Problem Sets Introduction This chapter deals mostly with problem sets that the author has created for use in industry short courses. ‘They have been used many times, and potential bugs should be resolved. The data sets have been prepared for both Computer Modelling Group and Geoquest software. Originally, there was going to be a copy of all the data sets included in the back of the book. However, the book ‘was getting somewhat long and it would have taken a considerable period of time for readers to reproduce the data sets manually For these reasons, the data sets will, instead, be located on a website at hup//vwwwappliesd: reservoinengingering com. The files can be downloaded from this website free of charge. This will also allow for, future revisions, additional exercises, and perhaps differ ent data set formats, ‘There are also some final thoughts on reservoir simu: Tation at the end of the chapter Grid Problem Set This probiem set is designed to illustrate the effects of grid density on the accuracy of solutions obtained from ‘numerical simulation, This is a simple example that uti- {izes a fivespot waterllood pattern, perhaps one of the most common situations tat one may encounter. Pay particular attention to the water cut performance as the grid becomes progressively finerPractical Reservoir Simulation This is a relatively simple problem set, The second objective is t allow the reader to become familiar with 2 simulation data set, since no simulation experience is assumed Element of symmetry Only a portion of a vomplete fivesput has been od eled. This saves on the amount of computing time and memory required. The basic grid for he frst run is shown in Figure 201 The element of symmetry has alsu been extended to the edge of the model. The sielator assumes that the Wells are located in the center of the grid block. This degree of accuracy allows simulator results to be com pared against analytical solutions, although this is not covered in this chapter.” ‘Two changes are required 10 effect comparison with analytical solutions. First, the permeability of the edge blocks must be cut in half, since the outside portion does not exist. In addition, the porosity of the edge blocks must be halved also, to give the correct total pore vot lume, Note also that, by applying the 50% factor to per se oo wiwsedel $- ayot? " # \ meabilities and porosities on all four edges, the comer blocks will get this treatment twice. Hence, the porosity and permeability in the comer blocks will be 2: ir original values. Changes required Required changes have been highlighted in the fo towing section. Note that only afew qumbers need 10 be changed in the data set Analysis Although this problem set may seem simplified, it contains some important implications. A number of peo- ple use a minimum of two grid blocks between wells as a rule of thumb for grid definition. The author suggests that this is not a good criterion, as explained in chapter 10. The simulator provides comparable results on recov ery factors; however, itis apparent wat very different results are obtained for water breakthrough times. Often, this is an important factor in determining pore volumes during history matching Fig, 20-1 Idealized Blement of SymmeoyConing Problem Set This prubiom set hos a number of interesting twists. ft highlights the differeuces in behavior between gas and water coning, The final solution is semewhat counterine jitive. It is a dramatic example of why datum pressure should be used to analyze flow in the reservoir I is easy to muve abead btindly using straight pressure rather than actual tlow potential (datum pressure). Recall that pote tial includes the appropriate hydrostatic head—ie., the gravity term —with the respective ptiase pressures. Constraints ‘The objective of this problem set is to maximize oil recovery 00 an offshore plat form, There is a water cut restriction due Process The author recommends using a graphical approacl to understanding the probleyn, This meats exaluating the aduetion and then plot both pressure and datuin pressure, What is dominating the reservoir performance? flow in the reservoir Plot j Grid Note that a radial grid has beer used, Most simulators hhave this capability Radial models can be very elficient forsinglewell probleins con PROMEM SET to limitations with the topside facilites. The water cut must be kept below 20%, ' Further, the topside facilities are limited to a GOR of 750 mim’, The only variables that can be changed are the location of the perforations and the bottombole flow: ing pressure. These items have been high lighted in the data set. Description Hid ‘The physical reservoir properties are shown in Figure 20-2. The reservoir has + been divided into layers. Note that the formation permeability and porosity vary vertically with depth. There is also a gas- ve oil and a wateroil contact, which are 5 located at a depth of 1,500 and 1,359 Lt meters, respectively As with the earlier data sets, the fluid 4 properties and rock properties, such as capillary pressure and relative perm: ability remain the same. Note also that depths and pressures are the same, or very similar, throughout all of the problem sets, | Fly, 20-2 Coning Model Grid > 508Practical Reservoir Simulation Results The resutts of your various runs should be tabulated as shown in Table 20-1 In addition, make a description of the reservoir physics. What are the relative coning susceptibilities of gas versus water? Analysis