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Shell Casing and Tubing Design Guide

Chapter 2
Shell Levels of Casing and Tubing Design Practice

2. SHELL LEVELS OF CASING AND TUBING DESIGN PRACTICE ...............................2

2.1 Specifics of the Design Levels.......................................................................................2
2.1.1 Level One ................................................................................................................2
2.1.2 Level Two................................................................................................................3
2.1.3 Level Three..............................................................................................................4
2.2 How to Change Design Practice from Level One to Level Two or Level
Three ........................................................................................................................5
2.3 Limitations on Export of Level Two and Level Three Design Practices ......................5
2.4 Examples of Level Two and Level Three Designs........................................................6

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2. SHELL LEVELS OF CASING AND TUBING DESIGN PRACTICE

This design guide makes the distinction of three different levels of casing and tubing design
practice within the Shell operating companies. Each Shell operating company has its own
governance over which level or combination of levels of design practice it chooses to use. The
load paradigms and design factors of Level One design practice are the same for all the operating
companies, but the specific details of the Level Two and Level Three design practices can be
different for the different operating companies. The three levels come about because of
differences in

The amount of conservatism in the design

The functional specifications for the design
The level of staff experience and competency needed to carry out the design
The sophistication of rig kick-detection equipment used to drill the well
The amount of experience applying the design to a particular type of reservoir
The speed of innovation and amount of step change from traditional design practice

2.1

Specifics of the Design Levels

2.1.1

Level One

The first, most basic, and most conservative design practice is called Level One.
characteristics of this design practice are:

The

It is the default design practice described in Chapter 3.

It is based on the most conservative design premises about kick burst pressures and collapse
evacuation depths.

It assumes that the engineering staff have basic competency with design principles,
knowledge of the Level One Shell load cases, and understanding of the use of the Shell design
software.

It does not assume that the engineering staff have extensive understanding of the historical
well design practices and well control experiences characteristic of the local operating
company.

It makes no assumptions about the competency of the operating staff to respond with best
practices during well control events.

It makes no prerequisite for the sophistication of the geological data used to design the well.
It is broadly applicable to any geological well conditions including unknown conditions.

It is well suited to new ventures and wildcat exploratory wells.

It seeks to avoid risk wherever possible.

Level One requires two production barriers: a tubing and a production casing.

It requires the use of quality pipe and connections.

It uses a conservative triaxial burst design factor.

It makes no assumption about the quality of rig kick-detection systems (KDS).

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All non-production casing strings are designed for kicks taking full evacuation to gas.
Long-term pressures inside and outside the casing for burst and collapse design are based on
the most conservative possible combinations of fluid pressure gradients. In burst design, the
pressure gradient from mud and cement outside the casing is assumed to revert to the base
density of the mud and the mixwater density of the cement. In collapse design, the pressure
gradient from mud and cement is assumed to be the initial mud and cement gradients.

2.1.2

Level Two

Level Two design practice has the following characteristics:

Level Two is experience based. It represents the operating companys specialization of casing
and tubing design practices based on its own local experiences in particular types of reservoir
formations.
It requires the operating companys formal documentation of the basis for its own design
practices.
It requires more extensive geological data, indicating that the planned well will have reservoir,
mud, and drilling characteristics sufficiently similar to historical wells.
Because it is formalized at the level of the local operating company, it does not represent the
design variances executed from time to time by different engineers on different wells.
Instead, it represents the trend by the operating company to put in place a consistent design
practice tailored to local operating conditions.

It assumes the presence of state-of-the-art kick-detection equipment at the rig.

It assumes that the rig operating staff have the experience and competency required to handle
consistently the well control events that are part of the design premise. Furthermore, this
competency is based on demonstrated experience in conservatively handling previous well
control events within the staff and facility infrastructure of the operating company. For
example, if design is based on controlling kicks to have limited volume or on bullheading
kicks into the formation, then the operating company should have documentation of
successful experiences using this practice.

The design paradigms are intended to manage risk rather than to avoid risk.
It does not require two production barriers (tubing and production casing), based on
experience, although the choice may be to keep two production barriers.
The design is not locked into the most conservative set of loads and design factors. Instead, it
makes use of the option to adjust the loads and design factors based on experience. However,
the design factors tend to have one single, common set of values across the OpCo based on
the experience of the OpCo.
The engineer capable of executing Level Two design practice has all of the competencies
required for Level One design practice. In addition, the engineer has thorough understanding
of the historical design and operating experiences which form the basis of the operating
companys Level Two design practice. The engineer knows the premises and limitations (if
any) of the operating companys Level Two design practice and why and where these are
historically justified.

The Level Two design uses burst design factors based on the historical experience of the
operating company. These may be smaller (usually) or larger than the design factors used in
Level One practice.

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Burst design of surface and intermediate casing can be based on limited kick volume and
limited kick intensity set by the experience of the local operating company. The basis for the
limited kick design is experience data, including successful management of past kicks. The
basis for the design practice is not the competency of a particular engineer, but instead the
demonstrated competency across the operating company.

