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SEG @75

The rapid rise of reservoir geophysics


WAYNE D. PENNINGTON, Michigan Technological University, Houghton, USA

I
n 1980 and again in 1985, on the occasions of the 50th
anniversary of the Society of Exploration Geophysicists
and the 50th anniversary of publication of GEOPHYSICS, spe-
cial issues of that journal were published. In both those times,
as now, the science was flourishing. The science described in
those issues was directed toward exploration, but many of the
methods were to form the basis for a new application, here
called reservoir geophysics. In 1980, oil prices were at record
highs, and in 1985 they were about to plummet; at the time of
this writing, prices are again at local highs, accompanied by
a renewed enthusiasm for the sound application of the sci-
ence.
The acceptance of 3D seismology as a cost-effective tool
for reservoir management was the single most important
aspect in the growth of reservoir geophysics. As such, most
of the history of reservoir geophysics parallels the history of Figure 1. Schematic workflow for the development of a petroleum reservoir,
3D seismology. On the other hand, a wide variety of different circa 1980.
techniques within specialty areas of geophysics was developed
simultaneously; although these are not as widespread or well- of Petroleum Engineers, will include a chapter on reservoir
known as 3D seismic, they are extremely valuable tools in the geophysics, specifically to inform engineers of the assistance
arsenal of reservoir management. that geophysicists can provide. While the transition from exclu-
This brief history first describes the evolution of the accep- sively exploration-oriented geophysics to reservoir geophysics
tance of 3D seismic techniques for reservoir management, and may seem fast and furious, concentrated in the 1990s, a more-
then summarizes a number of other geophysical techniques detailed reflection indicates that the movement had already
used for reservoir engineering purposes. Of course, any ret- begun by the early 1980s, when several developments took
rospective is strongly colored by the personal experiences and place in academia, industry, and the economy.
biases (whether or not they are recognized as such) of the
author, who assumes full responsibility for any errors, par- The academic role in developing reservoir geophysics. Three
ticularly errors of omission. key participants were:

Defining reservoir geophysics. Reservoir geophysics can be 1) By 1977, Amos Nur had founded the Rock Physics group
defined as the application of geophysical techniques within a known at Stanford, and was later rejoined by his former student,
hydrocarbon reservoir. This implies that at least one well has been Gary Mavko. An expansion into borehole geophysics in
drilled into that reservoir, and may (or may not) be available 1986 created SRB, the Stanford Rock Physics and Borehole
for geophysical applications. It is this access to wells and/or Geophysics Project. This group has done (and continues
to internal information about the reservoir that distinguishes to do) much to allow the interpretation of geophysical
reservoir geophysics from exploration geophysics, as well as data in terms of rock and fluid properties, and of stresses
the overall scale of the surveys. We can further subdivide around boreholes, both key applications of reservoir geo-
“reservoir geophysics” into “development” and “production” physics.
geophysics, depending on the immediate application: 2) In 1982, M. Nafi Toksöz at the Massachusetts Institute of
Development geophysics is applied to the initial efficient Technology founded the Earth Resources Laboratory,
development of a field, whereas production geophysics is which by 1984 included the Full-Waveform Acoustic
applied to the understanding of the field as it evolves during Logging Consortium under Arthur Cheng, and by 1985
production. (In some instances, authors may use the term the Reservoir Delineation Consortium under Roger
reservoir geophysics as a synonym for “time-lapse seismic.” Turpening. Both these consortia actively developed and
This usage should be discouraged; time-lapse seismic is sim- tested new geophysical methods for the evaluation of
ply one aspect of production geophysics.) reservoir and nonreservoir rocks through borehole geo-
In 1980, the typical sequence of reservoir development fol- physical techniques.
lowed a “classical” flow of information from one specialty to 3) In 1985, Tom Davis formed the Reservoir Characterization
another, as shown in Figure 1. Project at the Colorado School of Mines using multicom-
In 1980, the flow of information was linear, from one per- ponent (and, later, time-lapse) seismic studies in reser-
son (and specialty) to another. There was very little feedback voirs to define internal attributes such as fracture density
between, say, the engineers involved in development and the and fluid content. This group is now on its tenth “phase,”
geophysicists who may have been able to assist them. having studied at least seven different fields.
This has changed, of course. In fact, the new edition of the
Petroleum Engineering Handbook, to be published by the Society These and other groups in many different countries laid

