drilling and fracturing fluids. Mississippian Lime in Trouble Only 4 years ago.600 ft and 7. a bold prediction that missed the mark by a rs wide margin.” n a tio Initially. Producing Wells As they do around the world. SandRidge would be the largest shale produc- llin sta er to file for bankruptcy protection since the downturn began. the company said it may not survive for much longer.” he said. disposal wells in Oklahoma allow companies to efficiently and cheaply dump billions of bar- rels of waste water a year deep into the ground. The consensus among regulators. researches shale operators for investors and said a number of producing wells are likely to be shut in as a result of the new constraints. te Wa It could take several months for regulators to decide if their k ing Drin current plan has worked. The play’s largest producer and operator of a number of dis- Fault posal wells. Richard Zeits. the Mississippian Lime was hyped up as the next Bakken Shale. founder of Zeits Energy Analytics. To handle all the produced water. There are also those who believe that reductions are not the solution.” according to an OGS report writ- le uck ten in 2012 when activity levels were starting to ramp up. they believed the water handling costs would be offset by lower drilling and com- pletion costs. Many areas of the Mississippian Lime are consid- ered shallow compared with other plays (between 1. then some experts expect to see even tighter rules or an outright moratorium on injec- tions. “Even without regulatory restrictions. Cry Operators competed for large swaths of the play that spans both Oklahoma and Kansas knowing it had higher than nor- mal water cuts. Operators have struggled to make the play a com- L aye mercial success and though the latest restrictions seem to cast cing du more dark clouds over the Mississippian Lime’s future. it is 45 . and many industry experts is that wastewater injec- tions are the root cause of the earthquakes.

the of California. “I am of the Mineral Law Institute at Louisi- And the water cuts were not just high. easier to drill through and requires lower they could always get worse if further chance of incurring minor home dam- horsepower rigs. building codes and guide policy mak. have begun using the issue as a legal duction. Legal Faults Widening ference. impose even stricter rules. for earthquake hazards in the continen. Zeits said the big. presented a tech- er than normal. lines needed to run pumps for lifting regulators may have little choice but to Keith Hall. magnitude <2 2–3 Map by: Sam Limerick 3–4 samlimerick@gmail. a professor and director and disposal. He said that since then. The federal agency. Graphic courtesy of Sam Limerick. Newly completed oil wells would be potentially a lot more severe. not saying this will happen.1 Water Injection Volume Reduction Areas Central Plan Est. limits are put in place. “The one thing I am seeing less sitting on top. its objective. they were often extraor. but if it did. And as bad as things are now. said Oklahomans face a 5% to 12% wedge that may affect future permits. The spike in Oklahoma’s seismic activ. the Oklahoma Corporation Commission has taken its biggest steps yet to mitigate the growing earthquake problem in the state. Arbuckle Disposal Wells 2012–2014 OK Earthquakes 2014–2016. the walls” due to an earthquake induced Mississippian Lime. Wells depleted too quickly and due to out and whether the response plan meets assigned to naturally occurring earth- its remoteness. age “such as fallen plaster or cracks in But the more operators got to know the gest risk facing operators is the uncer.1 magnitude earthquake in February. more regu- pian Lime sometimes quip that it is really ity prompted the US Geological Survey lations.” he said. of is skepticism about whether there is Even if prices rise enough to make the tal US. 3/7/2016 Western Plan Est. play profitable. 2/16/2016 Area of Interest for Study After a 5. whose seis. 46 JPT • MAY 2016 . have been more earthquakes.” he said.” with induced seismicity at last year’s SPE have been known to pump out as much as Hydraulic Fracturing Technology Con- 98% water at a rate of thousands of B/D. and more lawsuits filed by home- a water aquifer with just a little bit of oil to recently issue its first 1-year forecast owners. ana State University. the impact on production and cash flows nical paper on the legal risks associated dinarily high. the less they liked tainty about how the situation will play by injections. companies faced spend. really a problem. It is the same risk level it.com Date: 4/4/2016 5. ers. there Those who have worked the Mississip. the disposal limits will mic risk assessments are used to develop Hall added that environmental groups essentially act as a cap on future oil pro. quakes in the seismically active state ing tens of millions of dollars on power “If there are more big earthquakes.

formation that overlies the crystalline basement rock.” tion volumes have more seismic activity slipping and which ones you couldn’t than areas with higher injection volumes. Walsh is enhanced oil recovery. that it is no longer just about what they ray will have access to five nonoperating ma called the Arbuckle formation. get significant [monetary] damages. and vast Unknown 150 networks of natural fractures. “It’s disposal wells.5 migrating into the basement layer where. It has been described as the ideal formation for disposal. it spreads out for a mile or Using statewide data.” New Modeling Efforts “There is a lot more than just injection He added that through his research it One way to observe the pressure regime in that is needed to cause earthquakes— is becoming increasingly clear that the the Arbuckle would be to use decommis- you might think of it as a perfect geolog. ic storm. vugs. While most of the earthquakes have • Most of the earthquakes are happening within the crystalline basement caused little damage. vidual wells but a combination of many The first person to lead such an effort is date at Stanford University’s department wells that all contribute to pushing sensi. Kyle Murray. Because the formation is not hydrauli. Source: Oklahoma Geological Survey Research Looking for Details The latest research has moved past prov- ing that the earthquakes are induced and is focusing on unanswered questions now analyzing the known faults in Okla. make slip if you tried. Or so 100 4 it was thought. 500 The Arbuckle lies below the hydrocar- bon layers and just above the fault-laden 0 1998 2000 2002 2004 2006 2008 2010 2012 2014 basement rock. 50 cally isolated.” he explained. Behind the Oklahoma Earthquakes especially for those on federal lands.” said Rall Walsh. most of which went into 1500 the Arbuckle. “then you could injections to be transmitted several miles away from a disposal well.” wells to specific seismic activity difficult. Graphic courtesy of Rall Walsh/Stanford University. problem in Oklahoma is not about indi. and EOR 5 barrels per month in millions of Injection rate caves provide plenty of extra real estate for the injected water to reside in. • Earthquake swarms are occurring over approximately 15% of the state And so far. it eagerly vacuums up SWD Earthquake magnitude incredible volumes of water. homeowners report small cracks and too • “High-bulk” permeability sections within the Arbuckle allow pressure from many sleepless nights. “One thing we’ve told the operators is Ridge and Oklahoma regulators. Due to 200 Injection and earthquakes in Oklahoma 6 its low pressure. Walsh published a wide. SWD–saltwater disposal. the are injecting down the well. As part of an agreement between Sand- At the center of that storm is the deep. tive faults past their limits. Mur- est sedimentary rock layer in Oklaho. even • The high density of disposal wells in central and north-central Oklahoma though no particular plaintiff suffered and the geologic characteristics of the Arbuckle make attributing specific that much. Hall said if enough rock that is much deeper than oil and gas operations. sioned disposal wells as monitoring wells. in Oklahoma (data available up to 2014). homa to determine “which are close to down their wells too that matters. Walsh and other research. a PhD candi. 2500 ly circulated study last year that found magnitude 2. been filed in state court against disposal • The majority of produced-water injections are taking place in the Arbuckle well operators in Oklahoma. causing an earthquake. EOR– it slips. researchers have shown a correlation between the more. what all of your neighbors are injecting such as why some areas with lower injec. of geophysics. He plans to install pres- primary target for most of the state’s disposal wells. 2000 2005 2010 2015 in some cases. JPT • MAY 2016 47 .5+ earthquakes that between 1997 and 2013 injection 2000 Cumulative number of volumes doubled to 160 million bbl per month.” he said. And when the pressure on a fault number and rising strength of earthquakes and disposal well injection volumes exceeds the pressure holding it in place. a hydrogeologist at OGS. two class-action lawsuits have where injections of produced water have risen significantly in recent years. we followed the water through Oklahoma. “Much in the way that accountants will 1000 follow the money. 3 ers believe excess fluid pressure is 0 2.

and those Induced Seismicity Potential During partners and emergency funds released with a high induced-seismicity potential. ever be able to document it.” Hydraulic Fracturing Treatments from those wells and reaching basement He recently coauthored an SPE paper and at Injection Disposal Wells: faults—but until someone starts measur. Louisiana State possibly in the basement rock.0-second period and peak ground acceleration Based on results from the 2014 Based on results from this study National Seismic Hazard Model Chance of damage from an earthquake in 2016 <1% 1%–2% 2%–5% 5%–10% 10%–12% The US Geological Survey (USGS) issued a map showing parts of Oklahoma are now considered as seismically hazardous as areas of California where natural earthquakes occur regularly. FracGeo. as well as where it would be cer of the geomechanical modeling firm the volume. outlining how his company’s software What Petroleum Engineers Should ing that pressure in the Arbuckle. mic situation is to take emerging geome. rates experience many earthquakes.” JPT a bad idea. that confirms find safer locations to drill disposal wells Ahmed Ouenes. Chance of damage based on the average of horizontal spectral response acceleration for 1. Murray said his could help explain why some areas with Ahmed Ouenes. chief executive offi. tions alone will not solve the problem. we don’t see earthquakes.” them into two categories: those with low SPE 180461 The Effects of Faults on The project is being funded by industry induced-seismicity potential. FracGeo. believes that injection reduc- “This is the raw data that has been miss. it is very simple.” He is hoping that the transducers chanical modeling technology designed Ouenes said. and such information could help operators predict fault behavior on a regional level. that the location is more important than in the future. 48 JPT • MAY 2016 . “It’s really all about Concerning Induced Seismicity in think that it is pressure propagating away where you inject. we won’t with regional fault networks and put University et al. sure transducers just below the fluid line ultimate goal is to establish a network of high injection volumes observe few earth- inside the wells to take measurements at least 12 monitoring wells. “We think that the Arbuckle “The problem is not about injection” vol. Graphic courtesy of USGS. “When we see these high will identify a “pressure front” moving to predict the effects of hydraulic frac.” he said. For Further Reading ing. quakes and others that have low injection on a second-by-second basis and build Another modeling approach to the seis. “Geomechanically. Water Disposal and Hydraulic by Oklahoma’s governor to address the The difference between the two categories Fracturing by Nick Umholtz and earthquake situation. hydrogeological models with the data. and can identify the existing stresses involved Know by Keith Hall. injection volumes happening in the low through the Arbuckle formation and said turing at the wellbore level and use it to induced-seismicity potential areas. SPE 173383 On Liability Issues disposals are related to seismicity—we umes only he said.

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chairman of the OTC Asia Advisory Committee. chair- as a global provider of exploration and the global economic market.” he said. gave so as to weather any significant systemic inaugural OTC Asia held in Kuala Lum.500 organizations and 60 cultural and geographical diversity foster “Since I came in office. CONFERENCE REVIEW minister said the country was in position to further develop a diverse economy and become a central figure in an industry OTC Asia undergoing volatile change. The prime minister cited his MYR- 67-billion stimulus package in 2009 as a More than 15.” the confer. and the intransi- Industry gence of the Organization of the Petro- leum Exporting Countries in cutting pro- duction to limit supply. He said crude oil prices will like- Highlights ly remain low because of several external factors. The prime minister of Malaysia. Despite this immediate outlook. to buffer our economy ence builds upon the highly successful Mohd Najib bin Tun Abdul Razak. Special Publications Editor nomic liberalization during his 7 years in office. Najib Achievements said the Malaysian economy is in position to withstand the aftereffects of the low- price environment in large part because Stephen Whitfield. chairman of the OTC Asia Oversight Committee. government has been making the nec- in Kuala Lumpur for the Offshore Tech. of his government’s push for greater eco- and Adam Wilson. in which significant driver of economic growth. the prime man of the OTC Asia Advisory Committee 50 JPT • MAY 2016 . the keynote address during the opening shocks from domestic as well as external pur in 2014. the [Malaysian] countries gathered from 21 to 25 March collaboration and innovation. Iran’s re-entry into the oil and gas market. essary steps to have in place important nology Conference (OTC) Asia. Dato’ Sri remains resilient. Najib said the industry must have a realistic perspective on its immediate future. Speaking about Malaysia’s role sources. With the Opening Session measures to ensure that our economy theme “Excellence in Asia. right. representing 2. left. center. including the continuing supply of shale oil in the US. The conference reflects Asia’s position in both the Asian oil and gas industry and Datuk Wan Zulkiflee Wan Ariffin.000 energy professionals production (E&P) technology. ceremony. Malaysian Prime Minister Dato’ Sri Mohd Najib bin Tun Abdul Razak. and Arnis Judzis. officially opens OTC Asia with Datuk Wan Zulkiflee Wan Ariffin. Staff Writer.

in particular. highlight of the conference. Miller said. our ability to be ogy space. But we’re going “opened the floodgates” of innovation be an important part of our portfolio up the curve. in Asia. group CEO approach sustainable growth in the midst defining how we achieve that outcome. and environment officer at Halli. enhanced oil recovery. region have been just as important to the tive if the involved parties are willing industry as any cost savings.” Rice said. seemed to recognize common traits that keep costs down. “They are who they JPT • MAY 2016 51 . vice of low oil prices. going forward. safe.” he said. Miller said it is a mistake to equate this mindset and drive for excellence will increasing project efficiency. “Our best leaders do two things is the important thing. was a great place Two executive plenary sessions were the suit of a better outcome. upstream internation.” Anuar said. industry in Asia in particular and leader. In ever. For the oil and gas industry. in the current commodity environment. ment in the country and the Asian conti. burton. always. That’s why deep water is going to a low-cost labor position. cur. because the sector is more help the region catch up to the tech. were transparency projects. around what collaboration might look who also happen to be bosses. The session. While the three speakers appeared to prolific production output per well. said collaboration is only effec. denced by the suits worn by Rice and established. Datuk Mohd Anuar Taib. on stage ship in general. These “It’s looking at the unit costs of these as examples. John Rice. However. for innovation. Peshawaria compared with the jeans opportunities for owners and operators Anuar pointed to Petronas’ investment and T-shirt worn by Fernandes. nent is lagging behind other parts of the lence in Asia: Leadership Stories. they agreed. president and chief health. and imagery differentiate leaders from bosses. vice president of upstream Malaysia at kar. The panelists also discussed the role the notion of Asia being purely a low- lence. at its heart. titled Off. “Notwithstanding the current slow- down. That bag of development along the technol. of collaboration in the current econ. Asia will continue to drive [the industry]. titled Achieving Excel- Andy Brown. deep water offers the most nological developments seen elsewhere. How. Jeffrey increased manufacturing in Asia with be critical to adapt to the challenges at Miller. to build manufacturing facilities. ers at the session. two titles. like and how it might reduce costs.” and technological development. the ripple effects. were the speak- between Asia and the rest of the world. he said. and he estimated that it will deliver two-thirds of global econom- ic growth over the next 4 years. Malaysia. ty.” he said. they all to deliver innovative technologies and in carbon dioxide sequestration. “I would say. managing partner of Bain and Com- ical path for the industry in a low-price Petronas. “By far.and president and group chief executive officer (CEO) at Petronas. and Rajeev shore Technology and Excellence in Asia. separa. tion. to talk about the distinction between the At the first executive plenary session. research and development efforts in the ness. projects that will deliver the best. giving execu. said many investors see the pany’s Southeast Asia region. The second executive plenary session tives a platform for discussions about the that we’re having better discussions of the conference gathered three leaders. Asia is striving for excel. cost opportunity for owners and opera- rently adapting to a fundamental shift. I think it’s a mixed and honesty. almost of Asia’s economic push is that it has pany. “Dur- ing the 1997–1998 Asian financial crisis. and Governance Centre. Western economies suffered little from The second executive plenary session examined the prevailing traits of leaders. they are no longer immune to Asia’s oscillations. today. omy and whether it is a useful tool in tors. spreading its sphere of influ- ence across the globe. as evi- addition. it needs to define an out. said that Asia is positioned to play a leading role in the global hydrocarbon market. The panelists also discussed Malaysia’s Peshawaria.” and director of Air Asia.” at the lowest cost on the overall cost we are very much being used as a place Zulkiflee said that one side effect curve and not be the marginal cost com. chairman of General Electric.” Brown said. CEO of the Iclif Leadership also touched on possible technology gaps role in the industry and whether develop. continued investment will have differing leadership styles. The al director at Shell.” Brown and Miller disagreed with “On all fronts. said that deepwater world. Brown said Executive Plenary Sessions to change their procedures in the pur. but. traits. purely cost-cutting motives and that hand and to ensure long-term robust. “We have to have “In the region. environment primarily because of their region as a low-cost opportunity. The conti- nent accounts for nearly one-third of the global economy. senior session was moderated by Satish Shan- projects still represent the most econom. the panel discussed the steps needed to come that we can achieve as opposed to Tan Sri Tony Fernandes.

The panel members agreed that the while. we all made leadership is a burning desire to create a dent of Malaysia Petroleum Management money at USD-20 oil. ence.” “In a downturn. At USD 40. through a major reorganization in 2013. “It’s still a party. Panel and Special Sessions USD-40/bbl market will last for the next “So there is suspicion between the team In addition to the plenary session.” Pesha. leadership is not to the industry in the current climate.” USD 100/bbl. Asia love said. managing director at healthy market was a sense of complacen- “The first page of the playbook is it’s a Saipem Asia. You’ve got to be out front president and head of consulting. Fernandes pointed out of consulting and project management cash on hand. it’s still good. “We did all that when oil was tive of the oil and gas industry from the oil and gas “is a long-term business. it’s the people that their views on the industry’s future at the The struggle now is for firms to find suffer the most. Shah Hakim Zain. nas. panel members. vice president with very low debt and a good amount of in the industry. Hess. To me. from a program committee. and selling assets it did not consider core the future. “To me. he pointed out. industry and what it can achieve by get. CEO at cy that led to a trend away from efficien- cycle. “Once in a that your biggest asset is your people. at Wood Mackenzie. president of upstream Malaysia at Petro. the 5 years. state of the oil and gas market. encapsulated that concept of challeng. After an introduc.” True- communicate. “You are only as ting things right. Datuk Mohd Anuar Taib.” Pacific.” invested hundreds of millions of dollars market would recover and at what price Fernandes continued the thought. who wrote the book Too Many sion and six special sessions.” Fernandes said. which is what a lot of it deals with the impact of low prices. Everybody lived better future. The result has that the low oil prices were actually good at Halliburton.” at Petronas and chairperson of this year’s very happily. said Zain. and. senior vice cy.” he said. indus. through empow. current situation was only bad in light of Rajeev. Max Bellotti.” “hope is not a strategy. was in the for- coax people.” Rice said. Rule 2 is Scomi Group.” waria added.” conference also presented 10 panel ses. ing the good times than it does in the dif. really. presented money. senior been that Hess has not had to eliminate for his airline business. production. monds. the sessions provide a holistic view of the and vigilance are necessary during times ering people.” Taib said. Bosses cling to the past.” consulting companies found room for to its portfolio and implementing lean The panel was able to offer a perspec. One problem that appeared with the ficult times. positions or cancel any major projects. said Muhammad Zamri Jusoh. The panel agreed that preparation leadership perspective. vice presi. “I in developing these people. “the industry does need And that should be the last thing that current market volatility will not last. He went on to point out that the they lead and the leader himself. The to be recalibrated.” point. However.” JPT 52 JPT • MAY 2016 . he said. as When asked if he thought the party was a title or a position.” Truelove said. good as the people behind you. “it was almost too easy to make talking to people. vice president of global offshore at Hess. “When oil was USD 100/bbl. “Bosses use their title to es and opportunities. his company does not act differently dur. so we entered the downturn outside because none of them work with. and we had great lives. Leaders use the power of tion that presented the current depressed tunate position of recently having gone their values and their purpose to influ. although the is about turning raw diamonds into dia. Speakers James Taylor. “Leadership challenges and opportunities facing the of a strong market. reminding attendees that processes. and they do what they say you want to cut. he said. took the dis. and Dan Young. “These ses. because you have only question.” That better future is created. ing the higher-price market. In the 1990s. Leaders look to try leaders from service. cautious hope. Zain was the least optimistic of the think too many leaders are not transpar. “Taken together. tinction further. “And panel discussion Oil Price Volatility and the efficiency that was not tended to dur- the message to organizations here is Implications to Industry. was when the they are going to do.” over. Brian Truelove.” Fernandes said. say they are. and people got a little bit lazy. senior vice Not all firms have been as fortunate. saying the current sub- ent and poor communicators. not their position. “That’s Rule 1. Too Few Leaders.” The fifth panel session of the conference “So we try not to focus too much on “Bosses use position power. the USD 100/bbl companies had grown Bosses. people confuse leadership with. sions are designed to be highly relevant accustomed to.” he said. predicting price. panel increasingly found a hopeful tone. the panel said.

