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Intelligent Energy:

The Synergy
between Computers
and Oil & Gas
Michael Nikolaou
Chemical & Biomolecular Engineering
Petroleum Engineering

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
2

Intelligent Energy?

Nikolaou
Intelligent
Energy

Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
3

Energy is the
biggest
scientific and
technological
problem facing
our planet in
the next 50
years.
R. E. Smalley,
2005
(Chemistry
Nobel, 1995)
Smalley, R. E. (2005). MRS Bulletin 30(6): 412-417.

Nikolaou
Intelligent
Energy

Enough Energy for the Future?

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
4

But

Image Source: N. S. Lewis, Powering the Planet, http://nsl.caltech

Nikolaou
Intelligent
Energy

by
Fossil Fuels

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)

83
%

Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
5

Source: The National Academies,

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD

Fossil Fuel Projections


78
%
84
%

Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
6

You
are
here

Source: US Energy Information Administration, 2013. www.eia

Nikolaou
Intelligent
Energy

Currencies, and
Energy Sinks

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
7

Source: http://needtoknow.nas.edu/energy/interactive/our-energy-system/ based on data from Lawrence Livermore National

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
8

US Transportation: (Almost)
All on Oil
90
%

Nikolaou
Intelligent
Energy

US Electricity: (Almost) No Oil

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
9

Data Source: US Energy Information Administration, 2011, www.eia

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)

Energy and the Environment


Industrial
Revolution
Athens
Peppere
d Moth
London
smog,
1952

Los
Angeles

Beijing

Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
10

Image Source: http://www.realscience.org.uk

Nikolaou
Intelligent
Energy

BTW: Plastics!

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
11

Source: YouTube (The Graduate

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers

Enough Energy for the Future?


Wrong
question

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design

The real challenge: Energy at the right

ESP
Monitoring
Marine CNG
Under the
Hood
12

Time
Place
Cost
Impact

Image Source: N. S. Lewis, Powering the Planet, http://nsl.caltech

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
13

Energy in a Bottle:
Petroleum and Technology

Intelligent
Energy

Need to Spend Energy to Get


Energy
100

MPC for
MPD

80

Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
14

Energy Return on
Investment (EROI)

Oil & Gas


and
Computers

Source: C.A.S. Hall, http://www.theoildrum.com/node/3810

US
Domest
ic Oil
1930

Coal

60

40

20

Firewood
Hydro

Nikolaou

US
Importe
d Oil
1970

Wind

PV-solarNucle
Biodiesel ar
Tar Sands
0
10

US
Domest
ic Oil
2005

US
Domes
tic Oil
1970
Natur
al Gas

20

US
2005
US
Imported
Oil
2005

30

Total
Energy
(Quad
100

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
15

Pivotal Technologies for Oil &


Gas
Key technologies:
3D seismic
Horizontal drilling
Hydraulic fracturing

A key supporting enabler:


Computers

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
16

Intelligent Energy
Upstream
Drilling:
Managed pressure drilling (MPD)

Cementing:
Reverse-circulation cementing
Avoid natural gas leaks (Zonal isolation)

Fracturing:
Optimal geometry and placement

Production:
Abnormal situation detection, diagnosis, and
correction

Midstream
Transportation of natural gas as CNG

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
17

Managed Pressure Drilling


(MPD)

Nikolaou
Intelligent
Energy

Drilling Offshore Wells

Oil & Gas


and
Computers

Rock

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
18

Riser
Annulus

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
19

Maintain Downhole Pressure


When Drilling

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
20

What Could Go Wrong?

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers

MPD and the Need for


Automation
Additives

Main pump
(variable-speed)

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring

Return pump
(variable-speed)

On/Off

On/Off
Isolate pump
(variable-speed)
Stand pipe

Supply
tank

Drain
On/Off
On/Off
Trip tank
Choke
(variableopening)

Back-pressure
pump (variablespeed)

Kill tank

Injection pump
(variable-speed)
Kill pump
(variable-speed)

Extraction
pump (variablespeed)
Well control line
On/Off

Blow-out
preventer
(BOP)

Marine CNG
Under the
Hood
21

Check
valve

Variable
opening

Nikolaou
Intelligent
Energy

Model Predictive Control


(MPC)

Oil & Gas


and
Computers
MPC for
MPD

Moving Horizon
Targe
t
History Matching (?)

