RESERVOIR ENGINEERING Determination of Oil and Gas Reserves PDF

1 INTRODUCTION TO RESERVOIR ENGINEERING 2
RESERVOIR PRESSURES AND TEMPERATURES 3

RESERVOIR FLUIDS COMPOSITION
4 PHASE BEHAVIOUR OF HYDROCARBON SYSTEMS 5

BEHAVIOUR OF GASES
6 PROPERTIES OF RESERVOIR LIQUIDS

7 FUNDAMENTAL PROPERTIES OF RESERVOIR ROCKS 8
ROCK PROPERTIES MEASUREMENT
9 PERMEABILITY-ITS VARIATIONS
10 FLUID FLOW IN POROUS MEDIA
11 DRIVE
MECHANISMS
12 VAPOUR LIQUID EQILIBRIA

13 EQUILIBRIUM RATIO PREDICTION AND CALCULATION
14 PVT ANALYSIS
15 MATERIAL BALANCE EQUATION
16 MATERIAL BALANCE EQUATION APPLICATION
17 WATER INFLUX
18 IMMISCIBLE DISPLACEMENT
19 EXAMINATION AND MODEL SOLUTIONS
RESERVOIR ENGINEERING RE
This Reservoir Engineering module covers material presented in a range of reservoir engineering texts and a
number of the figures and examples are based on these texts and copyright is currently being sought. The
student may find the more detailed analysis in these texts supportive when going through these notes. The
following books are considered useful in building up a reservoir engineering library.
1.Fundamentals of Reservoir Engineering. L.P.Dake. Elsevier. 1978

ISBN:0-444-41667-6
2.The Practise of Reservoir Engineering. L.P.Dake. Elsevier. 1994.

ISBN: 0-444-82094-9
3.Principles of Petroleum Reservoir Engineering. G.H.Chierici. Springer-Verlag 1994.

ISBN:3-540-56037-8
4.Fundamental Principles of Petroleum Reservoir B.F. Towler. Society of Petroleum Engineers Inc
Engineering ISBN:55563-092-8
5.Applied Reservoir Engineering B.C.Craft & M.F.Hawkins. Prentice Hall. 1959.
6.The Properties of Petroleum Fluids 2nd Ed W.D.McCain Pennwell Books . 1990

ISBN:0-87814-335-1
7.Petroleum Engineering Principles and Practise. J.S.Archer & C.Wall.Graham & Trotman.
1986. ISBN:0-86910-715-9
8.Petroleum Reservoir Engineering.

J.W.Amyx,D.M.Bass & R.L.Whiting.
McGraw-Hill. 1960.
ISBN:07-001600-3
9.PVT and Phase Behaviour of Petroleum Reservoirs

A. Danesh. Elsevier. ISBN: 0-444-82196-1 Adrian C Todd
All rights reserved no part of this publication may be reproduced, stored in a retrieval system or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise without the prior permission of the Copyright owner.
Reservoir Engineering notes cover an extensive amount of material. They are
support material for the examination in this topic but are also considered to be
useful material in subsequent career use. Not all the material in the text can be
covered in a limited time examination.
In the context of the examination a student should consider the learning objectives
at the front of each section which should help in the level of detail and analysis
which is required in relation to an examination covering the various topics.
Detailed below is a graded analysis of each section which should help the
candidate in examination preparation. These should be considered alongside the
learning objectives.
Grading structure:
5 - Core material for examination purposes

4 - Core material less analytical than 5 - examinable.
3 - Between 4 & 2
2 - General awareness. Not so examinable with respect to analysis of detail.
1 - Other information not examinable.
OM- Material covered in another module not for examination purposes in

Reservoir Engineering.
Equations – It is not necessary to memorise complicated equations. Equations

unless asked to be derived will be given.
Clearly some basic equations one should know and would not be given e.g.
Darcy’s Law,
PV = nzRT
STOOIP equation
Equilibrium Ratio K=y/x
Insitute of Petroleum Engineering, Heriot-Watt University 3
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Insitute of Petroleum Engineering, Heriot-Watt University 5
Introduction To Reservoir Engineering
CONTENTS
3.3 Unproved Reserves
1 INTRODUCTION 3.3.1 Probable Reserves
1.1 Reserves Estimation 3.3.2 Possiible Reserves
1.2 Development Planning 3.4 Reserve Status Categories
1.3 Production Operations Optimsation 2 3.4.1 Developed:
3.4.1.1 Producing
RESERVOIR ENGINEERING TECHNIQUES 3.4.1.2 Non-producing:
3.4.2 Undeveloped Reserves:
3 RESERVE ESTIMATING
4 PROBABILISTIC REPRESENTATION OF
3.1 Definitions
RESERVES
3.2 Proven Reserves
3.2.1 Exercises - Reserve Definitions
5 VOLUME IN - PLACE CALCULATIONS
5.1 Volume of Oil and Gas in-Place
5.2 Evolution of Reserve Estimate
5.3 Reservoir Area
5.4 Reservoir Thickness
5.5 Reservoir Porosity
5.6 Water Saturation
5.7 Formation Volume Factors
5.8 Recovery Factors
5.9 Production Capacity
5.10 Hydrocarbon Pore Volume Map
6 OTHER APPRAISAL ROLES
7 DEVELOPMENT PLANNING
7.1 Reservoir Modelling
7.2 Technoconomics
7.3 Coping with Uncertainty
8. PRODUCTION OPERATIONS OPTIMISATION
8.1 Development Phase
8.2 History Matching
8.3 Phases of Development
9. THE UNIQUENESS OF THE
RESERVOIR 10. CONCLUSIONS
LEARNING OBJECTIVES
Having worked through this chapter the Student will be able to:
• Show using a block diagram the integration of reservoir engineering with other
petroleum engineering and other subjects.
• Define the SPE definitions of reserves; proven reserves, unproved reserves;

probable reserves and possible reserves.
• Calculate given the prerequisite data proved, probable and possible reserves.
• Describe in general terms reserve estimation.
• Sketchadiagramshowingtheprobabilityversusrecoverable reservesindicating,
proven, proven + probable and proven + probable + possible reserves.
• Present a simple equation for volumes of oil and gas in-place.
• Describe in general terms the evolution of reserves through successive

exploration wells.
• Describe briefly with the aid of a sketch the various maps used to represent
reservoir; area, thickness porosity, saturation.
• Describe briefly the use of the production (well0 test to determine reservoir
flowability and properties.
• Describe briefly the various elements of development planning: reservoir

modeling technoeconomics and uncertainty.
• Illustrate with a sketch the impact of different technical parameters on the

associated uncertainties on a project.
• Describe in general terms in the context of production operations, optimization

in history matching.
• Draw a sketch showing the various phases of production from build up to

economic limit.
• Draw a sketch illustrating the various recovery scenarios from primary to

tertiary recovery.
1 INTRODUCTION
Withthepetroleumindustry’sdesiretoconserveandproduceoilandgasmoreefficiently a
field ofspecialisation has developed called Petroleum Reservoir Engineering. This
new science which can be traced back only to the mid 1930’s has been built up on a
wealth of scientific and practical experience from field and laboratory. In the 1959
text of Craft & Hawkins1 on Applied Reservoir Engineering it is commented that
“as
early as 1928 petroleum engineers were giving serious consideration to gas-energy
relationships and recognised the need for more precise information concerning
physical conditions as they exist in wells and underground reservoirs. Early
progress in oil recovery methods made it obvious that computations made from
wellhead or surface data were generally misleading.” Dake2, in histext "The
Practise of Reservoir Engineering", comments that “Reservoir Engineering shares
the distinction with
geology in being one of the ‘underground sciences’ of the oil industry, attempting
to describe what occurs in the wide open spaces of the reservoir between the sparse
points of observation - the wells”
The reservoir engineer in the multi-disciplinary perspective of modern oil and gas
field management is located at the heart of many of the activities acting as a central
co-ordinating role in relation to receiving information processing it and passing it
on to others. This perspective presented by Dake2 is shown in the figure below.
Exploration
Geophysics/ Process Egineering
Geology
General Engineering
Platform Topsides Design
Economics
(Project viability)
Petrophysics
Reservoir Engineering
Production
2
Figure 1 Reservoir Engineering in Relation to Other Activities (adapted Dake )
Dake2 has usefully specified the distinct technical responsibilities of reservoir

engineers as:
• Contributing, with the geologists and petrophysicists , to the estimation of

hydrocarbons in place.
• Determining the fraction of discovered hydrocarbons that can be recovered. •
Attaching a time scale to the recovery.
Insitute of Petroleum Engineering, Heriot-Watt University

• Day-to-day operational reservoir engineering throughout the project lifetime.
The responsibility of the first is shared with other disciplines whereas the second is
primarily the responsibility of the reservoir engineer. Attaching a time scale to
recovery is the development of a production profile and again is not an exclusive
activity. The day-to-day operational role is on going through the duration of the
project.
A project can be conveniently divided into two stages and within these the above
activities take place, the appraisal stage and the development phase. The appraisal
phase is essentially a data collection and processing phase with the one objective of
determining the ‘viability’of a project. The development phase coversthe remaining
period if the project is considered viable from the time continuous production com
mences to the time the field is abandoned. Reservoir engineering activity in various
forms takes place during both of these stages.
The activities of reservoir engineering fall into the following three general catego
ries:
(i) Reserves Estimation

(ii) Development Planning
(iii) Production Operations Optimisation
1.1 Reserves Estimation

The underground reserves of oil and gas form the oil company’s main assets. Quan
tifying such reserves forms therefore a very important objective of the practising
reservoir engineer but it is also a very complex problem, for the basic data is
usually subject to widely varying interpretations and on top of that, reserves may be
affected significantly by the field development plan and operating practice. It is an
on-go ing activity during, exploration, development planning and during
production. It is clearly a key task of the appraisal phase for it is at the heart of
determining project viability.
Before any production has been obtained, the so-called ‘volumetric estimate of
reserves’ is usually made. Geological and geophysical data are combined to obtain
a range of contour maps with the help of a planimeter and other tools the hydrocar
bon bearing rock volumes can be estimated. From well log petrophysical analysis,
estimates of an average porosity and water saturation can be made and when
applied
to the hydrocarbon rock volume yield an estimate of oil in place (STOIIP). Since it
is well known that only a fraction of this oil may in fact be ‘recoverable’, labora
tory tests on cores may be carried out to estimate movable oil. The reserve estimate
finally arrived at is little more than an educated guess but a very important one for
it determines company policy.
In 1987 the Society of Petroleum Engineers in collaboration with the World

Petroleum Congress published definitions with respect to reserves and these are
now accepted world-wide 3. These definitions have been used in the summary of
reserve defini tions which follow.
1.2 Development Planning

Oilfield development, particularly in the offshore environment, is a ‘front loaded’
investment. Finance has to be committed far in advance not only of income guaran
teed by the investment, but frequently also of good definitive data on the character
of the field. Much of the responsibility for this type of activity falls on the reservoir
engineers because of their appreciation for the complex character ofsub-surface
fluid behaviour under various proposed development schemes.
1.3 Production Operations Optimisation

Producing fields will seldom behave as anticipated and, of course, by the very
nature ofthissort of activity, the balance offorcesin the reservoirrock getsseverely
upset by oil and gas production. The reservoir engineer is frequently called upon to
‘explain’ a certain aspect of well performance, such as increasing gas-oil ratio, sand
and/or water production and more importantly will be asked to propose a remedy.
The actual
performance of the reservoir as compared to the various model predictions is
another ongoing perspective during this phase.
2 RESERVOIR ENGINEERING TECHNIQUES
In the past the traditionally available reservoir engineering tools were mainly
designed to give satisfactory results for a slide rule and graph paper approach. For
many problems encountered by reservoir engineers today this remains a perfectly
valid approach where the slide rule has been replaced by the calculator.
Increasingly,
however, the advance of computing capability is enabling reservoir engineering
modelling methods(‘simulations’) to be carried out at the engineers desk,
previously considered impossible.
The basis of the development of the 'model' of the reservoir are the various data
sources. As the appraisal develops the uncertainty reduces in relation to the quality
of the forecasts predicted by the model. Building up this ‘geological’ model of the
reservoir progressesfrom the early interpretation of the geophysicalsurveys, through
various well derived data sets, which include drilling information, indirect wireline
measurements, recovered core data, recovered fluid analysis, pressure depth
surveys, to information generated during production.
3. RESERVE ESTIMATING
The Society of Petroleum Engineers SPE and World Petroleum Congress

WPO1987 agreed classification of reserves3 provides a valuable standard by which
to define reserves, the section below is based on this classification document.
3.1 Definitions
Reserves are those quantities of petroleum which are anticipated to be
commercially recovered from known accumulations from a given date forward.
All reserve estimates involve some degree of uncertainty. The uncertainty depends
chiefly on the amount of reliable geologic and engineering data available at the
time
of the estimate and the interpretation of these data. The relative degree of
uncertainty may be conveyed by placing reserves into one of two principal
classifications, either proved or unproved.
Unproved reserves are less certain to be recovered than proved reserves and may
be further sub-classified as probable and possible reserves to denote progressively
increasing uncertainty in their recoverability.
Estimation of reserves is carried out under conditions of uncertainty. The method of

estimation is called deterministic if a single best estimate of reserves is made based
on known geological, engineering, and economic data. The method of estimation is
called probabilistic when the known geological, engineering, and economic data
are used to generate a range of estimates and their associated probabilities.
Identifying reserves as proved, probable, and possible has been the most frequent
classification method and gives an indication of the probability of recovery.
Because of potential differences in uncertainty, caution should be exercised when
aggregating reserves of different classifications.
Reserves estimates will generally be revised as additional geologic or engineering

data becomes available or as economic conditions change. Reserves do not include
quantities of petroleum being held in an inventory, and may be reduced for usage or
processing losses if required for financial reporting.
Reserves may be attributed to either natural energy or improved recovery methods.