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began actively transforming its business in 2008—well Jeff Spath. the upstream explo. often hostile environments can cost as technical director for Management and Information on the SPE Board of Directors. past 10 years. One additional statistic that powerfully which we can improve our own technical In conversations with many chief exec. research. SPE. and was the 2014 Many oil and gas projects have become SPE President. develop. In fact. ing and development costs. field engineer in 1984 and held various global positions of Why start there? Because as the indus- increasing responsibility in reservoir engineering. and biomedical industries— ing. engineering from Texas A&M University and a PhD in reservoir engineering from software. Schlumberger. ration and production (E&P) industry the previous 3 decades. He holds BSc and MSc degrees in petroleum incremental changes in tools. and in an environmentally is devoted to maintaining existing pro. summarizes the situation is that over the and financial performance. customization. is chief executive officer of the newly formed before the downturn. Eighty percent of the global upstream aerospace. Austria. the Reservoir Management Group and president of Data and including shortening time to market and Consulting Services. Texas Oil and Gas Institute. as an SPE Distinguished Lecturer on production enhancement. and producing oil and gas profitably. And duction has increased a mere 15%. Spath was part of the Schlumberger executive boosting the performance of its technol- management team with past positions that included president of ogy R&D organization in several areas. and a steep decline to such factors as labor costs. tional areas of focus. flow throughout the entire E&P value project design. Before assuming the company’s transformation focused on this position. utive officers during my term as presi. they are unconventionals are more complex and much in common with and much to learn completely rethinking the way they expensive in terms of cost per barrel. the most common concern increased more than 400% while pro. ficient to keep our heads above water. We have in this most recent downturn. research and development (R&D) spend to name just a few. which that was before the downturn. financial challenges have become enor- Spath serves on the Deans Advisory Council at the College of Engineering at Texas mous. He joined Schlumberger as a well testing speeding up the rate of innovation. there have been significant cost increas. One of the overarching objectives of is undergoing a transformation. and fine-tuning the newer resources such as pre-salt and laborates with other industries. 54 JPT • MAY 2016 . he has served plex. as shale oil and deep water. Part of the reason for this is an in equipment reliability. altering. primarily within I heard expressed was cost control. and try has matured. It is clear that adopt- dependably. billions of dollars. decreases curement strategies to engineer staffing chain. duction—arresting decline. and the extent with which our industry col- just tweaking. these “sister” industries is one way in leled challenges. as well as the complexity of the world. it of this production increase came from when taken individually or collective- has been a concern for management for relatively expensive new frontiers such ly. materi. ing technologies and processes from responsible manner is facing unparal. and systems are no longer suf- Mining University of Leoben. Mistakes in today’s highly com- A&M University and the University of Utah and is on the Petroleum Engineering Industry Advisory Board at Colorado School of Mines. Much the service provider’s domain. can significantly reduce costs and most of the past decade. equipment. inefficiencies in supply chains The largest oilfield service company in pressure on profitability and free cash and logistics. The first phase of Texas Oil and Gas Institute. I describe several addi- dent of SPE. extended period of underinvestment in or nonuse of appropriate technology. global upstream spend has In this article. Opera. MANAGEMENT Transforming the Upstream Service Industry To Increase Operator Margins Jeff Spath. work. Active in SPE. improve efficiency levels and operating The combination of escalating find. company returns. Our business of finding. based in Houston. ly. both technical and executive management. More important. relatively flat es throughout the upstream industry due global oil production. the aging production base requires my term as SPE president was to increase tors and service providers alike are not more investment to fight decline. University of Texas System From organizational structures to pro. However. Innovation in commodity prices has put significant al costs. and the misuse and development. Spath has published 26 technical papers and holds 14 patents on so capital intensive that evolutionary or the subject of oil and gas production. from industries such as the automotive.

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One technology innovation is being achieved could significantly improve the turn. processes. essarily costly. event of failure—which has such an obvi. throughs in technology design. appropriate maintenance strategies costs—savings now being passed along lished experts outside the industry—take should be developed both to monitor and to operators nationwide. For example. ever. nal sources such as universities. ◗ Through more extensive use of has done—than to try to recreate that software and computer simulation highly specialized knowledge and skill Efficiency modeling to perform rapid from scratch within our industry. from drilling fluid Achieving optimal reliability requires ment. multidisciplinary collabora- Reducing the number of engineering sors for enhanced oil recovery. university. Others were busy. example is the company’s recent tran- in two ways. on the expert and stock its own inventory. potential applications of nanotechnolo. extra backup tools and systems in the trained specialists work out of one or a My new role at the newly formed Uni. Carbonate specialists ed operating environments. It makes tion throughout both design and training iterations required to develop new tech. other or eliminating the need for redundancy— In this model. We need revolutionary new solutions— nanotechnology. real or near-real time during operations. brute-force process of trial and error. such as FedEx internal sources of innovation with exter. To enhance capital. rate with a leading nanotechnology think zation of every tool. The service company would develop and Consider proppant fracturing services. tion of goods and materials. Benefits include greater utili- nology. lower nonproductive time. would engage both the ser. Traditionally. and and settings. gy exist in oil and gas. hence. modification to robotics and nanosen. rather than versity of Texas System Texas Oil and Gas ous impact on everyone’s bottom line. vice provider and operators as early as trict. each essential to innovation. develop. in fact. and service provider. the most “building blocks” that can be shared improve the reliability and performance important of which is people productiv- and reused throughout the R&D of their downhole tools. 25 districts of collaboration is proving increasingly try it in the field. and other criti. and industry experts to facilitate reliability improved only through a long. ran short. No single com. or government today A more optimal design process. standing of those particular challeng. graduate stu. by giving scientists around time and financial performance sition from a highly distributed service and engineers greater flexibility and of complex projects. is being achieved in two ways: of Technology (MIT)—as Schlumberger and higher overall service quality. reliability begins only does this streamline the distribu- trend by combining faculty. the design phase should include the Shifting to the hub-and-spoke model es. much more sense. the operators’ over the past 2 years effectively consol- for complex carbonates was established performance objectives. petrotechnical software. Some locations were slow. would be staffed with its own proppant pany. ity. technical of multiskilled specialists can efficient- there to join forces with local experts complexity should be minimized. catalogs of standard technology If upstream service companies could This can take several forms. for round two. Boosting reliability can. This type introduce a new tool. ticular geographic market. handful of centralized hubs. and techniques. frown. Numerous assess the health of new technologies in in other words. Schlumberger’s goal is to increase organization. ly. with better design up front. the vast majority of industries. Using a modern data-driven approach. reducing the total number of were underutilized. and excess inven- geographically locating service company iterations and minimizing the tendency tory sat untouched. innovations and break. and send it back throughout the lower 48 US states. and deployment. dozens or hundreds of locations. How- has all the expertise it requires. an innovation center tool’s failure patterns. was one of the main motivations and tank such as the Massachusetts Institute nance costs. First. An operator would In the past. demand varied from district to dis- need to leverage one another’s strengths. Final. demia to more efficiently provide solu. been proven for many years by experts in tal research. model to a hub-and-spoke model that has freedom in how they pursue fundamen. for example. Both scenarios proved unnec- close to operators who have deep under. while ly handle proppant fracture operations and speed the development of new tools the quality and sophistication of labora. productivity while lowering inventory of innovation is by partnering with estab. Not Institute is capitalizing on this second As a methodology. 56 JPT • MAY 2016 . shortening time to mar. Today. and expect. but also it dents. experts Another way this can be done is by possible. and targeted acquisitions. How? By reducing and UPS. idated both inventory and intellectual in Saudi Arabia. tions to industry problems. if there were. productivity at least 20% by borrowing Significant acceleration in the rate of cal technologies. oil and gas companies best practices from other industries. centers of innovation close to the types to customize tools for specific end users experts were overworked. We all other hand. a much smaller number from around the world were brought performance out of the box. rig equipment. dedicated. across the US from one of two major hubs. however. Second. say. and supplies of resources they intend to exploit. Another key transformational strate- prototyping gy for reducing both the service pro- ◗ Through developing comprehensive Reliability vider’s and operator’s costs is efficiency. by complementing increase the profitability of both operator logistics and distribution. requires far fewer experts to serve a par- collaboration between industry and aca. tory testing and field qualification rigs This has dramatically improved people Another means of increasing the rate and facilities should be maximized. decreased mainte- ket. to collabo.

this technologies. speed. lumping several dis. giving requiring the cobbling together of mul. in looks good oilfield products and services separate- ly. ration cluster efficiency jumped from less crete” services. centage of truly integrated operations in To control costs and minimize down. Integrated operations have. you are crete offerings from a single supplier for and strategic vision to begin integrating supporting your peers and a lower total price tag. we also long overdue. can be tricky. services. When you “bundled” services. Contribute. we must rethink the talents to the industry. of Volunteers. cantly improve operator margins when www. areas should be a part of an entire ser- As an industry. I have described four Engage. back suits you well. and personnel are stream. operators may solicit tenders for coming the inertia of old. You are also especially when all the product lines and. the industry remains relatively low. perhaps to integrate services in the field. ness. Integration need to integrate technologies and work- Given the increasing scale. In the first on you.spe. In this article. provide the energy that makes time. disci- approach often fails to boost efficiency. ucts. any project than 64% to an average of 82%. enhancing your leadership and in many cases. As a result. for example. in fact. geophys- ical. way to reduce the ultimate cost per bar- rel of oil equivalent is to increase the inte- the integration of geological. Extending technical performance with Innovation game-changing technology Learning from other industries and Reliability adopting new ways of working Optimizing the support platform and Efficiency leveraging scale Aligning technical and commercial Integration interests across the E&P value chain Areas of focus to improve operator margins. But the total per. Learn more and join us at bundled service operations. as in the past. An “integrated” severe downturn. indeed. eight laterals completed this way. petrophysical. individual service provid. been segregated or merely bundled. tiple services quickly becomes unwieldy. Over. services. Historically. operators tender most cal models enabled an operator to space fracture stages geologically—that is. plines. you inefficient. In the new SPE League mit separate pricing for each of their “dis. As a volunteer for SPE. perfo. ferent than they have been in discrete or areas that have the potential to signifi. familiar ways our Society work. To improve operator margins sufficient- lated products and services into truly ly to survive. been around for years. Individual suppliers and service lines zones of similar quality—rather than geometrically. and organizations that have long the future of E&P. and costly. Support. All the prod. not only do we need vice industry transformation. and geomechani- Volunteering gration of various facets of the project.org/volunteer. Bottom Line your professional profile as you The solution lies in transforming iso. However. collaborative skills and expanding ers continue to function independently. It takes a conscious decision join and give back. workflows. to thrive in this showcase your knowledge and integrated operations. complexity of oil and gas projects. one In the Eagle Ford Shale. Image courtesy of Schlumberger. operation is one in which the interactions fundamental ways in which we do busi- among the parts are fundamentally dif. and flows back in the office. The lined and coordinated—across tradi. exercised by the service provider. within the large service companies sub. bottom line is that we can no longer tional domain boundaries—as a cohesive afford business as usual and these four system with a single objective. JPT Share your story: #SPElov JPT • MAY 2016 .

and service companies today. SPE. when it comes to USD 30/bbl greater costs. which remote locations. optimizing the use of RLWI technology to increase well Case by Flavio Gonçalves Reis Vianna Filho. and. qualifications. the industry cannot be high. which will allow us to continue During the first decade of the 2000s. graduated from the University of Stavanger by Jim McNicol. If deep- ing tide that lifted all boats. Aker Solutions. JPT escalating oil and gas prices were the ris. services. but there are limits to costs for deepwater developments are how much this can save. operating in components must cease. the luxury of By simplifying. Archer Oiltools in 1981 and has worked throughout the world for different opera- tors and for several service companies. including a patent for a tubing-conveyed Projects: Development Overview perforating-shot detection system and a deepwater-blowout. recovery in subsea wells. He works for BG in the OTC 25802 Deep Offshore Gas Fields: Karachaganak Petroleum Operating (KPO) development in A New Challenge for the Industry Kazakhstan as the Well Integrity Section head responsible for by E. TECHNOLOGY FOCUS Deepwater Projects Morten Iversen. et al. Second. ever.kz. and infra. reached at ivermi@kpo. Recommended additional reading masked poor project performance. longer come from massive fields. more flexible and could respond to a These issues may be overcome with Industry has recognized that. bred profligacy and complacency. SPE. industry needs to develop If deepwater operations developments and the low price of oil are a more-cost-effective “good enough” a challenging combination for operators are to survive going mind set. acceptable specifications are. Well Integrity Section Head. try to continue investing in technology water developments were not sustain. and. capital-expenditure of facilities and individual costs are possible. will bring us acceptable economic prof- justify this capital and operating cost. the willingness of the deepwater indus- USD 100/bbl. in the current cost environ.org. He has worked on imple. than they are for those onshore. standardizing. company specifications of components SPE/IADC 168048 New Applications of Cementing Valve Technology for Gulf of Mexico Deepwater Operations Morten Iversen. Similarly. the service companies to discuss what deepwater development. tech- able. 58 JPT • MAY 2016 . the costs of some deep. in particular. even at greater number of scenarios. et al. the operator must now work with itability. Lamey. and Considering transportation. Anadarko. BG The high costs surrounding deepwater must cease. where risk must be limits the economic and cost-saving low and safety and preparedness must potentials. this resulted in complex designs. permitting. and tomization of facilities and individual at OnePetro: www. OTC 25896 Developing Megaprojects menting the RLWI technology from its infancy in the late 1980s and later as a global Simultaneously: The Brazilian Presalt subsea adviser for Welltec. which involved more engineering and developments. it is obvious that the operator cannot However. unnecessary customization 25–30% reductions in lead time and structure costs. Gyllenhammar. ment. by M. well integrity for all wells within the KPO development. How. the luxury of unnecessary cus.onepetro. forward. It essential. Iversen serves on the JPT Editorial Committee and can be Petrobras. forward. water operations are to survive going ly bailed out many floundering projects. operators were able to create a commodity industry like the also much higher for deepwater projects justify designing operations that were automotive industry. et al. preventer system for riserless light well intervention (RLWI). operating-expenditure costs are In addition. industrializing deepwater technologies. much higher than they are for onshore company specifications of The resources we are developing no developments. Iversen OTC 25868 Lucius and Hadrian South holds several patents. nology and constant innovation are what oil.

and it must feed information directly significantly more difficult to master string. MPD is terms of what is done with the feedback duce error through discretizing the larg- based upon the most fundamental prin. a rotary head or other an. the pits. managed-pressure drilling real-time automated analysis. with the larger-rig-design philoso- to solving the problems related to determining the size and severity of kicks. Texas. deepwater drilling pres. turn side of the system is the flowline im- Fort Worth. in small-volume-change detection because tive drilling choke that can automatically Fortunately. the next logical step urations of the MPD system may vary. prepared for the 2014 SPE Drilling Conference and Exhibition. Yet. world. At least difficult fields. However. but risky detecting large volume changes but suffers nular sealing device is coupled with an ac. Scott Petrie. 4–6 March. Sealing the wellbore has also led to the use in such a way as to refine and automate ex- detection system suitable for floating of meters that can measure multiphase isting drilling-data measurements and en- mobile offshore drilling units. even with the surge in offers many benefits. whereas a closed-loop sys. Managed vantageous. written by JPT Technology Editor Chris Carpenter. of precision errors. well and the processing equipment is ad- Christian Leuchtenberg. in the current format is the key. wellbore effects. robust kick. ciples of drilling. the complete paper is free to SPE members at www. This may be done in on a vessel subject to wave motion mostly incompressible. which to build. figuration. Ultimately. it has been the case minimizes influx and stabilizes the well. Additionally.spe.” by Austin Johnson. such a way as to be evolutionary and natu- and currents. and all bore. in many cases. tem allows a higher level of automation. wellbore hance proven practice with the addition of and fluid characteristics are determined accurate flow measurement. historically that the well. from the closed-well system. balancing the equivalent cate this matter. system provides a firm foundation upon tion. Deepwater Kick Detection (DKD) Besides adding smart meters to conven- engineering achievement and a model Closing the system with an annular seal tional pressure/volume/temperature (PVT) of efficiency. USA. and David Cunningham. Specifically referring to the mud- circulating density to formation pressure ents challenges to kick detection to which processing system. has proved to be ters and the volume occupied by the drill. Enhanced Kick Detection by analyzing trends and catching samples In the effort to modernize the mud- The complete paper provides a discussion after the fact.Advancing Deepwater Kick Detection N umerous developments in automation have made the modern mobile offshore drilling unit a marvel of When bottomhole pressure (BHP) is lower than formation pressure. the DKD system must account advancements. The MPD system aims to drill a well ject. flow accurately. er system into more-manageable pieces. To compli. the mud-processing equipment. DKD should be achieved creating an advanced early kick. To accom. and can be comparatively elementary for is a function of the casing and bit diame. JPT • MAY 2016 59 . But there still exists a void in strumentation involved. These solutions have undoubtedly re. which creates a fixed. the conventional PVT of conventional approaches to kick detec. known well volume that for vessel movement. “Advancing Deepwater Kick Detection. is to separate information coming from primary feedback mechanism for the MPD able and. In accom- plishing the aim of decoupling the well from the mud-processing plant. processing system. and action. In order to detect a small- (MPD) has surfaced as a natural response able data on the basis of which engineers volume influx or loss. This approach is reliable when plish this goal. it may be This article. often displaying high productiv. the pressure up. contains highlights seen that defining boundaries between the of paper SPE 167990. error by increasing accuracy of the in- established somewhat naturally from the ger an alarm. challenges. two approaches exist: One may reduce hanced kick-detection system has been duced the amount of time required to trig. phy. A suitable boundary on the re- Pressure Operations. the downstream sector of the industry. The paper has not been peer reviewed. This paper describes stream of the choke and the flow rate ral. kick detection. reduction of error to drilling in unconventional or otherwise can quickly make decisions. mediately downstream of the diverter. influx of forma- tion fluid occurs. as opposed to revolutionary and inco- experiences. With fluid in the wellbore being to the MPD system. and one may re- imposed needs of MPD systems. Conventionally. and the need for an en. ters. The closed system systems.org/jpt. already used in the well from information coming from system in all cases is the return flow rate. deepwater formations processing equipment are grouped togeth- within a margin of the balanced pressure tend to be some of the most prolific in the er when drilling with a closed-loop con- of the formations being drilled. the many components that are already avail. and approaches through the return line become valuable in herent. from a drilling perspective. fixed offshore installations are not sub. ity—desirable for production. The For a limited time. In the process of dis- adjust the casing pressure. detection system can be constructed from cretizing the system. an advanced. changes in rheology and drilling parame- a fixed drilling unit. Though config.

Over long risks and delivers value to the drilling these boundaries. ings are unusable because of the resolu. the chance to become large. riser-heave displacement and a volumetric Operational Improvement 100 correction factor applied. distances and large pressure changes. Accurate measurement of blowout was that simultaneous opera. data-processing system. simple comparison may be performed manageable problems before these have ric accounting. With the known dimen. sions and displacement of the slip joint. Inc os ts 50 sk gC Global positioning offers one solution. as to how such data are incorporated. flow and pressure is vital. considerable volumes of formation fluid surement at the mud pits allows for some tion required. while-drilling tools do make this possible. . ris. It is known proach to sufficiently meet the challenges comparing the number of pump strokes that wave motion has a noticeable effect posed by drilling in deep water. less work is required large. the DKD system may anticipate nonsteady-state conditions 90 RGH Riser Gas Handling and send alarms when anomalies occur. On one hand. be implemented. knowledge of the the change becomes smaller. as the distance shortens and problems. When considering kick man- may be spotted. and time consuming to run. With a known influx. By de- ing operations. accelerometers have Handling Lo 30 Drilling and not yet proved reliable when compared Tripping 20 with the laser range finder. process is as important as precision Concerning floating rigs specifically. unwieldy is not the only lens through which a kick However. Pressure. a mass-flow accounting approach should Risers pose unique challenges and pressure diverter or rotating control de. Spaced along a real-time calculation of riser volume as may be reduced if the source problem. a direct count for fluid and wellbore effects. but it is also Conclusions tions interfered with the crew’s ability to vital to have an understanding of what the A DKD system will require a holistic ap- recognize the influx. heavy. Diaphragm-type pressure may enter the well before a problem is confidence in the type and quality of mud transducers are favorable over a shorter suspected. In the case of a high. a operation by alerting the crew to small. considerations PD should be made to account for any pos- 1 2 3 4 5 6 7 8 sible lag caused by using a hose. the The type and the spacing of the pressure An automated DKD system mitigates next step is to understand the flux across transducers are important. resulting in specification pressure-control equipment casing strings cannot offer. if not more so. In cases where RGH the return flow is routed through a hose 10 +DKD MPD Drilling (as opposed to the riser). a realized through a reduction in total circu- ers allow for instruments to be present slip-joint correction factor may be applied lating time. vice installed above the slip joint. It is not uncommon to see kicks of It is important to note that improve. On the other hand. A considerable amount of being pumped downhole. tems detect influx on the basis of volumet. check. to identify the influx. But volumetric flow rate between two independent transducers. In field trials. and weight on bit can affect BHP. the need for high- in the annulus—a luxury that traditional to the known displacement. 50 to 100 bbl or more in deepwater envi- ments in the accuracy of instrumentation but careful consideration should be given ronments. 1—Reducing kick volume increases operational efficiency. as well as modeling to ac- unique opportunities for offshore drill. PD Predictve Driller With the onset of pumped riser systems 80 Conventional Kick Volume (bbl) and the possibility of riserless systems. Hardware and distance. to reduce the amount of corrective work tion. is mitigated. Here. heave through use of a laser range finder to resolve the event. gas the length of the riser. tion of BHP would be desirable. As far as downhole pressure fluid may further be invited into the well controls improvements to the PVT system readings are concerned. the read. rate of penetration. as the fluid is returning to the surface. risers are measurement can be made of the riser tecting kicks earlier. multiple pressure a function of wave motion. an 70 ty alternative form of riser-heave measure- afe e dS ment must be achieved in the event that 60 as re the telescopic slip joint is not installed. JPT 60 JPT • MAY 2016 . Direct mea. results in significant time savings. Reduced kick volume and they do not often protect against or similar device. agement through conventional means. Time To Recover After Kick (days) Drilling parameters such as drillpipe Fig. Conventional PVT sys. A simple calculation flow and pressure should be. rotational speed. r Ri in we Drill while installing accelerometers offers an- 40 Lo Riser Gas er w other. The DKD ideal boundary for defining the inlet to the readings allow for density measurement then must contain a robust control and well would likely be at the topdrive. and accuracy. Ultimately. which is high pressure. root causes identified in the Macondo wave motion. It is evident that the best way alone will not provide the full DKD solu. One of the account must be given for the effect of This concept is illustrated in Fig. while performing a conventional flow will serve to enhance the base further. 1. In addition with the tank level could have been used on riser volume because of the use of a to traditional volumetric flow accounting. an incorpora. telescopic slip joint. With boundaries and volume set. mass-flow rate is beneficial. an is to reduce the magnitude of the event.