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the foundation for much of the seismic work now included in proved to be extremely useful in the next stage—the acceptance
reservoir geophysics. Their timing was good for the science, of 3D seismic studies by the engineering community. (While 3D
although funding was always (and presumably continues to be) seismic methods were gaining the most popularity and atten-
a challenge. But the combination of new methods of seismic tion, there were significant advances in several other aspects of
acquisition and processing with new and evolving interpreta- reservoir geophysics, including borehole-based seismic, micro-
tional aspects of rock physics was key to the ease of industry gravity, electrical, electromagnetic, and passive seismic; these will
acceptance of the seismic aspects of reser- be discussed in a later section of this
voir geophysics. It was fortunate for the paper.)
industry at large that a few far-sighted The first 3D seismic surveys were per-
professionals within various companies formed as subjects of research and have
championed these and other consortia at been discussed in various reminiscences
a time when funding was scarce and the published in TLE’s “From the Other Side”
applications of the science were not column. Most geophysicists knew by the
always entirely apparent. late 1970s or early 1980s that 3D seismic
The education of geophysicists in uni- was technically feasible, and some dra-
versities continued during the low-hiring matic examples were shown at various
period of the mid-to-late 1980s, providing meetings, mostly directed toward enhanc-
a workforce for those companies that did ing exploration, rather than production
hire them. In part due to the poor job mar- (see, for example, the abstract describing
ket, most schools were training their stu- 3D seismic exploration in the Austin Chalk
dents broadly, without early specialization by Calcote and others in SEG’s 1982
into certain niches, allowing them breadth Expanded Abstracts). By 1983, the SEG
of choice in employment upon gradua- Annual Meeting and Expanded Abstracts
tion. This ran counter to the demands of included a session “Seismic 16” (available
some recruiters, who tended (and still for online browsing through the SEG
tend) to request students who were Digital Library) with seven papers pre-
trained in one specific software package sented on 3D seismic methods and case
or one highly specialized niche area, in histories. Of these, about half could be
order to fill a certain immediate need. The considered applicable to reservoir geo-
generalized backgrounds of many of these physics, and about half to exploration.
students served them and their companies One of the papers described the first time-
well when the discipline rapidly evolved, lapse seismic study reported in the liter-
and these new employees migrated into Figure 2. The growth of 3D seismic surveys in ature: “A study of fireflood efficiency”
interdisciplinary positions bridging geol- Shell (outside of North America), from the (Greaves and others, paper S16.1; also later
ogy, geophysics, and engineering. expanded SEG abstract published by Nestvold in published in GEOPHYSICS). A number of
1991.
presentations at the 1983 Annual Meeting
The oil and gas industry. In the 1980s, the big money was being (sessions Seismic 20 and Seismic 21) also described computer
put into exploration, not reservoir, geophysics. There was a techniques that allowed interpreters to manage and view 3D seis-
widespread conviction that the price of oil would never drop, mic data, a necessary feature for wide application, of course.
and that finding new oil was the best way to make money. But Although the value of 3D seismic for field development was
then, suddenly, the Ekofisk platform in the North Sea was recognized publicly as early as 1984 (“The value of 3D seismic
observed to be “sinking” due to subsidence associated with in field development” by Gaarentstroom, SPE 13049), an impor-
reservoir compaction. Understanding the interior of the reser- tant milestone occurred with the publication of “Modern tech-
voir was suddenly a multibillion dollar question, at least for one nology in an old area: Bay Marchand revisited” by Abriel and
company, and all large oil companies became aware of their lim- others (first, as an abstract, RES 2.7 in 1990, then as a paper in
ited knowledge of reservoir-rock dynamics. Many geophysi- TLE in 1991). In this study, the Chevron team demonstrated that
cists had been schooled in earthquake seismology, and the 3D seismic studies and interpretation applied to a field—one that
transition to reservoir mechanics was natural. As it turned out, had been under production since 1949 and in decline since the
petroleum engineers also needed input for well-completion early 1970s—resulted in nearly doubling the daily production
designs, and this was becoming available through full-waveform and clearly demonstrating that reservoir geophysics was a cost-
acoustic logging. Once again, the classical earthquake training effective tool for the management of producing assets.
of many industry geophysicists made them well-suited for But the real confirmation that the industry was going to
understanding the normal-mode propagation of waves in the adopt the new technology and apply it to reservoir develop-
borehole (compared with the ray-theoretical approximations ment and production arrived in 1991 when Shell described its
suitable for most surface reflection studies) and the strength of experiences with 3D seismic. Figure 2 is from Nestvold’s “3D
rock and stresses in the formations—these values were needed Seismic: is the promise fulfilled?” SEG Expanded Abstract which
by engineers working on hydraulic-fracture design, predictions stated that “... it is recognized that 3D is a powerful tool for
of wellbore stability, and simulation studies incorporating the appraising a field and for providing valuable input into the
compressibility of the reservoir rock. development plan itself.” It was inferred that Shell would
Many engineers and geophysicists developed good work- conduct 3D seismic surveys over every major asset, as well as
ing relationships within their companies as a result of these being used earlier in the exploration process. This caught the
mutual interests and capabilities, and each learned the advan- attention of the managements of most oil companies, and geo-
tages the other could bring to their work. These relationships physicists were finally brought into the discussion of reser-

