Reservoir Engineering for Other

Disciplines
• Reservoir Volumetrics and Reserves
Reservoir Volumetrics and Reserves

Gas-Oil Contact (GOC)

m3 or

Oil-Water Contact (OWC)

barrels and scf

 How much oil and gas is in our reservoir?

 How much of the oil and gas in our reservoir

can we produce
SPE/WPC/AAPG Resources Classification System
Types reserves comercial

Proved Posible
Probable
 Undiscovered

Discovered Subcomercial - Recursos Contingentes

1. Perforación exploratorio Ok
2. Perforacion de 2 pozos confirmatorios

3. Programa de desarrollo perforar mas pozos

4. Esquema de explotación
5. Ducto para transporte
6. Venta disponer de la produccion
 Reservoir Volumetrics and Reserves
Must be clear about difference between

RESOURCE and RESERVE

Volume of the
Hydrocarbons-in-place = RESOURCE = Ni OOIP

Volume of the
Hydrocarbons recoverable = RESERVE = Np = Qo x Tiempo

RESERVE = RECOVERY FACTOR = Np/ Ni

RESOURCE (Usually expressed as a percentage)
Boi = bbl /STB

RF = Gp/Gi
 Calculation of Volume of Hydrocarbon in Place

 We need to know:
1. Volume of structure containing hydrocarbon
• Bulk Rock Volume or “BRV.”
2. Average porosity and net-to-gross ratio of
rock in the hydrocarbon-bearing zone, (Φ,n/g)
3. Average water saturation in the hydrocarbon-bearing
zone, Sw
4. Fluid formation-volume-factor, Bo, Bg

Ni = 7758 * Area*Hnet*porosity*(Soi)/Boi

Gi = 43560 * Area*Hnet*porosity*(Sgi)/Bgi
 Volumetric Calculation
 Then:

⎛⎜ ⎞
BRV   1  wS
n
⎟ g
HCIP  ⎝ B
⎠

Ni = 7758 * A* H*porosidad* Soi / Boi

 Calculation of Volume of Hydrocarbon in Place (

 For a reservoir with little structural relief then

crest
h1 h2 h3 OWC

Cross-sectional
~ n
area A
h  hi
i1

n
 and A h  n 1  S 
w
g
HCIP 
Bo
 or, in field units
7758 A h 
n
g
1 Sw 43560 Ah  n 1 Sw
g
OIP   GIP  
Bo Bg
Data Sources for HCIP Calculations
Parameter Source
A Geologic maps derived from structural
studies, local 2-D or 3-D seismic surveys,
stratigraphic studies
h, Logs, cores, geologic mapping
neta/gross
Φ Logs, cores, calibrated 3D seismic

Sw Logs, cores, capillary pressures

Bo, Bg Laboratory analysis of fluid sample,

correlations
 Alternate Approaches to HCIP Calculation

 Depending on quality/quantity of available data and

accuracy required in results we can use different types
of calculation methods:
1. Deterministic
2. Scenario
3. Probabilistic
Ni= 7758 *A*H*poros*So/Boi
Porosidad 10 20 30 MIN PROB MAX 90% prob 50% prob 10% prob

H 50 60 70

So 0.7 0.75 0.8

Area 100 200 300

Método Montecarlo

Si tenemos un campo de 50 MMSTB in place , podriamos perforar 4 pozos recupero 2 MMstb

 HCIP Calculation Methods

1(a) Deterministic—Single
Cell

 If insufficient data to subdivide reservoir into

zones of similar character then:
– Define single (average) values for each variable
– Input to appropriate HCIP equation
– Obtain single-value result
 HCIP Calculation Methods

1(b) Deterministic—Multicell
 If reservoir description is detailed, then subdivision
of reservoir into cells of similar character may be
possible.
 Estimate HCIP for each cell, using method of 1(a)
– Sum results from each cell
– Obtain a single-value result

 This is an approach adopted in geo-cellular models

such as PETREL (could have more than 10 x 106
cells!)
 HCIP Calculation Methods

•2. Scenario
 This is a variant of the Deterministic Method
– Define a small number of different possible
geological/petrophysical cases —e.g. Low, Medium,
High
– Obtain, for each case, input data to the standard HCIP
equation
– Obtain a range of possible values for HCIP
 HCIP Calculation Methods

3. Probabilistic
– Derive probability-distribution curves for each of
the input parameters in the HCIP equation
– Use Monte Carlo analysis to
introduce probability-distribution
A curves for HCIP
h

Φ
Analyses Probability

n/g
HCIP
Sw

Bo
 HCIP Calculation Methods

Method Advantages Disadvantages

Deterministic • Quick, easy to • Single-point
apply results
• Assumptions are • No
clear indication of
uncertainties
or critical
variables

Ni= 7758 *A*H*poros*So/Boi

 HCIP Calculation Methods

Method Advantages Disadvantages

Scenario • Range of values • Likely to yield
obtained for HCIP some extreme
values
• No probability
associated with
results
• Difficult to
identify critical
variables
 HCIP Calculation Methods