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and re.” by Geneviève Mouillerat. Total.000 B/D of (Fig. operating in parallel. in Nigeria (Usan) but not in Angola. CLOV Project: Overview T his paper describes the CLOV deepwater megaproject in Block 17 offshore Angola. equipped with compression capacity of Lirio-1 well was drilled. storage. The first conceptual studies for these tank system and continuous settling for The four fields have recoverable re. single processing train for commingled off the coast of Angola and is west/north. Sonangol. revealed more light oil. Copyright 2015 Offshore Technology Conference. the last of the oil. contains highlights process. Seawater supplements produced water. operating in parallel.4 bil. 4–7 May. The question remained production and providing 319. the topside is ered in the summer of 1998 when the A year later. and a “no flaring” policy. but the with an extensive subsea infrastructure Introduction Orquidea-1 well. with the degassed well stream refilling ing production. written by JPT Technology Editor Chris Carpenter. with water quality Miocene crude. Produced water (122. Cravo-1 confirmed bbl of both light and heavier oil plus further light-oil reserves before the first Concept associated gas in quantity sufficient appearance of the heavier Miocene oil at The development scheme for the CLOV to require an export solution to shore Orquidea-1. which The FPSO is 305×61 m with a stor- gola is the fourth in a series of deepwater would provide an additional challenge at age capacity of 1. 1). including inno- The CLOV megaproject of USD 8. culty in defining well objectives. of handling 229.onepetro. accumulations were carried out in spring oil/water separation. The oil is then desalted in two Exploration Development (FPSO) vessel. secured to the seabed with a spreading gives the megaproject its name—Cravo.5 million/d. lion (to first oil) in Block 17 offshore An. The processing system uses a wash- 3 months later. which in. and a cen. The paper has not been peer reviewed.000 B/D of total liquids Girassol. constitute a standalone hub with a float.78 million bbl and is developments.org. trav- els through a multistage purification This article. further revealed the complicated nature organization had established on its three natural-gas (LNG) project. and offloading the tanks. “CLOV Project: Overview. with the onboard lifting pumps capable The complete paper is available for purchase at OnePetro: www. Violeta-1 earlier Angolan projects—a large FPSO added to the Miocene reserves. topside design. but with a few differences. The oil-bearing reservoirs in the northeast compartment of the structure were confirmed by the Lirio-2 appraisal cluded data from two more appraisal wells (Orquidea-2 and Violeta-2).000  B/D of annual average oil ranging in depth from 1100 to 1400 m earlier estimate. and Pazflor in waters ceed the 245 million bbl given by an and 160. which can be used for injection purposes. development scenario for the complex. and cyclones. There is a Lirio. This major gas cap. rizon and 15 to 20° downdip of the main vative oil processing and power systems. a later tieback. After the Lirio-2 appraisal system uses two large below-deck wash of recoverable reserves) and lower. tanks. mooring system of 16 lines. Reproduced by permission. drilled into a deeper ho. The cluster of fields that the well-design stage as a result of diffi. cant Oligocene accumulation with a large studies of the Miocene finds. well (drilled later that year) increased re. of the reservoirs at the location. 62 JPT • MAY 2016 . vised reservoir models indicated that Oligocene and Miocene crudes. after which two desand- Houston. The presence of serves. ing cyclones remove particles to 10 µm. finding a signifi. 1400 m and aims to recover 505 million The following year. CLOV came on stream on 12 June whether the reserves warranted a water for injection purposes. The good-quality light Oligocene crude (75% tral facility. Orquidea. which also further delineated the cept that incorporated the Oligocene and oil and gas accumulations in waters up to size and extent of the gas cap. Additional exploration wells complex closely followed the path that the for inclusion in the Angola liquefied. Treatment through two hydro- of paper OTC 25789. The oil is a mixture of architecture. it was decided to choose a development con- development encompasses four separate well. following additional in. removes Francisca Silva. Miocene accumulations. tegrated geological and geophysical 6. prepared for the 2015 Offshore Technology Conference. a concept the op- serves expected to be produced over a 2005 to give some definition to subsea erator had used previously on a project 20-year period. Dalia. with the Miocene finds as settling tanks. capable west from the earlier developments at the reserves for Cravo-Lirio would ex. preproject studies were launched continuously siphoned from below and the latter has had a material effect on the on the assumption that Cravo-Lirio would oil flowing over a weir and pumped away. and Violeta—is 140 km Subsurface work continued.000 B/D). reservoir. With a high gas/oil ratio The complex of fields was first discov. 2014 and reached its production plateau standalone development.

First. that handles the flow of data between the target for the operator. the other Block 17 developments. primarily at one production. when Girassol was being devel- As with all of the Block 17 reservoirs. and a mul. As with the geology of Two features of the subsea-production. A particular ployed on a Nigerian project. woo Shipbuilding and Marine Engineer- variable-frequency drives.400. the project. and environmen- erators rated to produce 28 MW each. water structures took place in Angola ing (DSME) in its work executing half compared with earlier projects. At the turn of the zontal wells. jumper. Violeta Lirio Perpetua Anturio Africa Orquidea Cravo Gulf of Hortensia Guinea Indian Ocean Tulipa Rosa Zinia Block 17 Dalia Jasmin Acacia Girassol Atlantic Ocean Camelia Atlantic Ocean Fig.500 days: 34 wells to be drilled by two is not dissimilar to those that the opera. fields have both low reservoir pressure ducers and two injectors have selective. These tion facilities. rican projects. Each of the eight manifolds for the FPSO—it was the overall quan- drilled initially to calibrate vertical un. The subsea umbilical. standing health. South Korea and has already received two drillships: West Gemini and Ensco DS-1. the Oli. This power-system design. 10 million man-hours of Fourteen production wells and 13 of the flow boosting for the heavier Miocene oil work was performed in Angolan fabrica- water injectors have standalone sand produced at Orquidea and Violeta. they had drilled and installed rated vertical tree weighing 39 t). is equipped with a subsea router module tity of work done in country that was the certainties and plan the remaining hori. and at least one module pilot well and the two deviated wells were trol system. safety. The other oped.000 B/D) to tiphase flowmeter installed on the well as CLOV is based on discussing technolo- be reached on 30 September 2014. pipe- ing of the structure of the reservoir. control station on the FPSO. of all the man-hours performed by con- Well System cant part of the operator’s commitment tractors on the project. drives an ones. tent of the project compared with earlier aided by its contractors. JPT JPT • MAY 2016 63 . it is necessary to make mention of the The vast majority of the wells (32) are folds. four-slot manifolds at drive to maximize the amount of work of a horizontal design with a maximum Cravo and Lirio and four 10-in. initially de. performed in Angola.000 B/D. in-pipe stalks. Each the completions in 14 wells (11 produc. of providing up to 1. which required either sand plication of a multiphase pumping system fabrication yard. completions. riser. a new well-trained local workforce into being deviated. DSME performed One of the major enterprises on this to an increase in local activity. system concept for the CLOV complex set While five local fabrication yards were gocene reservoirs are highly faulted and it apart from the operator’s other west Af. fiber-optics commu.000-psi. an insert choke valve. subsea production wells and the master century. four-slot to be done in the nation and to bring length of 1800 m. with a membrane system is followed The subsea production system of 34 wells by deoxygenation. (19 producers and 15 water injectors) is Health and Safety Power generation is developed typical of systems implemented by the The CLOV project team achieved out- through three aeroderivative turbo gen. which al. awards as a result. driven by helicoaxial pumps to provide ment. four 12-in. and a high-viscosity well stream. For the CLOV develop- screens or gravel packs in all of the wells. There are eight production mani. ery was designed to raise the local con. 1 million man-hours of work was there is potential for significant sand differentiating feature of CLOV is the ap. operator in west Africa. A much higher level of assembly of highlight was the achievement by Dae- all-electric machinery concept based on subsea trees and fabrication of under. tal performance on this development. a signifi. tor has deployed in the past (10. tree is equipped with a chemical-injection Angola and the Future ers and three water injectors). and flow- is coarse filtered then ultrafiltered to line system installed at the CLOV com- remove fine particles. valve. By first oil. used to fabricate a variety of project thin. its 17 million man-hours without a sin- project is the drilling program of almost The subsea-tree system on this project gle lost-time injury at the Okpo yard in 2. gy. It or intelligent. but its deliv. While the description of any project such lowed the design peak (168. a nication was adopted for the subsea con. In order to ensure a full understand. 1—Block 17. screens. structures—including manifolds. with the other two manifolds on Orquidea and Violeta. however. Sulfate removal Subsea Production System plex is described in the complete paper. while the remaining five pro.

The field-proven thickest wall to date load from the static tension in the flood- for conventionally welded X65 single. In this paper. all of the American Petroleum Institute 5  ksi. For ultradeep water. Houston. and 12-in. The paper has not been peer reviewed. and occur feasibility of a number of production.-outer-diameter (OD) pipe and Thethi. B. shore fatigue-sensitive riser systems is longitudinal-load design criterion be- fluid properties. For ultradeep water. limit. the wall thickness and hence extends the water- signed to resist only the burst and col. The longitudinal-load meet the 0.9-in. The allowable The maximum wall thicknesses required extending riser technology beyond its bending strains of all the production ris. Riser-System Design in Water Depths Greater Than 3000 m T he offshore industry anticipates the need for production-riser systems in ultradeepwater fields. riser (SCR) wall-thickness sizing is ini. ing is initially carried out considering (API) RP 1111 criteria. sidering both X65 and X70 steel grades. in some nal pressure is also checked with the cal. produc- and combined-load design checks are considering the combined bending and tion risers considering a 5. assumed to be 1. SCR wall-thickness siz. and outer diameters.5% in the pipe. Steel-catenary. written by JPT Technology Editor Chris Carpenter. For thicknesses of the export risers are in- creased to maintain the allowable bend- ing strain of 0. contains highlights of es. X70-grade pipe also re- are driven by burst owing to the 15-ksi quired for collapse is higher than the siz.. Therefore. of the export risers are shown in Fig.org. prepared for the 2015 Offshore Technology Conference.51.000-psi de- performed after the sizing is performed external-pressure criterion. Buckling of the combined bending and external- to many challenges with respect to the caused by combined bending and exter. The wall sign pressure are 3617. The maximum water depth for the paper OTC 25840. 1. The maximum wall thicknesses re. The wall thickness of the ex. sure. isting tests. pipes are the burst and collapse pressures. Water-depth limi- tion riser is primarily driven by collapse X65 line pipe with a design pressure of tations of each riser are determined con- because of external hydrostatic pres. The wall thicknesses selection of the riser concept. an optimum water depth is calculated for tially carried out when considering each SCR configuration while meeting X65 line pipe. 20-.95. 3495.32 in. and 24-in. comes the limiting requirement. and riser-strength assess. and 3422 m. X65-grade pipe. a design pressure of 15 ksi exceeds the After wall-thickness sizing is carried out. 1. Toleman. X70 8-in. ed condition at the top of the riser in Riser-Wall-Thickness Sizing pipe wet-tree production-riser systems water depths of at least 3750 m.9 in. the wall thickness of the export risers paper considers a field located in the ers meet both the longitudinal-load and is driven primarily by buckling because central Gulf of Mexico (GOM)] leads combined-load design criteria. When considering the longitudinal ultradeepwater applications. and R. pipe. respectively. tension capacity.85.000-psi design pressure. the assumed maximum bending strain at a water depth of 4500 m. respectively. for collapse and burst. the and associated pipe sizes. the maximum fective tension exceeds the 60%-of-yield methodology. higher water depths can be achieved with X70 Copyright 2015 Offshore Technology Conference. on the basis of ex. instances. port riser is first calculated to resist X70-grade pipes result in thinner wall quired for 8-. Saglar. However. “Frontier Deepwater Developments: The Impact on Riser-System production risers is 3. 2H Offshore. As the riser design pressure increases. pipes are 1.onepetro. It is thicknesses compared with risers with 1. the wall thickness of the produc. sults in a lighter static riser weight at the internal design pressure. 64 JPT • MAY 2016 .” by N. 5. and data (riser functions wall thickness that can be welded for off. Reproduced by permission. for 16-. and 2. with a maximum water depth of The complete paper is available for purchase at OnePetro: www.5% allowable bending strain for the X65 8-. 1. The maximum water depths lapse pressures.903 m considering Design in Water Depths Greater Than 3000 m. production riser with Water-Depth Limitation Production Risers. The development of these fields [this 3000-m water depth. This paper evaluates the ers are determined to be greater than 1. the ef- Please note that riser-design criteria. such applications may require culated wall thicknesses. riser internal. is 1.. the production ris.5%. 5.65 in. and export-riser configurations for of 0. 10-. As with production risers. and determined that the wall thickness re. It should be ing based on burst for all water depths top of the riser because of a thinner wall noted that these wall thicknesses are de.000 psi.55.. ment) are provided in the complete paper.17 in. respectively. pressure criterion. For a design pressure of Export Risers. the longitudinal-load design crite- rion becomes a limiting requirement. and 2. current limits. Only the wall thickness re- quired for a 12-in. and 12-in. the water-depth limit decreas- This article. thickness driven by collapse does not depth limit. 4–7 May. 10-.

X65.40 0.00 0. It should be noted that these water. Riser-wall-thickness sizing performed pressure. 8-in.85-in. 15-ksi design However. 3340 m. IN 46825 • (260) 209-6341 • www. oil-export SCR. 5-ksi THE HOTTEST NAME IN TEMPERATURE SENSORS.67-in. X70 pipe is also used in some ing wall thickness along the top section pressure. we’ve been custom designing and manufacturing temperature sensors for the oil & gas industry.20 Existing Technology Limit=1.17-in. Wall Thickness at Range of Water Depths X65. X80 welded of the riser instead of specifying a single ◗ X65.20 0.00 Well Thickness (in.00 16-in. And with the kind of no-excuses service that keeps our customers coming back. production SCR. For decades. The maximum water depth does the conventionally welded SCR systems. OD Pressure (psi) Pressure (psi) 3000 m 3750 m 4500 m 3000 m 3750 m 4500 m Fig. Pyromation.000 psi) Static Effective Tension/Yield Tension 2.00 0.80 0. when it comes to temperature sensors. offshore is not qualified in the industry following three riser configurations: depth limits are obtained for the riser. 1. OD 24-in.com/oilandgas JPT • MAY 2016 65 .60 1. 10-in. And we can tackle any challenge you send our way. OD 20-in.80 1. 3617-m water depth.60 1. we offer: // A comprehensive product line // Industry certifications (FM. one name is beyond measure.40 0. IECex) // Custom designs to meet your specs // Fast delivery (same-day shipments available) // Sales & engineering expertise Call or visit our website and see why. 5-ksi design SCRs are constructed from conven. 2.80 1. wall thickness. wall thickness. there. At Pyromation. an advantage can be gained by increas.) 0. SCR projects in the GOM.00 2.9 in. yet for sour-service conditions. wall thickness. Cost-effectively.pyromation.40 0.20 0. grade used in the SCR applications is X65. OD 24-in. line pipe has not been used to date for wall thickness along the entire riser. 0. Oil & Gas 5211 Industrial Road • Fort Wayne.20 1. 1—Oil-export-riser wall-thickness-sizing summary: X65 line pipe. ATEX. production SCR.000 psi) (Design Pressure of 5. top angle of 12°. 1. it is not considered in this paper.60 0. A typical steel on the basis of API RP 1111 indicates that ◗ X65. tionally welded line pipe.40 1. fore. 3283-m water depth. ◗ X65. OD 16-in. Quickly. 16-in. CSA. Strength Assessment not change significantly for different Weldability of thick-walled X80 line pipe Strength analysis is carried out for the ODs. Tension Ratio at Range of Water Depths (Design Pressure of 5. OD 20-in.

design pressure. 3000 m because of its lower top tension BMO Centre. an assess. In ad. Conclusions BMO Centre. be- Calgary.-OD export risers lead to Workshop heave motions of the floater. Because of this buoyancy force. would be sufficient to induce significant the top tension of the riser at the vessel dynamic motions in a suspended riser hang-off reduces significantly.000-year-hurricane condition. mixed-mode axial and bending excita- Calgary. The maximum water depths ob- Banff Springs Hotel. JPT JPT • MAY 2016 . This risers in small-period sea states that tend 3–12 May • Complex Well Core is a special SCR with a segment of its to drive long-term fatigue life. a depth. production SCR. The maximum von Mises stress the maximum operating environment.) export mersible with a flexible joint presents a risers with conventionally welded SCRs Upcoming Training Courses: significant challenge to provide accept.to 24-in. Alberta ment is performed with an SLWR. It is determined able strength behavior in water depths that SLWR systems are a feasible op- 5–6 April • Screening and Field Piloting greater than 3000 m. Alberta modules. which makes the are not feasible for a welded-line-pipe Integrity for Thermal Applications riser very slender and susceptible to the solution. 12–14 April • Unconventional Resource Strength Assessment As the water depth increases. 3100-m water As with the SCR strength analysis. On the basis of the dynamic response and Workover Operations ing the 1. they are not feasible for conventional- Thermal Well Integrity & Design On the basis of the dynamic response ly welded SCR applications in ultradeep Symposium of the risers. increase the likelihood of exciting the Calgary. the teria for all load conditions consid- SCRs do not meet API RP 2RD criteria in ered. Because of wall thicknesses greater than 2 in. Alberta this. Canada the addition of bending moments caused On the basis of the analysis results. Calgary submersible at the longer wave periods in The 12-in.-OD production risers con- 9 June • SPE Oilsands Well Pad Life a 1.000-year-hurricane condition. cause of high external collapse pressures es above yield are observed in the touch. does not exceed the yield strength for The SCRs do not meet the allowable a 1. and increase fatigue damage. For the 100-year hurricane compression is observed along the lazy- survival condition. 24-in. it is seen that the SLWR Workshop the stress in the riser exceeds the yield configuration leads to more-viable glob- Met Centre. which isolates static effective tension of the riser. Calgary ment induced by compression loads. Alberta Steel-Lazy-Wave-Riser (SLWR) obtained from the buoyancy modules. only the 8-in. Calgary capacity of the pipe at the touch-down al response in water depths greater than 5 April • SPE/CHOA Slugging it Out point (TDP) because of high bending mo.67 in 10-year-winter-storm operating design pressure in 4500 m of water.org/events/choc/2016 stress caused by operating pressure. Alberta. conditions. production SCR is a rela.000-year hurricane. demonstrating 2016 SPE CANADA EVENTS stress ratios in the 100-year-hurricane the robustness of the SLWR system. wave riser.org/canada ity force. 7–8 June • SPE Canada Heavy Oil touch-down zone because of the high Technical Conference heave motions of the deep-draft semi. and 20–21 September • SPE Caprock 3617-m water depth. 28 November–1 December • SPE down zone of an 8-in. 7–8 June 2016 • Calgary. tion for water depth beyond the reach of for EOR Project Development SCRs because of additional uplift forces Calgary. structed from X65-and X70-grade pipe Cycle Workshop dition. and its ability to control the dynamic The SCRs experience compression in the heave response along the riser. hence. preliminary strength analysis is also car- Preliminary analysis shows that the ried out with an SLWR configuration for SCRs exceed the allowable stress ratio of the 10-in. Calgary tively lightweight riser and extends into wall thicknesses greater than 2 in. the BMO Centre at Stampede Park by vessel dynamic motions and hoop SLWR meets the design-strength cri- www. move into the range of wave energy and and Gas Properties ceptable strength behavior.250 ft is in- pipe-stress use is already taken by the stalled above the TDP. production riser with 15-ksi 0. and very high static axial loads. are less than 3400 m. If a float- Competency length equipped with external buoyancy er has a heave response even with small Calgary. tained by large-OD (16.spe. frequency matching that of the riser. its upward buoyancy force in amplitudes at a mixed-mode excitation water is greater than its downward grav. excessive compression and stress. Dur. Banff SCR attached to a deep-draft semisub. of the risers. with a design pressure of 15 ksi result in BMO Centre. 14–16 March • SPE Thermal Completions tion SCR does not meet the criteria. it is seen that an X65-grade water. This is because 60% of the A buoyancy section of 5. No AND TRAINING COURSES condition. produc. With the porch-heave motions from the TDP.spe. it For more information visit www. the Assessment and Valuation Because of the challenges faced by tradi. an 8-in. Alberta tional SCRs to stretch into water depths tion frequencies of the risers tend to 18–22 April • Evaluation of Canadian Oil greater than 3400 m and to provide ac.

