RESERVOIRogs.ou.edu/docs/meetings/OGS-workshop-horizontal... · Productivity Improvement Comparing...
Transcript of RESERVOIRogs.ou.edu/docs/meetings/OGS-workshop-horizontal... · Productivity Improvement Comparing...
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Chapter 1
RESERVOIR
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Chapter 1 Will a horizontal well make
sense (cents) in my candidate reservoir?
Are there economic reserves to provide a satisfactory rate of
return?
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Recoverable Oil
Primary 10%
Secondary 10%
Residual25%
Movable55%
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Reservoir Considerations
The first portion of the chapter
is an abridged version of material from Dr. Sada Joshi’s book and
other published papers of his
and is used with his permission.
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Dr. S.D. Joshi
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Objectives Selecting reservoirs for horizontal well application
Important parameters that affect screening and commercial success
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Worldwide Horizontal Drilling Activity
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Horizontal Wells As of 2001:
Over 17,000 wells in the United States
Over 12,000 wells in Canada
About 5,000 wells in the rest of the world!
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Horizontal Wells Applications § Natural fractures § Thin zones (7 to 10 ft thick)
§ Coning applications, Infill Drilling § Tight gas formations (k ~ 0.01 md)
§ Conventional gas reservoirs
§ Waterfloods (Texas, Utah, Canada, Middle East)
§ CO2 floods (West Texas)
§ Heavy oil (Canada, California, Venezuela)
§ Shale reservoirs
§ Coal bed methane
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Issues § Well Rate
§ Well Reserves
§ Well Cost
§ Probability of Success
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Approximate Horizontal Well Costs Onshore: § New horizontal well from the surface
= 2 to 2.5 times vertical well costs
§ Re-entry horizontal well
= 0.6 to 1.2 times vertical well costs
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Horizontal Well Rates Stabilized rates of horizontal wells
are 2 to 4 fold more than
stabilized rates of vertical wells.
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Horizontal Well Reserves Horizontal well reserves are observed to be the same as to as high as 6 times vertical well reserves.
In certain cases, where vertical wells are uneconomical, per well reserves of a horizontal can be significantly higher than a vertical well reserves.
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Productivity Improvement Factor Comparing the performance of 12,080 horizontal wells and 137,950 off-set vertical wells drilled
as of December 2001:
1) Medium productivity improvement factor is in the range of 3 to 5.
2) After five years of production, the cumulative oil production from horizontal wells is about 2 times larger (range 1.5 to 3) than the cumulative oil production from vertical wells.
3) About one in three horizontal wells have been economic failures. Thus, economic success rate of horizontal wells is 66%.
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Key Parameters § Fracture intensity and direction § Primary recovery – well should be
perpendicular to natural fractures § Secondary recovery – well should be
parallel to natural fractures
§ Net pay – contiguous zone § Well spacing
§ Vertical & horizontal permeability
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Key Parameters § Areal anisotropy (directional permeability)
§ Formation damage and required cleanup
§ Multi-well program (learning curve)
§ Geological control
§ Reservoir bottom hole pressure
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Key Parameters § Drilling Costs
§ Completion Costs
§ Wellbore size and length
§ Cooperation in various disciplines
§ Confidence in reservoir simulation
(modeling)
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Well Configurations
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Potential Formation Damage Guidelines Oil Wells:
k > 1 Darcy No damage k ~ 500 md Minimum damage k < 100 md Formation problems likely k < 10 md Serious formation damage probable
Gas Wells:
k > 10 md Minimum to no damage k < 5 md Some damage k < 1 md Formation damage likely
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kh = kx ky = effective horizontal perm
ky / kx indicates magnitude of
anisotropy
Permeability Anisotropy
kx Horizontal
Plane
ky
kv
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Ask yourself these questions: Does a vertical well in your field produce satisfactory economics?
What is your horizontal well AFE cost in relation to actual vertical well costs?
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Risk Management If horizontal AFE cost is greater than 2.5 to 3 times vertical well cost you have a high risk of economic failure.
Manage your risk and drill vertical wells.
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Reservoir Engineering Key Items To Determine § Present bottom hole pressure in target
§ Present oil saturation in target § Model & history match production
§ Predict horizontal well performance
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Gathering Reservoir Data Know your target reservoir
Establish individual well files
Gather primary production history
§ For individual wells § For lease or field
§ For offset wells/ leases
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Gathering Reservoir Data If Secondary Recovery is Present:
Determine injection AND production histories § For individual wells
§ For lease or field
§ For offset wells/ leases
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Gathering Reservoir Data Obtain & file all logging information available
§ Drillers logs
§ Old E logs § All modern open hole logs
§ All cased hole logs
Find all Core Analysis
§ Determine the Actual Core Location § Use OGS Core Library Facilities
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Gathering Reservoir Data § Obtain all DST and initial production tests
§ List all subsequent production tests
§ Find all PVT test data
§ Use values from “Standards”
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Gathering Reservoir Data Using API gravity you can obtain
§ PVT correlations
§ Relative permeability correlations § Viscosity correlations
Check viscosity at reservoir temperature
conditions!
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Which Wellbore to Use? New Wells § Planning from the get go
§ Accuracy of formation tops, continuity
§ Need to know casing points for long and medium radius techniques very accurately
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Which Wellbore to Use? Existing Wells § Cased holes
§ Cutting windows § Milling sections
Open Hole § Going out the casing shoe
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Which Wellbore to Use? Plugged and Abandoned (P&A) Wells § When and how was the well plugged?
§ Is there a record of JUNK in the hole? § What was reason for P&A?
Wash Downs § Open hole cement plugs
§ Any casing strings
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Which Wellbore to Use?
Exiting Casing Exiting Shot Hole
Hydraulic Frac
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Reservoir Simulation For the final screening process: § Gather reservoir history, rock & fluid
properties
§ Conduct history match to validate model
inputs/adjustments
§ Input data into reservoir simulator
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Reservoir Simulation Based on the model results and the cost
estimate for the horizontal well,
what are the economics?
The model results can encourage the project forward or it may keep you from spending
your drilling dollars unwisely.
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Reservoir Simulation With confidence in the predictive quality of
the model, various scenarios can be checked.
Respective payouts – or lack thereof –
can be investigated.
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Reservoir Simulation Confidence in the model’s predictions is
VERY IMPORTANT but it will come with experience.
This is the “hidden” value of the simulation:
Avoid financial failure!
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1
10
100
1000
0 1 2 3 4 5 6 7 8 9 10
Producing Rate, bpd
Oil Rate for Horizontal Wells Water Rate for Horizontal WellsOil Rate for Vertical Wells Water Rate for Vertical Wells
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1
10
100
1000
0 1 2 3 4 5 6 7 8 9 10
Producing Rate, bpd
Oil Rate for Horizontal Wells Water Rate for Horizontal WellsOil Rate for Vertical Wells Water Rate for Vertical Wells
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Reservoir Conclusion § Dig deep for all necessary data
§ Build a computer model of the field
§ Have confidence in the simulation history
match
§ Use future production predictions for economics