Manual: Selection of Artificial Lift Mode
Manual: Selection of Artificial Lift Mode
Selection of Artificial
Lift Mode
Institute of Oil & Gas Production Technology
Selection of Artificial Lift Mode
Contents
1.0 Introduction 2
1.1 Procedure 2
1.2 Applicability 2
1.3 Historical 2
2.0 Input Information 5
2.1 Production Data 5
2.2 Well History 5
2.3 Reservoir Data 6
2.4 Fluid Characteristics 6
2.5 Latest Trending Data 6
2.6 Information on Surface Facilities 6
3.0 Elimination Process 8
3.1 Preliminary Screening Criteria 8
3.2 Well depth and Flow criteria 9
4.0 Systems Analysis 11
5.0 Techno-economic Analysis 12
5.1 Elements of Cost 12
5.2 ONGC policy for project evaluation 12
5.3 Financial model 13
6.0 Comprehensive Decision & Follow-up Analysis 14
7.0 Multi-Criteria Decision Making (MCDM) Models 15
7.1 Types of MCDM models 15
7.2 Comparison of results from different MCDM models 19
8.0 References 19
1.0 Introduction
Applying artificial lift technologies for production incurs additional cost which is
prevalently absent when the well is self flowing. The technology adopted necessarily
needs to be suitable, efficient as well as worthy of it’s value in the long run [J.D. Clegg
et.al. (1993)].
Selection of the appropriate mode of artificial lift [ James F. Lea et.al.(1999)] is
based on practical applicative rules and are mostly governed by a gamut of non-
technical factors – such as geographical location, environmental issues etc. However,
techno-economic considerations are applied to evaluate and select the most suitable
mode of artificial lift for a well in particular, a field in total or an asset in in it’s entirety
[Ali Al-Lamki et.al. (2007)].
1.1 Procedure :
Selection of mode of artificial lift is a 5-step procedure :
STEP-1: INPUT INFORMATION : This is basically data collection and needs to
be as accurate as possible.
STEP-2 :ELIMINATION PROCESS : This is a gateway procedure and specific
criteria are placed to reject the non-suitable mode.
STEP-3 :SYSTEMS ANALYSIS : This is the design step. Here Softwares are
utilized to practically design the lift, carry out nodal analysis etc.
STEP-4 :TECHNO-ECONOMIC ANALYSIS : Cost considerations are drawn up
here and commercial variant play a role.
STEP-5 :COMPREHENSIVE DECISION & FOLLOW-UP ANALYSIS : This is the final
decision making step, in which, other decisive components are introduced.
1.2 Applicability :
The methodology is applicable in any of the three stages of development :
Well-wise analysis : This predicts the most suitable mode of artificial lift for a
single well based on it’s performance.
Field modeling : Here the individual wells are studied. Nodal analysis is then
carried out to apply the factor introduced by the interconnections.
Asset-based feasibility : This is production profile based study required to
recommend long term requirement of lift – the mode(s) applicable, resources
required and techno-economic feasibility of the scheme.
1.3 Historical :
The selection of the most appropriate method of artificial lift has been the subject of
interest since long and, as on date, there are traditional methods that are available,
which have been recounted chronologically as follows :
1988 : High rate Artificial Lift Systems : The introduction of water injection and
water flood concepts for enhancing oil production led to the necessity for
high rate production systems, especially with artificial lift [J.D. Clegg
(1988)]. Technical evaluation of rod pumping, gas lift. ESPs, Hydraulic
pumping & Hydraulic turbine driven pumps were analyzed, with
comprehensive results as under :
1. Selection based on income, operating cost, and capital costs.
2. Rod pumping is good for relatively shallow wells.
3. Gas lift optimization required for high-rate operation.
4. ESP's require relatively large casing for high-rate pumping.
5. Hydraulic pumping has application for special high-rate deep lift.
6. Hydraulic turbine-driven downhole pumps have potential in high-rate
and high-cost applications.
