RESERVOIR ENGINEERING & MANAGEMENT UNIT 1 1.

Principles of Reservoir Engineering Scope & importance of Reservoir Engineering
The technology concerned with the prediction of the optimum economic recovery of oil or gas from hydrocarbon-bearing reservoirs. It is an eclectic technology requiring coordinated application of many disciplines: physics, chemistry, mathematics, geology, and chemical engineering. Originally, the role of reservoir engineering was exclusively that of counting oil and natural gas reserves. The amount of oil or gas that can be economically recovered from the reservoir is a measure of the wealth available to the owner and operator. It is also necessary to know the reserves in order to make proper decisions concerning the viability of downstream pipeline, refining, and marketing facilities that will rely on the production as feedstock. The scope of reservoir engineering has broadened to include the analysis of optimum ways for recovering oil and natural gas, and the study and implementation of enhanced recovery techniques for increasing the recovery above that which can be expected from the use of conventional technology. The amount of oil in a reservoir can be estimated volumetrically or by material balance techniques. A reservoir is sampled only at the points at which wells penetrate it. By using logging techniques and core analysis, the porosity and net feet of pay (oil-saturated interval) and the average oil saturation for the interval can be estimated in the immediate vicinity of the well. The oil-saturated interval observed at one location is not identical to that at another because of the inherent heterogeneity of a sedimentary layer. It is therefore necessary to use statistical averaging techniques in order to define the average oil content of the reservoir (usually expressed in barrels per net acre-foot) and the average net pay. The aerial extent of the reservoir is inferred from the extrapolation of geology and fluid content as well as the drilling of dry holes beyond the productive limits of the reservoir. The definition of reservoir boundaries can be heightened by study of seismic surveys, particularly 3-D surveys, and analysis of pressure buildups in wells after they have been brought on production. The overall recovery of crude oil from a reservoir is a function of the production mechanism, the reservoir and fluid parameters, and the implementation of supplementary recovery techniques. In general, recovery efficiency is not dependent upon the rate of production except for those reservoirs where gravity segregation is sufficient to permit segregation of the gas, oil, and water. Where gravity drainage is the producing mechanism, which occurs when the oil column in the reservoir is quite thick and the vertical permeability is high and a gas cap is

initially present or is developed on producing, the reservoir will also show a significant effect of rate on the production efficiency. Reservoir engineering expertise, together with geological and petrophysical engineering expertise, is being used to make very detailed studies of the production performance of crude oil reservoirs in an effort to delineate the distribution of residual oil and gas in the reservoir, and to develop the necessary technology to enhance the recovery. The first chemical tracer Test Conducted at NCPA’s well C-11 in January 1990.

The application of reservoir engineering begins during the exploration phase of the project with the analysis of the initial geophysical measurement data that indicate a promising geothermal system, and it continues throughout the operational life of the geothermal resource. It is the reservoir engineer’s task to test wells, monitor their output, design new wells, and predict the long-term performance of the reservoir and wells. This design and prediction is accomplished by studying field and operational measurement data and using computer models to project the field operation into the future. During operation of a geothermal field, the reservoir engineer will be able to compare the actual performance to the predicted performance. If necessary, the engineer can modify the management plan for the geothermal field to obtain more efficient operation.

Sedimentary formations suitable for hydrocarbon reserves
The first requisite for hydrocarbon is a reservoir: a rock formation porous enough to contain oil or gas and permeable enough to allow their movement through it. Oil and gas occur in sedimentary rock formation laid down in ancient riverbeds or beaches, and also occasionally in dune sands or deep-

sea sands. Where the limestone is porous and permeable they also form reservoirs, as in reefs built up by corals, and in places where waves and tidal currents exist. In carbonate formation, limestone (Ca CO3) and dolomite (Mg CO3), which are more brittle and soluble than sandstones, secondary porosity is found in fractures, solution channels. The more prolific Iranian Petroleum Reservoirs are made of fractured carbonates. Hydrocarbons can occur within and around igneous rocks, sometimes in commercially significant quantities. Igneous or closely associated rocks can be hydrocarbon sources in the conventional sense (biotic) as well as possibly through abiotic processes. Maturation is extremely variable, depending on the extrusive/intrusive nature of the activity and the relative importance of a deep heat source. Igneous volatiles and hydrothermal fluids may also be important in mobilizing and moving hydrocarbons. Igneous rocks can have good reservoir qualities, and they can produce their own trapping structures as well as being part of a larger feature. Though oil is mainly found in sedimentary rocks, all sedimentary rocks do not contain oil. An oil reservoir must have three pre-requisite conditions: 1. Porosity so as to accommodate sufficiently large amount of oil. 2. Permeability to discharge oil and/or gas when well has been drilled. 3. The porous sand beds, sand stone, conglomerates of fissured limestone containing oil should be capped by impervious beds so that oil does not dissipate by percolation in the surrounding rocks. Oil is usually found where the sedimentary rock strata are inclined and folded; in a sort of chamber or reservoir, in the highest possible situation. Normally, oils are associated with water. Being lighter than water, it collects in the anticlines or fault traps above the surface of water. Gas is still lighter and occurs above oil. Thus on drilling an oil well, one finds gas followed by oil, although gas seepage is not always a sure indicator of an oil reservoir.

Classification
Sedimentary rock types are classified in one of three categories. The clastic category forms from fragmented sediment. Portions of eroded or weathered rock bind, producing clastic subcategories of conglomerate, sandstone, siltstone, or shale. Grain size distinguishes rocks in each clastic subcategory. A second category of sediment and sedimentary rock is termed chemical. As a result of dissolution, sediment of pre-existing rock(s) somewhat congeals and travels in a body of water. Usually evaporation settles the deposit which then completely solidifies. The product is a type of chemical sedimentary rock, commonly limestone.

and sulfur as impurities. compounds made up of different proportions of the elements carbon and hydrogen. Biogenic rocks form from evaporative and chemical processes which glue fossils into one mass. Petroleum means rock-oil. The differences in the physical properties among the various fossil fuels arise from differences between the starting materials from which the fuels formed and changes to those materials after the organisms died and were buried within the layers of the earth. meaning oil. Limestone and coal are examples of biogenic sedimentary rocks.The last category of sedimentary rock is known as biogenic or organic. The biogenic method. in which methane is the most common component. They include oil. and fuels derived from oil shale and tar sand. and oleum. migration & accumulation of hydrocarbon fluids Origin of fossil fuels Fossil fuels are those energy sources that formed from the remains of once-living organisms. or oil. comprises a variety of liquid hydrocarbon compounds. and comes from the Latin Petra. Hydrocarbon mixtures usually also contain minor amounts of nitrogen. oxygen. . There are also gaseous hydrocarbons (natural gas). meaning rock or stone. coal. Shells and plant fragments unite in biogenic sedimentary rocks. is categorized separately because leftovers of living organisms compose the sediment. natural gas. Liquid petroleum. while chemical. Brief description of origin.

which is rich in carbon and hydrogen. Oil and most natural gas are believed to form from such accumulated marine microorganisms. the hydrocarbons need to migrate out of the source rocks in which they formed in order to form a commercial deposit. from which lubricating oils. So. nearly solid consistency of asphalt. over long periods of time. In such a setting.The production of a large deposit of any fossil fuel requires an even larger initial accumulation of organic matter. and gasoline are derived. Most of the maturation (cooking) process occurs in the temperature range of 50° to 100° C (approximately 120° to 210° F). A rock with good . Pressures increase with the weight of the overlying sediment or rock. which allows oil to flow quickly out of the rock. As the petroleum matures. such as on many continental shelves. Thick liquids give way to thinner ones. Some natural gas deposits that are not associated with oil may form from deposits of plant material buried in sediment. There are also underwater areas near Shorelines. methane can also be broken down and destroyed. chemical reactions take place. the rock must have good permeability. from which it would be difficult to extract large quantities of oil or gas quickly. or pores. complex organic molecules into simpler. In the final stages. in addition to high porosity. The oil industry has helped feed this misconception by talking about oil “pools. Above these temperatures. Most people have the incorrect notion that there are underground “lakes” of oil. most or all of the petroleum is broken down further into very simple. are filled with water. which have the thick. there is an abundance of organic matter rapidly buried by sediment. Microscopic life is abundant over most of the earth’s oceans. These holes. or oil. and slowly. When these organisms die. the organic matter begins to change. smaller hydrocarbon molecules. These reactions break down the large. heating oils. As burial continues. However. which allows the rock to hold large amounts of oil. gas. their remains can settle to the sea floor. successively “lighter” hydrocarbons are produced.” The truth is that virtually all the oil is contained in tiny holes in solid rock. Another requirement is that the organic debris be buried quickly to protect it from the air so that decay by biological activity or reaction with oxygen will not destroy it. the deposit may consist mainly of larger (heavy) hydrocarbons. temperatures increase with depth in the earth. the remaining hydrocarbon is almost entirely methane (natural gas). Migration and accumulation Once the solid organic matter is converted to liquids and/or gases. with further temperature increases. then oil can’t flow out of the rock. In the early stages of petroleum formation. The ability of liquid to flow through the pores is permeability. The majority of petroleum source rocks are fine grained sedimentary rocks (like shale). where sediments derived from continental erosion accumulate rapidly. and as the breakdown of large molecules continues. But if the holes are not connected. light. the starting requirements for the formation of oil are satisfied. gaseous molecules—natural gas. oil and gas are able to migrate out of their source rocks into more permeable rocks over the long spans of geologic time.

so they tend to rise as well as to migrate laterally through the water-filled pores of permeable rocks. Unless sealed by impermeable cap rocks. the oceans. These substances escape into the air. which are one of nature’s own pollution . oil and gas may keep rising right up to the earth’s surface. Most oils and all natural gases are less dense than water. or they flow out onto the ground at oil and gas seeps. These natural seeps.porosity and permeability is a reservoir rock.

it may be necessary to fracture (crack open) them artificially with explosives or with water or gas under high pressure to increase the rate at which oil or gas flows through them.Sources are not very efficient sources of hydrocarbons for fuel compared with present day extraction methods. Commercially. the most valuable deposits are those in which a large quantity of oil and/or gas is concentrated and confined) by geologic traps. such as folds and faults. . If the reservoir rocks are not naturally permeable enough.