of coning problem A production plot shows that the peak GOR produc tion does nor occur at the end of the run. Therefore, this {raint myst be plotted against time. The reservoir flow developed from raw pressure is very misleading when compared to the potential or pres: sure datum approach. Cleatly, the high-permeability lay ers act a5 a conduit, Gas is also more prone su coning thao water, Despite the larger density difference, the gas has a significantly Jower viscosity: The latter dominates the propensity t0 cone gas ahead of water In fact, in is possible to inctease recovery by com pleting wells in the water leg and aot the vil section (as indicated in chapter 16 in the section dealing with water ancl gas cuning, this is a technique known as “reverse Reservoir simulation is usually associated with study. ing areal movements of fluid and secondary recovery processes—"big picture” issues. This proble strates that it also can be useful for completion design set demon: Table 20-1 Blank Table for Recording Completion Sensitivity Results M3/M3 Base col afor| al e}olre|—Problem Sets Cross-Sectional Study Problem Set This is the most difficult exercise, since pseudo rela- tive permeability is the most dificult concept in the text. Io the authors opinion, pseudos are widely misunder stood. In fact, aithough this text covers relative perme- ity and pseudo relative permeability concepts in chapters 7 and 8, respectively, there's nothing like putting these concepts into practice to really get a good feel for them, The author has found that itis easy to look at the forrmulae and gain a general idea from a textbook: it is another matter entirely to actually implement pseudo ret ative permeability correctly in a model, Aside from the basic experience, it provides another valuable insight. It ispossible to duplicate the results ofa detaited simulation with accuracy using pseudo relative permeability. This exercise will give the reader an instinctive feel for what can be done. Process ‘A detailed sixtayer run is provided to start. This is a reservoir engineering problem. |. Fist, understand the reservoir from 2 qualitative perspective. This means understanding the structure, the layering, and the type of fluids in place. 2. Next,run the program provided. 3. Transfer the production results to graphical for mat. While a graphical postprocessor can be used, readers are advised to plot the results by hand.lt gives one more time to think about What is happening in the reservois Using a postprocessor may see to be more exciting or clever; however it can lead to shortcuts in analysis. 4, Observe how the saturations change in the reservoir What is actually happening? A graphical postprocessor greatly speeds up this process. Note that these sections also can be plotted by hand, and this is appropriate at times, 5. Write a short description of the relevant reservoir mechanisms, 6, Develop wateroil ck pseudo relative permeabil {ies.This is done on a grid column by grid cot tumn basis. specific example of how to do this is outlined in the following section. Inthe author's experience. translating the theory to practice in this area is the most uifficult Simplify the model from a sixlayer model toa single-layer model, Fist, an average permeability and average porosity must be generated. Second, an average capillary pressure curve is developed In this simplified example,each layer has the same S, and P. curve This would rarely be the ccase in actual practice.A set of rock pseudo rela tive permeability curves needs to be developed, ie.k,, and &,.,. Were simplifications required in this process? How certain is the reader of the general applicability? 8. Run the new single-layer model. Plot the results and compare them to the first model run with six layers. How do the results compare? 9. What happens ifthe model is run without the pseudo relative permeability curves? Recall that each of the layers actually utilized only one unique (lab) relative permeability relationship. it this run doesn’t match the sixlayer model, how much is it off” How severe isthe layering? Can a Dykstra Parsons ratio be calculated, and how severe is this compared to most reservoirs? What does this tell us about the relative permeability ‘curves that we actually use or history match in reservoir simulation? 10. Finally, develop pseudo relative permeabilisy curves for the wells. Tis takes into account local wellbore effects. Note that different curves may be required for all three wells. 11. Ifone were completing a study.one more step ‘would be required, which is to transfer al this information into a single-layer reservoir model ‘What other issues would have to be resolved?”Pract I Re rvgir Simutation Cross-sectional analysis In this problem set, an apparently simple problem set actualy requites a great deat of detailed analysis for cor rect interpretation, The author recommends that. (0 truly understand this material, more is required than simply reading or teviewing the solution that follows. Saturations show that the water fingers up the high permeability streak in the middie of the zone, as shown in Figure 20-3 Gas breakout occurs atte top of the structure, This gives a high GOR ia the top well, The production per formance for the wells s shown in Figure 20-4 ‘The wells show increasing water production, which related to flank water influx The pressure distribution in the reservoir is shown ia jure 20-5, The averagé pressure drops in the first