For collapse design of surface and intermediate casing, the evacuation depth of the fluid
column can be based on experience and can be less than the depth used in Level One design
practice.

Fluid gradients for design pressures inside and outside the casing and tubing can be the same
as in Level One, or they can be based on operating experience.

There is a historical ability to predict pore pressures and fracture pressures with good accuracy
in the region of interest. This historical experience reduces the uncertainty in pore and
fracture pressures.

2.1.3

Level Three

Level Three design practice has the following characteristics:

The third level is the least prescriptive and most sophisticated. It encourages the operating
company to adopt a new technology, design, or operating policy based on a detailed examination
of the potential gains and losses as measured through risk assessment.

It is the method of rapidly innovating and evolving well casing and tubing design through a
large step change rather than through many smaller, incremental changes over time.

Level Three design relies heavily on risk assessment as a tool for making the step change from
Level One or Level Two design practices.

Introduction of a new Level Three design requires an external review of both the proposed
design practice and the risk assessment conducted to support it, prior to implementation of the
Level Three design. The external review or peer assist should be provided by Shell engineers
from SEPTAR or from other Shell operating companies. Ultimately, the operating company
proposing to implement the new Level Three design has governance over the decision
whether or not to accept the finding of the external review, and whether or not to implement
the Level Three design.

Level Three design practice requires the operating companys formal documentation of the
basis for its own design practice.

Level Three does not require two production barriers (tubing and production casing), based
on risk assessment, although the choice may be to keep two production barriers.

Level Three design requires the same competencies from the engineering and operations staff
as required by Level Two design practice.

In addition, the engineer who can do Level Three design practice is capable of leading the
step change and development to Level Three design from Level One or Level Two design
practices. The engineer is capable of understanding and leading the use of risk assessment to
guide the step changes in design.

Level Three design requires staff with the highest judgement, expertise, and experience.

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It encourages use of a design factor calibrated to the assessment of risk and smaller than the
design factor required in Level One design. Level Three design essentially customizes the
design factor to the specific type of reservoir and geology. The design factor is adjusted
through use of the risk assessment. Instead of having one, experience-based design factor,
there can be an unlimited number of design factors where each is based on the risk assessment
of a particular type of well and reservoir.

Burst design of surface and intermediate casing can be based on limited kick volume and
limited kick intensity calibrated by risk assessment.

Fluid gradients for design pressures inside and outside the casing and tubing can be the same
as in Level One design, or they can be based on a combination of experience (Level Two) plus
risk assessment.

A design based on variance and executed by an engineer is not necessarily a Level Two or
Level Three design. Instead, it becomes a Level Two or Level Three design when the operating
company standardizes on the design practice and documents the basis for the design.

The uncertainty in pore pressures and fracture pressures can be estimated and effectively
managed.

2.2

How to Change Design Practice from Level One to Level Two or Level Three

Change from Level One to Level Two is based on experience data. It requires small and
manageable changes in well designs while data are accumulated and analyzed over time
sufficiently for the operating company to standardize on the evolving design practices.
Initially, the designs are variances requiring the highest care and expertise. As the operating
company gains experience and matures the design, the operating company evolves the design
into its own, Level Two practice, and the design practice becomes more commonly used
across the operating company.

Change can be made directly from Level One to Level Three; it is not necessary to stop at
Level Two while evolving to Level Three.

Change from Level Two to Level Three or from Level One to Level Three is based on risk
assessment and can be made very quickly.

Over time and at the option of the operating company, a design practice can change from
Level Three to Level Two as it becomes based more on experience and less on the risk
assessment originally done to implement the change.

2.3

Limitations on Export of Level Two and Level Three Design Practices

In general, Level Two and Level Three design practices should not be exported from one
operating company to another operating company. Indeed, sometimes the design levels should
not be exported to different types of reservoir assets within the same OpCo if the geological
conditions, rig equipment, or staff skills are substantially different between these assets. This is
because the Level Two design is customized based on the specific experiences of the local OpCo.
Likewise, the Level Three design is customized based on a risk assessment which accounts for
well conditions, rig conditions, and staff competency characteristic of the local OpCo. These
conditions do not apply when the location of the well is moved to a different OpCo. In general,
the approach taken toward developing a particular Level Two or Three design practice can be
exported and copied, but the actual results and specifics of the practice cannot be copied.

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Examples of Level Two and Level Three Designs

Some examples of Level Two and Level Three design practices are the following:

Level Two SEPCOs kick-burst design of intermediate casing in the Gulf of Mexico based
on historical experience with limited kick volumes.

Level Two SEPCOs experienced-based burst and collapse design of cemented-tubing, gas
wells in South Texas.

Level Three SEPCO single-barrier (Brutus) riser based on risk assessment.

Level Three PDO Ara salt deep gas exploratory wells, with casing, BOP, and rig based on
risk assessment (SPE 63130).

Level Three PDO cemented-tubing, gas wells eliminating SCSSVs based on risk assessment.

Level Three WOODSIDE well designs, Perseus field.