Improved recovery methods include all methods for supplementing natural energy
or altering natural forces in the reservoir to increase ultimate recovery. Examples of
suchmethods are pressuremaintenance, gas cycling,waterflooding,thermalmethods,
chemical flooding, and the use of miscible and immiscible displacement fluids.
Other improved recovery methods may be developed in the future as petroleum
technology continues to evolve.
3.2 Proven Reserves

Proven reserves are those quantities of petroleum which, by analysis of
geological and engineering data, can be estimated with reasonable certainty to
be commercially recoverable, from a given date forward, from known reservoirs
and under current economic conditions, operating methods, and government
regulations.
Proved reserves can be categorised as developed or undeveloped.
If deterministic methods are used, the term reasonable certainty isintended to

express a high degree of confidence that the quantities will be recovered. If
probabilistic methods are used, there should be at least a 90% probability that the
quantities actu ally recovered will equal or exceed the estimate.
Establishment of current economic conditions should include relevant historical

petroleum prices and associated costs and may involve an averaging period that is
consistent with the purpose of the reserve estimate, appropriate contract
obligations, corporate procedures, and government regulations involved in
reporting these reserves. In general, reserves are considered proved if the
commercial producibility of the reservoir is supported by actual production or
formation tests. In this context,
the term proved refers to the actual quantities of petroleum reserves and not just
the productivity of the well or reservoir. In certain cases, proved reserves may be
assigned on the basis of well logs and/or core analysis that indicate the subject
reservoir is hydrocarbon bearing and is analogous to reservoirs in the same area
that are producing or have demonstrated the ability to produce on formation tests.
The area of the reservoir considered as proved includes (1) the area delineated by
drilling and defined by fluid contacts, if any, and (2) the undrilled portions of the
reservoir that can reasonably be judged as commercially productive on the basis of
available geological and engineering data. In the absence of data on fluid contacts,
the lowest known occurrence of hydrocarbons controls the proved limit unless
otherwise indicated by definitive geological, engineering or performance data.
Reservesmay be classified as proved if facilities to process and transport those
reserves to market are operational at the time of the estimate or there is a
reasonable expectation that such facilities will be installed. Reserves in
undeveloped locations may be classified as proved undeveloped provided (1) the
locations are direct offsets to wells that have indicated commercial production in
the objective formation, (2) it is reasonably certain such locations are within the
known proved productive limits of the objective formation, (3) the locations
conform to existing well spacing regulations where applicable, and (4) it is
reasonably certain the locations will be developed. Reserves from other locations
are categorised as proved undeveloped only where interpretations of geological
and engineering data from wells indicate with reasonable certainty that the
objective formation is laterally continuous and contains commercially recoverable
petroleum at locations beyond direct offsets.
Before looking at further detail we will carry out some tests to help emphasise the
above definition.
3.2.1 Exercises - Reserve Definitions

The section on Reserve Definitions as put together by the SPE and the World Petro
leum Congress, defines the various aspects of reserve definitions. These
definitions, are important both to companies and countries, and they can have very
significant commercial impact. The following tests are presented to help
understand the work ing of these earlier definitions.
Test 1
There are 950 MM stb ( million stock tank barrels) of oil initially in place in a res
ervoir. It is estimated that 500 MM stb can be produced. Already 100 MM stb have
been produced. In the boxes below, identify the correct answer.
400
STOIIP is: 950 500 MM stb
500
The Reserves are: 450 400 MM stb
Turn to page 9 for answers
Test 2
Before starting production it was estimated that there was a 90% chance of produc
ing at least 100 MM stb, 50% chance of producing 500 MM stb and 10% chance
of producing 700MM stb. That is we are sure we can produce at least 100MM stb,
and we will probably produce as much as 500 MM stb, and we will possibly
produce as much as 700 MM stb.
Tick the correct answers.
Proved reserves (MM stb):

100 200 400 500 600 700
Probable reserves
100 200 400 500 600 700
Possible reserves
100 200 400 500 600 700
Turn to page 9 for answers
Test 3
What is wrong with the following definitions?
1. Reserves are those quantities of petroleum which are anticipated to be recovered

from a petroleum accumulation.
Test 4
1. We have a structure in our licence area which we intend to explore. We

anticipate it to contain a STO IIP of 2000 MM stb, and recovery factor of 65%
using primary methods (30%), secondary (25%) and tertiary (10%) recovery
methods. What are the reserves?
Test 5
Areservoir has been discovered by drilling a successful exploration well, and

drilling a number of producing wells. We have even produced some 200 MM stb
of oil.
STOIIP = 2000MM stb Recovery factor = 35%
What are the reserves?
Test 1 answer
There are 950 MM stock tank boards in place. It is estimated that 500 MM stb can
be produced and 100 MM stb have been produced then 400 recoverable reserves
remain.
400
STOIIP is: 950 500 MM stb
√ X
X
500
The Reserves are: 450 X 400 MM stb
√
Test 2 answer X
Proved : 100 MM stb

Probable : 500 - 100 = 400 MM stb Possible : 700 - 500 = 200
MM stb Proved : 100 MM stb
Proved & Possible 500 MM stb
Proved & Probable & Possible : 700 MM stb
Test 3 answer

commercially recovered from a petroleum accumulation.
Clearly economics is a very important aspect of the definition.
Economic Variables
What economic factors are used in the calculations? What oil and gas price do we
use for proved reserve estimates? Is inflation taken into account? Do we predict
future price trends? Do we apply discount factors to calculate present value of the
project? Are all these used in proved reserve calculations? The current economic
conditions are used for the calculations, with respect to prices, costs, contracts and
government regulations.
Test 4 answer
1. Answer is zero by SPC/WPC definition.

2. Intentions and anticipations are not the basis for reserves. In this case no well
has yet been drilled.
Note: Some companies allocate potential reserves for internal use but these cannot
be used for public and government figures.
commercially recovered from a known accumulation.
Requirements for “Proved” include
The following sources are required for proved reserves. Maps (from seismic and/
geological data). Petrophysical logs. Well test results and rock properties from core
analysis tests on recovered core.
Facilities
An important perspective which might be forgotten by the reservoir engineer, is

that for reserves to be classified as “proven”, all the necessary facilities for
processing and the infrastructure for transport must either be in place or that such
facilities will be installed in the future, as backed up by a formal commitment.
Contribution to the Proved Reservoir Area
This comes from drilled and produced hydrocarbons, the definition of the gas and
oil and water contacts or the highest and lowest observed level of hydrocarbons.
Also the undrilled area adjacent to the drilled can be used.
Test 5 answer
Ultimate recovery = 2 000 x 0.35 = 700 MM stb

Minus production to date = 200
Reserves = 500 MM stb

commercially recovered from known accumulations from a given date forward.
i.e. Reserves refer to what can be produced in the future.
Figure 2 gives a schematic of reserves showing the progression with time.

s
l P10 P50
e
e Possible
L
S y
P90
EI
ili
RO ba
G b
Potential SPE / Possible
WPC Definitions
E o
r
TA
C P
EV Probable
RESE
R
Probable Production
Provan
Provan Cumulative
Discovery of Start of Dev
Abandonment
Time
Start of
Seismic
Data Well Planning Production
Prior and During Evaluation,
Before Drilling Delineation,
Development PERIOD Production

Exploration Well Appraisal
Geophysical Geophysical, Geophysical, Reservoir Performance
and Production Data TYPE OF

DATA Petrophysical Petrophysical
and Geological and Well Test Data and Well Tests and
Geological, Geological, Production Data
Mostly Probabilistic Deterministic and Probabilistic METHOD
Figure 2 Variations of Reserves During Field Life
What are the amounts termed that are not recoverable? The quantity of hydrocar
bons that remains in the reservoir are called remaining hydrocarbons in place,
NOT remaining reserves!
Reserves which are to be produced through the application of established improved

recovery methods are included in the proved classification when :
10
(i) Successful testing by a pilot project or favourable response of an installed

program in the same or an analogous reservoir with similar rock and fluid
properties provides support for the analysis on which the project was based,
and,
(ii) It is reasonably certain that the project will proceed. Reserves to be recovered
by improved recovery methods that have yet to be established through
commercially successful applications are included in the proved classification
only:
(i) After a favourable production response from the subject reservoir from
either (a) A representative pilot or
(b) An installed program where the response provides support for the analysis
on which the project is based and
(ii) It is reasonably certain the project will proceed.
3.3 Unproved Reserves

Unproved reserves are based on geologic and/or engineering data similar to that
used in estimates of proved reserves; but technical, contractual, economic, or
regulatory uncertainties preclude such reserves being classified as proved.
Unproved reserves may be further classified as probable reserves and possible re
serves. Unproved reserves may be estimated assuming future economic conditions
different from those prevailing at the time of the estimate. The effect of possible
future improvements in economic conditions and technological developments can
be expressed by allocating appropriate quantities of reserves to the probable and
possible classifications.
3.3.1. Probable Reserves

Probable reserves are those unproved reserves which analysis of geological and
engineering data suggests are more likely than not to be recoverable. In this
context, when probabilistic methods are used, there should be at least a 50%
probability that the quantities actually recovered will equal or exceed the sum of
estimated proved plus probable reserves. In general, probable reserves may include
:
(1) Reserves anticipated to be proved by normalstep-out drilling where

subsurface control is inadequate to classify these reserves as proved,
(2) Reserves in formations that appear to be productive based on well log

characteristics but lack core data or definitive tests and which are not
analogous to producing or proved reservoirs in the area,
(3) Incrementalreserves attributable to infill drilling that could have been

classified as proved if closer statutory spacing had been approved at the time
of the estimate,

11
(4) Reserves attributable to improved recovery methodsthat have been

established by repeated commercially successful applications when;
(a) a project or pilot is planned but not in operation and

(b) rock, fluid, and reservoir characteristics appear favourable for commercial
application,
(5) Reserves in an area of the formation that appears to be separated from the
proved area by faulting and the geologic interpretation indicates the subject
area is structurally higher than the proved area,
(6) Reserves attributable to a future workover, treatment, re-treatment, change of

equipment, or other mechanical procedures, where such procedure has not
been proved successful in wells which exhibit similar behaviour in analogous
reservoirs, and
(7) Incremental reservesin proved reservoirs where an alternative interpretation

of performance or volumetric data indicates more reserves than can be
classified as proved.
3.3.2. Possible Reserves

Possible reserves are those unproved reserves which analysis of geological and
en gineering data suggests are less likely to be recoverable than probable
reserves. In this context, when probabilistic methods are used, there should be at
least a 10% probability that the quantities actually recovered will equal or exceed
the sum of estimated proved plus probable plus possible reserves. In general,
possible reserves may include:
(1) reserves which, based on geological interpretations, could possibly exist

beyond areas classified as probable,
(2) reserves in formations that appear to be petroleum bearing based on log and
core analysis but may not be productive at commercial rates,
(3) incremental reserves attributed to infill drilling that are subject to technical
uncertainty,
(4) reserves attributed to improved recovery methods when
(a) a project or pilot is planned but not in operation and

(b) rock, fluid, and reservoir characteristics are such that a reasonable doubt
exists that the project will be commercial, and
(5) reserves in an area of the formation that appears to be separated from the
proved area by faulting and geological interpretation indicates the subject area
is structurally lower than the proved area.
12
3.4 Reserve Status Categories

Reserve status categories define the development and producing status of wells and
reservoirs.
3.4.1. Developed:
Developed reserves are expected to be recovered from existing wells including
reserves behind pipe. Improved recovery reserves are considered developed only
after the necessary equipment has been installed, orwhen the coststo do so are
relativelyminor.
Developed reserves may be sub-categorised as producing or non-producing.
3.4.1.1 Producing:
Reserves subcategorised as producing are expected to be recovered from comple
tion intervals which are open and producing at the time of the estimate. Improved
recovery reserves are considered producing only after the improved recovery
project is in operation.
3.4.1.2. Non-producing:
Reserves subcategorised as non-producing include shut-in and behind-pipe
reserves. Shut-in reserves are expected to be recovered from (1) completion
intervals which are open at the time of the estimate but which have not started
producing, (2) wells which were shut-in for market conditions or pipeline
connections, or (3) wells not capable of production for mechanical reasons.
Behind-pipe reserves are expected to be recovered from zones in existing wells,
which will require additional completion work or future recompletion prior to the
start of production.
3.4.2. Undeveloped Reserves:

Undeveloped reserves are expected to be recovered:
(1) From new wells on undrilled acreage,

(2) From deepening existing wells to a different reservoir, or
(3) Where a relatively large expenditure is required to
(a) Recomplete an existing well or

(b) Install production or transportation facilities for primary or improved
recovery projects.
4. PROBABILISTIC REPRESENTATION OF RESERVES
Whereas in the deterministic approach the volumes are determined by the

calculation ofvaluesdeterminedforthevariousparameters,withtheprobalistic
statistical analysis is used, using tools like Monte Carlo methods. The curve as
shown in the figure 3 below presents the probability that the reserves will have a
volume greater or equal to the chosen value.

13
s
e
l a
t
e
a
gr
a
s
0.1 0
l
i s
v
a 'Proven +
r Probable'
e
e
'Proven +
Proable
ht
a + Possible'
h
i
Recoverable
li
b
Reserve
a
o 1.0 0.9
r
P
'Proven'
.
a
t
s
c
id
0.5
n
a
i
Figure 3 Probabilistic Representation of Recoverable Reserves.
On this curve:
The proven reservesrepresent the reserves volume corresponding to 90%

probability on the distribution curve.
The probable reserves represent the reserves volume corresponding to the

difference between 50 and 90% probability on the distribution curve.
The possible reserves represent the reserves volume corresponding to the

difference between 10 and 50% probability on the distribution curve.
As with the deterministic approach there is also some measure of subjectivity in the
probalistic approach. For each of the elements in the following equation, there is a
probabilityfunctionexpressioninlow,mediumandhighprobabilitiesfortheparticular
values. A schematic of a possible distribution scenario for each of the elements and
the final result is given below in the figure 4.
Net rock Net rock Connate Formation Estimated

volume. average water volume recovery
porosity saturation factor factor
) / B ] x RF = Reserves
[ Vnr x φ x (1 - Swc o
Uniform Triangular Gaussian Uniform p90
= Estimates.
P p50
p10
Figure 4 Probablistic Reserve
14
The resulting calculations result in a probability function for a field as shown in

the figure 5 below, where the values for the three elements are shown
Proven = 500 MM stb the P90 figure.
Probable = 240 MM stb which together with the proven makes up the P50 figure.
of 740MMstb
Possible = 120 MM stb which together with the proven and probable makes up the
P10 value of 860MMstb
80 P50 = 740 MMstb
P90 = 500 MMstb
70
60
Reserves
distribution for a
new field.
P90
/
Proven 500 MMstb
100 90 P10 = 860 MMstb
y
t
ili
50 40 30 20 10 MMstb
b
P50
a
o
Probable 240 M
r
P
120 P10
P+P+P = 860
Figure 5 Reserves Cummulative

Probability Distribution.
Proven Probable Possible
0 200 400 600 800 1000 Reserves / MMstb
As a field is developed and the fluids are produced the shape of the probability
curve changes. Probability figures for reserves are gradually converted into
recovery leav ing less uncertainty with respect to the reserves. This is illustrated in
figure 6.