Subsea Production Optimization
in Field BC-10 Offshore Brazil

T he BC-10 asset, located in
deep water offshore Brazil,
produces heavy oil in the range
only three oil-production trains and one
gas separator on the host.
The Ostra field has seen good pressure
support through the first 5 years of op-
eration because of a strong support-
of 16 to 24 °API. Mudline caisson Ostra Field ing aquifer, and it currently produces
separators with electrical submersible Ostra consists of seven produc- 60,000 to 70,000 B/D gross. Gas dis-
pumps (ESPs) are used to process er wells, with production collected posal was performed through an injec-
fluids from multiple wells and by two manifolds and routed through tion well deeper in the Ostra aquifer
boost them to the receiving floating two 8-in. intrafield flowlines to the while gas export was commissioned.
production, storage, and offloading artificial-lift manifold (ALM), which
(FPSO) vessel. There are significant houses four caisson separator MOBOs. Subsea-Processing System
flow-assurance challenges in The operating philosophy is to run three The MOBO system is composed of sev-
operating the asset. In this paper, units out of four, leaving the fourth unit eral major components. The top-end as-
two examples of production as a standby in case of MOBO failure. sembly (TEA) is the structure on the top
optimization for this field will be Because the ALM is not located with of the caisson and contains the inlet-
provided (further examples are permanent vertical access, MOBO inter- and outlet-isolation valves and actua-
available in the complete paper). ventions require the use of a rig capable tors, the subsea control module, and
of pulling the 140-t unit to surface. For injection points for methanol and one
BC-10 this reason, having an installed spare is other chemical. The electrical and hy-
BC-10’s production comes from four critical. The production manifolds allow draulic connections are also made to
fields located in water depths ranging one of two routings per well, which al- the TEA.
from 1650 to 1920 m and is dependent lows a flowline to be aligned to one, The caisson itself is a 32-in.-inner-
on artificial lift. This summary focus- two, or more MOBOs; full bypass of the diameter, 80- to 100-m-long section of
es on optimizations involving the Ostra MOBO; and routing of hot oil for MOBO pipe with a reduced diameter at the base
field. The subsea architecture that en- startup and planned shutdown from the to act as an accelerator for the fluid flow,
abled the development of these separate surface by a dedicated choke. It is also to prevent solids buildup.
reservoirs consists of multiple drill cen- possible to allow the 4.5-in. hot-oil sup- Inside the caisson, suspended on
ters coupled to production manifolds. ply line to be used for production. The 5.5-in. pipe, is the ESP hanger and
Manifolds are routed to caisson ESPs. 8-in. gas line features a common choke 13⅜-in. ESP shroud. The function of
These caisson ESPs will henceforth be on the ALM to control backpressure these components is to force fluid down
referred to as MOBOs (derived from the on the MOBOs and a surface choke at the caisson to the base, cooling the
Portuguese acronym for pump-boosting the FPSO vessel as a second means of motor as it passes. The caisson may
module). To minimize equipment costs, control. In practice, to avoid a well trip be operated in one of two modes: sep-
each field has only two production flow- causing a rapid loss of MOBO pressures arated and nonseparated. In separat-
lines routed to the host: one is for pro- (with corresponding well-rate increas- ed mode, the caisson flow rate is con-
duction, and the second is for hot-oil es), the subsea-gas-line choke is used trolled indirectly by a level controller,
displacement and production. In the only in special circumstances, with daily which aims to maintain a constant level
case of Ostra, a third riser for gas sepa- control being performed by use of the inside the caisson by use of the level de-
rated subsea is also present. This design topside boarding choke, which allows rived from the pressure gauges. With the
reduces the number of risers required. a much larger gas-storage volume and nonseparated caisson, level is no longer
In line with this philosophy, there are hence limits rapid pressure transients. controlled and instead “floats” depend-
ing on the temporary balance of inflow
and outflow. The pressure in the cais-
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
son, however, must be controlled, be-
of paper OTC 26220, “BC-10: Optimizing Subsea Production,” by N.C. Sleight and cause this determines what the wells
N. Oliveira, Shell, prepared for the 2015 Offshore Technology Conference Brasil, Rio will produce.
de Janeiro, 27–29 October. The paper has not been peer reviewed. The TEA is connected to the ALM with
a multibore hub that features bores for
Copyright 2015 Offshore Technology Conference. Reproduced by permission. inlet, gas outlet, and oil outlet. For cais-

The complete paper is available for purchase at OnePetro: www.onepetro.org.

JPT • MAY 2016 67

Manifold

Manifold

Conductor

Caissons Spacer

MOBO

TEA

Caisson

Fig. 1—Schematic of the entire caisson and ALM (top left); the support structure, 42-in. conductors, and the manifold on
top (top right); ALM populated with four MOBOs (bottom right); closeup of the TEA, showing it attached to the 32-in.-
inner-diameter caisson; this forms the MOBO (bottom left).

son control, there are three pressure which the defoamer injection was un- effect”—approximately 15 bar, which,
gauges situated along the length of the able to suppress the formation of foam given that the MOBOs’ boost in the field
caisson. These allow a liquid density in in the lower caisson during transient was approximately 120–140 bar, rep-
the caisson base to be measured and, in operations. At this point, it was noted resented a 10–12% reduction in boost
combination with the top gauge, allow a that the defoamer was not effective, so and, hence, load.
level to be calculated on the basis of this it was taken off line to see whether this The increase in capacity over the
determined density. was causing the foaming. Once the tran- three units was approximately 5,000 B/D
The entire MOBO is retrievable and sient passed through the system, it was gross. Furthermore, the defoamer
is supported on the manifold, which, in noted that the gas at the top of the cais- chemical was the most expensive used
turn, is supported on the conductors; son was still dry (no free liquids) and in BC-10 on a volume basis, so the re-
these also serve to provide a slot inside that the density of the liquid in the cais- quirement to stop continuous injection
which the caisson can sit (Fig. 1). son was lower than before, suggesting it saved approximately USD 4 million on
was holding more gas. an annual basis.
Optimization 1: Embracing On the basis of these observations, it
Foaming Operation was decided to try not injecting defoam- Optimization 2: Nonseparated
Early on in the life of Ostra—the only lo- er on the other caissons to see if they Operation on Ostra
cation of separated MOBOs in BC-10— could operate without liquid carryover With the Ostra MOBOs now operating
the criticality of subsea defoamer in- and with higher gas volume fraction without defoamer, there was still some
jection was identified. Without it, the (GVF). In all cases, the caissons man- unrealized well potential in the field be-
liquid in the caisson became very frothy aged to maintain gas dryness, but there cause the MOBOs were still constrained
and started to carry over and also limit was a decrease in pump performance with respect to power. To increase ca-
the pump because of reduced boost ca- (head) with the increased GVF. pacity, and in light of the experience
pacity. However, at some point, the na- In the field, the additional gas enter- gained operating with higher GVFs on
ture of the foam changed from liquid ing the main oil line through the MOBOs the pump without defoamer, it was de-
in gas (early life) to a gas in liquid. The caused a dramatic reduction in flowline cided to try operating one of the MOBOs
change was observed during an event in backpressure because of the “gas lifting in Ostra nonseparated so as to further

68 JPT • MAY 2016

increase the gas entering the oil riser,
T ED ELS EES
with the expectation that this would N OT D
OU ND ATTE
reduce boost requirements and, again, H N
C
free up some ESP power.
The first step was to select the MOBO DIS TS A CE
T
H
with the lowest gas feed and convert L IG LL A
F A
this to an in-situ GVF for the pump. R
Then, the pressure in all the MOBOs FO
was increased to 85 bara (suction) to
allow power to be freed up. Finally, the
level inside the caisson was increased to
allow a buffer of liquid. The gas-outlet
valve on the MOBO was then closed, and
the control scheme was switched from
level to pressure control. The level in Society of Petroleum Engineers
the caisson slowly started to rise until
it filled the entire caisson; during this
time, inflow and outflow were roughly
Annual Technical
similar and suction pressure remained
at the target of 85 bar. Over successive
Conference and Exhibition
days, the pressure was reduced in the
caisson to stimulate additional well pro-
duction and, as this happened, the level
26–28 September 2016
in the caisson diminished, indicating Dubai World Trade Centre
that, for a given GVF, there is an equi-
librium level at which point enough gas Dubai, UAE
is carried under with the liquid to equal
the amount flowing in from the wells.
As the pressure was reduced, additional
gas broke out of the oil phase, causing
the GVF to increase.
The second MOBO was then also con-
verted to nonseparated mode, and its
suction pressure was adjusted down-
ward to maximize the aligned well ca-
pacity. Finally, the remaining MOBO,
still in separated mode, had its suction
pressure increased until as much en-
ergy from the wells was used as possi-
ble. In effect, this meant that instead of www.spe.org/go/atce2016
throttling the wells over the production
chokes to keep strong wells at a reduced
target and maintain the weak wells on
target through a lower pump-suction
pressure, the boost required for these
stronger wells was much reduced. As be-
fore, the reduced boost requirement led
to a reduction in power required, allow-
ing additional well beanups. In the case
of the remaining separated MOBO, the
pressure increased from 75 to 115  bar,
reducing boost by 40 bar and allowing
an additional 10,000 B/D gross to be
pumped. This, combined with the extra
gas lift from the nonseparated MOBOs,
increased total capacity, allowing 1 mil-
lion bbl of additional oil production
in 2013–14. JPT
See 26–28
September
you in 2016

JPT • MAY 2016

PUC-Rio. Saudi Aramco. between (e. artificial measurement. to narrow better decision making in some of our the field. and intelligence will be working behind the modeling have changed our daily rou- entire production systems). as a result.. Hudson has held technical SPE 176760 Leveraging Intelligent-Field and managerial positions in Europe and North America. static and dynamic and for for entire production systems). An Application in Smart Wells by A. flow-assurance design of deepwater production sys.. et al. Shell Over the last couple of decades.. In the coming years. at These advances are coming at an lower cost.g. to tine such that our decisions are better artificial intelligence will narrow uncertainties. What is clearly cipline boundaries. OTC 26209 Proactive and Reactive He has more than 25 years of experience in multiphase-flow Strategies for Optimal Operational Design: research. He serves on the JPT a Giant Mature Oil Field in the UAE by S.C.D. The option assessments. JPT are finding their way into the typical voir and across solution types and dis- practitioner’s toolbox. tems. While still not from reservoir-management plans). scenes to find model opportune time in that they can support Whether deployed in the office or in inconsistencies.g. is a principal production engineer with Shell. we produce be working behind the our forecasts and option assessments.linkedin. Since joining Shell. automation. solution that was deployed globally to gas plants with a total pro. large-scale model integration. 70 JPT • MAY 2016 . tools based on artificial intel.A. Case Study of degree in chemical engineering from the University of Illinois.org. et al. helping us to have pertained to improvements in our uncertainties. Editorial Committee and can be reached at www. we have While we push model steer our exploration and appraisal pro- seen a steady stream of “intelligent” cesses. papers highlighted in this section provide ligence. duction capacity in excess of 10 Bcf/D. the majority of these advances most-costly decisions (e. improve our forecasts and demonstrating the real costs of deviating ties.g. control. routine. in our production facili. John Hudson. scenes to find model inconsistencies. While we push model integration innovations go from ideas to infancy to integration (e. and to improve informed. Mohaghegh. Al-Wehaibi. in more-challenging environments. emerging now are practical solutions artificial-intelligence applications will Recommended additional reading at OnePetro: www. decision systems. and to improve our productive drilling rates and organizations. SPE. Hudson holds a PhD Reservoir-Management Tool. including Data for Full-Field Pressure-Transient leading a team that developed a model-based cloud computing Analysis by B. and development of model-based real-time operations Abreu. Intelligent Solutions. Principal Production Engineer.onepetro.com/in/hudsonjohnd. and with better recoveries. between static and dynamic and catalog solutions. clear illustrations of how some of this will and automated data/model integration that take the next step into the reser. SPE. He currently provides production-engineering SPE 177829 Smart Proxy: An Innovative support for the development of a next-generation simulator. TECHNOLOGY FOCUS Intelligent Fields Technology John Hudson. be achieved. and. et al. Advances in metering. and in our wells.

Flow-Control Optimization Maximizes
Accuracy of Multiphase-Flow Rate Allocation

T he value added by intelligent wells
(I-wells) derives from real-time
reservoir and production-performance
or zones. A costly production-logging
well intervention is a possible alterna-
tive; it does provide an inflow rate and a
goal, an active multiphase-flow-rate soft-
sensing method has been developed to
design an optimum series of flow tests.
monitoring together with zonal phase-cut profile, but only at a specific The soft sensor obtains the most accu-
downhole flow control. Unfortunately, time without the possibility of deliver- rate estimate of the zonal properties by
downhole sensors that directly ing the current phase cut and production use of the deformed-configuration (DC)
measure the flow rates and phase cuts rate continuously. method to optimize the flow-test con-
required for optimal control of the The alternative is to use (continuous) ditions (the ICV flow area in multizone
well’s producing zones are not typically passive indirect measurements. Such I-wells or the wellhead-choke position
installed. This paper describes an soft-sensing techniques are used widely for multiple conventional wells). To the
“active” monitoring technique that uses in (surface) facilities and process plants authors’ knowledge, this work is the first
a direct search method to optimize the where extensive, complex networks of publication to demonstrate the applica-
sequence of interval-control-valve (ICV) sensors can be implemented relatively bility of the DC optimization method in
positions during a routine multirate test easily. They are now being introduced for well soft-sensing problems.
in an I-well. reservoir and well applications.
A multiphase soft sensor consists Active Multizone Multiphase-
Introduction of (1) an estimation technique, (2) a Flow Rate Soft Sensing
I-well completions include both down- multiphase-flow model, and (3) the mea- The main principle of the active soft
hole flow-control tools and monitor- surements. The multiphase-flow model sensing is similar to that of passive soft-
ing sensors. Reservoir inflow is con- relates the measurements to the parame- sensing, where the optimal zonal prop-
trolled by means of passive devices ters required for the estimation of down- erties required for the estimation of flow
[inflow-control devices (ICDs)], active hole flow rates. The estimation technique rates are calculated through minimiza-
valves (ICVs), and self-adjusting devic- is used to compute these parameters by tion of the mismatch between the mea-
es (autonomous ICDs and autonomous minimization of the mismatch between sured parameters and predicted ones.
ICVs). Reservoir and well-performance measured information and predicted In addition to this optimization level,
properties should be monitored regular- values. Published soft sensors have used active soft sensing performs a second
ly to support flow-control decisions ef- both stochastically and deterministically optimization that designs the optimum
ficiently. Various physical quantities, in- based optimization methods as the esti- ICV settings for a sequence of flow tests
cluding temperature, pressure, flow rate, mation technique. The complete paper to maximize the reliability of these esti-
acoustics, strain, and seismic, are cur- provides a review of recent research and mated zonal properties. Zonal proper-
rently measured by electronic, radioac- developments in this field. ties are the search variables of the for-
tive, and fiber-optic sensors to assist the Soft-sensing techniques are subject- mer optimization problem, while the ICV
multiphase-flow rate allocation in I-wells. ed to multiphase-flow-model errors and settings are the control variables of the
Producing from only a single well or measurement uncertainties. The latter latter optimization problem. A flow test
zone during a test is a common prac- refers to variance of the values attrib- with the specified ICV positions is de-
tice. This delivers a single flow-rate value uted to a measured quantity. For this signed and implemented, and the esti-
measured at a particular time. However, reason, a new approach is required to mated zonal properties are updated with
this approach is inefficient, resulting in overcome the limitation of the passive the new measurements. The work flow
lost production and possible difficulties soft-sensing techniques used to allocate is repeated, and the next flow test is de-
when trying to restart the closed-in wells downhole flow rates. To accomplish this signed with DC optimization if the analy-
sis indicates that a further test is justified
to increase the estimated accuracy of the
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
zonal properties.
of paper SPE 173873, “Flow-Control Optimization To Maximize the Accuracy of
Multiphase-Flow Rate Allocation,” by Reza Malakooti, Khafiz Muradov, and David Integrated Measurements. A wide
Davies, Heriot-Watt University, and Alexander Kuznetsov, Weatherford, prepared range of measurement sources can be po-
for the 2015 SPE Bergen One Day Seminar, Bergen, Norway, 22 April. The paper has tentially incorporated in the active soft-
not been peer reviewed. sensing work flow. It is convenient to

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

JPT • MAY 2016 71

categorize the complexity of the I-well lows a greater spectrum of estimated res- cludes all the measurements of existing
measurements and their analysis into ervoir parameters. For example, annular flow tests; its calculation is provided in
five levels: P/T measurements are combined to cal- the complete paper.
◗ Level 0: Well-production flow rates culate fluid properties such as density,
(oil, water, and gas) and a single formation volume factor, viscosity, and Multirate-Flow-Test Design. The op-
stabilized pressure measured in the compressibility for all the phases that timal sequence of ICV settings in the
upper well completion contribute to the pressure-drop estimate multirate test is found with a gradient-
◗ Level I: Measuring well-production across the ICVs (Level II) and to model free optimization method, the DC tech-
rates and the stabilized zonal- transient PBU (Level IV). nique. Note that the DC method uses
annular pressures All levels result in the calculation of only values of the objective function and
◗ Level II: Level I data plus stabilized the zonal parameters (e.g., reservoir identifies the next flow test so as to try
zonal tubing pressures and annulus pressure, productivity index, water cut, to increase the mismatch in order to ex-
temperatures and in-situ gas mass fraction in the an- plore the search space better. This pro-
◗ Level III: Level II data plus stabilized nulus) used to estimate the multiphase- vides new, authentic information to the
tubing temperatures flow rates. However, the higher levels use estimator and improves the overall esti-
◗ Level IV: Level II data plus transient more-complex flow models that use the mation reliability.
zonal-annular pressures of any data more efficiently, achieving a given The DC techniques are based either
pressure-buildup (PBU) test reliability level for the estimated values on a configuration of simplex, as used in
The first combination of pressure/ with a reduced number of flow tests. the active soft-sensing algorithm, or on a
temperature (P/T) downhole-gauge read- In addition, Level IV data add extra configuration of complex. Deformed sim-
ings and well-production flow-rate mea- value to the active soft-sensing work flow plex optimization requires (n+1) flow
surements is the simplest in terms of the through estimation of the zonal aver- tests to initiate the active soft-sensing
downhole data requirements. The sub- age pressure and skin values as well as work flow in an n-zone I-well. Here, each
sequent, higher levels benefit from an zonal permeability (both vertical and flow test is designed with a fixed combi-
increased understanding of the reser- horizontal), provided that the appropri- nation of ICV settings.
voir and reservoir-fluid properties plus ate flow regimes are identified in the
a richer downhole data set. This allows PBU analysis. Conclusions
more-complex models to be used and al- This paper proposes an active soft-
Estimation of Zonal Properties. A sensing technique in which different
dynamic multiphase-flow model is re- combinations (levels) of surface and
quired to relate the zonal proper- downhole measurements are combined
One Stop for ties (unknown parameters of the soft- with a dynamic multiphase-flow model
sensing problem) to the measurements. to estimate the unknown zonal proper-
Everything JPT The flow model consists of several ana- ties of the rate-allocation problem in a
Get all your online JPT lytical equations for calculation of well commingled-production system. The
content in one place at rates and changes of pressure and tem- active approach of downhole flow-rate
www.spe.org/jpt perature along the wellbore and across monitoring implies the design of the op-
ICVs. For example, timum multirate test by regulating down-
Responsive Design 1. Reservoir inflow-performance- hole control valves or surface wellhead
SPE members can access relationship performance and chokes. The multiphase-flow rate alloca-
the latest issue of JPT well rates (linear equation, Vogel’s tion in a multizone I-well was tested suc-
from any of their devices. correlation) cessfully, but the methodology can be
Optimized for desktop, 2. Pressure [well-testing (pressure- extended easily to multiple convention-
tablet, and phone, JPT is transient analysis) equations, al wells producing into a common field-
easy to read and browse pressure drop across ICVs, flow- production network.
anytime you are online. pipe correlation] The methodology was applied success-
3. Temperature (heat flows between fully to multizone I-wells in oil and gas
formation, annulus, and tubing; reservoirs. The required zonal properties
Joule-Thomson effects; mixing were estimated satisfactorily. As a result,
Offline Access temperature of formation, tubing, the zonal multiphase-flow rates would be
and annular fluids) calculated. The examples in the complete
Download PDF versions paper indicated the use of different data
of 180+ issues dating Matching of Measurements and Es- sets, including annulus transient pres-
back to 1997 for reading timations. Here, zonal properties de- sure and stabilized well rate and annular/
online or when an fine the estimated variables, while the tubing temperature and pressure. Also,
Internet connection is total mismatch between the measure- the results were promising even when
not available. ments and predictions forms the objec- the measurements were contaminated
tive function. The total mismatch in- with errors. JPT