Cementing
Well(s)

Targe
t

Hydraulic
Fracture
Design

Targe
t

ESP
Monitoring

Targe
t

Marine CNG
Under the
Hood
22

Time

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
23

MPD Case Study:


Dual-Gradient Drilling

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD

Managed Pressure Drilling:


MPC for MPD
Manipulated inputs:

Controlled outputs Keep at setpoint:

Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
24

Additional objective Keep at setpoint:

Constraints:

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers

Operating Scenarios
Symbol

Mode

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
25

No MPC

u1 qpump 1000 l / min


MPC

set
u1set qpump
1000 l / min

Observed maximum
drill string velocity
ds 12 [m/min]

ds 19 [m/min]
ds 24 [m/min]
ds 28 [m/min]
ds 12 [m/min]
ds 19 [m/min]
ds 24 [m/min]
ds 28 [m/min]

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
26

Drill String Velocity


(Tripping into the well)

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
27

Hook Position

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
28

Main Mud Pump Flow Rate

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
29

Subsea Pump Flow Rate

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
30

Bottomhole Pressure (BHP)

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
31

Insight
Computers
and

automation can
improve long
entrenched practices
as long as is
maintained

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
32

Reverse-Circulation Primary
Cementing (RCPC)

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
33

Reverse-Circulation Primary
Cementing (RCPC)

Nikolaou
Intelligent
Energy

Drilling Offshore Wells

Oil & Gas


and
Computers

Rock

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
34

Riser
Annulus

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
35

Offshore RCPC

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
36

RCPC Simulator Development


Visualize T, P
Develop simulator in COMSOL

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
37

RCPC Simulator Development

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
38

Insight

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
39

Gas Well Cementing for Zonal


Isolation

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
40

Natural Gas: A Bridge Fuel

Nikolaou
Intelligent
Energy

Avoiding Natural Gas Leaks

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
41

Data Source: Howarth RW, R Santoro, and A Ingraffea, Climatic Change (2011) 106:679690

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
42

Ingredients for Recipes to


Cement a Well Well

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)

How to Model Outcomes of


Recipes?
Cement job evaluation (21 wells)
Cement bond log (CBL) data Bond Index (BI)
Continuous data:
Regression model: Partial least squares (PLS)

Model inconclusive
1.8
1.6

Cross-validated data (Bond Index)

Hydraulic
Fracture
Design
ESP
Monitoring

1.4
1.2
1.0
0.8

f(x) = 1.06x
R = 0.86

0.6
0.4

Marine CNG
Under the
Hood
43

0.2
0.0
0.1

0.2

0.3

0.4

0.5

0.6

0.7

Experimental data (Bond Index)

0.8

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
44

How to Model Outcomes of


Recipes?
Cement job evaluation (45 wells)
Sustained casing pressure (SCP)
Categorical data: Leak/No-Leak (19/26 wells)
Classification Model: PLS/DA

Cross-validated correct classification:


Estimates of conclusive or inconclusive cases
Ranking of variables in order of importance

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
45

Ranking of Variables

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
46

Similar and Different Wells

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
47

Insight: How to Avoid Leaks

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
48

Insight
Recipes and Rules-of-Thumb:
Cold water leads to poor mixing
High gel-strength development in short time
span desirable for good a cementing job
High volume of mixing water not good for a
cementing job
Use of extenders in case of high water to
cement ratio
Use of fluid loss cement additive to reduce fluid
losses from cement slurry
Low (but not too low) mud-weight to cement
density ratio for better mud displacement

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
49

Wells in
Low-Permeability Reservoirs

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
50

Wells in
Low-Permeability Reservoirs

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
51

The Unified Fracture Design


Method
Given

Proppant mass,
Formation permeability,
Pay-zone thickness,
Fracture height,
Fracture volume,

Define
Dimensionless fracture
conductivity:
Proppant number:
Drainage area aspect ratio:
Penetration ratio:

Optimal fracture:

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
52

Optimal Fracture Designs

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
53

Insight

Nikolaou
Intelligent
Energy

Extended to Economic
Optimization
Input Variables:
Reservoir/ Well Properties
Fluid properties
Proppant type

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)

Outer
(Economic)
Optimization

Design Variables:
No. of wells, nw
No. of fractures, n f
Mass of Proppant, M p

Design
Constraints

Fracture Design Module


UFD + PKN + P3D
h f , x f , wf , ptreat

Hydraulic
Fracture
Design

Inner
(Physical)
Optimization
GLOBAL

Production Estimation
Module
q (t ), Q (t )

ESP
Monitoring

Objective Function
NPV

Marine CNG
Under the
Hood
54

Bounds on
nw , n f , M p

opt
w

Optimal Design
opt
opt
opt
opt
, n opt
f , M p , h f , x f , wf

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
55

Abnormal Situation Detection, Diagnosis, and


Correction for Electric Submersible Pumps

Nikolaou
Intelligent
Energy

(ESP):
Key for Artificial Lift

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
56

ESP
Second most common
artificial-lift technology
Biggest market share in cost

Most common ESP


concerns:
High workover costs
Low system run life
Image Sources: Spears & Associates, 2009; http://www.chemtech-online.com/O&G/Priyanka_april_may12.html

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
57

What Could Go Wrong?


Failures
Mechanical

Leaking
Failed pressure test
Stuck
Burst
Bent
Broken
Disconnected

Material

Burn
Corroded
Worn
Melted
Overheated

Electrical

Others

Short circuit
Open circuit
Faulty power

Plugged with solids


Contaminated fluid

Causes
Design related

Equipment
capacity
Material
selection
System
configuratio
n

Fabrication

Storage/ Transport

Manufacturing Improper
problem
storage
Improper
Improper
quality control
transportation

Installation

Operational

Assembly Normal wear


procedure
and tear
Installation Inadequate
procedure
training

Reservoir

Reservoir
fluids
Reservoir
performance

Source: GE

Nikolaou
Intelligent
Energy

Standard ESP Monitoring vs.


Data-Driven
Real-Time Decision Variables

Oil & Gas


and
Computers

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
58

Limited to power
due to
Fluid density
Flow rate

Flowline
Pressure

Vibration

Water Cut

Wellhead
Pressure

P Pump

Wellhead Temp

P Choke

Motor Current
A

P ESP to
Wellhead

Motor Current
B

Free Gas
Intake

Motor Current
C

Overall System
Efficiency

Discharge
Pressure

Pump Fluid
Density

Intake Pressure

Pump Head

Intake
Temperature

Total Liquid
Flowrate

Leakage
Current

Total Pump
Head

Motor

Nikolaou
Intelligent
Energy

ESP Analytics Workflow

Oil & Gas


and
Computers

MPC for
MPD
Cementing
Well(s)

Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
59

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
60

Case Study

Major oil-field in Middle-East


Data from downhole and surface gauges
Analysis for five events
Data over 2 years
Data frequency: 1 minute

Analysis performed on Matlab

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
61

Development of Monitoring
System

Nikolaou

Principal Component 2

Oil & Gas


and
Computers
MPC for
MPD

Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
62

Principal Component 2

Cementing
Well(s)

Principal Component 1

Principal Component 2

ESP Health Detection

Principal Component 2

Intelligent
Energy

Principal Component 1

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
63

ESP Health Prediction Patterns

Nikolaou
Intelligent
Energy

ESP Health Diagnosis


Trip 1

Oil & Gas


and
Computers

1.400
1.200

MPC for
MPD

1.000
0.800

Cementing
Well(s)
Hydraulic
Fracture
Design

0.600

Contribution

0.400
0.200
0.000

ESP
Monitoring
Marine CNG
Under the
Hood
64

Decision variables

Nikolaou
Intelligent
Energy

ESP Health Correction


Parameter behavior identification

Oil & Gas


and
Computers

250

200

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design

150

100

Operating Value (%)