Porosity Porosity or void fraction is a measure of the void spaces in a material. Two types of porosity are a. It is defined by the ratio: Where VV is the volume of void-space (such as fluids) and VT is the total or bulk volume of material. Total & b. the volume of connected . water. In the original definition of core analysts. and is a fraction of the volume of voids over the total volume. Both the mathematical symbols φ and n are used to denote porosity. Effective porosity Total porosity Total Porosity is the ratio: Sum of the volumes of all pores in the rock -------------------------------------------------------Total Volume of rock The volume of the reservoir rock which is fluid (oil. or as a percentage between 0–100percent. gas) filled. between 0–1. Effective porosity is typically less than total porosity. expressed as a percentage or a fraction of the gross (bulk) rock volume. including the solid and void components. Effective porosity Effective Porosity is the ratio: Sum of the volumes of all interconnected pores in the rock ----------------------------------------------------------------Total Volume of rock Effective porosity excludes isolated pores and pore volume occupied by water adsorbed on clay minerals or other grains.

part of the clay-bound water is not removed. The definition is based on the analysis of shaly formations. In this case effective porosity is synonymous with free fluid. the well is closed and the pressure monitored while the fluid within the formation equilibrates. Pressure buildup analysis describes the build up in well bore pressure with time after a well . In humiditydried cores. that can be achieved in a core plug by displacing the water by oil or gas. and the difference is reduced. The term is somewhat imprecise because the irreducible water saturation is dependent on the final drive pressure (when flowing oil or gas) or the maximum speed of rotation (in a centrifuge). 1. Effective porosity on dried core samples is therefore greater than effective porosity from log analysis. In these techniques. Drying removes most of the clay-bound water. Swi. or spinning it in a centrifuge to displace the water with oil or gas. In most well tests. in which the clay-bound water is considered immobile and hence ineffective. effective porosity means the total porosity less the clay-bound water. It is the porosity measured by most core analysis techniques that do not involve disaggregating the sample.pores in a unit volume of rock. In log interpretation. Effective porosity in this sense is the total porosity less the isolated porosity.5 Connate water saturation and irreducible oil saturation The lowest water saturation. a limited amount of fluid is allowed to flow from the formation being tested and the pressure at the formation monitored over time. being included in the effective porosity. the porosity is usually measured on totally dried core samples. In some usage. The analysis of these pressure changes can provide information on the size and shape of the formation as well as its ability to produce fluids. The related term connate water saturation is the lowest water saturation found in situ.7 Pressure built up test The use of pressure buildup data has provided the reservoir engineer with one more useful tool in the determination of reservoir behavior. the capillary-bound water is not considered part of the effective porosity. Effective porosity is measured in volume/volume. 1. The state is usually achieved by flowing oil or gas through a water-saturated sample. percent or porosity units. Isolated porosity is rare in such formations and is ignored. especially those associated with small variations in the volume of fluid. 1. and close to the total porosity from log analysis. Then.6 Pressure transient analysis The analysis of pressure changes over time.

either from startup or long enough to establish a stabilized pressure distribution. Stabilizing the well at a constant rate before testing is an important part of a pressure buildup test. Because the buildup in well bore pressure will generally follow some definite trend. The general formulas used in analyzing pressure buildup data come from a solution of the diffusivity equation. One of the principal objectives of this analysis is to determine the static reservoir pressure without waiting weeks or months for the pressure in the entire reservoir to stabilize. The resulting pressure buildup curve is analyzed for reservoir properties and well bore condition.has been shut in. In pressure buildup and draw down analyses. fluid and flow behavior. it has been possible to extend the pressure buildup analysis to determine: • Effective reservoir permeability • Extent of permeability damage around the well bore • Presence of faults and to some degree the distance to the faults • Any interference between producing wells • Limits of the reservoir where there is not a strong water drive or where the aquifer is no larger than the hydrocarbon reservoir Certainly all of this information will probably not be available from any given analysis. and the degree of usefulness or any of this information will depend on the experience in the area and the amount of other information available for correlation purposes. The most common and the simplest analysis techniques require that the well produce at a constant rate. If stabilization is overlooked or is impossible. . standard data analysis techniques may provide erroneous information about the formation. the following assumptions. with regard to the reservoir. are usually made: Reservoir • Homogeneous • Isotropic • Horizontal of uniform thickness Fluid: • Single phase • Slightly compressible Flow: • Laminar flow • No gravity effects Pressure buildup testing requires shutting in a producing well. The pressure is measured immediately before shut-in and is recorded as a function of time during the shut-in period.

the time for the onset of pseudo steady. the pressure decline throughout the reservoir becomes a linear function of time with a proportionality constant that is directly related to the reservoir volume THE FEASIBILITY OF THE TEST Since the test must satisfy certain strict design criteria in order to be valid. To have an idea about the reservoir properties. the permeability is low or both. while such data is readily available and relatively easy to use. it only reflects the reservoir at or near the well bore. The test rate should not result in a pressure drawdown that would cause free-gas saturation. Many such post-discovery decisions are made on the basis of core and log data. and it is the reservoir limit test that has been specifically designed with this in mind. the following must be considered to determine whether or not the test would be feasible in a given reservoir. The production rate must be sufficient to cause a discernible pressure drop. in addition. The rate should be held constant during the test. since this could complicate interpretation of the test results. On the basis of this shape. In some cases. Such tests would provide some of the data required for design calculations and. The latter is very important especially when there is significant well bore damage. The common practice in test-design calculations has been to assume that the reservoir is a closed square except where geology in the area suggests otherwise. help to assess the potential of the well. the testing time would become impractically long. particularly where the reservoir is large. The producing time must exceed the time required for the onset of pseudo steady-state flow in the reservoir. The presence of an external drive makes it impractical to conduct a reservoir limit test. This may be difficult to achieve in a prolonged test. and assuming an area equivalent to one or two drilling spacing units. Hence the need exists for surveying a large portion of the reservoir. However.state flow may be estimated .THE NEED FOR RESERVOIR LIMIT TESTS A reservoir limit test is a drawdown test to determine the pore volume connected to a well. Knowledge of the pore volume connected to a discovery well is vital in determining whether or not to develop a pool. thus usually represents only a small part of the reservoir. it is generally good practice to run a short transient test on the well soon after completion. THE NATURE OF THE TEST The test requires that a well that has been shut in to stabilize the reservoir pressure be produced at a constant rate for a period long enough for the onset of a pseudo steady-state flow regime in the reservoir At pseudo steady state. Test-Design Calculations Test-design calculations are made to estimate a range of pressure responses based on a range of possible reservoir properties. and since the pressure response may render achievement of those criteria impractical. This may be difficult to achieve in a low-productivity well.

. In some cases. the greater the overpressure/under compaction the higher the drillability/penetration rate and this proportionality should allow the pore pressure to be quantified. such as near the shoreline. source explosives can be rammed into the unconsolidated sediments of transition zone environments rather than drilling more costly shot holes. 1. marshes and lagoons. the reservoir limit test should be replaced by the so-called "economic limits test". In theory. On drilling into a transition zone where pore pressure gradient is increasing. but instead might be tilted or irregular. or both. which is run to estimate a minimum oil in place using the early-time pressure data.If the estimated time is so long as to result in poor economics. 1. Although oil and water are immiscible. Likewise. This type of test is mandatory where the reservoir is so large as to result in flaring of significant volumes of solution gas during the test.8 Oil water contact A bounding surface in a reservoir above which predominantly oil occurs and below which predominantly water occurs. hydrophones can be placed by ramming to couple the receiver to the Earth better and to save time and money during survey acquisition.9 Transition zone An area in which water is too shallow for acquisition of marine seismic data with towed streamers. The oil-water contact is not always a flat horizontal surface. the contact between oil and water is commonly a transition zone and there is usually irreducible water adsorbed by the grains in the rock and immovable oil that cannot be produced. operational problems. the decrease in bottom hole differential pressure results in an increase in penetration rate thus deviating from the compaction trend established in the normally pressured sequences above.

. such as complex carbonate rich lithologies or where PDC bits are used. This dimensionless number is plotted every metre or 5 feet intervals in shale. FBG = normal formation balance gradient and ECD = equivalent circulating density. any changes in drilling parameters are also likely to effect penetration rate therefore it is necessary to "normalise" penetration rate for such changes. The ratio method can be used to calculate the pore pressure by dividing the Dxc value on the normal compaction trend by the observed Dxc value at the depth of interest and multiplying it by the normal formation balance gradient. Where: R = penetration rate (ft/hr). Logarithmic or semi-logarithmic scale plots will in consolidated sediments produce a straight line compaction trend. N = rotation speed (rpm).However. other normalizing equations have been developed. It is important to remember that the Dxc was designed to be used for vertical holes drilled through transition zones of undercompacted clays using roller cone bits.66 ppg). which offshore is usually taken to be that of seawater (1. The most widely used equation to accomplish this normalisation is the "corrected drilling exponent" or Dxc . W = weight on bit (klbs). On entering the transition zone Dxc points plotted will move to the left of the normal compaction trend as the drillability of the shale increases.04 g/cc or 8. In other situations. B = hole diameter (ins).

83 10 a .gas solubility at bubble point (scf/stb) Sg .Reservoir temperature (deg.0.F) Assumptions Standing correlation equation for Bubble Point pressure 2. For light oils and rich gas condensates the ultimate GOR of export streams is .2 Gas oil ratio When oil is brought to surface conditions it is usual for some natural gas to come out of solution.Bubble Point Pressure (psi) Rs . A point to check is whether the volume of oil is measured before or after the gas comes out of solution. The gas/oil ratio (GOR) is the ratio of the volume of gas that comes out of solution.0125 Sapi Pb .2[(Rs/Sg) 0.1 Bubble point pressure The pressure above which the fluid essentially remains in the liquid phase and all volatile components are dissolved in the liquid.Specific Gravity of Gas under surface conditions T .4 a = 0.1. since the oil volume will shrink when the gas comes out. to the volume of oil at standard conditions. Equations Standing Correlation o o o o o o Pb = 18. In fact gas dissolution and oil volume shrinkage will happen at many stages during the path of the hydrocarbon stream from reservoir through the well bore and processing plant to export.00091 (T) .Unit-2 Gas liquid equilibria 2.

3 Formation volume factor of oil & gas Oil and dissolved gas volume at reservoir conditions divided by oil volume at standard conditions. The GOR is usually measured in cubic feet of gas per barrel of oil or condensate. If the GOR is greater than 10. This factor is used to convert surface measured volumes to reservoir conditions. Since most measurements of oil and gas production are made at the surface. then the field is generally described as an oil well. . Reported GORs may be calculated from export volumes which may not be at standard conditions. just as oil formation volume factors are used to convert surface measured oil volumes to reservoir volumes. Gas formation volume factor Gas volume at reservoir conditions divided by gas volume at standard conditions. Oil formation volume factor Oil formation volume factors are almost always greater than 1.strongly influenced by the efficiency with which the processing plant strips liquids from the gas phase. volume factors are needed to convert measured surface volumes to reservoir conditions. and since the fluid flow takes place in the formation. The Oil Formation Volume Factor is a measure of the reduction in the volume of crude oil as it is produced.000 cf/bbl. 2. If less than 10.000.0 because the oil in the formation usually contains dissolved gas that comes out of solution in the well bore with dropping pressure. then the field is usually described as a gas well.

5+ 1.972 + 0.Above Bubble Point Pressure Bo = Bob exp[co (pb .Equations General Equation o o o o o o o o o o o o o o o o o Bo = Vor/Vop Bo .000147 F 1.Gas Gravity So .Volume of oil + dissolved volatiles at reservoir conditions (rb) Vop .Bubble Point Pressure (psi) P . the more impact separator conditions and shrinkage .Oil Gravity T .25 T Rso .p)] Bob = Formation volume factor at Bubble Point (rb/stb) co .Temperature (deg.4 Shrinkage factor of reservoir oil The shrinkage factor of crude oil from separator conditions varies.Volume of produced oil under stock tank conditions (stb) Standing Correlation .Below Bubble Point Pressure Bo = 0.F) Correlations . The more volatile the separator liquid phase.175 F = Rso (Sg/So) 0.Formation Volume Factor (rb/stb) Vor .Oil Compressibility (1/psi) Pb .Solution GOR (scf/stb) Sg .Reservoir Pressure (psi) Assumptions o Single Phase 2. dependant upon the pressure and temperature of the separator and the individual fluid properties.