72 JPT • MAY 2016

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The well data consisted of production field of deep learning and by the use of tation in each layer from the represen. Peltarion Energy. and yet data and in the process discovering and highly skilled teams of geologists and ex. Rather than trying to predict sible to achieve a good hydrocarbon-in. The user then. The paper has not been peer reviewed. into three different sets—training. made on the basis of geological data. back to the original format. gives only a very crude bons in place. an educated guess about the hydrocar. bulk density. the resulting one oil/gas-ratio (OGR) predictor. Before one can make to the same data. Geology-Driven Estimated-Ultimate- Recovery Prediction With Deep Learning T he authors present a geology-driven deep-learning estimated-ultimate- recovery (EUR)-prediction model for neurons found in the brain’s cortex—the part of the brain that deals with complex tasks. the Eagle Ford shale and included both tion. mated at an early stage when evaluating are attached. so once an ad- layered complexity and abstract-analysis used in the model were thickness. possible by recent developments in the rameters used to compute the represen. total organic carbon. po. the authors split the data prepared for the 2015 SPE Annual Technical Conference and Exhibition. however. so a re- data points and more than 800 wells). EUR from the geological data. oil and dry-gas wells. vali- 28–30 September. Data building all the levels of abstraction. such as vision and language. coder part of the DNN can be discarded. while the decoder transforms this ple mathematical model. consist of two data sets. The novel approach was made the model should change its internal pa. Volumetric analy.000 geological tation in the preceding layer. equate autoencoder is obtained. corrupts the input data (omit- sis. does not come close to the multi. In es- ploration engineers manage to make good The data used to train and test the model sence. the authors created two cial neurons from interconnected layers derived from a small number of well logs predictors—one gas EUR predictor and of software modeled after the columns of and interpolated into a grid. dation. minimize the error between the desired To build a DNN that understands the in- output and the actual output. logs for more than 800 wells that have big data (more than 200. a method called stacked denoising auto- and among geologists is that it is impos. the user place estimate for tight or unconventional one faces a similar problem with a corre. sets both the input and the desired output resources by entering geological param.000 data points.” by L. training. the de- skills needed to solve the problem. forcing estimate and often does not work at all. It uses artifi. The combination of all geologi- cal parameters can. Testing and Validation This article. When the geological data are complete paper. set had more than 200. DNNs that specialize in a particular task learn representations of data with mul. This pro. The geological parameters primarily focused upon the encoder. contains highlights To make sure that the model generalizes of paper SPE 174799. The final geological data reservoirs. In regard to hydrocarbon estimates encoders. the DNN to try to reconstruct the original This consensus is not wrong. all of which can be esti. 74 JPT • MAY 2016 . sponding solution. one must be several levels of ting variables and adding noise). DNNs much-higher-resolution map for the pre- horizontal wells in tight gas and oil use an iterative algorithm to indicate how dicted variable. to learn the relationship between geology data. logical regions. A performed by presenting raw input data liable decline-analysis figure for the EUR deep neural network (DNN) was trained to the DNN and providing desired output could be obtained. rosity. one with geolog. “Geology-Driven Estimated-Ultimate-Recovery Prediction well and that it can be applied to new geo- Using Deep Learning. A DNN is a computational model com. a new play. Crnkovic-Friis and M. an encoder and a decoder. Houston. 1). Training is been producing for several years. For the results given in the tiple levels of abstraction. during eters into an equation. the authors use Currently. and test (Fig. the consensus in the literature of times until the error stops decreasing. The region covered was a part of structure with multiple levels of abstrac- that apparent contradiction is that a sim.spe. such a DNN consists of two parts: guesses as to where the sweet spots are. This paper is tion. As a second step. The answer to data.org/jpt. written by JPT Technology Editor Chris Carpenter. that grids have low resolution and are quite smooth. provide a multistage hydraulically fractured require many levels of abstraction. for instance. The encoder even in regions where they have barely ical data and one with well-production breaks down the data into the intricate adequate geological data. the complete paper is free to SPE members at www. Erlandson. tricate structures and levels of abstraction Introduction cess is repeated iteratively many millions from the geological data. such as an equa. The training set For a limited time. abstraction above the raw geological data. vitrinite reflectance. The model then learns how to trans- and the average EUR (estimated by form its internal parameters in order to Model decline analysis). smaller predictor posed of multiple processing layers to and brittleness. water saturation.

sons. In a data set parable. data are derived from a small number of pear as noise or uncertainty in the model. The second model trained was one and Accuracy that predicts OGR from the same geo- The model is provided with no knowledge logical data. this discrepancy will ap. well logs and interpolated into a grid. and brittleness) is made ing. This was performed to in- about how the well was drilled or frac. the output bulk density. an error of 1 Bcf is consid- used as a final independent test. 1 Bcf can be acceptable. resulting grids have low resolution and duce an average—the most-probable are quite smooth. A third data set—the test set—is with 0. In an area where the average gas used for adaptation. should be interpreted as a baseline EUR organic carbon. might be made on the basis of it. water saturation. logical and geographical region. but where the model produces significantly different results. The standard statistical measure It is important that this system work for this is the mean absolute percentage well in new areas. one that The test set was in a separate region lies between 50 and 100 miles from the that was between 50 and 100 miles from training-set region and contains data the training-set region and used data from multiple operators. comes to performance vs. OGR. JPT validation data set. so the authors select. Results. Future Work The authors are currently compiling more geological data and data from other plays with more-diverse geology. however. JPT • MAY 2016 75 . If ber of wells. and it is used to curate as type-curve region averages that moved without significant loss of perfor- evaluate the model’s ability to generalize. Interpretation. scription of this expression). error (see the complete paper for a de- ed a test set that covers a separate geo. second. This can be demonstrated by select- ing two nearby regions that are relatively close to each other. This will also be a cause of (thickness. first. but indirect decisions they portray. Hence. but the authors had access when they began The validation set contains data that the they are still approximately twice as ac.2 Bcf. from multiple operators. the model is in balance when it that contains large variations in OGR. 1—Division into different data sets. while in an area izes well. vestigate the role of the resolution of tured. Because well and fracture design the geological data. there is risk of overtrain. building the models. Some can be re- model has not seen before. total data are sparse. vitrinite reflectance. the data are need- ed to validate that the knowledge carries over to distant locations and even differ- ent geological horizons. The combination of value considering all known designs. The current choice of parameters is used to adapt the model to the data. The predictions are not perfect. the new data will add to the deep model’s geologi- cal knowledge and allow it to increase ac- curacy and portability (to make use of the Fig. This is im- portant because. knowledge as it is applied elsewhere). an error of rectly to determine if the system general. erable. geological data are approximate and are give a much-higher-resolution map for often interpolated from a limited num. a value one might expect from for historical rather than scientific rea- overly specialized on the training data at an average well or fracture design. When the geological affect the EUR. a model is computationally powerful and variation in the output. while adding others would likely The model is never adapted directly to the do not generalize outside the regions increase accuracy. When the One can look at the error in absolute training and validation errors are com. terms or in relative terms. it makes sense to look at relative devia- Although the validation set has never been tions. EUR is approximately 5–6 Bcf. require substantial production data and mance. The all geological parameters can. the The predictive model will therefore pro. porosity. This means that the model becomes estimate. generalization. these were the parameters to which the expense of performance on new data. the predicted variable. it has been used indi.

review. by use of pressure data. the flow rate and pressure of Well 2 are that kernel-ridge regression-based ferent real and synthetic data sets. well machine-learning model to learn In this work. noise. gression. If PDG data from multiple wells prepared for the 2015 SPE Annual Technical Conference and Exhibition. although there have be able to test a greater area of the that would occur if Well 2 had been shut also been some studies on temperature.” by Chuan Tian and Roland N. wells are producing in a homogeneous the reservoir and makes PDG data a neering. well interference accurately and was created by computing the response sis on single wells. pressure interpretation in terms terference test is much smaller in com- formation implicitly. an artificial interference testing centrated on pressure-transient analy. where learning-based single-well Although the pressure change in the in- the patterns contain the reservoir in.spe. the complete paper is free to SPE members at www. exist. in while Well 1 had kept producing at transient analysis and multiwall-data ◗ Develop a machine-learning model constant rate.org/jpt. A review of methodologies. and the large framework for pressure analysis on wells were augmented with artificial data volume. kernel method. pressure change caused by the other well flow-rate reconstruction. 76 JPT • MAY 2016 . multiwell testing. This makes Introduction background information and literature it difficult for the machine-learning algo- Analysis of PDG data is challenging be. small pressure interference. The observation well is shut paper SPE 175059. and flow. and model reg. ◗ Ensure that both models maintain shows the comparison of the pressure sis. the well interactions. The flow rate and pressure of valuable source for reservoir analysis. but rate reconstruction. On the basis of the sure change at the well itself. as shown in Fig. In this case. and gorithm still captured the trend of this that machine learning has the poten. including The example of interference testing data analysis. and learn the reservoir machine-learning concepts (linear re. In this work. The idea of artificial interference testing can also be useful because it does not require additional cost in the field This article. 1f learning techniques for PDG-data analy. the small magnitude of two applications: multiwell testing and tures and the targets. “Machine Learning Applied to Multiwell-Test Analysis and Flow. response at each well was designed to be to interpret pressure transients from a proach. Until now. The shown in Figs. most efforts a single well to multiwell systems. tial to handle the complexities in PDG. After training the in PDG-data analysis have been con. including continuously vari. small. the patterns behind PDG data. the data. complete paper. Houston. machine-learning model for each prob. is mostly hidden by the dominant pres- Problem Statement. however. The pressure machine learning is a promising tool test results validated the developed ap. contains highlights of operations. parison with the training case. Stanford University. it has been shown lem and have tested the models on dif. ◗ Extend the machine-learning The flow rate and pressure of both able flow rate. of interference. The framework should capture the model. Well analysis. was used as an observation well. and Well 2 been some attempts to apply machine. A previous study of the accuracy of prediction. The fundamental idea is to learn the advantages of the machine. the al- on single-well pressure analysis showed computational efficiency. reservoir. an artificial-interference test can 28–30 September. Horne. the authors use machine ularization). 1c and 1d. However. written by JPT Technology Editor Chris Carpenter. well. and illustrated the flexibility of affected by the production of the other single PDG. two provides extensive information about in PDG-data analysis in practical engi. and In previous work. even though the learning as the tool for investigation. Recently. is provided in the magnitude of pressure interference is address two different problems—name. in in the computer program but not in Rate Reconstruction. The paper has not been peer reviewed. the objectives of this research rithm to differentiate the pressure con- cause of the inherent characteristics of were to tributions from other wells. Well 1 are shown in Figs. prediction at Well 2 and the true data. Fig. because of the nature learning framework was extended to ferent applications by adapting the fea. which ly. Both topics are important Multiwell Testing. multiwell testing (multiwell pressure- transient analysis) and flow-rate recon- struction. Case 1: Artificial Interference Testing. demonstrates the ability of the multi- model successfully. the machine-learning framework for dif. the machine. the field. be implemented easily by picking one For a limited time. Machine Learning Applied to Multiwell-Test Analysis and Flow-Rate Reconstruction Results and Analysis P ermanent downhole gauges (PDGs) can provide a continuous record of flow rate and pressure. The authors have developed a reservoir. there have to reconstruct the flow-rate history 1 was used as an active well. tolerance to noise. noise before training. 1e. 1a and 1b.

Here. active well and observing the pressure dress the two-phase issue. both cases.000 Noisy Data ∆Pressure (psi) –500 Prediction 1. known data. The machine- Adding more wells only means adding learning approach for flow-rate recon- more features. ferent. phases. Flow-Rate Reconstruction. thus re. although the training data were learning task by introducing a greater sponse is caused by the flowing of both still pressure and flow rate.500 0 True Data Flow Rate (STB/D) 2. ing. the authors rate looks very different from the train- in the center. Besides feature expan.5 –10 350 –15 –20 349. 2. the direction of the modeling was dif- ther complexity is added to the machine. and an injection well sits jector was observed. (e) shows the flow rate of Well 1 during the interference test (Well 2 is shut in). Thus. Case 3: struction was tested further on a real sion. flecting the physics that the pressure re. Four production wells tion on the validation set. A high agreement between pre- ous well locations. two pressure histories were used as phase flow.000 1. when constructing the features. to the training set and a good predic. Case 4: Real Data. 1—Machine-learning results on Case 1. phase flow.500 –1. (f) shows the comparison of true pressure (blue) and pressure prediction (red) of Well 2 during the interference test. To ad.000 –1. (b) and (d) show the true pressure (blue). the contributions from multiple wells. given flow-rate controls at vari. viation in pressure prediction for the in. After train- number of wells and the presence of two. tions. demonstrating the ability of The key idea in multiwell testing is to framework does have the flexibility to the method to generalize well to un- expand the feature dimension to include work on multiwell systems with two. and the pressure prediction (red) corresponding with the true flow rate of Well 1 and Well 2. no other treatment was required to Synthetic Data. although a de. the PDG-data set. The goal is to forecast the The results showed an accurate match input to generate the flow-rate predic- pressure. (a) and (c) show the true flow rate (blue) and the noisy training rate (circle) of Well 1 and Well 2. dictions and true data was observed in are located at the corners of a homoge. noisy training pressure (circle).000 0 50 100 150 200 250 0 50 100 150 200 250 (a) (b) Time (hours) Time (hours) 500 –100 True Data Flow Rate (STB/D) Noisy Data 400 ∆Pressure (psi) Prediction –200 300 –300 200 –400 100 True Data Noisy Data 0 –500 0 50 100 150 200 250 0 50 100 150 200 250 (c) (d) Time (hours) Time (hours) 351 0 True Data True Data Flow Rate (STB/D) Prediction –5 ∆Pressure (psi) 350. replaced the oil rate by total liquid rate artificial noise.5 –25 349 –30 0 50 100 150 200 250 0 50 100 150 200 250 (e) (f) Time (hours) Time (hours) Fig. conclude that the machine-learning ing rate. the authors with pressure and flow-rate data with response at other wells. fur. In this case. machine-learning model was trained the flow-rate data was hidden to mimic JPT • MAY 2016 77 . although the zig-zag flow neous reservoir. In the training step. part of account for the additional wells.500 500 True Data Noisy Data 0 –2. A cross validation was applied. It should be noted that Case 2: Pressure Forecast.

continuous ◗ The machine-learning approach approach to estimate the missing pressure measurements from the PDG for PDG pressure analysis was flow rate compared with earlier are available. the complete pressure his. After training. The model was tested on both a promising technique for PDG- ing features and targets. Coupled with the kernel. In that case. be applied to create an estimate of the model was tested in two Pressure-transient analysis. interference-test creation without reconstruction each have their veloped to model flow rate with pressure affecting field operation. The multiwell in solving different applications. Conclusions showed promising performance. flow-rate measurements is available to accurately. definitions of features and targets. multiwell systems. was developed for flow-rate adapting features and targets for mance. promising applications: artificial. Kuwait SPE International Heavy Oil Conference & Exhibition SPE INTERNATIONAL HEAVY OIL CONFERENCES & EXHIBITIONS 78 JPT • MAY 2016 . and data analysis. the features systems with given rate control. missing flow rates. a new set of features was de. Peru SPE Latin America and Caribbean Heavy and Extra Heavy Oil Conference 6–8 December 2016 | Kuwait City. the the pressure contributions from flexibility of machine learning flow-rate-reconstruction technique can various wells. as long as at least model was shown to be able approaches require an assumption one period of consistent pressure and to capture well interactions of the reservoir model. This work further property of machine learning: the flex. the situation of missing measurements. but parts of the flow-rate extended from single-well to optimization or analytical solution measurement are missing or may be un. pressure forecasting for multiwell Machine learning treats these ridge regression framework. Usually. and flow-rate In short. Canada Calendar! SPE Canada Heavy Oil Technical Conference 19–20 October 2016 | Lima. There are three primary conclusions of The machine-learning model tory was used as input to reconstruct the this work: provides an effective alternative missing flow rate. The multiwell approaches because the latter reliable. The results also indicate another reconstruction with new each application. different applications with the were tested on both synthetic and real ◗ A machine-learning model same solution procedure. and own complex physical processes. by data sets and showed promising perfor. multiwell testing. JPT Mark your 7–9 June 2016 | Calgary. demonstrates machine learning as ibility in direction of modeling by adapt. synthetic and real data. and to differentiate ◗ This work demonstrates the learn the pattern between the two. measurements.

among them Modern Well Design. an MS degree in control engineering from The University of Texas at Extended-Reach Envelope at Chayvo Austin. Aadnøy. a horizontal departure exceeding 10 km Although these directional-well con- was feasible. multilateral/ ered mature technologies today. and Mechanics of Drilling. and. He was Technology for Sandstone Oil Application also one of the editors of the SPE book Advanced Drilling and Well Technology. mul- its of that time. in the considered one of the more important late 1990s. JPT • MAY 2016 79 . resulting in fracture direction is controlled by the field recoveries as a consequence.aadnoy@uis. tional control. One of the more important was they were initially costly with a high eco- forms now could be designed for up to the desire to increase production in tight nomic risk. nology development at many levels that 1980s when 3-km reach was common. There is a continuous tech- 10-km reach. He worked for major Recommended additional reading operators in the oil industry from 1978 until 1994. equipment limitations. Aadnøy is a member of the JPT Editorial Committee and can be reached at Reach Farther? by Ken Newman. Multilater. Aadnøy.org. Several major operators more important means of tilateral/extended-reach wells may be were extending their limits. Aadnøy holds a BS degree in mechanical engineering from the University of SPE/IADC 168055 Expanding the Wyoming. Another advantage is direc. et al. with increased platform instead of three. BP Wytch Farm showed that improved oil recovery. important for future cost-effective oil and gas production.no. at OnePetro: www. and a PhD degree in petroleum rock mechanics from the Norwegian Institute Field. large reservoir areas are drained from recovery. Sakhlin Island by Vishwas P. KNewman bernt. specializing in all aspects of well engineering. and has authored or and Installation Plan of Efficient and coauthored five books. SPE. Professor of Petroleum Engineering. by Kevin Rice. on the industry because offshore plat. when he tran. Accurate Multilaterals Drilling Stimulation Petroleum Rock Mechanics. Engineering. Well stimulation with leads to improvements. et al. can be consid- one or more platforms. on the other hand. in-situ stresses in the rock. where bore friction. Award and is also a 2015 SPE/AIME Honorary Member and a 2015 SPE Distinguished SPE 168235 CT Extended Reach: Can We Member. Those tant to maximizing recovery for many directional drilling is the that help clear the challenges. Fishbones. drilled in any direction. fore. In the late 1980s. is a professor of petroleum engineering at the University of Stavanger. opment. as opposed to the early reservoirs. These result in A field could now be developed with one fracturing has the drawback that the more-efficient processes. including geomechanics. From this and operational aspects. From this perspective. well- applied in offshore environments. sitioned to academia. SPE. cepts have been used for some years. means of improved oil recovery. et al. of Technology.TECHNOLOGY FOCUS Multilateral/Extended-Reach Wells Bernt S. holds several patents. JPT Bernt S. ment around these technologies. There- enormous savings. be considered one of the recovery. multilaterals and extended-reach Multilateral-well technology also al branches. University of Stavanger The development of multilateral wells The main benefit from There has been considerable develop- and long-reach wells has become impor. Aadnøy has published more than SPE 174035 Technology Qualification 150  papers.onepetro. These technologies are often maximizing of reservoir those related to wellbore stability. long-reach wells extended-reach wells may The main benefit from directional started to use existing infrastructure drilling is the maximizing of reservoir better by drilling beyond the design lim. He was the recipient of the 1999 SPE International Drilling Engineering ExxonMobil. This had a significant effect There were many drivers for this devel. Gupta. such as fields. can be wells are now common and will be very matured during the past 2 decades. perspective.

000 lbf-ft and the openhole fric- tion factor increased from 0.12 to 0. and ensured cleaner and more-stable hole conditions. drillpipe.000 to 15.22 at the beginning of the run to 0. at total depth.spe.400 to 18. prepared for the 2015 SPE The use of the CBI tools resulted in a Kuwait Oil and Gas Show and Conference. and no secondary hole clean.659 ft.16.000 to 19.16.12 while drilling the For a limited time. the on- improve the drilling efficiency. and siltstone. and Zahid Muneer. build up to 85° from 1.16 to 0.18 to 0.12 Extended-reach Well A1 was drilled 5-in. tangent from 0. ate hole-cleaning efficiency and perfor. with an openhole friction face to 1. The well was drilled 10.480 ft The 8½-in. openhole friction factor decreased from drag. Poor hole cleaning can lead recommended the use of 5-in. the off-bottom drilling torque slightly Historically. and hold an 85–90° inclina. Friction friction factor dropped from 0.828 to 14. bottom drilling torque progressively in- the best possible hole cleaning.000 lbf-ft sections required the use of several tan. creased from 11. “Use of an Innovative Tool To Improve Hole-Cleaning Efficiency from 18. the off-bottom drill- tested on Well A1 from an onshore limestone. From increase cuttings removal was trial stratigraphic environment composed of 17.000 ft. The challenges were to clean hole and the openhole friction factor dropped dem sweep pills. 80 JPT • MAY 2016 . cuttings. which are drilled 9⅝-in.12.000 ft. The contributed to the low rotational friction limestone. shale. objective was to hold vertical from sur. Nonrotating drillpipe pro- to a measured depth (MD) of 30. tangent section was drilled tectors also were installed on the 5-in. the on-bottom gent section in the 8½-in.000 lbf-ft and the openhole ◗ To enhance hole cleaning by Reduced Torque. the on-bottom ◗ To reduce the frequency and the drillstring reduced torque and drag. Kuwait. drillpipe throughout the cased hole and a stratigraphic environment composed of sues (no tight hole or stuck pipe).800 to 19. a new technology to from surface to 30. CBI tools in From 18. and reaming while drilling the long 8½-in.12.000  lbf-ft and the openhole friction drill efficiently. and. contains highlights bottom drilling torque slightly increased of paper SPE 175165.000 ft. extended 8½-in. drilling torque slightly increased from The goals of the trial test were 14.600 ft to target depth. Matt Weber.000 to 17. Frank’s 0.18 to 0.828 to 14. and make them comparable with bottom drilling torque progressively One challenge the operator faces is those of offset wells increased from 7. The ing torque increased from 10.” by Mike Okot.-casing point in December 2013 drilling torque remained constant at in excess of 10.000 number of tandem sweep pills limited the chances of getting stuck be. and back reaming to maintain hole quali.18. A service company installed a cuttings. From 14. The to tight intervals. From 19. section from 11. International.000 lbf-ft.22 to 0.600 ft.000 lbf-ft and tion was performed by placing the new flowmeter system at the shakers to evalu. and Alawi G.org/jpt.160 ft. From 10. cy of one tool per three stands on the 0. Schlumberger. the off-bottom 85–87° inclinations. sandstone.535 factor of 0.400 ft. the on- This article. factor encountered during this run. removal of cuttings The placement of 47 5-in. a simula. From 19. To ad. tor from 0. mance of the hole-cleaning tools.659 to 24.-hole section.160 ft.535 ft. written by Special Publications Editor Adam Wilson. tools every three stands along the tan. To obtain ing was required. The paper reduction in the rotational friction fac- has not been peer reviewed. the tool company rotational openhole friction factor expe- efficiently. Introduction to 11. 13. the complete paper is free to SPE members at www. Saudi Aramco. the openhole friction factor was 0. The CBI tools contributed to the low ty and remove cuttings from the wellbore dress these challenges. drilling very long tangent tion to total depth. primary hole cleaning was achieved dur. wiper trips. In an effort to in the Manifa field. jective of the trial test for the tool was to ing drilling. [8. Marlio Campos.12. Mishref. Innovative Tool Improves Hole-Cleaning Efficiency in Extended-Reach Wells S audi Aramco operates a large offshore oilfield development that has driven achievements in multilateral ◗ To reduce the frequency and number of wiper trips ◗ To reduce torque and drag levels cause of packoff.480-ft MD and into a factor dropped from 0. 11–14 October. the off- and extended-reach directional wells. German openhole friction factor decreased from Muñoz. eventually. From 10. tangent sections at Well A1 resumed drilling from a preset From 14. increased torque and bed-impeller (CBI) tools at a frequen.000 to 10.000 to 24. increased from 13.000 lbf-ft and the in Extended-Reach Wells in Saudi Arabia. drilling torque increased from 15.16 to 0.000 ft.14. Alalsayednassir. to 18. SPE. and siltstone. stuck pipe.000 to 19. The ob. rienced while rotating off-bottom.000 to 14.000 to location of the field.800 ft.000 lbf-ft to maintain proper hole cleaning in ◗ To reduce drilling cost with an openhole friction factor of 0.650-ft true vertical depth (TVD)] into smoothly without any hole-cleaning is.22.000 to 14.