50

ESP
Monitoring

Decision Variables

Marine CNG
Under the
Hood
65

Stable Zone

Min Value

Trip 1

Trip 2

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
66

ESP Health Correction

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
67

ESP Analytics in a Nutshell

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
68

Natural Gas as CNG


(Compressed Natural Gas)

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
69

Monetizing Natural Gas:


Conversion Strategies
Gas to wire (GTW)
Gas to liquids (GTL)
Chemical reactions
10 bcf/d ~ 1MMb/d

Liquefied natural gas (LNG)


Freezing (-162C, -260F)

Compressed natural gas (CNG)


Compression (150-250 atm)
Possibly chilling

Nikolaou
Intelligent
Energy

Established International
Trade

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
70

Source: BP Statistical Review (201

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
71

LNG or CNG?

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)

LNG or CNG?
Cost structure difference
LNG

Terminals

Fleet
0%

40
%

100%

Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
72

Ter
m.

Fleet
CNG
0%

80
%

100%

Nikolaou

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
73

Marine LNG or CNG?


Key factor: Distance,
L

L in e s o f N P V

Short distance: CNG


Long distance: LNG

500

Secondary factor:
Amount of gas
transported, q
Gas price not
important (for choice
between the two)
Composite CNG
containers have
economic merits

CN G

N PV

LNG

400

Oil & Gas


and
Computers

Conclusions

G a s r a te , q B c f y

Intelligent
Energy

300
200
100
0

4
6
D ista n c e , L k m ile s

10

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
74

Potential Marine CNG Markets

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
75

Insight
CNG distribution
patterns:
Hub and spoke
Milk run

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
76

CNG for the Caribbean: The


Big Four

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
77

CNG for the Caribbean: The


Small Ones

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
78

Insight
Marine CNG:

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers

Insight
LNG vs. CNG
Primary differentiator: Distance, L

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
79

CC NN GG MM ee tt aa ll
CC NN GG MM ee tt aa ll

LL NN GG
LL NN GG

C N G C o m p o s it e
C N G C o m p o s it e

LN G
LN G

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
80

Quick Look Under the Hood

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
81

Quick Look Under the Hood

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
82

Quick Look Under the Hood

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
83

Quick Look Under the Hood

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
84

Quick Look Under the Hood

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
85

Quick Look Under the Hood

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
86

At the End of the Day

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
87

Closing Thoughts

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
88

Closing Thoughts
Intelligence can be useful for energy
problems
Its not just number crunching
Breeding improves the race

Nikolaou
Intelligent
Energy

Acknowledgements
Funding

Oil & Gas


and
Computers
MPC for
MPD

IRIS, Statoil
RPSEA
Anadarko, Weatherford, Chesapeake
Halliburton
XGas

Collaborators
MPC for MPD

Cementing
Well(s)

Drs. Gerhard Nygaard, Oeyvind Breyholtz, JanEinar Gravdal (IRIS/University of Stavanger)


Dr. John-Morten Godhavn (Statoil)

Cementing Well(s)

Hydraulic
Fracture
Design

Kyle Macfarlan (UH, Sim2TheMax)


Shyam Panjwani, Shobhit Misra (UH)
Jessica McDaniel (CSI)
Crystal Wreden, Matt Schinnell (Weatherford)

Hydraulic Fracturing Design


Dr. Srimoyee Bhattacharya (UH, Shell)

ESP
Monitoring
Marine CNG
Under the
Hood
89

ESP Monitoring
Supriya Gupta (UH)
Dr. Luigi Saputelli (UH, Frontender)
Dr. Cesar Bravo (Halliburton)

Marine CNG
Dr. Xiuli Wang (UH, XGas)

Prof. Michael Economides

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
90

EXTRA SLIDES

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
91

Oil & Gas Production:


Upstream

Nikolaou
Intelligent
Energy

Oil Refining and


PetroChemicals

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
92

Source: Wikipedia

Nikolaou
Intelligent
Energy

of Crude Oil
(42 Gallons)

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)

