Production OptimizationHorizontal Well Analysis Performance

Supervised by:Mr. Farhad Khoshnaw

Prepared by: Peshawa Luqman Mahmood Ghazi

Contents:• What is horizontal wells• History of horizontal wells• Classification of horizontal wells• Application of horizontal wells• Horizontal wells compare to vertical wells• Horizontal well costs• Economic failure in horizontal wells• Future of horizontal wells

What is Horizontal Well?By oilfield convention, a horizontal well is defined as a well with an inclination angle of 90 degrees from the vertical. A vertical well is one with zero inclination angle.

History Of Horizontal Wells

• Some of the early horizontal well efforts date back to 1930.

• In the late 70’s and early 80’s, with oil prices around $35 a barrel, interest in horizontal wells was reignited.

The purpose of the horizontal wells was to:

• enhance well productivity,• reduce water and gas coning,• intersect natural fractures and to • improve well economics.

History Of Horizontal Wells

Classification of Horizontal Wells

1. Short-Radius2. Medium-Radius3. Long-Radius

Horizontal wells are normally characterized by their buildup rates and are broadly classified into three groups:

Classification of Horizontal Wells

The table below illustrated classification of horizontal wells

according to their Build Rate.

Application of Horizontal Wells

A) Hit targets that cannot be reached by vertical drilling.

B) Drain a broad area from a single drilling pad.

C) Increase the length of the "pay zone" within the target rock unit.

Application of Horizontal Wells

D) Improve the productivity of wells in a fractured reservoir.

E) Seal or relieve pressure in an "out-of-control" well.

F) Install underground utilities where excavation is not possible.

Horizontal Wells Compare to

Vertical Wells

To produce the same amount of oil, one needs fewer horizontal wells as compared to vertical wells. This results in reduced need for surface pipelines, locations, etc.

Horizontal Wells Compare to

Vertical Wells• Higher rates and reserves as compared

to vertical wells. This results in less finding cost and less operating cost per barrel of oil produced.

• vertical well operating costs are $7 to $9 per barrel of oil, the horizontal well operating costs are $3 to $4 per barrel.

Horizontal WellCosts

• The costs of horizontal well installation varies greatly depending on many site-specific factors.

• with estimates from $5,000 to $850,000 per well

• Price per foot estimates range from $25 to $85 and per day from $1,500 to $15,000.

Economic FailureIn Horizontal Wells

• Horizontal wells cost is greater than vertical wells about 2.5 to 3 times, so you have a high risk of economic failure.

• Eliminate the risk and drill vertical wells.

Future Of Horizontal Well

Modern methods allow the drilling of several thousand meters of horizontal sections, thereby increasing access to the edges of the reservoir and achieving higher recovery with fewer wells.

Future ofHorizontal Wells

References:• Petroleum Production Engineering, A Computer-Assisted

Approach by Boyun Guo, PH.D. , William C. Lyons, PH.D. and Ali Ghalambor, PH.D.

• Horizontal Wells by Ralinda R. Miller, P.G.• Cost/Benefits of Horizontal Wells by S. D. Joshi, SPE, Joshi

Technologies International.• A Review of Horizontal Well Technology and Its Domestic

Applications by Diane W. Lique.• Horizontal Wells-Subsurface Contaminats Focus Area• http://www.fuelsnews.com/low-oil-decimates-rig-count-produce

rs-hold-hope/

References: (Cont.)• http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3866387/• http://www.oges.info/3287/horizontal-well• http://

www.ogj.com/articles/print/volume-93/issue-25/in-this-issue/pipeline/survey-shows-successes-failures-of-horizontal-wells.html

• http://geology.com/articles/horizontal-drilling/

Any questions?