&./('78%.//.(6 +<'5$8/.$/6(59.SOLUTIONS TO TODAY’S CHALLENGES ENSURING TOMORROW’S SUCCESS Today’s oil and gas market presents unique and dynamic challenges.08/$7.'('/. 67. visit www. At Cudd Energy Services (CES).1*ɕ.&/.1'8675.752*(1 6/./'5. LQGXVWU\FHUWL¿HGHQJLQHHUVDQGVSHFLDOLVWVDWWKHKHOPRIHDFKSURMHFW\RXUHFHLYHXQSDUDOOHOHG H[SHUWLVHWRKHOS\RXDFKLHYH\RXURSHUDWLRQDOREMHFWLYHVVDIHO\DQGHI¿FLHQWO\ For more information about our complete portfolio of services. With a team of experienced.1* (&2.cudd.1( %5$.&(6ɕ:(//&21752/ .29(5ɕ&(0(17. we are committed to delivering integrated solutions with the long-term health of \RXULQYHVWPHQWLQPLQG:HIRFXVRQSURYLGLQJVROXWLRQVWKDWLPSURYHHI¿FLHQF\LQFUHDVH productivity and reduce costs for the lifecycle of your investment.752*(1ɕ1.1*7(&+12/2*.$/1./.com today.1(ɕ:$7(50$1$*(0(17 63(&./ɕ&2.1(ɕ(/(&75.21ɕ&2.&:25.

865 ft) 60 600 Drill (23.7 .3 . stable wellbore conditions. not use the CBI tools.9 . simulated hookload with a friction cleaning. ◗ Drilled 13. section was drilled in pickup weight compared with a trips were avoided by optimum hole successfully without any hole.828 to 24.1 . As shale shakers. although smooth tripping cleaning problems. Hole-Cleaning Analysis flowmeter data.22 at the beginning ◗ Primary hole cleaning was achieved exceeded expectations. Fig. before Well A1 and Well B1. no secondary hole tools enhanced hole cleaning and ◗ The CBI tools showed a significant cleaning was required. hole cleaning was required. ensured stable hole conditions while reduction in hookload.4 .9 . substantial reduction in the no tight-hole or stuck-pipe events All bits were pulled out of hole rotational friction factor while recorded.5% Drill (18.200 1.292–24. efficiency was also monitored.8 .5 . showed excellent hole cleaning.4 .8 .7% Deficit (bbl) 400 Trip Trip 40 Trip 300 30 Drill (12.1 .3 .832–24.100 ft was drilled a result. ◗ Pill efficiency was monitored and ◗ The cuttings recovery of 91.3 .15–0. up to 1.160 ft) /2 3 /3 3 /3 3 01 1/13 01 1/14 /0 4 /0 4 /0 4 /0 4 /0 4 /0 4 14 /2 3 /2 3 /2 3 /2 3 /2 3 /2 3 /2 3 /2 3 /2 3 /2 3 /1 3 /1 3 /1 3 /1 3 /2 3 /2 3 12 0/13 /1 3 /1 3 /1 3 /1 3 /1 3 /1 3 /1 3 Theoretical. tangent section. the drilling plan.100 100 1. early detection without pumping any tandem pill. only one pill was All short trips and wiper trips A cuttings flowmeter at the shaker evalu. tangent section trips showed a 27. 8½-in.300 110 Cuttings Recovery: 91. revealed the recovery for Well A1.000 Cumulative Dry Volumes (bbl) 90 % Recovery 900 80 Sweeps 800 Secondary Recovery 2. A major reduc.895 ft in one condition. ◗ Drilled 5.7% Drill (10.6% 1. tion in the friction factor was also ob. effectiveness of the tools.865–18.5 . The 47 CBI tools The openhole friction factor was run each. and no secondary when the majority of CBI tools covered blowout-preventer tests.8 . slackoff weight and an 11% decrease ◗ All planned short trips and wiper ◗ The 8½-in.1 . The CBI of the run to 0. during drilling.160 ft) Volume (bbl) Tripping Recovery 93.000 ft of the run.3 .398 ft) 500 Recovery 89. Measured by Cuttings Flowmeter. Well A1 Cumulative Cuttings Recovery Chart 8½-in.9 . instead of for every 45 ft or of hole-cleaning assurance. to the last casing shoe without pump or stuck-pipe events were noticed.865–18. and measured and analyzed coming off the ◗ With the help of hole-cleaning pill frequency was optimized.8 .490 ft and 3. which did ble.7% 10 0 0 –100 23 59 24 50 24 60 60 23 77 23 05 23 92 23 92 23 92 20 57 21 91 21 81 22 22 22 37 14 43 15 13 15 76 16 31 17 2 18 56 18 52 18 55 18 55 19 55 19 15 19 98 19 98 19 62 20 70 11 32 11 35 12 71 12 25 12 66 13 66 13 54 7 . JPT 82 JPT • MAY 2016 .2% 100 Recovery 88.6%.4 . liner. of Well A1.12 at target depth. 1 shows the cumulative cuttings running the 7-in. pumped for every four or five stands were eliminated on the basis ated hole cleaning.0 . section 10.160 ft was drilled ◗ The 47 CBI tools resulted in a without any hole-cleaning issues and successfully with five bit runs.4 10 Lag Depth (ft) Fig. By comparing measured assurance.3 . Section (10.2 . times because of tool failures and for during drilling.332 ft in 8½-in. volume was saved compared with of inadequate hole cleaning and excess ◗ Final trip at target depth was smooth.6% Theoretical Openhole Recovery (%) 70 Volume (bbl) 700 Secondary Recovery 0.5% 50 Volume Excess/ Recovery 90.838–12.2 .355 ft) 200 20 Drill (12.1 .8% Secondary Recovery 2.3 .1 .2 .355 ft) Recovery 89. greater than 50% of pill and theoretical volumes. with an Conclusions 11.2 .2 . drilling the 8½-in.7% improvement in recovery and Results ◗ The 8½-in.20.5 .355–19. the tangent section. tangent section from a 50% decrease in pill frequency. returns caused by wellbore instability indicating good hole cleaning and ◗ A hole-cleaning comparison between (caving) or formation damage was possi.6% optimized on the basis of cuttings. in excellent and rerunnable rotating off-bottom and on bottom. installed in the drillstring met and reduced from 0. Pill reaching the surface was continuously for every stand drilled.4 . no tight-hole factor of 0. The weight of cuttings drilled.6 .8 .7 .3% increase in with a cuttings recovery of 91. Volume Excess/Deficit 12 9/1 12 9/1 12 0/1 01 1/1 01 2/1 01 3/1 01 4/1 01 4/1 01 5/1 12 1/1 12 2/1 12 2/1 12 3/1 12 4/1 12 5/1 12 6/1 12 6/1 12 7/1 12 8/1 12 7/1 12 8/1 12 9/1 12 9/1 12 0/1 12 1/1 12 2/1 12 3/1 12 3/1 12 4/1 12 5/1 12 6/1 12 6/1 6/ /1 /0 /0 /1 12 120 1. or rotation was performed four Primary hole cleaning was achieved served in the last 5. The last ◗ Excellent hole-cleaning efficiency. 1—Hole-cleaning chart showing percentage of cuttings recovery and dry volumes for Well A1.4% Actual Recovered Secondary Recovery 0.

The operator consequently sought an alternative drillpipe connection with higher torque capacity. This article. contains highlights of paper SPE/IADC 168049.N. fecting rate of penetration (ROP) and in ROP to keep surface torque below site in 2011 for further development and torque operating margin in the produc. The subsequent Chayvo drilling cam- Odoptu. During the Odoptu campaign. SPE. Jellison. the Yastreb rig was tion was identified as a new limiter af. ExxonMobil. drillpipe connection was identified. Introduction The Sakhalin-1 project comprises the Chayvo. mum makeup torque of 56. “New Rotary Shouldered Connection Expands the Connection Modifications Capability of World-Record ERD Operation. uous torque in excess of 90. prepared for the 2014 SPE/IADC Drilling Conference and Exhibition. Brock. Develop- ment drilling at the Chayvo field start- ed in 2003 with extended-reach wells drilled from an onshore location with Fig. the drillpipe-connection torque rating. have required significant reductions moved back to the Chayvo onshore well.R.” by S. 1). quickly limits the For a limited time. and A. To Increase Torque Capacity SPE. and the consequences Fort Worth.000 lbf-ft paign had planned wells that predicted it was determined that a higher-torque at 140  rev/min eliminated this limiter. 4–6 March. torque capacity. part of the initial-stage development of tion of a new topdrive capable of contin. written by Special Publications Editor Adam Wilson. drillpipe connection with good During the subsequent Odoptu drilling Using the existing 5⅞-in. Sanford. Following the campaign. M. the Yastreb drilling rig. the Yastreb rig was During the first drilling campaign at The existing 5⅞-in.spe.W. Muradov. Limiter Identification Torque Limitation sequently. Installa. drillpipe connec- moved approximately 75 km north to the Chayvo. infill drilling of the Chayvo reservoirs. NOV Examining the parameters affecting Grant Prideco.org/jpt. USA. In 2005. Sub. of modifying them. available topdrive torque limited tion used on the ERD wells during the Odoptu onshore wellsite and drilled nine drilling performance in the long produc. surface torque in excess of 70. The need for increased torque capac- ity of the 5⅞-in. SPE. connec- runnability was needed. tion hole section. 5⅞-in. Texas. Walker. Odoptu. and M. tion for upcoming planned wells would Odoptu campaign.600 lbf-ft. Odoptu drilling campaign had a maxi- extended-reach-drilling (ERD) wells as tion hole section (>3000 m). the 5⅞-in. the complete paper is free to SPE members at www. Russian Federation (Fig.J. and J. 1—Sakhalin-1 field overview. and Arkutun Dagi fields off the east coast of Sakhalin Island. The paper has not been peer reviewed.New Rotary Shouldered Connection Expands Capability of ERD Operation E ight of the world’s 10 longest wells have been drilled by ExxonMobil as operator of the Sakhalin-1 project in Russia. SPE. further development drilling commenced from the offshore Orlan platform site. in 2008. Components and drilling tools involved in the well design are evaluated and redesigned throughout the program to maximize penetration rate and reduce flat time. Drillstring- torque capacity was recognized as a limiter for increasing penetration rate and for reaching total measured depth capability. JPT • MAY 2016 83 . drillpipe connec.000 lbf-ft.

in order to increase torque capacity. and makeup torque is a possible reduc- double-shouldered connection (DSC) was dustry has defined the term “friction fac. GONZALEZ CONVENTION CENTER » SAN ANTONIO. the in. maximize torque capacity. was chosen on the basis of the desire to Diameter (ID).15. Increasing the Makeup Stress Level.10 to 1. the operator was willing to nection OD can limit fishability and in. The consequence pacity while maintaining interchange. Rather than of increasing material yield strength ability with the second-generation specify the coefficient of friction. A balance must be preferred. Final Connection Design line rotary-shouldered-connection (RSC) Considering all of the torque-affecting Increasing Connection Outer Diameter thread compound and has been desig. provide a substantial increase in connec- a solution to increase the torque ca. increases torque equal to 60% of the connection’s generation DSC provides an additional REGISTER NOW URTeC. increasing providing increased torque capacity. given makeup stress level. Recommended Practice 5A3 is the base. The coefficient of friction is determined tion torque capacity. a given flow rate.000-psi specified. For a 7A1.00. ability and result in only minor improve.000-psi SMYS. which. the final design (OD) and Decreasing Connection Inner nated as having a friction factor of 1. joint SMYS to 130. Increasing the con. acteristics as determined by testing in ac. With one exception. dard DSC already being used.org 1-3 AUGUST 2O16 HENRY B. environment. increasing the RSC thread compounds are available with Because ERD wells place the drillstring in area parameters will increase the normal friction factors ranging from 1. and toughness. to maintain in- of the area and radius parameters can pounds are based on their frictional char. all The friction factors of other thread com. The enhanced second- the drillstring. If possible. Changing the thread-form tor” to compare the frictional charac. teristics of different thread compounds. The design and decreasing the connection ID. sacrifice tensile capacity of the connection crease the equivalent circulating density RSCs typically have 120. options to increase the torque capacity of the surface pressure required to maintain torsional strength. and high-torque (long measured depth) the frictional forces. in the annulus. Zinc-based thread compound with API ments in torque capacity. tion in fatigue life. and to main- pacity by increasing the connection OD cordance with API Recommended Practice tain ease of use in the field. Increasing the tool- the connection. TEXAS The integrated event for unconventional resource teams 3 days • 11 disciplines • 1 focus Sponsoring Organizations: Supporting Organizations: 84 JPT • MAY 2016 . Decreasing connection ID minimum-yield-strength (SMYS) tool A fatigue-resistant thread form was increases frictional pressure losses along joints and have recommended makeup also incorporated. Several good-quality copper-based used tool joints with 130.000 psi and increas- ing the recommended makeup torque will Thread-Form Parameters. Increasing the Coefficient of Friction. a low-tension (shallow true vertical depth) force on the torque shoulders. connection parameters. in turn. maintained between tool-joint strength parameters would prevent interchange. terchangeability with the existing stan- be changed easily to increase torque ca. by the thread compound.

Stabbing and making up the enhanced second-generation DSC have proved to be identical to previous operations with the standard second-generation DSC..580-psi bending stress at the outer fiber of the test specimens. These field data support the laboratory-testing data in terms of the enhanced connection not being more prone to fa- tigue failure than the standard second-generation DSC. while the other two failed in the last engaged thread of the box. With the use of a good-quality copper-based thread compound with a friction factor of 1. Fatigue test- ing was performed on a harmonic-fatigue-test machine. No failures of the enhanced second-generation DSC have been observed in operations. which corresponds to 14. This machine applies a cyclic bending stress by exciting the part in a whirling motion. while maintaining compatibility with the exist- ing standard second-generation DSC that the operator has been using in this field for 10 years.15. The enhanced second-gen- eration DSC samples exhibited better fatigue performance com- pared with the baseline standard second-generation DSC. Four samples of the enhanced second-generation DSC and the standard second-generation DSC (baseline) were fabricat- ed for testing. Three of the standard second-generation DSC samples failed in the last engaged thread of the pin. comparative fatigue testing was con- ducted at the manufacturer’s technology center. Initial deployment of this connec- tion proceeded without issues. Test Results All samples were tested to failure. Although the new connection is in a higher stress state than its predecessor when made up. The bending stress was arbitrarily chosen on the basis of previous experience and in an attempt to perform testing within a reasonable number of cycles. consistent with the history of the standard second-generation DSC. The operator was able to use all existing tools from the standard sec- ond-generation DSC and maintain complete compatibility with the new drillpipe connection. All samples were tested at a bending moment of 424. The test results demonstrate that the fatigue-resistant thread form incorporated in the enhanced second-generation DSC de- sign adequately compensated for any potential adverse effects of the increased makeup torque and also improved the fatigue performance when compared with the field-proven standard second-generation DSC. Two of the enhanced second- generation DSC samples failed in the last engaged thread of the pin. respectively. Field Deployment The enhanced second-generation DSC has been in use for 18 months on two different rigs.300 cycles and 571.26% in torque capacity compared with the standard second- generation DSC. JPT JPT • MAY 2016 . Fatigue Testing In order to evaluate the fatigue performance of the enhanced second-generation DSC. while one failed in the last engaged thread of the box.276 cycles. and compatibility with the exist- ing standard second-generation DSC has been successful. the makeup torque could be increased even further. the operator has seen no fatigue cracks during routine inspections.000 lbf-in. failing on average after 982.

SPE. Magnetic Referencing and Real-Time Survey Processing Enable Tighter Spacing of Wells W ellbore position is computed from survey measurements taken by a measurement-while- Generally. an ISCWSA subcommittee. The most cost. contains highlights netic reference values is very high. The Operator’s Wellbore Survey Group can lead to significant errors in the decli- (OWSG). A recent sired drilling date using the main field quantifying the magnitude of uncertain. than 50 years to map geology and tecton. Fourier transforms or equivalent-source line can then be extrapolated to any de- cy (ISCWSA) developed a framework for techniques on planar 2D grids. The actual Ellipse of Uncertainty (EOU) magnetic-field measurements to produce drilled wellbore trajectory is with 95% Numerous error sources are associated an accurate 3D magnetic reference model confidence within the EOU of the with MWD-survey measurements. and Jarod Shawn Deverse. IFR confidence for the tool codes MWD (green) The objective of IFR is to use local- and MWD+IFR1+SAG (red). use total field and dip angle as quality- corrections for sag (MWD+IFR1+SAG). and magnetometer sensors. This enables one to corrections using MWD with IFR and first produces an accurate baseline mag. 2–3 September. grid into the global crustal field inferred ated with the individual accelerometer ing methods. The MWD tool uses (MSA) can reduce the uncertainty by 50 accelerometers and magnetometers to 61%. Texas. The one can assume that any difference in paper has not been peer reviewed.spe. sent the solution in terms of global high. total field and reference dip angle. if the measured total field and dip Tighter Spacing of Long-Reach Wells.79 for 95% MWD azimuth measurements. dip angle regardless of wellbore direc- EOUs for standard MWD vs. A superior approach is to tie the systematic bias and scale errors associ- computation of EOU for specific survey. which have been used for more baseline for the reference date is supplied that propagates along the computed well. 1—A comparison Local high-resolution in-field wellbore trajectory. Knowing the by advanced survey-correction direction of these two fields and using methods. Bending of the BHA them as a frame of reference enable brings the accelerometer drillers to calculate inclination and out of alignment with direction (azimuth) of the wellbore. netic field for a given reference date. from satellite measurements and repre. There- of paper SPE 175539.org/jpt. selected surveying method. the inclination of the Fig. When a local IFR model is used. MWD tools ferred to as the OWSG set of tool codes. This control parameters to test the accura- cy of the instrument. written by Special Publications Editor Adam Wilson. 1 illustrates the difference between degree ellipsoidal harmonic functions. while drilling (MWD) tool in the bottomhole further applying multistation analysis assembly (BHA). the complete paper is free to SPE members at www. This consolidated set is re. con. ty. 1. one can see that the large uncertainty of standard MWD can be re- duced by 11 to 38% by use of IFR. and for the drilled volume. can measure magnetic-field strength and Fig. vertical to measure the Earth’s gravitational uncertainty can also be reduced and geomagnetic fields. Earlier IFR methods used fast culator to the drilling engineer. SPE. anomalies are entirely contained within ity of MWD surveys and for correcting performance models that enables the the grid. of the EOU referencing (IFR) models have been This effect can be corrected at a standard produced for the Permian Basin that for by applying corrections for sag. then Rich Basins Conference—North America.” by Stefan Maus. The Industry Steering ic features. Magnetic Variation angle are compared with the reference Services. prepared for the 2015 SPE Liquids. deviation of significantly improve the accuracy of 2. advanced The IFR method used by the authors tion and inclination. Surcon. analysis showed that these grid methods model embedded in the IFR calculator. the accuracy of the mag- This article. as an IFR model together with an IFR cal- bore trajectory. “Magnetic Referencing and Real-Time Survey Processing Enable fore. As shown in Fig. measurements is mostly because of sen- For a limited time. Midland. The base- Committee for Wellbore Survey Accura. USA. nation and dip reference values because MSA tinued development on the original error they assume that the crustal magnetic MSA is a method for evaluating the qual- model and published a set of instrument. 86 JPT • MAY 2016 . each error source contributes in some effective method is to use aeromagnetic form to the magnitude of uncertainty surveys.