/42
/42
/42

42

Hydraulic
Fracture
Design
ESP
Monitoring

/42

Marine CNG
Under the
Hood
93

Source: US Energy Information Administration, 2013. www.eia

Nikolaou
Intelligent
Energy

Oil & Gas


Energy
and
Sources
Computers
MPC for
Energy
and
MPD
the Planet
Cementing
Producing
Well(s)

Fuels

Hydraulic
Oil
Fracture
Design

Natural Gas

ESP
Monitoring
Renewables
Marine CNG

Closing
Thoughts
Under
the

94

Hood

NATURAL GAS

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers

Natural Gas Production and


Transportation
International trade
70% Pipeline
30% Liquefied Natural Gas (LNG)

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
95

Sweetener
Sweetener

Dehydrator
Dehydrator
Ethane
Ethane
Propane
Propane

Source: www.total.com

Nikolaou
Intelligent
Energy

Jethro Tull and Shale Gas

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
96

Source: http://collectorsfrenzy.com/details/3103841812
Source: YouTube

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
97

George Mitchell & the Shale


Gas Revolution

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
98

George Mitchell & the Shale Gas


Revolution
George Mitchell
[1917- July 26,
2013], the Texas
oilman who
pioneered
fracking, did as
much to change
the world as
anybody in the
[Silicon] Valley.
The Economist
July 20th, 2013

Nikolaou
Intelligent
Energy

US Natural Gas Production


1990-2035

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
99

Source: U.S. Energy Information Administration. Annual Energy Outlook 2012 Early Release Overview. January 2012

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
10

0
10

Spreading the Secret

Nikolaou
Intelligent
Energy

Could Change the World

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
10
1

Source: McKinsey Global Institute, Game changers: Five opportunities for US growth and

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
10
2

Setting the US Clock back to


1992

Nikolaou
Intelligent
Energy

Unconventional Becoming
Conventional

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
10
3

Source: Holditch and Associate

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
10

4
10

US Oil Recently:
Impact of Shale Oil

Nikolaou
Intelligent
Energy

Production of Natural Gas


from Shale Rocks

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
10
5

Source: YouTube

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
10
6

How to Monetize Natural Gas?


Gas to wire (GTW)
Gas to liquids (GTL)
Chemical reactions
10 bcf/d ~ 1MMb/d

Liquefied natural gas (LNG)


Freezing (-162C, -260F)

Compressed natural gas (CNG)


Compression (150-250 atm)
Possibly chilling

Nikolaou
Intelligent
Energy

Gas to Wire (Electricity)

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
10

7
10

Combined Cycle Gas


Turbine
(CCGT) Efficiency ~ 60 %

Typical: 1000 MW power


plant (CCGT)
Minimum: 450 MW (~13
Bcf/y)

Source: Intl Gas Union

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
10
8

Natural Gas to Chemicals:


Chemical Industry Feedstock

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)

Gas to Liquids (GTL):


Gas to Chemicals & Fuels
Methane

Marine CNG
Under the
Hood
10
9

Steam, Air

Natural Gas
Natural
Gas
Processing
Processing

Fischer-Tropsch,
Fischer-Tropsch,
Upgrading
Upgrading

Naphtha,
Diesel,
Waxes

Ammonia
Methanol
Ethane,
Liquids
Crude Oil

GTL

Syngas (H2 + CO)

Natural Gas

Hydraulic
Fracture
Design
ESP
Monitoring

Reforming
Reforming

Naphtha,
Gas Oil

Refinery
Refinery

Olefins,
Aromatics
Benzene,
Toluene,
Xylenes

Nikolaou
Intelligent
Energy

Natural Gas-Based vs. OilBased Routes

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
11
0

Chemicals

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD

Gas to Liquids (GTL):


Very-Large or Very-Small Scale
Pearl integrated gas and GTL (Qatar)
1600 MMscf/d of gas resulting in:
140 kbo/d of gas-to-liquids products (2 trains)
120 kbo/d of natural gas liquids and ethane

$19 billion

Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
11
1

Source: shell.com

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
11
2

Export Potential in North


America...