Method Advantages Disadvantages

Probabilistic • Range of values for • Need extensive
HCIP with data-set
associated
probability • Need suitable
software
• Key variables
identified
• Extend analysis to
obtain risked
production profiles

Q = 1.127 K* A*H* dP /(viscosidad*dX)

P1 P2
K permeabilidad
A area de la sección de flujo Q Q
A H
H altura o espesor de la arena
dX
 Calculation of Reserves
 When HCIP has been obtained then:
d)
a)
gas
oil
Reserves = HCIP * Recovery Factor oil
water
water

 How do we find Recovery Factor? oil

b)
 Mechanism drive reservoir naturally
oil

water  Solution gas 10-20% factor recovery

 Gas Cap 10-30%
gas
c)
 Water drive 30-60%
oil
water
 Segregation 10-40%
 Compactation 5-10%
 Recovery Factor Estimation

 Degree of complexity used in recovery factor

calculation depends on:
– Quantity/quality of data available
– Purpose for which answer is required
 Sometimes we will use correlations or
analog analysis.
 After the start of production we may use
material balance methods.
Often numerical simulation is required.
Area = 1000acres
Zona noroeste = acreaje por pozo 10 – 60 acres
Zona de selva = acreaje por pozo 60-120 acres
60 acres por pozo 1000/60 17 pozos puedo perforar en esa zona
120 acres por pozo 1000/120 8 pozos puedo perforar en esa zona
H
 Recovery Factor
 There are several different types of recovery:
 Primary Recovery:
– Hydrocarbons produced due to natural energy of the
reservoir and aquifer
 Secondary Recovery (or Improved Recovery):
– Additional hydrocarbon produced due to energy we have
added to the natural system by injection of an “inexpensive”
fluid
– For oil reservoirs:
• Pressure maintenance
• Gas/water flooding
– For gas reservoirs:
• Dry-gas injection
• Water production
 Recovery Factor (continued)

3. Tertiary Recovery (or Enhanced Recovery)

• Additional hydrocarbon produced by injection of
“expensive”fluids
• Modifies reservoir rock or fluid properties to
improve sweep and/or lower residual saturations
• Typically uses chemical, miscible, or thermal
processes
Total Recovery Factor =
Primary Recovery Factor +
Improved Recovery Factor +
Enhanced Recovery Factor
 Recovery Factory
 Recovery Factor depends on:
– Reservoir Geometry:
• Pore System, absolute permeabilities, fluid saturation
distribution
– Fluid Properties:
• Compressibility, viscosity, FVF, GOR
– Rock Properties:
• Compressibility, relative permeabilities
– Aquifer Properties:
• Volume, permeability, connection to reservoir
– Rate Profile
• Oil, gas, water production and injection versus time
– Field Economics:
• Product prices, operating costs, investment costs and timing,
taxes, royalties
 Range of Recovery Factors
Oil Reserves % OOIP Key Variables
Undersaturated Expansion 3-5% Rock Compressibility
Gas-Oil Relative
Solution Gas Drive 10-17%
Permeability
Aquifer Strength
Water Drive 40-60%
Producing Rate
Gas Cap Integrity
Gas Cap Expansion 40-60%
Producing Rate

Gravity Drainage 60+% Formation Dip Permeability

Volatile Oil - Oil 17-25% Condensate Content of

- Gas 60-80% Separator Gas
 Range of Recovery Factors
Gas Reservoirs % OGIP Key Variables

High Permeability, Volumetric 70-90% Abandonment Pressure

Low Permeability, Volumetric 40-60% Well Spacing

Aquifer Strength
Water Drive 50-70%
Producing Rate

Gas Condensate
% OGIP % OOIP Key Variables
Reservoirs
Condensate Yield
Pressure Depletion 70-90% 30-70%
API Gravity
Aquifer Strength
Water Drive 50-70% 40-65%
Producing Rate
 Reserves Evaluation summary

Calculate HCIP

Define possible development plans

Calculate production profile

Make economic evaluation

Calculate: Identify:
Primary Recovery SFR (“Scope for Further
Improved Recovery Recovery”)
Enhanced Recovery
CAUTION!