Because magnetic reservoir recovery through accurate well interference caused by the drillstring is placement. ton (metric) × 1.8 =°C error. ampere-hr × 3.460 43 E−01 =kW chanical stress in the presence of a mag. liq) × 3. fl) × 2. ft3 × 2. conversion factors for common engineering units. the multiple surveys will distinguish system. ed from standard MWD measurements.448 222 E+00=N at the tool. The effect of this magnetic in.753 8 E+01 =kPa2 string interference effectively because it bore position also makes it difficult to sq mile × 2. mile × 1.785 412 E−03 =m3 magnetic particle inspection and by me.S. This es. and improved quality control *Conversion factor is exact. greater tonne × 1.0* E+00=cm3 the nonmagnetic spacing between the placed where they were planned could mho × 1. as engineers and geologists may believe. which reduces the size surveys. Ci × 3.3 × 1. and exter.54* E+00=cm ing.6* E+06 =J pletely remove the magnetic interference ing is not always as consistent or accurate lbf × 4.894 757 E+00=kPa challenging to eliminate magnetic drill. this reduction in interference by reducing CONVERSION FACTORS nal errors. be removed from the measurement in the form of a survey correction. calibrated MWD instruments.67)/1. °API 141. JPT JPT • MAY 2016 87 . lbm × 4. it is also difficult when the well position is not known to to estimate the pole strength of the BHA a high degree of confidence.0* E−04 =m2/s the drill bit as possible. quality control of survey data because hp × 7.0* E+00=S MWD sensors and the magnetized com.5+°API) =g/cm3 pected calibration of the instrument as accuracies in the geomagnetic reference atm × 1.638 706 E+01 =cm3 cause inaccurate measurements by the cause the spacing is often determined by kip × 4. drill collars. Btu × 1.589 873 E−01 =m3 If MSA corrections are applied to MWD for computing true azimuth from mag. this will not com. However.896 444 E+03 =N drillstring interference is present when cluding reduced collision risk. Once an IFR model eV × 1. Implement. effective at identifying and correcting ft2 × 9. it is reasonable to assume that well spac.684 520 E+00=MJ netic field.233 489 E+03 =m3 control for magnetic MWD surveys. the largest sources of MWD error are hp-hr × 2. overlap zones. The error error sources inherent to MWD mea.957 353 E+01 =cm3 of the individual BHA components. aeromagnetic data that capture crustal dyne × 1.0* E+00=Hz of the EOUs dramatically (see Fig. random.013 250* E+05 =Pa described by the error coefficients for model and drillstring magnetic interfer.S. Because a large amount of uncer- the MWD tools inside nonmagnetized tainty can exist in wellbore positioning.0* E+00=Mg code assumes that a certain magnitude of ing practice offers multiple benefits. ton × 9. the MWD tool ing IFR and MSA as a standard survey. effectively reduced.048* E−01 =m error coefficients for the bias and scale to raw survey measurements can be very error sources. Using local IFR magnetic models bbl × 1.602 19 E−19 =J fectively decreases the magnitudes of the is available. magnetic anomalies. Uncertainty in the well- psi2 × 4. reservoir models that will maximize re- knot × 5. MSA is of MWD surveys. It is wellbores lead to unclaimed volume and psi × 6.071 847 E−01 =Mg components. applying MSA corrections ft × 3.7* E+10 =Bq model.589 988 E+00=km2 is ideal to place the MWD tool as close to understand production characteristics stokes × 1. × 2. The reduction in magnetic in. 1).sor errors and magnetic interference.831 685 E−02 =m3 greatest contributor to MWD azimuth string magnetic interference and poorly °F (°F−32)/1.0* E+00=Mg computing the EOUs.448 222 E+03 =N MWD tool.5/(131. ksi × 6.0* E+05 =Pa biases and scale factors of each sensor.8 =K and mud motors is often magnetized by tablishes a foundation for higher-level gal (U.290 304* E−02 =m2 Magnetic drillstring interference is the systematic errors attributed to drill. Thus. such as sliding through cas. As a result.894 757 E+03 =kPa drill collars. bar × 1.0* E−01 =nm model makes assumptions about the ex. tonf × 8. kW-hr × 3.0* E−02 =mN This result is achieved because MSA ef. particularly effective at identifying and Comparing these error residuals across removing that type of error. in.046 873 E−01 =ha est level of lateral accuracy and quality ciated with wellbore trajectories comput- acre-ft × 1.144 444 E−01 =m/s terference can be reduced by mounting covery. Magnetized BHA components will It is ideal to place wells as closely as in.451 6* E+00=cm2 disturb the natural magnetic field and possible to the planned well paths be- in.2 × 6. Conclusions acre × 4. IFR models use locally acquired cycles/sec ×1. °F (°F+459. ence. in.6* E+03 =C The standard MWD error is modeled This uncertainty comes from numerous using the MWD tool code.055 056 E+00=kJ surveys in conjunction with using an IFR netic azimuth should be the first step to. Å × 1. then the MWD+IFR1+MS tool ward improving the accuracy of MWD cp × 1. the error may magnetic-interference error coefficient. Significant positional uncertainty is asso- acre × 4. the largest of which are in.0* E−03 =Pa • s code can be used. Once the systematic error is the magnitude of the corresponding axial The list below includes SIŒmetric identified for each sensor. MWD+IFR1+MS tool code accounts for SI METRIC atic error from gross. consistent from survey to survey.609 344* E+00=km ponents as well as on the pole strength bons in the reservoir. surements. The steel in drillpipe. potentially leave unproduced hydrocar. Inaccurately placed oz (U.046 873 E+03 =m2 nation of IFR and MSA provides the high.535 924 E−01 =kg terference is dependent on the length of This creates the risk that wellbores not mL × 1. The combi.

installing and maintain. BP. This regulatory that zonal isolation and well integrity ing the cement barrier and well integrity attention compels us are achieved.onepetro. Standards and Knowledge Development Manager. SPE 172937 Achieving Cementing Gunnar DeBruijn. et al. Schlumberger Is zonal isolation provided by cement? In the last several years. we work to provide energy from 1906. with the Amer. In the last several years. effective techniques. and indus- standards for cementing. least one barrier in a well and is a com. et al. TECHNOLOGY FOCUS Cementing/Zonal Isolation Gunnar DeBruijn. This regulatory attention compels at OnePetro: www. ReservoirFocus. He Development by Pungki Ariyanto. are part of our social license to operate. Cement including wellsite observations during to a regulation or industry parameters are typically included in cement placement. mostly in cementing. Baker Hughes. ing and well-integrity initiatives. and society. we as an industry have been proud practices. tinue effective techniques. A quick search on the wide. tions. operations. industry standards. sions at technical conferences for the have been updated and rewritten world. His current focus is on training SPE 175237 A Decade of Self-Sealing- and competency development for the worldwide cementing Cement Technology Application To population. we can point barrier achievement.com. In every jurisdiction. dence in zonal isolation and well integ- SPE has also included cementing ses. These enhanced for oil and gas wells. and nent in providing zonal isolation and ly improved cementing practices. evaluation methods provide confidence As an industry. Shadravan. and devel- sion of zonal isolation and well integri. us to double-check our practices. We comply with regula- There is a long history of industry develop technology where tions. Cement evaluation.133 results. Technology is also focused on improv- ponent of the barrier envelope or barrier worldwide. SPE. well integrity (cementing). Recommended additional reading back to 1945. SPE. 88 JPT • MAY 2016 . regulations have been op technology where improvements ty because cement typically provides at updated and rewritten are needed. well integrity. con- Cementing is central to the discus.org. improvements are needed. JPT last half-century. pressure tests. and regulations and included as part of the standard that affects logging techniques. stakeholders. holds a BS degree in mechanical engineering from the University SPE/IADC 167922 Intermixing of of Alberta and has 26 years of experience working in the oil Cementing Fluids: Understanding Mud industry. dating affects drilling and cementing opera. In every ing verification of cement placement and system during well construction and the jurisdiction. As an industry and as SPE profession- Since the first use of cement in oil wells in to double-check our als. is standards and knowledge develop. continue wells that use cement as a key compo- that we have established and continuous. are part of the well- permanent-abandonment requirements drilling and cementing integrity equation. DeBruijn has worked in North Displacement and Cement Placement America and in deep water around the world supporting cement. by Zhongming Chen. try best practices and continually ican Petroleum Institute establishing update technology that instills confi- the first cementing standard in 1948. Improvement in Horizontal Tight-Gasfield ment manager for Schlumberger. we can point word “cement” in the SPE OnePetro to a regulation or industry standard that database yields 21. DeBruijn serves on the JPT Editorial Committee. et al. operational phases of the well. He can be reached at Ensure Long-Term Well Integrity by Arash gunnar1@slb. regulations rity for our industry.

22 April. the X-ray transparency is in the tests. Casing Experimental Setup Copper-rod base Copper rod The new laboratory setup presented in Oil drain this work allows pressurization while maintaining the capability to perform a Fig.New Approach Tests Cement-Sheath Integrity During Thermal Cycling W ell cement is placed into the annulus between casing and formation to provide structural support Casing pressure port Cement pressure port and zonal isolation throughout the well Cement-pouring life cycle. and Sample Preparation and confining pressure (around the which has suitable radiolucent character. Moreover. SINTEF Petroleum Research. setting and cyclic tests. the complete paper is free to SPE members at www. exposed to 66°C (cement-curing and S. sleeve provides room for the installation ◗ Cell is X-ray transparent. sion sensors and thermocouples.” by J. A new laboratory setup is designed pressure port Annulus to allow visualization of the development (cement) of possible leak paths throughout the cement sheath when exposed to pressure- Cell sleeve and temperature-related varying loads. 1—Cement thermal-cycling cell. ditions. For instance.org/jpt. Bergen. surized cell and compare the thermal- ◗ Maximum pressure is set at tenuation. prepared for 2. “Cement-Sheath Integrity During Thermal Cycling: A Novel rock. At ambient pressure. and T. detailed study of the creation and prop- agation of cement-sheath failures upon allowable temperature range is set The pressurized cell has the potential thermal cyclic loads. of paper SPE 173871. ◗ All components of the cell can be ments and to test diverse wellbore con- The applied formation materials reused for several test samples. lease pressure from the cell. operators in the ports and other Rubber measurements sleeve North Sea have been concerned about the ability of the cement sheath to maintain Rock sealing integrity because of the increasing number of reported failures in mature Confining- wells. The material also provides a cycling resistance of two well sections. This was achieved Testing Protocol pressure inside casing on cement by constructing the cell from aluminum. to accommodate other types of measure- The cell is shown in Fig. and temperature). SPE.spe. or perform the tra. cement is poured by been peer reviewed. Vrålstad. Norway. such as acoustic emis- inside the casing) during cement tomography (CT) scan. the casing. between −1°C and 150°C. between the rock and the surrounding are specified as follows: tion of leak paths without the need to re. The testing procedure for each sample is presented here: This article. SPE. thermal loading. while the lightweight cell to facilitate handling. casing eccentric- were Saltwash North sandstone and ity and mud filter cake may be included Mancos shale. Saltwash North sandstone and Mancos shale. Norwegian University of Science and Technology. In particular. contains highlights 1. Todorovic. Sangesland. J. pass toward the test sample with little at. Typically after 1½ hours of heating the 2015 SPE Bergen One Day Seminar. De Andrade. approximately 35 bar. 1. or remove of additional measurement tools during ◗ Temperature is controlled (from the internal test sample for a computed. and cell components are Approach for Experimental Tests of Cement Systems. Nevertheless. The paper has not the cell. SPE. ditional invasive method of cutting the test ◗ There is independent control of sample cross section. SPE. The aim of the current work was to intro- rock) during cement setting and istics and allows the radiant energy to duce the testing protocol of the new pres- cyclic tests. gravity into the annulus through For a limited time. JPT • MAY 2016 89 . the annular space Some of the current features of the cell important because it allows for visualiza. written by Special Publications Editor Adam Wilson.

initiate at and propagate from locations the cement sheath. has not been significant for any sample. most prevalent failure mode found along Heat is transferred by conduction from By comparing the leak-path volumes the cement sheath. were subjected to 10 thermal cycles. the samples are of cement/casing and cement/formation. Bonding percentage is calculated by sign and casing centralization. The sandstone samples do not correspond cement sheath. The cell is CT scanned as many being in direct contact everywhere. geometry. Thermal Cycling. Even though the ce- tion on the size. whereas the effect of vection from the system to the surround. create well-known and uniform tempera. The cell is cooled to ambient sample was investigated by CT at its ini. typically within 2. these failures with a lower but still signif- Discussion icant rate. Cement-Job Quality. the copper rod and then toward the sam. to propagation of shear failures toward element simulations were performed with jacent debonded areas and cracks/voids the rock. debonding are less significant. the relatively initial and post-cycling sample analysis. The area of this sur. This means that 100% cling found from both pressurized sam- executed. where voids existed initially. cracking seems to be shear (compres- heat is nearly radially transferred to the es. Furthermore. temperature has not cement debonding and cement/formation ated from initial voids along the casing. more severe for the sandstone sample. only a Debonding between cement and for- conduction process among all the constit. contact between the surfaces. A few ten- pipe/cement/rock sample through a thin the most significant failure mode when sile radial cracks were found in cement oil layer. Casing/ sheaths of samples and seem to be gener- In this study. Most of the failures were found to livered the largest detrimental effect to plexity of the transient model. larger and continuous debonded areas. JPT 90 JPT • MAY 2016 . been experimentally monitored at the ce. that propagate tangentially from the cas. the cement-sheath Monitoring by CT Effect of Hydrostatic Pressure on damage appears to be more severe for the In order to obtain detailed 3D informa. tial voids along this interface that formed heat transfer from the thermal platform to ing toward the rock. larger increment of cracks in the sand- To investigate the effect of a single age. Thermal-cycle profile and number face is further divided by the total avail. The for cracks and the bonding percentag. Pressure around the rock and on the ture distributions for CT scanning. thermal cycling. in order to reduce the com. the adhesion to the formation. The main origin of a thermal plate into the copper rod. it is clear that crack propagation is sive) failures for both samples. In the calculations. entirely in initial status. numerical simula. the subsequent 10 thermal cycles spread ing environment was also considered. with fairly clean microan- cement is increased to 35 bar. In addition. thermal-cycling loads are applied. most of the failures upon thermal cy- of repetitions are programmed and able bonding area. The cell is disconnected from the reveal which sample defects arise during achieve a cement-sheath condition similar hydraulic system and then placed on thermal cycling and which were initially to that expected from a wellbore condi- a CT scanner for visualization of the introduced by the cementing procedure. while maintaining the adhesion vulnerable to failure propagation upon cement-sheath failures. The first thermal load de- nitrogen gas. has been the result of linking between ad. Heat transfer was estimated as a stone sample. Each cement/casing bonding appears to benefit 5. bonding corresponds to the surfaces ples have been initiated at and propagat- 9. with cracking being the Thermal-Cycling Details their volumes to the total annulus volume. CT scanning is applied for presence of pressure seems to aid in ac. the inspection of 3D reconstructions. casing bonding. Cement/casing and sandstone sample. ures were found along the cement sheath. These interpretations are the result of ple and all cell components has been con. with effective cement-placement de- cement-sheath defects. while ed from initial defects within the cement times as required following Steps 4 0% bonding means that there is no direct sheath. as well as to links between ini- commercial software. Therefore. Heat con. few tensile radial cracks were seen to mation and cracking increase upon ther- uents of the test. commodating cement volumetric shrink. thermal cycles. Several of these fail. temperature (approximately 16°C) tial condition and after the first and 10th the presence of hydrostatic pressure dur- while pressure is kept at 35 bar. led to a critical situation of poor cement/ 3. sidered. Another interest- maintained for 5 days to cure the Both sandstone and shale rock samples ing observation is that the condition of poor cement.5 to 3% for Portland stone suggests that the sandstone is more thermal cycle or consecutive cycles on G cement. tion. Failures propagate more rapidly through 6. For both samples. 7. ports that are closed immediately taken to room temperature in order to The sample cured at ambient pressure afterward. Such a comparison can ing the curing process is recommended to 6. including the oil film and propagate from the casing toward the mal cycling. debonding between ce- performed to estimate the temperature periments. The cracks/ in the cross section than in the longitu- voids percentage is defined as the ratio of dinal direction. although Debonding between cement and casing ment sheath. tions of transient heat transfer have been For the thermal loads applied in the ex. rock. However. 3D finite. for each sample. although with greater amount in the sand. and location of cement/rock bonding has been enhanced ment sheaths obtained in the shale and the cracks and debonded volumes in the especially by hydrostatic pressure. Pressure and temperature are Results integrity of this sample. the increment in debonding ment and formation appears to be related changes through the sample. It should be noted that 8. The cell is coupled again with the finding the surface of direct casing/ laboratory setup to prepare for cement and cement/formation contact Cement-Failure Mechanisms Upon subsequent thermal cycles. nuli that disable the initial cement-sheath 4.

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reduction in drag force can also be seen hierarchy was then designed. R. will make mud removal impossible. above planned top of cement. Centralizers can engineered placement method ensured Field and Design Evaluation keep the casing off formation. before cementing. Texas. washouts. cement placement. based mud (OBM) was used throughout job. including self-healing. An Integrated Approach to Solving Sustained Casing Pressure in the Cana-Woodford Shale M any wells in the Cana-Woodford shale suffer from chronic sustained casing pressure (SCP) because This paper presents the methodolo- gy and specific considerations that were taken into account to integrate all known Stage-to-stage isolation provided from cement around the entirety of the casing is important to ensuring virgin-reservoir of poor cement-sheath bonding. Welty. on future slurries. SCP can bore stability in the shale formation. liquids. Tatum. Schlumberger. one cen- tralizers effectively. Vaughan. It is recommended to M. Without proper casing centraliza. have high yield points to ensure cut- sues appearing after stimulation. and for pre. written by Special Publications Editor Adam Wilson. This can also have that can help differentiate channels. but this high-yield presence of SCP is an indication of a path tralizers in horizontal wells is not a com.D. Cement place- The zonal isolation is needed for stage. prepared for the 2015 SPE use an ultrasonic-based logging tool that Well Integrity Symposium. lateral to a few hundred feet above kick- comprehensive cementing portfolio that All these factors can affect the ability to off point (KOP). with the greatest number of is. consideration for a successful cement logs and SCP both before and after stim. The operator placed empha- One of the major operators in the Cana. A thick be defined as the presence of pressure in mud with high yield is a requirement the annulus of nonstructural strings. of a mud before a cement job is critical.g. Cementing Evaluation. but one of the more tralization can be achieved in horizontal significant is to provide zonal isolation.000  ft contained layers of contingency. The use of cen. Given the nature of the tight For a limited time. A and an optimized frictional pressure Woodford shale. Using information and causal learnings from stimulation and preventing communi- simulation software. contains highlights mechanisms to provide feedback into of paper SPE 174525. sis on controlling these factors to help Mud Properties. tion. lus for many reasons. casing through an optimized frictional can have a significant effect on cement. Landry. 92 JPT • MAY 2016 .. provided a azimuthal gradients. 2–3 June. Several factors must centralization schedule on these wells. and gas should be used be- cause these high-resolution images can provide causal information on failure This article. Typical horizontal-drilling muds ulation. zonal isolation in the challenging Cana.spe. isolation the hole. M. The paper has not been can measure acoustic impedance (AI) as peer reviewed. and modeling software. which are typically in a placement of cement around the pipe dustry. and evaluation approaches exist in the in- er formations. This multilayered placement results. Introduction efficiently. and D. an effect on a stimulation treatment. “Bridging the Gap: An Integrated Approach to Solving Sustained the design to determine what to change Casing Pressure in the Cana-Woodford Shale. will not be achieved. The by running centralizers. The cement is placed in the annu. The operator ran an aggressive casing- pressure hierarchy. approach using mechanically optimized be examined when evaluating a wellbore The typical schedule was to run three slurries with different mechanisms of (e. remove cuttings properly. Thomas. effective cen. Drilling mud is a key Woodford field experienced poor bond improve the likelihood of success. ments in casing hardware technology although lowering the yield point too ditions. much can make the mud unstable. sol- vention of hydrocarbon flow to surface. dogleg severity. From KOP to 3. factors in a well. With improve. to place cen. nificantly lower-stress environment. mud can be detrimental to mud remov- of flow of hydrocarbons to the surface. tings removal and hole cleaning. hole size. An oil. A high-resolution logging tool lower-stress environment. Several of the fracture treatment from shallow.org/jpt. a minimum. wells. The Centralizer Program. the complete paper is free to SPE members at www. mon practice because of a perception al during cementing and can obstruct SCP is typically caused by poorly placed that they might impede the ability of cas. thus re- complete cement coverage around the Borehole Geometry. ids. SPE.L. Drilling practices ducing the points of contact. such as stimulation con.” by G. the openhole section to maintain well. centralizers per two joints of casing in the action. centralization of logging to design a system to provide cation between stages with the now sig- the production casing was evaluated. curve build rates). the casing will lie on the low side of ment was evaluated with a wireline tool to-stage isolation in fracturing. Proper conditioning cement or by not taking into account all ing to reach the bottom. This contact with the wellbore to evaluate the cement bond. and to remove mud tralizer per joint of casing was run. USA. Galveston.

