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Nomenclature Drilling Fluid Considerations Conversions and Constants
Nomenclature Drilling Fluid Considerations Conversions and Constants
Production Casing
Pumps Using Pipe Weight OD 𝑅𝑐 Rig Power Requirements
ID KOP 𝛽 𝑤 = angular velocity
Pore Pressure Gradient Single Acting Pumps 𝑂𝐷2 𝑊𝑝𝑖𝑝𝑒 𝑅𝑐
THD
”Bottom-Up” Casing Selection 𝐶𝑝𝑖𝑝𝑒 = − THD = Departure
Pore Pressure + Trip Margin Well Trajectory
Fracture Gradient
can also do
𝑞 = 0.0034 𝑑𝑝2 𝑁𝑝 𝐿𝑠 𝑁𝜂𝑣 [=] 𝑔𝑎𝑙 Τ𝑚𝑖𝑛 1029.4 5.615𝜌𝑝𝑖𝑝𝑒
“Top-Down” Casing Selection N
Frac Gradient – Kick Margin 5729.6 deg. BHL 𝑅𝑐 = radius of curvature
Annular Space
Annular Space
𝑑𝑝 = plunger diameter[=]𝑖𝑛 𝑁𝑝 = number of plungers 𝑙𝑏𝑓 𝑙𝑏𝑚
𝑊𝑝𝑖𝑝𝑒 [=] 𝜌𝑝𝑖𝑝𝑒 [=] 3 𝐷𝐿𝑆 = [=] 𝑇𝑉𝐷 = true vertical depth
Common Bit Sizes Conventional Casing Strings 𝑓𝑡 𝑓𝑡 𝑅𝑐 100 𝑓𝑡
𝑁 = pump speed[=] 𝑠𝑡𝑟𝑜𝑘𝑒𝑠Τ𝑚𝑖𝑛 𝐿𝑠 = stroke length[=]𝑖𝑛 𝑀𝐷 = measured depth
Casing Size Common Bit CSG BIT 2
𝐷𝐿𝑆 = Dog Leg Severity DF Departure
(OD in.) Sizes (in.) in. in. 𝜂𝑣 = volumetric efficiency which is usually between 0.8 − 0.9 𝑂𝐷 𝑊𝑝𝑖𝑝𝑒 𝑇𝐻𝐷 = total horizontal distance
𝐼𝐷 = 24 − 𝛼2 − 𝛼1 𝜀2 − 𝜀1
24 𝜋𝜌𝑝𝑖𝑝𝑒 𝛽 = 2arcsin sin2 + sin𝛼1 sin𝛼2 sin2 𝐵𝐻𝐿 = bottom hole location
4 12 6,6 18 ,6 14 5 5 12 Down Hole Motors 2 2
5 6 12 ,6 3 4 Routine Pipe Calculations
6 12 7 78 Output Shaft Torque Cement 𝑊𝑝𝑖𝑝𝑒 = pipe air weight
5 12 7 7 8 ,8 38 𝑞𝜂𝑣 𝛥𝑃
𝑇 = 3.064 [=]𝑓𝑡 ⋅ 𝑙𝑏𝑓 Leak-Off Test – Good Cement Common Properties 24 Hour Compressive Strength (psi) Pumps
6 7 7 8 ,8 38 ,8 12 7 58 8 58 9 58 𝑁 API Class A H Curing Temperature and Pressure (psi) 𝑞 = flow rate under load 𝛥𝑃
6 58 8 12 ,8 58 ,8 34 𝛥𝑃 = 𝛥𝑃 through motor 𝑁[=]𝑟𝑝𝑚 𝜂𝑣 = volumetric efficiency Desired Pressure