15
100
90
P90
80
70
60 0
50
P50
%
40
/
Proved ultimate recovery.
y
t
30
ili
ba
b 20
o
r
10 P10
P
Production Proved reserves
0 200 400 600 800 1000 Reserves / MMstb

Figure 6 Ultimate Recovery and Reserves Distribution For a Mature Field.
5. VOLUME IN-PLACE CALCULATIONS
5.1 The volume of oil and gas in-place depends on a number of parameters :
The aerial coverage of the reservoir. A
The thickness of the reservoir rock contributing to the hydrocarbon volume. hn
The pore volume, as expressed by the porosity ,φ , the reservoir quality rock.
The proportion of pore space occupied by the hydrocarbon ( the saturation ). 1-Sw
The simple equation used in calculation of the volume of fluids in the reservoir, V,
is
V=Ahnφ(1-Sw): (1)
where:
A= average area
hn = nett thickness. nett thickness = gross thickness x nett: gross ratio
φ = average porosity
Sw = average water saturation.
When expressed as stock tank or standard gas volumes, equation above is divided
by the formation volume factor Bo or Bg.
()1/
V A = − h S n w φ Bo (2)
To convert volumes at reservoir conditions to stock tank conditions formation

volume factors are required where Bo and Bg are the oil and gas formation volume
factors. These are defined in subsequent chapters. The expression of original oil in
place is termed the STOIIP.
16
indicates the proportion of the in-place hydrocarbons ex

The recovery factor, RF,
pected to be recovered. To convert in place volumes to reserves we need to multiply
the STOIIP by the recovery factor so that:
Reserves = STOIIP x RF (3)
The line over the various terms indicates the average value for these spatial
parameters.
The reservoir area A, will vary according to the category; proven, probable or pos
sible, that is being used to define the reserves.
Before examining the contributions of the various parameters it is worthwhile to

give consideration of the evolution of the reserve estimate during the exploration
and development stage.
5.2 Evolution of the Reserve Estimate

Figure 7 gives a cross section view of a reservoir structure as suggested from
seismic and geological data.
Oil
Suggested 0il and water contact
Figure 7 Cross Section Interpretation From Seismic and Geological Data.
Using this data and possible suggested structure we can carry out some oil in place
calculations and estimate reserves. Thesefigures however are not admissible in
public reserve estimates. They are useful inside the company to justify project
expenditure! The question is where do we locate the first exploration well and get
involved in large exploration expenditure costs. Figure 8 suggest three alternatives

17
Oil
Suggest this location.
Suggested oil and water contact
Figure 8 Alternative locations of Exploration Wells
In figure 9 an exploration well has been drilled and a core recovered and the struc
ture of the field with respect to formations and contacts redefined. The redefined
structure can now be used to provide an estimate of reserves according to the
three, proven, probable and possible perspectives. Figure 10
Oil
Cored interval
Oil and water contact
Figure 9 Interpretation After Exploration Well Drilled and Cored.
18
Proved
e e
PossibleProbabl Probabl Possible
Oil
Figure 10 After The Exploration Well Was Drilled.
Subsequent appraisal wells are now drilled to give better definition of the reserves
of the field. Well 2 aimed at defining the field to the left identifies some additional
isolated hydrocarbon structure with its own oil water contact. Figure 11. The well,
as well as increasing the proven reserves, further identifies previous unknown
reserves. The next appraisal well is aimed at defining the reserves in the other
direction. Dur ing well testing on wells 1or 2 indications of faulting are also
helping to define the flowing nature of the accumulation. Figure 12 for the further
appraisal well confirms the accumulation to the right and also identifies the impact
of the fault with a new oil water contact. Subsequent appraisal wells and early
development give greater definition to the field description. Figure 13
Well 2. Well 1. Proposed

delineation
well 3.
Proven
Oil
Proven
Initial appraisal stage.
Figure 11 Further Delineation Well.

19
Well 2. Well 1. Well 3.
Gas
Proven Proven
Oil
New oil water contact.
Figure 12 After Further Appraisal.
Well 4.
Well 2. Well 1. Well 3. Gas
Proven Proven
Oil
New oil water contact.
Figure 13 Final Appraisal Well.
From a deterministic perspective the various reserve estimates, that is, proven,
probable and possible can be further determined. The indication of the various
elements based on the top structure map are shown. Figure 14
20
2
Probable 3 4
Proved
Possible
Figure 14 Reserves Uncertainties by Deterministic Method.
5.3 Reservoir Area

The reservoir area can be obtained by separately evaluating the individual units
making up the reservoir as obtained from various reservoir maps. These maps are
derived from the evidence given from seismic and subsequent drilled wells. The
maps generally indicate the upper and lower extent of the reservoir section or
sections and the aerial extent as defined by faults or hydrocarbon contacts. Figure
15 shows an
aerial section with the defined limits. The contour lines are lines of constant subsea
depths. Figure 16 gives a cross section of a reservoir unit. The combination of the
two representations of the unit(s) can be used to calculate the gross rock volume.
F B
ault oundary
Porosity
Fluid
Contact
Fault Boundary
Boundary
7
Figure 15 Structure Contour Map.

21
r
Heighest Elevation
on Top Structure
Heighest Elevation
on Base Structure T Stru tur
op c e
Reservoi
r
Rock Volum
e
as tru tu
B eS c re
Hydrocarbon Water
Contact Elevation
o
Area Contained by
Contour
)s
u
n
(
e
l
7
Figure 16 Reservoir cross section.
Figures 17 & 18 show an example of a top structure map and cross section of the
Rough Gas field in the North Sea.
47/2 47/3
Completed Producers
G
w
C
9450
950
0 8 9400
950 GwC
0 9350
9550
0
0
9300
6
9 9500
8
8 C.I. = 50ft.
8
8
9250
A2
Proposed Well 8
Locations 8
8
x
Abandoned Wells AA
B
8
8 9200
47/7 A4
47/8 9100
47/8-1 8 A
A5
x
A
A3 A6 Platform A
A
9
9150 2
935
0
x
92
930
0
5
00
0
47/8-2
5
Figure 17 Top Sand Structure Map Rough Gas Field.
22
Depth (ft) A1 A4
subsea 9000 A3 Ro egende
tli s
9200 A5 Uncon orm

f ity
A2
ltF
l
t
9400
Tentative
hydrocarbon/
9600 water contact
u
9800 Uncon o m Carboniferous

f r ity Sands
a
u
5
Figure 18 Schematic Cross Section of The Rough Field.
5.4 Reservoir Thickness

Another representation of the reservoir formations is the reservoir thickness map.
Where the areal contour maps show the thickness normal to the plane of the
reservoir the contours are called isopachs. When the thickness is mapped as a
vertical thickness then the contour is called an isochore. Not all the reservoir
thickness will contrib
ute to fluid recovery and will include non-productive strata. Those contours which
include these non-productive material are called gross reservoir isopach and those
where non-productive material is excluded are called net reservoir isopach maps.
Those intervals contributing to flow are termed pay. The ratio of net to gross, hn/ht ,
is an important aspect in reservoir evaluation. Figure 19 shows a net pay thickness
isopach and the isopach map for the Rough field is shown in figure 20
Isopach C I
25 Units
75
0 150125 100
7
Figure 19 Net Pay Thickness Isopach.

23
47/2 47/3
140
G
130
GwC
120
110
100
A2
11
47/7
0
1 6
A5 70 0
47/8 x
A3 A1
47/8-1 A4
11
80 9
0
A6
47/8-2
x
5
Figure 20 Rough Field Isopach.
The isopachmap can also be used to calculate reservoir volume. For example in
figure 21 the area under a plot of net pay thickness vs. area contained within the
contour provides a net pay volume. These plots can be generated for each section
or rock type. The thickness plots for each section are called isoliths.
0
Volume
u
l
40
h
p
80
o
OWC
y 120 140 180
a
P Area Contained by Contour

t
N
Area Enclosed = Net Rock
7
Figure 21 Hydrocarbon Volume From Net Pay Isopach.
5.5 Reservoir Porosity

The variation of porosity can also be represented . The average porosity, φ, in a
well can be calculated from the thickness-weighted mean of the porosities 4 .
24
∑ ,
φ h
φ
knk
=
h=
k 1
w
(4) n
where φk is the average porosity derived from the log over a small thickness hn,k
within the net pay thickness, hn.
These values of porosity can then be plotted to generate an isoporosity map as il

lustrated in figure 22. The example of an isoporosity map for the Rough Field is
shown in figure 23.
Porosity C I
5 1015
20 25
5%
7
Map. A2
47/2 47/3
G
w
C
GwC
Figure 22 Iso Porosity
47/7 4
1
A4 1
10%
x %
47/8-1 A5 A1
A %
47/8 %
A3 2
8
A6
%
6
47/8-2 x
7
Figure 23 Rough Field Iso Porosity Map.

25
5.6 Water Saturation, Sw

The watersaturation in a reservoir isinfluenced by the characteristics of the
reservoir rock and the location with respect to the position above the free water
level near the oil-water or gas-oil contact (see section Reservoir Rock Properties
Chapter 7). The average water saturation Sw,w , can be calculated in a similar way to
porosity by calculating the volume weighted mean across the producing elements
of the forma tion, the pay.
m
Sw, kφkhn,k
k =1
Sw,w =
n
∑ φwh (5)
The values of Sw,w can be plotted and contours of constant saturation (isosaturation)
presented. Figure 24.
Shale
20 25 30 35
15 40
WOC
4
Figure 24 Iso Saturation (sw) Map.
A more detailed description together with exercises are given in the mapping
section of the geology module.
5.7 Formation Volume Factors Oil, B o and Gas, Bg

Thesepropertiesoftheoil andgaswhichconvertreservoirvolumestosurfacevolumes, are
generated from measurements made on fluid samplesfrom the reservoir. They do
not vary significantly across the reservoir when compared to the other rock related
parameters. These parameters are covered in the gas properties and oil properties
chapters. In some reservoirs where the formations are thick there is a compositional
gradient over the depth. This variation in composition from heavier (less volatile
components) to lighter components at the top results in a variation of the oil forma
tion volume factor, Bo over the thickness. In such cases an average value based on
values measured or calculated at depth would be a preferred value.
26
5.8 The Recovery Factor, E R

The proportion of hydrocarbons recovered is called the recovery factor. This fac tor
is influenced by a whole range of factors including the rock and fluid properties and
the drive mechanisms. The variability of the formation characteristics, the het
erogeneity can have a large influence on recovery. The development process being
implemented and the geometries and location of wells again will also have a large
influence. Calculating recovery therefore in the early stagesis not feasible and many
assumptions have to be included in such calculations. It is in this area that reservoir
simulation can give indications but the quality of the calculated figure is limited by
the sparse amount of quality data on which the simulation is based.
The American Petroleum Institute 6 has analysed the recoveries of different fields
and correlations have been presented for different reservoir types and drive
mechanisms. Figures 25 and 26 give the residual saturations and oil recovery
efficiences for dif ferent drive mechanisms. The API also presents correlations for
recoveries,ER,
For sandstone and carbonate reservoirs with solution gas drive
10 1611 0 09790 37220 1741 φ

 .
=. ()−
.
.
       0 4185
     ( )   
k p
ES S p
w .
Ro b
,
B ∝
 (6)
w
ob ob
a
For sandstone reservoirs with water drive
φ
0 0422 0 0770
∝ 1903
.
.
       
=.. ( ) −      ( )   − −
ES
1 k p
0 54898 0 2159 S p
o
i
Ro, w
wi w
B .

∝
(7) oi
oi a
breferstobubblepoint conditions,iisthe initial conditionanda,referstoabandonment

pressure.

27
RESIDUAL SATURATIONS
1.00
1.00
e
2 5 10 20 30 40 50 60 70 80 95 98
Sor In Water Drive
Reservoirs
c
n
O
a
o (
p i
t r
S
c o
e a S
r r
o F
P
s
l
a
a
t )
o r 0.50
T g
S
f
o
R
2 M
Sgr In Solution Gas Drive

Reservoirs 5 10 20 30 40 50 60 70 80 95 98
PERCENTAGE OF CASES
LARGER THAN
0.10
0.50
0.05 −σ+σ
0.10
0.05
N
0
A
I
0 D
Figure 25 Log - Probability Residual Oil Saturation For Water Drive and Solution Gas
6
Drive Reservoirs. (API )
2 5 10 20 30 40 50 60 70 80 95 98
N R
E
L
M I
1.00
N O
N
0.50
0.10
A
0.05
D
E
I
0.10
F
Solution Gas Drive
T
A
0.05
0
Y
2
C E
RESIDUAL
N
C
SATURATIONS
−σ+σ
AL
E
P
I
LI N
C O A
I I
F
F
O Water Drive
D
0
E
F T
M
E NE Gas Cap Drive
C
Y
5 10 20 30 40 50 60 70 80
RE
P
R
NI
E
1.00 95 98 PERCENTAGE OF
V
O
CASES LARGER THAN
C Gas Cap Drive +
E
0.50 Water Injection
6
Figure 26 Log - Probability of Oil Recovery For Various Drive Mechanisms. (API )
28
5.9 Production Capability

Another concept, isocapacity, is used to signify production capability. Isocapacity
denotes equal values of permeability-net thickness product. This product can be
mapped instead of permeability. The figure 27 shows an isocapacity map where the
absolute permeability has been obtained as an arithmetic average in the zone.
45432
1
23
0.5
1
0.25
7
Figure 27 Isocapacity Map.
The permeability map for the Rough Field is given in figure 28
47/2 G
w
C
GwC
40
47/7 47/8
120 100
A2 A4 A6
80
47/8-2 Platform B
x
47/8-1 A5
x 60 A3
0
Contour Intervals 20 millidarcies
5
Figure 28 Rough Field Permeability Map.