1996 : Decision Tree for Selection of Mode of Artificial Lift : The first proposed
decision tree was proposed by Lloyd R. Heinze et.al.(1996). A step-wise
decision making process was conceptualized :
o Step 1 : Reduce possibilities based on technical merit.
o Step 2 : Secondary technical limitations such as Temperature, Personnel
training, Power requirements, Surface constraints, Downhole
limitations viz. sand, scale etc.
o Step 3 : Economic analysis – calculation of present day value over life
time investment
Step 4 : Comprehensive decision based on data from above three steps
2000 : Review analysis of Artificial lift systems in operating field [M. A. Naguib
et.al. (2000)] : The aspect of review of the mode of artificial lift in
producing reservoirs with artificial lift mechanisms in place was brought
out, evincing economic interests.
2006 : Artificial lift selection for CBM dewatering [L. Bassett (2006)] : Design of
Artificial lift systems for CBM wells is required to be done well in advance
considering the NPSH, solids handling and economics requirements.
2007 : Artificial lift selection for Heavy Oil DST [Ali-Al Lamki et.al.(2007)] : Heavy
oil presents a different picture compared to non-heavy oils, in the respect
that gas lift is invariably not considered. Amongst all the modes, in case
high pressure gas is available, the best option is to in for gas lift, except
where the oil is heavy. Petroleum Development Oman have worked out a
strategy for evaluation of a DST device for heavy oil wells and Jet pump
with coiled tubing was realized to be the best alternative.
2009 : Decision matrix for liquid loading in gas wells for cost/benefit analyses of
liftingoptions : The program based systems with Decision matrix [Han-
Young Park et.al.(2009)] was developed for gas wells where cost benefit
analysis was included as a deciksion item along with technical analysis.
2010 : Artificial lift selection using sensitivity and risk analysis : Applied to
Vankor field, M.M. Khasanov and co-workers (2010), have evolved a
program based system for sensitivity analysis of various parameters and
risk analysis by the Monte-Carlo method. Extreme sensitivity to well depth
and GOR was indicated.
2013 : Selection criteria and new technologies on the artificial lift systems for
heavy and extra heavy oil wells : The criteria developed and applied to
Colombian fields [J.J. Cuesta et.al. (2013)] brought out additional features
over and above standard Artificial lift modes.
2.1 Production Data : Well production data is the first important source of information. It
tells us how the well has behaved over a period of time since it was brought into
production from a particular zone. For a flowing well, latest data is sought and
historical production is viewed later. For a sick well, last producing data is sought with
the information on why the well ceased to flow. Data accessed is usually :
• Liquid rate
• Oil rate
• Water cut
• Gas rate
• GOR
• FTHP
• Well head temperature
• Well Deviation
• Production Casing – size & shoe depth
• Tubing – size & shoe depth
• Packers – type & depth
• Other downhole features
(b) Workover details : This gives record of problems in the well & corrective actions
taken.
(c) Stimulation details : Well activation data can be found here.
(d) Well diagram : Pictorial view of the well.
2.3 Reservoir Data : The reservoir data concerning production engineers are :
Sand details – pay zone
PVT data :
Oil API gravity (at reservoir conditions)
Oil viscosity (test data at different temperatures)
Oil FVF at different temperatures & pressure
Gas gravity
Impurities in gas – CO2, H2S, N2
Solution GOR (at different temperatures & pressures)
Water salinity
Reservoir pressure
Reservoir temperature
2.4 Fluid Characteristics : It is extremely necessary to know the nature of the well fluid for
which the lab analysis reports as under are relied upon :
Oil API gravity (stock tank)
Oil viscosity (test data at different temperatures)
WAT (Wax Appearance Temperature)
Pour Point
SARA (Saturates, Aromatics, Resins & Asphaltenes) analysis
2.5 Latest Trending Data :Knowing the production trending pattern is absolutely
necessary and these are available in the form of :
Flowing gradient survey
Bottom hole pressure surveys
Dynagraphs(for SRPs)
3.1 Preliminary Screening Criteria : The major attributes of each of the modes of artificial
lift are tabulated below at Table-I.