five years, After this, the aquifer maintains the pressure at approximately 7400 kPa, The production performance for the field is shown, in Figure 20-6. Oil rates, water cuts, and GOR trends are indicated lk may be concluded from this that a formation or rock relative permeability characterization will not be sufficient. The effects of partial completion must atso be included. Less use of pseudo relative permeability is made today than in the past. However, on large simulations, this may still be a practical necessity The generation of these curves is time intensive. Ulilities are available to generate these curves. Note that shifting the end-points on the pseudo relative permeability is often sufficient to achieve the required result This is by no means the end of the problem. After this, it would be necessary to include these curves in an areal simulation. If there is cross-flow into the cross sec tion, the history match generated may aot be represent tative, This has occurred in practice on studies per. formed by the author. ‘This problem set also demonstrates another benefit that can be derived from using a crosssectional study, ‘The problem has been reduced in complexity, which allows one to concentrate on understanding the basic mechanisms in the reservoir. ig 20-3 Cross-Sectional Model—Viscous FingeringFig. 20-4 Cross Sectional Model—Gas Breakout Fig 20-5 Cross-Sectional Model—Reservoir PressurePractical Reservoir Simulation Fig, 20-6 Original Reservoir Model with Si Layers UE the reader were actually doing this study for an employer ora client, what would be written up regard- ing the risks and assumptions of the results? The pseu- do curves are also rate dependent. How sensitive are the curves to areal variations in rate? One of the major reasons for implementing simulation is waterllooding Government conservation regulations historically allowed one to produce at higher rates when the proj ect was recognized (ie., accredited). Typically, the per- mitted rates were doubled. Do the relative permeability curves used apply to the new rates? This would mean changing the relative permeability curves on the water injection sensitivities, In some cases, the reservoir sim- ulator will not allow one to change the relative perme- ability curves during the run section and is usually set inthe initial conditions. sree In a more modern context, 34D simulations are the norm today However, many people formed their percep- tion of simulation results when the use of these danger ‘ous shortcuts were necessary. Note that upscaling can make use of pseudo relative permeability so these issues are lar from dead. Most upscaling is developed assuming single-phase flow in the authors opinion, many of the ‘current “discoveries” in upscaling were previously found. «with pseudo relative permeabilityAreal Problem Set This problem set isthe author’ favorite, Its not a tite exercise, and is based on some direct experiences in Halésay Comiation name) reservoirs in northwestern Alberta and cortheastert British Columbia, The abjec: tives are outlined in the following 1 Demonstrate the extent to which outside inthy jeces affect the development outcome of the resersvitThis makes the exercise very interesting in that it appeosimates the actual development or exploitation process. 2. Provide input on a crossdiscipline basis Successful simulations are strongly influenced by geological input and impact development decisions The ontcome can have a strong intlue ence on future locations or may provide val able insight into what is fundamentally a geo- logical focus.An example of this is the exter sion of a pool. Simulation input and results ‘often influence production engineering isues. such as well completions 3. Keep a business focus. Historically, many people involved in reservoir simulation have beer the ‘more technically oriented engineers. Very often, management really wants economic iemptica- tions zo be considered at the technical level, This may be as simple as including the eco- ‘nomics in a format that can be used readily in an economics model 4. Get the geological model right.This is the most dificult par ofthe simulation. This example is very stylized in thatthe input was created in an orderly fashion. Having said this, the model has sone efements of actual reservoir complexity. Although this is substantially less than reality the problems of geological description are apparent. To reiterate, this exercise affords an ideal opportunity to make mistakes, The results are not reported to anyone, and there is no real money on the line. Outline The genera idea is this. Assume that you are operat ing a small oil company and that you ane allocated a cer tain amount of money from which to obtain land and drill. A reservoir code! has beet built, ane well results are obtained when money ts spent. fn acklition, you can derive revenue fiom pavduction with which to drill fur ther wells or purchase fad. You will be provided with a generalized play and some seismic data, The final objec live isto devise a geological map aud develop a reservoir simulation model. Financial You company is awarded! 