OIL AND GAS FIELD DEVELOPMENT- PRINCIPLES

AND ECONOMICS
Prof. T. Kumar,
Dept. of Petroleum Engg.
ISM Dhanbad-( For internal circulation )

(A): DEVELOPMENT SYSTEM:

Oil field development includes the following:–

• Drilling of wells over an oil pool (well spacing) and order of their drilling.
• Control of movement of oil & gas to the wells by proper spacing pattern.
• Operating condition of production and injection wells
• Control of reservoir energy through gas/ water injection.
• Cost element based on the most economical withdrawal rate.
In other words decision is based on techno-economic aspects, where technology has to be
sound and economically viable.

RATIONAL DEVELOPMET SYSTEM

The development program may envisage various methods of pressure maintenance or be
based on the use of natural energy only. Accordingly, for one variant there will be a specific rate
of oil extraction, producing life and recovery factor.

The following basic point are considered for establishing these criteria-
i. The minimum degree of well interaction.
ii. Maximum recovery factor.
iii. Minimum production cost.
The maximum recovery factor, and minimum production cost etc. may not be achieved
every time. Therefore, the rationality of a development plan should be evaluated. A
rational development plan must ensure the prescribed production at minimum
cost with the highest possible recovery factor.

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Steps required for Rational Development Plan:-
The following should be considered for most efficient or Rational Development System
of Oil & Gas field development.
1. Identify the producing formations and determine the sequence of developing
i.e. giving the priority to the more proven and high productivity horizon.
2. Decide on the pattern of well spacing over the given area and order of drilling the
wells.

WELL SPACING PATTERN

Well spacing pattern can be of different types as follows:-
a. Uniform Well Spacing:
b. Parallel Well Spacing:
c. Closure spacing (denser pattern):
d. Out-step development system :
“Water drive is more efficient than gas cap drive.”
“Mobility ( k /  ) depends upon viscosity as well as permeability.”
3. Operating conditions of the wells: Establish operating conditions of oil producing
and injection wells by planning the amount of fluid withdrawal and fluid injection.
4. Control of reservoir energy: Control the reservoir energy balance by pressure
maintenance program by carefully using gas injection and/ or water injection.

WATER FLOODING
The following types are common-
a. Edge Flooding
b. Marginal Flooding.

c. Contour Flooding:
Various types of contour flooding are as follows-

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 i. Individual Contour Flooding:
ii. Block contour Flooding:
iii. Selective Flooding:
iv. Spot Pattern Flooding:
5-spot pattern, 7-spot pattern, 9-spot pattern (normal and inverted)

(B): BASIC PRINCIPLES OF OIL FIELD DEVELOPMENT PLANNING

Development planning is aimed at working out a guideline program for well drilling and oil
production. A development program is a project which provides the basis for the evaluation of
total expenses for field development and allocation of yearly investment and operating costs.
Data required for drawing up development programme are-
1, Oil & Gas reserve estimates:
Recoverable oil reserve –
A.h. (1 − Sw).Rf
Np =
Bo
Where –
A = Area of reservoir rock containing oil or gas. h = payzone thickness
 = porosity (fraction) Sw = water saturation = (1 - So)
Bo = formation volume factor. It is always greater than 1.
= Oil volume at reservoir condition / Oil volume at surface condition.
Rf = recovery factor
For depletion drive Rf ----→ 10 – 30%
For gas drive Rf ----→ 20 – 50%
For water drive Rf ----→ 30 – 80%

Shrinkage of Oil: As oil comes at surface, it shrinks because under reservoir condition oil is
always with gas dissolved which is separated on surface condition that results shrinkage of oil
volume.
Various data for evaluating reserve and characterizing the producing interval are as follows-

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 i. The Geometry of the formation: The structure, thickness, layering, communication
between layers and drainage boundary.
ii. Sources of Reservoir Energy: It should include exciting reservoir pressure,
possible drive mechanism (solution gas drive, water drive or gas cap drive),
supplementary energy requirement through pressure maintenance etc.
iii. Initial Reservoir Condition: Reservoir pressure, Permissible Bottom Hole Pressure
- SBHP: Shut in Bottomhole Pressure.
- FBHP: Flowing Bottom Hole Pressure: Bottomhole pressure corresponding to a
particular flow rate.
iv. Physical Characteristics of Rocks: Porosity, Permeability and rock compressibility
etc.
Darcy’s Law q = ( k. A ).( LP )

Where k = permeability of rock

Compressibility = Change in volume / volume of rock / P
Darcy’s law is applied to a porous medium of rock only. Order of rock compressibility is of
10-6 / psi
Unit of permeability is Darcy which is when q = 1 cc/sec. , A = 1 sq.cm. , P = 1 atm , L
= 1 cm , and  = 1 cp.

The dimension of permeability is L2.

v. Reservoir Fluid Properties: Formation volume factor (Bo, Bg), Fluid viscosity,
saturation pressure (with respect to gas), gas solubility etc.
vi. The formation piezoconductivity factor: Itcharacterizes the rate of transmission of
pressure in the formation and is used in investigating elastic properties of the
formation and fluid i.e. compressibility.

(C ): STAGES OF RESERVOIR DEVELOPMENT

i. Build up period.
ii. Pleauto production period.
iii. Decline period
iv. Development period.
During declining stage, the rate of water encroachment of the bottomhole zones
depends on the ratio between the viscosities of oil & water i.e. (o / w). Oil viscosity up to a
value of 3 cp gives better reservoir fluid displacement whereas more than 3 cp will tend to
have water through due to viscosity contrast between displacing and displaced fluid.

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GAS RESERVOIR DEVELOPMENT:

Specific features of gas field reservoir:

The viscosity and specific gravity of a gas are low, whereas it is highly compressible. Moreover
gas differs from oil in the commercial properties. The base reference value in planning the
development of a gas reservoir is the daily output, and the demand for the gas at the particular
time. Theplanned rate of increase of gas production from a given reservoir may be determined
by the plans for the construction of trunk gas pipelines and industrial plants.

Consequently a special feature of the development of a new gas field is that there is a
straight relationship in the producing system.
Reservoir -→ Well -→ gas pipe line -→ consumer
Characteristics of gas: The specific physical characteristics of gas must be taken into account
in gas dynamic calculations. Liquids and gases moving through the reservoir are, governed by
the same filtration laws. Because of its low viscosity gas in the reservoir is high mobile.
Therefore full recovery is a continuous process; particularly all of the gas could have been
produced through a single well. However, in view of the fact that both for technological reasons
and to ensure the stability of the reservoir rock it is necessary to operate the wells under back-
pressure, and also in view of the limited through capacity of the wells, as gas reservoir must be
produced through several wells to meet consumer demand.

Rational Development Plan for gas fields: As in the case of oil reservoirs, rational
development of a gas reservoir should be based on the principle of greatest economic efficiency
from the standpoint of national economy as a whole. Considering that the gas production must
fit the demand, it is very important in planning and development system to know whether the
gas will be used to meet local needs, or will be processed or delivered into trunk gas pipelines
for long distance transmission. Proper development in a large measure depends on the
practice, planning of gas consumption.

Development of Large Gas fields: The development of a large gas reservoir with high initial
pressure may be divided into two successive stages.

First period: when reservoir pressure is higher that the requirement of the gas trunk pipeline,
the reservoir energy should be used as the driving force in the long distance transmission of the
gas. In this case, the difference between the bottom hole pressure and the pressure of the head
of the trunk line will be equal to the pressure loss of the gas flow in the well and in the gas trunk
line.

Second period: when the reservoir pressure is not high enough for the transmission of the gas,
a compressor plant must be provided at the head of the trunk gas pipe-line. This is
economically profitable for the expenses.

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Production Profile: A constant or increasing output of gas may be maintained for a long time,
depending on the long term plan of consumption. In this case, the pressure in it will decline, and
the output may be maintained at the required level only by bringing in the new wells.

Decline Period: Toward the end of the productive life of the reservoir it may be possible to
maintain the required production only with a very large number of wells, which may become
uneconomic. Unless new wells are brought in, production declines, depletion conditions
eventually set in and continue until the pressure in the reservoir is nearly equal to the pressure
developed by the weight of the gas column in the wells commercial exploitation of the depleted
formation is then abandoned and the gas is used only for local needs.

Maintaining the gas Production Profile:

If the number of exploratory wells exceeds the minimum number of wells needed, some of them
may be temporarily shut or switched to produce from other levels.

The maximum output may be obtained by reducing the minimum the losses of pressure
in the reservoir, in the bottom hole zone. The reservoir should be brought in as perfectly as
possible by bullet perforation or by shooting, the bottom hole zone must be cleaned of remain
ants of drilling fluid and cementing, the reservoir should be treated with Hydrochloric or mud
acid or else formation fracturing may be used. Pressure losses in the well bore may be reduced
by proper choice of casing diameter.

The lower the pressure loss in the reservoir and the bottom hole zone, the greater is the
output of the well for a given pressure differential. Operation of the well at minimum pressure
differential prevents damage to the bottom hole and the encroachment of bottom water.

Control over Reservoir energy: The energy of compressed gas in the reservoir should be
utilized rationally. The design of the well, the choice of the diameter of the well casing and flow
tubing (if the latter necessary) and the treatment of bottom hole zone should keep the energy at
a minimum.

ECONOMICS OF OIL AND GAS FIELD DEVELOPMENT

In planning a reservoir development system factors such as well and rows patterns are
considered. The well spacing of one hectare per well in a non-homogenous solution gas drive
reservoir is known; whereas up to 60 hectares per well in a homogenous water drive reservoir
may be used. It is generally recommended to have a wide spacing in the beginning so that a
good idea of the reservoir is obtained and to finalize the spacing of the planned wells. In order
to select the final variant of development plan various alternatives should be worked out to
establish the one that offers the biggest economic and technological advantages. The main
factors for the reservoir development efficiency are as follows:-
i. The rate of development needed to meet the rational demand for oil & gas.

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ii. Oil recovery factor (ultimate oil recovery / original oil)
iii. Material &labour cost.
Rate of reservoir development:
Depending on the nation’s demand for the petroleum products the properties are set for
development of oil field. In this process higher capital expenditure is generally envisaged for
shorter productive life of a reservoir. Therefore the aim is generally to establish the optimum life.
The productive life of a reservoir is a function of the following:-
1. The planned rational rate of oil production increase.
2. Geological, technical and economic condition of a given reservoir.
3. The amount of prospected results, their geological location and readiness for
development.
4. Oil & gas reserve.
5. The technological level of oil production.
By using pressure maintenance methods, such as, water injection and gas injection the
productive life can be shortened and higher withdrawal maintained.
Oil Recovery Factor:In heterogeneous reservoir, the oil recovery factor increases with closer
spacing. This however increases development costs. Recovery of oil up to 60 – 80% is obtained
with the help of modern development methods. The water drive reservoirs give higher recovery
factor compared to gas cap drive and depletion drive reservoir.
Material and labour costs:
i. Determining the relative importance of the reservoir in total rational development.
ii. Apportioning the production of the whole given area between the various reservoirs
it comprises.
iii. Drawing up the technical plan for the development of a given reservoir to meet the
planned productive targets.
In formulating the economic characteristics of different development plans, the following factors
are used:
i. Labour productivity.
ii. Capital investment.
iii. Operating cost.
iv. Production cost.
Labour cost consists of following:-
i. Drilling labour cost.
ii. Oil filed operation labour cost
iii. Pressure maintenance labour cost
iv. Auxiliary department operation labour cost, such as electrical, mechanical, water
supply, services department and other utility.

