INTRODUCTION

TO
OIL AND GAS RESERVOIRS
Dr. Ikechukwu Okafor

Nile University of Nigeria, Abuja.

1
LECTURE CONTENTS
•Definitions
•Knowing the Reservoir
•Functions of a Reservoir Engineer and Resources
•Classification of Oil and Gas Reservoirs
•Recovery Methods
•Oil and Gas Reserves
•Units and Dimensions
Oil and Gas Reservoirs
Definition of Terms
Reservoir:
Dictionary meaning- A Place where something valuable is kept in
storage”
Something valuable = Oil and Gas

Engineering definition- A reservoir is a three-dimensional rock body

in the earth space where hydrocarbons (gas alone, oil alone or oil
and gas together) reside with water always present.
Fault
GOC

Spill Point
OWC

3
Pinch Out
Reservoir Engineering
Engineering
• “A science by which the sources of energy in nature are made useful to man”
• “Judicious use of means to accomplish an end”
• Reservoir Engineering:(Calhoun): “The phase of engineering which deals with the transfer of fluids
to, from or through the reservoirs“.
• Reservoir engineering is essentially some combination of Art and Science
Why Art?
• Information is meager and non-definitive
• Risks are not correctly assessed
• Processes are not totally understood
• Controls are not established
Why Science?
• Laws of physics and chemistry are honored

4
Getting to Know Your Reservoir!
Rock Properties
• Lithology
GAS
• Porosity
• Permeability
• Strength
OIL
Fluid Properties
• Type
Habitat
• Physical
• Depth
WATER • Chemical
• Pressure
• Saturations
• Temperature
Rock Fluid Properties
External Features • Wettability
•Shape and Volume • Effective Permeability
•Boundaries • Relative Permeability
• Capillary Pressure
•Aquifer Limits

Energies
Internal Features • Internal
• Faults • External
•Macro/Micro Fractures
• Compartments
• Stratifications
5
• Continuity and Connectivity
 UNDERSTANDING THE RESERVOIR
2. Internal Features
3. External Features 1. Habitat
Faults
Macro/Micro Fractures Earth Stress
Shape & Volume
Compartments Pressure
Boundaries
Stratification Temperature
Aquifer limits
Continuity & Connectivity

4. Rock
Lithology
Porosity 5. Fluids
Permeability Type & Composition
Wettability Distribution
Mechanical Properties Contacts
Properties
Yields
6 From EM Notes
 RESERVOIR KNOWLEDGE
PARAMETER
IMPLICATIONS
RESERVOIR MANAGEMENT ISSUES
Habitat a) Sand production
Depth b) Over/Under /Normal pressure (lost circulation)
Pressure c) Cementing/fracturing
Temperature d) High temperature?
e) State of fluid, etc
f) Gravity effects
Rock Properties a) Sandstone, shale, shaliness, well spacing, packer set point, flow units, etc
Lithology b) Reserve, facility, flowrate, connectivity, etc
Porosity c) Sand production, compressibility, etc
Permeability
Strength
Fluid Properties a) Condensate, dry gas, wet gas, black oil, etc
Type b) Quality of oil
Physical c) Flow assurance issues
Chemical d) Enhanced recovery prospects
Saturation e) Reserves
Rock Properties a) Water wet, oil wet, residual saturation, waterflooding, etc
Wettability b) Initial fluid distribution
Relative Permeability c) Advancement of water front
Cappillary Pressure d) Flowrate
e) Transition zone, interval perforation selection
Energies a) Drive mechanism
Internal b) Enhanced recovery prospects, etc
7 External
 RESERVOIR’S LIFE JOURNEY

Discovery

De
n o

lin
rati

ea
plo

tio
Ex

n
Development
Abandonment
Reservoir
Management

Primary
Tertiary

Secondary

8
9
1
Opp
Ide ortuni
ntifi ty
Op c a ti

2
por on
Eva tu
lua nity
ti
Opp on
Exploration

Pur ortuni
suit ty

3
Op
p
Cap ortun
tur i
e ty
Exp
l
Opp oit
ortu
4
nity
Ap
pra
isa
l

From EM Notes
Ev a
lua
tion
Des
ign
5

Con
stru
ctio
n
Development

Dri
lli ng
Ope
Timing and RM Life Cycle

rati
o n
Production

Aba
ndo
nm
ent
Stage
Life Cycle
 Roles of various Disciplines in Oil and Gas Development
Roles of Various Disciplines in Oil and Gas Developm ent
LIFE CYCLE STA GE GEOSCIENCE RESERVOIR PRODUCTION DECISION
ENGINEERING ENGINEERING POINT
1. Reconnaissance Regional information only Judgement on reservoir size Judgement on Explore basin?
(little or no well/seismic & type, based on global facilities and cost
data) experience on relative basis

2. Play analysis - selection of 2D seismic, no offset wells Probabilistic estimate of Facilities and Acquire acreage?
oil and gas prone area to define size and density of reservoir size & type, using cost estimate
leads analog databases based on nearest
analog project
3. Prospect analysis - 3D seismic integrated with Prediction of fluid properties, Analog data Drill exploration
assessing prospect potential nearby wells reservoir characteristics, scaled to site well?
drive mechanisms from
analogue fields

Exploration and
4. W ell data integrated with 3D Conventional analysis and Facilities lay-out Fund
seismic to build detailed field-wide simulation models plans and costs development?
Appraisal - insuring oil/gas
geologic model to evaluate development specific to actual
presence by wildcat drilling,
plan, and investigate upside case
quantifying volumes and
potential and downside risk
economic attractiveness of the
project
5. Development - Development well data Development drilling data Facilities Development
development by drilling of wells integrated with geologic integrated with detailed construction and meets
and construction of facilities model reservoir models optimizations expectation?
6. Production - producing Production data integrated Monitor performance and Monitor and Abandon?
hydrocarbons in a manner to with geologic model optimize oil/gas recovery optimize well
maximize reserves, planning productivity and
abandonment when production reservoir
10
rates become uneconomical From EM Notes production
 Reservoir Life Cycle
Duration
Activity / Stage (Years) Focus of Activities Targets
Pre-Leasing 1-5 Estimate Volumes/Reserves Project meets selection criteria
Pre-Production 1-3 Prove hydrocarbons; Refine estimates Meets size and economic criteria
2–3
Early Production 4-10 Phased Development Finalize development
4 Rock/Fluid Characterization plan; assess risks
Facilities Installation
Advanced Production 5-15 Development Drilling Sustain plateau production
5 Problems; Remediation while minimizing OPEX
Mature Production 10-50 Infill Wells, Workovers Maximize Reserves
6 Facilities Modification Minimize OPEX

– Peak (Plateau) production rate is dictated by development strategy and economic criteria.
• However, it should not exceed the rate beyond which the ultimate oil recovery is reduced.

Pre-
Production Mature
Early Advanced Production EOR
Production Production

Prod.
Rate
Economic
Limit

0 25 60 100
Depletion (% of Original Reserves), or Time
(attributed to primary drive mechanisms)
11
Functions of a Reservoir Engineer

• A reservoir engineer is involved in the

complete process ....
...from the very first day of the opportunity OWC
identification to the very last day of
project abandonment. He or she is a strong
member of the reservoir management
team.

A reservoir engineer needs information and seeks

assistance/review/guidance from many disciplines.

12
 Contributions of Reservoir Engineering
• Evaluate reservoir development options and select an economic development plan
• Estimate in-place hydrocarbon volumes and producible reserves
• Estimate production rates and volumes
• Identify reservoir and environment-related risks
• Develop risk mitigation plan
• Design well and reservoir monitoring programs
• Participate in development-related drilling
• Plan for production maintenance and enhancement
• Develop production maintenance programs - drilling and workovers
• Monitor state of reservoir depletion and fluid distribution
• Conduct investigative studies in support of current programs and optimization of future rate and
recovery
• Acquire, analyze, interpret data and maintain databank; update and upgrade the
tools employed

13
 TOOLS
RESOURCES CONVENTIONAL
EXPLORATION RESERVOIR ANALYSIS FACILITY
Geophysics PLANNING
Geology • Analogy
• Material Balance ECONOMIC
• Analytical Techniques ANALYSIS

GEOSCIENCE
•Decline Curves
Identification
Characterization
CONTRIBUTIONS
Geologic Model SHORT-TERM RESERVOIR MANAGEMENT
• Depletion plans / Practices
RESERVOIR • Completion / Data Acquisition
ROCK & FLUID • Consulting on Reservoir Matters PROJECT
PETROPHYSICS DESCRIPTION LONG-TERM DEVELOPMENT PLANNING OPTIMIZATION

Log Coring
Logging, / Core / • Primary, Secondary, Tertiary Schemes
• Production / Recovery Forecasts
• Reserves Estimates

PRODUCTION
Performance RESERVOIR
Data End Product
SIMULATION STUDIES
Single Well
• X-Section
LABORATORIES
• Optimized Development Plan
• • Production Profile
PVT •Sector
SCAL • Fieldwide • Reserves
• Recovery Optimization
14 Adapted From EM Notes
Summary of the Functions Of Reservoir
Engineering
 To continuously monitor the reservoir and collect relevant
data and interpret it to be able to:
 Determine (present conditions)
 Estimate ( future conditions) and
 Control the movement of fluids through
the reservoir.
 Objectives of reservoir engineering

1) To enhance ( increase recovery factor) and

2) To accelerate ( increase production rate) the oil recovery.

