smart automation well venting lessons learned from natural gas star producers technology transfer...

Smart Automation Well VentingSmart Automation Well Venting

Lessons Learned Lessons Learned from Natural Gas STARfrom Natural Gas STAR

Producers Technology Transfer WorkshopProducers Technology Transfer Workshop

ExxonMobil Production Company,ExxonMobil Production Company,American Petroleum Institute and American Petroleum Institute and EPA’s Natural Gas STAR ProgramEPA’s Natural Gas STAR Program

September 21, 2004September 21, 2004

Reducing Emissions, Increasing Efficiency, Maximizing Profits

Smart Automation Well Venting: AgendaSmart Automation Well Venting: Agenda

Methane LossesMethane Losses

Methane RecoveryMethane Recovery

Is Recovery Profitable?Is Recovery Profitable?

Industry ExperienceIndustry Experience

Discussion QuestionsDiscussion Questions


Methane LossesMethane Losses

360,000 condensate and natural gas wells (on and 360,000 condensate and natural gas wells (on and offshore) in the U.S.offshore) in the U.S.11

Accumulation of liquid hydrocarbons or water in the Accumulation of liquid hydrocarbons or water in the well bores reduces, and can halt, productionwell bores reduces, and can halt, production

Common “blow down” practices to temporarily Common “blow down” practices to temporarily restore production can vent 50 to 600 Mcf/yr to the restore production can vent 50 to 600 Mcf/yr to the atmosphere per wellatmosphere per well

Estimate 7 Bcf/yr methane emissions from U.S. Estimate 7 Bcf/yr methane emissions from U.S. onshore well ventingonshore well venting11

11Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990 - 2002 Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990 - 2002


What is the Problem?What is the Problem?

Conventional plunger lift systems use Conventional plunger lift systems use gas pressure buildups to repeatedly lift gas pressure buildups to repeatedly lift columns of fluid out of wellcolumns of fluid out of well

Fixed timer cycles may not match Fixed timer cycles may not match reservoir performancereservoir performance

Cycle too frequently (high plunger velocity)Cycle too frequently (high plunger velocity)

Plunger not fully loadedPlunger not fully loaded

Cycle too late (low plunger velocity)Cycle too late (low plunger velocity)

Shut-in pressure can’t lift fluid to topShut-in pressure can’t lift fluid to top

Gas slippage around plunger and fluid Gas slippage around plunger and fluid (waste of motive energy)(waste of motive energy)

Source: Weatherford


Conventional Plunger Lift OperationsConventional Plunger Lift Operations

Manual, on-site adjustments tuned plunger Manual, on-site adjustments tuned plunger cycle time to well’s parameterscycle time to well’s parameters

Not performed regularlyNot performed regularly

Do not account for gathering line pressure Do not account for gathering line pressure fluctuations, declining wells, plunger wearfluctuations, declining wells, plunger wear

Manual vent to atmosphere when plunger lift Manual vent to atmosphere when plunger lift is overloadedis overloaded


How Can Smart Automation Reduce How Can Smart Automation Reduce Methane Emissions?Methane Emissions?

Smart automation continuously varies plunger Smart automation continuously varies plunger cycling to match key reservoir performance cycling to match key reservoir performance indicatorsindicators

Well flow rateWell flow rate

Measuring pressureMeasuring pressure

Successful plunger cycleSuccessful plunger cycle

Measuring plunger travel timeMeasuring plunger travel time

Plunger lift automation allows producer to Plunger lift automation allows producer to vent well to atmosphere less frequentlyvent well to atmosphere less frequently


Automated ControllersAutomated Controllers

Low-voltage; solar and battery Low-voltage; solar and battery poweredpowered

Monitor well parametersMonitor well parameters

Adjust plunger cyclingAdjust plunger cycling

Source: Weatherford

Remote well managementRemote well management Continuous data loggingContinuous data logging

Remote data transmissionRemote data transmission

Receive remote instructionsReceive remote instructions Source: Weatherford


Plunger Lift CyclePlunger Lift Cycle


Methane SavingsMethane Savings

Methane emissions savings a secondary benefitMethane emissions savings a secondary benefit

Optimized plunger cycling to remove liquids Optimized plunger cycling to remove liquids increases well production by 10 to 20%increases well production by 10 to 20%11

Additional 10%Additional 10%11 production increase from avoided production increase from avoided ventingventing

500 Mcf/yr emissions savings for average U.S. 500 Mcf/yr emissions savings for average U.S. wellwell

1 Weatherford


Other BenefitsOther Benefits

Reduced manpower cost per wellReduced manpower cost per well

Continuously optimized production conditionsContinuously optimized production conditions

Remotely identify potential unsafe operating Remotely identify potential unsafe operating conditionsconditions

Monitor and log other well site equipmentMonitor and log other well site equipment Glycol dehydratorGlycol dehydrator

CompressorCompressor

Stock TankStock Tank

VRUVRU


Is Recovery Profitable?Is Recovery Profitable?

Smart automation controller installed cost: ~$11,000Smart automation controller installed cost: ~$11,000 Conventional plunger lift timer: ~$5,000Conventional plunger lift timer: ~$5,000

Personnel savings: double productivityPersonnel savings: double productivity Production increases: 10% to 20% increased productionProduction increases: 10% to 20% increased production

Savings = Savings =

(Mcf/yr) x (10% increased production) x (gas (Mcf/yr) x (10% increased production) x (gas price)price)

+ (Mcf/yr) x (1% emissions savings) x (gas price)+ (Mcf/yr) x (1% emissions savings) x (gas price)

+ (personnel hours/yr) x (0.5) x (labor rate)+ (personnel hours/yr) x (0.5) x (labor rate)

$ savings per year$ savings per year


Economic AnalysisEconomic Analysis

Non-discounted savings for average U.S. Well = Non-discounted savings for average U.S. Well =

(50,000 Mcf/yr) x (10% increased production) x ($3/Mcf)(50,000 Mcf/yr) x (10% increased production) x ($3/Mcf)

+ (50,000 Mcf/yr) x (1% emissions savings) x ($3/Mcf)+ (50,000 Mcf/yr) x (1% emissions savings) x ($3/Mcf)

+ (500 personnel hours/yr) x (0.5) x ($30/hr)+ (500 personnel hours/yr) x (0.5) x ($30/hr)

- ($11,000) cost- ($11,000) cost

$13,000 savings in first year$13,000 savings in first year

10 month simple payback10 month simple payback


Industry ExperienceIndustry Experience

BP reported installing plunger lifts BP reported installing plunger lifts withwith automated control systems in ~2,200 wellsautomated control systems in ~2,200 wells 900 Mcf reported annual savings per well900 Mcf reported annual savings per well $12 million costs including equipment and labor$12 million costs including equipment and labor $6 million total annual savings$6 million total annual savings

Another company shut in mountaintop wells Another company shut in mountaintop wells inaccessible during winterinaccessible during winter Installed automated controls allowed Installed automated controls allowed

continuous production throughout the yearcontinuous production throughout the year11

1Morrow, Stan and Stan Lusk, Ferguson Beauregard, Inc. Plunger-Lift: Automated Control Via Telemetry. 2000.


Discussion QuestionsDiscussion Questions

To what extent are you implementing these To what extent are you implementing these technologies?technologies?

What are the barriers (technological, What are the barriers (technological, economic, lack of information, regulatory, economic, lack of information, regulatory, focus, manpower, etc.) that are preventing focus, manpower, etc.) that are preventing you fromyou from implementing this technology?implementing this technology?

smart automation well venting lessons learned from natural gas star producers technology transfer...

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