evolution of reservoir management · pdf filereservoir performance reservoir management...

CENTRE FOR PETROLEUM STUDIES Imperial College, London

EVOLUTION OF RESERVOIR MANAGEMENT TECHNIQUES

Alain C. GringartenImperial College, London

From Independent Methods to an Integrated Methodology

Impact on Petroleum Engineering Curriculum, Graduate Teaching and Competitive Advantage of Oil Companies

SPE 39713, Kuala Lumpur, Malaysia, 23–24 March 1998.


CONTENT

RESERVOIR MANAGEMENT PROCESS• DEFINITION• OBJECTIVES• METHODOLOGY• IMPLEMENTATION

IMPACT ON COMPETITIVE ADVANTAGE

PETROLEUM ENGINEERING CURRICULUM


RESERVOIR MANAGEMENT

APPLICATION OF AVAILABLE TECHNOLOGY AND KNOWLEDGE

TO A RESERVOIR SYSTEM

WITHIN A GIVEN MANAGEMENT ENVIRONMENT

IN ORDER TO CONTROL OPERATIONS AND MAXIMISE ECONOMIC RECOVERY


OBJECTIVES OF RESERVOIR MANAGEMENT

DECREASE RISK

INCREASE OIL AND GAS PRODUCTION

INCREASE OIL AND GAS RESERVES

MINIMISE CAPITAL EXPENDITURES

MINIMISE OPERATING COSTS

MAXIMISE RECOVERY


RESERVOIR MANAGEMENT TOOL:

MODELLING THE RESERVOIR BEHAVIOUR TO MAKE DECISIONS

ACQUIRE DATA

MODELRESERVOIRBEHAVIOUR

PREDICTPRODUCTION

&CALCULATERESERVES


THE MODELLING PROCESS

IDENTIFICATION OF A RESERVOIR MODELRESERVOIR CHARACTERISATION (INVERSE PROBLEM)1

CALCULATION OF THE RESERVOIR MODEL BEHAVIOUR UPSCALING AND SIMULATION

2

MATCHING OF RESERVOIR SYSTEM PAST PERFORMANCE HISTORY MATCHING (DIRECT PROBLEM)

3

PREDICTION OF RESERVOIR SYSTEM FUTURE PERFORMANCE (DIRECT PROBLEM)

4


RESERVOIR MANAGEMENT PROCESSStatic Information Dynamic Information

Productiondata

SIMULATION OFRESERVOIR MODELBEHAVIOUR

Simulation ModelBlack Oil/Compositional/Thermal

(Upscaling)

(History Matching)

Calibrated Simulation Model

Prediction of Reservoir Performance

RESERVOIR MANAGEMENT DECISIONS

Economic Model

Pipeline & FacilitiesModel

Development Scenario

(Decline Curve Analysis)

Improvement of WellPerformance

Prediction of Field Performance

Completion designStimulationArtificial lift

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Production InfrastructureHealth, Safety and Environment

DATA

INTERPRETATIONMODELS

RESERVOIRMODEL

Integration

Reservoir Model

WellFlowModel

Prediction of WellPerformance

Geology

GeologicalModel

Fluids

FluidModel

Geophysics

GeophysicalModel

FlowmetreSurvey

ProductionLoggingModel

Well testingPressure, Surface Rates,

Downhole Rates

Well TestModel

DrillingGeochemistry

GeochemicalModel

Petrophysics

PetrophysicalModel

Geomechanics

GeomechanicalModel

Tracers

TracerModel


WISD

OM

PREDICTION OFRESERVOIR

PERFORMANCE


FIELD DEVELOPMENTPLAN

RESERVOIRCHARACTERISATION

PRED

ICTI

ON

OF

WEL

LPE

RFO

RM

AN

CE

IMPL

EMEN

TATI

ON

THE RESERVOIR MANAGEMENT PROCESS

KN

OW

LEDG

EIN

FOR

MA

TION

DATA

© 1997 by Alain C. Gringarten


RESERVOIR CHARACTERISATIONStatic Information Dynamic Information

Productiondata



(Upscaling)

(History Matching)




