SPE 40036
Economic Evaluation of the Use of Well Logs for Diagnosing Conformance Problems
Gary Frisch, SPE, Halliburton Energy Services Inc., Larry Graham, SPE, Halliburton Energy Services Inc., and
Dennis Wyatt, SPE, Halliburton Energy Services Inc.
Copyright 1998, Society of Petroleum Engineers, Inc.
This paper was prepared for presentation at the 1998 SPE Gas Technology Symposium held
in Calgary, Alberta, Canada, 15–18 March 1998.
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Abstract
Unwanted water production may adversely affect well
economics because of water-disposal costs, environmental
issues, and reduced hydrocarbon production. This paper
presents examples of how openhole and cased-hole logs can
help determine the type and location of water entry, and
indicate appropriate conformance treatments. Selected logs run
following the treatments are used to evaluate the treatments.
The cost of running the logs and applying the indicated
conformance treatments is compared with the cost of water
disposal and declining petroleum production.
Specific examples show that casing leaks, cement channels,
coning, and watered-out reservoirs may all be easily identified
and located through the use of openhole, production, pulsed
neutron, casing inspection, and cement evaluation logs. Not all
of these logs need be run in every well; thus, in each well,
existing information was thoroughly studied to determine the
most cost-effective diagnostic logging program.
The diagnostic information provided by the logs was useful
in selecting appropriate conformance treatments. Many of the
same logs used in diagnosing the water-production problems
were found to be valuable in evaluating the effectiveness of the
performed treatment. In some cases, follow-up treatments were
suggested by the evaluation of the initial treatment and were
the difference between successful rejuvenation of hydrocarbon
production and continued declining well performance.
The costs of the logs used for conformance diagnosis and
treatment evaluation were compared to the possible long-term
costs of water disposal, environmental considerations, and
reduced production from the well and were found to be
relatively inexpensive.
Introduction
Conformance is the management and alteration of water and
gas flow to optimize the production of hydrocarbons from a
reservoir. It is estimated that oil and gas producers spend $45
billion annually on unwanted water and gas production. It has
been forecast that in the Middle East, more than $10 billion
will be spent on water disposal over the next 10 years, and in
the Gulf of Mexico, more than 15,000 wells could be
abandoned over the next 3 years because of annular gas
leakage. Clearly, conformance can severely impact reservoir
economics and thus warrants careful study and monitoring
during the exploration and exploitation of a reservoir.
A conformance program is most effective when it is
incorporated as part of an overall reservoir development plan.
Well placement, zonal selection, drilling and completion
techniques, and production methods all contribute to the fluid
flow patterns that develop during reservoir production, and
must all be considered in the design of a conformance
program. After wells are drilled, completions must be
evaluated and production must be monitored to ensure that the
goals of the conformance program are being met and to
diagnose conformance problems that might arise.
Logging provides one of the many types of data needed in
designing and executing conformance programs. After
presenting an overview of how logs can be used in
conformance-related studies to help characterize a reservoir,
optimize drilling, and design completions, this paper focuses
on the logging services available for conformance diagnostics.
The applications of each service are discussed, log examples
are presented, and typical costs of the services are given. The
paper closes with an example of how expected conformance
logging and treatment costs can be incorporated into a
computation to determine whether these costs are
economically justifiable.
Using Well Logs for Conformance Design
Openhole logs offer a wealth of information for reservoir
characterization, well planning, and stimulation design, each of
which is an integral component of conformance design.
Reservoir Characterization. Basic gamma ray and
spontaneous potential logs allow for simple differentiation of
reservoir-type rock from nonreservoir-type rock, thereby
2 G. FRISCH, L. GRAHAM, D. WYATT
giving an indication of which formations can serve as conduits
for fluid flow and which will be barriers to fluid flow. Triple-
combo logs (resistivity, density, and neutron) and quad-combo
logs (resistivity, density, neutron, and sonic) are analyzed to
reveal a more sophisticated description of reservoir properties,
such as formation lithology, porosity, fluid types, and water
saturation, and thus give a better indication of reservoir flow
properties. Once production has begun, monitor logs can be
based on the fluid and saturation information gained from the
openhole logs.
Logging costs can vary greatly, depending on such factors
as the particular service, downhole tool conveyance (wireline,
tubing, or logging-while-drilling), well location (land or
offshore), maximum depth logged, length of the logged
interval, special analysis, and multiwell logging package
considerations. For comparison purposes, costs stated in this
paper are representative base costs for using a wireline unit to
log a 2,000-ft interval with a maximum depth of 10,000 ft in a
North American land well. These costs will be referred to as
the bases costs for the standard interval. For example, the base
cost of a triple-combo log, including gamma ray, over the
standard interval is $18;000 whereas, the base cost of a quad
combo, including gamma ray, over the standard interval is
$27,000.
Modern nuclear magnetic resonance (NMR) logs
distinguish movable fluids from immovable fluids and furnish
permeability, porosity, and pore-size distribution, allowing for
even further refinements in calculations of flow through the
reservoir. In the NMR log of Fig. 1, one can see a fining
downward sequence indicated by the increasing volume of
irreducible water from a depth of 12160 ft. to 12250 ft. The
resistivity curve in track 2 shows values less than 0.5 ohm-m
which results in water saturation values that are 75% and
more. Despite the large volume of water present in the