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 v. Construction and erection department labour costs.
Determining Capital Investment:
The breakdown of capital investment is as follows-
i. Drilling and producing wells.
ii. Field facilities.
iii. Drilling of injection wells
iv. Flooding facilities depending on number of injection wells.
v. Auxiliary facilities such as steam and power, electrical transport etc.
vi. Housing and public amenities.
vii. Road construction.
viii. Water supply and sewerage etc.
The items (v) – (viii) do not depend on the development plan and are practically the same for all
the variants of a development plan.
Determining Operation and Productivity Cost:
The total cost of marketable production can be determined from the following-
i. Well maintenance costs, which include wages of personnel and other related costs,
expenditure on the well maintenance and overhead charges.
ii. Cost depending on the current rate of oil production which include oil pumping and
storage costs.
iii. Costs depending on the total fluid to be injected on the reservoir.
iv. Costs depending on the number of producing wells in a reservoir.
v. Depreciation of well and other fixed capital costs.
vi. Demulsification and other surface treatment costs.
To determine oil production costs, it is necessary to add depreciation and current
expenditure and divide the result by the ultimate recovery.

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 DEVELOPMENT PLANNING FOR ONSHORE OILFIELDS
Prof. T. Kumar
Dept. of Petroleum Engg.
ISM Dhanbad

The objective of development of an oil field is to enable

exploitation/production of oil from the oilfield over a period of time. It involves
drilling production wells (also injection wells during later life) to establish an
effective spacing pattern for efficiently and economically producing oil. It also
involves simultaneous development of surface production facilities such as GGS,
CTF and flow lines to enable processing of oil to meet refinery or consumer
specifications and transportation of oil from wells to the central point of dispatch.

A rational system of oilfield development involves deciding well spacing

(i.e., number of wells) for developing the oilfield and the schedule and sequence of
drilling wells. Development plans are made with different options of well spacing
(number of wells), schedule of drilling, production schedules, projection of
ultimate oil recovery, schedule of developing production facilities, etc.
Preparation of development plan requires estimation of reserves,
identification of reservoir drive mechanism, performance prediction of reservoir
under assumed production schedule, etc. The performance of reservoir and
ultimate recovery are compared for different development plans prepared with
different options of well spacing and a particular development plan is selected for
oilfield development which ensures development with minimum number of wells
ensuring the envisaged rates of oil production with a high ultimate recovery with
lowest possible capital investment and minimum cost of production.

COMPONENTS OF OILFIELD DEVELOPMENT

A. DEVELOPMENT WELLS

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 Wells drilled for production after a rational development plan is finalized
are development wells. The spacing of the wells is finalized while selecting /
finalizing a rational development plan. Production casing size is decided
based upon the rate of production and future work over and artificial lift
requirements. The cost of wells could range from a few crores to many cores
depending upon target depth, production casing size, geological
considerations, and other factors.

B. SURFACE PRODUCTION INSTALLATIONS

Surface production installations are also developed over period of time of
ensure early supply of oil to consumers as soon as wells are competed. It
comprises of following units.

1. Early Production System (EPS) as the name suggests, provides

minimum production facilities with minimum capital cost for putting any
discovery on production at the shortest possible time. This type of system
is basically used for taking production from few wells already drilled on
the structural and to generate additional reservoir performance data
required for full development of the field. In case of small discoveries it
is used for exploitation of reserves. In case of single well, the well is
connected to separator and the oil after separation is stored in tank and
transported to nearby production installation/refinery through road
tankers. But in case of 3-4 wells the wells are connected to a manifold for
facilitating testing of individual wells. EPS's also have minimum Fire
Fighting facilities to provide safety to the installation in case of
eventuality.

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 The concept of EPS can also be used in developed fields for taking
production from isolated wells which otherwise can not be produced by
connecting to existing GGS's.

The EPS's may be expanded in to full fledged GGS's in future

depending on availability of more wells.

The cost of onshore EPS may be of the order of a few crores of

Rupees.

2. GROUP GATHERING STATIONS (GGS) OR WELL

CENTRES
Group gathering station is the basic unit of taking production from any oil
field. The functions of GGS's are:
- Testing
- Separation (Oil/Water/Gas)
- Treatment (Oil/Water)
- Storage (Oil)
- Disposal (Oil/Water/Gas)
- To work as intermediate pumping station
To meet above functions the GGSs have following facilities:
Testing : Manifold
(Oil Manifold, Water Injection Manifold, Gas Lift
Manifold)
Separation : Test Separators, Group Separators.
Treatment : Chemical Dosing Systems, Heater Treaters
Storage : Tanks
Disposal : Pump House/Pipelines to CTFs
: Evaporation pits / Effluent disposal pumps

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 : Gas Flare Unit / Pipelines
: Fire Fighting Facilities
: Pigging facilities on collector lines
Pumping : Pumps

a) Testing
As a number of wells are connected to a GGS, the wells need to be tested
regularly for generating test data for proper monitoring and evaluation of
field performance. It is achieved by producing the well through test header
in the manifold through test separators to storage tank. Oil, Water and Gas
flow rates of the well are determined.
b) Separation
Gas from liquid (oil and water) is separated in two phase separators in one
or more stages based on following main considerations:
• Maximizing liquid recovery
• Utilization of separated gas which requires certain pressure for
transportation up to point of use
• Minimizing back pressure on wells
The oil after separation is routed through Heater treater to storage tanks
under pressure and gas is transported further for utilization through
pipelines.

C) Treatment
The liquid separated in separators may require some treatment for proper
separation of oil and water. This can be achieved by:
a) Chemical treatment - use of demulsifier and
b) Thermal and electrical treatment - in Heater Treaters.

d) Storage

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 Generally 10 - 15 days storage is created in GGS's for storage of oil for
smooth function of GGS's. The tanks have facilities for volumetric
measurements and sample collection for BSW measurements.
e) Disposal
Oil : Oil from storage tanks is pumped to CTF for onward
transportation to Refinery.
Water : Free water from Heater Treater and the separated water
from oil tanks are diverted to evaporation pits where from it
may be pumped to effluents plants for further treatment and
disposal or may be evaporated as such.

The cost of GGS depends on fluid handling and treatment

capacities and it may be of the order of Rupees three to five crores.

3. CTF :
Oil from various GGS's are collected in central tank farm for further
transportation to refineries. Besides having storage and pumping facilities
the CTF's may have final crude treatment facilities to meet the specifications
of Refinery requirement of BSW and salinity. Storage capacity is generally
created for 7 to 15 days storage.

Function Facilities
* Receive oil from GGS's * Manifold with pigging
facilities for collector lines
* Receive oil from upstream CTF's
* Storage of oil * Tankage
* Final Treatment * Heater Treater, Desalting Plants
* Transportation to refinery * Pump House

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 * Scrapping * Pigging facilities for tank lines
* Fire fighting facilities

The cost of CTF's in present day context may be of the order of Rs. 6 to 8
Crores.

4. Water Injection Installation :

The development plan also takes into consideration requirements of
pressure maintenance / water flooding for optimizing ultimate recovery.
The water to be injected into the formation should be compatible with
reservoir fluids/rocks so as not to impair the permeability of the
reservoir. Thus water from any of the following sources require some
treatment before it could be injected.
Tube well
River water
Effluent produced along with oil.
These installations have following facilities :
Source of water
Water treatment
Storage
Pumping
Manifold

a. Effluent Treatment Plants (ETP)

Any oil field during its life time produces water in ever increasing
rates and then produced water becomes problematic for disposal as it
contains some amount of oil even after proper treatment and
separation. There are governing state and other regulations for
disposal of such water in view of safety and environmental

14
 considerations. The effluent thus requires to be treated for achieving
specifications for surface or subsurface disposals. Effluent Treatment
Plants thus receive effluents from various GGS's, give proper
treatment to bring the oil content and total dissolved solid contents
within desired specification for surface/subsurface disposal. The
treated effluent may also be utilized for meeting the water injection
requirements of the field.

b. Flow lines and Pile lines :

A net work of flow lines and pipe lines are made to connect wells, GGS,
CTF and other installations in the field to enable oil to move from wells to
CTF or point of dispatch.

GAS FIELD DEVELOPMENT

Gas fields are also developed by drilling development wells and making
surface facilities for separation, treatment, etc. Compressor plant may also be
required in many cases. Well spacing may be larger in comparison to oilfield
spacing. Components of surface facilities are as below:
1. Gas Collection Station (GCS)
a. Manifold : To enable testing of individual wells
through test header and separator.
b. Test Separator : To separate liquid (condensate + water)
c. Group Separator : From gas
d. Gas measurement facilities
e. Condensate collection and disposal facility
f. Water disposal
g. Fire fighting

2. Gas Compressor Station :

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Gas compressor stations are required for :
a. Compression of low pressure solution gas produced at GCS's for gas
lift operation or long distance transportation for consumer use.
b. Compression of free gas in the later stages of production when
Reservoir pressure has depleted, for long distance transportation for
consumer use.

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 CHARACTERISTICS AND PERFORMANCE PREDICTION OF
DEPLETION DRIVE RESERVOIRS

Professor T. Kumar
Dept. of Petroleum Engg

Two problems are faced by the reservoir engineers :

(1) the amount of oil and gas which will ultimately be recovered, and

(2) the rate at which this oil and gas will be recovered.

Both of these factors are directly related to the forces in the reservoir which will
contribute to the expulsion of the oil from the reservoir. Depletion drive reservoir
mechanism may also be referred to as solution gas drive or internal gas drive. This
recovery mechanism is a result of gas liberation from solution in the reservoir oil, with
subsequent expansion and expulsion of the oil. These reservoirs have no initial free gas
cap and no active water drive. Stratigraphic trap reservoirs are often depletion drive
reservoirs, due to the nature of the trap, which precludes the presence of a large aquifer
underlying the oil zone.

Characteristics of a depletion drive reservoir :

1. Rapid pressure decline due to absence of external supply of energy.
2. Water free oil production due to absence of active water drive. The
interstitial water saturation is near the irreducible saturation.
3. Rapidly increasing gas oil ratio from all walls, regardless of their structural
position. Below saturation pressure, the gas will evolve throughout the reservoir.
Once this gas saturation has increased to a point where it can flow (equilibrium
saturation), then this free gas will begin to flow towards the wellbore.
4. Low ultimate oil recovery : Oil production by depletion drive is usually the
least efficient recovery method. This is a direct result of the formation of a gas
saturation throughout the reservoir. Very early in the life of a reservoir a high
relative permeability to gas is developed, and before oil recovery has reached very
large proportions, the reservoir is flowing essentially gas only. Thus, the
 economic limit is reached relatively early. This problem could be alleviate
somewhat if the gas could be made to form a bank to displace oil ahead of it. This
is often impossible, but where the vertical permeability is such that gravity force
can be brought to play, one solution to this problem is to shut-in the reservoir
for a short time (2 or 3 months) to allow the gas to migrate upstructure and the
oil to migrate down structure. This will reduce the gas saturation in the lower
portion of the reservoir, with a consequent reduction in gas-oil ratio.

Ultimate recovery from depletion drive reservoirs may vary from less than 5
percent to 25 percent. The relative permeability (Kg/Ko) relationship determine to a large
extent the ultimate recovery from depletion drive reservoirs.

In turn, individual factors which govern the relative permeability relationships can be
examined to determine their effects on ultimate oil recovery. Reservoir oil viscosity is also
an important factor in determining ultimate recovery. As reservoir oil viscosity increases,
ultimate oil recovery decreases. The amount of gravitational segregation of the oil and gas
will also be a function of the oil and gas viscosities.

Performance Prediction of a Depletion Drive Reservoir :

Tarner provides a convenient method of predicting future reservoir performance.
This method utilizes the schilthuis material balance equation, the instaneous gas-oil ratio

2
equation; and an equation for determining the oil saturation existing at any time. The
method is applied in two steps : above saturation and below saturation pressure. The value
of oil in place N and cumulative oil produced Np will be different for both the steps.