 Not all of a resource is

recoverable
 Not all HCIP is
Reserves

 Resources/HCIP
includes:
– Hydrocarbon not fully appraised,
areally or vertically
– Hydrocarbon not economic to
produce with current technology
– Hydrocarbon with no market
agreed
– Hydrocarbon not producible within
lease-life
 Reserves Reporting

 Knowing size of reserves is critical for both

oil companies and oil-rich countries
 Strict definition of reserve terminology is
essential to enable valid comparisons and
prevent misunderstandings or fraud
 Reserves Reporting

 Two contrasting approaches to reserves

calculation and reporting
• Deterministic
• Probabilistic

 Deterministic methods applied in early years

of industry but now probabilistic approach is
more common
 In both methods, reserves are usually
quoted in several subcategories
 Reserves Reporting

 Deterministic Method
 Reserves typically divided into:
Producing “PDP”
Developed
•Prove Non-Producing “PDNP”
d Undeveloped “PUD”
•Probable
•Possible

 Rigorous definitions for proved but not for probable

or possible categories
 Reserves Reporting
 Probabilistic Method

 Reserves typically subdivided into:

P90
• Proved; 90% chance actual recovery
P50 will exceed this level

•
P10
Probable; 50% chance actual recovery
will exceed this level
• Possible; 10% chance actual recovery
will exceed this level
 Reserves Reporting
 Long history of attempts to standardize reserves definitions:
Date Agency Basic Approaches
1940s API Deterministic
1965 SPE Probabilistic
1978 US SEC Deterministic*
1981 SPE Probabilistic
1982 USGS Probabilistic
1987 WPC Probabilistic
1997 SPE/WPC Probabilistic (reserves)
2000 SPE/WPC/AAPG Probabilistic (resources)
2005 SPE Mapping of major world** systems
* allows inferences from probabilistic model
** US SEC, GS; UK SORP, Canada, Russia, China, Norway, UN
 Reserves Reporting

 In commercial world US SEC approach

dominates, US-quoted companies can only
disclose “proved reserves,”compatible with
SEC regulations
 Internally, major companies use variations
on SPE/WPC methods rather than US SEC
 Oil-producing countries are secretive about
their reserve calculations but almost certainly
also use SPE/WPC-based methods
 Reserve Reporting

 US SEC definition of “Proved Reserves,”:

 “Proved oil and gas reserves are the

estimated quantities of crude oil, natural gas
and natural gas liquids which geologic and
engineering data demonstrates with
reasonable certainty to be recoverable on
future years from known reservoirs under
existing economic and operating conditions.”
– Regulation 210.4-10
 US SEC Reserve Definitions

 What does PROVED mean?

– Mapped areal extent of reservoir confirmed by
drilling
– Mapped vertical extent of reservoir, defined by
crest of structure and fluid contacts, observed
directly. In absence of direct
observations then Lowest Known Oil (LKO)
taken as Oil-Water Contact (OWC), etc.
 US SEC Reserve Definitions

 What does PROVED DEVELOPED

PRODUCING mean?
 Hydrocarbon is “proved” AND:
– Will be produced from existing wells
– Completions are open and flowing at time of
reserve estimate
– Pilot or actual improved recovery project is
already in operation (if other than primary
recovery is claimed)
– Production Facilities are already installed—or
require relatively minor additional
expenditure
 US SEC Resource Categories

 What does PROVED DEVELOPED NON-

PRODUCING mean?
 Hydrocarbon is “proved AND:
– Will be produced from existing wells
– Completions are temporarily shut-in, or are yet to
be made (“Hydrocarbon behind pipe”)
– Production Facilities are already installed—or
require relatively minor additional
expenditure
 US SEC Reserve Categories

 What does PROVED UNDEVELOPED

mean?
 Hydrocarbon is “proved” BUT:
– Will be produced through new well, in undrilled
area, or by deepening existing wells to a different
reservoir
– Production Facilities still require relatively large
expenditure
– May include secondary or other recovery for
which pilot/actual scheme is not operational
Problems with use of US SEC Reserves Definitions

 Definition of “existing economic conditions”— SEC

insists on end-year costs/prices for end-year
reporting
 Definition of “existing operating conditions”— of
rapid technologic advance
 Requirement for delineation/appraisal drilling—no
longer practicable or required by industry
 Conservative approach leads to repeated
revisions/increasing reserve estimates as developed
percentage of reservoir increases
 Give illusion of “reserves growth”
Problems with Strict Applications of US SEC Reserve
Definitions

LKO
OWC

HKW Depth LKO

OWC
HKW

Oil in this interval

cannot be claimed Pressure
as proved
HKW
Well
OWC Drainage
LKO Radius
Proved
Area

Oil in this area cannot be

claimed as proved unless
“conclusive, unambiguous
technical data”
SPE/WPC/AAPG Resources Classification System

Journal of Petroleum Technology, Nov. 20005

SPE/WPC/AAPG Resources Classification System
Current Estimates of World Oil Reserves

BP Statistical Review of World Energy 2006

Current Estimates of World Oil Reserves

BP Statistical Review of World Energy 2006

Current Estimates of World Oil Reserves

BP Statistical Review of
World Energy 2006
Current Estimates of World Gas Reserves

BP Statistical Review of World Energy 2006

Current Estimates of World Gas Reserves

BP Statistical Review of World Energy 2006

Reservoir Engineering for Other

Disciplines Reservoir Volumetrics
and Reserves - 4.1.48
Current Estimates of World Gas Reserves

BP Statistical Review of
World Energy 2006