29
5.10 The Hydrocarbon Pore Volume Map
The hydrocarbon pore volume can be obtained by combining the net rock volume
with a mean porosity and a mean hydrocarbon saturation. An alternative is the
mapping of hydrocarbon thickness (HPT) at each well. HPT at a well in a given
zone is:
__
HPT = φ h S n h
..
(8)
where:
Sh_=1 − Sw_
Figure 29 gives an HPT map and the Rough Field HPT map is given in figure 30
14
14
13
12
11
12
10
0 11
9 10
15
13
0
7
Figure 29 Hydrocarbon Pore Thickness Map.
10
A2
9 A1 A3
A6 5
4
A4
7
8
A5 6
5
Figure 30 Rough Field Hydrocarbon Pore Thickness.
30
6. OTHER APPRAISAL ROLES
In building up the ‘picture’ to enable the reserves estimates and recoveries to be

determined the reservoir engineer will be involved in an number of aspects. One of
the most powerful tools is the production test.
In a well test an exploration or appraisal well is converted to a short term producing

well, with all the associated facilities put in place to handle the produced fluids and
monitor fluid rates. A downhole pressure monitoring device is also located in the
well. Figure 31. The well is flowed at a constant rate , and sometimes two rates as
illustrated in figure 32a, a two rate test. The downhole pressure device responds to
the production and pressure declines. After a short or longer time period depending
on the nature of the test, the well is “shut in”, i.e. the flow is stopped. In the well
the pressure builds up and eventually as monitored by the downhole pressure
device, recovers to the original pressure. Figure 32b. It is in the analysis of the
pressure drawn down and build up curves and the rates that the reservoir engineer
is able to determine the flowability of the reservoir. If the flowing interval
thicknessis known, the permeability can be calculated. The presence of faults can
also be detected.
A considerable amount of reservoir data can be obtained from these well tests
sometimes called DST’s ( drill stem tests). It has been the practise over recent years
for the produced fluids to be flared since there is unlikely to be an infrastructure to
collect these fluids. Now that companies aremoving to a zero orreduced
hydrocarbon emission policy the nature and facilities required for these tests are
changing. A feature of the flaring approach is a public demonstration of the
productivity of the well being tested.
31
Cement
Surface casing
Production casing
Production tubing
Perforations
Packer
Down hole Figure 31 Production Test Assembly.
pressure monitor
32
Flow 1 Flow 2 Well shut in t
/
Pressure draw down
s
Pi
Pressure build up
i
t
Two Rate Test.
Figure 32 Production Test Analysis.
Well test analysis is a powerful reservoir engineering tool and is treated in depth in
a subsequent module of the Petroleum Engineering course.
The nature of the fluids is key to reservoir behaviour and also subsequent
processing in any development. The collection and analysis of these fluids is an
important role and is at the focus of PVT analysis. This topic is covered in Chapter
14 PVT Analysis. The pressure profile in a well is another important aspect of
reservoir characterisation and can be used to identify fluid contacts. When used
during the early stages of production it can be a powerful means of refining the
structure and hydrodynamic continuity characteristics of the reservoir. This is
covered in the next
chapter. Like PVT analysis where the information is based on samples removed
from the reservoir, core analysis is based on recovered core from the formation.
Various tests on this material and its reaction to various fluids provides many of the
reservoir engineering parameters important in determining the viability of a project.
Core analysis also provides a cross check for indirect measurements made
downhole. These core analysis perspectives are covered in chapters 7 and 8.
It is clear from what we have discussed that reservoir engineering is an important

function in the appraisal of the reservoir. The focus for this appraisal so far has con
centratedondeterminingthe characteristics andpotentialflowbehaviourof a reservoir
under development. Clearly there could be a whole range of possibilities with
respect to the plan that could be used to develop the field. This development
planning per spective is an important part of the reservoir engineers role. Again it
is a team effort

33
involving the geological community who understand the ‘reservoir’ and the various
engineers who have the responsibilities of designing and operating the hardware to
enable production. An important part of any future development are the facilities
that would be required for sustained production and its is therefore an important
part of the appraisal stage to provide data for those who would have responsibility
for good quality data predictions which will enable optimised facility design.
In any project new data is always being generated. Indeed for a reservoir, its
characteristics are unlocked over the whole lifetime of the project. The duration of
the appraisal stage clearly is a techno economic decision related to the confidence
to go ahead based on a good foundation of quality data and forecasts. Fine tuning
can always be carried out but this is costly if this delays the development stage. It
is important to identify and fill the gaps for the largest uncertainties, and having
sufficient information to design a system which is safe and cost effective. The
difficulty is making the decision on the data under which a line is drawn which
definesthe basisfor field development design. In reservoir development the reservoir
is always revealing its properties, indeed it is in the production phase that the true
characteristics are revealed.
7 DEVELOPMENT PLANNING
7.1 Reservoir Modelling

Given appraisal well data, and test results the reservoir engineer can consider some
alternative development plans, relying heavily on experience and insight. Since the
80’s computer based reservoir simulation has played a major role.
The starting point will invariably be a reservoir map used to calculate reserves, but
in addition use will be made of the material balance equation (chapter 15), together
with some drive concepts (chapter 11), to predict reservoir behaviour. One of the
problems faced in making predictions is to adequately take into account knowledge
about geologicaltrends and, although individualwellmodels can be adjusted to
reflect local conditions, there is no practical ‘desk calculator’ technique for using
say, the material balance equation and well models to come up with a predictive
reservoir performance. Displacement models such as those derived by Buckley and
Leverett (chapter 18), mainly from observations in the laboratory, give some
insight into reservoir behaviour but again do not significantly assist in allowing the
engineer to study the effect of alternative development plans on a heterogeneous
reservoir.
With insight and ingenuity, the reservoir can be divided into a number of simple
units that can be analysed by the traditionally available techniques but such an
approach remains unsatisfactory. Over recent years the integration of geological
and geophysical perspectivesis contributing considerably to the ‘confidence’in
reservoir modelling.
7.2 Technoeconomics
For hydrocarbon accumulations found on dry land the traditional reservoir
engineering techniques available forfielddevelopmentplanningwere,infact,quite
adequate. This is mainly so because land development operations offer a high
degree of planning
34
flexibility to oil companies and hence allow them to make optimal use of the latest
information. In an offshore environment this is not the case; once platforms have
been ordered most development options are closed. It is with respect to offshore
field development planning that reservoir simulation models have found their
greatest
application potential.
7.3 Coping with Uncertainty

The challenge to the exploration & production business of the oil & gas industry is
considerable. The looking for the “needle in the haystack” scenario is not too far
from the truth, when compared to other industrial sectors. With the challenge of
reserves being found in technically challenging areas and the oil price moving in
response to political as well as demand scenarios, there is the need to define more
accurately forecasts of production and recovery. Reducing uncertainty is the
message of the current decade and not least in reservoir engineering and its related
disciplines.
It is clear from what we have overviewed in this chapter and the topics which will
be covered in the subsequent chapters that there are many parameters which
contribute to the viability of the various aspects of successful oil and gas
production. It is also clear that the various forms of data required, the confidence
in the absolute values
vary according to the type, and therefore the final impact on the final result will
vary according to the particular parameter.
The following list summarises some of the principal uncertainties associated with
the performance of the overall reservoir model. The type of data can for example
be subdivided into two aspects “static” and “dynamic” data .
Static Properties
• Reservoir structure
• Reservoir properties
• Reservoir sand connectivity
• Impact of faults
• “thief” sands
Dynamic Properties
• Relative permeability etc
• Fluid properties
• Aquifer behaviour
• Well productivity (fractures, welltype, condensate drop out etc.)
The impact of each of these parameters will vary according to the particular field
but it is important that the company is not ignorant of the magnitude of the
contributing uncertainties, so that resources can be directed at cost effectively
reducing specific uncertainties. Figure 33 illustrates an outcome which might arise
from an analysis of various uncertainties for a particular field. It demonstrates for
this particular field and at the time of analysis the impact of the various data has on
the final project cost. Clearly in this case the aquifer behaviour uncertainties has the
least impact whereas reservoir structure and well productivity uncertainties had the
most significant. An other field would result in different impact perspectives, and
therefore a different strategy to reduce overall project uncertainty would be
required.

35
Q
Well
Reservoir production
area permeabilities etc.
Reservoir
structure
Sand
conectives
P
Project Cost
Fluid properties
Aquifer
Relative behaviour
Thief zones
Faults
- Changes +
Figure 33 Impact on a Project of Different Uncertainties
8 PRODUCTION OPERATIONS OPTIMISATION
8.1 The Development Phase

The development phase covers the period from the time continuous production
starts until the production from the field stops i.e. abandonment. The decision when
to stop production clearly is a techno-economic decision based to a large extent on
the costs of the development. Low volume producers can be allowed to continue in
an onshore development where well operating costs might be low but the high costs
associated with for example in an expensive offshore operation sets a much higher
economic limit for the decision to abandon a field.
During the development phase Dake2 hasidentified a number ofrolesfortheReservoir

Engineering which are targeted at optimising production. It is an irony that some
of the best data is generated during the production phase. Through production the
reservoir unveils more of its secrets. Some of these may cause modifications to the
development, perhapsin defining newwell locations.The nature ofthe hydrodynamic
continuity of the reservoir is mainly revealed through pressure surveys run after a
period of production. This may define zones not being drained and therefore
modifications to the well completions might result.
As production progresses fluid contacts rise and therefore these contacts need to be
monitored and the results used to decide, for example, to recomplete a well as a
result of, for example excessive water production. As is pointed out in the chapter
on reservoir pressure, development wells before they are completed provide a
valuable resource to the reservoir engineer to enable surveys of pressure to be run
to provide
a dynamic pressure-depth profile.
36
8.2 History Matching

Throughout the production phase the comparison of the actual performance with
that predicted during the appraisal stage and more recent predictions is made. It is
during this stage that the quality of the reservoir simulation model comes under
examina tion. The production pressure decline is compared to that predicted and
the reservoir simulation model adjusted to match. This process is called history
matching. Clearly if the simulation cannot ‘predict’ what has happened over the
recent past it cannot be used with much confidence to forecast the future!
More simple approaches not requiring the resources of a complex simulator can
also be used to up date early predictions, for example material balance studies.
Once production has been obtained, the additional data becomes available and
makes an important contribution to the refining of the initial reserves estimates.
Two tech niques historically used are decline curve analysis and material balance
studies.
In material balance studies, the pressure-volume behaviour of the entire field is

studied assuming an infinite permeability for the reservoir. By assuming an initial
oil-in-place fromvolumetric calculations,the pressure is allowed to decline
following fluid withdrawal. This decline is matched against the observed pressure
behaviour and, if necessary, the original oil-in-place figure is modified until a
match is obtained. In the presence of a water drive, additional variables are
included by allowing water influx into the ‘tank’. Water influx is governed by
mathematical relationships such as van Everdingen and Hurst (These concepts are
covered in Chapters 11, 12, and 13 MB/MB Applications and Water Influx).
Decline curves are plots of rate of withdrawal versus time or cumulative withdrawal
on a variety of co-ordinate scales. Usually a straight line is sought through these ob
servations and extrapolated to give ultimate recovery and rates of recovery. Decline
curves only use rates of withdrawal and pay relatively little attention to the
reservoir and flowing pressures.Achange in the mode of operation ofthe field could
change the slope of the decline curve; hence, this is one of the weaknesses of this
technique.
A noteworthy feature of these two approaches is that the engineer in fact ‘fits’ a sim
ple model to observe data and uses this model to predict the future by
extrapolation. As more data becomes available the model gets ‘updated’ and
predicted results are adjusted. Decline curve analysis has not been used to the same
extent as in the 60’s and 70’s. With the power of computing and the efforts made to
integrate geological understanding , the physics of the flow and behaviour of rock
and fluid systems into reservoir simulation, the ‘fitting” and the uncertainty of
earlier methods are being superseded by integrated reservoir simulation modelling.
The routine company function will generate the need for on going production pro
file updates. The generation of these is generally the responsibility of the reservoir
engineer, who might chose simple analytical approaches to the more costly
reservoir simulation methods.
8.3 Phases of Development

During the development there are a number of phases. Not all of these phases may
be part of the plan. There is the initial production build up to the capacity of the
facil-

37
ity as wells are brought on stream. There is the plateau phase where the reservoir is
produced at a capacity limited by the associated production and processing
facilities. Different companies work with different lengths of the plateau phase and
each project will have its own duration. There comes a point when the reservoir is
no longer able to deliver fluids at this capacity and the reservoir goes into the
decline phase. The decline phase can be delayed by assisting the reservoir to
produce the fluids by the
use of for example ‘lifting’ techniques such as down-hole pumps and gas lift. The
decline phase is often a difficult period to model and yet it can represent a
significant amount of the reserves. These phases are illustrated in figure 34
Plateau phase
e
n
Artificial lift
oi
tc
u
d
Build up phase Decline phase
or
Economic limit
Time - years
Figure 34 Phases of Production.
The challenge facing the industry is the issue of the proportion of hydrocarbons left
behind. The ability to extract a greater proportion of the in-place fluids is obviously
a target to be aimed at and over recent years recoveries have increased through the
application of innovative technology. Historically there have been three phases of
recovery considered. Primary recovery, which is that recovery obtained through the
natural energy of the reservoir.
Secondary recovery is considered when the energy is supplemented by injection of

fluids, for example gas or water, to maintain the pressure or partially maintain the
pressure. The injected fluid also acts as a displacing fluid sweeping the oil to the
producing wells. After sweeping the reservoir with water or gas there will still be
remaining oil; oil at a high saturation where the water for a range of reasons, for
example; well spacing, viscosity, reservoir characteristics to name just a few, has
by-passed the oil. The oil which has been contacted by the injected fluid will not be
completely displaced from the porous media. Because of characteristics of the rock
and the fluids a residual saturation of fluid is held within the rock. Both of these
unrecovered amounts, the by-passed oil and the residual oil are a target for
enhanced recovery methods, EOR.
Much effort was put into enhanced oil recovery (EOR) research up until the mid
seventies. Sometimes it is termed tertiary recovery. When the oil price has dropped
the economics of many of the proposed methods are not viable. Many are based on
38
the injection of chemicals which are often oil based. The subject of EOR has not
been forgotten and innovative methods are being investigated within the more
volatile oil price arena. Figure 35 gives a schematic representation of the various
phases of development and includes the various improved recovery methods. More
recently a new term has been introduced called Improved Oil Recovery (IOR).
IOR is more loosely defined and covers all approaches which might be used to
improve the recov
ery of hydrocarbons in place. Clearly it is not as specific as EOR but provides more
of an achievable target than perhaps some of the more sophisticated EOR methods.
As we have entered into the next millennium it is interesting to note that a number
of major improved recovery initiatives are being considered particularly with
respect to gas injection. One perspective which make a project more viable is that
of the disposal of gas for example which is an environmental challenge in one field
can
be the source of gas for another field requiring gas for a gas injection improved oil
recovery process.
Primary
Recovery
Artifical Lift
Pump gas lift etc.
Natural VENTIONA
L
Flow Secondary
Recovery
Natural
Flow
Pressure
Maintenance
Water, gas injection
E
O Tertiary
CO Recovery
N
Thermal Gas Chemical Microbial R

Steam In-situ N2 immiscible polymer
combustion. gas
Hydrocarbon Polymer
miscible, CO2 surfactant/
Figure 35 Oil Recovery Mechanisms.
9. THE UNIQUENESS OF THE RESERVOIR
As we have discussed the role of the reservoir engineer in combination with other
disciplines is to predict the behaviour of the reservoir. Whereas in the early years of
oil exploration little attention was paid to understanding the detailed characteristics
ofthe reservoir, it is now recognized that detailed reservoir properties associated
with
often complex physical and chemical laws determine field behaviour. The
unlocking of these characteristics and understanding the laws enable engineering
plans to be put in place to ensure optimised developments are implemented. This is
schemati cally illustrated in figure 36.