There are a couple of ways to take this into account. fourth stage separator at 120 psia and 105°F. Utilizing the composition and the results from the separator test. Shrinkage value will be very dependant upon the separator pressure and temperature and will change as these values vary. and stock tank at 15 psia and 85°F. an equation-of-state (EOS) computer model is "tuned" to the measured shrinkage data. will require laboratory analysis for each stream. The data can establish a table or equation to yield shrinkage value as a function of separator conditions. This involves simulating shrinkage in the laboratory at each stage of separation (pressure and temperature) from primary separator to stock tank conditions. second stage separator at 750 psia and 85°F. This tuned model can then be used to predict shrinkage values at different separator pressure or temperature conditions with the resulting data well within a 5% error band. This approach can be used with the equation-of-state computer model instead of physically performing the . third stage separator at 340 psia and 75°F. Measuring the Crude Oil Shrinkage Factor Good shrinkage measurement is best approached by collecting the primary separator liquid and performing a separator test on it. Alternatively. Different liquid streams (with different compositions). a series or matrix of separator tests at separator conditions covering the anticipated spread of pressures and temperatures can be performed in the laboratory. The sample is then compositionally analyzed and subjected to a separator test. Typically. duplicating standard separator conditions from primary separator through stock tank conditions. Examples are of the primary separator at 1100 psia and 100°F. It is done by collecting a separator liquid sample at the maximum pressure a separator will be operated (preferably at a lowest temperature) to allow the maximum amount of gas in solution. These tests generate a matrix of shrinkage values covering the anticipated range. The only problem with this approach is if separator conditions change so will the shrinkage. only primary separator conditions are varied.will be.

The shrinkage value is simply the non-pressurized volume divided by the volume of the pressurized vessel (dead oil divided by live oil volumes). typically there will be several downstream separators in line from the primary separator. Shrinkage tester . there will be less shrinkage with more stages of separation as the oil pressure is reduced to atmospheric pressure. Not taking temperature into account. Measuring Shrinkage Factor at the Well site The "shrinkage tester" suggested for well site installation provides a rough shrinkage value. Petroleum table values can correct the non-pressurized volume to standard conditions (15°C or 60°F) although this is often not done. This method does not take into account changes in shrinkage value caused by multiple pressure/temperature changes of the liquid as produced by secondary and tertiary separators. The volume of this vessel is known and calibrated. however. The vessel is then drained into a nonpressurized graduated container while the entrained gas is allowed to escape. one that probably isn’t is sufficient if your system is a 30°API oil and separator conditions are not subject to significant change.matrix of separator tests — it is important to perform one experimentally to tune the EOS. Each one of these separators will have an impact on the shrinkage value and this is part of the reason they are in place. On an offshore platform and all the way to the shore base. Typically such equipment employ a vessel filled with separator liquid at pressure (although not necessarily at temperature). adding yet another error.

this behavior follows the differential liberation sequence. the gas compressibility factor. and the gas specific gravity • Density of the remaining oil as a function of pressure The differential liberation test is considered to better describe the separation process taking place in the reservoir and is also considered to simulate the flowing behavior of hydrocarbon systems at conditions above the critical gas saturation. This type of liberation is characterized by a varying composition of the total hydrocarbon system. in general. and before establishing equilibrium with the liquid phase. the liberated gas begins to flow. The test is carried out on reservoir oil samples and involves charging a visual PVT cell with a liquid sample at the bubble-point pressure and . the solution gas that is liberated from an oil sample during a decline in pressure is continuously removed from contact with the oil. leaving behind the oil that originally contained it. higher mobility than oils.2. This is attributed to the fact that gases have. As the saturation of the liberated gas reaches the critical gas saturation. Consequently. The experimental data obtained from the test include: • Amount of gas in solution as a function of pressure • The shrinkage in the oil volume as a function of pressure • Properties of the evolved gas including the composition of the liberated gas.5 Differential gas liberation process In the differential liberation process.

at reservoir temperature. The above procedure is continued to atmospheric pressure where the volume of the residual (remaining) oil is measured and converted to a volume at 60°F. As shown schematically in above Figure. or: The differential solution gas-oil ratio Rsd is also calculated by dividing the volume of gas in solution by the residual oil volume. The volume of oil remaining VL is also measured at each pressure level. Relative total volume Btd from differential liberation as calculated from the following expression: Btd = Bod + (Rsdb . The differential oil formation volume factors Bod (commonly called the relative oil volume factors) at all the various pressure levels are calculated by dividing the recorded oil volumes VL by the volume of residual oil Vsc. usually 10 to 15 pressure levels. Vsc. bbl/scf The gas deviation z-factor of the liberated (removed) solution gas at the specific pressure and these values are calculated from the recorded gas volume measurements as follows: . and all the liberated gas is removed and its volume is measured at standard conditions. the pressure is reduced in steps. It should be noted that the remaining oil is subjected to continual compositional changes as it becomes progressively richer in the heavier components.Rsd) Bg Where Btd = relative total volume. bbl/STB Bg = gas formation volume factor.

In this the oil and gas are kept in the vessel sufficiently long to approximate equilibrium for the pressure and temperature in the vessel. In the flash gas liberation process. In addition it is possible to measure the volume of liquid and gas if a windowed cell is used. This is not commonly done for oil and is used frequently for gas condensates. . It is felt that flash liberation most nearly approximates the situation that occurs in field separators. this type of liberation of gas is carried out in a mercury cell or in a small-scale separator at surface temperature. all of the gas evolved from a reduction in pressure remains in contact with the liquid phase. Another method is a lab test called a constant composition expansion or the constant mass expansion is available. A typical example is the surface separator.Where V = volume of the liberated gas in the PVT cell at p and T Vsc = volume of the removed gas at standard condition Flash gas liberation process Flash or equilibrium separation is the condition that occurs when the fluid's pressure is radically and suddenly changed and the whole system immediately separates into two phases. In the laboratory.

For most black oils.Schematic of (a) flash liberation and (b) differential liberation. temperature) for maximizing stocktank-oil volume. There is also an optimum set of separator conditions (pressure. In the case of low shrinkage oil (c). differential liberation results in less shrinkage. High shrinkage oil (d) is affected differently. . The degree to which oil volume is effected by the separation process is dependent on the composition of the oil. The composition of the reservoir fluid will determine which of the two processes results in a greater degree of oil shrinkage. Multistage separation is an attempt to approach differential separation at the surface in order to achieve a larger volume of oil in the stock tank per barrel produced. differential liberation provides for a larger volume of stock tank oil.

It is called retrograde because some of the gas condenses into a liquid under isothermal conditions instead of expanding or vaporizing when pressure is decreased.6 Retrograde condensation in gas reservoir The formation of liquid hydrocarbons in a gas reservoir as the pressure in the reservoir decreases below dew point pressure during production. .2.

on the order of 10-15 % of the original oil in place (OOIP). there will be free gas as bubbles within the oil phase in reservoir. gas comes out of the solution and displaces oil from the reservoir to the producing wells. This extra gas. These kinds of reservoirs are called a gas cap drive reservoir. Solution Gas Drive Reservoirs When a newly discovered reservoir is below the bubble point pressure. These kinds of reservoirs are called as solution gas drive reservoirs. Solution gas drive reservoirs are usually good candidates fro water-flooding Gas Cap Drive Reservoirs Sometimes. the type of driving energy is different. As oil production causes a . Depending on the original characteristics of hydrocarbon reservoirs. so there is more gas in the reservoir than the oilcan retain in solution. In gas cap drive reservoirs. Crude oil under high pressure may contain large amounts of dissolved gas. the pressure in the reservoir is below the bubble point initially. wells are drilled into the crude oil producing layer of the formation. the rock and fluid properties and the geological structure of the reservoir.2. Recoveries are low. The hydrocarbon fluids are under pressure because of their depth. because of density difference. Usually some of this required energy is supplied by nature. When the reservoir pressure is reduced as fluids are withdrawn. The efficiency of solution gas drive depends on the amount of gas in solution. accumulates at the top pf the reservoir and forms a cap. Recovery is low. The gas and water in petroleum reservoirs under pressure are the two main sources that help move the oil to the well bore and sometimes up to the surface. because the gas phase is more mobile than the oil phase in the reservoir. The reservoir pressure decreases as Production goes on and this causes emerging and expansion of gas bubbles creating extra Energy in the reservoir.7 Reservoir drive mechanisms Producing oil and gas needs energy.

continuously fed by incoming water. Expansion the gas cap is limited by the desired pressure level in the reservoir and by gas production after gas comes into production wells. the gas in gas cap expands and pushes oil into the well bores. Schematic of a Typical Gas Cap Reservoir Water Drive Reservoirs Most oil or gas reservoirs have water aquifers. then this bottom water will expand as pressure of the oil/gas zone is reduced because of production causing an extra driving energy. Recovery efficiencies of 70 to 80 % of the original oil in place (OOIP) are possible in some water drive reservoirs. . The expanding water also moves and displaces oil or gas in an upward direction from lower parts of the reservoir. When this water aquifer is an active one. This kind of reservoir is called water drive reservoirs. so the pore spaces vacated by oil or gas produced are filled by water.reduction in pressure. The oil and gas are progressively pushed towards the well bore.

Schematic of a Typical Water Drive Reservoir Gravity Drainage Reservoirs Gravity drainage may be a primary producing mechanism in thick reservoirs that have a good vertical communication or in steeply dipping reservoirs. Reservoir fluid analysis. Gas migration is fast relative to oil drainage so those oil rates are controlled by the rate of oil drainage. Pressure declines rapidly as fluids are withdrawn from the undersaturated reservoir until the bubble point is reached. solution gas drive becomes the source of energy for fluid displacement. PVT behavior and the . Gravity drainage is a slow process because gas must migrate up structure or to the top of the formation to fill the space formerly occupied by oil. Under-saturated Reservoirs A crude oil is under-saturated when it contains less gas than is required to saturate the oil at the pressure and temperature of the reservoir. Then. When the oil is highly undersaturated much of the reservoir energy is stored in the form of fluid and rock compressibility.

oil. 2. Irrespective of the proportions of these fluids present in a reservoir. Phase diagrams are graphical representations that relate the properties of a fluid system. temperature. .8 PVT properties of reservoir fluids Fluids exist in reservoirs as mixtures of gas.pressure data will identify an under-saturated reservoir. and water. oil. Phase Diagrams The PVT properties of reservoir fluids are introduced by reviewing the basic concepts of phase diagrams. Those reservoirs are good candidates for water injection to maintain a high pressure to increase oil recovery. density) are independent of the extent of the system. volume. obtaining fluid samples and studying their phase behavior in a laboratory are necessary for establishing reservoir type. or mixtures of gas. pressure-volume (P-V). heat) depend on the extent of the system. Some reservoirs may contain only gas and water. It is one of the essential functions of the engineers working on new or existing reservoirs as an integral part of a comprehensive data collection program. The basic concepts of phase behavior and phase diagrams are discussed in this book by the use of P-T diagrams. devising strategies for reservoir management. Intensive properties (pressure. and temperature-volume (T-V) relationships. and water. and estimating expected hydrocarbon recovery. only oil and water. Common forms of phase diagrams show pressure-temperature (P-T). The importance of collecting representative reservoir fluid samples (preferably early in the life of the reservoir) and having the samples analyzed in a reputable laboratory can not be over emphasized. The properties used in the representation could be intensive or extensive properties. Extensive properties (mass.