The generalized MBE is given below :

Bg We - Wp Bw
MBti ( ---- - 1) + (Bt - Bti) + ( ----------------------- ) ....... (1)
Np Bgi N
--- = -------------------------------------------------------------------------------- ……….(1)
N Bo + (Rp - Rs) Bg

For a depletion drive reservoir m, We and Wp are all equal to zero and since no free
gas is flowing above the saturation pressure, Rp must be exactly equal to Rs. Therefore,
MBE for a depletion drive reservoir above the saturation pressure reduces to :

Nps Bt -Bti
------------------ = ----------------- ............... (2)

Ns Bo
however, above saturation pressure Bt = Bo, therefore, we can write as

Nps Bo - Boi
---- = ---------- ………….(3)
Ns Bo

where Nps = cumulative oil produced, STB

Ns = oil in place originally, STB

The fractional oil recovery above the saturation pressure is simply a function of the change
in formation volume factors.
Below saturation pressure
Np Bt - Bti
--- = -------------------- .............................(4)
N Bo + (Rp- Rs) Bg

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The instantaneous gas-oil ratio equation is written as :

Kg o Bo
R = ---- --- --- + Rs .................…..........(5)
Ko g Bg

Oil saturation equation is defined as :

Remaining oil volume

So = --------------------------- ...............................(6)
Total pore volume

(N-Np) Bo
= ------------- .................…..........(7)
NBos / (1-Swi)

Np Bo
or So = ( 1 - ------ ) x --- ( 1 - Swi) ..................….........(8)
N Bos

If secondary gas cap is formed, then oil saturation equation is given as

Remaining oil volume

So = ------------------------------------------------ ..............…………....(9)
Pore vol. within which Rem. oil is located

Remaining oil volume

= ------------------------------------------------- ...........……….......(10)
Original total vol. - Secondary gas cap volume

( N - Np) Bo
= ------------------------------------- ………..................(11)
(Nbos -m NBos)/(1-Swi)

(1 - Np/N) (Bos) (1 - Swi)

= ------------------------------- ……….................. (12)
( 1 - m’)

where So’ = oil saturation within the oil zone of the reservoir

m’ = ratio of secondary gas cap size to original oil zone size

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Mechanics of the Reservoir Performance Prediction Procedure :

When making a reservoir study of a depletion drive reservoir the principal

objectives are to determine:
1) the ultimate recovery by primary recovery methods,
2) the rate at which the oil and gas will be recovered, and
3) the variation of reservoir pressure with oil production.

All these objectives can be answered by the Tarner method of predicting reservoir
performance. A step by step procedure for performing a reservoir study is given below :

Procedure :
I. Assemble production data and all necessary information concerning the reservoir
fluids with the following category of information :-

A. Reservoir fluid data : Bo, Rs, Z, o, g can be calculated if either

laboratory measurement, or gas composition or gas specific
gravity is known. Prepare graphs of all the above factors versus
pressure.
B Past production data of oil, gas water and water influx : prepare
graphs of the above data versus pressure
C. Fluid flow date :
1. Lab. relative permeability data
(Kg/Ko vs So)
(A typical permeability data has been shown in the figure given).

2. Field relative permeability data calculated from production data and

instantaneous gas-oil ratio equation and the oil saturation equation.
D. Geological data : N, m, Swi, and  .

5
 The use of both the lab and the field relative permeability data provides a reliable
index of the past flow characteristics of the reservoir which is a critical factor in the
behaviour of a depletion drive reservoir. However, since the behaviour of the reservoir in
the future is one of the principal objectives of the study, it will be necessary to extrapolate
the field relative permeability curves to lower oil saturations. This is best accomplished by
using laboratory permeability data, adjusting the curve obtained in the lab. until it fits the
field curve over the past history of the reservoir. This will usually provide a reliable index
of future behaviour.
II. Arrange the MBE in the following form :

N (Bt - Bts) - Np (Bt - RssBg)

NpRp = ---------------------------------- = G1 ………............(13)
Bg

where NpRp = cumulative gas produced, SCF.

III. Using the past production history of the reservoir, and the best available data,
predict reservoir behaviour as if the actual reservoir behaviour were unknown, and
compare this predicted performance with the actual reservoir performance. This technique
is a necessary preliminary step in any reservoir study. Make any necessary
adjustments in basic data as dictated by this matching process.
IV. First Prediction Step
A. Select a future reservoir pressure and assume a value of Np (in terms of fraction
of N) and solve the cum. gas equation for NpRp given in the step II.
B. Using the assumed value of Np , solve the oil saturation equation for So.
Using the calculated value of So, determine the available Kg/Ko from the relative
permeability curve. Then calculate R, the instantaneous gas-oil ratio, from the
instantaneous flowing gas-oil ratio (GOR) eqn.
C. Calculate the total gas produced during the first period by :

Ri + Ri+1
(---------------------) Np1 ......................................(14)
2

6
where, Ri = initial instantaneous flowing GOR, SCF/STB
Ri+1 = Inst. GOR at the end of the period
Np1 = cum. oil produced to the end of the first period, STB
For the first period, the value
Ri + Ri+1 Rss + Ri+1
( ------------- ) Np1 = ( ------------- ) Np1 ……................(15)
2 2

It should be noted that the total gas produced calculated this way will be correct
only if the variation between Ri and Ri+1 is linear. Since a plot of R vs Np is not linear in
nature, it is necessary to assume small pressure drops in order to have successive values of
R which are close together. In actual practice, pressure decrements in the order of 50 psi
are normally used.
D. The total gas produced during the period, as calculated by the material balance
equation, is compared to the total gas produced during the period, as calculated by the
GOR equation. These two equations represent independent methods of arriving at the
same answer. Therefore, if the total gas produced, as calculated by the two different
methods, is the same, then the correct value of Np has been assumed. However, if the two
vlaues are not in agreement, then this process must be repeated until a value of Np is found
which will yield the same answer from both equations.

E. In order to simplify this estimating process, three values of Np can be assumed,

which will yield three different solutions of gas produced for each of the equations. If
these values are then plotted on a graph of NpRp vs Np, the plot of the two lines will
intersect. This intersection is the only point where one value of Np will satisfy both
equations.

V. Second Prediction Step

A. Choose a second pressure and assume a new value of Np. This will be Np2.

7
B. Solve the MBE for Np2Rp2. This is equivalent to the total gas produced from
initial conditions to the end of step 2. In order to find the amount of gas produced during
step 2, In order to find the amount of gas produced during step 2, it is necessary to
subtract the amount of gas produced during step 1 from the total gas produced to the
end of step 2.

This is done as follows :

N(Bt - Bts)-Np ( Bt- RssBg )
G2 = Np2Rp2 - Np1Rp1 = -------------------------------- - Np1 Rp1 ....(16)
Bg

C. Using the assumed value of Np Calculate So. Using the calculated value of So
determine the value of Kg/Ko. Calculate R from the GOR equation. This will be R2.

D. Calculate the amount of gas produced during the second period by :

R i + 1 + R2
(----------------- ) ( Np2 - Np1 ) = G2 .........................(17)
2
where :
G2 = Total gas produced during the period, SCF

E. If the correct value of Np2 has been assumed, the amount of gas produced as
calculated by the above two approaches will agree. As given earlier, in order to
simplify the estimating process, three values of Np2 can be assumed.

F. This stepwise procedure is continued untill the economic limit has been reached.

G. The final results of this series of calculations are usually shown as graphs between
R vs Np/N and P vs Np/N.

8
Limitations of Predictions
The prediction of behaviour of a depletion drive reservoir involves the same
general limitations as applicable to all types of reservoir studies i.e. the validity of the data
used. One of the most important parts of a reservoir study is the adjusting of the basic data
(PVT & Prediction data) to insure its reliability. This part should be done very cautiously,
as the temptation of many reservoir engineers is to change them very rapidly which may
give temporary desired results only.

Prediction normally become more accurate as the amount of production data

increases, but in general, reliable prediction can usually be made in advance for a period,
equal to the length of the past production history.

It should be noted that theoretically, withdrawal rates do not affect the ultimate oil
recovery from a depletion. This due to the fact that no extraneous fluids are moving into
the reservoir and the recovery is dependent almost entirely on the relative permeability
characteristics of the reservoir. Of course, where gravity segregation of the fluids permits
the formation of a secondary gas cap, then lower withdrawal rates would increase recovery
from the reservoir by maintaining a lower gas saturation in the vicinity of the completion
interval.

Relating Reservoir Performance to Time :

Productivity Index data can be used to relate the cum production, Instantaneous
GOR, and pressure with time and hence get a complete picture of performance prediction
data.
Qo
PI(J) = -------- STB/day/psi …………………….(18)
Pe-Pw

Using Darcy Law, equation,

9
 7.07 Koh (Pe-Pw)
J= --------------------- ………………(19)
μo1n (re / rw)Bo(Pe-Pw)

7.07 Koh
or --------------------- ………………(20)
μo Bo1n (re / rw)

Ko
or --------------------- ………………(21)
μo Bo

7.07 h
where constant C = -------
1n (re / rw)

C can be used if data for one set (e.g. initial condition) of J, Ko, μo and Bo is known

J μo Bo
or C = ----------- ………………(22)
Ko

Once C is determined, this value can then be found for future performance prediction.

Gas-Oil Ratio history in a depletion drive reservoir : (Fig. Below)

10
 The producing gas-oil ratio history of a depletion drive reservoir can provide
reservoir engineer valuable information when this is analyzed in the light of the events
which must occur in the reservoir. In the figure above during, the period from point 1 to 3
the GOR curve follows exactly the solution GOR curve. From point 1 to 2, the reservoir
produces above saturation pressure, therefore, prod. GOR remains constant and equal to
initial solution GOR at point 2, the reservoir saturation pressure is reached, and gas is
evolved from solution. However, this free gas can not flow until a free gas saturation
equivalent to the equilibrium gas saturation (minimum gas saturation necessary to permit
gas flow) has been built up. Therefore, the surface gas oil ratio will begin to decrease as
the solution gas-oil ratio decreases.

At point 3, the equlibrium gas saturation is reached and free gas now begins to
flow. The gas-oil ratio increases from point 3 to point 4. The rapidity of the gas-oil ratio
increase will depend upon the rate of pressure decline. The gas-oil ratio increases because
gas is being evolved from all of the oil in the reservoir, while only a small part of this oil is
being produced.

At point 4, the maximum gas-oil ratio is reached for the simple reason that the
supply of gas has reached a maximum and the ‘blow-down’ cycle is beginning. From Point
4 to Point 5, the free gas saturation is being depleted rapidly due to the small amount of
gas coming out of solution compared to the gas produced.

At point 5 all of the producible free gas has been produced and the producing gas-
oil ratio now is equal to the solution gas-oil ratio which now is small due to the low
reservoir pressure.

The line from Point 5 to Point 6 seldom is seen in an actual case because the
economic limit usually falls somewhere between Point 4 and Point 5.

11
 PROBLEM SHEET ON PERFORMANCE PREDICTION OF
DEPLETION DRIVE RESERVOIRS (COMPLETE ANALYSIS)
Prof. T.Kumar
Dept. of Petroleum Engg.