12 Reached Water (%) by
9 78 11 1
46 38 60°F 80°F 95°F 110°F 140°F Down Hole Motors
Drill Pipe Pressure
7 8 58 ,8 34 ,9 12 4
Key Notes on Motors Cement Weight Class A 0 0 800 1600 3000
7 58 9 78 ,10 58 ,11 Cement 𝑁 = shaft speed
10 3 4 13 38 - Motor provides torque at the bit depending on 𝑞 and 𝛥𝑃 Water
5.19 4.29 3000 4050 5500 6700 8400
8 58 11,12 14 (gal/sack) Drill String Considerations
- A motor is a speed multiplier, adding to top drive or rotary speed
15 17 12 Slurry Density 95°F 110°F 140°F 170°F 200°F 𝐹𝐷 = drag due to friction
9 58 12 14 ,14 3 4 - Torque from the motor helps the bit drill in highly deviated 15.6 16.4 Class H 800 1600 3000 3000 3000
sections where it’s difficult to apply WOB (ppg) 𝑊𝑇𝐸 = traveling equipment
10 3 4 15
20
Cement
16 Slurry Yield 615 1905 2085 2925 5050 𝑊𝐵,𝐷𝑆 = buoyed drill string
13 38 17 12 - 𝑞, 𝛥𝑃, and 𝑁 are interrelated and depend on how motor is made Pumping Shut-in & Bleed-off
ft 3Τsack
1.18 1.06
16 20 20 26 - If motor cannot supply the required torque to break rock, the 0 Time (mins) 20 𝛼 = hole inclination[=]deg
20 24,26 motor will stall and motor damage can occur 𝑇 = rotating torque
Casing Loads
Drill String Considerations Collapse Pressure Burst Pressure Worst Case Scenario for Collapse and Burst
𝑊𝑐𝑟 = critical weight on bit
If fluid is a Bingham Plastic, This eqn estimates the added mass of rock 𝑃𝑟𝑠𝑣𝑟 = 𝑃𝑑𝑝 + 0.052𝜌𝑚 𝑇𝑉𝐷 𝑉𝑑𝑝 + 𝑉𝑑𝑐 𝑉[=]𝑏𝑏𝑙 𝑉𝑑𝑝,𝑎𝑛𝑛 + 𝑉𝑑𝑐,𝑎𝑛𝑛 𝛻𝑃 = mud pressure gradient
2 2 𝑆𝑇𝐾𝑑𝑝 = 𝑆𝑇𝐾𝑎𝑛𝑛 =
𝜌 𝑞 𝑣ҧ 𝐿 calculate apparent viscosity 𝛥𝑃𝐴𝑛𝑛 = frictional 𝑃 loss in
𝑃𝑝 = + 𝑓𝜌 [=]𝑝𝑠𝑖 𝑚𝑟 = 𝑅𝑂𝑃 𝐴𝑏 𝜌𝑟𝑜𝑐𝑘 1 − 𝜙 42𝑞𝑝 𝑞𝑝 [=] 𝑔𝑎𝑙 Τ𝑠𝑡𝑟𝑜𝑘𝑒 42𝑞𝑝
6704 𝑑𝑒4 25.8 𝐷 𝜏𝑦 𝐷 𝑃𝑟𝑠𝑣𝑟 annulus above point of interest