Economic Model







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DATA


RESERVOIRMODEL

INTEGRATION

Reservoir Model

WellFlowModel


Geology

GeologicalModel

Fluids

FluidModel

Geophysics

GeophysicalModel

FlowmetreSurvey



Downhole Rates

Well TestModel


GeochemicalModel

Petrophysics

PetrophysicalModel

Geomechanics

GeomechanicalModel

Tracers

TracerModel


RESERVOIR CHARACTERISATION

INTEPRETATION OF DATA

>> STATIC INTERPRETATION MODELS ( DESCRIPTION)

GEOPHYSICS, GEOLOGY

GEOCHEMISTRY

PETROPHYSICS

>> DYNAMIC INTERPRETATION MODELS ( BEHAVIOUR)

GEOMECHANICS

WELL TESTS, TRACERS

FLOWMETRE SURVEYS


Data type 3

Identification

ConsistencyVerification

YES

NO

InterpretationModel for

Data Type 2

Data type 3

Identification


YES

NO


Data Type 3

Data type 1

NO

YES


Data Type 1


Identification


INTERPRETATION MODELS

2 media

1

2

10 layersPetrophysicalData

Well testModel

Well testData

Petrophysical

Model

Flow rate

Depth


ProductionLogging

DataTracerModelTracer

Data

Time

Con

cent

ratio

n ≤10 permeabilities

Identification of producing layers


INTEGRATION OF INTERPRETATION MODELS

GeologicalModel

GeophysicalModel

GeochemicalModel

Petrophysical

Model

GeomechanicalModel

FluidModel


TracerModel

Well testModel

TracerData

ProductionLogging

Data

FluidData

GeomechanicalData

PetrophysicalData

GeochemicalData

GeophysicalData

Well testDataGeological

Data

RESERVOIRMODEL

RESERVOIRMODEL


INTEGRATION OF INTERPRETATION MODELS

DETERMINISTIC TECHNIQUESSTOCHASTIC TECHNIQUES>> INTERPOLATION BETWEEN SPARSE DATA (WELLS) AND

EXTRAPOLATION

>> CORRELATION AND ORDERING OF INFORMATION

>> INTEGRATION OF INFORMATION (CONDITIONING)

FROM DIFFERENT DATA SOURCES

WITH DIFFERENT LEVELS OF RELIABILITY

>> GENERATION OF MULTIPLE, EQUIPROBABLE REALISATIONS OF THE RESERVOIR (PARAMETER DISTRIBUTIONS)

>> QUANTIFICATION OF UNCERTAINTIES


RESERVOIR MODEL VERIFICATION

Once the reservoir model is constructed, one must verify that this reservoir model is consistent with all available information and interpretation models.

This means that the reservoir model must reproduce all data acquired:

the seismic, logs, etc..., well tests.


Simulate Data Type 1

MatchData Type

1


MatchData Type

2


MatchData Type

3

Integration into Reservoir Model

Data type 1

Identification


YES

NO


Data Type 1

Data type 3

Identification


YES

NO


Data Type 2

Data type 3

Identification


YES

NO


Data Type 3

YES

RESERVOIR MODEL

YES YES

NO NO NO

NO


VERIFICATION OF RESERVOIR MODEL FLOW BEHAVIOURStatic Information Dynamic Information

Productiondata



(Upscaling)

(History Matching)




Economic Model







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DATA


RESERVOIRMODEL

Integration

Reservoir Model

WellFlowModel


Geology

GeologicalModel

Geophysics

GeophysicalModel

Tracers

TracerModel


Downhole Rates

Well TestModel


GeochemicalModel

Petrophysics

PetrophysicalModel

Geomechanics

GeomechanicalModel

Fluids

FluidModel

FlowmetreSurvey



RESERVOIR MODEL FLOW BEHAVIOURUSUALLY APPROXIMATED WITH NUMERICAL SIMULATOR

DIFFERENT FLOW SIMULATORS MAY BE REQUIRED FOR DIFFERENT FLOW DATACOMPLEXITY OF SIMULATOR FUNCTION OF PERFORMANCE TO BE SIMULATED (Black Oil, Compositional, Thermal, Chemical)

WELL TEST DATA REQUIRE HIGH RESOLUTION NEAR WELLS

GRIDDING FOR EXISTING NUMERICAL SIMULATORS COARSER THAN FOR RESERVOIR MODEL ( UPSCALING REQUIRED)

SIMULATION OF VERY LARGE RESERVOIRS OR OF LOCAL HETEROGENEITIES REQUIRES:

Several hundred thousand cells, orNew mathematical formulations (Adaptive gridding, Streamline

simulators,....)