Example Problem - 1
Example calculations for a depletion drive reservoir will be made in order to
clarify the preceding discussion of the method. Table 1 lists reservoir data necessary for
the study, and the data from figures have been reproduced in the Table 2. Figures 1-3
provide the additional data necessary for the study. Table shows calculated data which
will be required for the study. Performance predictions will be made at the following
pressures : 2600, 2400, 2100, 1800, 1500, 1200, 1000, 700 and 400. In an actual
reservoir study it would probably be desirable to predict performance in pressure setps
not greater than 50 psi. The larger pressure steps are used in order to simplify the
presentation and reduce the numbers of repetitive calculations. It should be noted that
above the saturation pressure the Bt and Bg data are not required,

Table - 1
Engineering Data for Reservoir X Depletion Drive Reservoir
Structure : Low-relief stratigraphic trap.
Average depth : 6500 feet
Original reservoir pressure : 2925 psia.
Reservoir saturation pressure : 2100 psia.
Reservoir temperature : 175oF
 Interstitial water saturation : 15 percent
Original oil in place : 100,000,000 stock tank barrels
(from geologic data)
No original gas cap.
No water drive.
Average specific gravity of produced gas : 0.70

as the oil is produced solely by expansion of the liquid phase. The gas-oil ratio does not
change, as no gas is being liberated in the reservoir.
Table 3 through 7 and Figures 4 through 6 show the results of the performance
predictions. Example calculations are provided to illustrate clearly in a step-by-step
fashion the procedure used.

Table - 2
Basic Data - Reservoir X
Pressure Z Rs Bo Bg Bt Bo/Bg o/g
2100(Ps) 0.842 1340 1.480 0.001283 1.480 1152 34.1
1800 0.854 1280 1.468 0.001518 1.559 967 38.3
1500 0.869 1150 1.440 0.001853 1.792 777 42.4
1200 0.888 985 1.399 0.002365 2.239 590 48.8
1000 0.901 860 1.360 0.002885 2.745 471 53.6
700 0.929 662 1.287 0.004250 4.167 303 62.5
400 0.960 465 1.202 0.007680 7.922 156 79.0

Example calculations : P = 1200 psia

1. Calculation of Z : Sp.gr. of gas = 0.70
Pc = 667 psia Tc = 385oR
(from available source)
Tr = T/Tc = (175 + 460)/38 = 1.65
 Pr = P/Pc = 1200/667 = 1.80
Z = 0.888 (from plot of Z and Pr  Tr)
2. Calculation of Bg :
Bg = (PsVsZ1Tp)/(P1Zs Ts x 5.62)=[(14.7) (1) (0.888) (635)]/[(1200)((1)(520)(5.62)]
= 0.002365
3. Calculation of Bt :
Bt = Bo + (Rsi - Rs) Bg
= 1.399 + (1340 - 985) 0.002365
= 2.239
Table - 3
Summary of Reservoir Performance Calculations
(Above the Saturation of Pressure)
Pressure Nps Rp
2600 1,380,000 1340
2400 2,260,000 1340
2100 3,445,000 1340$

$ The producing GOR does not change because no gas is being liberated in the
reservoir as long as the pressure is greater than the saturation pressure.
Example calculation : P = 2400 psia
Nps = Ns (Bo - Boi)/ Bo = 100,000,000 (1.462 - 1.429)/1.462
= 2,260,000 stock tank barrels.
NOTE : N (at Saturation Pressure) = Ns - Nps = 1,00,000,000 -3,445,000
= 96,555,000 ;bbl.

Table - 4
Reservoir Performance Calculations
(Below the Saturation Pressure)
 Pressure Np/N Kp Np Total oil
Psia SCF/bbl bbls x 106 produced
bbls x
106
2100 0 1340 0 3.445
1800 0.0393 1936 3.795 7.240
1500 0.0889 3584 8.584 12.029
1200 0.1230 6230 11.876 15.321
1000 0.1396 8580 13.479 16.924
700 0.1578 13010 15.236 18.681
400 0.1715 16625 16.559 20.004

 Includes oil produced above the saturation pressure.

Table - 5
Summary of reservoir Performance Calculations
(Below the satruation pressure)

Pressure Np/N Gmb S Kg/Ko R Ggor Actual

calculated calculated
1800 0.010 55.17N 0.835 0.0100 1650 14.95N
0.03 61.43N 0.817 0.0142 1806 47.19N
0.040 64.56N 0.810 0.0180 1946 65.72
(Actual) 0.0303 1936 64.34N
1500 0.050 122.36N 0.768 0.0342 2278 22.56N
 0.080 133.86N 0.761 0.0628 3220 104.95N
0.090 137.56N 0.753 0.0742 3594 140.19N
(Actual) 0.0889 3594 136.06N 136.06N
1200 0.120 166.80N 0.707 0.180 6060 150.0N
0.130 170.70N 0.700 0.192 6530 207.8N
0.150 178.10N 0.683 0.255 8340 364.3N
(Actual) 0.1230 6230 167.9N
1000 0.130 119.3N 0.630 0.272 7730 48.86N
0.140 123.6N 0.672 0.311 8720 127.10N
0.150 127.4N 0.664 0.354 9810 216.50N
(Actual) 0.1396 8580 123.3N
700 0.150 193.4N 0.628 0.601 12062 107.3N
0.155 195.4N 0.624 0.624 12460 161.9N
0.160 197.4N 0.620 0.663 13210 222.3N
(Actual) 0.1578 13010 196.3N
400 0.170 202.5N 0.573 1.280 16300 178.8N
0.175 204.1N 0.570 1.314 16715 255.8N
0.180 205.7N 0.566 1.395 17745 341.5
(Actual) 0.1715 16625 203.1N

Table - 6
Example Calculations - Reservoir X
First period - P = 1800 psia
______________________________________________________________________
A. Trial 1 - Asssume Np1 = 0.01N

N(Bt - Bts ) - Np ( Bt - Rss Bg)

Gmbl = Np1 Rpl = -------------------------------------------
Bg

N(1.559 - 1.480) - 0.01N ( 1.559 - 1340x0.001518)

= -----------------------------------------------------------------
0.001518

= 55.17N

Np Bo 0.01N 1.468
So = (1 - ------- ) -------- (1 - Swi) = (1- ------- ) --------- (1 - 0.15)
N Bos N 1.480

= 0.99 x 0.992 x 0.85 = 0.835

Kg/Ko = 0.0100 (From Fig 3)

Kg o Bo
R1 = ---- x ---- x ----- + Rs = ( 0.0100 ) (38.3) (967) + 1280 = 1650
Ko g Bg

R1 + Rss 1650 + 1340

Ggor1 = ( -------------) (Np1 ) = ( ---------------------) (0.01N) = 14.95N
2 2

______________________________________________________________________
B. Trial 2 - Assume Np1 = 0.03N

N ( 1.559 - 1.480) - 0.03N ( 1.559 - 1340 x 0.001518)

Gmb1 = ----------------------------------------------------------------------
0.001518

= 61.43 N

So = 0.97 x 0.991 x 0.85 = 0.817

Kg/Ko = 0.0142 at So = 0.817 (from Fig. 3)

R1 = 0.0142 x 38.3 x 967 + 1280 = 1806

1806 + 1340
Ggorl = ( ------------------------ ) x 0.03N
2

= 47.19 N
_____________________________________________________________________

C. Trial 3 - Assume N pl = 0.04 N

N (1.559 - 1.480) - 0.04N ( 1.559 - 1340 x 0.001518)

G mbl = ------------------------------------------------------------------------
0.001518

= 64.56 N
So = 0.96 x 0.991 x 0.85 = 0.810

Kg/Ko = 0.0180 at So = 0.810 (from Fig. 3)

R1 = 0.018 x 38.3 x 967 + 1280 = 1946

1946 + 1340
Ggorl = ( --------------------) x 0.04N = 65.72 N
2

_____________________________________________________________________
Table - 7
Example Calculations - Reservoir X
Second Period - P = 1500 psia
_____________________________________________________________________

A. Trial - 1 - Assume Np2 = 0.05 N

N(Bt - Bts ) - Np (Bt - Bss Bg)

Np2Rp2 = ---------------------------------------------
Bg

N (1.792 - 1.480) - 0.05 N ( 1.792 - 1340 x 0.001853)

 = --------------------------------------------------------------------------
0.001853

= 186.7 N

Gmb2 = Np2Rp2 - Np1Rp1 = 186.7 N - 64.34 N = 122.36 N

Np Bo 0.05 N 1.440
So = ( 1 - --------- ) ---------- (1 - Swi) = ( 1 - -----------) ---------- (1 - 0.15)
N Bos N 1.480

= 0.786

Kg/Ko = 0.0342 (from Fig. 3) Where So = 0.786

Kg o Bo
R2 = --- --- ---- + Rs = 0.0342 x 42.4 x 777 + 1150 = 2278
Ko g Bg

R1 + R2 2278 + 1936
Ggor2 = ------------ (Np2 - Np1 ) = (-------------------------) (0.005N - 0.0393N)
2 2

= 22.56 N

____________________________________________________________________
B. Trial - 2 Assume Np2 = 0.08N

N(1.782 - 1.480) - 0.08N (1.792 - 1340 x 0.001853)

Np2 Rp2 = --------------------------------------------------------------------
0.001853

= 198.2N

Gmb2 = 198.2 N - 64.34 N = 133.86 N

So = 0.92 x 0.973 x 0.85 = 0.761

Kg/Ko = 0.0628 at So = 0.810 (from Fig. 3)

R2 = 0.0628 x 42.4 x 777 + 1150 = 3220

1936 + 3220
Ggor2 = ( -------------------) (0.08N - 0.0393N) = 104.95 N
2

________________________________________________________________________

C. Trial 3 - Assume Np2 = 0.090 N

N(1.792 - 1.480) - 0.09N (1.792 - 1340 x 0.001853)

Np2 Rp2 = --------------------------------------------------------------------
0.001853
 = 201.9N

Gmb2 = 201.9 N - 64.34 N = 137.56 N

So = 0.91 x 0.973 x 0.85 = 0.753

Kg/Ko = 0.0742 at So = 0.810 (from Fig. 3)

R2 = 0.0742 x 42.4 x 777 + 1150 = 3594

1936 + 3594
Ggor2 = ( -------------------) (0.09N - 0.0393N) = 140.19 N
2
Example Problem - 2

The use of the productivity index in relating reservoir performance to time is illustrated by
an example problem (Fig. 7) using the performance perdiction results from Reservoir X(Table 8).
The following additional data are needed :

1. The allowable producing rate for the reservoir is 15,000 ST bbls/day

2. Reservoir average depth is 6500 ft.
3. There are 60 producing wells .
4. Bottom hole flowing pressure is 1500 psia
5. The initial measured per well productivity index is 0.75 barrels/day./psi. Therefore
the reservoir productivity index is 0.75 x 60 = 45.0
6. Other appropriate data can be found in the previous example problem where the Tarner
performance predication was illustrated.
 Table - 8
Results from the Performance Prediction
Sl. Pressure Prod. GOR Oil saturation Cum. oil prod.
No. psia SCF/STB Percent STB x 106
Pe R So Np
1. 2925 (Pi) 1340 85 0
2. 2600 1340 85 1.380
3. 2400 1340 85 2.260
4. 2100(Pb) 1340 85 3.445
5. 1800 1936 81.2 7.240
6. 1500 3584 75.4 12.029
7. 1200 6230 70.5 15.321
8. 1000 8580 67.2 16.924
9. 700 13010 62.2 18.681
10. 400 16625 57.2 20.004

C Koi
Ji = 0.75 (60) = 45.0 = ------------------------ STB/day/psia
Boi oi

Ji Boi oi (45) (1.429)(0.4)

C = --------------------- = ------------------------- = 347.6
Koi 0.074

___________________________________________________________________
 The value for the constant C is assumed to remain constant throughout the producing life of
the reservoir.

1. P = 2925 psia (Pi)

Qo
Ji = 45 = ----------
Pe - Pw

The maximum producing capacity (flowing) =

Qo = Ji (Pe - Pw) = 45 (2925 - 1500) = 64,100 ST bbls/day.

which is greater than the 15,000 barrels per day, allowable producing rate.

therefore, initially the reservoir will be producing less than its capacity.