15
 Basic concerns of Reservoir Engineers
( Reservoir engineer has to continuously determine:)
1. The volume of the initial hydrocarbon present in the reservoir ?
2. How much of the initial fluids have been recovered ?
3. How much is left ?
4. How can we increase recovery economically?
5. What data are needed to answer the questions?
6. How can I measure the performance of the reservoir?
7. How can I improve the performance?

16
Classification of Oil and Gas Reservoirs
 Based on
* Pressure-Volume-Temperature (PVT)
* Reservoir Energy

Classification of Reservoirs based on PVT

Petroleum reservoirs are broadly classified as oil or gas reservoirs.
These broad classifications are further subdivided depending on:
The composition of the reservoir hydrocarbon mixture
 Initial reservoir pressure and temperature
 Pressure and temperature of the surface production

17
Phase Behaviour of HC Systems

Pure Components Behaviour

Binary Mixture Behaviour

Multicomponent / Petroleum System

IPS 18
PURE COMPONENTS DEPLETION

OIL GAS

P1=Psat P2 < Psat P3 < Psat P4 < Psat P5 << Psat

 2 . Pure Component’s Behaviour
Pressure.

LIQUID PHASE . Critical Point C

GASEOUS PHASE (VAPOUR)

Temperature
Vapour pressure curve of a pure component

IPS 21
 Pure Component’s Behaviour

Phase Diagram
Vaporisation
C

Liquefaction

Sublimation

IPS 22
 Phase envelope of a mixture
P-V
Pressure
T3
T2
T1

C
L
V
Psat Bubble
point
Dew point

L+V

Volume
 Binary Mixture Behaviour

IPS 24
 Influence of the composition of the
mixing

IPS 25
 Oil and Gas Reservoirs
Pressure-Temperature Diagram
phase diagrams used to determine different conditions at which hydrocarbon
reservoir exists.

Typical p-T diagram for a multi-component system. 26

Oil and Gas Reservoirs

These multi-component pressure-temperature

diagrams are essentially used to:
 Classify reservoirs
 Classify the naturally occurring hydrocarbon systems
 Describe the phase behavior of the reservoir fluid.

27
 Oil and Gas Reservoirs

Terms used in P-T diagrams

Cricondentherm (Tct)—The Cricondentherm is defined as the maximum
temperature above which liquid cannot be formed regardless of pressure
(point E).
• The corresponding pressure is termed the Cricondentherm pressure pct.
 Cricondenbar (pcb)—The Cricondenbar is the maximum pressure above
which no gas can be formed regardless of temperature.
• The corresponding temperature is called the Cricondenbar temperature Tcb.

28
Oil and Gas Reservoirs

Critical point—The critical point for a multicomponent mixture is

referred to as the state of pressure and temperature at which all
intensive properties of the gas and liquid phases are equal (point C).
 At the critical point, the corresponding pressure and temperature are called
the critical pressure pc and critical temperature Tc of the mixture.
Phase envelope (two-phase region)—The region enclosed by the
bubble-point curve and the dew-point curve (line BCA), wherein gas
and liquid coexist in equilibrium, is identified as the phase envelope of
the hydrocarbon system.

29
Oil and Gas Reservoirs
 Quality lines-The dashed lines within the phase diagram
are called quality lines.
They describe the pressure and temperature conditions for equal
volumes of liquids.
Note that the quality lines converge at the critical point (point C).
 Bubble-point curve-The bubble-point curve (line BC) is
defined as the line separating the liquid-phase region from
the two-phase region.

30
Oil and Gas Reservoirs
Dew-point curve-The dew-point curve (line AC) is defined as the line
separating the vapor-phase region from the two-phase region.
 In general, reservoirs are conveniently classified on the
basis of the location of the point representing the initial
reservoir pressure pi and temperature T with respect to the
pressure-temperature diagram of the reservoir fluid.
Accordingly, reservoirs can be classified into basically two
types. These are:

31
Oil and Gas Reservoirs
Oil reservoirs- If the reservoir temperature T is less than the
critical temperature Tc of the reservoir fluid, the reservoir is
classified as an oil reservoir.
Gas reservoirs- If the reservoir temperature is greater than the
critical temperature of the hydrocarbon fluid, the reservoir is
considered a gas reservoir.

34
Oil and Gas Reservoirs
Oil Reservoirs
Depending upon initial reservoir pressure pi, oil reservoirs can be
subclassified into the following categories:
 Undersaturated oil reservoir.
If the initial reservoir pressure pi, is greater than the bubble-point pressure pb of
the reservoir fluid, the reservoir is labeled an undersaturated oil reservoir.
 Saturated oil reservoir.
 When the initial reservoir pressure is equal to the bubble-point pressure of the
reservoir fluid, the reservoir is called a saturated oil reservoir.

35
 Oil and Gas Reservoirs

 Gas-cap reservoir.
reservoir
 If the initial reservoir pressure is below the bubblepoint pressure of
the reservoir fluid,the reservoir is termed a gas-cap or two-phase
reservoir, in which the gas or vapor phase is underlain by an oil phase.
 The appropriate quality line gives the ratio of the gas-cap
volume to reservoir oil volume.

36
Oil and Gas Reservoirs

General classifications of oil reservoirs includes:

Ordinary black oil
Low-shrinkage crude oil
High-shrinkage (volatile) crude oil
Near-critical crude oil

37
Oil and Gas Reservoirs
Following the pressure
Ordinary black oil reduction path as indicated by
the vertical line EF on Figure
below.
When produced, ordinary black
oils usually yield gas-oil ratios
between 200–700 scf/STB and
oil gravities of 15 to 40 API.
 The stock tank oil is usually
brown to dark green in color.

A typical p-T diagram for an ordinary black oil.

38
Oil and Gas Reservoirs
Low-shrinkage crude oil Oil formation volume
factor less than 1.2
bbl/STB.
Gas-oil ratio less than 200
scf/STB
Oil gravity less than 35°
API
Black or deeply colored

A typical phase diagram for a low-shrinkage oil.

39
Oil and Gas Reservoirs
Oil formation volume factor
High-shrinkage (volatile) crude oil less than 2 bbl/STB
Gas-oil ratios between 2,000–
3,200 scf/STB
 Oil gravities between 45–55°
API
Lower liquid recovery of
separator conditions as
indicated by point G on Figure
below.
Greenish to orange in color

A typical p-T diagram for a volatile crude oil.

40
Oil and Gas Reservoirs
Near-critical crude oil
Temperature near critical
temperature Tc.
GOR in excess of 3,000 scf/STB.
 Oil formation volume factor of 2.0
bbl/STB or higher.

Phase diagram for the near-critical crude oil.

41
Oil and Gas Reservoirs

Gas Reservoirs
In general, if the reservoir temperature is above the critical temperature of
the hydrocarbon system, the reservoir is classified as a natural gas reservoir.
 On the basis of their phase diagrams and the prevailing reservoir
conditions, natural gases can be classified into four categories:
 Retrograde gas-condensate
 Near-critical gas-condensate
 Wet gas
 Dry gas

42
Oil and Gas Reservoirs
Retrograde gas-condensate reservoir
A typical phase diagram of a retrograde system.
If the reservoir temperature T lies between the
critical temperature Tc and cricondentherm Tct of
the reservoir fluid,
The reservoir is classified as a retrograde gas-
condensate reservoir.
Gas-oil ratios between 8,000 to 70,000
scf/STB.
Generally, the gas-oil ratio for a condensate
system increases with time due to the liquid
dropout and the loss of heavy components in
the liquid.
Condensate gravity above 50° API
43
Oil and Gas Reservoirs

Near-critical gas-condensate reservoir. Reservoir temperature near critical

temperature as shown below.
Because all the quality lines
converge at the critical point, a
rapid liquid buildup will
immediately occur below the dew
point as the pressure is reduced to
point 2.

A typical phase diagram for a near-critical gas condensate reservoir. 44

Oil and Gas Reservoirs

Wet-gas reservoir A typical phase diagram of a wet gas is shown,

where reservoir temperature is above the
cricondentherm of the hydrocarbon mixture.
Gas oil ratios between 60,000 to 100,000
scf/STB
Stock-tank oil gravity above 60° API.
 Liquid is water-white in color
Separator conditions, i.e., separator pressure
and temperature, lie within the two-phase
region

Phase diagram for a wet gas.

45
Oil and Gas Reservoirs
The hydrocarbon mixture
Dry-gas reservoir. exists as a gas both in the
reservoir and in the surface
facilities.
The only liquid associated
with the gas from a dry-gas
reservoir is water.
Usually a system having a
gas-oil ratio greater than
100,000 scf/STB is
considered to be a dry gas.