RESERVOIR MODEL FLOW BEHAVIOUR VERIFICATION

RESERVOIR MODEL FLOW BEHAVIOUR CONSISTENCY IS VERIFIED BY COMPARING:

OBSERVED DATA FROM WELLS (GOR, WOR,...), and

CORRESPONDING RESPONSES FROM NUMERICAL SIMULATOR (HISTORY MATCHING)

POSSIBILITY TO MATCH SATURATION FRONT LOCATIONS BETWEEN WELLS OBTAINED FROM REPEATED 3-D SEISMIC SURVEYS (RESERVOIR MONITORING)


HISTORY MATCHING

MATCH BETWEEN DATA AND MODEL CALCULATED BEHAVIOR CAN BE REFINED BY ADJUSTING RESERVOIR MODEL PARAMETERS WITHIN LIMITS CONTROLED BY CONDITIONING

ADJUSTMENT CAN BE MADE EASIER AND FASTER WITH STATISTICAL OPTIMISATION METHODS (ADAPTIVE HISTORY MATCHING) AND EXPERT SYSTEMS

LACK OF SATISFACTORY MATCH WITHIN LIMITS CONTROLED BY CONDITIONING REQUIRES MODIFYING THE RESERVOIR MODEL ( RESERVOIR CHARACTERISATION)


CHARACTERISATION: AN ITERATIVE PROCESSInterpretation Models

Integration into Reservoir Model

VerifyReservoir Model

(Synthetic seismograms, logs, well tests,production...)

YES

NO

AnotherModel?

YES NOEND

RESERVOIR MODEL


PRODUCTION PREDICTION

FOR PREDICTING PRODUCTION, THE RESERVOIR SIMULATOR MUST BE COUPLED WITH:

WELL MODELS AND

A SURFACE FACILITIES SIMULATOR


PRODUCTION PREDICTIONStatic Information Dynamic Information

Productiondata



(Upscaling)

(History Matching)




Economic Model







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DATA


RESERVOIRMODEL

Integration

Reservoir Model

WellFlowModel


Geology

GeologicalModel

Geophysics

GeophysicalModel

Tracers

TracerModel


Downhole Rates

Well TestModel


GeochemicalModel

Petrophysics

PetrophysicalModel

Geomechanics

GeomechanicalModel

Fluids

FluidModel

FlowmetreSurvey



DECLINE CURVE ANALYSISStatic Information Dynamic Information

Productiondata



(Upscaling)

(History Matching)




Economic Model







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DATA


RESERVOIRMODEL

Integration

Reservoir Model

WellFlowModel


Geology

GeologicalModel

Geophysics

GeophysicalModel

Tracers

TracerModel


Downhole Rates

Well TestModel


GeochemicalModel

Petrophysics

PetrophysicalModel

Geomechanics

GeomechanicalModel

Fluids

FluidModel

FlowmetreSurvey



RESERVOIR SIMULATION ( 1960’s to 1970’s)Static Information Dynamic Information

Productiondata



(Upscaling)

(History Matching)




Economic Model







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DATA


RESERVOIRMODEL

Integration

Reservoir Model

WellFlowModel


Geology

GeologicalModel

Geophysics

GeophysicalModel

Tracers

TracerModel


Downhole Rates

Well TestModel


GeochemicalModel

Petrophysics

PetrophysicalModel

Geomechanics

GeomechanicalModel

Fluids

FluidModel

FlowmetreSurvey



RESERVOIR SIMULATION ( 1980’s)Static Information Dynamic Information

Productiondata



(Upscaling)

(History Matching)




Economic Model







©19

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DATA


RESERVOIRMODEL

Integration

Reservoir Model

WellFlowModel


Geology

GeologicalModel

Geophysics

GeophysicalModel

Tracers

TracerModel


Downhole Rates

Well TestModel


GeochemicalModel

Petrophysics

PetrophysicalModel

Geomechanics

GeomechanicalModel

Fluids

FluidModel

FlowmetreSurvey



FREQUENTLY ASKED QUESTIONHOW MUCH OF THIS PROCESS

DO WE NEED TO GO THROUGH?