The asterisk in the P-T diagram below identifies a pressure-temperature combination that is known as the triple point.PVT STUDY: (i) PV Diagram: A pressure volume diagram (or P-V diagram. That is where the substance can exist as a solid. a liquid. . or volume-pressure loop) is used to describe a thermal cycle involving the following two variables:   Volume (on the X axis) Pressure (on the Y axis) (ii) PT Diagram: A common graphic used to illustrate the relationship of substances in their phase states as a function of pressure and temperature is the P-T diagram. It is also referred to as a phase state diagram or a phase change diagram. or a vapor.

(iii) Bubble point: When heating a liquid consisting of two or more components.PT diagram for ultramafic rocks. the bubble point (along with the dew point) at different compositions are useful data when designing distillation systems. (iv) Dew Point: The dew point is the temperature at which a given parcel of humid air must be cooled. for water vapor to condense into water. The condensed water is called dew. The dew point is a saturation temperature. . Given that vapor will probably have a different composition than the liquid. For single component mixtures the bubble point and the dew point are the same and are referred to as the boiling point. the bubble point is the point where first bubble of vapor is formed. at constant barometric pressure.

Relative humidity of 100% indicates the dew point is equal to the current temperature and the air is maximally saturated with water. The most commonly accepted definitions of these are based on those approved by the Society of Petroleum Engineers (SPE) and the World Petroleum Council (WPC) in 1997. relative humidity will decrease.The dew point is associated with relative humidity. When the dew point remains constant and temperature increases. Unproven reserves can further be divided into two subcategories—"probable" and "possible"—to indicate the relative degree of uncertainty about their existence. A high relative humidity indicates that the dew point is closer to the current air temperature. Unit-3 Methods of reservoir estimation Reserves and its classification Reserves are those quantities of petroleum claimed to be commercially recoverable by application of development projects to known accumulations under defined conditions. . The relative degree of uncertainty can be expressed by dividing reserves into two principal classifications—"proven" (or "proved") and "unproven" (or "unproved"). depending on the amount of reliable geologic and engineering data available and the interpretation of those data.] Reserves must satisfy four criteria: They must be:     discovered through one or more exploratory wells recoverable using existing technology commercially viable remaining in the ground All reserve estimates involve uncertainty.

S. or from additional reservoirs where minimal additional investment (operating expense) is required.g. stock exchanges must substantiate their claims. having a 90% certainty of being produced). They are sub-classified as probable and possible. PD reserves are reserves that can be produced with existing wells and perforations. PUD reserves require additional capital investment (e. Probable reserves are attributed to known accumulations and claim a 50% confidence level of recovery. Proved reserves are the only type the U. with existing technology. but technical. Securities and Exchange Commission allows oil companies to report to investors. Proven reserves are further subdivided into "proven developed" (PD) and "proven undeveloped" (PUD)..Proven reserves Proven reserves are those reserves claimed to have a reasonable certainty (normally at least 90% confidence) of being recoverable under existing economic and political conditions. Companies listed on U. contractual..e.e. Industry specialists refer to them as P50 (i. Proven reserves are also known in the industry as 1P. drilling new wells) to bring the oil to the surface. Unproven reserves may be used internally by oil companies and government agencies for future planning purposes but are not routinely compiled. Industry specialists refer to this as P90 (i. or regulatory uncertainties preclude such reserves being classified as proven. .. Unproven reserves Unproven reserves are based on geological and/or engineering data similar to that used in estimates of proven reserves. but many governments and national oil companies do not disclose verifying data to support their claims.S.

Contingent resources may . of which 1. Contingent resources are those quantities of petroleum estimated. but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. approximately 4. but adds categories for contingent resources and prospective resources. According to the United States Energy Information Administration.000. as of a given date. World Petroleum Council (WPC).4 billion is government-controlled. reserves not producible at commercial rates. This term is often used for reserves which are claimed to have at least a 10% certainty of being produced (P10).having a 50% certainty of being produced).1 billion barrels (650.000 m3) of oil are held in strategic reserves. American Association of Petroleum Geologists (AAPG). These reserves are generally not counted when computing a nation's oil reserves. uncertainty due to reserve infill (seepage from adjacent areas) and projected reserves based on future recovery methods. A more sophisticated system of evaluating petroleum accumulations was adopted in 2007 by the Society of Petroleum Engineers (SPE). Possible reserves are attributed to known accumulations that have a less likely chance of being recovered than probable reserves. They are referred to in the industry as 3P (proven plus probable plus possible) Strategic petroleum reserves Many countries maintain government-controlled oil reserves for both economic and national security reasons. to be potentially recoverable from known accumulations. and Society of Petroleum Evaluation Engineers (SPEE). Reasons for classifying reserves as possible include varying interpretations of geology. These reserves are also referred to in the industry as 2P (proven plus probable). It incorporates the 1997 definitions for reserves.

and oil shale deposits.. for example. and transport. Prospective resources are those quantities of petroleum estimated.g. can be recovered at a given market price. bitumen upgraders). Examples include extra heavy oil. including a return to capital. steam and/or solvents are used to mobilize bitumen for in-situ recovery. in which the petroleum is recovered through well bores and typically requires minimal processing prior to sale. The total amount of unconventional oil resources in the world considerably exceeds the amount of conventional oil reserves. development. projects for which there are currently no viable markets. The United States Geological Survey uses the terms technically and economically recoverable resources when making its petroleum resource assessments. or where commercial recovery is dependent on technology under development. . Prospective resources have both an associated chance of discovery and a chance of development. natural bitumen. production. unconventional resources require specialized extraction technology to produce. as of a given date. Technically recoverable resources represent that proportion of assessed in-place petroleum that may be recoverable using current recovery technology. Unlike conventional resources. For example. but is much more difficult and expensive to develop.include. Unconventional resources exist in petroleum accumulations that are pervasive throughout a large area. the extracted petroleum may require significant processing prior to sale (e. without regard to cost. to be potentially recoverable from undiscovered accumulations by application of future development projects. Economically recoverable resources are technically recoverable petroleum for which the costs of discovery. or where evaluation of the accumulation is insufficient to clearly assess commerciality. Moreover.

Volumetric estimation • Most commonly used after discovery and early stage of production. • Standard reserve equation with appropriate choice of parameter:  Area  Reservoir parameter (Area, Thickness, Porosity, water saturation, formation volume factor).  Recovery factor. Volumetric Estimate of hydrocarbon in place consists of the following steps: – Determination of rock volume (hydrocarbon saturated portion) from area and thickness. – Determination of average porosity. – Determination of water saturation to obtain hydrocarbon saturation. – Volume correction of hydrocarbon at atmospheric pressure and temperature. Material Balance Method Can be applied after obtaining certain amount of production data e.g. – Production Volume. – Reservoir Pressure and Temperature. – Fluid analysis data. – Log Data, Core data. – Drive Mechanism. Decline Curve Analysis  Analysis of production decline curve can provide estimation of three important items.  Remaining Oil and gas reserves.  Future expected production rate.  Remaining productive life of well or reservoir.

Additionally explanation of any anomalies that appear on the graph is useful. Analysis is only valid provided that the well (s) is (are) not altered and the drainage is constant. Reservoir simulation method Reservoir simulation models are used by oil and gas companies in the development of new fields. Also, models are used in developed fields where production forecasts are needed to help make investment decisions. As building and maintaining a robust, reliable model of a field is often timeconsuming and expensive; models are typically only constructed where large investment decisions are at stake. Improvements in simulation software have lowered the time to develop a model. Also, models can be run on personal computers rather than more expensive workstations. For new fields, models may help development by identifying the number of wells required, the optimal completion of wells, the present and future needs for artificial lift, and the expected production of oil, water and gas. For ongoing reservoir management, models may help in improved oil recovery by hydraulic fracturing. Highly deviated or horizontal wells can also be represented. Specialized software may be used in the design of hydraulic fracturing, and then the improvements in productivity can be included in the field model. Also, future improvement in oil recovery with pressure maintenance by re-injection of produced gas or by water injection into an aquifer can be evaluated. Water flooding resulting in the improved displacement of oil is commonly evaluated using reservoir simulation. The application of enhanced oil recovery (EOR) processes requires that the field possesses the necessary characteristics to make application successful. Model studies can assist in this evaluation. EOR processes include miscible displacement by natural gas, CO2 or nitrogen and chemical flooding

(polymer, alkaline, surfactant, or a combination of these). Special features in simulation software are needed to represent these processes. In some miscible applications, the "smearing" of the flood front, also called numerical dispersion, may be a problem. Reservoir simulation is used extensively to identify opportunities to increase oil production in heavy oil deposits. Oil recovery is improved by lowering the oil viscosity by injecting steam or hot water. Typical processes are steam soaks (steam is injected, then oil produced from the same well) and steam flooding (separate steam injectors and oil producers). These processes require simulators with special features to account for heat transfer to the fluids present and the formation, the subsequent property changes and heat losses outside of the formation. A recent application of reservoir simulation is the modeling of coal bed methane (CBM) production. This application requires a specialized CBM simulator. In addition to the normal fractured (fissured) formation data, CBM simulation requires gas content data values at initial pressure, sorption isotherms, diffusion coefficient, and parameters to estimate the changes in absolute permeability as a function of pore-pressure depletion and gas desorption. Fundamentals Traditional finite difference simulators dominate both theoretical and practical work in reservoir simulation. Conventional FD simulation is underpinned by three physical concepts: conservation of mass, isothermal fluid phase behavior, and the Darcy approximation of fluid flow through porous media. Thermal simulators (most commonly used for heavy oil applications) add conservation of energy to this list, allowing temperatures to change within the reservoirs

finite difference models permit discredit of the reservoir using both structured and more complex unstructured grids to accurately represent the geometry of the reservoir. The simulator then uses the fitted EOS equation to dynamically track the movement of both phases and components in field. Theoretically. Local grid refinements (a finer grid embedded inside of a coarse grid) are also a feature provided by many simulators to more accurately represent the near wellbore multiphase flow affects. such as cross-sections and 2-D radial grid models. Natural fracture simulation (known as dual-porosity and dualpermeability) is an advanced feature which model hydrocarbons in tight matrix blocks. water and gas) and pressure of each phase in each cell at each time step. as a mixture of components. The simulation model computes the saturation change of three phases (oil. This "refined meshing" near wellbores is extremely important when analyzing issues such as water and gas coning in reservoirs. inter-cell flow transmissibility’s must be computed for non-adjacent layers outside of conventional neighbor-to-neighbor connections. In these models. 2-D approximations are also used in various conceptual models. where the PVT properties of oil and gas phases have been fitted to an equation of state (EOS). As a . A black oil simulator does not consider changes in composition of the hydrocarbons as the field is produced. The compositional model is a more complex model.Numerical techniques and approaches that is common in modern simulators:      Most modern FD simulation programs allow for construction of 3-D representations for use in either full-field or single-well models. Representation of faults and their transmissibility are advanced features provided in many simulators.