39
Behaviour
Development
Plan
Reservoir Description
Unique
Dynamic and Static
Reservoir
Figure 36 Relationship between Reservoir Description, and Reservoir Behaviour.
At one extreme for example in a blow - out situation, a reservoir produces in an un

controlled manner only restricted by the size of the well through which is
producing. Optmised development however based on a thorough understanding of
the reservoir enables the reservoir to be produced in a controlled, optimised
manner.
In many other industries the effort expended on one project can be utilised in engi
neering a duplicate or a similar size unit elsewhere. Such opportunities are not pos
sible in the engineering of a reservoir. Reservoirs are unique in many aspects. The
composition of the fluids are unique, the rock characteristics and related properties
are unique, the size and shape are unique and so on. From our perspective this reser
voir description is dynamic as the reservoir over a period of time gives up its
secrets. From the reservoir’s perspective however the description is static, except
with the changes resulting from the impact of fluid production or injection. The
challenge to those involved is reducing the time it takes for our dynamic
description to match, our static description known only to the reservoir or whoever
was responsible for its formation! The answer perhaps is more of a philosophical
nature. The reality is shown in figure 37 where the top structure map for a North
Sea gas field with a ten year gap shows the impact of knowledge gained from a
number of wells as against that interpreted from the one well. Considerable
faulting is shown not as a result of major geological a activity over the ten years
but knowledge gained from the data associated with the new wells.
40
Introduction To Reservoir Engineering 0
0
2
2°10 2°20
210
0
0
0
0
1
2°00
53°10 53°10 SHELL/ESSO 49/26 AMOCO 49/27

200 120
0 0
Gas /water contact

2 Depths in metres
2
0
scale 1 100,000
2100
0 210
49/26.1 0
53°05 53°05
200 200
0
100
0 0
100 200 100
0 0 0
100
0 100
0
2100
2°20
2°00
80
200 0
0
2000
Present interpretation of Leman Gas-field, showing contours on top of Rotliegendes in feet below sea-level The Leman
field as it appeared to be when the exploration well was drilled Figure 37 (a) The Leman
Field as it Appeared to be When The Exploration Well Was Drilled.
2°20 2°30
53°10
2°10 53°10
2°00 SHELL/ESSO 49/26 AMOCO

49/27 Depth in feet
Miles KMS
01012
630
0
700
0
630
0 Gas /water contact A permanent platform
53°05 53°05
620 690
0 6300 0
690
0 610
0
6900 6400
6300
690 640
0 690 0
0
700
0 690 63006400
0
53°00 53°00
2°00 2°10
2°20
2°30
Present interpretation of Leman Gas-field, showing contours on top of Rotliegendes in feet below sea
level. Figure 37b Leman Field Ten Years After Discovery

Leman field ten years after discovery
The coverage of the reservoir has also changed effecting the equity associated with
the blocks. This illustrates the early benefits to be gained from drilling a number of
explorationwells.These equityagreements, are calledunitisationagreements andsuch
agreements are shortened when good quality and comprehensive reservoir descrip
tion data is available. Clearly there can never be sufficient description, however the

41
economics of project management will determine when decisions have to be taken

based on description to date. The value of extra information has to be balanced by
the cost of delay in going ahead with a project.
10. CONCLUSION
In order to accomplish these objectives the Petroleum Reservoir Engineer should

have a broad fundamental background both theoretically and practically in the
basic sciences and engineering. The basic areas are:
(i) The properties of petroleum reservoir rocks

(ii) The properties of petroleum reservoir fluids
(iii) The flow of reservoir fluids through reservoir rock
(iv) Petroleum reservoir drive mechanisms
It is also important that the Petroleum Reservoir Engineer has a thorough basic
understandingingeneral,historical andpetroleumgeology.The influenceofgeological
history on the structural conditions existing in a reservoir should be known and
considered in making a reservoir engineering study. Such a study may also help to
identify and characterise the reservoir asto its aerial extent,thickness and
stratification and the chemical composition, size distribution and texture of the rock
materials.
In his latest text, Dake2 comments on some of the philosophy of approach to reser
voir engineering, and identifies the importance of pinning down interpretation and
prediction of reservoir behaviour to well grounded laws of physics.
Reservoir forecasting has moved on considerably since wells were drilled with little
interest and concern into the production and forecasting of what was happening in
the reservoirs thousands of feet below. The approach to coping with uncertainty as
jokingly reflected in the cartoon below, (Figure 38) is no longer the case as sophisti
cated computational tools enable predictions to be made with confidence and
where uncertainty exists the degree of uncertainty can be defined.
42
"We feed the geological data for the area, the computer produces a schematic topological
overview designating high probability key points, then we stick the printout on the wall and
Lever throws darts at it."
Figure 38 A Past Approach to Uncertainty!
REFERENCES
1. Craft, B.C. and Hawkins, M.F. Applied Reservoir Engineering, Prentice-Hall

Inc. 1959
2. Dake, L.P., The Practise of Reservoir Engineering. Elsevier. 1994 3. Society
Of Petroleum Engineers. Reserves Definitions 1995. 4. Chierici,G.L. Principles
of Petroleum Reservoir Engineering. Vol 1 Springer Verlag 1994
5. Hollois,A.P. Some petroleum engineering considerations in the change over of
the Rough Gas field to the storage mode. Paper EUR 295 Proc Europec. 1982,
pg 175
6. API.AStatisticalStudyoftheRecoveryEfficiency.AmericanPetroleumInstitute.
Bull D14, 1st Edition ,1967
7. Archer,J.S.andWall,C.G.PetroleumEngineeringPrinciples andPractise,Graham
and Trotman ,1986.

43
Reservoir Pressures and Temperatures
CONTENTS
1 INTRODUCTION
2 ABNORMAL PRESSURES
3 FLUID PRESSURES IN HYDROCARBON

SYSTEMS
4 PRESSURE GRADIENTS AROUND WATER-

OIL CONTACT
5. TECHNIQUES FOR PRESSURE

MEASUREMENT
6. RESERVOIR TEMPERATURE
LEARNING OBJECTIVES
Having worked through this chapter the Student will be able
to: • Having worked through this chapter the student will be able to:
• Define the terms; lithostatic pressure, hydrostatic pressure and hydrodynamic

pressure.
• Draw the normal hydrostatic pressure gradient for water systems.
• Definenormalpressuredreservoirs,overpressuredreservoirs andunderpressured
reservoirs
• Describe briefly and sketch the pressure gradients associatedwith

overpressured and underpressured reservoirs.
• Describe briefly , sketch and present equations for the pressures in a water
supported oil and gas bearing formation.
• Illustrate how a downhole formation pressure device can be used to

discriminate permeability layers after production has commenced.
• Comment briefly what geothermal gradient is in a reservoir where flow

processes occur at constant reservoir temperature.
1. INTRODUCTION
Determining the magnitude and variation of pressures in a reservoir is an

important aspect in understanding various aspects of the reservoir, both during the
exploration phase but also once production has commenced.
Oil and gas accumulations are found at a range ofsub-surface depths. At these
depths pressure exists as a result of the depositional process and from the fluids
contained within the prous media. These pressures are called lithostatic pressures
and fluid pressures. These pressures are illustrated in figure 1.
The lithostatic pressure is caused by the pressure ofrockwhich istransmitted

through the sub-surfacebygrain-tograincontacts. Thislithostaticorsometimes
calledgeostatic or overburden pressure is of the order of 1 psi/ft. The lithostatic
pressure gradient varies according to depth, the density of the overburden, and the
extent to which the rocks are supported by water pressure. If we use this geostatic
pressure gradient of 1 psi/ft. then the geostatic pressure Pov, in psig at a depth of D
feet is
pov = 1.0D (1)

The geostatic pressure is balanced in part by the pressure of the fluid within the
pore space, the pore pressure, and also by the grains of rock under compaction. In
un consolidated sands, loose sands, the overburden pressure is totally supported by
the fluid and the fluid pressure Pf is equal to the overburden pressure Pov . In
deposited formations like reservoir rocks the fluid pressure is not supporting the
rocks above but arisesfrom the continuity of the aqueous phase from the surface to
the depth D in the reservoir. This fluid pressure is called the hydrostatic pressure.
The hydrostatic pressure is imposed by a column of fluid at rest. Its value depends
on the density of the water ρw, which is affected by salinity. In a sedimentary basin,
where sediment has settled in a region of water and hydrocarbons have been
generated and trapped, we can expect a hydrostatic pressure. For a column of fresh
water the hydrostatic pressure is 0.433 psi/ft. For water with 55,000 ppm of
dissolved salts the gradient is 0.45 psi/ft; for 88,000 ppm of dissolved salts the
gradient is about 0.465 psi/ft.
Its variation with depth is given by the equation.
Pf = ρwDg (2) where g is the acceleration due to gravity.
There is another fluid pressure which arises as a result of fluid movement and that
is called the hydrodynamic pressure. This is the fluid potential pressure gradient
which is caused by fluid flow. This however does not contribute to in-situ pressures
at rest.
Institute of Petroleum Engineering, Heriot-Watt University
FP GP
14.7
Overburden
Pressure (OP)
Overpressure
Pressure (psia)
ure
Normal
Underpress
(FP = Fluid Pressure, GP = Grain Pressure)
Figure 1 Gives the relationship between the lithostatic pressure and the hydrostatic
1
pressure.
Fluid pressure in hydrocarbon accumulations are dictated by the prevailing water

pressure in the vicinity of the reservoir. In a normal situation the water pressure at
any depth is:
P dP
  + w
=   (3) dDx D 14.7psia water
where dP/dD is the hydrostatic pressure gradient
This equation assumes continuity of water pressure from the surface and constant
salinity. In most cases even though the water bearing sands are divided between
impermeable shales, any break of such sealing systems will lead to hydrostatic
pres sure continuity, but the salinity can vary with depth.
Reservoirs whose water pressure gradient when extrapolated to zero depth give an
absolute pressure equivalent to atmospheric pressure are called normal pressured
reservoirs.
EXERCISE 1
If the average pressure gradient in a region is 0.47 psi/ft, calculate the pore
pressure in a normally pressurised formation at 7400ft. Convert the pressure
from psi to KPa, then express the pressure in MPa. What is the pressure
gradient in KPa/m?
2. ABNORMAL PRESSURE
Under certain conditions, fluid pressures may depart substantially from the normal
pressure. Overpressured reservoirs are thosewhere thehydrostaticpressure is
greater than the normal pressure and underpressured reservoirs are below normal
pressure. Figure 1. They are called abnormal pressured reservoirs and can be
defined by the equation:
P = dP
 
w
dD x D + 14.7 psia + C water


(4)
where C is a constant, being positive for overpressured and negative for an under
pressured system.
For abnormally pressured reservoirs, the sand issealed offfromthe surrounding

strata so that there is not hydrostatic pressure continuity to the surface.
Conditions which cause abnormal fluid pressure in water bearing sands have been
identified by Bradley 2 and include (Figure 2):
FP-Too High
Upthrust
(a)
Original Deposition
Shale deposited too

(b) Dense Shale
Reservoir
North Sea
Glacier
Greenland 3 km thick
(c) 1300 psi/1000 m ice
Normal Surface
quickly to allow
fluid equilbrium
Figure 2 Causes of overpressurring
• Thermal effects, causing expansion or contraction of water which is unable to

escape ; an increase in temperature of 1˚F can cause an increase of 125 psi in
a sealed fresh water system.
• Rapid burial of sediments consisting of layers of sand and clay. Speed of

burial does not allow fluids to escape from pore space.
• Geological changes such as uplifting of the reservoir, or surface erosion both

of which result in the water pressure being too high for the depth of the
burial. The opposite occurs in a down thrown reservoir.
• Osmosis between waters having different salinity, the sealing shale acting as a
semi-permeable membrane. If the water within the seal is more saline than
the surrounding water, the osmosis will cause a high pressure and vice versa.
Overpressured reservoirs are common in Tertiary deltaic deposits such as the

North Sea, Niger delta and the Gulf Coast of Texas. In the North Sea one
mechanism for overpressure is the inability to expel water from a system of
rapidly compacted shales.
With abnormally pressured reservoirs a permeability barrier must exist, which

inhibit pressure release. These may be lithological or structural. Common
lithological barriers are evaporates and shales. Less common are the impermeable
carbonates and sandstones. Structure permeability barriers may result from faults
which, in some cases, seal. The subject on of abnormal pressures is covered more
fully in
the Geology Module
If reservoirs are all normal pressured systems then the pressure gradient for these
reservoirs would be virtually all the same, other than from the influence of salinity.
The figure below shows the water pressure gradients for a number of reservoirs in
the North Sea and indicates the significant overpressuring in this region. Often
these overpressuring show regional trends. For example the fields depicted in
figure 3 show an increase in abnormal pressure in the south east direction. Clearly
if all these reservoirs were normally pressured then the pressure depths values
would lie on the same gradient line with a zero depth pressure value of
atmospheric pressure.
9,000 10,000
)
t
e
8,000
e
F
(
h Statfjord OWC
t
Cormorant
OWC
Brent OWC
Thistle OWC
Ninian
OWC
21
11,000 12,000
D 3
Lyell
a
bu
S.W> Ninian 5
S
Heather
OWC Alwyn
N.W. Alwyn
Note: Water gradient lines drawn
through known or projected
oil/water contacts
13,000
5000 6000 7000 8000 9000 10,000 Pressure, psig
3
Figure 3 Examples of overpressured reservoirs in the North Sea
3. FLUID PRESSURES IN HYDROCARBON SYSTEMS
Pressure gradients in hydrocarbon systems are different from those of water

systems and are determined by the oil and gas phase in-situ specific gravities, ρo
and ρg of each fluid.
The pressure gradients are a function of gas and oil composition but typically are:
dP
 
dD = (0.45 psi / ft) water

 (5)