𝜇𝑎 = 𝜇𝑝 + 6.66 𝑚𝑟 [=]rock mass per time 𝜌𝑘𝑖𝑙𝑙 ≥ [=]𝑝𝑝𝑔
𝑛 1ൗ
2 𝑣ҧ 0.052𝑇𝑉𝐷 Pressures During Driller’s Method 𝑉𝑑𝑝 = drill pipe volume
𝑅𝑂𝑃 = rate of penetration[=] 𝑓𝑡 Τℎ𝑟 Gas Kick circulated
𝑑𝑒 = equivalent nozzle diameter = 𝑑𝑖2 across choke 𝑉𝑑𝑐 = drill collar volume
Reynold’s Number 2
𝑉𝑚 𝜌𝐵𝑎 𝜌𝑘𝑖𝑙𝑙 − 𝜌𝑚 Drillstring
𝑖=1 𝐴𝑏 = bit area[=]𝑓𝑡 𝜌𝑟𝑜𝑐𝑘 [=] 𝑙𝑏𝑚 Τ𝑓𝑡 3 𝑚𝐵𝑎 = [=]𝑙𝑏𝑚 Volume 𝑞𝑝 = pump output
𝐷𝑣𝜌 𝜌𝐵𝑎 − 𝜌𝑘𝑖𝑙𝑙 Annulus Volume
𝑑𝑖 = bit nozzle diameter[=]𝑖𝑛 𝑃𝑖𝑐
𝑁Re = 928 If cuttings from shaker cleaned and 𝑆𝑇𝐾𝑑𝑝 = strokes to fill drill pipe
𝜌[=]𝑝𝑝𝑔 𝑞[=] 𝑔𝑎𝑙 Τ𝑚𝑖𝑛 𝑣[=]
ҧ 𝑓𝑡 Τ𝑠𝑒𝑐 𝐿[=]𝑓𝑡 𝐷[=]𝑖𝑛 𝜇 weighed as a function of time, a rough idea 𝑉𝑚 = total system mud volume = 𝑔𝑎𝑙 𝑃𝑐𝑠𝑟 𝑉𝑑𝑐,𝑎𝑛𝑛 = drill collar annular 𝑉
*units same as Pump Pressure of the state of cleaning can be obtained
Optimizing Bit Hydraulics 𝑉𝑚 𝜌𝑘𝑖𝑙𝑙 − 𝜌𝑚 𝑃𝑐𝑠𝑔 𝑉𝑑𝑐,𝑎𝑛𝑛 = drill collar annular 𝑉
- Normally it’s only possible to optimize bit hydraulics 𝑁Re < 2100 : Laminar Flow Factors Influencing Deviated Hole Cleaning 𝑉𝑖𝑛𝑐 = [=]𝑏𝑏𝑙
42 𝜌𝐵𝑎 − 𝜌𝑘𝑖𝑙𝑙 𝑆𝑇𝐾𝑎𝑛𝑛 = strokes to fill annulus
if drilling without a motor Pipe Flow Rate
𝑃𝑑𝑝
𝑁Re > 2100 : Turbulent Flow
Influence on Hole Cleaning
Created by James Riddle with guidance from Dr. Paul Bommer and Dr. Matthew T. Balhoff Contact balhoff@mail.utexas.edu with comments/suggestions
Fundamentals of Production Engineering
Nomenclature Flow in Pipes Corrosion
Corrosion Mechanical Energy Balance Friction Factor Reduces metal thickness which leads to a reduction in collapse, burst, and tensile forces
𝛥𝑚𝑎𝑠𝑠 = mass lost Moody correlations based
Liquid Flow
on Reynolds Number
Corrosion Influences 1000
Approximate Material Selection Monitoring – Corrosion Coupon