reservoir, the entire volume is irreducible water. NMR data is
the key to accurate understanding of the reservoir conditions
(pore size) that creates such high irreducible water fractions.
The NMR data is further used to calculate a permeability value
that is shown in track 2 with a comparison to core permeability
values.
The base cost of an NMR log over the standard interval is
$15,700.
Well Planning. Sonic and density data are combined to
calculate rock mechanical properties. Knowledge of these
properties enables drilling engineers to better plan future
drilling programs, for example, to select well orientation.
Wells oriented in the direction of minimum horizontal stress
tend to be the most stable. Such wells also have the greatest
probability of intersecting natural fractures because natural
fractures tend to be oriented in the direction of maximum
horizontal stress (in this case, perpendicular to the well path).
This intersection of natural fractures may or may not be
desirable, depending upon conformance goals.
Rock mechanical properties are also important in
SPE 40036
estimating the safe range of mud weights to be used during
drilling. The borehole stability log of Fig. 2 is based on rock
mechanical properties and indicates the minimum mud weight
below which sanding may occur and the maximum mud weight
above which formation breakdown might be induced. The
respective curves on the log are the Critical Wellbore Pressure
curve and the Fracture Initiation Pressure curve. Between these
two curves is a near-vertical curve, the Mud Pressure curve.
Over the two intervals near the bottom of the log where mud
pressure is less than the critical wellbore pressure, sanding is
possible and can cause the borehole to become extremely
rugose. In rugose sections, proper cementing is sometimes
difficult to achieve, and adequate zonal isolation may be
impossible in some cases. Caliper logs can highlight such
zones where special practices may be needed to increase the
probability of a successful cementing operation.
Formation breakdown may be undesirable if it introduces
unwanted communication between zones. In the log of Fig. 2,
the curves show that mud pressure does not exceed critical
wellbore pressure; thus, formation breakdown is unlikely.
The base cost of density and full wave sonic logs over the
standard interval is $7,100 and $9,200, respectively.
Stimulation Design. If the conformance program calls for
hydraulic fracturing, rock mechanical properties can be used to
locate fracture barriers and to estimate fracture initiation
pressure, fracture closure pressure, and fracture height. Such
information helps ensure that proper fracture characteristics
develop and thus that subsequent fluid flow is in accordance
with conformance goals. The fracture properties log of Fig. 3
is based on rock mechanical properties and presents an
integrated presentation of the completed intervals and the
design of hydraulic fracturing treatment. The fracture property
program provides an automatic zoning based on stress
constants and averages important fracture design criteria. The
program does not predict fracture growth or height but
provides input data for inclusion into a 3-D stimulator. The
standard presentation presents the rock mechanical analysis
(stress profile, Young’s modulus, and Poisson’s Ratio) next to a
standard openhole presentation. The track on the far right side
is a presentation of the post-frac tracer log that shows the pad
tracer (Scandium) and the proppant (Iridium). Notice that the
program accurately predicted the stress profile changes that
was confirmed by the radioactive tracers.
Using Well Logs for Conformance Diagnostics
During completion and production, logs can be run to reveal
and diagnose conformance problems. Such problems can be
related to cement integrity (channeling behind casing), pipe
condition (casing leaks), production operations (unwanted
production), enhanced recovery operations (breakthrough of
injection fluids), and stimulation results (out-of-zone fracture).
The following sections describe the diagnostic logging
services and give representative costs. These costs are based
on North American land prices for logging a 2,000-ft interval
SPE 40036 ECONOMIC EVALUATION OF THE USE OF WELL LOGS FOR DIAGNOSING CONFORMANCE PROBLEMS
whose bottom is located at 10,000 ft. Exact prices will depend
upon such factors as the length and maximum depth of the
logged interval, well location (land or offshore), service
package (single or multiple service; single well or multiple
well), downhole-conveyance method (wireline or tubing), tool
availability, and special data processing requirements.
Cement Evaluation
Casing is cemented in a wellbore primarily to achieve
hydraulic isolation between formations. Nevertheless,
unwanted fluid flow paths are sometimes found through or
around the cement when the borehole is rugose, when
improper practices are used in cementing the well, or after the
cement has aged over considerable time. Workover operations
can also contribute to loss of cement integrity. Three types of
acoustic logs are available for evaluating cement: the
traditional cement bond log (CBL), the multitransducer
ultrasonic acoustic log, and the more modern ultrasonic
imaging acoustic log.
Conventional CBL. In conventional CBL tools, a transmitter
is pulsed to produce an omnidirectional acoustic signal that
travels to a set of receivers along various paths through the
borehole fluid, pipe, cement, and formation. The logging
system records the received waveforms and displays them on
the log in an X-Z format along with a pipe-amplitude curve.
The pipe-amplitude curve represents the amplitude of the
acoustic signal that has traveled through pipe, but not cement
and formation, to arrive at the receivers. Interpretation of
conventional CBLs assumes that changes in this curve are
caused by changes in bonding only, provided pipe, cement,
and borehole-fluid characteristics remain constant. The
interpretation is usually able to indicate that free pipe, good
bonding, or partial bonding exists.
Free Pipe. A conventional CBL run over an interval of free
pipe is shown in Fig. 4. Because the pipe is not firmly bonded
to cement, there is minimal damping of acoustic signals
traveling directly through the pipe to the receivers. Thus, the
pipe-amplitude curve is high, and the waveform display also
indicates high pipe amplitudes. (The early-time vertical traces
