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SC RE Chap 1-Intro
SC RE Chap 1-Intro
Adrian C Todd
History of Reservoir Engineering
Traced to mid 1930’s
1994 Dake in ‘Practise of Reservoir Engineering.’
– ‘Reservoir Enginering shares the distinction with geology in
being one of the ‘underground sciences’ of the oil industry,
attempting to describe what occurs in the wide open spaces
of the reservoir between the sparse points of observation -
the wells’
Integration of Reservoir Engineering
Roles of the Reservoir Engineer
Contributing with geologists and
petrophysicists in estimation of oil-in-place
Determining fraction of oil-in -place that can
be recovered.
Attach a time scale to the recovery.
Day-to-day operational reservoir engineering
throughout the project lifetime.
Activities of Reservoir Engineering
Reserve Estimation
Development Planning
Production Operations Optimisation
Reserve Estimation
The reserves are the main assets of an oil
company.
Quantifying reserves and recovery factor is an
ongoing role of the reservoir engineer.
Basic data not always straightforward.
Reserves can be affected by the development
process
Reserve Estimation
Geophysical
estimates from
seismic interpretation
Reserve Estimation
Log Analysis
estimates of porosity
and fluid saturation
Reserve Estimation
Laboratory measurements to measure
recoverable oil
Reserve Estimating
Not exclusive to reservoir engineers
Volumetric estimates of reserves obtained at
various stages
STOIIP - stock tank oil initially in place
Optimal Development Planning
Large up front investment
Optimal Development Planning
Requires detailed understanding of the
reservoir characteristics
Optimal Development Planning
Various development options to be
considered
Production Operations Optimisation
Rarely do reservoirs perform as predicted
The reservoir engineering model has to be
updated in line with the production behaviour.
Reservoir Engineering Techniques
Traditional reservoir engineering tools were designed
around slide rule and graph paper.
Increasingly advanced computing capability is
enabling large ‘simulations’ to be carried out
Available data
Geophysical surveys
Well logs
penetration
cuttings
– electrical
– sonic
– nuclear
Pressure data
Formation fluid content data
Tools of the Trade
Seismic maps
Structural maps
Well logs
Porosity maps
Sections
Understanding the
geological model
Pressure
measurements
Imagination.
Isopach maps
Geological model
Petroleum Reserves Definitions
Subject of study for some time.
Agreed definitions by SPE and WPC in 1996.
Recognises that not practical to have precise
classification because of different forms of
occurrence, wide characteristics, uncertainties
of geological environment, and evolution of
technologies.
Petroleum Reserves Definitions
Essential that governments and industry have
a clear assessment of quantities available and
anticipated within practical time frame through
additional field development, technological
advances, or exploration.
Important that a consistent nomenclature be
used by industry to define reserves.
Reserves Definitions
Reserves are those quantities which are
anticipated to be commercially recovered from
known accumulations from a given date
forward.
Reserve estimates involve some degree of
uncertainty.
Uncertainty depends on reliable geological and
engineering data available at the time of estimate
and its interpretation.
Reserve Uncertainty
Relative uncertainty expressed by placing
reserves into two classifications.
Proved
Unproved-less certain than proved. Further
subdived to express increasing uncertainty.
Probable
Possible
Methods of Estimation
Deterministic
– A single best estimate of reserves bases on
known geological, engineering, and economic
data.
Probabilistic
– Known geological, engineering and economic
data are used to generate a range of
estimates and their associated probabilities.
Proved Reserves
Those reserves which by analysis of
geological and engineering data , can be
estimated with reasonable accuracy to be
commercially recoverable from a given date
forward from known reservoirs and under
current economic conditions, operating
methods and government regulations.
Developed and Undeveloped
Proved Reserves
Deterministic methods
– reasonable certainty to express a high degree
of confidence that quantities will be
recovered.
Probabilistic methods
– at least 90% probability that the quantities
actually will equal or exceed the estimate.
Proved Reserves
Reserves are considered proved if
commercial producibility is supported by
actual production or formation tests.
In certain cases proved reserves may be
allocated on the basis of well logs and/or core
analysis that indicate that the reservoir is
hydrocarbon bearing and analogous to
reservoirs in the same area that are producing
or have demonstrated the ability to produce
on formation tests.