𝛥𝑡 = test duration Consistent Units Corrosion Rate
In general, hard metal Max Temp 392°𝐹Max Temp 25Cr-
8𝑞2 1 𝑞𝜌
𝐷c = choke diameter[=]𝑖𝑛
mechanical energy balance specific
𝛾 ≈
heat ratio 𝐻 𝐶መ𝑃 𝑀𝑊𝑎𝑖𝑟 𝛾𝑔 − 1.99
→ critical
value
CV =
𝛾𝐻 + 1
𝑇𝐷𝑆 = total dissolved solids[=] 𝑚𝑔Τ𝐿 𝑇 = temperature[=]𝐾 𝐾𝑠𝑝 = equilibrium coefficient 𝐴 = anion molarity
1 2 𝑃1 − 𝑃2 Compute equivalents per liter for cation and anion
𝐼𝐷𝑝 = upstream diameter[=]𝑖𝑛 𝑣 − 𝑣12 = 𝑔 𝐻𝑎𝑟𝑑 = hardness = 1000 𝑀𝑊𝐶𝑎𝐶𝑂3 𝐶𝑎 + 𝑀𝑔 [=] 𝑚𝑔Τ𝐿
2 2 𝜌 𝑃2 Compare solubility to minimum value
𝛥𝑃 = 𝛥𝑃 across choke[=]𝑝𝑠𝑖𝑎 𝑃2 uses measured 𝑃2
≤ CV 𝑃1 pressures from well > CV 𝐴𝑙𝑘 = alkalinity[=] 𝑚𝑔Τ𝐿 𝑀𝑊𝐶𝑎𝐶𝑂3 = 100.09 𝑔Τ𝑚𝑜𝑙 𝑖𝑜𝑛 [=] 𝑚𝑜𝑙 Τ𝐿
𝐶መ𝑃 = constant pressure specific 8081.7𝐶 𝐷𝑐2 𝛥𝑃 𝑃1 𝑚 𝑚 𝑃1 𝑚 𝑖𝑜𝑛 𝑚𝑔Τ𝐿 𝑖𝑜𝑛 𝑐ℎ𝑎𝑟𝑔𝑒 𝑒𝑞
heat capacity[=] 𝐵𝑇𝑈Τ𝑙𝑏𝑚 °𝐹 𝑞= [=]
4 𝜌 Critical flow 𝑃1 = upstream pressure Critical flow 𝐴𝑙𝑘 = 500 𝑀𝑊𝐶𝑎𝐶𝑂3 𝐻𝐶𝑂3 + 2 𝐶𝑂3 + 𝑂𝐻 + 𝐻 𝐻 is negligible 1000(𝑀𝑊𝑖𝑜𝑛 ) 𝐿
𝐷64 = 64 𝐷𝑐 [=] 𝑖𝑛 Τ64 𝐷𝑐 achieved NOT achieved
1− 𝑃2 = downstream pressure
𝑇1 = upstream temp[=]𝑅
𝐼𝐷𝑝 Scale is likely to form if 𝐿𝑆𝐼 ≥ 0 Scale is likely to form if 𝑆 ≤ 𝑒𝑞 Τ𝐿
𝑡1 1
ℎ = reservoir thickness[=]𝑓𝑡 − Apply steady-state & radial flow
Steady-state & radial flow
𝐵𝑜 = oil FVF[=] 𝑅𝐵 Τ𝑆𝑇𝐵 𝑡3
𝐽𝑜 Predicting Gas Production Flow Assurance
0.00708𝑘𝑜 ℎ 7.0225𝑥10−4 𝑘𝑔 ℎ
𝜇𝑜 = oil viscosity[=]𝑐𝑝 𝐽𝑜 = 0 𝐽𝑔 = - Gas decline curves are harder to predict due to the Common Issues
𝑟 1 𝑟 1
𝑟𝑒 = drainage radius[=]𝑓𝑡 𝐵𝑜 𝜇𝑜 ln 𝑟𝑒 − 2 + 𝑠 0
𝑞𝑜𝑠𝑐 𝑆𝑇𝐵Τ𝑑𝑎𝑦 ҧ ln 𝑟𝑒 − 2 + 𝑠
𝜇ҧ𝑔 𝑧𝑇 high expansivity of gas Damage Type Detection Methods Prevention Methods Removal Methods
𝑤 𝑤
If 𝐵𝑜 , 𝜇𝑜 , 𝑘𝑜 relatively constant, - Can lead to an overestimation of total recovery