MANAGEMENT PROCESS

Knowledge

Risk

NEED TO QUANTIFY THE RISK


IMPLEMENTATION THROUGH NEW TECHNOLOGY

STOCHASTIC MODELLING

ADAPTIVE HISTORY MATCHING

RESERVOIR MONITORING

NEW MATHEMATICAL FORMULATIONS FOR SIMULATORS

MULTIPHASE PIPELINE SIMULATORS

MASSIVE PARALLEL PROCESSING

KNOWLEDGE BASE SYSTEMS

COMPUTER AIDED PRODUCTION (CAP) TOOLS


COMPUTER AIDED PRODUCTION (CAP) TOOLS

THE POWERFUL AND PROVEN COMPUTER TECHNOLOGIES

THAT HAVE BEEN USED BY SPECIALISTS

BEING MADE AVAILABLE TO AND USABLE BY THE PRACTISING PROFESSIONAL


NEEDS OF THE PRACTISING PROFESSIONAL

EASE-OF-USE

PRODUCTIVITY

TRANSPARENT TECHNOLOGY

TASK ORIENTED APPROACH

KNOWLEDGE BASED SYSTEMS

METHODOLOGY ( HENCE REPEATABILITY)


CONTENT

RESERVOIR MANAGEMENT PROCESSDEFINITIONOBJECTIVESMETHODOLOGYIMPLEMENTATION




COMPETITIVE ADVANTAGE

IF TOOLS BECOME STANDARDMETHODOLOGY

SOFTWARE

COMPETITIVE ADVANTAGE MUST BE THE UNDERSTANDING OF FUNDAMENTALS

KNOW-HOW

Example: Well Test Analysis


WELL TEST ANALYSISBREAKTHROUGH IN THE 1980’S

FROM INDIVIDUAL METHODS GIVING DIFFERENT ANSWERS TO AN INTEGRATED METHODOLOGY BASED ON SIGNAL THEORY

WELL TEST ANALYSIS SOFTWARE

PERSONAL COMPUTERS

DIFFERENT INTERPRETERS USING THE SAME METHODOLOGY GET THE SAME ANSWERS

SIDE EFFECTSERRONEOUS ANALYSES, FASTER

SOLUTIONEDUCATION / TRAINING


CONTENT

RESERVOIR MANAGEMENT PROCESSDEFINITIONOBJECTIVESMETHODOLOGYIMPLEMENTATION




NEW CURRICULUMSPECIALISTS THAT KNOW HOW TO WORK

EFFECTIVELY IN MULTI-DISCIPLINARY TEAMS

Fundamental Understanding of:Reservoir Characterisation, Reservoir Modelling, Reservoir Simulation, and Field Management

The Processes for Integrating and Processing All Available Information in Order to Make Reservoir Management Decisions