5.000 KS to start. Oil prices are $24.90 per barrel, and the royalty rate is a lat 2 ‘The gas price is $2.50 per scf with a 15% royalty rate Operating costs are $2,500/well/month, regardless of whether isan oll or gas well Geological model ‘The basic geological concept is shown in Figure 20-7 (heavy. grey lines are lag shales). The sands are a combi nation of shoreface and channel sands. In the problem set area, the sea was located towards the bottom of the maps andlor gris when this reservoir was being deposi ed. Geophysics were run with the results shown in Figure 20-8, This isan amplitude variation map and is somewhat representative of porosity and sand thickness develope ment Land sales ‘When this exercise is used as part of a course, land is, sold via auction in the strle adopted by the western provincial governments. This tansforms this problem set into a competitive game. Its therefore possible to have one person assume the role of game master and others can competitively model/develop the reservoir “The land sale is very bureaucratic. Par of this reflects the realities of dealing with government, and part of itis pure administration. Bids must be provided on quarter section by section data using the forms provided and blue ink! The frst time the author attempted to do this exercise, several hours were required to determine the results from the fst lan sale, The form in Table 20-2 wasPractical Reservoir Simulation Beach Swale Wash- inlet ridge Barrier 7 island Shoreline ‘\\ of ocean \ Outer shelf Fig, 20-8 Geophysical Amplitude Survey Results, Areal Problem SetTable 20-2 Official Government Form for Submitting Land Bids (Read instructions carefully and literally) Offer to Purchase Land From Government (use red ink) Section Number LSDs (circle) Nef SE sw nw Amount, g Signed Company adopted so that each parcel of land could be rapidly sort ed during lunch. This greatly facilitated the progress of the game Note that land! is sold by the quarter section. The avail- able leases are shown in Figure 20-9. Pay careful atten tion to the following section on permitted drilling and production spacing locations. Well drilling and completion costs Wells cost an even 1,000 KS and completions 250 KS. Well dling locations must be specified exactly on the grid and shown diagrammatically. It is also possible to obtain core data at the cost of 50 K$ per well. Drilling locations and production requirements Wells must be drilled in the specified target areas shown in Figure 20-10. Although wells may be drilled in any of the target areas, oil wells can only be pro- duced from the oll targets and gas Caveat emptor Bad things happen in wea fife, and this exercise is no exception, Fist, dry holes are quite possible and AEUB regulations are generally in etfect. You may get oil ga, or water You may drill wells with no reservoir development or that have poor permeability Reservoir engineering data All reservoir engineering data is provided ia ehis exer cise, ast was in the other examples, This has been done to concentrate on the geological model, The Core poros- ity versus permeability is shown in Figure 20-11 for both the channel and beach sand facies, A base map is also provided for mapping as shown in Figure 20-12, A num ber of maps will be required and photocopying the vari ‘ous maps is suggested by the author swells can only fe produced from the gas targets. There is an area of overlap between these targets. ‘These four areas within a section are ihe safest place to drill, ‘The government (game- master) may allow you to pro- duce out of target upon special application, provided no other operators have a bona fide objection. The government is conscious of maximizing royal ties. Such applications normally invatve costs. Fig 20-9 Land Parcels sealable for SaiePractical Reservoir Simulation 518 < Fig, 20-10 Allowable Driling Locations PRS Areal Problem Set no ce Fh S| ok tHeeers ia a =| Gas TRREETS —* Bar Sand 3 10+ 3 £ 1 —® Channel | 5 Sand a 0 0.1 0.2 Porosity (fraction) Fig. 20-11 Core Data for Areal Data Set 03 Well results (confidentiality) When a well is drilled, the logs and production results are held confidential from your competitors for a period of one year. During a fivelay course, this equates to one day. Alter that, a copy of your logs will be distributed to your competitors This means that, at any given time, every group in the class will be dealing with a different set of data Analysis This is a nasty problem, To date, the author has not heard of anyone who has solved it and correctly determined the geols- ay. Note in particular that there are three overlapping sands. This problem is discussed in chapter 181i the section dealing with structural style effect, The extent of the channels haz not been completely identified Moreover, this problem set is highly ideatized The contacts are the same across all three sands. They are, in efect, in partial communica- tion by virtue of the intersecting channels; tis is known as juxta- position, The geological model was based on actual experience and is representative of an area in Northern Alberta. tn the authors opinion, itis impossible to solve this problem without a geological model The problem set slike real lte in thata partial set of information is available. Unlike a real reser soir, a correct solution is known. This is an interesting control pos sibility Can we actually deter3 [. | * cf: [EE Fig. 20-12 Base Sap of Areal Problem Set Study Area mine the right answer with simulation? The author doubts that itis possible to arrive at a correct, or more to the point, a unique answer At least one group teking the course went broke drilling in the gas cap. They were shut in by the oil oper ators, which is consistent with Alberta oil and gas con servation laws. One of the participants