on the display are dark.) Because of the poor acoustic coupling
between pipe and cement, any cement and formation signals
arriving at the receivers are of low amplitude. Thus, the
waveform display indicates low-amplitude cement and
formation signals. (Later-time traces are light gray or white.)
Over the interval displayed in this log, fluid communication
along the pipe-cement interface would be possible.
Good Bonding. A conventional CBL run over an interval
of well-bonded pipe is shown in Fig. 5. Because the pipe is
firmly bonded to cement, acoustic signals traveling directly
through the pipe to the receivers are damped. Thus, the
corresponding acoustic signals arriving at the receivers are of
low amplitude. The pipe-amplitude curve is low, and the
waveform display also indicates low pipe amplitudes (the
early-time vertical traces are light or white). Because the of the
3
good acoustic coupling between pipe and cement, cement and
formation signals arriving at the receivers are of high
amplitude. Thus, the waveform display indicates high-
amplitude cement and formation signals (mid- and late-time
traces are dark). Over this interval displayed in this log, the
cement would be expected to form a hydraulic seal.
Partial Bonding. Partial bonding exists when there is a
channel in the cement or when a microannulus exists between
casing and cement. Because cement cannot be pumped into a
microannulus, the capability to distinguish between a
microannulus and a channel can help avoid unsuccessful
squeeze-cementing operations.
When a conventional CBL tool is run in an unpressured
well, log responses to microannuli and channels are identical,
namely, pipe amplitudes are high and formation signals are
strong. However, if another logging pass is made with
additional pressure applied to the wellbore (typically, 1,000
psi) and the log indicates good bond, then a microannulus is
indicated.
The base cost of a conventional CBL over the standard
interval is $4,900.
Multitransducer Ultrasonic Acoustic Tool. The
multitransducer ultrasonic acoustic tool uses a helical array of
eight ultrasonic transducers. When a signal emitted by a
transducer encounters an acoustic interface (for example,
between casing and annular material outside casing), some the
signal energy is reflected at the interface, and some is
transmitted across the interface. The fractional amounts of
reflected and transmitted energy depend on the acoustic
impedances of the materials at the interface. Thus, the
amplitudes of the acoustic signals reflected back to a
transducer of the logging tool are a function of these
impedances. These amplitudes are measured at each of the
eight transducers and are used produce a circumferential map
of the impedances of the annular materials in contact with the
outer wall of the casing. The multitransducer ultrasonic tool is
also used to inspect casing.
Fig. 6 displays a multitransducer ultrasonic log that was
used for both cement evaluation and pipe inspection. (The use
of the multitransducer ultrasonic log for pipe inspection will be
covered in a later section.) The producing hydrocarbon-
bearing interval is located near the center of the log display.
The well had high water production, and the operator was
concerned that water might be channeling from a nearby
water-bearing interval.
The gamma ray curve in the leftmost track displays high
values which are indicative of radioactive scale buildup or
NORM (naturally occurring radioactive material) from the
high water production. On the impedance map shown in the
rightmost track, medium gray to black shading indicates that
high-impedance annular material (cement) is in contact with
the casing. White to very light gray shading indicates that low-
impedance material (fluid) is in contact with the casing. Thus,
although there may be a lack of cement over the perforated
4 G. FRISCH, L. GRAHAM, D. WYATT
zone, the intervals above and below appear to be well
cemented. The operator concluded that the high water
production was due to the producing zone watering out and
further production would not be cost effective.
The base cost of a multitransducer ultrasonic acoustic tool
over the standard interval is $6,500.
Ultrasonic Imaging Acoustic Tool. The ultrasonic imaging
acoustic tool uses a single rotating ultrasonic transducer to
produce a high-resolution, circumferential impedance map of
annular materials in contact with the outer wall of casing. For
each depth sample, 100 data points are obtained. This data can
be used to generate special log presentations for evaluating
foam cements, visualizing casing conditions, and displaying
averaged imaged results over circumferential segments of the
wellbore. Like the multitransducer ultrasonic acoustic tool, the
ultrasonic imaging acoustic tool can be used for casing
inspection.
Fig. 7 is a combined display of conventional and ultrasonic
imaging acoustic logs that was used in evaluating foam-cement
integrity. Neat cement had been displaced over the lower third
of the interval shown, while foam cement had been pumped
above. In the standard impedance map displayed in the
rightmost track, impedance values are generally fairly high
(dark-gray shading) over the neat cement, indicating good
cement integrity. By contrast, impedance values are low (light-
gray shading) over much of the interval where foam cement
had been pumped. The dilemma was whether the low
impedance values indicated foam cement (which has low
impedance) or fluids (which also have low impedance).
To help distinguish between foam cement and fluids, a
statistical variance technique has been developed to amplify
the differences in impedance between the two types of
materials. A plot based on the application of this technique is
shown in Fig. 8. (The well and interval are the same as in Fig.
7.) As in the standard impedance map, medium-gray to black
shading indicates cement presence and white to very light gray
shading suggests fluid. Although cement presence is still
questionable in a few of the foam-cement areas, placement of
the foam cement is generally fairly good. A similar specialized
plot based on the same calculation technique is available for
the multitransducer ultrasonic acoustic tool.
The base cost of an ultrasonic imaging acoustic tool over
the standard interval is $12,200.
Casing Evaluation
Many conformance problems are due to casing that is of
poor mechanical integrity. Holes caused by corrosion or wear