If pressures increase as a result of water or gas injection. Commonly. producing water cuts or water-oil ratios and gas-oil ratios are matched. In recent years optimisation tools such as MEPO has helped to accelerate this process. the gas is re-dissolved into the oil phase. is a large and attractive target for EOR methods. nearly two-thirds of the initial resource. Enhanced / Improved Oil Recovery Methods Enhanced oil recovery (EOR) refers to the process of producing liquid hydrocarbons by methods other than the conventional use of reservoir energy and reservoir re-pressurizing schemes with gas or water. The remaining oil. as well as improve the quality of the match obtained. usually requires "history matching" where historical field production and pressures are compared to calculated values. conventional methods of production produce about one-third of the initial oil in place in a given reservoir.result of declining pressure as in a reservoir depletion study. Formula for estimation of oil reserve OIIP = Oil initially in Place OIIP = VR x Ф x 1/Bo x (1-Sw) VR = Rock Volume (Area x Average Thickness) Ф = Porosity Bo = Formation Volume Factor Sw = Water saturation . gas will be liberated from the oil. The model's parameters are adjusted until a reasonable match is achieved on a field basis and usually for all wells. On the average. The next few sections provide an introduction to this important topic in reservoir engineering. A simulation project of a developed field.

The mobilization of the residual oil saturation in a water-wet system requires that the discontinuous globules be connected to form a continuous flow channel that leads to a producing well. the brine has entered a sufficient number of pore channels to shut off the oil flow. In an oil-wet porous medium. the oil saturation has been decreased and exists partly as a continuous phase in some pore channels but as discontinuous droplets in other channels. The mobilization of oil is governed by the viscous forces (pressure gradients) and the inter-facial tension forces that exist in the sand grain-oilwater system. At a time intermediate during the flood. this film may occupy the entire void space. the film of oil around the sand grains must be displaced to large pore channels and be connected in a continuous phase before it can be mobilized. when the oil has been reduced to residual oil saturation. Early in the water flood. At residual oil saturation. the brine forms continuous flow paths through the center portions of some of the pore channels. The residual oil exists as a film around the sand grains. The brine enters more and more of the pore channels as the water flood progresses.Unit-4 Enhanced/improved oil recovery methods Mobilization of Residual Oil During the early stages of a water flood in a water-wet reservoir system. . In the smaller flow channels. the brine exists as a film around the sand grains and the oil fills the remaining pore space. the oil exists primarily as a discontinuous phase of droplets or globules that have been isolated and trapped by the displacing brine. The water flooding of oil in an oil-wet system yields a different fluid distribution at. At the end of the flood.

There are. the displacing fluid and residual oil mix to form one phase. inert fluids. One is referred to as the single-contact miscible process and involves such injection fluids as liquefied petroleum gases (LPG) and alcohols. or dynamic. The injected fluids in this case are usually methane. If the interfacial tension is zero. rock.Miscible Injection Processes It was noted that microscopic displacement efficiency is largely a function of interfacial forces acting among the oil. this fraction of alkanes has the unique ability of behaving like a liquid or a gas at many reservoir conditions. the capillary number becomes infinite and the microscopic displacement efficiency is maximized. that is. A miscible process is one in which the interfacial tension is zero. two types of miscible processes. The injected fluids are miscible with residual oil immediately on contact. or an enriched methane gas supplemented with a CrQi fraction. thereby . the oil droplets could be deformed so that they would squeeze through the pore constrictions and combine with other droplets to yield a continuous oil phase. in general. and displacing fluid. If the interfacial tension between the trapped oil and displacing fluid could be lowered to 10~2 to 10"3 dyne/cm. The injected fluid and oil are usually not miscible on first contact but rely on a process of chemical exchange of the intermediate hydrocarbons between phases to achieve miscibility. The second type is the multiple-contact. miscible process. Chemical Injection Processes Chemical flooding relies on the addition of one or more chemical compounds to an injected fluid either to reduce the interfacial tension between the reservoir oil and injected fluid or to improve the sweep efficiency of the injected fluid by making it more viscous.

The addition of molecules of large molecular weight (i. micellar-polymer flooding and alkaline flooding. The improved mobility ratio leads to better vertical and areal sweep efficiencies and thus higher oil recoveries. Polymers are usually added to the water in concentrations ranging from 250 to 2000 parts per million (ppm). polymers) to injected water can often increase the effectiveness of a conventional waterflood. make use of chemicals that reduce the interfacial tension between an oil and a displacing fluid.e. A surfactant is a surface-active agent that contains a hydrophobic ("dislikes" water) part to . in which a large macromolecule is used to increase the displacing fluid viscosity. The improvement in oil recovery when using polymers is a result of improved sweep efficiency over what is obtained during a conventional water-flood. the increased viscosity alters the mobility ratio between the injected fluid and the reservoir oil.improving the mobility ratio.. The first is polymer flooding. In this application. Polymers have also been used to alter gross permeability variations in some reservoirs. polymers form a gel-like material by cross-linking with other chemical species. A polymer solution is more viscous than a brine without polymer. The remaining two methods. The micellar-polymer process uses a surfactant to lower the interfacial tension between the injected fluid and the reservoir oil. The polymer gel sets up in high permeability streaks and diverts the flow of subsequently injected fluids to a different location. This process leads to improved sweep efficiency in the reservoir of the injected fluid. Typical oil recoveries from polymer flooding are in the range of 1 to 5% of the initial oil in place. Both mechanisms are designed to increase the capillary number. In a flooding application. It has been found that a polymer flood is more likely to be successful if it is started early in the producing life of the reservoir. Three general methods are used in chemical flooding technology.

The reduction of interfacial tension causes the microscopic displacement efficiency to increase. found in typical water flooding applications.0 weight % surfactant to water-oil systems. the oil viscosity will be reduced significantly and will flow much more easily to a producing well.1 to 5. When the formation of surfactant molecules occurs in situ. The same principles involved in washing soiled linen or greasy hands are used in "washing" residual oil off of rock formations. Interfacial tensions can be reduced from —30 dyne/cm. As the interfacial tension between an oil phase and a water phase is reduced. These types of oils are very thick and viscous and as a result do not migrate readily to producing wells. surfactant molecules are formed by chemical reactions between the alkaline solution and the oil. This suggests that if the temperature of a crude oil in the reservoir can be raised by 100 to 200°F over the normal reservoir temperature. lowgravity crude oils is usually a very small fraction of the initial oil in place. the interfacial tension between the brine and oil phases can be significantly reduced. Soaps and detergents used in the cleaning industry are examples of surfactants. thereby increasing oil recovery. Thermal Processes Primary and secondary production from reservoirs containing heavy. When an alkaline solution is mixed with certain crude oils. The reduction of interfacial tension results in a shifting of the relative permeability curves such that the oil will flow more readily at lower oil saturations. The temperature of a reservoir can be raised by injecting a hot fluid or by generating thermal energy in situ by . The surfactant migrates to the interface between the oil and water phases and helps make the two phases more miscible. It is not uncommon for viscosities of certain heavy crude to decrease by several orders of magnitude with an increase of temperature of 100 to 200T.the molecule and a hydrophilic ("likes" water) part. the capacity of the aqueous phase to displace the trapped oil phase from the pores of the rock matrix increases. to 10"4 dyne/cm with the addition of as little as 0.

such as formation rock and water. and water. begins with the injection of steam for a period of days to weeks. the thermal energy is used to heat the reservoir oil. Unfortunately. Once the oil viscosity is reduced by the increased temperature. the energy also heats the entire environment. The steam moves through the reservoir and comes in contact with cold oil. viscosity reduction of the crude oil. As the steam contacts the cold environment. . Three types of processes are generally used in the industry: (1) the continuous injection of hot fluids. changes in surface forces as the reservoir temperature increases. The length of the production period is dictated by the oil production rate. The cycle is repeated as many times as economically feasible. the oil can flow more readily to the producing wells. Hot water or steam can be injected as the hot fluid. it condenses. and the steam is allowed to soak the area around the injection well. The intermittent injection of steam.combusting the oil. These include thermal expansion of the crude oil. such as hot water or steam. A hot water bank is formed and acts as a water flood. (2) the intermittent injection of steam. Some energy is also lost to the under burden and overburden. Several mechanisms responsible for the production of oil from a steam injection process have been identified. pushing additional oil to the producing wells. referred to as steam cycling. The continuous injection of hot fluids is usually accomplished by injecting either hot water or steam and is much like a conventional water flood. This soak period is fairly short. rock. and steam distillation of the lighter portions of the crude oil. usually from one to five days. The oil production decreases with each new cycle. The well is then shut in. and (3) the injection of air or oxygen-enriched air to aid in the combustion of reservoir oil. When steam is injected into the formation. and it can last from several months to a year or more. referred to as the steam stimulation process or the cyclic steam process. The injection well is then placed on production.

using energy that otherwise would have been wasted. but the air stream is injected into a different well. it flashes to steam. The air is then "pushed" through the flame front as the flame front moves in the opposite direction. The flame front was then propagated through the reservoir. The injection of air or oxygen-enriched air is referred to as the in situ combustion process. In heavy oil reservoirs. To reduce the heat losses. a new technique called the forward wet combustion process was introduced. The crude oil was ignited down hole. The whole process would then revert to a forward combustion process. it was never successful. The steam moves through the . Large portions of heat energy were lost to the surroundings with this process. but when it was tried in the field on a pilot scale.Mechanisms of oil recovery that result from this process include (1) reduction of flow resistance near the wellbore by reducing the crude oil viscosity and (2) enhancement of the solution gas drive mechanism by decreasing the gas solubility in an oil as temperature increases. In reverse combustion. the oxygen stream is replaced with water. and then a stream of air or oxygen-enriched air was injected into the well where the combustion was originated. the oil would often selfignite. As the water comes in contact with the hot zone left by the combustion front. When oxygen was injected. When the reverse combustion process failed. This process begins as a forward dry combustion. the flame would shut off because there was no oxygen supply. the oil is ignited as in forward combustion. the steam stimulation process is often applied to develop injectivity around an injection well so that a continuous steam injection process can be conducted. In the field. Early attempts to apply the combustion process involved what is called the forward dry combustion process. Researchers found the process to work in the laboratory. a reverse combustion process was conceived. but once the flame front has been established.