  (6)
dP

dD = (0.35 psi / ft)


oil
 dP 
dD = (0.08 psi / ft)



(7)gas
For a reservoir containing both oil and a free gas cap a pressure distribution
results, as in the Figure 4 As can be seen, the composition of the respective fluids
gives rise to different pressure gradientsindicated above.These gradients will be
determined by the density of the fluids which result from the specific composition
of the fluids.
Depth (Ft.)
13
0.29 psi/ft gm/cc 6
8500
12
10 9
11 8
7
Gas-Oil 0.17 psi/ft
8600 ρf = 0.39
)
.
Contact
t
(
h
e 5
3
D
2
8700
1
0.47 psi/ft
ρf = 1.09 gm/cc
Oil-Water Contact
8800
4
ρf = 0.67 gm/cc
4050 4100 4150 Formation Pressure
4000
(PSI)
Figure 4 Pressure distribution for an oil reservoir with a gas cap and an oil-water contact.
The nature of the pressure regime and the position and recognition of fluid
contacts are very important to the reservoir engineer in evaluating reserves, and
determining depletion policy.
The data used for these fluid contacts comes from:
(i) Pressure surveys

(ii) Equilibrium pressures from well tests
(iii) Flow of fluid from particular minimum and maximum depth (iv)
Fluid densities from reservoir samples
(v) Saturation data from wireline logs
(vi) Capillary pressure data from cores
(vii) Fluid saturation from cores
EXERCISE 2
If the pressure in a reservoir at the OWC is 3625 psi, calculate the pressure at the
top if there is a 600ft continuous oil column. If a normal pressure gradient exists
outwith the reservoir, calculate the pressure differential at the top of the reservoir.
Redo the calculations for a similar field, but this time containing gas.
4. PRESSURE GRADIENTS AROUND THE WATER-OIL CON

TACT
Water is always present in reservoir rocks and the pressure in the water phase Pw
and the pressure in the hyrocarbon phase Po are different . If P is the pressure at the
oil/water contact where the water saturation is 100%, then the pressure above this
contact for the hydrocarbon and water are :
Po = P - ρogh (8) Pw = P - ρwgh (9)

The difference between these two pressures is the capillary pressure Pc: see
Chapter 8. In a homogenous water-wet reservoir with an oil-water contact the
variation of saturation and phase pressure from the water zone through the
capillary transition zone into the oil is shown in Figure 5). In the transition zone
the phase pressure difference is given by the capillary pressure which is a function
of the wetting phase saturation. (Chapter 8).
Oil Phase Pressure po =
Oil Zone pFWL - ρogh
Capilliary Transition Zone
Oil Gradient
Vertical Depth D
Swpc pc (Sw)
∆ρg h = WOC
FWL
Water Phase
(pc = o)
Pressure pw = pFWL -
Water Gradient ρwgh
Water Zone
FWL
p01
Swc
Water Saturation, Sw Pressure, P
Figure 5 Pressure Gradients around the Water-Oil Contact
Pc = Po - Pw (10) at hydrostatic equilibrium
Pc(Sw) = ∆ρgh
∆ρ = ρw-ρo
h = height above free water level

The free water level, FWL, is not coincident with the oil-water contact OWC. The
water contact corresponds to the depth at which the oil saturation starts to increase
from water zone. The free water level is the depth at which the capillary pressure
is zero.
The difference in depth between the oil-water contact and the free waterlevel
depends on the capillary pressure which in turn is a function of permeability, grain
size etc.
Providing the phase is continuous the pressures in the respective phases are:
Po = PFWL - ρogh (11) Pw = PFWL - ρwgh (12)
On the depth-pressure diagram the intersection of the continuous phase pressure

line occurs at the free water level.
5. TECHNIQUES FOR PRESSURE MEASUREMENT
Earlier tests for vertical pressure logging have been replaced by open-hole testing
devices that measure the vertical pressure distribution in the well, and recover for
mation samples.
One such device which was introduced in the mid seventies which has established
itself in reservoir evaluation is the repeat formation tester RFT (Schlumberger
trade name). It wasinitially developed as a device to take samples. Overthe years
however itsmain application isto provide pressure -depth profiles
overreservoirintervals.The device places a probe through the well mud cake and
allows small volumes of fluid to be taken and pressure measurementsto be made
(Figure 6). It can only be operated therefore in an open hole environment. The unit
can be set at different locations in the well and the pressure gradient thereby
obtained. This device has been superseded by different tools provided by a number
of wireline service providers. The principle is the same of measuring with a probe
in open hole the pressure depth profile.
10
Packer
Mud Cake
Packer
Filter
Flow Line
to Upper Chamber
Equalising Valve (To Mud Pressure Guage Chamber 1Flow Line

Column)
Formation
Chamber 2
Probe Closed
Probe Open and Sampling
Seal Valve
to Upper Chamber
Seal Valve Piston
Figure 6 Original Schematic of the RFT Tool
These open hole pressure measurements have proved valuable at both the appraisal
stage and can be used to establish fluid contacts. It has also proved particularly
valu able during the development stage in accessing some of the dynamic
characteristics of the reservoir. The pressure changes in different reservoir layers
resulting from production reveal the amount of interlayer communication and
these pressure meas urements can be a powerful tool in understanding the
characteristics of the reservoir formation.
By comparing current pressure information with those obtained prior to

production, important reservoir description can be obtained which will aid
reservoir depletion, completion decisions and reservoir simulation.
In 1980 Amoco3 published a paper with respect to the Montrose Field in The North
Sea which illustrates the application of pressure-depth surveys. Figure 7 shows the
pressure depth survey in 1978 of a well after production since mid 1976. Only the
top 45ft of the 75ft oil column had been perforated. The initial pressure gradient in
dicates the oil and water gradients at the condition of hydrostatic equilibrium. The
second survey shows a survey after a period of high production rate, and reveals
the reservoir behaviour under dynamic conditions. The various changes in slope in
the pressure profile reveal the partial restricted flow in certain layers. Similar
surveys in each new development wells (Figure 8) show the similar profiles and
enable the detailed layered structure of the reservoir to be characterised which is
important for reservoir simulation purposes.

11
Gr%
0 100
Reservoir pressure -
Sw% psig
100 0 4000
θ% 2500 3000 3500
0 50
Top paleocene 8100
Perforations Original
2500 l
Layer 3 a
8200 8300
c
it
r
s v
r
2550 e
8400 8500
Layer 4
t
u
e r
T
m
8600 8700
ht 2600
pe
d
8800
e
2650 Layer 5
s
t
l e
a e
f
c -
it
r
ht
e
Layer 1
pe
v d
Layer 2 pressure
e e
s
u
r gradient b
T u
14 16 18 20 22 24 26 Reservoir
pressure - MPa
Figure 7 RFT Pressure Survey in Development Well of Montrose Field 3.

Reservoir pressure - psig
2450 3000 3200 3400 A6 8000

c 2700 15/08/78 A17 e
it
r
02/11/78 A18 f
-
e
28/03/79
v Original ht
s pressure pe
d
e
e
A8 A11 A15 gradient a
r
A17
u e
t r 8100 8200 s
e T
b
m
2500 2550 u
A18 8300 8400 s

-
ht
8500 8600 a
2600 2650
pe
c
d
it
a r
e
8700 8800 e
s symbol ?Well v
b
number Date
u
22/17-A6 8900 e
s 05/04/77 A8 u
27/01/78 A11 r
l
20/12/77 A15 t
T
a
e
18 20 22 24 26 28
Reservoir pressure - MPa
9000
Figure 8 RFT Pressure Syrveys on a number of Montrose Wells3.
12
6. RESERVOIR TEMPERATURE
The temperature of the earth increases from the surface to centre. The heat flow
out wardsthrough theEarth’s crust generates a geothermal gradient, gc.
Thistemperature variation conforms to both a local and regional geothermal
gradient, resulting from the thermal characteristics ofthe lithology and more
massive phenomenon associated with the thickness of the earth’s crust along
ridges, rifts and plate boundaries.
In most petroleum basins the geothermal gradient is of the order of 1.6˚F/100 ft.
(0.029 K/m) The thermal characteristics of the reservoir rock and overburden give
rise to large thermal capacity and with a large surface area in the porous reservoir
one can assume that flow processes in a reservoir occur at constant reservoir tem
perature. The local geothermal gradient will be influenced by associated
geological features like volcanic intrusions etc. The local geothermal gradient can
be deduced from wellbore temperature surveys . However they have to be made
under stabilised conditions since they can be influenced by transient cooling effects
of circulating and injected fluids.
During drilling the local thermal gradient can be disturbed and by analysis of the
variation of temperature with time using a bottom hole temperature (BHT) gauge
the local undisturbed temperature can be obtained.
Without temperature surveys the temperature at a vertical depth can be estimated

using a surface temperature of 15 oC (60 oF) at a depth D.
T(D) = 288.2 + gcD (K)
Solutions to Exercises
EXERCISE 1
If the average pressure gradient in a region is 0.47 psi/ft, calculate the pore
pressure in a normally pressurised formation at 7400ft. Convert the pressure from
psi to KPa, then express the pressure in MPa. What is the pressure gradient in
KPa/m?
Multiply KPa by 0.145 to get psi.

1 US foot = 0.3048m.
SOLUTION
Pressure in formation = 0.47 * 7400 = 3478 psi
Converting to KPa = 3478 / 0.145 = 23986 Kpa
Converting to MPa = 23986 / 1000 = 23.99 MPa
Pressure gradient = 0.47 psi/ft = (0.47 / 0.145) KPa/ft = 3.2414 KPa/ft =

(3.2414 /0.3048) KPa/m
= 10.63 KPa/M

13
EXERCISE 2
If the pressure in a reservoir at the OWC is 3625 psi, calculate the pressure at the
top if there is a 600ft continuous oil column. If a normal pressure gradient exists
outwith the reservoir, calculate the pressure differential at the top of the reservoir.
Redo the calculations for a similar field, but this time containing gas.
SOLUTION
Typical pressure gradients are (psi/ft):
Water – 0.45
Oil – 0.35
Gas – 0.08
Pressure at seal = 3625 - (600*0.35) = 3415 psi

To calculate the pressure differential across seal, look at fluid gradient differential
from OWC to seal 600ft above…
Differential = (0.45-0.35) * 600 = 60 psi
If the reservoir is gas then the differential becomes…
(0.45 – 0.08) * 600 = 222 psi higher in the reservoir than surrounding area
REFERENCES
1. Dake,L.P. Fundamentals of Reservoir Engineering. Elsevier 1986
2. Bradley,J.S. Abnormal Formation Pressure. The American Association of

Petroleum Geologists Bulletin. Vol 59, No6, June 1975
3. Bishlawi,M and Moore,RL: Montrose Field Reservoir Management. SPE

Europec Conference, London,(EUR166) Oct.1980
14
Reservoir Fluids Composition
CONTENTS
1 INTRODUCTION
2 HYDROCARBONS
2.1 Chemistry of Hydrocarbons
2.2 Alkanes or Paraffinic Hydrocarbons
2.3 Isomerism
2.4 Unsaturated Hydrocarbons
2.5 Napthene Series
2.6 Aromatics
2.7 Asphalts
3 NON-HYDROCARBON COMPOUNDS
4 COMPOSITIONAL DESCRIPTION FOR

RESERVOIR ENGINEERING
4.1 Definitions of Composition in Reservoir
Engineering
5 GENERAL ANALYSIS
5.1 Surface Condition Characterisation
5.2 Refractive Index
5.3 Fluorescence of Oil
LEARNING OBJECTIVES
• Describe briefly the origin, nature and appearance of petroleum fluids
• Be aware that the principal components of petroleum fluids to be

hydrocarbons.
• Draw a diagram illustrating the classification of hydrocarbons and to identify;

paraffin’s (alkanes ), aromatics and cyclic aliphatics ( napthas).
• List the non- hydrocarbon compounds which might be present in small

qualities in reservoir fluids.
• Define the black oil model description of the composition of a reservoir fluid.
• Explain briefly what PNA analysis is and its application.
• Describe briefly the concept of pseudo components in fluid composition

characterization.
• Be aware of general analysis descriptorsfor petroleumfluids e.g.
o
API,refractive index and flourescence.
• Be able to calculate the API gravity given the specific gravity
• Calculate given the prerequisite data proved, probable and possible reserves.
• Describe in general terms reserve estimation.
1 INTRODUCTION
Petroleum deposits vary widely in chemical composition and depending on

location have entirely different physical and chemical properties. The very
complex characteristics are evident from the many products which can be
produced from oil and gas.
What is petroleum? Petroleum is a mixture of naturally occurring hydrocarbons

which may exist in the solid, liquid or gaseous states, depending on the conditions
of temperature and pressure to which it is subjected.1
Petroleum deposits occurring as a gaseous state are termed natural gas, in the
liquid state as petroleum oil or crude oil and in the solid state as tars, asphalts and
waxes.
For a mixture with small moleculesit will be a gas at normal temperature and
pressure (NTP). Mixtures containing larger molecules will be a liquid at NTP and
larger molecules as a solid state, for example, tars and asphalts.
The exact origin of these deposits is not clear but is considered to be from plant,
animal and marine life through thermal and bacterial breakdown.
The composition of crude oil consists mainly of organic compounds, principally

hydrocarbonswith small percentages ofinorganicnon-hydrocarboncompounds.such
as carbon dioxide, sulphur, nitrogen and metal compounds. The hydrocarbons may
include the lightest (C1 methane ) to napthenes and polycyclics with high
molecular weights.
The appearance varies from gases, through very clear liquids, yellow liquids to a
dark, often black, highly viscous material, the variety obviously being a function of
composition. Although the principal elements are carbon (84-87%), and hydrogen
(11-14%), crude oil can vary from a very light brown liquid with a viscosity
similar to water to a very viscous tar like material .
Wateris always present in the pore space of a reservoir,since the original

depositional environment for the rocks was water. This water has subsequently
been displaced by the influx of hydrocarbons but not totally since surface tension
forces acting in the rock pore space cause some of the water to be retained.
Forreservoir engineering purposesthe description ofthe composition is an

important characterisation parameter for the determination of a range of physical
parameters important in various reservoir volumetric and flow calculations. It is
not the concern of the reservoir engineer to determine the composition with respect
to understanding the potential to separate the material to a range of saleable
products. For this reason therefore simplistic characterisation approaches are used.
The two compositional characterisation approaches used are the compositional

model and the black oil model. The basis of the compositional model is a
multicomponent description in terms of hydrocarbons and the black oil model is a
two component description in terms of produced oil, stock tank oil and produced
gas, solution gas. The compositional model is the topic covered in this chapter and
the black oil model is covered in the liquid properties chapter.
2 HYDROCARBONS
2.1 Chemistry of Hydrocarbons