and splits caused by flaws, excessive pressure, or formation
deformation may contribute to unwanted entry of reservoir
fluids. Casing integrity can be evaluated with mechanical
calipers, electromagnetic devices, and ultrasonic tools.
Mechanical Calipers. Mechanical calipers use independent
spring-loaded arms to measure the internal radius of the
SPE 40036
casing. The number of arms may vary from approximately 15
to 80, depending on casing size and tool type. Because the
fractional wall coverage provided by these calipers is
relatively small, the probability of their success in finding
small holes or splits is somewhat low. Thus, their used is
limited primarily to indicating wear, distortion, and scale
buildup.
The base cost of a 40-arm-caliper log over the standard
interval is $4,600.
Electromagnetic Devices. Two types of electromagnetic
devices are used: (1) phase shift and (2) combination flux
leakage and eddy current.
Phase Shift. These devices use coil arrays to (1) generate
an electromagnetic field that permeates the surrounding casing
and (2) measure associated attenuations and phase shifts.
Computations based on these measurements yield average
casing thickness and average casing diameter.
The base cost of an electromagnetic phase-shift log over
the standard interval is $13,400.
Flux Leakage and Eddy Current. The combination of flux
leakage and eddy current (FL/EC) measurements provides one
of the most accepted methods for evaluating casing metal loss.
Coil arrays in the main body of the tool generate
electromagnetic fields in the surrounding casing that are
influenced by casing defects. Electrodes mounted on pads
extending from the main body of the tool make associated FL
and EC measurements, which are processed to furnish casing
information. The number and positioning of the pads are such
that the measurements encompass the full circumference of the
casing.
Fig. 9 displays an FL/EC log that was run over an
uncemented interval. The operator was searching for points at
which unwanted water was entering the well. The rightmost
track on the log flags casing defects and identifies each defect
as either isolated or circumferential. A defect is labeled as
circumferential if it is identified on contiguous pads that cover
at least 40% of the inner circumference of the pipe; otherwise,
the defect is labeled as isolated. The next two tracks to the left
indicate whether the defects are on the inside or outside of the
casing, and the extent to which the defects penetrate the casing
(as a fraction of casing thickness). Casing grade is determined
by defect penetration (again, as a fraction of casing thickness).
• grade A: 0.00 ≤ penetration ≤ 0.20
• grade B: 0.20 < penetration ≤ 0.40
• grade C: 0.40 < penetration ≤ 0.60
• grade D: 0.60 < penetration ≤ 0.80
• grade E: 0.80 < penetration ≤ 1.00
The vertical lines in the two tracks to the left of the Defect
Type track represent the penetration limits corresponding to
the five casing grades.
Examination of the log revealed a hole in the pipe near the
bottom of the interval shown. Significant corrosion was also
noted that could have progressed and caused additional casing
SPE 40036 ECONOMIC EVALUATION OF THE USE OF WELL LOGS FOR DIAGNOSING CONFORMANCE PROBLEMS
failure in the future. After a back-off operation, the corroded
casing was replaced. Although these diagnostic and remedial
operations increased the net capital cost of the well, net profits
were increased through lower operational costs and the
reduction of water production to zero.
The base cost of an FL/EC log over the standard interval is
$13,400.
Ultrasonic Tools. The same ultrasonic tools used for cement
evaluation can be used for casing inspection. Casing thickness
is determined from resonant casing frequency as measured
with the same transducers used in cement evaluation. Time-of-
flight measurements from these same transducers, when
combined with a mud-slowness measurement from an
additional transducer, yield casing ID and ovality information.
In the log of Fig. 6, which was run with the multitransducer
ultrasonic tool, the inner four tracks display casing ID
information provided by the four pairs of diametrically
opposed transducers. The areas shaded dark gray represent
casing; the areas shaded light gray represent cement. The
significant curves for casing evaluation are the inner casing
curves. The noticeable increases in several of the ID curves
near the middle of the displayed interval indicate perforations.
The slight decrease in ID values immediately adjacent to some
of these perforation anomalies are probably due to scale
buildup on the casing surrounding the perforations.
In the log of Fig. 8, which was run with the ultrasonic
scanning tool, casing ovality and tool eccentricity in the
borehole are plotted in the leftmost track. However, because
the casing was not deformed and good tool centralization was
maintained during the logging run, these values were usually
near zero and the corresponding curves are generally not
visible on the log.
Production Evaluation
Production logs display the volumetric flow rates of fluids
flowing in and around the casing. This information can be used
to monitor reservoir performance and to identify completion
problems such as leaking tubulars, plugged perforations, and
channels in the cement sheath. A typical production logging
toolstring consists of a flow meter, one or more fluid-
identification devices, and temperature and pressure sensors.
Flow Meters. Three types of flow meters measure the velocity
(speed and direction) of fluid flow inside the wellbore:
continuous, fullbore, and basket.
The continuous flow meter, which contains an impeller
protected by a metal cage, measures average fluid velocity at
the center of the wellbore. It is used to measure a full range of
flow rates in tubing or high flow rates in casing.
The fullbore flow meter, which contains multiple blades
that open to span the casing ID after the tool drops out of
tubing, measures fluid velocity across the entire casing ID. It is
recommended for high-angle or low-velocity wells.
The basket flow meter contains a funnel that forces all
5
fluids to flow past an impeller, where fluid velocity
measurements are made. This tool is used for station
measurements in high-angle wells where gravity segregation of
fluids is expected.
Fluid Holdup Devices. Four types of fluid holdup devices
indicate the type and fractional volume of the fluid phases