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Figure 3. Comparison of the growth in 3D seismic surveys (approximated


from Figure 2) and the price of oil (first-purchaser's cost, in constant year- Figure 4: Price of oil (first-purchaser's cost, in constant year-2000 dollars;
2000 dollars; from the Energy Information Agency, U.S. Department of from the Energy Information Agency), showing short-term volatility and
Energy). long-term stability from 1986 through 2003.

voir engineering and production on a larger scale. tion, rather than the rule. Strong economic pressures helped
Most producing companies had, by this time (1991), devel- drive geophysicists into making use of their talents in ways
oped some experience with 3D seismic methods, and con- which they had not previously envisioned, in areas such as
tractors were able to deliver the service worldwide. The full-waveform acoustic logging, borehole stability, reservoir
additional pieces required to make reservoir geophysics a geomechanics, and rock-physics integration with reservoir
mainstream aspect of reservoir management were (1) confi- simulation. These applications all became directly engaged in
dence of management in the geophysicists’ capability to under- what we now call reservoir geophysics.
stand and appreciate reservoir engineering needs, and (2) As companies began to depend more on increasing pro-
direct lines of communication between the geophysicists and ductivity from their existing assets and less from finding new
engineers. Fortunately, in many companies, these were already fields, the pressure also increased on reservoir engineers to
in place as a result of their earlier experiences in geomechan- ensure that they made use of all the relevant data that could
ical and well-completion studies. Most companies were be obtained. Their relationships with some geophysicists
already familiar with the appropriate technologies through allowed them to have confidence (although perhaps limited)
participation in academic consortia, if not through their own in the field in general, and most were open to considering the
efforts. The rest, as they say, is all in the details. Of course, the use of geophysics in their reservoir evaluations.
details varied among companies and even among different Following the oil-price collapse of the 1980s, oil prices
management groups. Some companies and managers made remained more-or-less steady through 2003 (Figure 4),
opening of the lines of communication easy; others, no doubt, although volatile in the short term. The groundwork for reser-
made it difficult. voir geophysics was laid during the price collapse of the 1980s.
The science matured during the postcollapse period of the
The gorilla in the room—economic issues. The development 1990s, and this continues today. (Speculation about the rela-
of many of the techniques that ultimately found applications tionship of reservoir geophysics with the oil-price run-up
in reservoir geophysics had begun when the price of oil was under way in 2004-2005 is premature at this time, and will not
very high, in the late 1970s and early 1980s. But then the price be attempted by this author!)
of oil collapsed in 1986, and the attention of most oil compa- As reservoir geophysics matured, it became increasingly
nies and oil-service companies was directed to cutting costs “standard operating procedure” at most companies. With
... to the bone. Exploration was a primary target of cost-cut- increased scrutiny of asset statements, it is likely to become
ting, because of its long payback time. Reservoir geophysics more integrated with traditional reservoir management
was seen by those geophysicists remaining in the business as schemes over time. Although hard figures are impossible to
a possible avenue to continued relevance and employment. come by, it may be that more financial and human resources
Companies had to be convinced that there was actually an eco- are being invested in reservoir geophysics than in exploration
nomic benefit to be realized in applying reservoir geophysics. geophysics at this time ... less than 20 years after the phrase
The correlation between the drop in oil prices and the rise in came to popular attention.
use of 3D seismic surveys (Figure 3) is only partially spuri-
ous, but the dramatic rise in seismic surveys applied for reser- Specific aspects of reservoir geophysics. Reservoir geophysics
voir studies was no doubt accelerated by the need to develop differs from exploration geophysics in three main areas: well
existing assets as budgets tightened. control, rock-physics control, and survey scope and design.
How did this affect the geophysicists who were needed to The targets of reservoir geophysical surveys are more clearly
apply their science to the improved development of reservoirs? identified, and the existence of at least one well means that
A few scientists actually found positions as geophysicists the surveys can be focused, calibrated to depth, and calibrated
attached to engineering departments, but this was the excep- for rock physics correlations. The availability of one or more