Work Flow Concepts

Links Between the Various Types of Data


MSc Specifications

Follow the reservoir management process


EXAMPLE:THE MSc IN PETROLEUM ENGINEERING AT IMPERIAL COLLEGE

THE RESERVOIR MANAGEMENT PROCESS

MODULE 4:RESERVOIR

PERFORMANCE

INDIVIDUAL RESEARCH PROJECT

MODULE 5: FIELD DEVELOPMENT

MODULE 2: RESERVOIRCHARACTERISATION

MO

DU

LE 3

: W

ELL

PER

FOR

MA

NC

E

MODULE 1: FUNDAMENTALS

GR

OU

P FIELD PR

OJEC

T

IND

USTR

YPR

ESENTA

TION

S

THE MSc IN PETROLEUM ENGINEERING

PREDICTION OFRESERVOIR

PERFORMANCE


FIELD DEVELOPMENTPLAN

RESERVOIRCHARACTERISATION

PRED

ICTI

ON

OF

WEL

LPE

RFO

RM

AN

CE

IMPL

EMEN

TATI

ON

KN

OW

LEDG

EW

ISDO

MIN

FOR

MA

TION

DATA


MSc Specifications

Lectures only by experts in their fieldsFollow the reservoir management process


MSc Specifications


Students with fundamental background


MSc Specifications


Fundamental / Application / Support coursesStudents with fundamental background


IntroductionBasic Petroleum Geology

Basic Petroleum GeophysicsRock properties

Sub-Surface Mapping

Reservoir Fluids

Hydrocarbons in-place and ReservesProduction Mechanisms

Flow In Porous Media

DrillingIntroduction to petroleum economics

Geological, geophysical andgeochemical modeling

Geomechanics

PetrophysicsProduction logging

Fluid sampling and analysisWell Testing

Integration into reservoir modelGroup Project Phase 1:

Reservoir Characterization

FUN

DA

MEN

TALS

103

hrs

RES

ERVO

IRC

HA

RA

CTE

RIZ

ATI

ON

183

hrs

Oct

ober

Nov

embe

rD

ecem

ber

Well completion practicesPrinciples of well production

Reservoir Performance predictionNumerical Reservoir Performance predictors

UpscalingPractical use of numerical simulators

History matching, predictions and optimisationGroup Project Phase 2:

Predictions and Well Placement Optimization

Process engineering/surface facilitiesExtending field life and improved oil recovery

Health, safety and environmentEconomics

Group Project Phase 3:Surface Facilities and Development Plan

WELL 42

RESER

VOIR

114PER

FOR

MA

NC

EFIELD

DEVELO

PMEN

T 96

JanuaryFebruary

March

EarlyM

ayM

ay toSeptem

ber

EXAMS

INDIVIDUAL PROJECT


MSc Specifications


Fundamental / Application / Support coursesBlock teaching



MSc Specifications



Lectures/notes coordinated and integrated



MSc Specifications




Integration with Petroleum Geoscience



MSc in PETROLEUM GEOSCIENCE

RES

ERVO

IRC

HA

RA

CTE

RIS

ATI

ON

FUN

DA

MEN

TALS

TER

M 1

TER

M 2

-4MSc in

PETROLEUM ENGINEERING

Structural & Stratigraphic Analysis of Sedimentary Basins

GeophysicsProduction Logging

Fluid Sampling & Analysis

Well Test Analysis

Development Geologyand Reservoir Modelling

Reservoir Fluids

STOOIP & ReservesFlow in Porous Media

Drilling

Production MechanismsPetroleum Engineering

GeomechanicsWell Performance

Basin ModellingStructures, Fluids & Pressures

Group project(Barrel Award)

Maureen Group Project (Colin Wall Award)

Individual Research Project Individual Research Project

Reservoir PerformanceField Development

GeostatisticsSequence statigraphy

Petroleum Geology, Petroleum Geophysics, Rock PropertiesGeological Field trip

Reservoir Geology, Geophysics and GeochemistryPetrophysics & Formation Evaluation

Petroleum Economics

Maureen Group Project (Reservoir Characterisation)Integration into Reservoir Model


MSc Specifications





Teach prevailing commercial softwareIntegration with Petroleum Geoscience


MSc Specifications





Use actual field dataTeach prevailing commercial softwareIntegration with Petroleum Geoscience


Use of field data

Tutorials for taught coursesGroup field project

Phase 1: Reservoir characterisation16 teams (Petroleum Engineering+Geoscience)Phases 2: Production planning8 teams (Petroleum Engineering)

Phase 3: Field development8 teams (Petroleum Engineering)

Individual research projects


Field data: Maureen FieldBlock 16/29a (UK sector of the North Sea)Phillips UK operator 1983-19994 appraisal,12 production and 7 water injection wells seismic traces and interpreted maps;geological maps; core photographs; routine and special core analysis reports; PVT analysis reports; RFT data; DST and production test data;monthly production data