present in the wellbore: gas, fluid density, fluid dielectric, and
differential pressure.
The gas holdup device uses low-energy gamma rays to
provide a fullbore measurement of gas holdup. The fluid
density tool also uses low-energy gamma rays, but to measure
the densities of fluids flowing through a chamber in the tool.
Dielectric tools measure the dielectric constant of the fluid
passing tool sensors. Because the dielectric constant of water
is large in comparison to that of hydrocarbons, the response of
a dielectric tool is sensitive primarily to water in the flow
stream.
Differential pressure devices determine fluid density by
measuring the difference in hydrostatic pressure between two
high-resolution pressure sensors in the tool. These tools are not
applicable in horizontal wells.
In two-phase flow, phase information can be provided by
one holdup device. In three-phase flow, at least two holdup
devices are required.
Temperature and Pressure Sensors. Temperature and
pressure measurements are needed to convert measured
downhole properties to equivalent values at surface conditions.
Temperature logs can also identify water entry and exit points
in the wellbore.
Combination Production Logs. Production logs are generally
most effective when run in combination. Fig. 10 presents a log
run for an operator wishing to identify the entry point of
unwanted production. Flow phases and volumes were
determined with combined data from a fluid density device, a
dielectric tool, a continuous flow meter, and temperature and
pressure sensors. Both continuous and zonal analyses were
provided.
Track 1 displays temperature, pressure, fluid density, and
fluid dielectric (hydro) data. The depth track depicts locations
of perforations over the logged interval shown. Tracks 3 and 4
present a continuous analysis of gas and liquid, respectively,
while Tracks 5 and 6 show the zonal analysis. Track 7 records
flow meter data. The zonal analysis shows that the majority of
hydrocarbon and water production originates from the middle
perforated zone, with no production from the lower zone and
limited gas production from the upper zone.
Based on the production log analysis, the operator
abandoned an earlier plan to set a bridge plug between the
lower two zones and decided that the best conformance option
was to treat the upper and lower zones (the middle zone was
not treated). Eliminating the cost of the unnecessary plug
justified the expenditure for the production logs. Furthermore,
6 G. FRISCH, L. GRAHAM, D. WYATT
although the treatment led to an increase in operational costs
and water production, an increase in hydrocarbon production
and a decrease in water/oil ratio yielded increased total
revenue and net profit.
The base cost of a three-phase combination production log
(flow meter, two fluid holdup devices, and temperature and
pressure sensors) over the standard interval is $17,400.
Downhole Visualization
The downhole video camera utilizes a miniature video camera,
high-intensity light source, and high-data-rate fiber-optic cable
to provide real-time viewing of the downhole environment.
Scale and bacterial buildup can be viewed, fluid and solid
entry points can be observed, flow regimes can be identified,
and casing leaks and damage can be found. Fig. 11 is a single
frame from a downhole video that indicates the point of water
entry into the wellbore. The force and velocity of the water has
eroded both the cement and casing in the upper right hand
section of the picture.
The cost of the downhole video service over the standard
interval is $8,600.
Reservoir Monitoring
Pulsed neutron logs provide data for calculating water
saturation and identifying formation fluids in cased-hole
formation-evaluation and reservoir-monitoring applications.
Two types of tools are used to make the measurements for
these logs: pulsed neutron capture (PNC) and pulsed neutron
spectroscopy (PNS). Both types use a pulsed source of
neutrons and one or more detectors to sense gamma rays
resulting from the interactions of the generated neutrons with
borehole and formation materials. PNC tools are generally run
in areas with high-salinity formation waters; whereas, PNS
tools are usually run in areas where formation waters are of
low or unknown salinity.
Pulsed neutron tools can also be used to detect and
quantify water flowing past the tool during logging. When
water moves past the neutron generator, oxygen is activated by
high-energy neutrons to form a radioactive isotope. This
isotope decays with the emission of gamma rays, which can be
sensed by detectors in the logging tools. Computations from
dual-detector data can yield water velocity, and spectral
analysis can indicate whether the water is flowing inside or
outside casing. Thus, oxygen activation data can be used to
detect channels outside casing, leaking tubulars, and water
production, and are particularly useful in highly deviated
wells.
Fig. 12 shows a PNC log run to monitor production from
two zones. Both zones had been perforated and gravel packed,
and production was assisted with gas lift valves. In Track 2,
activity on the oxygen activation curve (OAI) near the bottom
of the lower perforated interval indicated water entry. In Track
3, the formation sigma curve (SGFM) decreases near the top
of the lower interval to indicate a gas/water contact, while in
Track 1, the borehole sigma curve (SGBH) decreases to
SPE 40036
indicate gas production. Between the lower and upper
intervals, a reduction in flow velocity where tubing size
increases causes a reduction in the OAI values. OAI values
increase near the top of the upper interval, where fluid exits
the gravel pack screen. Flow velocities increase when the fluid
encounters a restriction entering the production tubing and
further up when the fluid enters the gas lift valve; in both
cases, OAI values decrease.
The cost of a PNC log over the standard interval is
$10,600.
Fig. 13 presents a PNS log that indicates crossflow
involving the three perforated zones shown in the depth track.
The oxygen activation curve (OAI) in the rightmost track
displays initial activity across the bottom set of perforations to
indicate water entry into the wellbore. OAI values increase at
the middle set of perforations to imply further fluid entry into
the wellbore. The cessation of OAI activity at the top of the
upper set of perforations suggests that the fluids produced
below are not traveling any farther up the wellbore and thus