Proved Reserves
The area of the reservoir includes:
the area delineated by drilling and defined by contacts,
if any.
The undrilled portions of the reservoir that can be
reasonably judged as commercially productive on the
basis of available geological and engineering data.
If no fluid contacts, lowest occurrence of hydrocarbons
controls the proved limit unless indicated by definite
geological, engineering or performance data.
Test 1
There are 950 MMstb of oil initially in place in a reservoir.
It is estimated that 500 MMstb can be produced. Already
100MMstb have been produced. What are the reserves?
There are 950 MMstb of oil initially in place in a reservoir.
It is estimated that 500 MMstb can be produced. Already
100MMstb have been produced. What are the reserves?
What is wrong with the following statement ?
– Reserves are those quantities which are
anticipated to be recovered from a petroleum
accumulation
Test 3
What is wrong with the following statement ?
– Reserves are those quantities which are
anticipated to be recovered from a petroleum
accumulation
Answer
– Reserves are those quantities which are
anticipated to be commercially recovered.
Economics is very important aspect
Economics
Oil and gas price ?
Inflation?
Future economic trends?
Discount factors etc?
Answer-
The current economic conditions are the basis re;- prices
– costs
– contracts
– government regulations
Test 4.
We have a structure in an area which we expect to explore.
We anticipate it to contain a STOIIP of 2000MMstb, and a
recovery factor of 65% using primary recovery (30%),
secondary (25%) and tertiary (10%) recovery methods.
What are the reserves?
Answer:SPE/WPC - zero. Intentions are not a basis
for reserves. No well has yet been drilled.
Some companies will allocate potential reserves for internal
use. Cannot be used for public or government figures.
Requirements for proved reserves
Maps
– from seismic and geological data.
Petrophysical logs
Well test results and rock properties from recovered
core.
Facilities
– Necessary facilities for processing and transport
either in place or will be installed as backed up by
formal contract
Contributions to the Proved Reservoir Area
This comes from the drilled and produced
hydrocarbons
the definition of the gas and oil and water
contacts
or the highest and lowest observed level of
hydrocarbons.
Also the undrilled area adjacent to the drilled can
be used.
Reserves - progression with time
Probabilistic Representation of Reserves
In the deterministic approach volumes are
determined by calculation of values
determined for the various parameters.
With the probabilistic approach statistical
analysis is used. e.g. Monte Carlo methods
Probabilistic Representation of Reserves
Proven - 90% probability
Probable - difference
between 50 & 90%
Possible - difference between
10 & 50%
Probabilistic Representation of Reserves
Some measure of subjectivity. For each element there is a
probability function.
Probabilistic Representation of Reserves
Proven = 500MMstb,
Probable =740-500=240MMstb
Possible =860-740=120MMstb
Probabilistic Representation of Reserves
As field is produced the shape of the curve changes. Probability
converted to recovery leaving less uncertainty in reserves.
Volume in-place calculations
Volume of oil and gas in-place, V, depends on:
aerial coverage of reservoir , A.
Thickness of the reservoir, hn.
Pore volume, expressed by porosity,
Proportion of pore space occupied by hydrocarbon, (
the saturation ), 1-Sw
V=Ah n (1 Sw )
When expressed as stock tank volumes
equation divided by Bo or Bg
V=Ah n (1 Sw ) / Bo
Volume in-place calculations & Reserves
STOIIP=V=Ah n (1 Sw ) / Bo
Reserves = STOIIP R F x
Proved
Probable Probable
Possible Possible
Evolution of the reserve estimate
Evolution of the reserve estimate
Evolution of the reserve estimate
Evolution of the reserve estimate
Deterministic perspective as indicated by top structure map
Formation Volume Factors Oil,Bo and Gas, Bg
Formation volume factors convert reservoir volumes
to surface volumes.
They do not vary significantly across the reservoir
compared to other rock related properties.
In some reservoirs there is a compositional gradient
which results in variations in the oil formation
volume factor
In this case average or values measured at depth
would be preferred
Recovery Factor
Proportion of hydrocarbons recovered called recovery
factor.