𝑟𝑤 = wellbore radius[=]𝑓𝑡 Calcium Water analysis Scale inhibitor
Only good for single phase flow 𝐽𝑜 is a constant Gas properties evaluated at 𝑃ത HCl acid job
𝑠 = skin factor - Can use a P/z plot as another predictor Carbonate Scale Physical sample Scale squeeze
𝑃ത = avg. reservoir 𝑃[=]𝑝𝑠𝑖 Two-Phase IPR 𝑃 < 𝑃𝐵𝑃 Gas IPR Curves - Developed from the Real Gas Law Barium Water analysis Mechanical removal
Decreasing 𝑃𝑒 over time Scale inhibitor
𝑘𝑔 = gas permeability[=]𝑚𝐷 Empirical correlation (Vogel, 1968) Sulfate Scale Physical sample Re-perforation
Decreasing 𝑃ത over time P/z Plot – OGIP Estimation
𝑞𝑔𝑠𝑐 = gas rate[=] 𝑀𝑠𝑐𝑓 Τ𝑑𝑎𝑦
𝑃𝑤𝑓 𝑝𝑠𝑖
𝑡1 Absolute
𝜇ҧ 𝑔 = avg. gas viscosity[=]𝑐𝑝 Water influx Chloride Physical sample to reduce gas cooling Re-perforation
𝑞𝑜,𝑚𝑎𝑥 𝑡1 𝑡2 Open Flow
𝑇 = reservoir temp[=]𝑅 𝛸 = 𝑃𝑤𝑓 Τ𝑃ത 𝑡2 𝑡3 z i No water influx Emulsions Physical sample Emulsion Emulsion breaker
𝑡3
Predicting Gas Production 0 0 and Sludge Lab analysis breaker Mutual Solvent
Can replace 𝑃ത with 𝑃𝑒 0 0
𝐺𝑃 = cumulative gas produced 𝑞𝑜𝑠𝑐 𝑆𝑇𝐵Τ𝑑𝑎𝑦 𝑞𝑔𝑠𝑐 𝑀𝑠𝑐𝑓Τ𝑑𝑎𝑦 ഥ
𝐏 Liquid Block Well history Limit pressure
Mutual solvents
𝐺𝑟 = recoverable gas Vertical Lift Performance Decline Curve Analysis 𝐳
Gas Well Lab analysis drop at wellbore
𝐺 = original gas in place - Vertical lift performance can be developed 1000 Physical sample Inhibitors Inhibitors
Hyperbolic Decline 𝑏=0 𝑏 = 0.5 𝑏=1 Gab = Gr
Asphaltenes
Oil analysis Application of heat Application of heat
Production Rate (q)
Decline Curve Analysis by using the mechanical energy balance (Arps, 1940) ഥ
P
𝑏 = hyperbolic exponent - VLP displays bottom hole pressure required 100 Physical sample Inhibitors Inhibitors