must be flowing into the upper zone.
The cost of a PNS log over the standard interval is
$14,000.
Treatment Evaluation
Radioactive tracers can be used to evaluate the placement of
materials pumped during stimulation operations. Different
tracers can be used during different stages of the pumping
operations or during the treatment of different zones. Spectral
data gathered by modern gamma ray logging tools allow the
signals from the different tracers to be distinguished from one
another and the downhole tracer locations to be determined.
Such information is vital in verifying actual treatment height.
The cost of a spectral gamma log over the standard interval
is $7800.
Economic Considerations in Conformance Logging
Because of environmental concerns, conformance programs
are sometimes mandated by government regulations and must
be implemented whether or not the programs result in
increased profits for the operators. For example, CBLs may be
required whenever casing is cemented in a well, or casing
evaluation logs may be necessary before beginning any
workover operations.
Situations frequently exist in which previously run logs can
be re-examined for conformance information at minimal cost
to the operator. Such is often the case for openhole logs, which
can serve as base logs for reservoir monitoring or which can be
re-analyzed to derive, refine, or verify conformance
information.
Often, the cost of logging is immediately justified when the
logging information reveals that planned remedial work on the
well would be unneeded or ineffective. For example, a
production log may indicate that a plug may not be needed, or
a CBL may indicate that a microannulus is present rather than
a channel and thus that a squeeze job would be ineffective.
SPE 40036 ECONOMIC EVALUATION OF THE USE OF WELL LOGS FOR DIAGNOSING CONFORMANCE PROBLEMS
To determine whether a reservoir conformance program is
economically justified may require a complex study of
reservoir characteristics and expected reservoir production.
However, a few simple calculations based on estimates of
production characteristics, oil prices, and costs related to
exploration, operations, and conformance can give a
reasonable indication of whether the implementation of a
conformance program can increase profitability. Example
calculations related to a program for reducing unwanted water
production follow.
The cost of unwanted water production includes the direct
costs of lifting, treating, and subsequently disposing the
produced water. Satisfying environmental concerns related to
high salinity, hydrocarbon contamination, hydrogen sulfide,
and radioactive scale in produced water can significantly
increase disposal costs. Lost production, additional
maintenance of production equipment arising from water
production, and downhole treatments for corrosion, scale, and
bacteria further increase water-associated costs. Furthermore,
radioactive scale deposited on the production string will affect
abandonment costs once the well has been depleted. In
general, water-associated costs in the U.S. are approximately
$0.75 to $2.00/bbl for land-based production and $1.00 to
$3.00/bbl for offshore production.
If in a particular situation the price of oil is $18.00/bbl,
discovery costs are $1.75/bbl, operational costs are $4.00/bbl,
water-processing costs are $1.75/bbl, and the water-oil ratio
(WOR) is 4:1, or 80% watercut, then the profit per barrel of oil
production is
profit = $18.00–$7.50–$4.00–(4×$1.75)=-$0.50 ............(1)
That is, a loss of $0.50/bbl is incurred. If a conformance
treatment program can simply reduce the WOR to 2:1, or 67%
watercut, without any increase in oil production, then the profit
per barrel of oil production becomes
profit = $18.00–$7.50–$4.00–(2×$1.75)=$3.00..............(2)
Thus, profitability increases by $3.50/bbl to $3.00/bbl. If the
combined cost of conformance logging and treatment is
$24,000, then the oil production required to pay for this
conformance cost is
payout = $24,000/($3.00/bbl)=8,000 bbl.........................(3)
This payout must then be weighed against expected production
rates, remaining reserves, and cash-flow issues.
7
Observations and Conclusions
As summarized in the chart of Fig. 14, logs provide a wealth
of information for designing conformance programs: logs can
be used to help delineate reservoir boundaries and determine
reservoir flow characteristics and to diagnose completion and
production problems. The cost of conformance-related logging
varies according to many factors, including the specific
logging service, the well location, and multiservice or
multiwell package considerations. Fig. 15 graphically
compares representative base prices for common logging
services performed on North American land locations. The
most accurate determination of whether a conformance
program is financially justifiable usually requires a complete
reservoir study. However, a few simple calculations can give a
reasonable indication of whether such a program can increase
profitability.
Generally, a conformance program is most cost-effective if
it can be implemented as part of an overall reservoir
exploration and exploitation program. Multiple use of logs can
reduce logging costs, treatments can be designed for maximum
reservoir benefit rather than for a single well, and conformance
problems can be avoided or else diagnosed and remedied
before serious losses are incurred.
Acknowledgments
The authors wish to thank the various oil companies for
their permission to reproduce the log examples used here. The
authors also gratefully acknowledge the management of
Halliburton Energy Services for allowing this paper to be
published.
References
1. Wyatt, D.F., Frisch, G.J., and Graham, W.L.: “Evaluating Water
Control Problems With Well Logs,” paper SPE 36284 presented
at the Abu Dhabi International Petroleum Exhibition and
Conference, Abu Dhabi, 13–16 October 1996.
2. Graham, W.L., Silva, C.I., Leimkuhler, J.A., and de Kock, A.J.:
“Cement Evaluation and Casing Inspection With Advanced
Ultrasonic Scanning Methods,” paper SPE 38651 presented at
the 1997 SPE Annual Technical Conference and Exhibition,
San Antonio, Texas, 5–8 October 1997.
3. Maddox, S., Gibling, G.R., and Dahl, J.: “Downhole Video
Services Enhance Conformance Technology,” paper SPE 30134
presented at the European Formation Damage Conference, The
Hague, The Netherlands, 15–16 May 1995.
8 G. FRISCH, L. GRAHAM, D. WYATT SPE 40036