Nikolaou
Intelligent
Energy

Export Potential in North


America...
Sabine Pass, Louisiana

Oil & Gas


and
Computers

Regasification
Regasification
Terminal
Terminal

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring

Liquefaction
Liquefaction
Terminal
Terminal

Marine CNG
Under the
Hood
11
3

Source: Cheniere

Nikolaou
Intelligent
Energy

Complementing Global Gas


Trade Flows

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
11
4

Source: BP Statistical Review (201

Nikolaou
Intelligent
Energy

Trucking with LNG

Baytow
Oil & Gas n,
and TX
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG

Ontario,
Under the CA

11
5

Hood

Source: NY Times, April 23, 2013

Nikolaou
Intelligent
Energy

Oil & Gas


Energy
and
Sources
Computers
MPC for
Energy
and
MPD
the Planet
Cementing
Producing
Well(s)

Fuels

Hydraulic
Oil
Fracture
Design

Natural Gas

ESP
Monitoring
Renewables
Marine CNG

Closing
Thoughts
Under
the

11
6

Hood

RENEWABLES

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring

Renewable Sources
Hydropower
Biomass
Wood and Wood Waste
Waste-to-Energy (MSW)
Landfill Gas and Biogas

Biofuels: Ethanol & Biodiesel


Wind
Geothermal

Marine CNG
Under the
Hood
11
7

Solar

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers

Why Biofuels?
CO
CO22 CO2 CO2 CO2 CO2

MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
11
8

Photosynthesis:
Photosynthesis:
CO
CO22+H
+H22Osugars+
Osugars+
O
O22

Water
Fertiliz
er
Energy

Nikolaou
Intelligent
Energy

Net Energy Ratio for Corn


Ethanol

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
11

9
11

Data Source: Farrell et al., Science, 181, 506

Nikolaou
Intelligent
Energy

Quiz:
Going with the Wind

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design

Growi
ng
fast

ESP
Monitoring
Marine CNG
Under the
Hood
12
0

Source: The National Academies,

Nikolaou
Intelligent
Energy

Solar Cells: A Case for


Creativity

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
12
1

Source: www.eia.gov

Nikolaou
Intelligent
Energy

Solar Cells: A Frenzy of


Activity

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Source: Department of
Energy, SunShot Vision Study,
Well(s)
2012.
www1.eere.energy.gov/solar/p
dfs/47927_chapter4.pdf

Hydraulic
Fracture
Design

ESP
Monitoring
Marine CNG
Under the
Hood
12
2

Nikolaou
Intelligent
Energy

May Be Closer than They


Appear

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
12
3

Source: Department of Energy, SunShot Vision Study, 2012.

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
12
4

Efficiency: A Big Energy


Source
Car engines
Industrial
Efficiency
Refrigeration
Lighting
Heating & Cooling

Engineeering
Challenges
Materials
Process/Product
designs
Controls
Work flows

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
12

12
5

Energy in a Bottle:
The Need for Energy Storage and Portability

Hydrogen & Fuel Cells: No CO2


Batteries
Chemicals

Nikolaou
Intelligent
Energy

Quiz:
Hydrogen

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
12
6

Source: The National Academies,

Nikolaou
Intelligent
Energy

Batteries

Oil & Gas


and
Computers
MPC for
MPD
Cementing
Well(s)
Hydraulic
Fracture
Design
ESP
Monitoring
Marine CNG
Under the
Hood
12
7

Source: www.teslamotors.com

Nikolaou
Intelligent
Energy

Oil & Gas


Energy
and
Sources
Computers
MPC for
Energy
and
MPD
the Planet
Cementing
Producing
Well(s)

Fuels

Hydraulic
Oil
Fracture
Design

Natural Gas

ESP
Monitoring
Renewables
Marine CNG

Closing
Thoughts
Under
the

12
12
8

Hood

CLOSING THOUGHTS

Nikolaou
Intelligent
Energy

Oil & Gas


and
Computers
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12
9

Especially about the Future

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13

13
0

Summary
Plenty of energy around!
The real problem: Energy in a bottle

At the right time


At the right place
Economically
Without adverse effects

Hydrocarbons dominant well into the future


~80%+
Natural gas significance to continue increasing

Increasingly important role of engineers

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13
1

Additional Reading

http://needtoknow.nas.edu/energy/
http://www.eia.gov/
http://iea.org/
http://nsl.caltech.edu/energy
http://www.mckinsey.com/insights/energy_r
esources_materials