Phase diagram for a dry gas.

46
PETROLEUM FLUIDS

GAS
O

Pressure
O
Tres, Pres

O GAS

CONDENSATE
O
VOLATILE OIL
BLACK
O
OIL
critical

point

Temperature
Surveillance Aspects of PVT behavior-
Production trends during depletion
Summary of Reservoir Fluids
Pressure Relative
Characterizing Reservoir Fluid
(Psig) Volume

7975 0.9395 Bubble Point Systems Dew Point Systems

7540 0.9599
Dry Gas
7250 0.9765 Near Critical

7183 0.9787 Wet Gas

7105 0.9826 Gas Condensate

6960 0.9935 Volatile Oil

6822 1.0000
Black Oil
6743 1.0068
6598 1.0174 100 1000 10000 100000

6380 1.0312 Original Gas-Liquid Ratio, SCF/STB

6090 1.0550
5655 1.0971
Reservoir Fluid
5075 1.1687
4495 1.2632
Reservoir Fluid API Gravity = 48
3915 1.3959
Gas-Liquid Ratio = 4200 scf/STB
3335 1.5841
Based on classification in literature,
2610 1.9773
fluid is
Average Reservoir Tempt= 394 K
Heptane+ fraction =10.5 Gas Condensate
OIL RECOVERY METHODS
Oil Recovery Methods

Secondary Primary Tertiary

Water Gas Miscible Thermal Thermal

Injection Injection Flooding Flooding Flooding

Solution Gas Gas Cap Water

Drive Drive Drive
Factors Affected By Different Recovery
Method
Recovery Methods Forces and Fluid Properties

Greatly Affected
Primary Applied pressure force

(natural energy)

Secondary Applied pressure force

(injected fluid)

Chemical Capillary forces reduced

Thermal Viscous forces reduced

 Forces That Affect Recovery
(1) Viscous forces  m (viscosity)
(2) Capillary forces  cosc (interfacial tension)
(3) Gravity forces  cos
(4) Applied pressure forces  P

Capillary
Force

Viscous Force

Gravity
Force
Note:
If viscosity is high, it is more difficult to recover oil.
Thermal recovery method designed primarily to
reduce viscous forces.

If capillary forces are high, oil cannot be recovered

easily. Chemical and miscible flooding reduce
capillary forces.

If applied pressure forces are high, oil can be

“pushed out” easily. Primary and secondary
recovery methods designed primarily to increase
applied pressure forces.
 CURRENT TERMONOLOGIES
Enhanced Oil Recovery (EOR): Replaces Tertiary as Tertiary connotes
third stage of oil recovery

EOR involves fluid injection, but injected fluid interacts with oil to
cause:
 Miscibility
 Decrease in IFT
 Viscosity reduction
 Favourable mobility ratio

Improved Oil Recovery now includes

 EOR
 Reservoir Characterization
 Infill Drilling
 Improved reservoir management
 FORCES IMPORTANT IN OIL RECOVERY
• Reservoir forces that control the distribution and movement of fluids in
the pore space are:
– GRAVITY FORCE  ƒ (density difference)
This ever-present force makes the less dense fluid to move higher in
the structure and the more dense fluid to gravitate downward.
– CAPILLARY FORCE  ƒ (wettability)
This ever-present force makes the wetting fluid imbibe into the
smaller pore spaces and thereby displace oil and gas into the larger
(more permeable) pore space.
– APPLIED PRESSURE FORCE  ƒ (pressure differential)
This force comes into effect whenever an energy (higher pressure)
area is in pressure communication with an area of lower pressure.
– VISCOUS FORCE  ƒ (fluid viscosity)
This force comes into effect due to resistance to flow due to fluid
viscosity whenever there is some applied pressure force
ALL RECOVERY METHODS TAKE ADVANTAGE OF THIS!
Classification Based on Reservoir
Energy
 Types of reservoir energy
 Energy from the expansion of water and rock
within the reservoir
 Energy from the expansion of oil within the
reservoir.
 Energy from the expansion of gas within the
reservoir.
 Energy from the expansion of water that are in
adjacent or underlying aquifers.

57
Oil and Gas Reservoirs

 The gravitational energy that causes oil and gas to segregate within the reservoir.
 The surface energy manifesting itself in capillary pores.

58
 Producing mechanisms
based on dominant reservoir energy being released

Common special

gravity imbibition compaction

Depletion Gas cap Water drive Combination drive

drive drive

Full Partial
Formation Solution
drive Gas drive I.Edge I.Edge
II.Bottom II.Bottom
Segregating Nonsegregating
59
Depletion Drive

60
 Oil and Gas Reservoirs
1. Depletion drive ( occurs if reservoir is volumetric i.e. no aquifer
connection)
 Formation drive: Dominant energy forms are oil and connate water
expansion and pore volume compression.
 Valid while undersaturated. No gas cap.
 Solution Gas drive:
 Valid for two phase reservoirs

 Dominant Energy is from expansion of gas

released when pressure drops below P b.
Solution gas drive is called internal gas drive
after the gas becomes mobile.

61
Oil and Gas Reservoirs
 Production Characteristics:
 The production/performance characteristics of a
certain producing mechanism are studied in terms of
four variables/parameters.
 pressure decline rate
 Gas oil ratio
 Water production
 Ultimate recovery factor

62
Oil and Gas Reservoirs

1. Depletion drive reservoirs are characterized by:

a) Rapid pressure decline: The pressure will decline to
point below bubble point pressure.
 Then gas will be liberated and gas saturation will increase.
At the beginning gas saturation is less than critical gas
saturation.
What is critical gas saturation?

63
Oil and Gas Reservoirs

Below critical gas saturation gas is immobile and GOR will decline.
 Once the gas saturation increases beyond the critical value, gas becomes
mobile and GOR increases drastically. This phenomena will be associated
by:
 Increase in oil viscosity.
 Increase in gas effective permeability and decrease in oil effective permeability
and consequently a drastic reduction in oil production.

64
Oil and Gas Reservoirs
b) Water-free oil production since no water aquifers is in contact with
oil.
c) Rapidly increasing gas oil ratios.
d) Low ultimate oil recovery.

 A typical production characteristics plot for depletion type

reservoirs will be as follows:

65
CHARACTERISTICS OF SOLUTION GAS DRIVE RESERVOIR
• Recovery ranges from 6 – 22%
P
- Higher for high GOR crude i

P
- Good candidate for Enhanced B

Recovery Pressure

• Pressure
• declines steadily
Time
• decline rate is dependent on production rate
• Oil Rate
• declines rapidly at first as oil mobility decreases
• steady decline thereafter Oil
• Requires artificial lift Rate

• Producing GOR
• increases rapidly as free gas saturation increases. Time
• Thereafter, decreases rapidly as the remaining oil
contains less solution gas.
Producing
• Water Production GOR P B

• mostly negligible as depletion type reservoirs are

volumetric (closed) systems R si

Time
Production Characteristics graph

Production Characteristics Graph: Depletion drive

67
Gas cap drive reservoir

68
 Oil and Gas Reservoirs
2. Gas cap drive:
 Dominant energy form is the expansion of free gas in the gas cap.
Divided into two types as:
1. Segregating ( piston like displacement
i.e. moving GOC)
2. Non segregating ( diffuse manner i.e.
stationary GOC)

69
Oil and Gas Reservoirs
For gas cap drive the presence of free gas retards the decline in
pressure.
Provided that the free gas phase can be controlled, and not
produced directly from producing wells, better well productivity
and lower producing gas oil ratios can be maintained.

70
Oil and Gas Reservoirs
Production Characteristics
These reservoirs are characterized by:
a) Pressure decline and ultimate oil recovery are some where between the
two cases: depletion and water drives
b) Water free oil production.
c) Rapidly increasing gas oil ratio.

A typical production characteristics plot for depletion type reservoirs will

be as follows:

71
Production Characteristics graph

Production Characteristics graph: Gas cap drive

72
 CHARACTERISTICS OF GAS-CAP DRIVE
RESERVOIR

• RE ranges between 25-40% OOIP — higher for higher m.