STB ED = displacement efficiency EA = areal sweep efficiency EV = vertical sweep efficiency . the crude oil must contain enough heavy components to serve as the source of fuel for the combustion. Not all crude oils are amenable to the combustion process. For the combustion process to function properly. thermal methods had to be employed. The wet combustion process has become the primary method of conducting combustion processes. To produce more than 1 to 2% of the initial oil in place from a heavy oil reservoir. thermal methods were investigated much earlier than either miscible or chemical methods. OVERALL RECOVERY EFFICIENCY The overall recovery factor (efficiency) RF of any secondary or tertiary oil recovery method is the product of a combination of three individual efficiency factors as given by the following generalized expression: RF = ED EA EV In terms of cumulative oil production.reservoir and aids in the displacement of oil. As a result. as well as several technical reasons. Most of the oil that has been produced by EOR methods to date has been a result of applying thermal processes. STB NP = cumulative oil produced. There is a practical reason for this. and the resulting technology was developed much more rapidly. NP = NS ED EA EV Where RF = overall recovery factor NS = initial oil-in-place at the start of the flood. This usually requires an oil of low API gravity.

In general. ED will always be less than 1. The areal sweep efficiency EA is the fractional area of the pattern that is swept by the displacing fluid.0. The most important two types of heterogeneity . reservoir heterogeneity probably has more influence than any other factor on the performance of a secondary or tertiary injection project. The vertical sweep efficiency is primarily a function of:  Vertical heterogeneity  Degree of gravity segregation  Fluid motilities  Total volume injection Note that the product of EA EV is called the volumetric sweep efficiency and represents the overall fraction of the flood pattern that is contacted by the injected fluid. Because an immiscible gas injection or water flood will always leave behind some residual oil. The major factors determining areal sweep are: •Fluid mobilities •Pattern type •Areal heterogeneity •Total volume of fluid injected The vertical sweep efficiency EV is the fraction of the vertical section of the pay zone that is contacted by injected fluids.The displacement efficiency ED is the fraction of movable oil that has been displaced from the swept zone at any given time or pore volume injected.

logging. or particle segregation. and boundary conditions due to the presence of an aquifer or gas cap. Water injected into a stratified system will preferentially enter the layers of highest permeability and will move at a higher velocity. h. k. if the data are interpreted correctly.g. Operators spend millions of dollars coring. All three efficiency factors (i. a significant fraction of the less-permeable zones will remain unflooded. Areal heterogeneity includes areal variation in formation properties (e. A reservoir may exhibit many different layers in the vertical section that have highly contrasting properties. quite accurately. at the time of water breakthrough in higher-permeability zones. Swc)..e. and listing appraisal wells. EV. the areal sweep efficiency is to be regarded as the unknown in reservoir-development studies. the economic limit is often reached at an earlier time. This stratification can result from many factors. Therefore. change in depositional source.ϕ. all of which permits direct observation of vertical heterogeneity. EA and EV. any sealing nature of faults.affecting sweep efficiencies. of course. Consequently. ED. geometrical factors such as the position.. . Vertical heterogeneity is by far the most significant parameter influencing the vertical sweep and in particular its degree of variation in the vertical direction. such as attempting to locate faults from well testing analysis. it should be possible to quantify the vertical sweep. Although a flood will generally continue beyond breakthrough. Areally. Each of the three efficiency factors is discussed individually and methods of estimating these efficiencies are presented. matters are much more uncertain since methods of defining heterogeneity are indirect. including change in depositional environment. EA. and EV) are variables that increase during the flood and reach maximum values at the economic limit of the injection project. are the reservoir vertical heterogeneity and areal heterogeneity. Consequently.

geologists. One of the objectives of this section is to define reservoir management The Webster Dictionary defines management as the "judicious use of means to accomplish an end. examines the integration of geosciences and engineering." Thus. human. With this in mind. discusses synergy and teamwork.Unit-5 Reservoir Management Concepts This chapter presents a historical review of reservoir management practices and discusses technological advances made and computer tools developed in recent years to facilitate better reservoir management. technological and financial) to maximize profits/profitability index from a reservoir by optimizing recovery while minimizing capital investments and operating expenses.. Basically. Reservoir management has been defined by a number of other authors. or make it happen. they follow the principles of reservoir management for maximizing economic recovery of oil and gas. . sound reservoir management practice relies on the utilization of available resources (i. It also provides a reservoir management definition. and analyzes the timing for reservoir management. Either let it happen. the management of reservoirs can be interpreted as the judicious use of various means available to a businessman in order to maximize his benefits (profits) from a reservoir. DEFINITION OF RESERVOIR MANAGEMENT There are many reservoir engineers. Reservoir management involves making certain choices. and geophysicists who realize that the maximum coordination of their disciplines is essential to the future success of the petroleum industry.e.

Craig et al. vital engineering considerations are often neglected or ignored. reservoir engineering was considered the most important technical item in the management of reservoirs.HISTORY OF RESERVOIR MANAGEMENT Most people considered reservoir management synonymous with reservoir engineering. (1977) and Harris and Hewitt (1977) explained the value of synergism between engineering and geology. Stage 2—This covers the time period of the 1970s and 1980s. Reservoir management has advanced through various stages in the past 30 years. Wyllie emphasized two key items: (1) clear thinking utilizing fundamental reservoir mechanics concepts and (2) automation using basic computers. Harris and Hewitt presented a geological . reservoir engineering was considered the most important technical item in the management of reservoirs. utilizing geological. As recently as the early 1970s. In 1962. Craig emphasized the value of detailed reservoir description. The developmental stages of reservoir management could be described as the following: Stage 1—before 1970. with the knowledge of geophysical tools. to provide a more accurate reservoir description to be used in engineering calculations. However. after understanding the value of geology. In 1965. Essley described "reservoir engineering" and concluded that in spite of the technical advancement of reservoir engineering. synergism between geology and reservoir engineering became very popular and proved to be quite beneficial. geophysical. He challenged explorationists. and reservoir simulation concepts.

and different engineering functions). Calhoun described the engineering system of concern to the petroleum engineer as being composed of three principal subsystems:  Creation and operation of wells.g. . FUNDAMENTALS OF RESERVOIR MANAGEMENT Although the synergism provided by the interaction between geology and reservoir engineering has been quite successful.. thickness patterns. information. drilling.  Deduce past and predict future reservoir performance..g. which can be obtained by the following steps:  Identify and define all individual reservoirs in a particular field and their physical properties. and pore-space properties (e. reservoir management has generally been unsuccessful in recognizing the value of other disciplines (e. porosity. Thus.  Minimize drilling of unnecessary wells. The prime objective of reservoir management is the economic optimization of oil and gas recovery.  Initiate operating controls at the proper time. production operations. They explained the reservoir heterogeneity due to complex variations of reservoir continuity.perspective of the synergism in reservoir management.  Consider all pertinent economic and legal factors. geophysics. and knowledge. the basic purpose of reservoir management is to control operations to obtain the maximum possible economic recovery from a reservoir based on facts. permeability. and capillary pressure).  Define and modify (if necessary) wellbore and surface systems. In 1963.

 Fluids and their behavior within the reservoir.e. The players are everybody who has anything to do with the reservoir. Surface processing of the fluids. The first two subsystems depend on the third because the type of fluids (i. Since the goal is to maximize profits. and legal groups. neglecting or de-emphasizing any of the previous items could jeopardize our objective. corporate resources are better utilized to achieve the common goal.. gas. economics. but if the proper well and/or surface system design is not considered. integrated team efforts. and water) and their behavior in the reservoir will dictate how many wells to drill and where.e. It is not necessary that all .. All development and operating decisions should be made by the reservoir management team. oil. The team members must work together to ensure development and execution of the management plan. then recovery of oil and/or gas will not be optimized The suggested reservoir management approach emphasizes interaction between various functions and their interaction with management. proration. and how they should be produced and processed to maximize profits. SYNERGY AND TEAM Successful reservoir management requires synergy and team efforts. For example. The reservoir management model that involves interdisciplinary functions has provided useful results for many projects. It is recognized more and more that reservoir management is not synonymous with reservoir engineering and/or reservoir geology. By crossing the traditional boundaries and integrating their functions. reservoir engineering). Success requires multidisciplinary. which recognizes the dependence of the entire system upon the nature and behavior of the reservoir. we could do well in studying the fluids and their interaction with rock (i.

geology. a team member who considers the entire system. and operations staff by: (a) meeting periodically. many persons develop an intuition for the entire system and know when to ask for technical advice regarding various elements of the system. each member of the team should learn to be a good teacher. in fact. and a geologist must cultivate knowledge in well completion and other engineering tasks. However. It will help tremendously if the person has background knowledge of reservoir engineering. with the advent of technology and the complex nature of different subsystems. well completion and performance. and (c) building trust and mutual respect. will be a more effective decision maker. and surface facilities.  Each team member must maintain a high level of technical . it is obvious that the reduction of talent and the increasingly complex technologies must be offset by an increase in quality. it is difficult for anyone to become an expert in all areas.  To some degree. Most companies are carrying on their production activities with a staff much smaller than had existed just five years ago. Also. rather than just the reservoir aspect. and emphasis on the team effort. Therefore. geology. productivity. The team effort in reservoir management cannot be overemphasized. production and drilling engineering. (b) interdisciplinary cooperation in teaching each other's functional objectives.decisions be made by a reservoir engineer. Also. It is even more necessary now than it has ever been because the current trend of the oil industry is not one of expansion.  Each member should subordinate their ambitions and egos to the goals of the reservoir management team. the engineer must develop the geologist's knowledge of rock characteristics and depositional environment. Not many people in an organization have knowledge in all areas. A team approach to reservoir management can be enhanced by the following:  Facilitate communication among various engineering disciplines. as they relate to the project at hand.

As an early example. and overall understanding of the reservoir management process by all team members are essential for the success of the project. chairman and CEO of Michael T. Major producers also have used the integrated approach for years. it is becoming common for large reservoir studies to be integrated through a team approach.competence. Rather. Also. Halbouty. recognized this concept as basic to future petroleum reserves and production. it is better to know early if the isopach and cumulative oil/gas production maps do not agree rather than finalize all isopach maps and then find out that cumulative production maps are indicating another interpretation of the reservoir. a constant interaction between the functional groups should take place. most reservoir management teams are being assembled only at key investment times. creating a team does not guarantee an integration that leads to success. team authority. Using an integrated approach to reservoir management along with the latest technological advances will allow companies to extract the utmost economic recovery during the life of an oil field. used a multidisciplinary approach in the East Unit of the North Sea Leman field from the time the field came pn . In summary. a long-time advocate of synergy and team approach. Amoco IntL Oil Co. Halbouty Energy Co. in Houston. the synergism of the team approach can yield a "whole greater than the sum of its parts” Today. Synergy is not a new concept. It can prolong the economic life of the reservoir. Team skills. However. Missing today are ongoing multidisciplinary reservoir management efforts for all significant reservoirs.  Reservoir engineers should not wait on geologists to complete their work and then start the reservoir engineering work. For example. team compatibility with the line management structure.