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Under the
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13
2

Nikolaou
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Energy

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Under the
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13
3

BEYOND THIS SLIDE IS DIFFERENT


PRESENTATION

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Top-10 Global Problems

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13
4

Energy is the
biggest
scientific and
technological
problem
facing our
planet in the
next 50 43
years.
R. E.
Smalley, 2005

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13
5

Are We Running out of


Energy?
Hubberts peak

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13
6

US Oil: Production and


Reserves

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The Global Energy Mix

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Quadrillion
Btu/year

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13
7

Source: US Energy Information Administration, 2

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13
8

US Natural Gas:
Production and Reserves

Intelligent
Energy

100

MPC for
MPD

80

Hydraulic
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ESP
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Marine CNG
Under the
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13

Energy Return on
Investment (EROI)

Oil & Gas


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Computers

Cementing
Well(s)

Need to Spend Energy to Make


Energy
Source: C.A.S. Hall,
http://www.theoildrum.com/node/3810

US
Domest
ic Oil
1930

Coal

60

40

20

Firewood
Hydro

Nikolaou

US
Importe
d Oil
1970

Wind

PV-solarNucle
Biodiesel ar
Tar Sands
0
10

US
Domest
ic Oil
2005

US
Domes
tic Oil
1970
Natur
al Gas

20

US
2005
US
Imported
Oil
2005

30

Total
Energy
(Quad
100

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14
0

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ESP
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Marine CNG
Under the
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14
1

Pivotal Technologies for Oil &


Gas

3D Seismic
Directional Drilling
Hydraulic Fracturing
Emerging
Intelligent Fields

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14
2

Enabling Technologies for


Intelligent Fields
Computer/Computing
Simulation, Optimization, History matching,
Visualization

Sensor/Actuator
Measurement while drilling (MWD)
Directional information
Drilling mechanics (velocities, mud properties, P, T,)
Rock formation properties (viscosity, permeability,)

Production-related
Bottom hole P, T
Limited measurements on multi-phase flow rates
Remotely activated valves (smart wells)

Communication/data transmission
Mud pulse telemetry
Wired drill pipe

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Under the
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14
3

Nikolaou
Intelligent
Energy

Drilling Hydrocarbon Wells


Hoist

Oil & Gas


and
Computers

Hydraulic
Fracture
Design

Rotating drum
(Draw-works)c

Under the
Hood
14
4

Rotating
head

Mud
pump

Mud pit

ESP
Monitoring
Marine CNG

Top drive motor

Mud hose

Blowout
preventer

Drill pipe

Well
Rock
formation

30-70 m

Cementing
Well(s)

Steel cable

Drill collar

Spare pipe

Casing
Drill bit

0-8 km

MPC for
MPD

Derrick

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Energy

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Computers

Drilling Hydrocarbon Wells


Offshore
Rock
Offshore
platform

Mud

MPC for
MPD

ESP
Monitoring
Marine CNG
Under the
Hood
14
5

Riser

< 7 km
0-7

Hydraulic
Fracture
Design

< 3 km

Cementing
Well(s)

Annulus
(Mud &
cuttings)

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Marine CNG
Under the
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14
6

The Drilling Process


Long history of development
Mix of
Work flows
Automated tasks

Emphasis on safety
Example: How to handle a kick
Drillers method
Wait-and-weight method (aka Engineers method)

Very expensive
Minimize drilling time (maximize rate of penetration)
safely
Example: Optimize weight on bit

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Marine CNG
Under the
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14
7

Drilling Control
Mechanical system issues
Mechanical integrity and resiliency
Vibration control
Equipment health monitoring

Process control issues


Drilling fluid flow and consistency
Borehole pressure management
Control of surface facilities
Pumps, mixers, storage tanks...

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ESP
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Under the
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14
8

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Intelligent
Energy

What is Shale Gas?