• Where closure is high and Kv/KH ratio is high, RE  60-70%
• Although not rate sensitive theoretically, practically production
rate control, well locations, and completions control RE.
• Maximize gas displacement of oil
• Minimize gas cusping, coning, and channeling
 CHARACTERISTICS OF GAS-CAP DRIVE RESERVOIR
CONTINUED
• Pressure: Moderate for a long time. Decreases
rapidly once gas production increases due to free P
i
gas in the oil column Producing
Reservoir Gas-Oil
Pressure Ratio
• Oil Rate: Relatively constant for a long time.
Decreases gradually as free gas in the oil column

Daily Oil Production Rate

Producing Gas-Oil Ratio
increases

Reservoir Pressure
• Producing GOR: Gradual increase at first. Rapid
increase when free gas in the oil column gains
increasing mobility

Rs Daily Oil
• Water Production: Negligible at first. Gradual
Production Rate
increase as flank wells start watering out
Time
• Well Behavior: Long natural flowing life
 Oil and Gas Reservoirs

3. Water drive:
drive Dominant energy form is expansion of (huge
amount of) water in the contiguous aquifers
1. Partial (water influx rate is substantially less than fluid withdrawal
rate)
1. Edgewater
2. Bottomwater
2. Full (water influx and fluid withdrawal rates are equal)
1. Edgewater
2. Bottomwater

75
Water Drive Reservoir

76
Oil and Gas Reservoirs
Water drive reservoirs are characterized by:

a) Gradual pressure decline.

b) Early water production associated with oil
production.
c) Little change in producing gas oil ratio.
d) Higher ultimate oil recovery.

A typical production characteristics plot for water type

reservoirs will be as follows:

77
Production Characteristics graph

Production Characteristics graph: water drive

78
CHARACTERISTICS OF WATER DRIVE RESERVOIR

• RE ranges between 35-65% OOIP.

• RE = ƒ (Mobility Ratio; Rel. Perm. Relationship; We;
Wp; Stratification; Perm. Contrast)

• RE is very rate sensitive due to coning, fingering, and

channeling.
• Highest trouble-free oil rate is under conditions when
total production rate is balanced by aquifer response
for the entire life of the reservoir, and when wells are
located at structurally higher positions.
CHARACTERISTICS OF WATER DRIVE RESERVOIR CONTINUED
1. Pressure
– Pressure is maintained when water influx is active.
– Pressure declines slowly at first but then stabilizes due to increasing influx with
increasing pressure differential, but not when water influx is moderate.
2. Oil Rate
– Rate remains constant or gradually declines prior to water breakthrough
– Rate decreases as water rate increases
3. Producing GOR
– GOR remains constant as long as P > PBP
– Gradually increases if P is below saturation pressure
4. Water Production
– Dry oil until water breakthrough
– Increasing water production from the flank wells; sharp increase due to water
coning in individual wells.
EFFECT OF AQUIFER SUPPORT ON RECOVERY

Active Support

P Partial Support

Inadequate Support

Np
 Summary - Oil Recovery under Natural Drive Mechanisms

100
Res., Pressure, % Orig.. Pressure

80 Water Influx

Liquid & R

G as
Sol
60

c ap
u t io
Gravity Drainage

nG
ock

Ex p
40

as

ans
Expansion

Driv

i on
e
20

0
0 10 20 30 40 50 60
Recovery Efficiency, %OOIP

RE depends on drive mechanism, development plan and reservoir management

Comparison of Drive Performances

83
Combination Drive Reservoir

84
 Other Producing mechanisms
 Reservoir compaction drive: Most pronounced in
abnormally high pressured reservoirs. Could be major
source of energy.
 Imbibition drive: very unusual but happens in
fractured reservoirs. Cyclic production/shut-in
operations are required.

85
IMPROVED RECOVERY
• Roughly 1/3 to 2/3 of OOIP remains in the reservoir at
abandonment of primary recovery.
• Reasons:
• Available wells can not drain the reservoir effectively.
• Reservoir pressure is depleted.
• Interfacial forces trap part of contacted oil as
residual.
• Incomplete contact.
• Recovery is increased when supplemental energy is
supplied to a reservoir by water or gas injection
(Secondary Recovery).
• Recovery may be increased further by the application of
Enhanced (Tertiary) Oil Recovery methods.
SECONDARY RECOVERY
• Oil recovery increased by injecting displacement energy
into the reservoir
- Water Injection
- Gas Injection

• Injecting fluids can eliminate retentive capillary force

and/or mobilize the remaining oil
• Recovery depends on mobility ratio, volume of injected
fluid, well pattern, reservoir characteristics, etc
WATERFLOODING OVERVIEW
•Water is injected into the reservoir to physically
displace the oil residing in the pore spaces.
•Mobility Ratio (M) governs the efficiency of
displacement.
–If M  1
•Favorable
–If M > 1
•Unfavorable

•Imbibition plays a significant role

•Optimum time for a waterflood is when P > PBP
WATERFLOODING OVERVIEW CONTINUED
Water Mobilty Kw
w  K w   o 
M     
 K o   w 
Ko
Oil Mobility o

When P>PBP, following favorable conditions prevail:

lower oil viscosity

higher oil permeability
no free gas saturation
lower oil shrinkage
 Waterflooding – Peripheral Injection Scheme

•Injectors are located in the aquifer (just P .

outside OWC) or in the flank wells above l Oil
I

the OWC
–ADVANTAGES
•In high permeability reservoirs, dry oil production
Water
life is maximized. Hence, water handling facilities are
not needed until late in the life.
•OWC moves upward in a piston-like manner over
large areas.
P
•Well injectivity is higher.
–DISADVANTAGES
•In high permeability reservoirs, some of the injected
water is lost to the aquifer.
•In low permeability reservoirs, pressure cannot be
restored or maintained in the center of the field
 Waterflooding: Pattern (In-Field) Injection Scheme

•Injectors are located within the I P I P I

oil column, often in a regular and
repeating pattern.
•ADVANTAGES
–In low permeability reservoirs,
pressure can be rapidly restored
and maintained.
–The waterflood is completed in a Oil

reasonable (economic) length of

time.
 Waterflooding: Pattern (In-Field) Injection Scheme

•DISADVANTAGES Well Pattern

–Large volume of water P a

d
distribution and disposal facility is In Line
I

required almost from the outset. P

Inverted Inverted
–Front-end loading due to Five-Spot Nine-Spot

dedicated injection well. Inverted

Seven-Spot

–Well injectivity is low.

 Recovery Expectations: Effect of Pattern

Range, % Average, %
Peripheral Injection
Sandstones 35 - 65 50
Limestones 30 - 60 35

In-Field Injection
Sandstones 28 - 50 45
Limestones 25 - 45 40
GAS INJECTION
•Gas is injected into the reservoir to physically
displace the oil residing in the pore spaces.

 Kg   o 
•Mobility Ratio governs the efficiency of
displacement. M  
–M >> 1  Ko   g 
•Composition of injected gas and reservoir
P&T are factors that control the displacement
process.
–Non-miscible
–Miscible Gas Oil

•Recovery Expectation:
–30-45% in general
–Exceeds 60% in reefs
Note On Gas Injection

•Gas injection is usually done in high

relief reservoirs, gas-cap reservoirs, gas
conservation/storage projects, and gas
cycling projects.
•Gas injection to generate miscibility
with reservoir oil is generally
considered on EOR process.
• The total recovery efficiency (E)
is given as:

E  ED x EA x EV
EA = Areal Sweep Efficiency

ED : Displacement Efficiency
RECOVERY EFFECIENCY: DISPLACEMENT PROCESSES

•The total recovery efficiency (E) is given by:

E  ED x EA x EV

EA = Areal Sweep Efficiency

ED : Displacement Efficiency

EV = Vertical Sweep Efficiency

 Displacement Efficiency
•The fraction of oil displaced from each and every pore that is contacted by
the displacing fluid.
–It is given by:
Soi  Sor
•
ED 
Soi
•Approaches to increase ED
–Continue Injection (Increase PVI)
–Decrease Mobility Ratio
TECHNIQUE PROCESS
Decrease kw Polymer Injection
Increase ko Wettability Reversal; CO2-Flooding
Decrease o Heat; CO2 and Enriched Gas Injection
Increase w Polymer; Thickeners
In General

 1 
S oi  S wf   PVI  1.0
ED  1 M 
S oi  S orw

 Kw   o 
M 
 K 

  
 o  w 
Definitions:
Soi = initial Oil Saturation at flood initiation
Sor = Residual Oil Saturation at flood-out
Sorw  20 - 40%
Sorg 35 - 50%
Areal Sweep Efficiency

•It is the measure of the area of the reservoir that is contacted by

the injection fluid. Area Contacted
EA 
TotalArea
–EA depends on Volume injected (Time)
A B A B A B
A
A a
b
I I I
A
i

D C D C D C
Start of Injection Time of Water Time of
Breakthrough Abandonment

Ai Ab Aa
E Ai   E Ab   E Aa 
Area ABCD Area ABCD Area ABCD
Areal Sweep Efficiency (cont’d)
• EA is a function of Mobility Ratio

Oil-Containing
Area

M = 0.4 (very efficient)

Area 1
Water Sweep 87.4% 95.6%
Invaded Efficiency
Area 82.8%

Water
Oil-Containing WOR = 0. 5 WOR = 2
M = 1.4 (slightly inefficient)

Breakthrough
Area

Area 1
Water Sweep
Invaded 70.5% 82.2%
Efficiency
Area
65%

101
Note

• M = Mobility of Water/Mobility of Oil

• When M = 1
• Displacement is efficient.
• When M < 1
• Displacement becomes more efficient progressively.
• When M > 1
• Displacement becomes less efficient progressively.
Areal Sweep Efficiency - Controlling Factors

• EA is influenced by reservoir anisotropy, presence of faults, barriers, shale

lenses, and other microscopic heterogeneity.