worked for the AEUB, He was none too pleased! Other groups went broke drilling in the water leg or in low-permeability areas, This is an interesting aspect as well. Winning the game is not just a matter of technical skill. One must assess risk and take appropriate hedging action. The sit uation is competitive, One other issue worth investigation is What is the optinal recovery scheme? Some areas are low perme: ability that do not make for economical wells. The prop: er location in channels would indicate intuitively a bet: ter development plan. Each time the author has observed others attempt to solve this problem, there have been different develop- ments, This is an artifact of history and chance. People interpret the seismic differently and use different profiles for drilling. [t would be interesting to investigate how much variance would occur in recovery oF net present value (NPV) based on different development scenarios. One branch of statistical analysis allows us o evaluate rel ative probabilities by combining a grouping ol experts analysis. This would be an interesting investigation also, During one course offered by the author, there was sufficient time for the groups to prepare a report. The pro- duction forecasts for the three different groups were entirely different! This was used for course evaluation, The scope of the report was to recommend a develop- ment plan based on mapping and reservoir simulation. ‘This course was attended by several complete exploita- tion teams Procedure ‘The author has worked to simplify the procedure so that it is possibfe to enter the geological input more quick- ly without having to resort to a contour package. This, like real life, isa major part of simulation input.Practical Reservair Simulation Beyond This Book In this book, the author hopes to have changed the reader's attitude towards simulation. Getting good results is a matter of putting together many dierent elements and disciplines. Simulation technique is not enough. In the authors opinion, the biggest hang-up usually comes from not having a good visualization or sufficient geolo- gy. Ideally the techniques and details of running the sim ulator are second nature, and the engineer can concen trate on getting the correct input. This is not realistic, ia particular for the first few simulations. Cheat (fairly) by reading geological papers on reservoirs similar to the one being modeled, by reviewing technical papers on offset reservoirs, by reading all government applications, by using a systematic approach, by careful data organiza: tion, and by setting aside time to specifically review glob- al issues. Its not easy. and it takes time to do it correctly, Technique Many techniques have been developed in the field of reservoirengineering. itis not possible to remember all of the information that is available. Even Albert Einstein is said to have looked up his own number in the telephone book. The person who asked for his number was 50 sur prised that they asked him why he had not committed it to memory His reply was to the effect that he had enough important things (theoretical physics) to remember. He ‘was happy simply to know where to find the rest. Develop a set of reference materials. Ata minimum, a practicing reservoir engineer should have one or two of the classic reservoir engineering textbooks and several of the SPE and Petroleum Society of CIM monographs. Continuous development Some areas of reservoir engineering are still progress. ing rapidly, Such areas include pressure transient analysis, compositionat behavior, naturally fractured reservoirs, and reservoir characterization with geostatistics. These ‘areas require that one read some of the professional jour- nals such as the Journal of Canadian Petroleum Technology (JCPT), Journal of Peiroleum Technology UPN), Society of Petroleum Engineering Journal (SPE), and SPE Reservoir Evaluation & Engineering (SPEREE), At ‘one time, operating companies supported membership in a reasonable number of professional societies. This is 1no longer the case. The author recommends that at least an engineer belong to APEGGA, the Petroleum Society of CIM, and the Society of Petroleum Engineers, Contacts Finally, friends may be able to help. This will not always be possible since they may be working for com petitors. The company may have a few gurus in some areas of technical reservoir engineering, geology, or sim ulation. These people are amazing Very often, they remember details of wells drilled more than 20 years ear- lier and will recall why certain decisions were made ‘There are not as many of them as there used to be, but few are known to the author. An engineer can hire a consultant to critique the approach. Some consultants are reluctant to do this ince they want to do the work. On the other hand, one very good log analyst prefers to advise consultants. A Canadian heavy oil expert often comes on site for a day and reviews projects or data. Apparently. his suggestions. can keep a number of people busy for a considerable period, even when the project is at a mature stage, Many consultants, including the author, do not abject to pro- viding advice as long as they are paid for the time expended, Conclusion Itis hoped the reader found the material in this book to be useful. Please contact the author if you find any errors (there are some undoubtedly). Good luck with simulation studies that you do, have to review, or that you commission others to do.