Schneider Electric Case Study

Heavy Oil Producer

California

Oil producer increases production and decreases costs by

using rod pump control to align pump operation with changing
well conditions in real time.
10 percent increase in average net oil production
11 percent decrease in power consumption
6-month payback

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Schneider Electric Case Study > Heavy Oil Producer
The oil producer chose to install
Schneider Electric Realift Rod
Pump Controllers (RPCs) that
monitor and control equipment
operation based on downhole
conditions.
2 | Heavy Oil Producer
Background
Crude oil continues to be one of the worlds most commonly used energy
resources, with more than 9 million barrels of oil produced daily in the United
States in 2014. Due to price volatility in this industry, companies with the lowest
operating costs and highest production will have the best chance at long-term
success in weathering the continued fluctuations in oil prices.
One California-based heavy oil producer has been successful in finding ways to
reduce costs and increase production without drilling new wells. The company
has hundreds of wells across dozens of locations worldwide, including several
U.S. states. In many of its vertical and horizontal well operations located in
California, the company uses a rod pump system that employs steam injection
to heat up the formation and decrease the oils viscosity so it flows into the wells.
The companys wells average 1,000 feet deep and produce an average of
20 barrels of oil per day.
The Challenge
Downhole conditions can change constantly, with volumes varying over a day,
week, or month. Monitoring downhole conditions and keeping surface equipment
operating efficiently is always a challenge. Theres a subtle balance in maximizing
production without causing unnecessary wear or damage to the equipment.
We could be pounding the downhole equipment by pumping fluids in the
wellbore to very low levels, but over time theres an expectation that oil production
will increase as we steam the surrounding wells, said the companys production
superintendent. It becomes a trade-off between prolonging the life of the
equipment and producing the maximum fluid from the well.
To get the most oil from every well, the company was previously running pumps
full time at a constant speed, regardless of the fluid level. Since the companys
wells are in sandstone formations, there were concerns that the pumps needed
to run constantly to prevent sand from settling and causing premature pump wear
and reduced pump efficiency.
To increase profit, the company considered a way to maximize the productivity of
existing wells. In 2013, the oil producer began a pilot project to invest in real-time
pump control by monitoring downhole conditions on 12 wells in three oil fields. As
a result, the company has increased average net oil production, decreased power
consumption, and extended the life of its equipment.
The Solution
The oil producer chose to install Schneider Electric Realift Rod Pump
Controllers (RPCs) that monitor and control equipment operation based on
downhole conditions. The controller is embedded into an Altivar 71 variable
frequency drive with integrated machine controller card, utilizing a load sensor
mounted on the polished rod, and a proximity sensor mounted on the rod
pump frame.
The Realift RPC is an off-the-shelf solution that is ready to install into a NEMA
3R cabinet. The controller is integrated into the Altivar 71 drive, thus eliminating
the need for an external PLC enclosure. The RPC features a point-and-click
configuration interface that runs on a laptop connected to the drive via Ethernet
modbus communications. The configuration tool allows technicians to monitor
and configure the drive and RPC parameters locally or remotely.
To check downhole conditions previously, technicians visited each well using a
portable dynamometer every couple months. While this helped the oil producer
track longer-term trends, it could not effectively see daily changes that would
impact the best use of pumping and steam injection. Now with the RPC system,
Schneider Electric Case Study > Heavy Oil Producer
We were previously running
somewhat blind, working in
the Stone Age with our well
surveillance. The Schneider
Electric RPC has allowed us to
step up to the 21st century.
- The companys production superintendent
the downhole dynamometer card is generated in real time and the system tracks
temperature, pressures, and other data points.
Our old data was spotty and inaccurate. With the Schneider Electric controller
and the variable frequency drives, we get real-time measurements on the downhole
conditions, the production superintendent said. By capturing the data daily in
real time, we manage the total field operations more efficiently and know the best
times and locations to place steam injection for the best production results.
Previously the pumps were running continuously but at a slower rate than the oil
flow into the wellbores, so there were some missed opportunities for oil production.
At times, the fluid level built up over the pumps because they werent operating
fast enough for the influx of fluid. With the variable frequency drives, the pumps
can speed up and pump the oil down during higher flow periods. As a result, the
company has seen a 10 percent increase in net oil production.
By reducing overpumping, there is no wasted power. The drives manage the
pump speeds instead of holding constant speed. Therefore, the company has
seen immediate decrease in power consumption by 11 percent. Plus, rebates
from Pacific Gas and Electric Company provided further financial incentive to
install the RPC systems.
In addition, the company has reduced fluid pound at the pumps because they
dont run when fluid levels get low. This reduces harsh conditions that lead to
premature pump failure. Intervals between scheduled maintenance are extended
and pump failures are significantly reduced, improving the uptime so wells keep
running without interruptions.
We were previously running somewhat blind, working in the Stone Age with our
well surveillance. The Schneider Electric RPC has allowed us to step up to the
21st century, the production superintendent said.
Data creates confidence
To get approval and funding for the RPC pilot project, the production supervisor
found it easy to show management an immediate payback. Due to energy savings
and an increase of 50 BOPD total from these wells, the company is estimating a
six-month return on investment. In comparison, drilling another well would have
required three times the investment of installing the RPCs. Also, the production
increase would have been unlikely without these RPCs.
The power savings we realize immediately, so it was an easy sell to management
that they readily recognized. the production superintendent said. It sounded a
little too good to be true, so they were somewhat skeptical at first. When they saw
the data, it gave them the confidence that we made the right choice to improve
our operations.
Seamless tie-in to SCADA
Schneider Electric worked with the oil companys engineers to set up the RPCs
ahead of time for simple, plug-in installation. The extra planning allowed the
company to get wells back online very quickly to minimize downtime.
Furthermore, the RPC was adapted to interface into the oil companys existing
data collection software, Wonderware. This prevented the need for additional
time and cost to implement and learn new software.
The RPC ties in the data gathering and communicates directly to our SCADA, so
it was a simple installation. We didnt want to recreate our system unnecessarily,
said the production superintendent. Other providers wanted us to switch to their
proprietary software systems, which would have added cost and inconvenience.
Schneider Electric adapted to our needs instead of selling us more equipment
than we needed.
Heavy Oil Producer | 3
Schneider Electric Case Study > Heavy Oil Producer

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2015 Schneider Electric. All Rights Reserved. Schneider Electric, Realift, Altivar, Wonderware, and Make the most of your energy are trademarks and the property of Schneider Electric SE,
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April 2015