Lithology Porosity Poissons’s Minimal

Water Ratio Young’s Horizontal Formation
Saturation Permeability Modulus Stress Tracers
Lime

Phi PERF

Sand Water Irid Irid

Shale S.W. OIL Perm Scan Scan

SW EPOR Perm POIS YD FCPS

1 0 .3 0 .001 1 0 0.5 0 20 4K 9K
PORW ESP ESY FCPG
.3 0 0 0.5 0 20 .5 1

Fig. 3—Fracture parameter log usedin the selection of intervals to be

perforated and design of hydraulic fracturing treatments. Radioactive
Fig—1 The interval shown contains a fining downward sequence from
tracers pumped during the treatment confirm the predicted barriers.
12160 ft. to 12250 ft. where the water saturation is 75% or more in the
lower part of the interval yet this well produces 2000 BOPD with no CEMENT
water. The key to proper interpretation of this data is the high FLUID
irreducible volume of water from NMR data (shown in the light gray
shading in track 3. The darkest shading is the hydrocarbon volume Travel Time Amplitude Bond Index MSG usec
and the medium shading is the volume of clay bound water.) 280 180 0 100 1 0 0 250
O v e rb u rd e n P .
F r a c t u r e I n it i a t i o n P .
Gamma Amp
C a lip e r
6 16
M ud P . 0 100 Amplitude
Gam m a Ray
B o r e h o le
P r o f ile
F r a c t u r e C lo s u r e P .
CCL 0 10
C r i t ic a l W e ll b o r e P . L ith o lo g y
0 150 0 psi 150 00 %

S h a le
C r i t i c a l W e ll b o r e
P ressu re
xx0 00 L im e s to n e
ft

M u d P ressu re
X100
Gam m a Ray D o lo m i t e
F r a c t u r e C l o s u re
P re s s u re
C a l ip e r

xx0 50
ft
Fig. 4—On this conventional bond log, the high values on the pipe
amplitude curve and the strong early arrivals on the waveform display
F r a c t u re I n it i a t i o n
P ressu re indicate free pipe.
S a n d s to n e
O v e rb u rd e n
P re s s u re

xx1 00
ft S a n d in g
P o te n tia l

X500
Fig. 2—The log curves for fracture initiation pressure and critical
wellbore pressure, calculated from sonic and density data, indicate the
safe range of mud pressures that should be maintained to avoid Fig. 5—The low values on the pipe amplitude curve and the weak
borehole and formation conditions that could lead to conformance early arrivals on the waveform display indicate good pipe-to-cement
problems. bond.
 SPE 40036 ECONOMIC EVALUATION OF THE USE OF WELL LOGS FOR DIAGNOSING CONFORMANCE PROBLEMS 9

CMNT CMNT CMNT CMNT GAMMA RAY AMPLITUDE MSG USEC BOND INDEX VARIANCE
0 100 0 100 0 250 1 0 0 MAP 100
PIPE PIPE PIPE PIPE AMP AVERAGE
ECCENTRICTY AMPLITUDE IMPEDANCE
CMNT CMNT CMNT CMNT 0 1 0 10 10 0

NORM PIPE PIPE PIPE PIPE OVALITY

0 1
Gamma IRAD 1 IRAD 3 IRAD 5 IRAD 5 Cement Map
0 200 0 4 0 4 0 4 0 4 0 360 0 20 0 6.15
Oval IRAD 2 IRAD 4 IRAD 6 IRAD 6
0 1 4 0 4 0 4 0 4 0
Ecty
0 1