The resulting model successfully predicted pressure for an additional two years. Formation of the team. to get the ongoing attention by a multidisciplinary team for all major reservoirs requires great commitment by the operating company. establishment of team goals and objectives. appropriate motivational tools. providing more than three years' lead time to install equipment. and performance appraisals of the team members are some matters that play a key role in effective reservoir management. One model of the team approach follows: . however. single-phase model and refined it with measured pressures from the first six years of production." The team tested the description against field perforrmance in a 2D fine-grid. Once a team is formed and begins to function. selection of team members. 3-D seismic program. Working in a complex fault system. Other aspects such as team leadership. and so forth. the company's reservoir engineers worked closely with geologists to "produce an accurate a priori reservoir description. and composition of the team should be carefully considered. at times of major expenditures. another item of significance is how to sustain team effort. The proven accuracy of the model led to confident planning of future platform and compression requirements. permeability. Geologists reviewed the locations of faults and reservoir boundaries in the historical map. and reserves. development effort.stream in 1968. The field contained more than 10 Tcf [280 x 106 m3] of gas —then the world's largest producing offshore gas field. Organization and management of the reservoir management team requires special attention. It is easy to get excited when the teams are set up. The team gained valuable insight into fault configurations and the relationships of gas in place.

however. their functional heads and the team leader). the team composition changes to include members with the required expertise. drilling.  As the project goals change (e.  Approvals for project AFE's (Appropriation For Expenditures) are initiated by the team members. includes teamwork as a job requirement.. appropriate changes are made. from primary development to secondary process). the engineering/ operations supervisor and/or production manager have the final approval authority. in addition to various dimensions of performance. field operations.  The team reports to the production manager for this project.g.  The team members' performance evaluation is conducted by their functional heads with input from the team leader and the production manager.  Sometimes conflicting priorities for the team members develop because they essentially have two bosses (i. The plan is then presented to the production manager. Functional management nominates team members to work on a project team with specific tasks in mind. and after receiving the manager's feedback. The performance appraisal. and so forth.  The team members consist of representatives from geology and geophysics. Next the plan is published and all members follow the plan.  Teams are rewarded recognition/cash awards upon timely and effective completion of their tasks. Also. finance. various engineering functions. whose responsibility is to coordinate all activities and keep the production manager informed.  Team members prepare a reservoir management plan and define their goals and objectives by involving all functional groups. These conflicts are generally resolved by .e.. this provides an opportunity to change/rotate team members with time. These awards provide an extra motivation for team members to do well. the team selects a team leader. Also.

and multi-skilled individual approach) were very positive. and petroleum engineers to advance petroleum exploration. and production. and very seldom does a production geologist get in-depth experience in reservoir engineering and vice versa. Integrated reservoir management training for geoscientists and engineers offered by many major oil and gas companies is designed to address these needs. Success for integration depends on:  Overall understanding of the reservoir management process." Despite the emphasis. geophysicists. Synergy and team concepts are the essential elements for integration 0f geosciences and engineering. . Sessions and Lehman presented Exxon's three case histories where the geology-reservoir engineering relationship was promoted through both a team approach and an individual approach. and data. technology. It involves people. and tools through integrated training and integrated job assignments. progress on integration has been slow. team-based approach. They advocated crossexposure and cross-training between disciplines. tools. development. Sessions and Lehman presented the concept of increased interaction between geologists and reservoir engineers through multifunctional teams and crosstraining between the disciplines. and the production manager. The results of the three cases (project-based approach. They stated that production geology and reservoir engineering within the conventional organization function separately. technology. INTEGRATION OF GEOSCIENCE & ENGINEERING Halbouty stated in 1977: "It is the duty and responsibility of industry managers to encourage full coordination of geologists.constant communication among the team leader. functional heads.

geological and engineering data should be reviewed and coordinated with the geophysicists to determine whether or not an extension is possible for the drilling of an exploratory well. additional information is collected and is used to revise and refine the original interpretation.  Persistence. Perfectly conscientious and capable seismologists may overlook a possible extension in a proven area because of their unfamiliarity with the detailed geology and engineering data obtained through development. With the development of the field. Also. The initial interpretation of a 3D-seismic survey affects the original development plan. A 3D-seismic analysis can lead to identification of reserves that may not be produced optimally (or perhaps not produced at all) by the existing reservoir management plan. . Robertson of Arco points out that the geologic detail needed to properly develop most hydrocarbon reservoirs substantially exceeds the detail required to find them. Note that the usefulness of a 3D-seismic survey lasts for the life of the reservoir. it can save costs by minimizing dry holes and poor producers. flexibility. communication. and coordination. it is essential that geological and engineering ideas and reasoning be incorporated into all seismic results if the full economic value of the seismic data is to be realized.  Working as a team. Openness. Most of the difficulties encountered in incorporating geological and engineering knowledge into seismic results and vice versa may be averted by an exchange of these ideas between the three disciplines. In addition. For this reason. Reservoir engineers and geologists are beginning to benefit from seismic and cross-hole seismology data.21 This perception has accelerated the application of 3D-seismic analysis to reservoir management.

Cross-well seismic tomography is developing into an important tool for reservoir management. Seismology is well suited for this application. Current applications focus on the monitoring of enhanced oil recovery processes. but perhaps most important is the potential of the method to improve our geological knowledge of the reservoir. Such flow surveillance is possible by acquiring baseline 3D-data before and after the fluid flow and pressure/temperature changes. since the presence of live steam in the reservoir sharply reduces the P-wave velocity. Moreover. fault. fracture pattern. trap.e. Although flow surveillance with multiple 3D-seismic surveys is at an early stage of application. The fundamental requirements for the technology have been demonstrated. The 3D-seismic data guide interwell interpolations of reservoir properties. and within the last few years there have been notable advances in the understanding of the imaging capability of cross-well tomograms. The reservoir engineer can use the seismic volume to understand lateral changes. . High-frequency seismic waves capable of traveling long interwell distances can be generated without damaging the borehole. Consequently. and tomographic inversion techniques can give reliable images as long as the problems associated with nonuniform and incomplete sampling are handled correctly. shapes of the deposits). Cross-well seismology is becoming an important tool in reservoir management. So far. it has been successfully applied in thermal recovery projects. seismic velocities can be used as a measure of reservoir temperature and/or an indicator of live steam within the reservoir.The geophysicists' interpretation of the 3D-seismic data may be combined with the other relevant information regarding the reservoir (i. The 3D-seismic analysis can be used to look at the flow of fluids in a reservoir.. most cross-well seismic surveys have been done for the purpose of mapping steam zones in steam flood operations. for high-gravity oils in unconsolidated sand reservoirs the seismic P-wave velocity decreases significantly with increased temperature.

Part of the information contained in the model is provided by the geologist. Throughout his work. and capillary properties (the aquifer surrounding the field is similarly studied) (4) integration studies develop the hydrocarbon pore volume and fluid transmissibility patterns in three dimensions. As described by Harris. Welltest studies aid in recognizing flow barriers. Various simulation studies can be used to test the physical model against pressure-production performance. It is important that the geologist and the engineer understand each other's data. both engineering and geological judgment must guide the development and use of the simulation model. for the studies to be useful the geologist must develop quantitative data. The geologist usually concentrates on the rock attributes in four stages: (1) rock studies establish lithology and determine depositional environment. and variations in permeability. However. . fractures. adjustments are made to the model until a match is achieved. based on studies of the physical framework of the reservoir. These models are used increasingly to evaluate both new and mature fields and to determine the most efficient management scheme. the geologist requires input and feedback from the engineer.The role of geology in reservoir simulation studies was well described by Harris in 1975. permeability. and reservoir rock is distinguished from nonreservoir rock (2) framework studies establish the structural style and determine the threedimensional continuity character and gross-thickness trends of the reservoir rock (3) reservoir-quality studies determine the framework variability of the reservoir rock in terms of porosity. He described the geological activities required for constructing realistic mathematical reservoir models. Core-analysis measurements of samples selected by the geologist provide data for the preliminary identification of reservoir rock types.

integration also creates challenges. 3-D seismic data along with computer-processed logs and core analyses characterize or describe more realistically and accurately the reservoir providing the 3-D computer maps. Oil and Gas Journal published a special report on "Integrating Exploration and Development Technology" using state-of-the-art computing and communications.Many companies have initiated the development of a three-dimensional geological modeling program to automate the generation of geologic maps and cross-sections from exploration data. Advancements in 3-D seismic acquisition and processing are credited to the massive number-crunching supercomputers such as Cray computers. and workstations have revolutionized interdiscipline technical activities and industry business practices. The supercomputers made reservoir simulators work faster and more accurately. The reservoir engineers use these maps along with rock and fluid properties and production/injection data to simulate reservoir performance and to design depletion and development strategies for new and old fields. INTEGRATING TECHNOLOGY EXPLORATION AND DEVELOPMENT New developments in computer hardware. which requires . The mainframe supercomputers. The integration process from reservoir characterization to reservoir simulation. Recently. However. technology. making them more responsive and effective. more powerful personal computers. to making best use of interdisciplinary teams. and software are enhancing integration of multidisciplinary skills and activities. from managing computer systems to designing organizations. The OGJ special report states that integration is changing the way oil companies work.

The machines include high-end PCs.interdisciplinary teamwork has been made practical and efficient by utilization of computers. and interpretation on truly interactive domain rather than batch mode. The office-tooffice communication has been made very quick (almost instantaneous). Interactive workstations interface several machines together locally in a physical cluster or using networks and software to link central processing units (CPUs) from various sites into a virtual cluster. Major oil companies have worldwide computer links between all divisions and regional offices. and reports via network communications are excellent examples of networking. faster. videoconference centers in various geographical locations. The IBM mainframe-based PROFS/Office Vision electronic mail facili-ties. The computer networks that link the IBM mainframe computers. Hewlett-Packard (HPs). and immensely productive. Unix workstations. and workstations' images of maps. and Silicon Graphics hardware. Cray supercomputers. IBMs. graphs. The problems are: . Contrary to the workings of the supercomputers and mainframe computers. DECs. The demands for workstations of various kinds are ever increasing in the industry because they are becoming the workhorse of the integrated geoscience and engineering teams. MicroVAX’s. While networks provide an efficient means to move digital data. and PC token ring networks together provide the mechanism for effective communication and coordination from various geographical office locations. retrieval and storing of data pose a major challenge in the petroleum industry today. The workstations are also capable of utilizing many geoscience and engineering software interactively. Suns. The networks have made the tasks of the integrated teams easier. and cost-effective by computer networking. productive. analysis. the interactive workstations allow data migration.