to flow to surface at varying flow rates 0<𝑏<1 z G = OGIP Paraffin
Oil analysis Application of heat Application of heat
𝑞 = future rate [=] 𝑝𝑟𝑜𝑑 Τ𝑡𝑖𝑚𝑒 ab
𝑞𝑖 = initial rate[=] 𝑝𝑟𝑜𝑑 Τ𝑡𝑖𝑚𝑒 VLP & IPR 𝑞𝑖 10 Formation Limit production rate Re-perforation
𝑞= 𝐆𝐏 Physical sample
2.375” tbg 2.875” tbg 3.5” tbg IPR 1 Τ𝑏 Fines Gravel/frac pack Small frac job
𝑡 = time 1 + 𝑏𝐷𝑖 𝑡 As b-factor increases, well’s
5 economic life increases
𝐷 = decline rate[=] 1Τ𝑡𝑖𝑚𝑒 Smaller 𝐼𝐷 requires Clay Lab analysis Don’t introduce Re-perforation
𝑏 1
𝑃ത 𝑃ത 𝑃ത 1 𝐺𝑟
more pressure 1 𝑞𝑖 0 Time 𝑅𝐹 = Swelling Production rate drop incompatible water Small frac job
𝑃𝑤𝑓 𝑝𝑠𝑖Τ1000
intercept slope
Artificial Lift 2
Need more 𝑃𝑤𝑓 𝑞𝑖 − 𝑞𝑖𝑏 𝑞1−𝑏
𝑃𝐼𝑃 = pump intake 𝑃
1 than well provides 𝑁𝑝 =
𝐷𝑖 (1 − 𝑏) EL
Artificial Lift
𝑃𝐷𝑃 = pump discharge 𝑃 Common Issue Rod Pump ESP Gas Lift
0
Beam Lift
𝛥𝑃𝑆𝑉 = 𝛥𝑃 thru standing valve 0 1000 2000 3000 4000 𝑏 EL Sand Fair Fair Excellent
𝑞 𝑏=0 𝑏 = 0.5 𝑏=1 Pressure Differential Across Plunger Rod Loads
𝑃𝑠,𝑡𝑏𝑔 = tbg surface pressure 𝑞𝑜𝑠𝑐 𝑆𝑇𝐵Τ𝑑𝑎𝑦 𝐷 = 𝐷𝑖 0 Paraffin Poor Good Poor
IPR < VLP need artificial lift to flow to surface 𝑞𝑖 0 Time 𝛥𝑃 = 𝑃𝐷𝑃 − 𝑃𝐼𝑃 + 𝛥𝑃𝑆𝑉 𝑃𝐼𝑃 = 𝑃𝑤𝑓 𝑃𝑃𝑅𝐿 = 𝑊𝑟𝑓 + 𝐹𝑜 + 𝑊𝐷,𝑢𝑝
𝛻𝑃𝑡𝑏𝑔 = tbg fluid 𝑃 gradient High GOR Fair Fair Excellent
𝑆 = surface stroke length = 𝑖𝑛 Packer Forces Deviated Hole Poor Fair Good 𝑃𝐷𝑃 = 𝛻𝑃𝑡𝑏𝑔 𝐷𝑝𝑢𝑚𝑝 + 𝑃𝑠,𝑡𝑏𝑔 + 𝑃𝑓𝑟𝑖𝑐 𝑀𝑃𝑅𝐿 = 𝑊𝑟𝑓 − 𝑊𝐷,𝑑𝑜𝑤𝑛
Corrosion Good Fair Fair
𝑠𝑡𝑏𝑔 = tubing stretch = 𝑖𝑛 Tubing Movement Piston Forces Pump Displacement 𝜌𝑓 𝑊𝑟𝑓 = buoyed
High Volume Poor Excellent Good 𝑊𝑟𝑓 = 𝑊𝑟𝑜𝑑 1 −
𝑠𝑟𝑜𝑑 = rod stretch = 𝑖𝑛 If tbg free to 𝜋 𝑞 = 0.1166𝑁𝑑𝑝2 𝑆𝑝 𝜂𝑝 [=] 𝑏𝑏𝑙 Τ𝑑𝑎𝑦 𝜌𝑟𝑜𝑑 rod weight
move, need to
𝐹𝑎 = 𝐹𝑆𝑂 + 𝑃𝑎 𝑂𝐷𝑏2 − 𝑂𝐷𝑠2 Depth Fair Fair Good
𝑀𝑃𝑅𝐿 = min. polish road load 4