the after stimulation in the Cana-Woodford focus of the design in regard to mud re. especially A simulation was performed on a conven. and slurries and the spacer compo. Hav. The objectives of this and during the life of the well. but. This also dictates the seen during fracturing treatments and +1. would better address the stresses that are Let SPE know. to produce a good self-healing cement slurries are a the centralization was determined to be bond log. vital solution to SCP. Through simulations. SPE Benefits ing. allowed an effective solution to JPT • MAY 2016 93 . greatly improve the ability to place ing or very similar AI values of different rameters to simulate a fracture stage and critical cement barriers strategically. ◗ Evaluation of cement with high- resolution tools provided key Post-Fracturing SCP. SCP and drove engineered solutions it was almost always seen after fractur. and the spacer composition are all con. Poisson’s ratio. tional slurry. time. ology of the field. error methods. An MRF was proposed to ◗ At the time of the writing of this and fracture gradients dictated that the achieve effective OBM recovery.spe. modeling tools to predict cement Discover the possibilities. and to prevent pre. The pore completion SCP. of third interface echoes to evaluate surance in barrier evaluation. design were to account for OBM recov. The results showed that the ◗ Rheological hierarchy must be cement sheath would fail in compression evaluated on a per-well basis Proposed Solution and traction and form a microannulus. as the fluid transitions from casing section.952. with FA can allow for the analysis of both AI and FA provides increased as. evaluate the cement-sheath integrity in ◗ Use of an ultrasonic imaging tool ing independent high-resolution maps regard to compressional/tractional fail. to the issues. rheological properties of the fluid. Young’s modulus of for. and is critical when operating Log Evaluation of Mud Removal. the actual standoff achieved. lation software. successful at preventing SCP before and Member Profile sition. density of the slurry will see during stimulation fluids.972. Mechanically enhanced slurries and tributing factors. the density hierarchy becomes may occur during a stimulation treat. resulting SCP. The forces that a typical Cana-Woodford performance under expected http://www.org/ stimulation puts on the cement sheath conditions against the observed members/benefits are significant. by a mechanically enhanced slurry that proved because it is governed by the ge. effectively. cussed in this paper were shown to be Update Your ers. lation. temperature economically than did trial-and- slurries can have very similar AI values. The self-healing cement a horizontal orientation to a vertical ori. optimized as much as possible. poor mud removal. All This correlated to what has been seen on in challenging placement evaluations showed poor mud removal. Changing Your a major contributor to channeling and ment in the presence of hydrocarbons. and an analysis of these failure mechanisms on past wells forces must be completed by use of simu. the engineered approach optimum fluid-density hierarchy could is a high-solid-content fluid that does not had achieved a 95% success rate not be achieved. Regardless of insights into the root causes of the whether SCP is seen before fracturing. A cement design that could environments. and ◗ Aggressive centralization schedules low-impedance slurries better. at eliminating SCP in the Cana- concern in the horizontal section in re. The MRF paper. account for the stimulation treatment ◗ Cement-slurry designs must take count when evaluating the ability to re. the mud. A solution would have to take into ◗ The engineered approach using account how the well will be stimulated. Parameters such as treat. mud-recovery fluid (MRF). fluids and cements in the annulus. Proposed Design. into account the stress that cement move mud. To distinguish between the fluids and mation and cement. Density is not a major have significant cementitious content. changes vs. time. This would be followed by a self-healing Woodford over the past 2 years.9393 rates that could be achieved because the during the life of the well. had to be proposed.and post.org/ moval will be on rheological properties sulted in the success of this project: members/update and spacer composition. JPT gard to the ability of one fluid to displace cement slurry placed in the casing-to- another. http://www. cap was in place to close the fractures that entation. having a thermal conductivity must be gathered can be used in horizontal wells log that also measures flexural attenu. The self-healing cement cap was followed Address? Density hierarchy could not be im. The following attributes have re. be developed faster and more spacer. spac. for evaluation in a stress-analysis simu. The only two Conclusion factors left that could be altered were the The process and methodologies dis- rheological properties of the mud. in lightweight or contaminated cements. When designing a solution. ures and the formation of a microannlus. ery and mud removal.spe. shale. centralization. and centralization can ation (FA) is key when there are overly.pore and fracture gradients. and ment pressures vs. Several factors must be taken into ac. The software will use these pa. equivalent circulating density must be managed to prevent losses.

There are two parts to building a design procedure. along with the correct creep character- prepared for the 2015 Offshore Technology Conference Brasil. secondary creep. Thus. attributed to the existence of deviator. This paper uses a two-mechanism posed by salt creep and other operation. (Right) The deformed state of this known. Jandhyala. SPE. and J. Anjos. Rio de Janeiro. ment sheath. A validated creep model is used to mechanical integrity of a cement sheath. Hence.onepetro. sociated with salt formations are well. perience compression loads caused by creeping salts. their sequence. The closure is not to scale. a virgin open hole consisting of halite Drilling and cementing challenges as. necessary to verify the creep constitutive use of a typical example well from off- Design Procedure.org. Ravi. 94 JPT • MAY 2016 . This is because the creep rate of salt (red). The 27–29 October. and K. creep process because this is the domi- by comparing these stresses to the fail. it is necessary to analyze the thermo. Creep-Model Details. The type of failure of cement sheath de- world. the deviatoric stress cement design that includes evaluating on salt formations will lead to wellbore cement-sheath mechanical integrity in closure. written by Special Publications Editor Adam Wilson. ex- to a series of tensile and compressive tensional loads are likely to result in ten- loads whose magnitude depends sile failure. cement. In a typical well-construction on the size and relative position of process. Similarly. Halliburton. “Design Procedure for Cementing Intercalated Salt Zones. nant creep regime for downhole applica- ure properties of the cement. scenarios. Reproduced by permission. in the presence of inter. Design Procedure for Cementing Intercalated Salt Zones W ells often require being drilled through and cemented across salt formations. The complete paper is available for purchase at OnePetro: www. This deformation is presence of intercalated salts. strengthen the analysis predictions. failure requires analyzing a longitudinal creep law to describe the secondary- al loads to the cement-sheath integrity wellbore model. Analysis is then used to known as creep. To provide Details tions. This work demonstrates pletion fluid. The outcome of the analysis is tensile failure of a cement sheath should three types of creep regimes—prima- the stresses experienced by the cement be investigated in addition to shear fail. compare the response of two cement sys- To determine the role of creep in the tions exert extensional loads on the ce. In many parts of the relationship with data from experimen- tal creep tests. The cement sheath thus will ex- intercalated salts. One of the more significant of when multiple salts with different creep wellbore after a finite exposure time these is the plastic deformation of salt rates are intercalated. the compression Fig. 1 shows an ex. In such shore Brazil. and the displacements are magnified for a structural model of the well-construction better view.K. istics of the formations selected. second is building the analysis proce- dure that reflects the loads exerted and Copyright 2015 Offshore Technology Conference. Evaluating for both shear and tensile creep. It is possible to quantify the risk ure. presalt. compression loads are like- intercalated salts subject cement sheaths ly to result in shear failure. the in-situ stresses attributed to different salts. 1—(Left) An axisymmetric view of Introduction load is not uniform along the axial direc. contains highlights is building a geometric representation of of paper OTC 26310.R. This analysis shows that For example. salt types. Petrobras. it is The design procedure is explained by presentation of the creep equation. However. tachyhydrite (yellow). tion. to a predetermined mud weight. and tertiary sheath. increasing creep rate with increasing such as drilling mud. the salt/salt-intercalation junc. the possibility of ent forms of creep models covering the tionship. The first This article. Please see the complete paper for a an accurate quantification of the risk.” the pertinent part of the wellbore model by S. The variation is severe and post-salt (green) formations. and com- depth. tems. calated salt formations. ample analysis of openhole closing in the ic (shear) stress. salt sections consist of multiple pends on the type of loads exerted on it. ry creep. Fig. SPE. The paper has not been peer reviewed. The salt/salt-interface overburden are greater than the hydro- effects dominate the general tenet of static pressure offered by wellbore fluids. varies with depth. There are differ- process using the creep constitutive rela.

930. corresponds to no variation compared Cynthia Thompson.20.org creep rate from the temperature. Suite 1075. Book Sales Phone: 1.952. Sub-Saharan Africa Office 1st Floor.7299.952.3000 Fax: +60. Phone: 1.3030 Email: spekl@spe. In each of these stages. London W1W ment System 1.952.457.952.org and duration of each stage during well dure is the central objective of this work. twhipple@spe. swilson@spe.9393 Fax: +1.972.456.3.. no loading). The final stress state from the analysis is performed and the results Section Service a stage forms the initial stress state for are compared for an optimum model Phone: 1. Both shear and tensile books@spe. 40/44 Clipstone Street. Cement System 2. 2.spe. ◗ Obtaining correct salt-creep 5DW UK Tel: +44. the ten.4.952.457.org Phone: 1. Ce.952.3164 Results systems perform relatively better Email: spedub@spe.800. intercalation junctions play a critical role eMentoring Program dependent creep properties and by subjecting the cement sheath to a Sandy Wilson. System 2 at most sections.800. chartley@spe.972. Richardson.org exhibiting the fastest creep rate. Phone: 1. The Gardens South Tower Mid Valley City. sizes and salt-layering patterns.. North Africa. The well capacity. Therefore.org conditions is made in terms of remaining intercalated creeping salts.952. This est-creeping salt.5800 Fax: +971. The entire salt sumption. with a linear-elastic-behavior as- SPE Online www. Address Changes. 3 Bld. Phone: 1. jdonnelly@spe.54 Email: spemos@spe. The important aspects of the design pro.9394 ◗ Identify the contiguous layers es.20. Russia.org with long sections of halite. that section Phone: 1.7299. with the initial situation (i. elastic cement Dubai. So.972. AB T2P 3T3 Cement-Systems Details. TX 75080-2040 USA formation.1114 ◗ Identify the tops of each formation.713.org in-situ stresses.9451 sections@spe. 127055 two cement systems analyzed for the well in the presence of both single and Tel: +7.6888 formation above and below to ward more than other sections.9343 analysis procedure requires the sequence Because developing a design proce. the general behavior Subscriptions Phone: 1.713.6863 or 1. JLT. Caspian. realistic model size are two critical Tel: +1. This hydrite/nontachyhydrite junction being Phone: 1. Because of the high resilience of Ce.org wellbore pressure.org chanical properties of two cement sys.456. Fortune Tower.456. The typical construc. add a small drite layers will be pushed radially in.org bottom support.713. formation.9435 Email: spedal@spe. the thermal form better than Cement 2.org Analyzing the entire salt zone is compu. Distinguished Lecturer Program ◗ Determine the average temperature ment System 1. Professional Development Services Tom Whipple.org Building Analysis Procedure. Box 215959. Phone: 1.6863 or 1.972. Membership Information.403.2182.495. Copyright Permission ◗ Calculate the thermal averaged It can be observed that salt/salt. swilson@spe.972.org Phone: 1. Phone: 1. Malaysia there is an axial variation of stress and as follows: Tel: +60. TX 77042-3455 USA such as tachyhydrite. cmumba@spe. cementing.9595 Fax: +1. Stacie Hughes. The procedure to modes of response should be compared Continuing Education/Training Courses identify the geometric model is as follows: because of the axial variation of creep Chiwila Mumba-Black.9393 on cement. and South Asia Office based slurry used as a reference.9394 forms the salt section of interest. the cement sheath.2182. jdonnelly@spe. cthompson@spe.6863 or 1.713.952.972.4. Tested me. is a salt-saturated slurry.5470 Email: specal@spe.6816 ing.779.972. overburden effects when using a Houston Office 10777 Westheimer Rd. The second sys.org Phone: 1. Building Geometric Model.org the following stage. UAE Tel: +971.O. It is a measure of the residual being analyzed had small sections of capacity of the cement sheath available SPE SERVICE DIRECTORY tachyhydrite and anhydrite intercalated for use. and tems are compared. is a freshwater. 59200 Kuala Lumpur. The first system.3300 Fax: +44. Asia Pacific Office gitudinal nature of the wellbore model.org by the contamination of complex salts.930. creeping salts.457.800.6816 Peer Review forms the geometric model. Russia..952.org should be identified. of cement sheath adjacent to tachyhy. combination of shear and tensile stress. pressure testing.org Middle East. and the Summary Tel: +1. Insurance Program Sandy Wilson. For example.972. the remaining capacity is Cindy Hartley.952. JPT JPT • MAY 2016 95 .952. Threeways House. Houston. As a result.779. subjected to tension. finite-element model.268. 31st Floor. ◗ On the basis of the results of a Office 3101/02. shughes@spe.org casing will change. JPT/SPE Website Advertising Sales ◗ To this salt section. Regard. Because of the lon. Americas Office and structural loads experienced by the 222 Palisades Creek Dr. cedure and the comparison exercise are Level 35. cmoritz@spe.. This will JPT represent the overburden and result in the cement sheath at the tachy.952. respectively.org in the order that they are defined: drill. The sile remaining capacity will reduce. aspects for accurate predictions.04.952.972. cement-sheath mechanical integrity Tel: +1.9393 service@spe. Moscow.972.972. Email: spehou@spe.org tion.457. tachyhydrite is the fast.9452 construction.457. in the presence of intercalated Europe.e.713. size.5454 Fax: +1.4216 tem. John Donnelly.9370 tationally prohibitive. A remaining capacity of 100% Awards Program section is approximately 2020 m thick.3309 the pumpability of which is not affected properties and accounting for Email: spelon@spe.9393 of interest that forms the geometric model linear behavior. Calgary.org A comparison of the performance of the than conventional cement systems Moscow Office Perynovsky Per. P. Craig Moritz. waiting less of model size. a critical section 0% corresponds to the onset of non. Suite 900–521 3rd Ave SW. and produc. rate.403.972. Phone: 1.3. It can be interesting to examine SPE Website tion process involves the following stages the parametric effects of different model John Donnelly. Lingkaran Syed Putra.9304 and in-situ stresses for each significantly higher than that of Cement Dues. service@spe. will not change and Cement 1 will per.972. running casing. ◗ A systematic design procedure Canada Office was established to estimate the Eau Claire Place II.

Indiana. From 2008 to 2011. USA ROBERT TERRELL. He is responsible for 3D data processing and overall operations SEGUN OMIDELE. He was also current oil prices nor the minimum value established by the author of several SPE technical papers on topics such as the minister of finance mattered in the second auction. USA ager at Aquatic Engineering and Construction and will focus Nelson Ed Williams. Williams. He was 42. he was senior vice president of exploration and production at He is a member of the American Association of Petroleum Allied Energy Corp. and European Associa- pointed president of Cepstrum Geophysi. Texas. SPE. 2014 SPE Applying the Best Technologies in One in September last year. ers of the agency by Mexico’s president at the time. and Mexico. was the president of the SPE Stanford University student tutional changes charged CNH with regulating. Wichita Falls. BREWER. PEOPLE ROBERT J. com. SPE. water project evaluation at the secretary of finance. process. Rangel-German 2013 by Mexico President Enrique Peña Nieto. …neither the ing a Successful Implementation Workshop. Texas. USA Cy A. adviser to the undersecretary of hydrocarbons at the secre- Rangel-German was a thought leader in Mexico’s energy tary of energy. He was previously its chief operat- rine surface and borehole seismic data acquisition. ecutive roles in Mexican government. and interpretation. Surprise. Brewer was Corp. holders. he held senior technical and Geologists. SPE. 96 JPT • MAY 2016 . He was appointed CNH commissioner for a second term in A member of SPE since his student days. has been appointed regional man- Thomas E. Berger. Brewer holds business development and new ventures. He was chief technical died 23 March. SPE. which brought about constitutional changes in was to write the first charter for CNH in 2005. management positions with Shell companies in Nigeria. including the 2016 SPE Mexico tion activities in Mexico. Before that. Canada. focusing on sales management ed chief executive officer at Erin Energy and business development. Health. and has played lead roles in projects pany in 2011 as senior vice president for in the US Lower 48 states. He also held 2013 to open the country’s oil and gas market to private in. and 2013 SPE “We believe that our mandate of obtaining the best con. On the success of the second tender in Round Conferences. Omidele holds a master’s degree in petroleum engineering from the University of Hous- ton and is a graduate of Harvard University’s advanced Member Deaths management program. Calderón. based in Houston. where one of his early assignments reform. Before the CNH appointments. all in petroleum engineering. Society of Petrophysicists and Well Log Analysts. Berne. SENER. Schaadt. UK. he commented in a JPT article. It heavy oil reservoir thermal simulation and economic evalua- seems to me that materiality ruled the tender. Omidele joined the com- ing. Robert C. a BA degree in geology from Bowling Green State University. the role of general director for hydrocarbon. EOR—Technical and Managerial Framework for Engineer- ditions for the Mexican state was achieved. and auction last December was even more successful with all temperature-induced sand consolidation. chapter. and vestments and technical expertise to increase production.” The third tion. overseeing. tion of Geoscientists and Engineers. has been ap. when consti. Rangel-German held a bachelor’s degree from the Uni- With technical expertise in petroleum engineering and versity of Mexico. Society of Exploration Geophysicists. and Sustainability Symposium. cal. and master’s and PhD degrees from experience from Mexico’s finance and energy ministries. production forecasting for underdeveloped fields. with National Hydrocarbons Commission his appointment as one of the five founding commission- (CNH) and one of the key members be. has been appoint- functions. Rangel-German made significant contributions to the suc- missioner of Mexico’s regulatory agency cess of the reform. He continued to be an active volunteer and served and evaluating all hydrocarbons exploration and produc. He has In Memoriam EDGAR RANGEL-GERMAN. Safety. Arizona. on several SPE committees. Extremely Sensitive Environments Workshop. ing officer (COO). Denton. Stanford University. CNH oversees the tenders the country is offering under 2014 and 2016 SPE Latin America Heavy and Extra Heavy Oil the reform. His term with CNH began in 2009. 25 onshore blocks offered being awarded. Felipe hind the implementation of Mexico’s re. He has experience in land and ma. electricity. He will assume the role in May after previously region business development the company’s annual meeting of share- manager for Baker Hughes. and the US for more than 28 years. Environment. USA on growing the company’s business in the Americas. he held other ex- cent energy reform for hydrocarbons.

UK. Elkins contributed to the Global Power. share with us on @SPE_Events technology pioneers during their lifetime.org. Technology Conference. more than 30 years of experience in the onshore and offshore oil and gas industry. nology in 2003. Representing NOV. nology Pioneer in the Offshore Energy Center (OEC) Hall of Fame in 2003. View a list of available webinars at webevents. and directional ties globally. dent of operations and development and was promoted to Elkins joined Hydril in 1973 and served in a number COO in 2011. tive program at Stanford University. vice president. Whitfield holds a BS in petroleum engineering Technology Facilitator that led to the development from Louisiana State University and is a graduate of the execu- of the continuous circulation system (CCS) tech. and was included as a Tech. Elkins is recognized as a subsea innovator and con- tributed more than 53 years of professional service. company for 6 months. and subsea products. motion leaving your desk. The 6-ft radius technology that he devel. and operational offshore drilling equipment and technologies. depths right from your desktop with SPE Webinars and Online In 2010. an industry pioneer in the US. tive vice president of Cobalt International nologies. He was 81. with a focus on subsea operations. western operations. power and He was part of important industry innovations in water. Brazil. wellbore pressure controls. Elkins was a contributing author of books and train- ing manuals on offshore technology. he led various committees of the OEC’s Hall of Fame initiative and refined the process for recognition of industry and Connect. #SPEWEBINARS JPT • MAY 2016 97 . Canada. Terrell holds a degree in international 18 March 2016. For the first time since rotary drill- ing was introduced. He joined Cobalt in 2006 as executive vice presi- drilling technology. includ- ing SPE Production Engineering and SPE Drilling Dig deeper without & Completion. including senior vice president. ELKINS. died management positions. he was awarded Too busy to be away from the office? Take yourself to greater the Exemplary Service Award in 2005 by the IADC. management from Louisiana Tech University. He was a member of the equipment subcommittee of the task force that put together the International Associa- tion of Drilling Contractors (IADC)/Offshore Opera- tors Committee Deepwater Well Control Guidelines. He held multiple patents on BOPs. and a member of the drilling vessel and equipment committee for the IADC Surface BOP Guidelines for Floating MODUs. In later years. compensation. control duction operations and marketing activi- systems. Several industry studies and initiatives aimed to- ward improving the safety of deepwater operations benefitted from his knowledge and expertise. Join our industry experts as they explore solutions Achievement Award for Individuals by the Offshore to real problems and discuss trending topics. and president and general manager of Amoco joint industry project supported by UK’s Industry Netherlands. he was recognized with the Distinguished Education. He retired as di- rector of business development from National Oilwell positions in other companies.spe. CCS technology enabled drill- ing of a hole without interrupting circulation while new joints of drillpipe were added to the drillstring. at CDS Gas. holding business development. Energy will resign from his position in June oped for subsea wellhead guide bases and blowout and will continue as a special adviser to the preventer (BOP) stack guide frames improved deep. Whitfield has 41 water operations safety and became an industry years of experience leading oil and gas pro- standard. Before joining Cobalt. senior vice president of BP drilling. and HUBERT (HUGH) L. CCS also improved safety by reducing the likelihood of kicks. VAN WHITFIELD. He authored technical papers for SPE’s technical journals. Varco (NOV) in 2009. at ExxonMobil Saudi Arabia. COO and execu- focusing his work on building safe. For his specialized work in pressure control. innovative tech. SPE. He has In Memoriam experience working in West Africa. sales. he held several executive of executive positions for 2 decades.

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