Introduction Oct07

Applied Reservoir Engineering
Introduction
What is Reservoir Engineering?
The ART of developing and producing

oil and gas fields in such a manner as
to obtain a high economic recovery
T. V. Moore (1955)
Reservoir Engineering
Introduction 1.2
Reservoir Engineering Tasks
Describe the Reservoir

– Rock and fluid properties
– Volumes of oil and gas in place
– Natural drive mechanisms
Determine a Plan of Development
– Well count and facilities size versus time
– Desired production rates and limits
– Estimates of recoverable oil and gas volumes (reserves)
Implement the Plan
– Acquire and analyze surveillance data
– Revise description as necessary
– Optimize recovery (value)
Introduction 1.3
Reservoir Engineering Workflow
Reservoir Analysis Tools Reservoir Types Reservoir
Description Processes
Volumetric Volumetric Gas
Calculations
Water Drive Gas
Material Balance
Gas Condensates
Well Testing
Well Productivity
Volatile Oil
Oil Field
Rock Aquifers
Fluid Displacement Undersaturated Development
Properties Solution Gas Drive Oil
Coning, Cusping
Fluid and Horizontal
Properties Water Drive Oil Gas Field
Wells
Development
Reservoir Gas Cap Oil
Simulation
Waterflooding
Decline Curve
Analysis
Introduction 1.4
Asset Management
Creating Value from a Petroleum Reservoir

Resource Base = Original Oil in Place (OOIP)
Estimated Ultimate Recovery (EUR) = OOIP * Recovery Factor
Asset (Balance Sheet) = Remaining Reserves
Remaining Reserves = EUR – Cumulative Production
Cash Flow (P&L Statement) = Annual Production * Product Prices

– Operating Cost
– Capital Investment
Time Value of Money
Introduction 1.5
The Asset Team
Geophysics
Geology
Petrophysics
Drilling Engineering
Production Engineering
Facilities Engineering
Operations
Transportation
Marketing
Introduction 1.6
Unit Conversion Factors
Most Common Systems
– Field Units
– Practical SI
– Variations to Above
Must be Able to Convert Between

Systems
– Convert Quantities to Units Applicable to
Equation
– Adjust Equation to Account for Desired
System
Introduction 1.7
Typical Unit Quantities
Variable Symbol SI Practical SI Field
Permeability k m2 10-3 (μm)2 millidarcy (md)
Thickness or Length h/L m m ft
Area A m2 m2 ft2
Flow Rate (liquid) qo or qw m3/sec m3/day bbl/day
Flow Rate (gas) qg m3/sec m3/day ft3/day
Formation Volume Factor
Bo or Bw rm3/sm3 rm3/sm3 rbbl/stb
(liquid)
Formation Volume Factor (gas) Bg rm3/sm3 rm3/sm3 rcf/scf or rcf/stb
Gas-Oil-Ratio GOR sm3/sm3 sm3/sm3 scf/stb
Viscosity μ Pascal • sec 10-3Pascal • sec cp
Compressibility c Pa-1 (103Pa)-1 = kPa-1 psi-1
Pressure p Pa Bars psi
Porosity φ fraction fraction fraction
Time t sec hr or day hr or day
Introduction 1.8
Some Conversion Factors
1 millidarcy = 10-3 darcy 0.987x 10-15m2 0.987x 10-3 (μm)2
1 Foot 0.3048 m
1 Acre = 43560 ft2 4046.856 m2 0.40468 Hectare
1 Barrel = 5.615 ft3 0.15899 m3

= 42 US gallons
1 cp 10-3 Pascal • sec
1 psi 6894.76 Pa = 6.8948 kPa 0.06895 Bar = 0.06804 atm
MHA CONVERT Program Provided For Additional Conversions
Introduction 1.9
Mass and Volume Measurement
Production in Terms of Mass
– 1 Metric Ton of Oil = 2205 pounds
– Density = 825 kilograms/m3
– Equivalent API Gravity = 40 Degrees
Using CONVERT, Production in Terms of
Volume
– SI Unit Volume = 1.213 m3
– Field Unit Volume = 7.627 STB
Material Balance and Flow Equations
Based on Volumes
Introduction 1.10
Reservoir Versus Surface Volumes
Surface Volumes
– Surface Conditions of Pressure and Temperature
– OOIP and OGIP
– Flow Rates: qo, qw and qg
Reservoir Volumes
– Water Encroachment
– Fractional Flow Calculations
Formation Volume Factors (Bo, Bw, Bg)

– Reservoir Volume / Surface Volume
Introduction 1.11
Reservoir Engineering: Starting Line
Reservoir Structure and Thickness

Initial Pressure Distribution
– Initial Pressure at Datum
– Pressure Gradient Reflects Density of Fluids
Present
Initial Saturation Distribution
Reservoir Engineering Calculations
– Changes of Pressures and Saturations with Time
– Production and Injection of Fluids
Introduction 1.12
Example Top of Structure Map
Oil-Water Contact
(OWC)
Introduction 1.13
Fluid Distributions in Reservoirs
Originally Water Filled

Oil Migration and Water Drainage
Long Term Gravity Segregation
Gas-Oil Contact
Oil-Water Contact
Introduction 1.14
Capillary Induced Saturations
Gas Cap ⇒ Gas, Oil and Water
Oil Column ⇒ Oil and Water
Water Leg ⇒ Water
Sum of Saturations Equals 1.0
Introduction 1.15
Reservoir Pressure Versus Depth
Reservoir Pressure Versus Depth Plot
4500
2200 psi / 5000 ft = 0.44 psi/ft

Normally Pressured Gradient: 0.43 - 0.47 psi/ft
5000
3
Gas - 0.1 psi/ft = 14.4 lb/ft
5500 Gas-Oil Contact

Depth, ft
3
Oil - 0.35 psi/ft = 50.4 lb/ft
6000 Water-Oil Contact
3
Water - 0.45 psi/ft = 64.8 lb/ft
6500
7000
2000 2100 2200 2300 2400 2500 2600 2700 2800 2900 3000
Pressure, psi
Introduction 1.16

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Applied Reservoir Engineering

The ART of developing and producing

 Describe the Reservoir

Creating Value from a Petroleum Reservoir

Estimated Ultimate Recovery (EUR) = OOIP * Recovery Factor

Asset (Balance Sheet) = Remaining Reserves

Remaining Reserves = EUR – Cumulative Production

Cash Flow (P&L Statement) = Annual Production * Product Prices

 Must be Able to Convert Between

1 Acre = 43560 ft2 4046.856 m2 0.40468 Hectare

1 Barrel = 5.615 ft3 0.15899 m3

1 psi 6894.76 Pa = 6.8948 kPa 0.06895 Bar = 0.06804 atm

MHA CONVERT Program Provided For Additional Conversions

 Formation Volume Factors (Bo, Bw, Bg)

 Reservoir Structure and Thickness

 Originally Water Filled

 Gas Cap ⇒ Gas, Oil and Water

 Oil Column ⇒ Oil and Water

 Water Leg ⇒ Water

 Sum of Saturations Equals 1.0

2200 psi / 5000 ft = 0.44 psi/ft

5500 Gas-Oil Contact

6000 Water-Oil Contact

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Describe the Reservoir

Must be Able to Convert Between

Formation Volume Factors (Bo, Bw, Bg)

Reservoir Structure and Thickness

Originally Water Filled

Gas Cap ⇒ Gas, Oil and Water

Oil Column ⇒ Oil and Water

Water Leg ⇒ Water

Sum of Saturations Equals 1.0