Influenced by a range of properties.
Rock and fluid properties.
Drive mechanisms.
Formation characteristics & heterogeneity
Development process
Geometry and location of wells
Other Appraisal Tool - Production Test
One of the moat powerful tools for reservoir
engineer.
Used to evaluate the characteristics of the
reservoir under realistic conditions.
Exploration well is turned temporally into a
producing well and downhole pressure
recorded.
Production test - Well Test
Producing interval
Downhole pressure
monitoring
Lines
Pressure declines
in relation to increased
flow 2
Well shut in
and pressure
builds up
Draw down and
build up curves
analysed to give kh
Other Appraisal Tools
Nature of the Fluids - PVT
important for reservoir behaviour and processing.
Pressure profile in a well.
powerful measurements to aid in reservoir structure and
dynamic continuity.
Core analysis
a cross check for downhole measurements and unique
measurements.
Development Planning
An evaluation of alternative plans
Well data and Test Results
Reservoir maps
Material Balance
Drive mechanisms
Reservoir models
Techno economics
Land developments higher degree of flexibility
Offshore developments limited flexibility after production system ordered
Reservoir maps
An evaluation of alternative plans
Development Planning
Drive mechanisms
Simple and complex models
Displacement models for injection processes
Recently, integration of geological and
geophysical perspectives providing greater
confidence in simulation models
Drive mechanisms
2
2
3
3
Development Planning
Production profiles
oil, gas and water
Well requirements
Topside facilities
Uncertainty
Reducing uncertainty is the key issue of the
decade and not least in reservoir engineering and
its related disciplines.
More information gives less uncertainty.
Collecting data costs money
Greater cost the delay on the project.
Tension between reservoir engineers and project
engineers.
Uncertainty - Reservoir
Static properties
Reservoir structure
Reservoir properties, k, h etc
Reservoir connectivity
Impact of faults
‘thief’ sands
Uncertainty - Reservoir
Dynamic properties
Relative permeabilities etc.
Fluid properties
Aquifer behaviour
Well productivity ( fractures, well type, condensate
drop-out etc.
Uncertainty - Reservoir
Material Balance Equation
Pi
Production
Water Influx
Pt
Material Balance Equation
Examines the pressure -volume behaviour of an entire
field
Tank model of the reservoiur
Engineer fits a simple model to the data and predicts
future performance
Model gets updated to match production -history
matching.
Reservoir simulation models comprise many aspects
of material balance
Material Balance Equation
N p Bt Bg R si R p Wp C
B B Bg Bgi Sw c w c f
NBti t ti
m 1 m p We
Bti Bgi 1-Sw
Known : Production data Np, Rp, Wp
HISTORY MATCHING Hydrocarbon Properties Bt, Bti, Bg, Bgi
Reservoir Properties Sw, cw, cf, m
Pressure drop p
Unknown : Reserves N
Water Influx We
Good production records required.
History Matching
– The update of the model in line with actual
performance
Reservoir simulation success depends on
detail of reservoir description and complexity
of reservoir.
Reserve Estimating
When production data available reserves
estimates can be refined.
Historically
– Decline curve analysis
– Material Balance Equation
Computer based reservoir simulation
Decline curve analysis
Plots of production rate versus time, or
production, on a variety of co-ordinate scales
Straight line is considered to characterise
behaviour and is extrapolated to predict future
performance.
Phases of Development
During development a number of phases
the build up phase
– with predrilling may not happen
the plateau phase
– the reservoir is producing at design
capacity for the facilities.
The decline phase
– the reservoir no longer able to
produce at capacity.
– Plateau phase can be extended, eg
use of artificial lift, downhole pumps
or gas lift.
Reservoir Behaviour
Early agreement to
reservoir description
Reservoir Development speeds development
Plan
Dynamic
Reservoir Description
Leman Gas Field UK after first exploration well
Leman Gas Field UK 10years after first exploration well
Reservoir Engineering
A broad fundamental background of basic
sciences and engineering.
The behaviour of the reservoir rocks.
The properties of the contained fluids
Fluid through through reservoir rocks
Reservoir drive mechanisms
How things have changed !!