Most Favorable Least Favorable

Arrangement Arrangement

• Higher areal sweep will result when the • Lower areal sweep will result when
direction of dominant permeability the direction of dominant
parallels the line joining the injectors permeability parallels the line joining
the injector and a producer
Areal Sweep Efficiency -
Controlling Factors (continued)
• Faults and features restricting water flow
control areal sweep efficiency.

No Fault Barrier Fault Drain Fault

 Vertical Sweep Efficiency
• It is the measure of the vertical cross-
section of the reservoir that is
contacted by the injection fluid. T1

Cross - Sectional Area Contacted

EV 
Total Cross - Sectional Area
• Ev @ T3 >Ev @ T2 > Ev @ T1 T 2 > T1

• EV is dependent on:
• Permeability Contrast
• KV/KH Ratio
• Mobility Ratio T 3 > T2
• Total Water Injected
• Injection Rate
Vertical Sweep Efficiency - Controlling Factors

• EV is greatly affected by permeability variation.

Channeling

• EV is influenced by inter-layer communication.

Permeability Injection

Oil
Depth Water

Production

Injection
Permeability

Depth Oil

Production
Water
 Methods for Estimating Efficiencies

•EFFICIENCY •CLASSICAL METHOD •CURRENT METHODS

• ED •Laboratory tests •Laboratory tests
•1-D simulation model study

• EA •Published correlations for common •2-D (XY) model study

patterns

•Stile’s & Dykstra-Parson’s methods for •2-D (XZ) model study

• EV
idealized reservoir

•E •Various methods for common well •3-D (XYZ) model study

patterns
Causes of Low Recovery Efficiency in Displacement
Processes
A. Inefficient Displacement
• Capillary force (interfacial tension, wettability)
• Relative permeability effects
• Viscosity and mobility contrast
B. Incomplete Contact (Sweep)
• Gravitational Segregation
• Reservoir fabric
• Zonation
• Continuity of layers
• Permeability contrast between layers
• Directional permeability
• Fracturing

• Poor Reservoir Management

 Production Optimization
• Continual production optimization is an integral part of sustaining production at the
highest possible level.
• Oil price is market dependent.
• Reducing OPEX while maintaining judicious reservoir practices.
Production > Wells Bottlenecks are eliminated
Production produce at capacity
Production data is collected
Facilities > loss due to down-time is minimized
Modification of facilities for changing production
Geosciences > Geologic models are updated/upgraded
Guide reservoir simulation through history matching
Well locations are geologically sound
Reservoir > Voidage balancing to maintain pressure
Engineering Trapped/stagnant oil is located
Water/gas production is minimized
Production Optimization continued

•Management’s Role
• Sufficient funds are made available.
• Encourage routine reservoir monitoring & programmed
data acquisition.
• Provide motivation while production (revenue) declines.
• Encourage application of new technology without fear of
failure.
 Current Ways of Production Optimization
1. Infill Drilling
•Drilling of additional wells to reduce well spacing
• Drainage Area, Acres Well Spacing, Feet
• 640 2,600
• 160 1,320
• 40 660
• 10 330
•Infill program will always result in a short-term rate increase. It may result in the
following as well.

Production

Oil Rate (STB/D)

Oil Rate (STB/D)

Incremental
Oil Rate (STB/D) Current Acceleration
Production
Production

Qe

Time
Time
Time
Note
•Need for infill drilling arises when oil recovery from
the existing development is lower than expected
(projected from reservoir studies).
•Low permeability reservoir with discontinuous pay is
the best target.
 Current Ways of Production Optimization
(continued)

2. Highly inclined & horizontal wells

High Angle Horizontal Inverted

• Greatest boon to production optimization

• Such wells are being successfully used for:
a) Development of low perm reservoirs
b) Producing thin oil columns with bottom water or top gas
c) Development of stratified laminated reservoirs
d) Producing by-passed, trapped, stagnant oil pockets

•Recent advances in LWD (Logging While Steering), MWD (Measurements While

Drilling) and GEO-STEERING is opening up new opportunities.
Current Ways of Production Optimization
(continued)
3. Multi-lateral Wells

• Drilling technology is now capable of placing multi-lateral

wells of all shapes and sizes in a reservoir
• Such wells are being used for:
a) Development of lenticular and low permeability reservoir
b) Development of layered reservoirs
c) Correcting issues of uneven water advance
Current Ways of Production Optimization (continued)

•Multi-Lateral Technology is rapidly developing for:

• Selective production
• Isolating branches
• Re-entry in any selected branch
• Pressure integrity of each branch
Current Ways of Production Optimization (continued)

4. Emerging Technologies O
A. Downhole oil-water separation

B. Multi-Phase pumps O
W

C. Multi-Phase meters
W

D. Flexible pipe
 Enhanced Oil Recovery (EOR)
• Enhanced oil recovery aims at recovering additional oil by one or more of the
following techniques.
1. Minimize (eliminate, if possible) Retentive Capillary Force
– Inject water containing SAA (surface active agent)
– Inject solvents such as LPG and Alcohols
– Inject gases that achieve miscibility with oil
• Natural Gas
• Carbon dioxide
• Nitrogen
2. Lower Mobility Ratio
– Reduce oil viscosity by heat
– Increase water viscosity by polymers or gels
– Reduce oil viscosity by injecting miscible/near-miscible gases
3. Improve contact between water and oil
– Improve injection and production profiles
– Inject polymer that reduce water mobility
– Inject slugs of water alternately with slugs of gas - ‘WAG’ process
EOR Methods
A. Miscible Methods
1. First contact miscibility
Chase
2. Multiple contact Fluid Oil
miscibility

B. Chemical Methods
1. Micro-Emulsions (ME) Chase
ME Oil
2. Polymers Fluid

C. Thermal Methods
1. Steam injection
2. In-situ combustion Water Oil
 Injection Producing Wells
EOR Wells

Processes
Of 60% Remaining in
Reservoir

Water
Gas Pumped into the reservoir
to force additional
Steam
petroleum out of the
Chemical pores in the reservoir rock
Fire
Note
• Most of these methods have been tested in field-wide projects.
• Their technical feasibility is now proven.
• However, their economic applications are questionable due to high cost of
chemicals and higher operations/production costs.
• Current economic methods are:
• Huff & Puff Steam Stimulations
• Carbon dioxide Floods
EOR Costs
Gas Injection

Waterflood

CO2 Injection

Miscible Gas Injection

Polymers / Caustic

Microemulsion

Steam / In-Situ Combustion

0 5 10 15 20 25 30 35 40 45

Technical Cost $/bbl

EOR Screening Guidelines
Oil Properties Reservoir Characteristics

Gravity Viscosity Composition Oil Formation Net Average Depth Temp

(API) (cp) Sat. type Thick. (ft) Perm. (md) (ft) (F)

Gas Injection
Methods

Hydrocarbon >35 <10 High % of C2- >30% Sandstone or Thin N.C. >1000(LP N.C.
C7 PV carbonate unless G) to
dipping >5000(H.
P.Gas)

Nitrogen & flue >24 <10 High % of C1- >30% Sandstone or Thin N.C. >4500 N.C
gas C7 PV carbonate unless
>35 for dipping
N2

Carbon dioxide >26 <15 High % of C5- >20% Sandstone or Thin N.C. >2000 N.C.
C12 PV carbonate unless
dipping
FLUID AND ROCK PROPERTIES AFFECTING MICROSCOPIC
DISPLACEMENT EFFICIENCY

• Interfacial Tension/Surface Tension, : Force at interface of

two immiscible fluids/solids. Surface tension if one of the
fluids is vapour or gas.
• Units: Force/length
– 73 dyne/cm for water and its vapour at TR
– 30 - 50 dyne/cm for water and pure HC at RT
• Factors Affecting IT/ST
- Temperature - Pressure - Viscosity
- Dissolved gas - Fluid Gravity - Dissolved Agent
 Rock Wettability (continued)

• Wettability is the tendency of one liquid (water or oil) in the

presence of the two to preferentially spread over the rock surfaces.
• All rocks are water-wet in their natural state.
• Sandstone  Silica
• Limestone  Calcium Carbonate
• Alteration from preferentially water-wet to preferentially oil-wet
condition is due to:
• Presence of surface-active ingredients in some oils
• Presence of polar compounds in some oils
• Presence of asphaltenes and waxes in some oils
Rock Wettability (continued)
• Wettability is quantified by
Contact Angle, which is shown in
the figures for a typical oil-water-
rock system.