2. P = 2600 psia :

CKo ( 347.6) (0.074)

J = ---------- = --------------------- = 49.5 bbls/day/psia
Boo (1.444)(0.367)

Qo = J (Pe - Pw) = 49.5 (2600 - 1500) = 54,500 bbls/day

which is still greater than the allowable producing rate. Therefore, the producing rate during the

first period (from initial pressure until P = 2600), is 15,000 barrels per day. The time required to

produce the oil is :

 1,380,000 bbls
t1 = ------------------- = 92 days
15,000 bbls/day

3. P = 2400 psia :

C Ko ( 347.6)(0.074)
J = ---------- = --------------------- = 53.6 bbls/day/psia
Boo (1.462)(0.328)

Qo = J (Pe - Pw)

= 53.6 (2400 - 1500) - 48,000 ST bbls/day

Since the producing capacity of the reservoir exceeds the allowable producing rate, the
actual producing rate during the second period will be 15,000 barrels per day.

NP2 = (NP2400 - NP2600) = 2,260,000 = 1,380,000 = 880,000 ST bbls

Np2 880,000
t2 = -------- = -------------- = 59 days.
Qo2 15,000

Cumulative Time =  t = 91 + 59 = 151 days

4. P = 2100 psia :

C Ko (347.6)(0.074)
J= --------- = -------------------- = 57.9 ST bbls/day/psia
Bo o (1.480)(0.30)

Qo = J (Pe - Pw)

= 57.9 (2100 - 1500) = 34700 ST bbls/day

which is more than the allowable producing rate.

Np3 = (Np2100 - Np2400) = 3,445,000 - 2,260,000

= 1,185,000 barrels

Np3 1,185,000 ST bbls

 t3 = ---------- = --------------------------- = 79 days
Qo3 15,000 ST bbls/day

Cumulative Time =  t = 151 + 79 = 230 days

5. P = 1800 psia
 C Ko (347.6)(0.058)
J = ---------- = --------------------- = 36.1 ST/bbls/day/psia
Bo o (1.468)(0.38)

Qo = J (Pe - Pw) = 36.1 (1800 - 1500)

= 10,800 ST bbls/day
The producing rate, under flowing conditions, has declined below the allowable producing
rate. Therefore, artificial lift equipment should be installed before pressure declines to
1800 psia.
It is assumed that subsurface pumps will be installed and that the producing well bore
pressure, Pw, can now be reduced to 200 psia, Under these conditions, the reservoir productivity
will be :
Qo = J (Pe - Pw) = 36.1 (1800 - 200)
= 57,800 St bbls/day
which is more than the allowable producing rate. Therefore, during this period the actual
producing rate will be 15,000 barrels per day.
 Np4 = (Np1800 - Np2100) = 7,240,000 - 3,445,000
= 3,795,000 ST bbls
3,795,000 ST bbls
 t4 = -------------------------------- = 253 days
15,000 ST bbls/day

Cumulative Time =  t = 230 + 253 = 483 days

6. P = 1500 psia :
 C Ko (347.6) (0.038)
J = ---------- = -------------------- = 19.1 ST bbls/day/psia
Boo (1.440) (0.48)

Qo = J (Pe - Pw) = 19.1 (1500 - 200) = 24,800 ST bbls/day

Np5 = Np1500 - Np1800 = 12,029,000 - 7,240,000

= 4,789,000 ST bbls

Np5 4,789,000 ST bbls

t5 = -------- = ------------------------ = 319 days
Qo 15,000 ST bbls/day

Cumulative Time =  t = 483 + 319 = 802 days

7. P = 1200 psia

(347.6) (0.028)
J = ------------------------- = 11.0 ST bbls/day/psia
(1.399) (0.63)

Qo = 11 (1200 - 200) = 11,000 ST bbls/day

The maximum producing capacity of the reservoir has declined below the allowabnle
producing rate. By a series of trial-and-error calculations it was determined that a producing
capacity of 15,000 barrels per day occurs at a reservoir pressure of 1350 psia. At this latter
pressure, the cumulative oil produced, Np is 14,000,000 stock tank barrels.
The time elapsed during the pressure decline from 1500 psia to 1350 psia is :
 Np6/1 = Np1350 - Np1500 = 14,000,000 - 12,029,000
 = 1,971,000 ST bbls.

1,971,000 ST bbls
 t6/1 = ---------------------- = 131 days
15,000 ST bbls/day

Cumulative Time =  t = 802 + 131 = 933 days.

During the pressure drop from 1350 psia to 1200 psia, the average oil producing rate can be
assumed to be the arithmetic average of the beginning and ending producing rates :
15,000 + 11,000
Qo(avg) = ------------------------- = 13,000 ST bbls/day
2

 Np6/2 = Np1200 - Np1350 = 15,321,000 - 14,000,000

= 1,321,000 ST bbls

Np 1,321,000
 t6/2 = ----------- = -------------------- = 102 days
Qo(avg) 13,000

Cumulative Time =  t = 933 + 102 = 1035 days.

8. P = 1000 psia :

(347.6) (0.023)
J = ---------------------- = 7.95 ST bbls/day/psia
(1.360) (0.74)
Qo = 7.95 (1000 - 200) = 6300 ST bbls/day

11,000 + 6350
Qo(avg) = ----------------------- = 8675 ST bbls/day
2

 Np7 = Np1000 - Np1200 = 16,924,000 - 15,321,000

= 1,603,000 ST bbls

1,603,000
 t7 = --------------- = 185 days
8675

Cumulative Time = 1035 + 185 = 1220 days

9. P = 700 psia :

(347.6) (0.018)
J = ------------------- = 5.17 ST bbls/day/psia
(1.287) (0.94)

Qo = 5.17 (700 - 200) = 2500 ST bbls/day

6350 + 2590
Qo(avg) = ----------------------- = 4470 ST bbls/day
2

 Np8 = Np700 - Np1000 = 18,681,000 - 16,924,000

= 1,757,000 ST bbls
 1,757,000
 t8 = ----------------- = 393 days
4470

Cumulative Time = 1220 + 393 = 1613 days.

10. P = 400 psia :

(347.6) (0.014)
J = --------------------- = 3.24 ST bbls/day/psia
( 1.202) (1.25 )

Qo = 3.24 (400 - 200) = 648 ST bbls/day

2500 + 648
Qo(avg) = ------------------ = 1619 ST bbls/day
2

 Np9 = Np400 - Np700 = 20,004,000 - 18,681,000

= 1,323,000 ST barrels

1,223,000
 t9 = -------------------- = 818 days
1619

Cumulative Time = 1613 + 818 = 2431 days.

Note : Because of the rapid decline in producing rates at the lower reservoir pressures, it

would have been preferable to use smaller pressure intervals.

 TARNER’S METHOD OF PERFORMANCE CALCULATION : DEPLETION DRIVE RESERVOIR
(Below the saturation pressure)

1 2 3 4 5 6 7 8 9 10

S Trial pressure Assumed Bg Bt Bt-Bts Bt -RssBg Npi +1 x Rpi +1 Gmb

t psia Np (Bts = 1.480) (Rss = 1340) N(7)-Np (8) = Npi +1 Rpi+1
e (fr. of N) = --------------- - Npi Rpi
p Bg

1 1 1800 0.01N 0.001518 1.559 -0.47512 55.17 N 55.17 N

0.079

2 0.03 N 61.43 N

3 0.04 N 64.56 N

0.0393 N
(actual)
 TARNER’S METHOD OF PERFORMANCE CALCULATION : DEPLETION DRIVE RESERVOIR
(Below the saturation pressure)

11 12 13 14 15 16 17 18 19 20 21

Bo So = (1- Kg/Ko o/g Rs R= Rpi + 1 = Ggor = Actual Np Total

Np/N) (from Kg o Bo G Np + Nps
Bo/Bss (1- fig. ) ------------ Ri +1 + Ri Rpi + 1 (bbl) (106 bbl)
Swi) Ko g Bg ------------- (Npi +1 -Npi)
2 Npss =
(Bss = + Rs 3.445x106
1.480) (Rss =
 1340)
(Swi =
0.15)
1.
46 0.835 0.0100 38.3 1280 1650 1495.0 14.95 N
8

0.817 0.0142 1806 1573.0 47.19 N

0.810 0.0180 1946 1643.0 65.72 N 64.34 N

(actual)

0.812 1936

(actual)
 WATER DRIVE RESERVOIRS

Prof. T. Kumar
Dept. of Petroleum Engg.

 Oil production by water-displacing process.

 It is most efficient drive.

 It also leaves a considerable percentage of residual oil.

Characteristics:

1. Pressure decline is very gradual

2. Early excess water production

3. Normally little change in GOR

4. Initial reservoir pressure is normal for the area.

Considerations:

Initial free gas cap: Gas production should be minimized to take advantage of

more efficient water displacing process. However, gas cap volume shrinkage should be

avoided at any cost, as oil saturation in the original gas cap due to upward movement of

oil will be developed, part of which can never be produced.

If impossible to stop gas production from gas cap, then it may be economically

desirable to return gas to the reservoir to maintain original size of the gas cap. In case of a

very active water drive, the effort should be to maintain the exact size of the gas cap In

partial water drive, gas should be returned to such an extent that the gas cap expands

which means a combination drive.

1
Efficiency of the water displacement process:

In general, as the reservoir heterogeneity increases, the recovery will decrease, due

to uneven advance of the displacing water. The rate of water advance will be faster in the

highly permeable zone. This results in earlier high water-oil ratios and consequent earlier

economic limits. In homogeneous reservoir, comparatively the advancing water would,

have contacted a greater portion of the reservoir, until economic limit.

Degree of activity of Water drive:

In a very active water drive, where degree of pressure maintenance is good, the

role of solution gas in the recovery process is reduced to almost zero, with maximum

advantage being taken of the water as a displacing force.

Effect of free gas saturation on Recovery:

It is generally agreed and proved by the laboratory results that oil recovery is

increased in the presence of free gas saturation. Although, the actual mechanism is not

completely understood this phenomenon can be taken advantage of in water drive

reservoirs. In one of the theories, it is believed that the free gas enclosed themselves in an

oil blanket due to lower gas-oil interfacial tension compared to gas-water interfacial

tension. This helps in achieving finally lower residual oil saturation, As per this theory;

the Kg/Ko vs. oil saturation relation should not have been altered for long period, which is

not true in actual behaviour. According to the second theory, as the water is held in the

smaller pores of water wet reservoirs due to capillary pressure, the gas flow occurs in the

larger pores where residual oil is present. As such, any gas saturation in the larger pores

will forcibly move only the residual oil form the pores, thereby increasing the ultimate

2
oil production. The second theory is believed to be more compatible with the fluid flow

observations, as the gas saturation does not have to exist inside the oil phase.

Where original pressure is above the saturation pressure of the reservoir oil it may

be desirable to reduce reservoir pressure below the saturation pressure as rapidly as

possible in order to create free gas saturation in the oil zone. After the free gas saturation

has been established it is then desirable to maintain reservoir pressure (by water injection)

as much as possible in order to prevent excessive gas saturation from developing in the

reservoir. It is possible to substantially increase oil recovery from a reservoir by this

technique and it should be taken advantage of at every opportunity.

Effect of Reservoir Rock Wettability:

It has been observed that intermediate wettability yields the best recovery. In a

highly water wet reservoir, the advancing water will be pulled into the smaller pore

spaces by capillary forces and at the same time the viscous forces will push the water into

the larger pore spaces. However, the water may advance more rapidly in the smaller pore

spaces, and the residual oil will be trapped in the larger pore space. In an oil-wet

reservoir, the capillary forces will tend to prevent the water from entering the smaller

pore spaces, resulting in relatively large residual oil saturations. In those reservoirs having

an intermediate wettability, the capillary forces will not govern the advance of the water

front, but the viscous forces will push the water into all the pore spaces, resulting in

maximum oil recovery.

