Digital Energy Workshop -June 8, 2010 The Value of Real-Time Data Subject: Wells - Increased Productivity

SPE Paper Number Good Sources

28467

Title

Summary of Paper

Identified Benefits

Gas Optimization at the Kuparuk River Field

Oil, water and gas are separated at three central processing facilities. Gas is compressed at each facility for use in gas lift operations and for miscible and immiscible water alternating gas pressure support projects. Currently the central processing facilities are gas handling limited. Therefore, a gas optimization strategy is vital to the efficient operation of the field. Implemtation of a lift gas allocation and production well selection strategy based on the incremental gas oil ratio and formation gas oil ratio concepts results in a significant increase in oil production from a field which is compression capacity limited. The benefit at the Kuparuk River field is approximately 10,000 BOPD or 3% of the total oil production.

10,000 BOPD or 3% of the total oil production

84166

Gas Lift Automation: Real Time Data to Desktop for Optimizing an Offshore GOM Platform

This paper discusses the problems engineers experienced understanding daily production variance before automation was installed, the system functionality of the automation system, and the results achieved. Project execution is also discussed because of its importance in ensuring the offshore personnel were engaged with the project. Financial justification for the Amberjack gas lift automation system was made from an estimated 450 BOEPD increase in production. The actual result was 600 BOEPD annualizzed over the year, which represents a 7% increase. It is important to note that the overall benefit of this system comes from engineers consistently using the system to access well data and make changes that increase producton. The system by itself will provide from one to two percent production increase by simply maintaining a constant gas lift injection rate in each well. But the real benfit comes from engineers noticing well opportunities and implementing gas lift redisigns, other forms of well work, communication with the field, and educating operators to recongnize opportunites.

The actual result was 600 BOEPD annualizzed over the year, which represents a 7% increase.

103248, Case A

Preparing a Business Case for Technology Investment in Production Operations

Murphy E&Ps deepwater platforms, Medusa and Frontrunner, together produce over 91 MBOEPD (at $60 per barrel this amounts to $5.5MM per day or $228K per hour). From the beginning of production, Murphy was experiencing a common problem back in their corporate office. The engineering and management personnel responsible for meeting production targets could not reliably see, from onshore the real time data collected offshore from the reservoirs, the wells, or the production process. Real time data available both onshore and offshore allowed engineering and operations to quickly identify a problem with a downhole valve. Identifying and correcting the problem early saved approximately 48 hours of production worth about $684,000.

Correcting a problem early saved approximately 48 hours of production worth about $684,000

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103248, Case B

Preparing a Business Case for Technology Investment in Production Operations

The proposal was to monitor and control the field with SCADA. The project provided monitoring and control capabilities on 108 producing wells, 37 injection wells, 3 remote gathering stations and 5 test stations.

Production accelerated 12%

Operations wanted to understand the benefits of automation for their field so recommended historical data be used for the bsiness cass. The team collected produciton and operating time data for the wells one year before and one year after SCADA was installed. The data showed that the wells accelerated their production after SCADA by approximately 12%. The team concluded that SCADA would be a good investment for the field. The project would provide a NPV of $170,000, an ROR of 69% and a DPI of 3.5.
103248, Case C

Preparing a Business Case for Technology Investment in Production Operations

A producer installed a SCADA system with pump-off controllers (POC) with the goal of improving production as well as pump failures. The project's business case was build around a 2% increase in production and a 20% reduction in well maintenance. After the POC's were installed a project audit was performed. The study showed that repairs for events that a POC could impact, primarily non-corrosion problems, decreased from a failure frequency of 1.2 failures per year before POC's to 0.4 afterwards. This accounted for approximately 60% to 70% of the failures in the field. At an average well work cost of $50,000, the reduction in failure rate produced a $35,000 benefit per well per year. Since the cost of a POC amounted to only $3500 per well per year, the project produced a pay-out of only 0.1 years.

Well work reduced $35,000 per year for a pay-out of 0.1 years.

110525, Case A

Optimizing the Production System Using Real-Time Measurements: A Piece of the Digital Oilfield Puzzle

This paper discusses the workflows utilized in identifying production optimization and enhancement opportunities from large amounts of streaming data flowing from a number of wells.

Restored production to previous levels, adding 20%

Observations on a large number of wells during a 2 year period show that over 50% can benefit from some form of optimization, resulting in a substantial increase in production.