IMPEDANCE Foam Cement

0 6.15

Y
0
0 Top of Neat Cement
0
N.O.R.M. CEMENT

SCALE LACK OF
PERF CEMENT

Fig. 8—The impedance data mapped in Fig. 7 were statistically

processed to produce the variance map shown here for more reliable
bond interpretation in foam cements. In this example, the bonding
indicated from the variance map is much better than that indicated by
the standard impedance map.
MAX MAX DEFECT
CORR EDDY X FLUX INNER OUTER TYPE
Fig. 6—The impedance map produced from a multitransducer DERIVE DERIVE DEFECT DEFECT
ultransonic tool. Although the light shading over the central producing
CIRCUM.
zone indicates a lack of cement, the dark shading above and below
that zone suggests good cement bond and thus good zonal isolation of COLLAR COLLAR COLLAR
the producing zone.
<-INNER OUTER-> ISOLATED
GAMMA RAY AMPLITUDE MSG USEC BOND INDEX IMPEDANCE
0 100 0 100 0 250 1 0 0 MAP 100 TENS EDDY FLUX
AMP AVERAGE FINS FOUT ISOL.
ECCENTRICTY AMPLITUDE IMPEDANCE 0 5000 8 - PAD 8 - PAD 0 1500 1500 0 <---PIT
0 1 0 10 10 0 GRADEA GRADEA
GAMMA CIRCUM
OVALITY 0 1500 1500 0 PIT--->
0 1 0 150 GRADEB GRADEB
0 1500 1500 0
0 20 0 6.15
HALL GRADEC GRADEC
350 450 0 1500 1500 0
GRADED GRADED
0 1500 1500 0

60% Penetration Pit

Foam Cement From the Outside

Collar
Top of Neat Cement 20% Penetration Pit
From the Inside

Hole in Pipe

Fig. 7—The lighter shading on the upper portion of this standard Fig. 9—Displays in the right three tracks of this FL/EC pipe-inspection
impedance map produced from ultrasonic scanning data would log distinguish inner-wall defects from outer-wall defects, indicate the
normally indicate questionable cement bond; however, because the depth of the defect, and classify the defects as isolated or
interval contains foam cement, this interpretation may not be valid. circumferential.
10 G. FRISCH, L. GRAHAM, D. WYATT SPE 40036

PVT & WELLBORE GAS LIQUID ZONAL ZONAL FLOW

HOLDUP DIAGRAM RATE RATE GAS LIQUID METER
RATE RATE RATE

PERF PERF

PIPE PIPE

CMNT CMNT OIL WATER

FORM FORM GAS WATER GAS OIL

TEMP GAS OIL GAS OIL UP SR1

114 115 FLOW FLOW FLOW FLOW -5 10
PRES MSCF STB MSCF STB UP SR2
1000 1500 0 1500 0 1000 0 1500 0 1000 -5 10
FLUID WATER WATER DOWN
FLOW FLOW SR1
DENSITY
STB STB -5 10
0.1 1.1
DOWN
HYDRO 0 1000 0 1000
SR2
0 10000 -5 10

Fig. 12—On this PNC log, the oxygen-activation curve (OAI in Track 2)
revealed water entry near the bottom of the lower perforated entry, and
the formation sigma curve (SGFM in Track 3) located a gas/water
contact near the top of the same zone.
0
YK .5 1 .3
L IR I 1 .8 0
Y C A. 2 5 1 R I C .5
Fig. 10—This combination production log reveals that the middle GR C O IR Y S I.2 5 O A I2 0 0
perforated zone is producing gas, oil, and water, while the upper 0 150 .6 5 .8 5 0 0

perforated zone is producing only a small amount of oil. No production

is evident from the lower perforated zone. L IR I
x500
C O IR R IC
GR
YSI
YK

YCA

OAI

x600

Fig. 11—The water entry point is clearly defined on the upper right .4 .6

hand of the picture. Notice that the casing and cement has been
eroded from the force of the water entry. Fig. 13—The oxygen-activation curve (OAI) in the rightmost track of
this PNS log showed crossflow between the perforated zones.
 SPE 40036 ECONOMIC EVALUATION OF THE USE OF WELL LOGS FOR DIAGNOSING CONFORMANCE PROBLEMS 11

PROBLEMS O C C P P D
P E A N R O
E M S S O W Spectral Gamma Log
N E I D N
H N N P U H Pulsed Neutron Spectrometry
O T G N C O Pulsed Neutron Capture
L C T L
E I E
Downhole Video
O
N V
Production Logs
I 3 Phase
D
E Flux Leakage - Eddy Current
O Electromagnetic Phase-Shift
ACID JOB WENT TO X
Multiple Arm Caliper
WATER
BOTTOMWATER X X
Ultrasonic Imaging
CONING
Multitransducer Ultrasonic
BOTTOM WATER X X
SHUTOFF Compensated Bond Log

CASING LEAKS X X X X
Nuclear Magnetic

CHANNEL BEHIND X X X X Fullwave Sonic

CASING Neutron
CHANNEL FROM X X X Density
INJECTOR Induction
EARLY WATER X X X Gamma Ray
BREAKTHROUGH
FRAC JOB WENT TO X X X X
0 $ 5000 $ 10000
10000 $ 15000 $ 20000
20000 $ 25000
WATER
HIGH PERMEABILITY X X X Fig. 15—Shown here are representative base costs for logging a
STREAK 2,000-ft zone with bottom at 10,000 ft in a North American land well.
LACK OF SHALE X X
BARRIER
PLUGGED X X
PERFORATIONS
INJECTION OUT OF X X
ZONE
LOST CIRCULATION X

Fig. 14—Logging finds a wide variety of applications in conformance

programs.