3
Predicting Reservoir Performance:

Schilthuis developed an equation for calculating water influx under steady state

condition as:

We = K  (Pi - P) dt

where

We = gross water influx, bbl

Pi = initial boundary pressure, psi

P = boundary pressure at some later time, psi

t = time, days

K = water influx constant, bbl/day/psi

The compression of the void spaces in the reservoir rock due to pressure drop has

got effect on performance similar to that of water influx. It is difficult to separately note

the effect of the two in the reservoir; hence a combined term for the two effects called

effective water compressibility is used.

It has been seen that the process of water influx is in reality an unsteady state

phenomenon. In the combination drive reservoirs, however, the use of schilthuis steady

state equations is possible with reliable results because the water influx rate is small

compared to the other driving forces. The water influx constant K could be found from

past production data, and then this same value of K could be used for performance

prediction.

4
 Unsteady state water influx equation was developed by Hurst; and van Everdingen

and Hurst. This equation has been developed from the constant terminal pressure solution

of the diffusivity equation describing the reservoir behaviour.

van Everdingen and Hurst equation can be written as:

2   C r2 e h  p Q(t)
We = --------------------------------
5.615

or

We = 1.119  C r2e h  p Q(t)

or

We = B.  p. Q(t)

where

B = 1.119  C r2e h, constant, bbl/psi

p = pressure drop, psi

Q(t) = dimensionless water influx.

This phenomenon of water influx being unsteady state, it should be realized that

for longer time duration, the effect of pressure drop can be accounted for only by using

the principle of superposition. If a long interval is chosen for which p is the pressure

drop, then while the influx is taking place from the aquifer to the reservoir during the first

part of the chosen time interval, the influx due to the second (or the subsequent) part of

the time also takes place, hence the cumulative water influx is the result of superposition

5
of a series of water influx superimposed during the given time interval. This can be

expressed as :

We = B  p x Q(t)

The value of B is modified, if the water encroaches through a fraction of the

reservoir periphery only. It has been reported that instead of using the entire pressure drop

for the first period a better approximation is to consider that one-half of the pressure drop,

1/2 (Pi - P1), is effective during the entire first period. For the second period the effective

pressure drop then is one-half of the pressure drop during the first period, 1/2 (Pi - P1),

plus one-half of the presence drop during the second period, 1/2. (P1- P2) which simplifies

to:

1/2 (Pi - P1) + 1/2 (Pi - P2) = 1/2 (Pi - P2)

Similarly, the effective pressure drop for use in the calculation for the third period

would be equal to 1/2 (Pi - P3)

Example calculation

In typical water drive reservoir, the water influx at the end of

(I) Six month (Pi = 2500 psi, P1 = 2490 psi) is calculated as :

B = 1.119  Cr2e h

= 1.119 x 0.20 x (1.0 x 10-6 ) x (2000)2 x 25

= 22.38 bbl/psi

6.323 x 10-3 kt 6.323 x 10-3 x 100 (t)

tD = ------------------------- = -------------------------------------------
  C r2 0.80 x 0.20 x 1.0. x 10-6 x (2000)2

= 0.99 (t)

6
 tD = 0.99 x 182.5 = 180.6

Q(t) from table of Q(t) vs tD

= 69.46

Therefore We = B x P x Q(t)

= 22.38 x 1/2. (2500 - 2490) x 69.46

= 7773 bbl.

(ii) Water influx at the end of one year (P2 = 2472 psi) is calculated as :

 p = 1/2 . (Pi - P2 ) = 1/2. (2500 - 2472)

= 14 psi.

The first pressure drop, pi - p1 has been effective for one year, but the second

pressure drop, p1 - p2 , has been effective only for 6 months. Separate calculations must

be made for the two pressure drops because of this time difference and the results added

in order to determine the total water influx.

tD (1 year) = 0.99 x 365 = 361, Q(t) = 123.5

tD (6 months) = 0.99 x 182.5 = 180.6, Q(t) = 69.46

Therefore, We = B   p x Q(t)

= 22.38 (5 x 123.5 + 14 x 69.46)

= 22.38 (618 + 972 ) = 22.38 x 1590

= 35,584 barrels.

Use of the unsteady state equation in predicting Reservoir Performance :

The principal utility of the unsteady state water influx equation is in the prediction

of reservoir performance, although this equation alone can not be used because there are

7
two unknown, water influx and pressure. Commonly Material Balance equation is used

along with water influx equation for performance prediction.

Procedure for performance analysis :

1. Collect all necessary reservoir and PVT data

2. Calculate the value of B, the water influx constant from the best available data,

B = 1.119  C h r2

3. Check the validity of B, water influx, We is found at different time intervals and B is
calculated as :

We (mb)
B = ---------------------
  p x Q(t)

The apparent value of B is plotted against the corresponding value of Np and the most

likely value of B is chosen from the best horizontal line. This value of B is normally used

for all future calculations after verification from its value computed as in step 2.

4. Water influx over the past history of the reservoir is next calculated using both

unsteady state equation and the material Balance equation. These two should

agree if the average value of B has been used in the unsteady state equation.

5. On the basis of the past production history of the reservoir the following curves

are usually drawn:

A. Gross water influx vs. Time (and cum oil).

B. Net water influx vs. Time (and cum. oil).

C. Net change in gas cap vs. Time (and cum. oil).

These calculated values are then compared to actual performance data to determine

whether the calculated values are indicative of actual behaviour.

8
6. Prediction of Future Reservoir Behaviour.

A. Selection of a combination of oil, gas and water production rates, which will

hold throughout the prediction period.

B. The first step is the estimation of the reservoir pressure at the end of the first

trial period (say six months). Gross water influx is calculated by both the

equations. If the results agree then the first estimated pressure is correct; if not,

then another pressure must be selected and the procedure repeated until

agreement is reached.

C. Additional calculations are repeated for additional equal time intervals until the

desired range of reservoir history has been studied.

7. Several different combination of oil, gas and water producing rates should

be used, and a complete prediction made for each set of values. The advantage of

having these different combinations of withdrawal rates is that if for any reason

the withdrawal rates are changed in the future from these expected, a set of

performance curves will already be available for the altered production condition,

and an entirely new study will not be required.

Validity of Performance Predictions :

The simultaneous solution of the unsteady state water influx equation and the MB

Equation is dependent on the following assumptions :

1. The two equations represent independent methods of solving for identical quantities.

2. An error in boundary pressure results in a deviation in the calculated water influx by

the unsteady state equation which is opposite in direction from the same deviation in

water influx as calculated by the MB equation.

9
3. Errors in the initial volumes of oil and gas in place result in erroneous calculations by

the MB equation but do not effect the water influx calculated by the unsteady state

equation.

4. Errors in production data or in PVT data will result in erroneous calculations of water

influx by the MB Equation, but do not affect results obtained by the unsteady state

equation.

As a result of these four factors, when agreement is finally reached between water

influx calculated by both the MB and unsteady state equations, the data will have usually

been adjusted with sufficient accuracy to permit reliable predictions of reservoir

performance. A good practice is to check the sensitivity of the results due to various

parameters, which constitute the outcome.

Limitations in Performance Predictions:

If the simultaneous solution technique results in the good match of the past

performance, the future predictions could be expected to be reasonably reliable. However,

there are some points to be kept in mind while accepting the validity of the future

predictions:

1. Extent of the Aquifer:

The solution of the diffusivity equation is based on the size of the aquifer. A large

aquifer (usually this is true) compared to oil reservoir size provides the basis of

assumption of infinite size of the aquifer. Therefore the obvious limitations of the

performance prediction will be when the solution assumes infinite size aquifer, but at a

later date the expansion of water reaches the border of the aquifer:

10
2. Determination of the value of B:

The MB equation is not a good tool for calculating water influx, particularly in

use of week water drive reservoir, as the value of water influx is obtained by subtracting a

large number from another large number. (Reservoir fluid production - reservoir fluid

expansion). When reservoir pressure changes, only slightly, small errors in pressure

measurement can cause relatively large errors in the fluid expansion term and

consequently in the calculated water influx. The use of an average value of B at several

different times reduces the magnitude of any potential errors.

3. Selection of time intervals in Performance Prediction:

The accuracy of the technique is dependent on the length of time between periods,

the shorter the time, the more accurate the calculations. Periods of three or six months are

usually sufficiently reliable for most calculations.

11
 GAS CAP DRIVE RESERVOIRS

Prof. T. Kumar
Dept. of Petroleum Engg.

Gas cap drive reservoirs can be identified by the presence of a relatively large
gas cap with little or no water drive. Due to the ability of the gas cap to expand readily,
these reservoirs are characterized by less rapid pressure decline than the same size
depletion drive reservoir. Other characteristics of gas cap drive reservoirs are their lack
of water production and rapidly increasing gas-oil ratio in structurally high wells as the
gas cap expands into the oil zone.

Oil recovery by gas cap expansion is actually a frontal drive displacing

mechanism. Recovery efficiency is therefore, normally considerably larger than in
depletion drive reservoirs, since a gas saturation is not being formed throughout the
reservoir at the same time. Figure 1 shows the relative positions of the gas and oil at
different times in the producing life of the reservoirs.

As the size of the gas cap increases, the ultimate oil recovery will also be
increased. This is illustrated graphically in Figure 2. Vertical permeability and
reservoir oil viscosity are also important factors in determining the recovery efficiency.
Good vertical permeability will permit the oil to move downward with less bypassing
of gas. As oil viscosity increases the amount of gas bypassing will also increase.

In order to conserve gas, and thereby increase ultimate oil recovery, it is

necessary to shut in wells, which produce excessive gas. In areas where production is
subject to proration or where inequities with royalty owners may occur, it is usually
desirable to transfer the allowables of wells producing with high gas-oil ratios to wells
producing with low gas-oil ratios. This has the desirable effect of reducing the gas
withdrawal rate without reducing the oil-producing rate.
 Gas, as a displacing fluid is limited in its efficiency primarily because of two
factors: (1) the unfavourable viscosity ratios promote fingering of gas with consequent
early breakthrough and (2) gas is normally the nonwetting phase and will preferentially
pass through the larger pore spaces, leaving oil trapped in the smaller pore spaces.
Once this oil has been bypassed, much of it will never be recovered. Figure 3 shows a
comparison of displacement in individual pores of a reservoir rock by water and by
gas. Water will usually maintain a more uniform front than the gas, the capillary forces
causing the water to invade the smaller pore spaces while the viscous pressure forces
the water into the larger pores. The result is more complete oil displacement at water
breakthrough.

Ultimate oil recovery from gas cap drive reservoirs is greater than comparable
recovery from depletion drive reservoirs. Recovery will vary, depending on the size of
the original gas cap, the vertical permeability, reservoir oil viscosity, and the degree of
conservation of the gas, but as a rule of thumb ultimate recovery will vary from 20
percent to 40 percent of the original oil in place.

Where the size of the original gas cap is not large, and reservoir pressure
decreases rapidly as oil and gas withdrawals continue, gas saturation throughout the oil
zone is formed by release of gas from solution from the oil. With the creation of this
uniform gas saturation throughout the oil zone, it becomes increasingly difficult to
maintain a gas “front” to displace the oil. Gas begins to flow very rapidly at even small
saturations, therefore, its prohibitive gas-oil ratios are to be prevented, and reservoir
pressure should be maintained as near the saturation pressure possible. Recovery
efficiency is dependent to a large extent on the ability to maintain the reservoir
pressure near the saturation pressure.

