rethinking an industry recommended practice

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Rethinking an Industry Recommended Practice: Lessons being Learned from Monograph 5 (Type Well Profiles) Jennifer Fitzgerald Occidental Petroleum, VP Corporate Reserves

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Page 1: Rethinking an Industry Recommended Practice

Rethinking an Industry Recommended Practice:Lessons being Learned from Monograph 5 (Type Well Profiles)

Jennifer FitzgeraldOccidental Petroleum, VP Corporate Reserves

Page 2: Rethinking an Industry Recommended Practice

Vitaliy CharkovskyyJorge Faz*Jennifer FitzgeraldRandy FreebornDavid FulfordRussell Hall

* Chairperson

Committee Members

2

Steve HendricksonDilhan IlkRick KrenekJohn Lee, PHDRod SidleJohn Wright

Page 3: Rethinking an Industry Recommended Practice

SPEE Monograph 3, “Guidelines for the Practical Evaluation of Undeveloped Reserves in Resource Plays”

Published 2010

Set forth methods for determining proved areas within a resource play, along with methods for estimating per-well reserves for undeveloped locations within those proved areas

SPEE Monograph 4, “Estimating Ultimate Recovery of Developed Wells in Low-Permeability Reservoirs”

Published 2016

Presented and discussed several different methods of forecasting on a by-well basis

SPEE Monograph 5, “A Practical Guide to Type Well Profiles”

Published 20?? – Work in progress

A recommended practices guideline for the evaluation engineer to perform type well analysis, as well as, a guideline for assessing the reliability of type well profiles

Introduction – SPEE Monographs

3

Page 4: Rethinking an Industry Recommended Practice

Type Well Profiles (TWP)Estimated production profile for a typical well in a reservoir of interestUtilization of historical well performance from analogous wells

Introduction – Monograph 5

4

Page 5: Rethinking an Industry Recommended Practice

The purpose of this monograph is to be arecommended practices guideline for theevaluation engineer to perform type wellanalysis, focusing first on public or easilyobtained data, and then enhancing thereliability by supplementing detailed orproprietary data as necessary. Themonographs gives due consideration tothe “fit for purpose” confidence level tobe achieved. Secondly, this monographserves as a guideline for assessing thereliability of type well profiles.

Finding the Right Tool in the Toolbox

5

Page 6: Rethinking an Industry Recommended Practice

Common TWPPC for a sample of hyperbolic declines will often result in over curvature of the resulting average hyperbolic curve…

One Common Approach

6

EUR Stats:

… and results in an unsubstantiated EUR that is too high.

Page 7: Rethinking an Industry Recommended Practice

Simple Adjustment to the Common Approach

7

Using a constant well count results in an alternative TWP (TWPTC) which more closely matches the average EUR…

EUR Stats:

… although this requires tabulating the TWP to the maximum life of all underlying wells, which leads to a low TWP final rate.

Page 8: Rethinking an Industry Recommended Practice

Another Adjustment to the Common Approach

8

Using a constant well count coupled with consistent well lives results in an alternative TWP (TWPTC_L) which further improves the match to the average EUR… EUR Stats:

… particularly when limiting the resulting TWP final rate.

Page 9: Rethinking an Industry Recommended Practice

IdentifyPurpose

Area of Interest

Data Integration

Workflow Overview

9

Data RefinementData QC &

Diagnostics

Identify Determinants of Performance

Analog Identification & Selection

AnalysisDetermine TWP

Construction Method

Preparation of TWPs

Application

ValidationQA/QC

Bias Consideration

Uncertainty Analysis

Page 10: Rethinking an Industry Recommended Practice

Purpose dependent analysis

Identify minimal data necessaryfor analysis

Consider complications

Account for practicalities

Availability of additional data toenhance reliability of analysis

Ideal vs Reality

10

Identify

Page 11: Rethinking an Industry Recommended Practice

Challenges:

Data Storage

Data Integration

Novel Analysis

Complex Analysis

More is Better…Or is it?

11

Identify

Opportunities:

Enhanced Performance Analysis

Automation

Knowledge is Power

Page 12: Rethinking an Industry Recommended Practice

Managing Bias

12

Validation

Potential for multiple types of data bias toinfluence the outcome

Mitigation may be necessary to eliminate orgreatly reduce error associated with bias

Page 13: Rethinking an Industry Recommended Practice

Specific Types of Bias

13

Validation

Selection Bias

Normalization Bias

Forecast Bias

Population Bias

Survivor BiasVintage BiasPerformance Bias

Page 14: Rethinking an Industry Recommended Practice

Validate use of appropriate analog set

Validate results with diagnostics andhind-casting

Characterize the certainty level ofdata analysis

Validation & Uncertainty

14

Validation

Page 15: Rethinking an Industry Recommended Practice

Key Challenge: How to Integrate new recommendedpractices into corporate workflows

Internal policy and adoption

Software limitations

Integration

15

Page 16: Rethinking an Industry Recommended Practice

Too often engineers across anorganization reinvent the wheel

Ensure standards are met

Consistency of technique

Flexibility to allow for “fit for purpose”

Reinventing the Wheel

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Page 17: Rethinking an Industry Recommended Practice

Thank you!

Jennifer Fitzgerald, Monograph 5 Chairperson

[email protected]

https://SPEE.org

Questions

17