Now. and reservoir engineering. Many oil companies are staging an integrated approach to solving these problems. petrophysics.or macro-scale is the latest major breakthrough in computer technology. It may very well be the most powerful and persuasive communication tool of the integrated teams for decades to come. and attributes for better understanding and capturing by human senses. • Databases usually do not communicate with each other. a time and cost-effective way to integrate exploration and production activities using existing hardware and software is available. POSC's technical objective is to provide a common set of specifications for computing systems. geology.. land. POSC members are counting on POSC and its major software vendors to provide a long-term solution to database-related issues. and Schlumberger. Members of the Geoshare user's group. In late 1990. 3-D computer visualization via a video monitor of a reservoir at a micro.. is being distributed as the Geoshare standards. several major domestic and foreign oil companies formed Petrotechnical Open Software Corporation (POSC) to establish industry standards and a common set of rules for applications and data systems within the industry. A fully opendata exchange system. drilling. 3-D visualization technique will enhance our understanding of the reservoir. will . which will allow data to flow smoothly between products from different organizations and will allow users to move smoothly from one application to another. which was jointly created by Finder Graphics Systems Inc. providing better reservoir description and simulation of reservoir performance. geophysics. GeoQuest. The awesome power of visualization lies in its ability to synthesize diverse data types viz. which consists of many geoscientific software developers and oil and gas operators.• Incompatibility of the software and data sets from the different disciplines.

it does not really address broader organization and information technology issues. implementing and monitoring the plan. and a diversified portfolio of skills within an integrated and flexible business framework is emerging . Even though this kind of teamwork and flexibility is a step in the right direction. As additional data become available. and evaluating the results. The modern reservoir management process involves establishing a purpose or strategy and developing a plan. companies are viewing their options as far more flexible. which works from the bottom up. In the emerging second approach. every reservoir may not warrant such a detailed plan because of cost effectiveness. It is a completely open and expandable standard whose future lies with the Geoshare user's group. changes in information technology alone (both hardware and software) are intended to eliminate problems of knowledge transfer and communication.soon be able to transfer data and interpretations among their various data bases in support of E&P techniques. finding and producing hydrocarbons were considered the essence of success in the upstream end of the petroleum industry. It is dynamic and ongoing. However. the reservoir management plan is refined and implemented with appropriate changes. the key to . Now. None of the components of reservoir management is independent of the others. Traditionally. Integration of all these are essential for successful reservoir management. The use of asset management teams is now standard practice in many companies. While a comprehensive plan for reservoir management is highly desirable.

safety. rock and fluid properties. oil/gas price. Reservoir Characteristics The nature of the reservoir being managed is vitally important in setting its management strategy. and attitude. fluid flow and recovery mechanisms. and past production . capital. financial strength. performance Total Environment Understanding of the following environments is essential in developing management strategy and effectiveness:  Corporate—goal. Understanding of each of these elements is the prerequisite to establishing short.and long-term strategies for managing reservoirs. Understanding the nature of the reservoir requires a knowledge of the geology. The key elements for setting a reservoir management goal are: • • • Reservoir characteristics. SETTING GOALS Recognizing the specific need and setting a realistic and achievable purpose is the first step in reservoir management.  Social—conservation.  Economic—business climate. and environmental regulations. drilling and well completions. Total environment. inflation. Available technology. culture.success is to have a management plan (whether so comprehensive or not) and implement it from day one. and personnel availability.

Development and Depletion Strategy The most important aspect of reservoir management deals with the strategies for depleting the reservoir to recover petroleum by primary and applicable secondary and enhanced oil recovery methods. It needs to be carefully worked out involving many time-consuming development steps. Developing Plan Development & Depletion Strategies Environmental Considerations Data Acquisition & Analyses Geological & Numerical Model Studies . DEVELOPING PLAN AND ECONOMICS Formulating a comprehensive reservoir management plan is essential for the success of a project. recovery processes. However. they offer opportunities that may or may not be appropriate for every reservoir. Many technological advances have been made in all of these areas.Technology and Technological Toolbox The success of reservoir management depends upon the reliability and proper utilization of the technology being applied concerning exploration. and production. Development and depletion strategies will depend upon the reservoir's life stage. drilling and completions.

Regulatory agency constraints will also have to be satisfied. recovery schemes. environmental and ecological considerations have to be included. implementing the plan. Environmental Considerations In developing and subsequently operating a field. we need to address the question of how to best develop the field (i. number of wells. justify. . time. secondary and even tertiary recovery schemes need to be investigated. monitoring and evaluating the performance of the reservoir requires a knowledge of the reservoir that should be gained through an integrated data acquisition and analysis program. and (3) validate/store (data base). If the reservoir has been depleted by primary means.e. These are very sensitive and important aspects of the reservoir management process. Data Acquisition 8c Analysis Reservoir management starting from developing a plan. The key steps are (1) plan. and subsequently secondary and tertiary). primary. (2) collect and analyze..Production & Reserves Forecasts Facilities Requirements Economic Optimization Management Approval In case of a new discovery. well spacing. and prioritize.

and high-technology black oil. such as geophysics. materialbalance. Facilities Requirements . The geological model. the evaluation of the past and present reservoir performance and forecast of its future behavior is an essential aspect of the reservoir management process. particularly the definition of geological units and their continuity and compartmentalization. analyzing. It poses a great challenge. Geological and Numerical Model Studies The geological model is derived by extending localized core and log measurements to the full reservoir using many technologies. and in planning and designing enhanced oil recovery projects. Reservoir simulators play a very important role in formulating initial development plans. and decline-curve analysis methods. history matching and optimizing future production. mineralogy. storing and retrieving—is needed for sound reservoir management. Therefore. Production and Reserves Forecasts The economic viability of a petroleum recovery project is greatly influenced by the reservoir production performance under the current and future operating conditions. Classical volumetric.An enormous amount of data are collected and analyzed during the life of a reservoir. depositional environment and diagenesis. compositional and enhanced oil recovery numerical simulators are used for analyzing reservoir performance and estimating reserves. An efficient data management program—consisting of collecting. is an integral part of geostatistical and ultimately reservoir simulation models.

but they cannot be wastefully designed. it must have commitment from all disciplines. IMPLEMENTATION Once the goals and objectives have been set and an integrated reservoir management plan has been developed. . we do through the facilities. Figure 3-6 presents the key steps involved in economic optimization. involving all functions. If a plan is to be developed and implemented in the best way. injecting. processing. These include drilling. completion. the next step is to implement the plan.  The first step involves starting with a plan of action. not all groups buy into these programs. and storing. including all functions. Management Approval Management support and field personnel commitment are essential for the success of a project. Everything we do to the reservoir. The facilities must be capable of carrying out the reservoir management plan. including management.  Flexible plan. Economic Optimization Economic optimization is the ultimate goal selected for reservoir management.  Start with a plan of action. Thus. It is common for many reservoir management efforts to devise a plan.Facilities are the physical link to the reservoir. but this plan usually does not involve all functional groups. and the cooperation between various functions is below the desired level. pumping. Proper design and maintenance of facilities has a profound effect on profitability.

it must have local and higher level management blessings. involving all team members (interdisciplinary cooperation in teaching each other's functional members. Most. it is necessary that we get management involved from "day one.  The plan must have management support. Even if the reservoir management team members prepare plans by involving all functional groups. if not all.. involving all team review meetings.2  The important reasons for failure to successfully implement a plan are: (1) lack of overall knowledge of the project on the part of all team . Thus. the field personnel do not have a commitment to these plans. of these meetings should be held in the field offices. and environmental). Management support.  It is critical to have periodic review meetings.g. The success of these meetings will depend upon the ability of each team member to teach their functional objectives. Thus."  No reservoir management plan can be implemented properly without the support of the field personnel.  Periodic objectives).  The plan must be flexible. No matter how technically good the plan. economic. it would not be approved. legal.  Commitment of field personnel. Time and time again we have seen reservoir management plans fail because either they are imposed on field personnel without thorough explanations or they are prepared without their involvement. it does not guarantee success if it can not be adapted to surrounding circumstances (e. Without their support.

An integrated and comprehensive program needs to be developed for successful monitoring and surveillance of the management project. (4) production and injection tests. and any others aiding surveillance. (3) static and flowing bottom hole pressures. The program will depend upon the nature of the project. (2) failure to interact and coordinate the various functional groups. coordinated efforts of the various functional groups working on the project are needed. the major areas of monitoring and surveillance involving data acquisition and management include: (1) oil. and operations personnel should work together on the program with management support. SURVEILLANCE AND MONITORING Sound reservoir management requires constant monitoring and surveillance of the reservoir performance as a whole in order to determine if the reservoir performance is conforming to the management plan. and that it is still the best plan. water and gas production. the monitoring and surveillance program is particularly critical because of the inherent uncertainties. that it is working.members. EVALUATION The plan must be reviewed periodically to ensure that it is being followed. Ordinarily. In case of enhanced oil recovery projects. In order to carry out the monitoring and surveillance program successfully. The engineers. (5) injection and production profiles. geologists. and (3) delay in initiating the management process. (2) gas and water injection. The success of .

what would work better. The actual performance (e.g. The answers to questions such as is it working. gas-oil-ratio. REASONS FOR FAILURE OF RESERVOIR MANAGEMENT PROGRAMS There are numerous reasons why reservoir management programs have failed. must be asked and answered on an ongoing basis in order for us to say we are practicing sound reservoir management. It would be unrealistic to expect the actual project performance to match exactly the planned behavior.the plan needs to be evaluated by checking the actual reservoir performance against the anticipated behavior. what needs to be done to make it work. A project may be a technical success but an economic failure. reservoir pressure.. certain technical and economic criteria need to be established by the functional groups working on the project to determine the success of the project. and production) needs to be compared routinely with the expected In the final analysis. How well is the reservoir management plan working? The answer lies in the careful evaluation of the project performance. The criteria will depend upon the nature of the project. the economic yardsticks will determine the success or failure of the project. Therefore. water-oil-ratio. REVISION OF PLANS & STRATEGIES Revision of plans and strategies is needed when the reservoir performance does not conform to the management plan or when conditions change. Some of the reasons are listed below: Un-integrated System .

and surface facilities). Also. they must have an intuitive feel for them. surface facilities. The team approach to reservoir management involving interaction between various functions has been recently emphasized Starting Too Late Reservoir management was not started early enough. the people may not have the required background knowledge in critical areas (e. Perhaps the most important reason why a reservoir management program is developed and implemented poorly is an unintegrated group effort. reservoir engineering. Although it may not be absolutely necessary for reservoir-management decision makers to have a working knowledge in all areas. the recovery of oil and/or gas was not optimized. Not all of these were emphasized in a balanced way. and when initiated.It was not considered as a part of a coupled system consisting of wells. For example. production and drilling engineering. but. management became necessary because of a crisis that occurred. Most people can cite examples of mistakes made where we thoroughly studied various aspects of the reservoir and made decisions resulting in too many wells drilled..e. and it required a major problem to be solved. Sometimes the operating decisions are made by people who do not recognize the dependence of one system on the other. improper application of well completion technology.. by not considering the well and/or the surface system design. and/or inadequate surface facilities available for future expansion.g. and the reservoir. geology and geophysics. Early initiation of a . one could do well in studying the fluids and their interaction with rock (i. reservoir engineering).

a few early Drill Stem Tests (DSTs) could have helped decide if and where to set pipe. and it could have cost less in the long run. One reason for reservoir management ineffectiveness is that the reservoir and its attached system's (wells and surface facilities) health (condition) is not maintained from the start. Sometimes the reservoir management staff has difficulties in justifying the data collection effort to management because the need for the data. especially immediately after the discovery of a reservoir. an integrated approach of data collection is not followed. Early definition and evaluation of the reservoir system is a prerequisite to good reservoir management. are not clearly shown. The collection and analysis of data play an important role in the evaluation of the system. According to his concept. Also. Also. . Lack of Maintenance Calhoun draws an analogy between reservoir and health management. in this endeavor not all functions are generally involved. For example. along with its costs and benefits. Most often.coordinated reservoir management program could have provided a better monitoring and evaluating tool. performing some early tests could have indicated the size of the reservoir. it is not sufficient for the reservoir management team to determine the state of a reservoir's health and then attempt to improve it.

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