As a gas cap can expend only as a result of pressure reduction in the reservoir,
it follows that some gas will also be evolved. By successive pressure reductions two
important events will occur: (1) the effective permeability to oil will be decreased as a

2
result of the increased gas saturation, and (2) the effective permeability to gas will be
increased thereby increasing the flow of gas. This may result in a producing
mechanism, which is actually a solution gas drive mechanism.

The formation of the free gas saturation in the oil zone cannot be prevented
without resorting to pressure maintenance operations. Therefore, in order to achieve
maximum benefit from a gas cap drive producing mechanism, gas saturation in the oil
zone must be kept to an absolute minimum. This can be accomplished by taking
advantage of gravitational segregation of the fluid. In fact, an efficiently operated gas
cap drive reservoir must also have an efficient gravity segregation drive. As the gas
saturation is formed in the oil zone it must be allowed to migrate up structure to the
gas cap. Thus, a gas cap drive reservoir is in reality a combination drive reservoir,
although it is not usually considered as such.

Lower producing rates will permit the maximum amount of free gas in the oil
zone to migrate to the gas cap. Therefore gas cap drive reservoirs are rate sensitive, as
lower producing rates will usually result in increased recovery.

In a large number of cases it will be desirable to install gas return facilities in

order to maintain reservoir pressure. This is especially true where, due to some
structural features of the reservoir, it is impossible to control gas-oil ratios. The
installation of gas return facilities is largely an economic measure, it being necessary to
first determine whether the cost of the pressure maintenance facilities will be more
than rapid by the increased oil recovery.

Effect of Producing Rate on Ultimate Recovery:

The effectiveness of oil displacement from the reservoir is dependent largely on
the maintenance of a uniform gas front. Slow withdrawal rates will promote the
uniformity of this front by causing less fingering of the advancing gas and also

3
allowing maximum gravitational segregation. Therefore, low production rates will
increase ultimate recovery.

Unfortunately, it is difficult to calculate the effect on ultimate recovery of

varying withdrawal rates. All of the equations normally used in predicting reservoir
behaviour are not rate sensitive, and therefore the rate effect cannot be studied. Past
experience with the reservoir or similar reservoirs can usually be relied upon to show
the effect of producing rate.

Predicting Reservoir Performance:

The material balance equation, the instantaneous gas-oil ratio equation, and the
oil saturation equation are used to determine the future behaviour of the reservoir. The
Tarner method usually provides a reliable solution to the problem.

The principal objectives in a study of a gas drive reservoir are:

1. Determination of past changes in gas-oil contact.
2. Determine maximum efficient producing rate for the reservoir.
3. Determine future changes in the gas-oil contact at various times. This will be
invaluable in determining the need for additional wells, remedial work, and
shutting in of high gas-oil ratio wells.

The objective in operating any reservoir is to take advantage of the most

efficient displacing mechanism available. In the case of a reservoir with a large gas cap
and no water drive, the expansion of the gas cap will normally provide the most
efficient displacing energy. It is particularly important in any reservoir with an original
free gas cap to prevent shrinkage of the gas cap. If the gas cap is permitted to shrink,
then oil saturation will be established in a portion of the reservoir, which hitherto had
no oil saturation. There is always some minimum oil saturation below which it is
impossible to reduce the oil saturation. Therefore, the residual oil saturation remaining

4
in the gas zone is lost oil, which would have been recoverable if the gas cap had not
been permitted to shrink.

Equations Used:
. The Tarner method is generally used in predicting performance of gas cap drive
reservoirs. The material balance equation and the instantaneous gas oil ratio equation
are solved simultaneously for the amount of gas produced during the period selected. It
may be necessary to also revise the equation for calculating oil saturation, as some of
the gas may move up structure to the gas cap. The material balance equation is
rearranged as follows:

N [ (Bt - Bt1) + mBti (Bg/Bgi - 1) ] - Np (Bt - RsiBg)

Np x Rp = ------------------------------------------------------------------- ……. (1)
Bg

Prediction of reservoir performance is then made following the earlier procedure.

5
 COMBINATION DRIVE RESERVOIRS
Prof. T. Kumar
Dept. of Petroleum Engg.

When a reservoir is being produced by the combination of two or more drive

mechanisms, it is known as combination drive reservoir. Two combinations of driving
forces are commonly found, namely, (a) depletion and a week water drive, and (b)
depletion drive with a gas cap and a week water drive. Gravity segregation can play an
important role in any of the other drives. The effects of gravity drainage are often
difficult to evaluate and predict in most reservoir engineering studies, because, the
main important equation for such studies, MB Equation can not be readily utilized to
study gravity drainage effects. However, where this effect is to be accounted, its effects
are incorporated in performance data like relative permeability curve. A field relative
permeability curve can be used which accounts for this effect.

Characteristics:
1. Relatively rapid pressure decline. Water encroachment and/or external gas cap
expansion are insufficient to maintain reservoir pressures.
2. Water encroaching slowly into the lower part of the reservoir. Structurally low
producing wells will exhibit slowly increasing water producing rates.
3. If a small gas cap is present the structurally high wells will exhibit continually
increasing gas-oil ratios, provided the gas cap is expanding. It is possible that the
gas cap will shrink due to production of excess free gas, in which case, the
structurally high wells will exhibit a decreasing gas-oil ratio. This condition should
be avoided whenever possible, as large volumes of oil can be lost as a result of a
shrinking gas cap.
4. As a substantial percentage of the total oil recovery may be due to the depletion
drive mechanism, the gas-oil ratio of structurally low wells will also continue to
increase due to evolution of gas from solution from oil throughout the reservoir as
pressure is reduced.
 Figure below shows production history of a typical combination drive reservoir
with a weak water drive and no initial free gas cap. Note that the producing gas-oil ratio
remains relatively constant for a period of time. This indicates that the reservoir
pressure is above the saturation pressure. When the gas oil ratio begins to increase it is
probably due to the fact that the reservoir pressure has been reduced below the
saturation pressure and the increasing gas-oil ratio is the result of evolution of
dissolved gas from the oil.
PRESSURE

GOR or WOR
Pressure
RESERVOIR

GOR
WOR

CUMULATIVE OIL PRODUCTION

FIG. 1 PRODUCTION HISTORY- COMBINATION DRIVE RESERVOIR

Ultimate recovery form combination drive reservoirs is usually greater than that
from depletion drive reservoirs but less than that from water drive or gas cap drive
reservoirs. Actual recovery will depend upon the degree to which it is possible to
reduce the magnitude of recovery by depletion drive. In most combination drive
reservoirs it will be economically feasible to institute some type of pressure
maintenance operation, either gas injection, water injection, or both gas and water
injection, depending upon the availability of the fluids.

2
Indexes of Drives:
The efficiency of operation by various drive mechanisms in the
combination drive is possible to be evaluated by rearranging the Material Balance
equation.
The generalized MBE is written as:

Np [ Bo + ( Rp - Rs ) Bg ]
= N [mBoi (Bg/Bgi - 1) + (Bo - Boi ) + (Rsi - Rs) Bg ] + (We -Wp ) (1)
or Np Bo = N (Bt - Bti) + m N Boi ( Bg/Bgi - 1)
+ (We - Wp ) - Np (Rp - Rs) Bg (2)
Bt = Bo + (Rsi - Rs ) Bg (3)
and
N(Bt - Bti ) = N[ (Rsi - Rs) Bg + (Bo - Boi ) ] (4)

LHS is the expansion of the original reservoir oil volume with all of its original
dissolved gas. After reservoir pressure declines below saturation pressure, some of the
original dissolved gas will be evolved from solution and will occupy space as free gas
in the reservoir. Some of the free gas so evolved from the reservoir oil may be
produced.

The term Np (Rp - Rs) Bg is the free gas produced which can be divided into two
parts gas cap gas production and free dissolved gas production.

Let ‘f’ be defined as the fraction of produced free gas which comes from the gas
cap, then the free gas production can be separated as follows:
Gas cap gas production = f Np (Rp - Rs) Bg (5)
Free Dissolved Gas production
= (1 - f) Np (Rp - Rs) Bg (6)

3
 The term m N Boi (Bg/Bgi - 1) is the expansion of the original free gas cap.
Some of the gas cap may be produced, given in the equation (5) will have to be
subtracted to get gas cap expansion. Similarly N (Bt - Bti ) represents the expansion of
the original reservoir oil with its dissolved gas, so free dissolved gas production given
in the equation (6) will have to be subtracted from N (Bt - Bti ) to get the net expansion
of the original reservoir oil with all of its original reservoir dissolved gas.
We - Wp is the next water influx term.
Rearranging the equation (2) as previously discussed yields:
Np Bo = [ N(Bt - Bti ) - (1 - f) Np (Rp - Rs) Bg ]
+ [mNBoi (Bg/Bgi - 1) - f Np (Rp - Rs) Bg ] + (We - Wp ) (7)

The first bracket term in the equation (7) is the net expansion of the reservoir oil
with its dissolved gas and the second bracketed term is the net gas cap expansion. Thus
equation (7) shows that the reservoir oil produced is a result of the combined effect of
(1) net expansion of the reservoir oil with its original dissolved gas, plus (2) the net gas
cap expansion and, plus (3) net water encroachment. Dividing equation (7) by Np Bo :

[ N (Bt - Bti ) - (1 -f) Np (Rp - Rs ) Bg ]

1 = -----------------------------------------------
Np Bo

[ mNBoi (Bg/Bgi - 1 ) - f Np (Rp - Rs) Bg ]

+ -------------------------------------------------------
Np Bo

(We - Wp )
+ ------------------ (8)
Np Bo

The three terms on RHS are the Depletion Drive, Gas cap Drive, and the Water Drive
Index respectively.

4
 Determining the fraction of the produced gas which comes from the gas cap
may be difficult at times, although usually enough production and reservoir engineering
data will be available to satisfactorily determine this number. The usual method of
determining f is to determine the change in gas-oil contact from producing wells, after
which, with a knowledge of the reservoir size the amount of gas cap gas production can
be calculated.

The sum of the drive indexes will be equal to 1. Thus to increase one of them,
the other(s) would have to be decreased. The approach should be to utilize the most
efficient drive i.e. water drive and minimize depletion drive index. Where water drive
is weak, then energy provided by gas cap expansion should be used. While utilizing the
gas cap expansion energy, the conservation of gas cap must be considered for its
effective utilization. This can be done by avoiding gas production from gas cap.

Water drive index can be increased by shutting in wells producing very large
quantity of water. Reducing the oil production rate could result in an increased water
drive index and correspondingly decreased depletion drive index containing a weak
water drive.

The recovery by gas cap drive in general is not rate sensitive, as the gas is
readily expansible. However, where the vertical permeability is low, the expansion of
gas cap could be limited, hence, gas cap drive index could be rate sensitive.

Ideally, for more efficient reservoir operation, if the depletion drive index can
be reduced to zero, relatively good recovery can be expected from the reservoir. This is
difficult, because, it requires complete maintenance of reservoir pressure. The drive
indexes should be evaluated at regular intervals in order to understand the type of
drives operative in the reservoir at various time intervals and also to take decisions to
change them to get advantage of the drive mechanism which will have maximum
efficiency.

5
Predicting Reservoir Performance:
The method of predicting the future reservoir performance of the combination
drive reservoir is same as of depletion drive reservoir given by Tarner. However, the
MB equation and oil saturation equation have to be rewritten for combination drive
reservoir.