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14
9

Source: Holditch and Associat

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15
0

U.S. Shale Gas Resources

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15
1

Moving Horizon

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15
2

2D Seismic Section of Holly


Branch

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Existing Wells Data

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Under the
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15
3

Source: Anadarko

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Under the
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15
4

Pattern Extraction

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15
5

Developing Insight

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15
6

Discerning Important Features

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Under the
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15
7

Hydraulic Fracture Design

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Under the
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15
8

Optimizing Hydraulic Fracture


Design

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Under the
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15
9

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Energy

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Hydraulic
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ESP
Monitoring
Marine CNG
Under the
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16
0

Concluding Remarks
Good potential for impact of computer-aided process
engineering on oil & gas industry
Drivers
Safety
Economics
Emerging technologies in the field

Parallels in
Process systems
Aerospace systems

Abundance of relevant theory


Selecting the right tool may not be obvious

To maximize impact
Adopt right tools
Involve end-user early in developments

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Under the
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16
1

EXTRA SLIDES

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Intelligent
Energy

Can We Use Much Less


Energy?

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Under the
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16
2

Source: The National Academies Press, Americas Energy Future.

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Fossil Fuels in Recent History

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Industrial
Revolution:
Biomass and Coal

20th Century: Oil

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ESP
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Marine CNG
Under the
Hood
16
3

You
are
here
Source:

Nikolaou
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Energy

Reducing Carbon Intensity of Global Energy


Mix:
A Historical Imperative

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16
4

Diesel (Oil)

Methane (Natural Gas)

M. I. Hoffert et. al., Nature, 1998, 395, 881

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Fossil Fuels in the Future


The Stone Age did not end due to shortage of
stones.
Sheikh Yamani, 1970s
The Guano Age did end due to shortage of
guano.
Guano mine
Chincha
Islands, Peru
circa 1860

Haber-Bosch
process

ESP
Monitoring
Marine CNG
Under the
Hood
16
5
165

Source: Wikipedia

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16
6

Putting Energy in a Bottle:


Petroleum and Technology
Hubberts peak

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16
7

US Oil Production:
Pushing Hubberts Peak

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16

8
16

US Natural Gas Production:


Pushing Hubberts Peak More

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Computers

Example: Oil Use in the US


Transportation: Almost entirely on oil
Electricity: Almost no oil

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16
9

Source: US Energy Information Administration, 2

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Intelligent
Energy

Fossil Fuels in the Future

Oil & Gas


and
Computers

The Stone Age did not end because of


shortage of stones.
N. Lewis, 2007

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Under the
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17
0

The Guano Age did end (almost) because of


shortage of guano.

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Drillers Method: IADC


Worksheet

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17
1

Shut-In Drill
Pipe Pressure

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Under the
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17
2

What if Well Control is Lost?


Deepwater Horizon platform on the
Macondo Well

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Automation: A Multi-Level
Framework
Business Headquarters

Capacity Planning Design


[months/years]

-Asset life cycle and installed based maintenance or growth


-Supply Chain Management & Market and customer demands

Operational Planning
[months/years]

-Planning of injection/production plan and resources


-Planning drilling and workover resources
-Supply Chain Management & Market and customer demands

Scheduling
[days/months]

-Scheduling of injection/production plan and resources


-Opening and closing wells or partial completions
-Adjusting well operating parameters

Hydraulic
Fracture
Design

Supervisory Control
[minutes/hours]

-SCADA systems for coordinating flow stations and pipelines


-Gas distribution/optimization on a pipeline network
-Monitoring wellheads, multiples and flow stations

ESP
Monitoring

Regulatory Control
[sec/minutes]

-Flow, pressure and temperature in wells and separator


-Fuel injection to produce heat out of a boiler

Marine CNG
Under the
Hood
17
3

Well & Surface facilities

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Under the
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17
4

Is More or Less Automation


Better?
Importance of situational awareness
(Norman, 1990)

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Marine CNG
Under the
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17
5

Managed Pressure Drilling


(MPD)
Adaptive drilling
process used to more
precisely control the
annular pressure profile
throughout the well
bore
Official SPE/IADC
definition

MPD variants
Pressurized Mud Cap
Constant Bottomhole
Pressure
Reverse Circulation
Dual Gradient