Water - Wet
c < 90°

Strongly Strongly
Neutral
Water Wet Oil Wet

0° 30° 60° 90° 120° 150° 180°
Water Wet Intermediate Oil Wet Oil - Wet
Wettability c > 90°

c = f(direction of saturation change) imb > drainage

 Typical Values of Interfacial Tension and Contact
Angle
System (Lab)   (dyne/cm)
Air-Water 0 72
Oil-Water 30 48
Air-Mercury 140 480
Air-Oil 0 24
System (Res)   (dyne/cm)
Water-Oil 30 30*
Water-Gas 0 50*
*Pressure and temperature dependent. Reasonable values to depth of 5000 ft.
 Rock Wettability (continued)
• Wettability affects:
A. Initial distribution of fluids
B. Advancement of water in the reservoir
C. Reservoir performance under water-flood (encroachment)

Water-Wet Rock Grains Oil-Wet Rock Grains

Frequency

Frequency
Oil
Water

Water Oil

Pore Size Pore Size

Rock Wettability (continued)
A. Initial Distribution of Fluids
• Rock has no affinity for gas.
• Hence, gas is always a non-wetting fluid.
• Water or oil wets the rock as shown in
the figures.
Water
Water Wet
Grains are coated by water, and micro-
porosity is water filled.

Oil-Wet
Grains are coated by oil, and micro-porosity
is on the whole oil filled.

Oil
 Rock Wettability (continued)
Oil Oil

B. Advancement of water in an
oil reservoir
Strongly Water-Wet Rock
• Water advances along the wall of the
pore spaces.
• With continual advancement, water cusps Water Water
in at the pore exit while dragging some of Oil
the oil residing in the center of pore
space.
• The oil continuity is eventually broken and
the residual oil remains in the center of
the pore as an isolated droplet.

Water
 Rock Wettability (continued)
Oil Oil

C. Advancement of water in an oil

reservoir
Strongly Oil-Wet Rock
•• Water
Water moves
moves preferentially
preferentially though
though thethe
center
center of
of the
the pores
pores pushing
pushing oil
oil ahead
ahead ofof it.
it. Water Water
•• With Oil
With continual
continual advancement,
advancement, water
water drags
drags
some
some ofof the
the oil
oil closer
closer to
to the
the walls
walls of
of grains.
grains.
•• Water
Water continues
continues toto de-film
de-film the
the oil
oil residing
residing inin
the
the proximity
proximity ofof pore
pore walls.
walls.

Water
 Effect of Wettability on Water flooding
D. Reservoir performance under water-
flood (Encroachment)

Water-Oil Ratio
Oil Recovery
• Wettability will influence reservoir
performance. For an isotropic,
homogeneous reservoir, performance is
depicted below:
Cumulative Injection
Strongly Water Wet
• Large oil recovery prior to water

Water-Oil Ratio
breakthrough

Oil Recovery
• WOR increases rapidly
• Oil rate declines rapidly
Strongly Oil Wet
Cumulative Injection
• Smaller oil recovery prior to water
breakthrough
• WOR increases gradually
• Oil rate declines gradually
 Effect of Wettability on Waterflooding

Water-Wet
Water-Wet
Recovery, %

WOR
Oil-Wet
Oil-Wet

Water Injected, PV Water Injected, PV

Ultimate Recovery, %
Oil-Wet Why?
So
Water-Wet
IFT minimum when neutrally wet

Water Injected, PV Oil Neutrally Water

Wet Wet Wet
Effect of Wettability on Relative Permeability
1.0 1.0

Relative Permeability, Fraction

0.8 0.8
Oil Oil
0.6 0.6

0.4 0.4 Water

0.2 0.2
Water
0 0
0 20 40 60 80 100 0 20 40 60 80 100
Water Saturation, % PV

Strongly Water Wet Strongly Oil Wet

Swc
wc
,% 25 - 40 < 15
Kroro @ Swc
wc
> 0.8 < 0.7
Krw
rw
@ Sorw
orw
< 0.2 > 0.5
Sw (Krw
rw
= Kroro) > 50% < 50%
Note

• It is extremely important that rock wettability is preserved or carefully

re-stored prior to obtaining relative permeability data.

• Uses of Oil-Water Relative Permeability Data

• Production Forecasts & Recovery Estimates for:
• Water Drive Reservoirs
• Waterflood Projects
MORE ON RELATIVE PERMEABILITY
• Relative Perm. = Effective Perm/Base Permeability
• Common Bases
Ko@Swir
- Absolute Permeability ko
kw
- Effective Oil Perm at Swir
• Factors Affecting Rel Perm
Sw
Swir
- Saturation
- Saturation History (Drainage, Imbibition)
- Rock Lithology and Pore Geometry
- Wettability
- Thermodynamic Conditions
- Fluid properties
 MORE ON RELATIVE PERMEABILITY
• Wetting phase relative permeability is not affected by
wetting phase kro
krw

Sw
Swir
• Oil wet rock has lower kro and higher krw at any given Sw
compared to water wet systems

Water-Wet

Kr Oil-Wet

Sw
 EFFECT OF FLUID PROPERTIES ON RELATIVE
PERMEABILITY

• IFT and  affect Rel Perm, but effect of IFT is more

• For water-wet rock, rel perm are not sensitive to IFT values >
0.1 mN/m
• If decreased from 0.26 to 0.01 mN/m, kro and krw increased
• Hysteresis effect diminish at low IFT
• Temperature and pressure affect rel perm because they
affect ITF, , and residual saturations
 APPLICATION OF DRAINAGE &
IMBIBITION CURVES
• Drainage • Imbibition
- Solution Gas Drive Calculations - Water influx/waterflooding calculations
(Tarner, etc)
- Oil being forced into gas-cap
- Gravity Drainage Calculations (Gas
replacing drained oil)
- Gas Drive Calculations (Gas displacing
oil and water)
- Oil or gas displacing water
- Computation of critical water
saturation for use in completion
decisions
 MOBILITY RATIO i
 f (S i ) i
M 
ki
• Mobility of fluid i
Fluid Mobility Behind Front
Mobility Ratio 
Fluid Mobility Ahead of Fronf
• MR < 1 (favourable) MR > 1 (unfavourable)
• For Waterflood, 0.02< MR<2; improve MR by using polymer
• MR is higher for oil-wet
• Effect of MR on Breakthrough Area Sweep Efficiency, Ea.

100
Ea

50
0. 1
1 MR 10
TYPES OF DISPLACEMENT
• Piston-Like Displacement
- Voil  Vwater 1-Sor Oil
Water
- Behind front flows water and Swir
residual oil saturation (No bypass of oil)
- Ahead of Front flows oil and water
- Model good for oil of up to 30 cp
- Adequate if less than 5% water flows behind
- MR=[kw @ (Sw = 1-Sor)/w]/ [ko@(Sw=Swc)/o]  1
- All movable oil recovered with 1PV of injected water

Oil Rec
PV
45o

Water Inj, PV
TYPES OF DISPLACEMENT CONTINUED
• Buckley Leverett (Leaky Piston) 1-Sor
- More common
Water Oil
- Water may move faster Swir
- (bypassing occur) x
- Ahead of front, oil flows with connate water
- Behind front, water flows with bypass oil
- 5 MOV of water may be required to recover “all” oil

 k rw k ro 
  
 w  o  At Sw behind front
MR 
k ro
at S wc
o
TYPES OF DISPLACEMENT
CONTINUED

•Segregated Displacement
Oil And Gas Reserves
Reserves are estimated volumes of hydrocarbon,
recoverable commercially, from known accumulative
under existing economic conditions, by established
operating practices.
Facts About Reserves

Estimates obtained from geologic/engineering data.

Reserves are revised as more data become available.
Reserve does not include hydrocarbon in inventory.
Reserve attributed to natural reservoir energy or improved
recovery method
Always some degree of uncertainty
Classification Based On Degree Of
Uncertainty
Proved Reserves:
Estimated with reasonable certainty to be recovery under current conditions.
Proved reserves may be developed or undeveloped.

Things Considered in Proved Reserve

Drilled and defined by fluid contact
Undrilled area backed by reasonable data
Handling facilities present or about to be
Oil recoverable by improved method
-There is successful pilot test
-Project will certainly proceed
Unproved Reserves:

Same as proved but technical, contractual, economics

or regulatory uncertainty preclude classification as
proved.

Classification of Unproved Reserve

Probable reserve

Possible Reserves
Probable Reserves
Probable reserves are less certain than proved reserve
but likely recoverable.

They include:
Reserve to be proved by step out drilling.
Reserve supported by log data but no core data.
Expected incremental recovery by infill drilling
Recovery by improved recovery method not in
operation.
Recovery from part of field in area proved
Recovery from workover, change of equipment etc.
Additional recovery from different interpretation
of data in proved area.
 Possible Reserves
Possible reserves are less certain than probable reserves

They Include:
1. Reserves suggested by structural and/or
stratgraphic extrapolation.
2. Reserves established by log. etc. but found not
commercial.
3. Incremental oil from infill drilling subject to
technical uncertainty.
4. Reserves from improved rec. but not certainly
established.
Reserve Status Categories
Developed Reserve
Recoverable from existing well/facilities.
-Developed producing.
-Developed non producing (interval not yet open to flow).