Operating
100 – 2000- 1000- 5000- 5000- 8000-
Depth (TVD)
15000 4500 10000 10000 10000 19000
(ft)
Max.Optg
Depth (TVD) 16000 6000 15000 15000 15000 19000
(ft)
Operating 5– 5– 100- 50 – 100 - 1–
flow (BFPD) 1500 2200 30000 500 10000 5
Maximum
Operating 6000 4500 40000 >15000 30000 200
flow (BFPD)
Operating
100- 75- 100- 100- Max Max
Temperature
350 150 275 250 120 120
(˚F)
Maximum.
Optg.Temp.
(˚F) (with 550 250 400 500 400 400
special
modification)
Maximum
< 15 deg/ < 15 deg/ <24deg/
Wellbore 100 ft 100 ft
0-90 100 ft
0-70 0 -80
Deviation
API Gravity / GLR>300
Fluid > 8˚ API < 35 º API > 10 º API > 15 º API > 8 º API SCF/bbl/
condition 1000 ft
System
45-60% 40-70% 35-60% 10-30% 10-30% N/A
efficiency
3.2 Well depth and Flow Criteria : The bar charts given in Fig.2 indicate the well depths
and flows possible from the different modes of artificial lift :
Fig. 2 : Well depth and Flow criteria for artificial lift mode selection
As flow is directly related to well depth, the analysis is further detailed out using the
following graphs – one for High volumes featuring ESP, Gas Lift and Hydraulic Jet and
another for Low volumes, featuring PCP, SRP, Hydraulic reciprocating pumps & Plunger
lift.
Form the above, two to three modes of artificial lift are found invariably suitable,
except under very harsh conditions, where the criteria limit the selection to one.
5.2 ONGC policy for project evaluation : The authority for project evaluation in ONGC is
Project Appraisal Section (PAS), Scope Complex, New Delhi. Guidelines are issued by
PAS from time to time, which include the following (values given are as at present)
Escalation rate for CAPEX @ 6% per year
Escalation rate for OPEX @ 8% per year
Hurdle rates for crude oil (for ONGC project) : Base : $ 70/ bbl
Gas rates to be computed from Gas NCV @ $8.5/ MMBtu
Discounting factor for cash flows = 14%
WDV method of CAPEX depreciation : 20% in first year & 15% yearly therafter
Corporate Tax rate : 33.22 %
For revenue calculations, PAS guidelines provide the following mechanism :
4% VAT deduction on bare price : VAT = 4 x Bare price/ 104
Post well head expenses to be retained : Rs.1251/MT
Wellhead price = Bare price – VAT – Post wellhead expenses
Royalty @ 20% on wellhead price : Royalty – 20 x Wellhead price/120
OIDB cess @ Rs. 2500/MT – to be deducted
NCCD @ Rs. 50/MT – to be deducted
Educational cess @ 3% of OIDB cess + NCCD – to be deducted
Further to the above, the policy requires treatment of CAPEX, OPEX and Revenue as
under :
5.3 Financial Model : The Financial model is then constructed on an Excel worksheet with
the methodology as provided by PAS. The financial model is constructed over a life
time cycle of the project – derived from the Production profile. Phasing of CAPEX is
done based on Lead-time analysis of equipment to be procured. Similarly, OPEX rivers
are built-up on service requirements generated from field for operation and
maintenance of the project equipment over the life cycle and include utilities and
extraneous/ outsourced services. The Financial model then constructed is as under :
TOTAL REVENUE
ACTUAL CAPEX
DEPREC-ITION
GAS REVENUE
ACTUAL OPEX
DEPRECIATED
OIL REVENUE
ESCALATED
TAX @
CAPEX
CAPEX
YEAR
T1 = 0.3322 x TR1
TR1 = R1-O1-DC1
CF1 = R1-C1-O1
R1 = GR1+OR1
DC1= C1-D1
PV1 = CF1/
D1=0.2C1
(1.14^1)
O1 = X
C1=A
OR1
GR1
1 A X
T1 = 0.3322 x TR2
DC2 = DC1+C2-D2
TR2 = R2-O2-DC2
CF2 = R2-C2-O2
R2 = GR2+OR2
O2 = 1.08 x Y
D2=0.2C2+
PV2 = CF2/
C2 = 1.06B
(0.15DC1)
(1.14^2)
OR2
GR2
2 B Y
O3 = 1.08 x 1.08 x Z
T1 = 0.3322 x TR3
C3 = 1.06X 1,06XC
DC3 = DC2+C3-D3
TR3 = R3-O3-DC3
CF3 = R3-C3-O3
R3 = GR3+OR3
D3=0.2C3+
PV3 = CF3/
(0.15DC2)
(1.14^3)
OR3
GR3
3 C Z
x and so on ,,,,,,,,,,,,,,,,,,,,,
Local Factors :
Operation in urban areas – limited access
Theft of lube oil from SRPs
Cable damages – due to excavations
Deterioration/ loss of parts of Artificial lift devices during prolonged storage
Statutory Factors :
• Use of copper cables in open areas – DGMs requirement – theft hazard
• Venting of annulus gas into atmosphere – environmental issues
Follow-up analysis a pre-requisite for any design for it’s validation, after
implementation in field. Input data from previous follow-ups is also included in
comprehensive decision making.