1. MBE which includes both an original free gas cap and water encroachment is:

Np Rp = 1/Bg [ N(Bt - Bti ) + mN Boi ( Bg/Bgi - 1) + (We - Wp)

+ Np Rs Bg - Np Bo ] (9)

2. MBE which includes a weak water drive without an original free gas cap.
A. Equation for pressures above the saturation pressure:

Np/N = (Bo - Boi)/Bo + (We - Wp)/NBo (10)

B. Equation for pressures below the saturation pressure:

N(Bt-Bti ) + (We - Wp) + Np Rs Bg - Np Bo

NpRp = ------------------------------------------------------------- (11)
Bg

3. Oil Saturation Equation:

Let A1 = Average cross-sectional area of the gas-invaded position of the reservoir,
acres.
A2 = Average cross-sectional area of the water-invaded portion of the
reservoir acres.
h1 = Thickness of the gas-invaded zone in the reservoir, ft.
h2 = Thickness of the water-invaded zone in the reservoir, ft.

6
  = Porosity of the reservoir, fraction
Sorg = Residual oil saturation in the gas-invaded portion of the reservoir,
fraction.
Sorw = Residual oil saturation in the water-invaded portion of the reservoir,
fraction.
So (at any time)
Remaining oil in the Remaining oil zone
= ----------------------------------------------------- (12)
Remaining oil zone size.

Remaining oil in the remaining oil zone = Total remaining oil zone -Oil volume in the
bypassed zone.

= (N - Np) Bo - [ 7758 A1h1  Sorg + 7758 A2 h2  Sorw ] (13)

Also :

Remaining oil zone size = Original Oil zone size - Size of the bypassed zones

NBoi
= ---------- [ 7758 A1h1  + 7758 A2h2  ) (14)
1-Swi

Sq + Sorg + Swi = 1 (15)

or Sg, the increase in the gas saturation in the gas invaded zone over Swi

= 1 - Swi - Sorg (16)

7
 mN Boi (Bg/Bgi - 1 )
7758 A1h1  = ----------------------------- (17)
1-Swi - Sorg

Similarly,

Sw + Swi + Sorw = 1 (18)

Sw’ Increase in water saturation in the water-invaded zone of the reservoir, above Swi

= 1 - Swi - Sorw (19)

We - Wp
7758 A2h2  = ------------------- (20)
1-Swi - Sorw

Combining the equations (10), (13), (14), (17) and (20) results in

mNBoi(Bg / Bgi - 1 ) Sorg ( We - Wp) Sorw

(N-Np) Bo [ ----------------------------------- + -------------------
1 - Swi - Sorg 1 - Swi - Sorw
So = ------------------------------------------------------------------------------ (21)
NBoi mNBoi (Bg/Bgi - 1) We - Wp
-------- - ---------------------------- + ---------------------
1-Swi 1 - Swi - Sorg 1-Swi - Sorw

If the amount of gas cap gas which is produced is either known or can be
assumed, then equation (21) can be modified to take this into consideration.

8
 (1-f)mNBoi(Bg/ Bgi - 1 ) Sorg ( We - Wp) Sorw
(N-Np) Bo - [ ----------------------------------- + ------------------- ]
1 - Swi - Sorg 1 - Swi - Sorw
So = ------------------------------------------------------------------------------ (22)
NBoi (1-f)mNBoi (Bg/Bgi - 1) (We - Wp)
-------- - [ ---------------------------- + --------------------- ]
1-Swi 1 - Swi - Sorg 1-Swi - Sorw

where

f = fraction of gas cap expanded volume which is produced.

Where all of the expanded gas cap gas is produced equation (22) reduces to:

(We - Wp) Sorw

(N-Np) Bo - --------------------
1 - Swi - Sorw
So = ------------------------------------------------ (23)
NBoi (We - Wp)
---------- - ---------------------
1- Swi 1-Swi - Sorw

It is very important to select the proper oil saturation equation, as the relative
permeability relationships are critical functions of oil saturation. Therefore,
determination of correct oil saturation equation is an important step in a reliable
predication of reservoir performance.

4. Instantaneous Gas-Oil Ratio equation which is used for prediction is given as:

R = Kg/Ko . o/g . Bo/Bg + Rs (24)

As given earlier, the prediction will involve the calculation of gas produced by
MBE and GOR eqn. independently for an assumed value of Np. If the values of gas
produced by both the equations are same, then the assumption of Np is taken as the

9
correct value, otherwise the calculation repeated with new assumed Np value till the
correct value is obtained. This process is continued till the Np value is reached
corresponding to the abandonment pressure. Finally, Pressure vs Np and GOR vs. Np
are plotted as the performance curves.

aks/2000

10
 MATERIAL BALANCE EQUATION AND ITS APPLICATIONS

Prof. T. Kumar
Dept. of Petroleum Engg.

The material balance equation originally presented by Schilthuis is one of the

means of understanding the reservoir behaviour under different operating conditions. The

material balance equation is derived as a volume balance which equates the cumulative

observed production, expressed as an underground withdrawal, to the expansion of the

fluids in the reservoir resulting from a finite pressure drop.

The changes in reservoir volumes due to a finite pressure drop p take place as

shown in figure 1. The original reservoir volume at pressure pi consists of gas cap gas

volume and oil volume (including originally dissolved gas). The withdrawal from the

reservoir volume shown as original hydrocarbon pore volume (HCPV) associated with

pressure drop p is equivalent to the expansion of reservoir fluid volume as shown in the

figure 1(b). The original HCPV is still drawn in this diagram as the solid line. Volume A

is the increase due to the expansion of the oil plus originally dissolved gas, while volume

increase B is due to the expansion of the initial gas cap gas. The third volume increment C

is the decrease in HCPV due to the combined effects of the expansion of the connate water

and reduction in reservoir pore volume. These volume changes correspond to reservoir

fluid that would be expelled from the reservoir as production. Thus the volume balance

can be evaluated in reservoir barrels as:

1
Underground withdrawal at reservoir condition

= Expansion of oil + originally dissolved gas at reservoir condition.

+ Expansion of gas cap gas at reservoir condition.

+ Reduction in HCPV due to connate water expansion and decrease in the

pore volume at reservoir condition.

+ Net water influx into the reservoir.

For the equation to be written with nomenclature, the definitions of various terms

are given below:

N = initial oil in place in stock tank volume

= V  (1 - Swc)/Boi

Initial hydrocarbon volume of the gas cap

m = --------------------------------------------------
Initial hydrocarbon volume of the oil

Np = Cumulative oil production in stock tank condition

Cumulative gas production

Rp = -----------------------------------
Cumulative oil production

Expansion terms in the material balance equation can be evaluated as follows: -

(a) Expansion of oil plus originally dissolved gas

= Liquid expansion + liberated gas expansion

= N (Bo - Boi) + N (Rsi - Rs) Bg ... (1)

(b) Expansion of the gas cap gas

2
 = Reservoir volume of gas at reduced pressure-original volume of gas cap.

= (mNBoi/Bgi). Bg - mNBoi

= mNBoi ( Bg/Bgi - 1) ..... (2)

(c) Reduction in the HCPV due to the connate water expansion and decrease in

pore volume.

= (CwVw + CfVf)  p

where Vf = total pore volume = HCPV/(1 - Swc)

and Vw = connate water volume = Vf x Swc

(HCPV) Swc
= ---------------------
(1 - Swc)

Since the total pore volume including the gas cap = (1 + m) NBoi then the HCPV
reduction
CwSwc + Cf
= (1 + m) NBoi [-------------------]  p .... (3)
1 - Swc

(d) Net water influx into the reservoir

= Cumulative water influx from the aquifer into the reservoir.

− Cumulative amount of aquifer water produced

(expressed at reservoir condition)

= We - Wp Bw.

Bw is generally close to unity since the solubility of gas in water is rather small and this

condition will be assumed.

3
 So, Net water influx = We - Wp .... (4)

(e) Underground withdrawal of oil & gas

= Oil withdrawal + gas withdrawal

= NpBo + Np (Rp - Rs) Bg

= Np [ Bo + (Rp - Rs) Bg ] .... (5)

Now equating withdrawal term to the sum of the volume changes as given in equations (1)

to (4), we have,

Np [ Bo + (Rp - Rs) Bg ] = N (Bo - Boi) + N (Rsi - Rs) Bg

Bg
+ mNBoi ( ------- - 1)
Bgi

Cw. Swc + Cf
+ (1 + m) NBoi ( ------------------------)  p + (We - Wp)
1 - Swc

(Bo - Boi ) + (Rsi - Rs) Bg

Or Np [ Bo + (Rp - Rs ) Bg ] + NBoi [---------------------------------------
Boi

Bg C w S w + Cf
+ m ( ------ - 1) + (1 + m) ( ------------------)  P ] + (We - Wp) ... (6)
Bgi 1 - Swc

Although the equation appears a little intimidating at first sight, it should be thought of as

nothing more than a sophisticated version of the compressibility definition,

4
 dV = C x V x p

Production = Expansion of reservoir fluids.

MATERIAL BALANCE EXPRESSED AS A LINEAR EQUATION

Havlena and Odeh described the technique of interpreting the material balance as

the equation of a straight line and its application to reservoir case histories:

To express equation (6) in the way presented by Havlena and Odeh requires the

definition of the following terms:

F = Np [ Bo + (Rp - Rs) Bg ] + Wp .... (7)

which is the underground withdrawal;

Eo = (Bo - Boi) + (Rsi - Rs) Bg ... (8)

Which is the term describing the expansion of the oil and its originally dissolved gas;

Eg = Boi ( Bg/Bgi - 1) ..... (9)

describing the expansion of gas cap gas,

Cw S w + Cf
Ef, w = (1 + m ) Boi ( -------------------) p ..... (10)
1 - Swc

for the expansion of the connate water and reduction in the pore volume.

Using these terms, the material balance equation can be written as:

F = N (Eo + mEg + Ef, w ) + We .... (11)

5
Case I: No initial gas cap and negligible water influx and for which the connate water
and rock compressibility term may be neglected.

F = NEo ... (12)

Case II: When We is not negligible, then,

F = NEo + We

Or

F/Eo = N + We/Eo ... (13)

Equation (13) is an equation of a straight line


F  F 
Eo 
  Slope = 1

 Slope = N N

Eo We/Eo

Figure of case I Figure of Case II

Case III: Undersaturated reservoir above bubble point pressure

(Bo - Boi ) (Cw Swc + Cf )  p

NpBo = NBoi [ ------------------- + ---------------------------- ]
Boi 1 - Swc

6
 Bo - Boi
Oil compressibility Co ---------------------
Boi  p

Cw Swc + Cf
Therefore NpBo = N Boi ( Co + ------------------------) p
1 - Swc

For two fluids, So + Swc = 1

CoSo + CwSwc + Cf
Therefore NpBo = NBoi ( -------------------------------)p
1 - Swc

Or NpBo = N Boi Ce p

CoSo + Sw. Swc + Cf

Where Ce = ----------------------------------------
1 - Swc

Exercise

Determine the fractional oil recovery, during depletion down to bubble point
pressure, for the reservoir whose PVT and other parameters are as below: -

Cw = 3.0 x 10-6 psi-1 Swc = 0.20

Cf = 8.6 x 10-6 psi-1

At pi = 4000 psi, Boi = 1.2417

pb = 3330 psi,

Bob = 1.2511

Solution:

1.2511 - 1.2417
Co = --------------------------------- = 11.3 x 10-6 psi-1
1.2417 (4000 - 3330)

7
 Np Boi
--- ---- Ce p,
N Bob
pb

1
Ce = ---------- [ 11.3 x 0.8 + 3 x 0.2 + 8.6 ] x 10-6 psi-1
0.8

= 22.8 x 10-6

1.2417
Recovery = -------------- x 22.8 x 10-6 x (4000 - 3330) = 1.52%
1.2511

pi p

Gas cap gas

mNBoi (rb) B

Oil + originally
dissolved gas - p → C
A

NBoi(rb)

(a) (b)

Fig. Volume changes in the reservoir associated with a finite pressure drop
p (a) Volumes at initial pressure (b) at the reduced pressure.

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