Undeveloped
Recoverable from
New wells on undrilled acreage
Deepening existing wells
Wells that require large expenditure
 Relative Contribution of
Resource Categories
Di
s c DISCOVERED RESOURCE
Ap
pr
ai
sa
l PROBABLE STATIC

Fu
nd
PROVED PROBABLE STATIC
De
ve E ar
l o ly
PROVED
pm
PROVED
Development

en
t DEV UNDEV PROB STATIC
De M
ve a t
lo ur
PROVED
pm e
PROVED
en
STC

CUM

t DEV
PRB

De L UNDEV
ve at
lo e
pm
Exploration (Total Resource for 10 Yrs.)

en PROVED PVD
t CUM PROD
PRB
STC

Ab DEV UND
an
do
Production

n
CUMULATIVE PRODUCTION
STC

TOTAL RESOURCE
•

Increasing Maturity, More Data, Decreasing Uncertainty

Resource Movement Through Time

to Proved

to Produced.
to Developed
from Nonproved
Total Resource =
CUM+Pvd+Prb+Stc

• Resource progresses
Methods for Estimating Reserves
1. Analogy
– Analogous reservoirs in the close proximity
• wide margin of error

2. Volumetric
Oil Reserves = OOIP x RF
• OOIP = 7758 A h  (1 - Swc)/Boi
Gas Reserves = OGIP x RF
• OGIP = 43,560 A h  (1 - Swc)/BGi
RF : Recovery Factory is estimated by:
• Averages based on oil industry’s experience
• Statistical Correlation
• Reservoir simulation studies

• Production trends analysis

224
• Material Balance Equations
Volumetric Method
for Estimating Reserves
Deterministic
Deterministic Approach
Approach

Pore
Pore Volume
Volume
(A,
(A, h &
h & )
) Deterministic RESERVES
RESERVES
SSwi , B
wi, Boi
Recovery
oi
Recovery Factor
Factor Model
‘Best’ Single Value
‘Best’ Single Value
Estimates
Probabilistic
Probabilistic Approach
Approach

Pore
Pore Volume
Volume
(A,
(A, hh& & )
)
Stochastic RESERVES
RESERVES
SSwi , B
wi, Boi
oi Model
Recovery
Recovery Factor
Factor

Probability Distribution
Probability Distribution
of Values
225
Strength of Probabilistic Method

• Identifies upside potential and downside risk

• Quantifies degree of uncertainty. Hence, more appropriate in:

- newly discovered offshore accumulation

- accumulation where massive hydraulic fracturing is required

- improved oil recovery project

 Note

• Used when subsurface data from wells and appropriately calibrated to

seismic data are sufficient for isopachous mapping of field

• Volumetric method of reserves estimation has been found to:

• Underestimate reserves in prolific fields
• Overestimate reserves in poorer fields
 Analogy Method
• Based on data from analogue reservoirs or wells and statistics

• Used to estimate recovery for undrilled prospects and undrilled tracts in partilly
developed reservoirs

• Method is based on the asssumption that analogue reservoir or well is

comparable to subject reservoir or well, regarding those aspects that control
ultimate hydrocarbon recovery

154
Recovery Factors by Analogy
Oil Industry’s Experience
Primary
Primary Recovery
Recovery
Average primary
recovery …. % at
Production Natural water drive average value at
mechanism…. Lithology State OOIP
Solution gas Sandstone California 22
drive Louisiana 27
Oklahoma 19
Texas 7C, 8,
10 15
Texas 1-7B, 9 31
West Virginia 23
Wyoming 25
Solution gas Carbonates All 18
drive Sandstones California 36

Natural water Louisiana 60

drive Texas 54
Wyoming 36
Natural water Carbonates All 44 226
drive
Recovery Factors by Analogy
Oil Industry’s Experience
Secondary
Secondary Recovery
Recovery
Primary plus Ratio at secondary
secondary to primary
recovery recovery
Secondary efficiency at efficiency at
recovery method Lithology State average OOIP, % average OOIP, %
Pattern waterflood Sandstone California 35 0.33
Lousiana 51 0.44
Oklahoma
28 0.62
Texas
Wyoming
38 0.50
45 0.39

Pattern waterflood Carbonates Texas 32 1.05

Edge water Sandstones Louisiana 55 0.33

injection Texas 56 0.64

Gas cap injection Sandstones California 44 0.48

Texas 43 0.23
227
 Comparison of Reserve Estimation
Techniques

1. Applicability/Accuracy

Volumetric Decline Curve Material Balance Mathematical Models

Discovery Yes/Questionable No Yes/Questionable Yes/Questionable

Exploration Yes/Questionable No Yes/Questionable Yes/Questionable

Delineation Yes/Questionable No Yes/Questionable Yes/Fair

Development Yes/Better No Yes/Better Yes/Good

Production Yes/Fair Yes/Fair Yes/Good Yes/Very Good

LASER - Enhancing Optimal Recovery Through Specialized Services 157

Comparison of Reserve Estimation Techniques (Contd)

Reserve Estimation Technique

2. Data Requirements Volumetric Decline Curve Material Balance Mathematical Models

Geometry Area, Thickness No Area, Thickness Homogeneous Area, Thickness

Porosity, Saturation, Rel. Heterogeneous Porosity,
Permeability Homogeneous Saturation, Rel. Permeability,
Compressibility Capillary
Pressure Heterogeneous

Rock Porosity, Saturation No PVT , Homogeneous PI for Rate PVT, Heterogeneous,

Locations, Perforations

Fluid Form. Vol. Factors No Vs. Time Yes

Pressure No No

LASER - Enhancing Optimal Recovery Through Specialized Services 158

Comparison of Reserve Estimation Techniques (Contd)
Parameter Reserve Estimation Technique

3. Results Volumetric Decline Curve Material Balance Mathematical Models

Original Hydrocarbon in Place Yes No Yes Yes

Ultimate Recovery Yes With Recovery Yes Yes Yes

Efficiency

Pressure Vs. Time No No Yes With PI Yes

159
 Units And Dimensions In Petroleum
Engineering
SYMBOL Dimensions

A area L2
B formation volume factor
Bg gas formation volume factor
Bo oil formation volume factor
Bt total (two-phase) formation volume factor
Bw water formation volume factor
c compressibility Lt2/m
Cf formation (rock) compressibility Lt2/m
Cg gas compressibility Lt2/m
Co oil compressibility Lt2/m
cw water compressibility Lt2 /m
C concentration various
D depth L
D diffusion coefficient L2/t
e influx (encroachment) rate L3/t
eg gas influx (encroachment) rate L3/t
eo oil influx (encroachment) rate L3/t
ew water influx (encroachment) rate L3/t
f fraction (such as the fraction of a flow stream consisting
of a particular phase)
g acceleration of gravity L/t2
G total initial gas in place in reservoir L3
Ge cumulative gas influx (encroachment) L3
Gi cumulative gas injected L3
Gp cumulative gas produced L3
DGe gas influx (encroachment) during an interval L3
DGi gas injected during an interval L3
DGP gas produced during an interval L3
h net pay thickness L
H gross pay thickness L
i injection rate L3/t
ig gas injection rate L3/t
iw water injection rate L3/t
I injectivitv index L4/tm
Is specific injectivity index L4/tm
j productivity index L4/tm
js specific productivity index L4/tm
k absolute permeability L2
kg effective permeability to gas L2
ko effective permeability to oil L2
krg relative permeability to gas
kro relative permeability to oil
krw relative permeability to water
kw effective permeability to water L2
K equilibrium ratio (y/x)
In natural logarithm, base e
log, common logarithm, base 10
L length L
L moles of liquid phase
m mass m
m ratio initial reservoir free gas volume to initial
reservoir oil volume
m mobility ratio* (I/2)
m molecular weight m
n total moles
N initial oil in place in reservoir L3
Ne cumulative oil influx (encroachment) L3
NP cumulative oil produced L3
Ne cumulative oil influx (encroachment) during an
interval L3
Np oil produced during an interval L3
p pressure m/Lt2
Pa atmospheric pressure m/Lt2
Pb bubble-point (saturation) pressure m/Lt2
Pc critical pressure m/Lt2
pcf casing pressure, flowing m/Lt2
Pcs casing pressure, static m/Lt2
Pd dew-point pressure m/Lt2
Pd dimensionless pressure
Pe external boundary pressure m/Lt2
Pf front or interface pressure m/Lt2
pi initial pressure m/Lt2
Pr reduced pressure
Psc pressure, standard conditions m/Lt2
psp separator pressure m/Lt2
Ptf tubing pressure, flowing m/Lt2
Pts tubing, pressure, static m/Lt2
Pw bottom-hole pressure, general m/Lt2
Pwf bottom-hole pressure, flowing m/Lt2
pws bottom-hole pressure, static m/Lt2
p average pressure m/Lt2
Pc capillary pressure m/Lt2
q production rate L3/t
qD dimensionless production rate
qg gas production rate L3/t
qo oil production rate L3/t
qw water production rate L3/t
r radial distance L
rD dimensionless radial distance
re external boundary radius L
rw x;.-ell radius L
R producing gas-oil ratio
R universal gas constant (per mole) mL2/t2T
Rp cumulative gas-oil ratio
Rs solution gas-oil ratio (gas solubility in oil)
Rsw gas solubility in water
S saturation
Sg gas saturation
Sge critical gas saturation
Sgr residual oil saturation
So oil saturation
Sor residual oil saturation
Sw water saturation
Swe critical water saturation
Swr residual water saturation
t time t
tD dimensionless time
T temperature T
Tc critical temperature T
Tr reduced temperature
Tsc temperature, standard conditions T
u volumetric velocity (flow rate per unit area) L/t
v specific volume L3/m
v velocity L/t
v moles of vapour phase
v volume L3
Vb bulk volume L3
Vm volume per mole L3
VP pore volume L3
Vs solid volume L3
W initial water in place in reservoir L3
We cumulative water influx (encroachment) L3
Wi cumulative water injected L3
WP cumulative water produced L3
W e water influx (encroachment) during an interval L3
W i water injected during an interval L3
W p water produced during an interval L3
x mole fraction of a component in liquid phase
y mole fraction of a component in vapour phase
z gas deviation factor (compressibility factor, z = pV/nRT)
z mole fraction of a component in mixture