7.1 Types of MCDM models : MCDM refers to making decisions in the presence of
multiple, usually conflicting criteria. The models of MCDM can be broadly classified
into two categories:
Multiple Attribute Decision Making (MADM) models have generally discrete
Multiple Attribute Decision Making (MADM) are generally discrete, with a limited
number of predetermined alternatives. Different models developed are :
SEDLA software
based model VIKOR TOPSIS
ELECTRE
(VIsekriterijumsko model
(Elimination
KOmpromisno
Et Choix
WPM SAW Rangiranje),
Traduisant
(weighted (simple compromise
He realite)
product additive ranking model
model
model) weighting)
model
SAW (simple additive weighting) model : This model is also called as Weighted
Sum Method [M. Alemi et.al., (2013)] and is the simplest and still the widest
used MADM method. The main procedure of SAW model for the selection of the
best alternative from among those available has Lift is as follows :
At first, it is required to allocate suitable quantities scaled from 0 through 10
for the alternative relative to the criteria qualities, (higher each of their
qualities, more its value out of 10), the number of the alternatives and the
number of the criteria have been considered as the number of matrix rows (i)
and matrix columns (j) in the alternatives relative to the criteria quantities
matrix (decision matrix) respectively.
The relative scores of different criteria - relative to Production, Reservoir and
Well constraints as well as Produced fluid properties and Surface
infrastructure constraints are based on a data bank generated by
Schlumberger. The value of 1 (good to excellent) has been considered as 7
out of 10, the value of 2 (fair to good) has been considered as 5 out of 10 and
the value of 3 (not recommended and poor) has been considered as 3 out of
10.
Then, the linearly normalizing of the resulted alternatives relative to the
criteria quantities matrix is done.
Next, the criteria quantities is weighted by the Entropy method.
Finally, multiplying the normalized matrix by the resulted values, the highest
value in the final resulted in resulted criteria weights matrix and sorting the
final matrix shows the best alternative for selection.
TOPSIS model :This model was developed by Hwang and Yoon (1981). TOPSIS
stands for Technique of Order Preference by Similarity to Ideal Solution. This
method considers three types of attributes or criteria :
Qualitative benefit attributes/criteria
Quantitative benefit attributes
Cost attributes or criteria
The model is based on the concept that the chosen alternative should have
the shortest Euclidean distance from the ideal solution and the farthest from
the negative ideal solution. Steps involved are :
Step 1: Construct normalized decision matrix. This step transforms
various attribute dimensions into non-dimensional attributes, which
allows comparisons across criteria. Normalize scores or data as follows:
rij = xij/ (Σx2ij) for i = 1, …, m; j = 1, …, n
Step 2: Construct the weighted normalized decision matrix. Assume we
have a set of weights for each criteria wj for j = 1,…n. Multiply each
column of the normalized decision matrix by its associated weight. An
element of the new matrix is:
vij = wj rij
Step 3: Determine the ideal and negative ideal solutions.
Ideal solution.
A* = { v1* , …, vn*}, where vj* ={ max (vij) if j ∈ J ; min (vij) if j ∈ J' }
Negative ideal solution.