Field data: Maureen Field


Maureen Group Field ProjectPhase 1: Reservoir characterisation

10 days, December

5-6 wellsSTOIIPReserve estimatesPreliminary 3D model 1

10

100

1000

10000

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4Fractional Porosity

Per

mea

bili

ty, m

D

A BC DE F

OWC

Layer A

367

324

283

0

490

341

191193

157

123

0

313

173

61

0

50

100

150

200

250

300

350

400

450

500

P10 P50 P90 Maximum Most Likely Minimum

Probability:

Oil,

MM

bbl

STOIIP

Recoverable

Stochastic Deterministic

13150

13200

13250

13300

13350

13400

13450

13500

135500 0.05 0.1 0.15 0.2 0.25 0.3 0.35

Fractional Porosity

Dep

th, f

t

RCAL PorosityRCAL Porosity CorrectedLog Porosity

Last test rate only

Entire rate history

10-3 10-2 10-1 1 10 102

Elapsed time, ∆t ( hours)

Pres

sure

Cha

nge,

∆p,

and

Der

ivat

ive

( psi

)

103

102

10

1

10-1


Maureen Group Field ProjectPhase 2: Well placement & Production Optimization

6 days, February

simulation model optimized well placement planoil recovery cumulative oil production optimized well designartificial lift options a drilling plancasing design

0

10000

20000

30000

40000

50000

0 2 4 6 8 10 12 14 16 18Years

Oil

rate

, st

b/d

0

20

40

60

80

100

120

140

160

180

200

Cu

mu

lati

ve o

il

pro

duct

ion

, m

mst

b

Oil Rate

Cum. Oil Production

I.P.R

THP = 700 psia

600

500

400

300

0 104 2 104

Oil Rate, STB/D

2000

3000

BHP

, psi

a

4000

Hole Size

Casing Size

36’’ 30’’

24’’ 20’’

17 ½’’ 13 3/8’’

12 ¼’’ 9 5/8’’

8 ½ ’’ 7’’

Maureen 2 FPSO

Mio-Oligocene Sand

Balder

Formation

Maureen Pay

Ekofisk Chalk and Sands

Maureen 1 Drill 17 ½” hole

Drill 12" hole

Drill 8 ½” hole

Drill 24" hole 0

2000

4000

6000

8000

10000

12000

14000

160000 20 40 60 80 100

Time (Days)

Depth ft M

DR

KB

completing

Drill 36"hole

plug back coring


Maureen GroupField ProjectPhase 3: Development plan

10 days, March

improved recovery plansurface production facilities HSE planeconomic viability abandonment planassessment of risksColin Wall prize

CPI

3 rd

Separator

GlycolMake up

2 nd

Separator 1st

Separator

Water Skimmer

TestSeparator

Deh

ydra

tor

Gly

col

Deh

ydra

tor

Crude Oil From Wells

TO INJECTION WELLS

OIL TO SALE

GAS TO SALE

GAS FOR Gas Lift

GAS OILWATER

Cooler

Compressors

3 Stage Compressors

waterwater water

GasGas

Gas

OilOil Oil

Oil Oil

Gas

waterwater

-250

-200

-150

-100

-50

0

50

100

150

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Pres

ent V

alue

, £m

illio

n

Excluding AbandonmentIncluding Abandonment

-500

-400

-300

-200

-100

0

100

200

300

400

500

600

-100 -75 -50 -25 0 25 50 75 100

% Change from Base Case Values

NPV, £ million

Oil PriceCritical : $12.05

Discount FactorCritical : 17.4%

InflationCritical : 6.4%

CAPEXCritical : £930million

OPEXCritical : £420million

Lease RateCritical : £3.23/bbl


THE ULTIMATE RESERVOIR MANAGEMENT GOAL

TO MODEL A PETROLEUM RESERVOIR AND ASSOCIATED WELL AND SURFACE FACILITIESWITH SUCH AN ACCURACY

THAT ON-GOING PREDICTIONS CAN BE USED WITH CONFIDENCE TO OPTIMISE PRODUCTION OPERATIONS, INCREASE RECOVERY AND REDUCE OPERATING COSTS

THEREBY SUBSTANTIALLY INCREASING ECONOMIC RETURN WITHIN MANAGEMENT GUIDELINES

evolution of reservoir management · pdf filereservoir performance reservoir management...

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