Greek
 beta thermal cubic coefficient 1/T
 deltacap difference (x = x2 – x1 or x1 - x2) [X]
 eta hydraulic diffusivity (k/c or /c) L2/t
 lambda mobility (k/) L3t/m
g lambda gas mobility L3t/m
o lambda oil mobilityL3t/m
w lambda water mobility L3t/m
 mu viscosity m/Lt
g mu gas viscosity m/Lt
o mu oil viscosity m/Lt
w mu water viscosity m/Lt
v nu kinematic viscosity L2/t
 rho density m/L3
 rho resistivity (electrical) m/L3tQ2
g rho gas density m/L3
o rho oil density m/L3
W rho water density m/L3
 sigma surface tension (interfacial tension) m/t2
 tau tortuosity
 phi porosity
 phicap potential various
 Psicap stream function various
 Subscripts
a atmospheric
b bubble-point or saturation (except when used with volume)
b bulk (used with volume only)
c capillary (used in Pc only)
c critical
cf casing, flowing (used with pressure only)
cs casing, static (used with pressure only)
d dew-point
d differential separation
D dimensionless quantity
e cumulative influx (encroachment)
e external boundary conditions
f flash separation
f formation (rock)
f front or interface
g gas
i cumulative injected
i initial value or conditions
L liquid
M molal (used with volume only)
Max. maximum
min. minimum
o oil
p cumulative produced
p pore (used with volume only)
r reduced
r relative
r residual
s gas-oil solution (used in R, only)
s solid (used with volume only)
s specific (used with J and 1)
 sc standard conditions
sp separator conditions
sw gas-water solution (used in Rsw only)
t total
tf tubing, flowing (used with pressure only)
ts tubing, static (used with pressure only)
w water
w well conditions
Wf bottom-hole, flowing (used with pressure only)
Ws bottom-hole, static (used with pressure only)

When the mobilities involved are on opposite sides of an interface, the mobility
ratio will be defined as the ratio of the displacing phase mobility to the displaced
phase mobility, or the ratio of the Upstream mobility to the do mobility
API Standard Symbols For Oil Mapping
The American Petroleum Institute recognized a similar obstacle in the
symbols used in the preparation of subsurface, isopachous, and other field
maps, and after due study recommended a set of standard well symbols to
promote uniformity in map symbols. Because reservoir engineers frequently
use and often prepare or supervise the preparation of oil field maps, the API
standard map symbols are given below for reference.
LOCATION O DUAL COMPLETION-OIL
ABANDONED LOCATION ERASE DUAL COMPLETION-GAS
SYMBOL
DRY HOLE DRILLED WATER-INPUT WELL
OIL WELL CONVERTED WATER-INPUT WELL
ABANDONED OIL WELL DRILLED GAS-INPUT WELL
GAS WELL CONVERTED GAS-INPUT WELL
ABADONED GAS WELL BOTTOM-HOLE OF LOCATION
DISTILIATE WELL (X INDICATES BOTTOM OF HOLE)
ABANDONED DISTILLATE WELL SALT-WATER DISPOSAL WELL
Operating License and Land Acquisition
Up to this point in our study of petroleum exploration, we have met three
important characters; the geologist ,geophysicist and reservoir engineers.
These are the people who are diligently mapping the countryside using all
of the techniques at their disposal to find new geologic structures to drill.
 But before any drilling can take place, petroleum rights must be acquired
for the land areas under which these structures are located.
This is the job of a landman.

176
Operating License and Land Acquisition
Surface Rights vs Petroleum Rights
When a petroleum landman talks about acquiring land, he or she is really talking
about acquiring the petroleum rights below the surface of that land.
The landman does not usually wish to acquire the surface rights as well, but does
want to obtain the right to perform work on the land in order to explore for
petroleum.
For example, a landman may approach a rancher who owns both surface and
petroleum rights on the ranch.
The landman will negotiate a deal whereby the oil company can drill and produce
any oil or gas found on that property.

177
 Operating License and Land Acquisition
The rancher, however, still owns the surface rights and continues
ranching on the property.
This is a beneficial arrangement to both parties, because if oil is
discovered, a certain percentage will belong to the rancher who will
get a share of the profits.
 The oil company, on the other hand, saves the cost of having to
buy expensive surface rights.

178
 Operating License and Land Acquisition In
Nigeria
Mineral/Land Rights Belongs to Government
Government Issues Rights of Operation in Stages

Oil Prospecting Licence(OPL)

Oil Mineral Lease (OML)

Oil Pipeline Licence

Permit to Survey (PTS)

Objections Hearing

Department of Petroleum Resources (DPR)

179
 Operating License and Land Acquisition
The Lease
In today's oil industry, there are a variety of agreement types that
allow for the exploration and the production of oil.
 The most important type of agreement and the most widely used is
the lease (Figures 7.1 and 7.2).

180
Operating License and Land Acquisition

The lease is a widely used

type of agreement between
the owner of the petroleum
rights and the oil company
that allows the oil company
to explore for petroleum on
the lessors land and produce
any petroleum discovered.

181
Operating License and Land Acquisition
In most cases, when a company acquires a lease, it does not
purchase the surface rights.
 The surface rights remain with the surface owner who is
usually compensated in some way for the inconvenience of
having petroleum operations carried out on the property.

182
Operating License and Land Acquisition

A number of variables are associated with individual leases,

including:
the term, rentals, royalties and bonus payment.
 The bonus payment is a one time lump sum payed up front
when the lease is signed.
The drilling delay rental, or rental, is a fee paid to the lessor
when the lessee is delayed in commencing drilling a well.

183
Operating License and Land Acquisition

It may vary from a few cents per hectare to several dollars per hectare,
depending on the level of activity in the area.
The royalty is the percentage of the oil and gas produced that is the
property of the lessor (the person, company or government that is granting
the lease).
This is usually handled as a regular cash payment to the lessor, but is
sometimes a quantity of the petroleum itself.
 Historically, the royalty has been 1/8th (12.5%), but it varies widely today.

184
 Operating License and Land Acquisition
Every exploration lease has a term or time limit attached.
The term represents the amount of time in which the company
has to find petroleum on the property.
 If no oil or gas has been found by the end of the term, the lease
expires and petroleum rights revert to the original owner.
The terms of leases vary, depending mainly on the level of activity
in the area.

185
 Operating License and Land Acquisition

In easily accessible areas of high activity, the term may be as short
as 2 years.
In remote areas of little activity, the term may be as long as 10
years or greater.
But what if petroleum is discovered during the term of the lease?
In this case, the lease does not expire.

186
 Operating License and Land Acquisition
The company will be allowed to produce the petroleum for as long
as possible, until no more can be economically recovered. In other
words, the company will maintain the petroleum rights for "the life
of the field".
The life of an oil or gas field will depend on many things, including
the size of the field and the rate of production.
 It may last only a couple of years or may last for decades.

187
 Operating License and Land Acquisition
Obtaining a Lease
Usually what happens is that an oil company indicates to the government
that it is interested in acquiring lands in a given area.
The government then makes an announcement that these lands are
available for leasing and will be awarded to the highest bidder. Interested
companies will then submit their bids in sealed envelopes to the government
agency at a set time and place.
The envelopes are then opened, the highest bidder is determined and the
lease is awarded.

188
Operating License and Land Acquisition
How Petroleum Rights Are Usually Acquired
1. Companies inform the appropriate government
agency of the lands they would like to see made
available.
2. Government agency publishes a map showing
which lands are available for biding.
3. Companies submit bids for the different parcels
of land in sealed envelopes at a set time and place.
4. Envelopes are opened, and the winning bids are
announced.
5. Government issues leases to companies who
submitted the winning bids for different parcels of
land, for a set period of time. 189