A' = { v1' , …, vn' }, where v' = { min (vij) if j ∈ J ; max (vij) if j ∈ J' }
Step 4: Calculate the separation measures for each alternative.
The separation from the ideal alternative is:
Si * = [ Σ (vj*– vij)2 ] ½ i = 1, …, m
7.2 Comparison of results from different MCDM models : The TOPSIS model thus gives a
solution that is not only closest to the hypothetically best, that is also the farthest
from the hypothetically worst alternative. In working, it is similar to ELECTRE model.
Fig.8 presents the analysis done by M/s. Schlumberger using different models. Of all
the three used, TOPSIS model was found to be most relevant.
8.0 References :
Ali Al-Lamki, Said Al-Hajri, Masoud Al-Salmi, And Murshid Al-Riyami (2007) –
“Artificial-Lift Selection & Design For Down-Hole Sampling and Heavy Oil Multi-
Zone Testing”, - Middle East Artificial Lift Forum, 19 - 20 February 2007, Muscat,
URL : www.mealf.com, 11 pp.
D.A. Espin. S. Gasbarri and J.E. Chacin (1994) – “Expert System for Selection of
Optimum Artificial Lift Method” (SPE 26967) - III Latin American/Carribean
Petroleum En.glneermg Confererce held in Buenos AIres. Argentina, 27-29 April
1994, 30 pp.
Han-Young Park, Gioia Falcon and Catalin Teodoriu (2009) – “Decision matrix for
liquid loading in gas wells for cost/benefit analyses of lifting options”, Journal of
Natural Gas Science and Engineering, Vol. 1, (2009) pp. 72–83
James F. Lea and Henry V. Nickens (1999) – “Selection of Artificial Lift” – (SPE
52157), Presentation at the 1999 SPE Mid-Continent Operations, Symposium held
in Oklahoma City, Oklahoma, March 28-31, 1999, pp. 1-30
J.D. Clegg (1988) – “High-Rate Artificial Lift” (SPE 17638) - Journal of Petroleum
Technology, March 1988, pp. 277-282
J.D. Clegg, S.M. Bucaram, N.W. Heln Jr. (1993) – “Recommendations and
Comparisons for Selecting Artificial-Lift Methods” – (SPE 24834), Journal of
Petroleum Technology, Vol. 10, December(1993), pp 1128- 1167.
J.J. Cuesta and J.D. Ortega (2013) – “Selection Criteria and New Technologies on the
Artificial Lift Systems for Heavy and Extra Heavy Oil Wells in Colombia”(SPE 165008)
- SPE Artificial Lift Conference- Americas held in Cartagna, Colombia 21-22 May
2013, 7 pp.
Lloyd R. Heinze, Herald W. Winkler and James F. Lea (1996) – Decision Tree for
Selection of Artificial Lift Method”(SPE 29510) – Production Operations Symposium
held in Oklahoma city, OK, USA, 2-4 April 1996, 8 pp.
Mehrdad Alemi, Hossein Jalalifar, Gholamreza Kamali and Mansour Kalbasi (2010) –
“A prediction to the best artificial lift method selection on the basis of TOPSIS
model”- Journal of Petroleum and Gas Engineering Vol. 1(1), pp 009-015, March
2010
M.M. Khasanov, R.A. Khabibulin, A.A. Pashali and A.A. Semenov (2010) – “Approach
to Selection of the Optiomal Lift Tehcnique in the Vanlkor Field” (SPE 134774) - SPE
Annual Technical Conference and Exhibition held in Florence, Italy 19-22 September
2010, 10 pp.
Niaz Ajmi and Sheikha Al Barwani (2004) – “Artificial Lift Database”, URL :
http://www.slideshare. net/BPfanpage/artificial-lift-dbase-content-what-is-ald
Sandy Williams,Rafael Eduardo Rozo, Fernando Perez Aya and Jose Ismael Salazar
Hernandez (2008) – “Artificial-Lift Optimisation In The Orito Field”(SPE 116659-MS),
SPE Annual Technical Conference and Exhibition, Denver, Colorado, USA, 21-24
September 2008, 24 pp.
Editorial Board