The compositional model uses hydrocarbons as the descriptor since hydrocarbons
represent the largest proportion in petroleum fluids. It is important to review
briefly the chemistry of hydrocarbons.
The hydrocarbon series is represented in figure 1 below
Hydrocarbons
Aliphatic Aromatics
Alkanes Alkenes Alkynes Cyclic Aliphatics

Classification of Hydrocarbon.
(Paraffins) (Napthenes) Figure 1

The hydrocarbons divide into two groupings with respect to the arrangement of the
carbon molecules and the bonds between the carbon molecules. The arrangement
of the molecules are open chain or cyclic and the bonds between the carbon are
saturated (single) bonds or unsaturated or (multiple) bonds.
2.2 Alkanes or Paraffinic Hydrocarbons

The largest series is the alkanes or paraffins which are open chain molecules with
saturated bonds. Carbon has a valance of four and therefore the formula for these
compounds is CnH2n+2. These saturated hydrocarbons include all the paraffins in
which the valence of the carbon atomsissatisfied by single covalent bonds.
Thistype of structure is very stable. Unsaturated hydrocarbons are those where the
valence of some of the carbon atoms is not satisfied with single covalent bonds so
they are connected by two or more bonds which make them less stable and more
prone to chemical change.
The paraffin series begins with methane (CH4), and its basic formula is CnH2n+2.
Pentane to pentadecane are liquids and the chief constituents of uncracked
gasoline. Its higher members are waxy solids. In a given bore hole the wax may
clog the pore space next to the hole as gas expands and cools.
The paraffins are the largest constituent of crude oil and are characterised by their
chemical inertness. Clearly they would not have remained as they are if this were
not so.
2.3 Isomerism
Frommethane topropane there isonlyonewaytoarrange thebranchedchainshowever
above propane there are alternative arrangements and these are called isomers.
Structural formulae do not represent the actual structure of the molecules. Isomers
are substances of the same composition that have different molecular structure and
therefore different properties, for example, normal butane and isobutane.
normal butane CH3CH2CH2CH3 - B.Pt. 31.1˚F
isobutane CH3CH CH3 - B.Pt. 10.9˚F

CH3
Pentane hasthree structures(isomers). Clearly the number of isomersincrease asthe

number of carbon atoms increases. Hexane has 5 isomers and heptane 9.
Table 1 below gives some of the basic physical properties of the more common
hydrocarbons of the paraffin series and Table 2 lists the state of the various pure
components demonstrating that components which might be solid on their own
contribute to liquid states when part of a mixture. Figure 2 gives some structural
formula for three paraffin compounds.
Density
Name Chemical Molecular Boiling Point Critical Gas Liquid Formula Weight (°C) at normal
Temp °C (air = 1) (water = 1) conditions
sp.gr.
Methane CH4 16.04 -161.4 -82.4 0.554 0.415 (-614°) Ethane C2H6 30.07 -89.0 32.3 1.038 0.54
(-88°) Propane C3H8 44.09 -42.1 96.8 1.522 0.585 (-44.5°) n-butane C4H10 58.12 0.55 153.1
2.006 0.601 (0°) Isobutane C4H10 58.12 -11.72 134.0 2.006 0.557 n-pentane C5H12 72.15 36.0
197.2 2.491 0.626 Isopentane C5H12 72.15 27.89 187.8 2.491 0.6197
n-hexane C6H14 86.17 60.30 228.0 2.975 0.6536
Table 1 Physical properties of common hydrocarbons.
Methane
Ethane
Propane
Butane
Pentane
Hexane
Heptane
Octane
Nonane
Decane
No of carbon State (ntp) atoms

1 Gas
2 Gas
3 Gas
4 Gas
5 Liquid
6 Liquid
7 Liquid
8 Liquid
PARAFFINS
9 Liquid
H 10 Liquid
ALKANES or PARAFFIN C5-C17 Liquid
HYDROCARBONS Cn H 2n+2 C18+ Solid
Name
H
Table 2 Alkanes or Paraffin
Hydrocarbons Cn H 2n + 2 HHC
H HH
H
H
H
H
H
H
H
HCH
HHC
C CH CH CH CH
H
HHCC HHH H CH CH CH
saturated hydrocarbons
Methane Iso-butane n-octane Figure 2
Gives some standard formula for
2.4 Unsaturated Hydrocarbons

These are hydrocarbons which have double or triple bonds between carbon atoms.
They have the potential to add more hydrogen or other elements and are therefore
termed unsaturated. There are termed the olefins, and there are two types, alkenes,
for example ethylene, CH2=CH2, which have a carbon-carbon double bond and
alkynes, for example acetylene,CH=CH which have a carbon carbon triple bond.
Both compound types being unsaturated are generally very reactive and hence are
not found in reservoir fluids.
2.5 Napthene Series

Thenapthene series(CnH2n)sometimes calledcycloparaffinsor alicyclichydrocarbons
are identified by having single covalent bonds but the carbon chain is closed and is
saturated. They are very stable and are important constituents of crude oil. Their
chemicalproperties are similartothoseoftheparaffins. Acrudeoilwithahighnapthene
content is referred to as an napthenic based crude oil. An example is cyclohexane
C6H12. Figure 3 gives the structural formula for two napthenic compounds.

HCH
HH
C
HH
NAPHTHENES
H
H C C C
HH HH
C C H C C H
HH
HH HH C H
C C
Methyl H HH
Cyclopentane Cyclohexane
Figure 3 Structural formula for two naphenic compounds.
2.6 Aromatics
The aromatic series(CnH2n-6)is anunsaturatedclosed-ringseries,basedonthebenzene
compound and the compounds are characterised by a strong aromatic odour.
Various aromatic compounds are found in crude oils. The closed ring structure
gives them a greater stability than open compounds where double or triple bonds
occur. Figure 4 gives the structural formula for two aromatic compounds.
AROMATICS
CC CC CC
C
H H
CC HH CC HH
HH C C
CH CH CH
HH H
Benzene
Naphthalene
Figure 4 Structural formula for two aromtic compounds.
Thearomatic-napthenebasedcrudesareusuallyassociatedwithlimestoneanddolomite
reservoirs such as those found in Iran, the Arabian Gulf and Borneo.
Some crude oils used to be described, more from a refining perspective, according
to the relative amount of these non paraffin compounds. Crude oils would be called
paraffinic, napthenic or aromatic. It is not a classification of value in reservoir
engineering.
Physical Properties of some Common Petroleum

Reservoir Fluid Constituents
Component Formula Melting Point Normal Boiling Point Density (g/cm3) (˚C) (˚C) at 1 atm and
15˚C
Paraffins
Methane CH4 -184 -161.5 - Ethane C2H6 -172 -88.3 - Propane C3H8 -189.9 -42.2 -
n-Butane C4H10 -135 -0.6 - Iso-Butane C4H10 -145 -10.2 - n-Pentane C5H12 -131.5
36.2 0.626
n-Hexane C6H14 -94.3 69.0 0.659 Iso-octane C8H18 -107.4 99.3 0.692 n-Decane
C10H22 030 174.0 0.730 Naphthenes
Cyclopentane C5H10 -93.3 49.5 0.745 Methyl cyclo-pentane C6H12 -142.4 71.8 0.754
Cyclohexane C6H12 6.5 81.4 0.779 Aromatics
Benzene C6H6 5.51 80.1 0.885 Toluene C7H8 -95 110.6 0.867 Xylene C8H10 -29 144.4
0.880 Naphthalene C10H8 80.2 217.9 0.971
Table 3 Physical properties of some common petroleum reservoir fluid constituents
2.7 Asphalts
Asphalt is not a series by itself. Asphalts are highly viscous to semi-solid, brown
black hydrocarbons of high molecular weight usually containing a lot of sulphur
and nitrogen, which are undesirable components, and oxygen. Asphalts are closely
related to the napthene series and because of their high nitrogen and oxygen
content they may be considered juvenile oil, not fully developed.
3 NON-HYDROCARBON COMPOUNDS
Although smallin volume, generally lessthan 1%, non-hydrocarbon compounds

have a significant influence on the nature of the produced fluids with respect to
processing and the quality of the products.
The more common non-hydrocarbon constituents which may occur

are: sulphur, oxygen, nitrogen compounds, carbon dioxide and water.
Sulphur and its associated compounds represent 0.04% - 5% by weight. These

corrosive compounds include sulphur, hydrogen sulphide (H2S ),which is very
toxic, and mercaptans of low molecular weight ( these are produced during
distillation and require special metals to avoid corrosion). Non-corrosive sulphur
materials include sulphides. Sulphur compounds have a bad smell and both the
corrosive and non corrosive forms are undesirable. On combustion these products
produce S02 and S03 which are undesirable from an environmental perspective.
Oxygen compounds, up to 0.5% wt., are present in some crudes and decompose to
form napthenic acids on distillation, which may be very corrosive.
Nitrogen content is generally lessthan 0.1% wt., but can be as much as 2%.
Nitrogen compounds are complex . Gaseous nitrogen reduces the thermal quality
of natural gas and needs to be blended with high quality natural gas if present at
the higher levels.
Carbon Dioxide is a very common constituent of reservoir fluids, especially in

gases and gas condensates. Like oxygen it is a source of corrosion. It reacts with
water to form carbonic acid and iron to form iron carbonate. Carbon dioxide like
methane has a significant impact on the physical properties of the reservoir fluids.
Other compounds. Metals may be found in crude oils at low concentration and are
of little significance. Metals such as copper, iron, nickel, vanadium and zinc may
be present. Produced natural gas may contain helium, hydrogen and mercury.
Inorganic compounds The non-oil produced fluids like water will clearly contain
compounds arising from the minerals present in the rock, their concentration will
therefore vary according to the reservoir. Their composition however can have a
very significant effect on the reservoir behaviour with respect to their compatibility
with injected fluids. The precipitation of salts, scale, is a serious issue in reservoir
management.
Many of these salts need to be removed on refining as some generate HC1 when
heated with water.
4. COMPOSITIONAL DESCRIPTION FOR RESERVOIR ENGI

NEERING
4.1 Definitions of Composition in Reservoir Engineering In petroleum

engineering, and specifically in reservoir engineering, the main issue is one of the
physical behaviour and characteristics of the petroleum fluids. The composition of
the fluid clearly has a significant impact on the behaviour and properties. In
petroleum engineering therefore the description of the composition is a key to
determine the physical properties and behaviour.
For the oil refiner or chemical manufacturer the composition of the fluid is the key
to determine what chemical products can be extracted or processed from the
material. The petroleumengineeris not concerned with the fact that the oilmight
contain, albeit in small concentrations, hundreds of different components. The
petroleum engineer wants as simple a description as possible which still enables
the determination of the physicalproperties andbehaviourunderdifferenttemperature
andpressure conditions. Twomodels are used in thisindustry to describe the
composition for physical property prediction purposes, the black-oil model and the
compositional model.
Theblack-oil model isa2componentdescriptionofthefluidwherethetwocomponents

are, the fluids produced at surface, stock tank oil and solution gas. Associated with
this model are black-oil parameters like solution gas-oil ratio and the oil formation
volume factor. These parameters are discussed in the chapter on liquid properties.
The compositional model is a compositional description based on the paraffin

series CnH2n+2. The fluid is described with individual compositions of normal
paraffins up to a limiting C number. Historically C6, more common now to go up to
C9, or even higher. Components greater than the limiting C number are lumped
together and defined as a C+ component.
Isomers, normal and iso are usually identified up to pentane. Non paraffinic
compounds are assigned to the next higher paraffin according to its volatility. The
material representing all compounds above the limiting carbon number are called
the C+ fraction , so C7+ for a limiting value of C6 and C10+ for a limiting value of C9.
The physical properties of paraffins up to the limiting C number are well known
and documented. The C+ component is however unique to the fluid and therefore
two properties are used to characterise it, apparent molecular weight and specific
gravity.
The behaviour of some fluids are complex and the paraffin based description may
have difficulty in predicting properties under certain conditions. Consideration may
be required to also identify napthenic and aromatic compounds, (PNA analysis),
which could be contributing to complex behaviour. This is particularly the case for
gas condensates existing at high pressures and high temperatures.
Figure 4 illustratesthe compositional model and its application asreservoir fluids

are produced to surface. Although the individual components contribute to a single
liquid reservoir phase for an oil, when the fluids are produced to surface they
produce a gas phase,solution gas, and a liquid phase,stock tank oil. The distribution
characteristics of the individual components is complex and not just a function of
temperature and pressure. For reservoir fluidsthe composition is also an influence
on the distribution. This makes it a difficult task to predict this distribution
perspective since reservoir fluid compositions are unique. This topic is further dealt
with in the chapter on vapour liquid equilibrium. Improved methods of chemical
analysis make it possible to describe the oil up to a C value of C29. Although such
definitions provide a very accurate description, the associated computer effort in
using such a comprehensive description does lead to the use of pseudo
components. Pseudo components are obtained by grouping the various C number
compositions, thereby reducing the description to 4 or 5 "pseudo components". A
number of methods exist to group the various C values and other components.
10
C1 C2 C3 C4 C5 C6 C7+
The relative amounts of C1 - C7+ are a

function of :
Temperature, Pressure, Composition
(particularly at high temperature) Figure 5
Compositional Model
Reservoir Fluid Gas at Surface

Conditions
Oil at Surface Conditions
5. GENERAL ANALYSIS
5.1 Surface condition characterisation

Reservoirs as well as having unique compositions also exist at specific pressures
and temperatures. It is important therefore to provide a common basis for
describing the quantities of fluids in the reservoir and throughout the production
process.
The basis chosen is the fluids at surface conditions, the surface conditions being
14.7 psia or 101.3 kPa and 60oF or 298K. These conditions are called standard
conditions. For gas therefore this yields standard cubic feet SCF or standard cubic
meters SCM. It is useful to consider these expression not as volumes but as mass,
the volume of which will vary according to density. For liquids we express surface
conditions as stock tank volumes either stock tank barrels STB or stock tank cubic
meters STM3. The relative amount of gas to oil is expressed by the gas-oil ratio
GOR SCF/STB.
Since there are so many types of oil, each with a wide range of specific gravity, an
arbitrary non-linear relationship was developed by the American Petroleum
Institute (API) to classify crude oils by weight on a linear-scaled hydrometer. The
observed readings are always corrected for temperature to 60oF, by using a
prepared table of standard values.