make sure pkr Simple Design Yes Yes No 𝑁 = pump speed[=]𝑠𝑝𝑚 𝜂𝑝 = pump efficiency 𝑆𝑉𝑙𝑜𝑎𝑑 = 𝑊𝑟𝑓 𝑇𝑉𝑙𝑜𝑎𝑑 = 𝐹𝑜 + 𝑆𝑉𝑙𝑜𝑎𝑑
𝑃𝑃𝑅𝐿 = peak polish rod load stays sealed 𝑃𝑎 = 𝑃𝑠,𝑎𝑛𝑛 + 𝐷𝑝𝑘𝑟 𝛻𝑃𝑎𝑛𝑛 Casing Size Fair Good Good 𝑑𝑝 = plunger diameter[=]𝑖𝑛 Pump Slippage (Patterson, et al, 2007)
𝐹𝑜 = fluid weight[=]𝑙𝑏𝑓 Flexibility Fair Poor Good
𝐹𝑆𝑂 = slacked off tubing weight
𝑊𝐷 = dynamic load[=]𝑙𝑏𝑓 Effective Stroke Length 𝑑𝑝 𝛥𝑃𝑐𝑝1.52 𝑏𝑏𝑙
Total Production Scale Good Poor Fair
𝛥𝐿 Movement 𝑂𝐷𝑏 = packer bore diameter[=]𝑖𝑛 𝑞𝑠 = 1 + 0.14𝑁 453
𝐿𝑝 𝜇𝑓
[=]
𝑑𝑎𝑦
𝐿𝑝 = plunger seal length[=]𝑖𝑛 𝑂𝐷𝑠 = metal seal tube 𝑂𝐷[=]𝑖𝑛
𝑆𝑝 = 𝑆 + 𝑠𝑝𝑜 − 𝑠𝑡𝑏𝑔 − 𝑠𝑟𝑜𝑑 = 𝑖𝑛
Onshore Usage 84% 2% 11%
Packer Forces 𝐷𝑝𝑘𝑟 = packer true vertical depth Gas Lift much higher % offshore 𝑠𝑝𝑜 = plunger overtravel 𝑠𝑡𝑏𝑔 = 0 tbg anchored 𝑐𝑝 = plunger clearance = 𝑖𝑛 𝜇𝑓 [=]𝑐𝑝
𝑃𝑎 = 𝑃 above the packer 𝑃𝑠,𝑎𝑛𝑛 = surface pressure in annulus
Resource Economics
𝑃𝑏 = 𝑃 below the packer 𝛻𝑃𝑎𝑛𝑛 = annulus fluid pressure gradient
𝜋 Reserve Classification – Common Acronyms Time Value of Money
𝐼𝐷𝑠 = seals 𝐼𝐷[=]𝑖𝑛
Landed Piston Buckling Ballooning Temp 𝐹𝑏 = −𝑃𝑏 𝑂𝐷𝑏2 − 𝐼𝐷𝑠2 1. PDP: Proved Developed Producing – well is online and producing 𝑃𝑉 = present value 𝐷𝑅 = discount rate
𝐴𝑝𝑘𝑟 = cross sectional area length 4 𝑃𝑉 = 𝐹𝑉 𝐷𝐹
2. PDNP: Proved Dev. Non-Producing – reserves are behind pipe, well is 𝐹𝑉 = future value 𝐷𝑅[=] 𝑑𝑒𝑐𝑖𝑚𝑎𝑙 Τ𝑦𝑟
𝛥𝑃𝑎𝑛𝑛 = avg. 𝛥𝑃 in annulus 𝛴𝐹 𝑀𝐷 𝑃𝑏 = 𝑃𝑠,𝑡𝑏𝑔 + 𝐷𝑝𝑘𝑟 𝛻𝑃𝑡𝑏𝑔 shut-in, or waiting on necessary equipment installation to produce 𝐷𝑅 −𝑡𝑛
𝛴𝐹 = 𝐹𝑏 + 𝐹𝑎 + 𝐹𝑏𝑢 + 𝐹𝑏𝑎 + 𝐹𝑇 𝛥𝐿 = [=]𝑓𝑡 𝐷𝐹 = 1 +
𝛥𝑃𝑡𝑏𝑔 = avg. 𝛥𝑃 in the tubing 𝐴𝑡𝑏𝑔 𝐸 𝐷𝐹 = discount factor 𝑛 𝑡 = time in years
Permanent Buckling 3. PUD: Proved Undeveloped – offsetting wells or existing wells that