On a high volume producer with a very high PI, an alarm was received on high pump intake pressure and low average motor current. Well test showed a decrease in flow rates by 20%. Further analysis indentified pump degradation as the problem. The pump would have failed had it continued working. The unit was proactively pulled and replaced to restore production. Such proactive intervention to avoid a catastrophic event was only piossible due to real time surveillance and process to continually optimize the equipment
110525, Case B

Optimizing the Production System Using Real-Time Measurements: A Piece of the Digital Oilfield Puzzle

One of the prime drives in ESP operations is run life. Initially run live averaged 60 days.

In one year, incremental production equivalent to $100,000 was added and at least $60,000 in equipment and rig casts were saved.

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The operator added new performations and lowered the equipment to increase run life from 60 to 122 days. Production data revealed that most of the liquid was coming from the top set of perforations. As the unit was sitting below the top of performations and a shroud cold not be installed due to clearance limitatios, there was not enough liquid flow past the motor to carry away the heat.

Based on data obtained through serveillance, it was recommended to raise the unit about 600 ft to be above the top set of performations. Through continued surveillance and analysis and timely recommendations, run life was increased four fold, from 122 days to 465 days, and well up-time was increased by over 15%. In one year, incremental production equivalent to $100,000 was added and at least $60,000 in equipment and rig casts were saved.

Degradation of ESP can cost significant amounts of money through increased electrical consumption and deferred production.
110525, Case C

Optimizing the Production System Using Real-Time Measurements: A Piece of the Digital Oilfield Puzzle

Looking back for a year, the surveillance data for a West Texas well demonstrated that the pump in-take pressure had been steadily rising. In order to maintain production, the pump frequency was increased using the VSD from 58 Hz to 63.5 Hz, resulting in increased electrical costs of 22%. Further analysis indicated that if the degraded pump were replaced, there would b a 64% increase in total fluid production with the pump running at a lower frequency. This would reduce power costs by 10% even with the increased production.

Replacing degraded pump increased production 64% while reducing power costs by 10%.

110525, Case E

Optimizing the Production System Using Real-Time Measurements: A Piece of the Digital Oilfield Puzzle

An analysis of the in-take pressure and productivity index of an ESP revealed that production could be improved by increasing the speed of the pump from 60 Hz to 62 Hz using the VSD. The resulting production improvement was 400 B/D or 6% without any additional capital expense.

Increasing speed of ESP increased production 400 B/D or 6%

112147, Case B

BP Norway's Field Of The Future Implementation - A Case Study

BP Norway's Field of the Future Implementation - A Case Study. This paper will take a look back over the substantial achievements and benefits htat have accrued through the implementation of these technologies and reviews the experience gained. It will also take a look forward to the plans BP Norway have for taking their achievements to an even higher level of performance by fully embracing innovative intelligent energy solution concepts in two major projects that come on line in 2010/11.

5% (minimum) increase in production.

In order to achieve adequate production rates from the low permeability chalk reservoir at Valhall field the wells are stimulated using a prop frac technique which is both very time consuming and very expensive. In 1999 one of the first applications of the fiber optic cables was to bring all the necessary data for making fracing decisions to shore, so the engineers from both BP and suppliers could work onshore suported by their full teams. Improvements delivered were a 5% (minimum) increase in production.

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Between the lines throughout all of the provided documentation of production improvements generated through improved communication technology is an undercurrent of best management practices of successfully integrating diverse teams of people through skilled communications management provided by the BP Norway team. This is an outstanding historical account of a well-documented technical transition and a testament to the staff that implemented the changes.
116519

Intelligent Fields Management at Woodside: A Low-cost Step Improvement in Field Management using off the Shelf Technology

The Intelligent Field Management (IFM) project was about aggregating data, manipulating it with models and visualizing the results. The business problems addressed include well testing, efficiency and trouble shooting, integrated data and anlysis, improved model characterization, prioritizing

10 to 1 benefits over cost

Implementing IFM had a significant and positive impact, including increased production, improved work efficiency and increased integration and decision making. Well testing - fewer needed; also allowed for fewer production dispruptions efficiency and trouble shootingdata for models is always known and better visibility of data is helpful. Integrated data and anlysis - perhaps the greatest immediate benefit of IFM has been a step change improvement in integrating both data analysis and work practices. Improved model characterization- network model runs every 1/2 hr because the data can be quality checked automatically Prioritizing - again this was about visibility into data making better operating choices
128682, Case A

A Dynamic Business Needs Dynamic Solutions; How Field of the Future Turned BP into a Smooth Operator

Recently the state-of-the-art in intelligent operations has evolved from a reactive capability to a predictive capability. Data streaming, which was initially installed to allow onshore support teams to view and respond to actual process data, has now been coupled successfully with mechanixtic and data-driven models to provide a look-ahead capability. real time performance monitoring has morphed into predictive performance analysis.