11
141.5 -131.5 Sp.Gr.at 60ºF

Degrees API = (1)
Sp.Gr = specific gravity relative to water ar 60oF.
The API gravity of water is 10º. A light crude oil would have an API gravity of
40º, while a heavy crude would have an API gravity of less than 20º. In the field,
the API gravity is readily measured using a calibrated hydrometer.
There are no definitions for categorising reservoir fluids, but the following table 5
indicates typical GOR, API and gas and oil gravities for the five main types. The
compositions show that the dry gases contain mostly paraffins, with the fraction of
longer chain components increasing as the GOR and API gravity of the fluids
decrease.
In chapter 4 we give a classification for the variousreservoir fluid typesin the

context of phase behaviour.
Type Dry Gas WetGas Gas Condensate Volatile Oil Black Oil
Appearance Colourless Colourless Colourless Brown liquid Black at surface Gas Gas + +
significant Some Viscous clear liquid clear/straw Red/Green Liquid
Colour Liquid
Initial GOR No Liquids >15000 3000-15000 2500-3000 100-2500 (scf/stb)
ºAPI - 60-70 50-70 40-50 <40
Gas S.G. 0.60-0.65 0.65-0.85 0.65-0.85 0.65-0.85 0.65-0.85 (air=1)
Composition (mol %)
C1 96.3 88.7 72.7 66.7 52.6 C2 3.0 6.0 10.0 9.0 5.0 C3 0.4 3.0 6.0 6.0 3.5 C4 0.17 1.3 2.5
3.3 1.8 C5 0.04 0.6 1.8 2.0 0.8 C6 0.02 0.2 2.0 2.0 0.9 C7+ 0.0 0.2 5.0 11.0 27.9
Table 5 Typical values for different reservoir fluids
5.2 Refractive index

The refractive index provides another indicator of the density of produced oils. The
general refractive index range for oil is 1.39 to 1.49. The heavier the crude, the
higher the refractive index and the lower theAPI gravity. This can be measured
with a refractometer or by the same methods used in optical mineralogy with
reference gravity oils.
12
5.3 Fluorescence of oil

Thefluorescence of oilwhich ismeasured by its colour under ultravioletlight
provides another indicator, and is often used by those analysing the cuttings as the
well is drilled. The rock sample should be placed as quickly as possible under
ultraviolet light since fluorescence of oil subsides with evaporation and the activity
of ‘live’ oil decreases. If whole core is being examined then the whole core should
be passed under UV light to determine the fluorescent colour and the pattern of
oil-in-place in the cored interval.
When possible, picturesshould be taken of the core showing the fluorescence.

These are very useful when accompanying reportsto the head office which may be
hundreds if not a few thousand miles away.
The degree of fluorescence is indicated below for different compositions as
reflected in the API gravity.
2˚ - 10˚ API non-fluorescent to dull brown 10˚ - 18˚ API

yellow brown to gold 18˚ - 45˚ API gold to pale yellow
45˚ - above API blue-white to white
It should be pointed out that most oils increase in API gravity with depth in a
given lithologic column with the reason being that younger juvenile oils, heavier
with a lowerAPI gravity, have not yet been transformed fromthe initialformation
conditions to higher petroleum members. Two well-known exceptions to this
pattern are found in the Burgan sands of Kuwait and the shallow sands of the Bibi
Eibat field in the USSR where the high-gravity members are found higher up in the
stratified column than the low-gravity members.
13
EXERCISE 1
Calculate the Specific Gravity (SG) of a 38o API oil. What is its density in
lbs/cu.ft? (62.32 lbs/cu.ft equals an SG of 1.0 and 43.28 API)
Now convert an oil with an SG of 0.744 to Degrees API.
EXERCISE 2
A reservoir oil is quoted as having a Gas Oil Ratio (GOR) of 604 scf/bbl.
Convert this to Standard Cubic Meters (SCM)gas per Stock Tank Cubic Meters
(SM3)
1 Foot = 0.3048m
1 barrel = 5.615 cu ft.
1 barrel = 0.159 M3
EXERCISE 3
A reservoir is said to contain an ‘initial GOR’ of 11,000scf/bbl. What type of

reservoir is described, and what API oil could be typically expected from such
a field?
EXERCISE 4
Define the ‘Black Oil Model’ and the ‘Compositional Model’
14
Solutions to Exercises
EXERCISE 1
Calculate the Specific Gravity (SG) of a 38o API oil. What is its density in lbs/
cu.ft?
(62.32 lbs/cu.ft equals an SG of 1.0 and 43.28 API)
Now convert an oil with an SG of 0.744 to Degrees API.
SOLUTION
Convert using the equation 1:
API = (141.5 / SG) -131.5
38 = (141.5 / SG) -131.5
Sg = 141.5 / (131.5 + 38)
SG = 0.835
Similarly, to convert SG into API:
API = (141.5 / 0.744) -131.5

API = 58.7o
EXERCISE 2
A reservoir oil is quoted as having a Gas Oil Ratio (GOR) of 604 scf/bbl. Convert
this to Standard Cubic Meters (SCM)gas per Stock Tank Cubic Meters (SM3)
1 Foot = 0.3048m
1 barrel = 5.615 cu ft.
1 barrel = 0.159 M3
SOLUTION
604 scf/bbl = 604 * 0.30483 STM/bbl = 17.09 SCM/bbl= 107.48 SCM/STM3
EXERCISE 3
Areservoirissaid to contain an ‘initial GOR’of 11,000scf/bbl.What type ofreservoir

is described, and what API oil could be typically expected from such a field?
SOLUTION
AreservoirwithaGORof11,000scf/bblwouldbe typically termed a ‘GasCondensate

Reservoir’. The API gravity would probably be in the low 50’s.

15
EXERCISE 4
Define the ‘Black Oil Model’ and the ‘Compositional Model’
SOLUTION
Black Oil Model.

Two component description of the reservoir fluid consisting of stock tank oil and
solution gas. Compositional changes with varying pressure and temperature are
ignored. Terms such as ‘Gas Oil Ratio’ and ‘Formation Volume Factor’ are black
oil model terms.
Compositional Model.
The compositional model is based on the paraffin series CnH2n+2. To keep the
number of components in the model manageable, long chain members are grouped
together and given an average property. These compounds are termed collectively
as the ‘C+ fraction’. Typically this covers the hydrocarbons above Heptane and
therefore is called the C7+ fraction, which is characterised using the terms
Apparent Molecular Weight and Specific Gravity.
REFERENCES.
1. Amyx, J.W., Bass, D.M., and Whiting, R.L."Petroleum Reservoir
Engineering", McGraw-Hill Book Company, New York 1960
16
Phase Behaviour of Hydrocarbon Systems
CONTENTS
1 DEFINITIONS
2 PHASE BEHAVIOUR OF PURE SUBSTANCES

2.1 The Phase Diagram
3 TWO COMPONENT SYSTEMS

3.1 Pressure - Temperature Diagrams
3.2 Pressure Volume Diagram
4 MULTI-COMPONENT HYDROCARBON
4.1 Pressure Volume Diagram
4.2 Pressure Temperature Diagram
4.3 Critical Point
4.4 Retrograde Condensation
5 MULTI-COMPONENT HYDROCARBON
5.1 Oil Systems (Black Oils and Volatile Oils)
5.2 Retrograde Condensate Gas
5.3 Wet Gas
5.4 Dry Gas
6 COMPARISON OF THE PHASE DIAGRAMS OF
RESERVOIR FLUIDS
7 RESERVOIRS WITH A GAS CAP
8 CRITICAL POINT DRYING
LEARNING OBJECTIVES
General
• Define; system, components, phases, equilibrium, intensive and extensive
properties.
Pure Components
• Sketch a pressure-temperature (PT) diagram for a pure component and
illustrate on it; the vapour-pressure line, critical point, triple point,
sublimation-pressure line, the melting point line, the liquid, gas and solid
phase zones.
• Define the critical pressure and critical temperature for a pure component. •
Describe briefly with the aid of a PT diagram the behavior of a pure component
system below( left|) and above ( right) of the critical point.
• Sketch the pressure- volume (PV) diagram for a pure component illustrating
the behavior above the bubble point, between the bubble and dewpoint and
below the dewpoint.
• Sketch a series of PV lines for a pure component with a temperature below, at
and above the critical temperature.
• Sketch the three dimensional phase diagram for pure component systems.
Two Components
• Plot a PV diagram for a 2 component system and identify key parameters. •
Plot a PV diagram for a 2 component system and identify key parameters and the
relationship to the vapour pressure lines for the two pure components. • Sketch
the critical point loci for a series of binary mixtures including methane and
indicate how a mixture a mixture of methane and another component can exist as
2 phases at pressures much greater than the 2 phase limit for the two contributing
components.
• DrawaPTdiagramfor a two componentsystem,to illustrate the cricondentherm,
cricondenbar and the region of retrograde condensation.
• Define the terms cricondentherm and cricindenbar.
• Explain briefly what retrograde condensation is.
Multicomponent Systems
• Sketch a PT and PV diagramsto illustrate the behaviour at constant
temperature for a fluid in a PVT cell. Identify key features.
• Draw a PT diagram for a heavy oil, volatile oil, retrograde condensate gas, wet
gas and dry gas. Illustrate and explain the behaviour of depletion from the
undersaturated condition to the condition within the phase diagram.
• Describe briefly with the aid of a sketch, the reasons for and the process of gas
cycling, for retrograde gas condensate reservoirs.
• Plot a PT diagram for a reservoir with a gas cap to illustrate the gas at dew
point and oil at bubble point.
Miscellaneous
• With the aid of sketch explain the process of critical point drying.

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1 INTRODUCTION TO RESERVOIR ENGINEERING 2

RESERVOIR PRESSURES AND TEMPERATURES 3

4 PHASE BEHAVIOUR OF HYDROCARBON SYSTEMS 5

6 PROPERTIES OF RESERVOIR LIQUIDS

12 VAPOUR LIQUID EQILIBRIA

1.Fundamentals of Reservoir Engineering. L.P.Dake. Elsevier. 1978

2.The Practise of Reservoir Engineering. L.P.Dake. Elsevier. 1994.

3.Principles of Petroleum Reservoir Engineering. G.H.Chierici. Springer-Verlag 1994.

5.Applied Reservoir Engineering B.C.Craft & M.F.Hawkins. Prentice Hall. 1959.

6.The Properties of Petroleum Fluids 2nd Ed W.D.McCain Pennwell Books . 1990

8.Petroleum Reservoir Engineering.

9.PVT and Phase Behaviour of Petroleum Reservoirs

5 - Core material for examination purposes

OM- Material covered in another module not for examination purposes in

Equations – It is not necessary to memorise complicated equations. Equations

Insitute of Petroleum Engineering, Heriot-Watt University 5

Introduction To Reservoir Engineering

6 OTHER APPRAISAL ROLES

9. THE UNIQUENESS OF THE

RESERVOIR 10. CONCLUSIONS

• Define the SPE definitions of reserves; proven reserves, unproved reserves;

• Present a simple equation for volumes of oil and gas in-place.

• Describe in general terms the evolution of reserves through successive

• Describe briefly the various elements of development planning: reservoir

• Illustrate with a sketch the impact of different technical parameters on the

• Describe in general terms in the context of production operations, optimization

• Draw a sketch showing the various phases of production from build up to

• Draw a sketch illustrating the various recovery scenarios from primary to

Introduction To Reservoir Engineering

Dake2 has usefully specified the distinct technical responsibilities of reservoir

• Contributing, with the geologists and petrophysicists , to the estimation of

• Determining the fraction of discovered hydrocarbons that can be recovered. •

Attaching a time scale to the recovery.

Insitute of Petroleum Engineering, Heriot-Watt University

(i) Reserves Estimation

1.1 Reserves Estimation

In 1987 the Society of Petroleum Engineers in collaboration with the World

1.2 Development Planning

1.3 Production Operations Optimisation

2 RESERVOIR ENGINEERING TECHNIQUES

The Society of Petroleum Engineers SPE and World Petroleum Congress

Insitute of Petroleum Engineering, Heriot-Watt University

Estimation of reserves is carried out under conditions of uncertainty. The method of

Reserves estimates will generally be revised as additional geologic or engineering

Reserves may be attributed to either natural energy or improved recovery methods.

3.2 Proven Reserves

Proved reserves can be categorised as developed or undeveloped.

If deterministic methods are used, the term reasonable certainty isintended to

Establishment of current economic conditions should include relevant historical

Introduction To Reservoir Engineering

3.2.1 Exercises - Reserve Definitions

Turn to page 9 for answers

Insitute of Petroleum Engineering, Heriot-Watt University

Tick the correct answers.

Proved reserves (MM stb):

Turn to page 9 for answers

What is wrong with the following definitions?

1. Reserves are those quantities of petroleum which are anticipated to be recovered

1. We have a structure in our licence area which we intend to explore. We

Areservoir has been discovered by drilling a successful exploration well, and

STOIIP = 2000MM stb Recovery factor = 35%

What are the reserves?

Introduction To Reservoir Engineering