𝛿 = linear thermal expansion 𝐹𝑎 = force acting on seals from above 𝑀𝐷 = pkr measured depth would require a major recompletion 𝑛 = discounting periods per year
𝐹𝑏𝑢 = 𝐴𝑝𝑘𝑟 𝛥𝑃𝑎𝑛𝑛 − 𝛥𝑃𝑡𝑏𝑔
Resource Economics 𝐹𝑏 = force acting on seals from below 𝐴𝑡𝑏𝑔 = cross sectional area Economic Limit Converting Production into Cash Flow
𝐷𝑝𝑘𝑟 𝛻𝑃𝑎𝑛𝑛 Net Revenue Tax Cash Flow Disc. Cash Flow
𝑁𝑅𝐼 = net revenue interest 𝛥𝑃𝑎𝑛𝑛 = 𝛥𝑃𝑠,𝑎𝑛𝑛 + 𝑂𝑃𝐸𝑋[=] $Τ𝑡𝑖𝑚𝑒
- If tbg cannot move, need to check tensile strength of pkr and tbg 𝑂𝑃𝐸𝑋 𝑊𝐼 𝑝𝑟𝑜𝑑
𝑂𝑃 = oil price 2 𝐺𝑅 𝑁𝑅𝐼 𝑁𝑅 𝑆𝑇 + 𝐴𝑉𝑇 𝑁𝑅 − 𝑂𝑃𝐸𝑋 − 𝑇𝐴𝑋 𝐶𝐹 𝐷𝐹
𝑊𝐼 = working interest 𝐸𝐿 = [=]
𝐹𝑡𝑜𝑝 = 𝑀𝐷 𝑊𝐵 − 𝐹𝑇 − 𝐹𝑏𝑎 − 𝐹𝑆𝑂 𝐷𝑝𝑘𝑟 𝛻𝑃𝑡𝑏𝑔 𝑁𝑃 𝑁𝑅𝐼 𝑡𝑖𝑚𝑒 𝐺𝑅 = gross revenue = production gross price
𝐴𝑉𝑇 = ad valorem tax 𝑁𝑃 = net price
𝐹𝑡𝑜𝑝 = force at top of tubing 𝑊𝐵 = buoyed tbg weigh𝑡[=] 𝑙𝑏𝑓 Τ𝑓𝑡 𝛥𝑃𝑡𝑏𝑔 = 𝛥𝑃𝑠,𝑡𝑏𝑔 +
𝐺𝑃 = gas price 2 Evaluating Potential Investments
𝑁𝑃𝑜 = 𝑂𝑃 1 − 𝑆𝑇𝑜 − 𝐴𝑉𝑇 + 𝐺𝑃 𝐺𝑂𝑅 1 − 𝑆𝑇𝑔 − 𝐴𝑉𝑇
𝐺𝑂𝑅 = gas−oil ratio Temperature Change (for steel) Tubing Ballooning Disc. Return on Investment Disc. Rate of Return Undiscounted Payout
𝑁𝑃𝑔 = 𝐺𝑃 1 − 𝑆𝑇𝑔 − 𝐴𝑉𝑇 + 𝑂𝑃 𝑂𝑌 1 − 𝑆𝑇𝑜 − 𝐴𝑉𝑇 𝐷𝐶𝐹 Discount rate that Time required to return
𝑁𝑃𝑔 = net gas price 𝐸 = 30 𝑥 106 𝑝𝑠𝑖 𝜋 2 2 𝐷𝑅𝑂𝐼 = yields a net present initial investment using
𝐹𝑇 = 𝐴𝑡𝑏𝑔 𝛥𝑇 𝐸𝛿 = 207𝐴𝑡𝑏𝑔 𝛥𝑇 𝐹𝑏𝑎 = 0.6 𝛥𝑃𝑎𝑛𝑛 𝑂𝐷𝑡𝑏𝑔 − 𝛥𝑃𝑡𝑏𝑔 𝐼𝐷𝑡𝑏𝑔 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
𝐷𝐶𝐹 = discounted cash flow 𝛿 = 6.9 𝑥 10−6 °𝐹 −1 4 𝑁𝑃𝑜 = net oil price 𝑆𝑇 = severance tax 𝑂𝑌 = oil yield value of zero undiscounted cash flow
Created by James Riddle with guidance from Dr. Paul Bommer and Dr. Matthew T. Balhoff Contact balhoff@mail.utexas.edu with comments/suggestions