Increased production was 3500 B/D, or 10% of flow from two tiebacks.

A hybrid data analytical and dynamic modelling study was executed in 2008 in teh Valhall Field to optimise the start-up procedure for the flank wells. Through the study, a set of start-up criteria were developed to support the asset in deciding when to bring a well online. The start-up criteria significantly reduced the number of failed start-up attempts, improving well availability and up-time. The overall increase in production was 3500 B/D, approximately 10% of the total production from the two flank tie-backs.

128682, Case B

A Dynamic Business Needs Dynamic Solutions; How Field of the Future Turned BP into a Smooth Operator

In 2008 an attempt to bean up one of the Tambar wells failed when the header pressure was not cut significantly prior to start-up. With no gaslift the well was bull-headed with nitrogen to displace the stripped oil back into the reservoir. Working in the virtual environment, an optimum bean-up strategy was determined. The model-based advice was a success and the well was broought back online at a rate of over 3000 B/D. For the latter part of 2008, the well was kept online by dropping the manifold pressure at Tambar prior to start-up, as per the recommendations generated from the dynamic modelling work.

3000 B/D

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128682, Case C

A Dynamic Business Needs Dynamic Solutions; How Field of the Future Turned BP into a Smooth Operator

In 2007, BP's modelling toolkit led to a 2000 B/D production increase in the Schiehallon Field in the North Sea. Initially, flow stability mapping was used to characterise the stable operating envelope for each riser. A dataenabled model was then used to explore different well-to-riser combinations that would improve the level of stability across the field. Once the level of stability had been improved, production was ramped up as the gas flowrate was pushed closer to the compression capacity. Through a data-enabled model, the allocation of gaslift was optimised to further improve production rates.

2000 B/D

128682, Case E

A Dynamic Business Needs Dynamic Solutions; How Field of the Future Turned BP into a Smooth Operator

Well A02, a heavily deviated well on the Clair platform, is prone to slugging. Numerous attempts by the asset to flow the well in an optimum but stable fashion have yielded little success. With flow stability being a major concern for the asset, the well is heavily choked back.

1000 B/D

Use of the data analytics toolset helped to identify a sweet spot that preserved a minimum rate needed to prevent the occurrence of severe slugging, while maintaining a minimum hydrostatic head needed to mitigate the impace of hydrodynamic slugging. Operating A02 at the sweet spot has helped to increase production by 1000 B/D Possible Sources
52177

Production Optimization at the Kuparuk River Field Utilizing Neural Network Genetic algorithms

The objective of this work was to develop an optimization model which would be an improvement over the current model and aslo be superior to commercially available optimization software. This required the development of a field production model which included well performance, surface line, and facility models. In order to successsfully solve for an optimal solution to this large highly nonlinear allocation problem a technique based on genetic natural selection prcess is used. In order to address the roblem of excessive computation time, neural networks were developed to replace the surface line hydraulics simulaion.

7% increase in production

The model was run to generate recommendations for allocation of wells to production and allocation of lift gas. Average forecasted optimized rate for the 27 days was 292,000 B/D, which is a 7% increase in produciton over the current optimization forecast method. Production increases are calculated based on a model. No actual field results are shown.
71556

Production Optimization using Multiphase Well Testing: A Case Study from East Kalimantan, Indonesia Waterflood Recovery Optimization Using Intelligent Wells and Decision Analysis

Good example of new technology that leverages realtime data to reduce well testing effort, improve data accuracy and more proactively manage gas lift and overall production. More in-depth with specific results desired. Developed Multi-phase flow meter.

352 STB/d and 2.76MMSCFD/d

120509

This paper focuses on a model based study vs. actual field example, however there is a logical workflow that could be applied toward intelligent well business case. Applied workflow analysis to support decision analysis related to well number and placement, use of intelligent wells and operating schedules, as well as evaluating surface capacity parameters, such as export pipeline diameter and pump inlet pressure.

130% NPV

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123205

A Workflow-Based Approach to RealTime Production Optimization

A closed-loop optimzation process was implemented for a large offshore oilfield to monitor the gas lift operation in real time. It is based on an Engineering Workflow Platform which integrated multiple source of data associated with analytical applications. This provided user-friendly visualization and desktop for engineers to optimize the production.

Gathering data in real time through DCS system then integrating data with wells and network simulators then periodically optimizing the gas lift gas injection rate and setting remotely the the rate of gas injection through DCS system. The workflow improved the monitoring of the production facilities because of large production fluctuation observed before the implementation.

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