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wells also opens up new geometrical options for the surveys. Development of extremely high-quality multichannel
As a result of these factors, reservoir geophysics has expanded receiver strings has made the service affordable by mini-
the application of 3D seismic and opened new opportunities mizing acquisition time, which often requires loss of pro-
for borehole seismic and nonseismic techniques. duction.
Many of these techniques are due largely to the tenacity • Crosswell seismic imaging: The deployment of a string of
of a few dedicated visionaries of geophysics. Each specialty receivers in one well, and a source in another well, allows
has repeatedly been declared “dead” by practitioners and the imaging of the plane between the two wells. The tim-
management, only to resurface again with improved tech- ing of the first arrivals allows a 2D image of interval veloc-
nology and resolution. The dedication of these people cannot ities to be obtained as a velocity tomogram, and the
be overstated, and the field of reservoir geophysics owes them reflected events can then be migrated into proper positions
their appreciation. Their funding sources varied, but included for a crosswell reflection image. The primary advantage
their own personal credit, corporate support, venture capital, comes from a tremendous increase in resolution, often
and government funding. Government funding for the devel- exceeding a full order of magnitude improvement over the
opment or improvement of many of these techniques was surface data in the same area.
often through the U.S. Department of Energy and its national • Passive seismic monitoring: Some reservoir management
laboratories, in an effort to decrease the decline of US-based activities result in microseismic (and occasionally macro-
petroleum resources (for author’s disclaimer, see acknowl- seismic) activity—small earthquakes—usually not
edgments). Currently, research support in reservoir geophysics detectable at the surface of the earth. Deployment of sen-
is also provided through the European Union, reflecting the sors in boreholes has allowed detection of these events.
importance of North Sea assets. When the seismic events that accompany stimulation for
3D surface seismic has five main benefits: hydraulic fracturing are located, the result is a temporally
changing map of the fracture during its creation. The map-
• Attributes: While seismic attributes have become increas- ping of events from other reservoir practices (usually,
ingly important for exploration geophysics, they are de although not always, injection) can also be accomplished,
rigueur for reservoir geophysics. Spatial variations in lithol- although the relationship of these events to information that
ogy and fluid content are among the primary goals of reser- is deemed useful to the improvement of reservoir perfor-
voir geophysics, and these are typically established through mance is not always apparent. While hydraulic-fracture
calibrated seismic attributes, including inversion results. monitoring services can be considered “routine” by reser-
• Geostatistics: With well calibration comes the opportunity voir-geophysics standards, the application of other micro-
to provide estimates of confidence in the results of corre- seismic services is still developing.
lation of rock properties through (calibrated) rock-physics
relationships. Electrical and electromagnetic surveys. The single most sig-
• Time-lapse seismic: The repeated surveying of a reservoir has nificant physical property that distinguishes hydrocarbons
allowed changes in attributes to be related to changes in from brine is resistivity—hydrocarbons are virtually insula-
reservoir properties due to production. Some changes are tors while brine is an excellent conductor. The differences can
the result of fluid substitutions, while others are due to pres- be orders of magnitude (compare this with the fractional dif-
sure changes, and still others may, in some unusual cir- ferences of seismic properties), and mapping of reservoir flu-
cumstances, be due to chemical and physical changes in ids from electrical and electromagnetic should be easy, it seems.
the reservoir matrix material. The problems with using these techniques are associated with
• Ultrathin beds: As the targets become more focused, the abil- their inherent poor resolution (they should be considered dis-
ity to use the natural bandwidth within the seismic wavelet persive, with essentially very large wavelengths) and the
increases. Commonly grouped under the label of “spectral prevalence of steel-cased wells in oil fields. Still, amazing
decomposition,” these methods exploit the highest-fre- progress has been made, and, while not quite routine, time-
quency components of the wavelet and their tuning effects lapse electromagnetic surveys of reservoirs are now possible,
in thin beds, rather than just the dominant frequency com- and case histories have been published. This area can be
ponent. expected to continue to improve in capability and availabil-
• Multicomponent seismology: The use of three-component ity in the future, as improvements continue to be made and
receivers, whether to record shear waves generated by a case studies conducted.
specialized source or shear waves generated by conversion
upon reflection, has been demonstrated to enable imaging The role of SEG. SEG promotes the advancement of the science
beneath gas clouds that overlie some reservoirs and to of geophysics and the ethical practice of applied geophysics. It
map fracture patterns and densities. is strongly driven by the desires and needs of its membership.
But the word “exploration” is in its name. In the 1980s, a small
Borehole seismic has three primary functions: group of geophysicists decided that the overwhelming atten-
tion paid to exploration geophysics was resulting in the neglect
• 3D VSPs: Getting either the receiver or the source closer to of geophysics applied to reservoir development and production,
the imaging target (and below the weathered layer) results and they formed a new committee, called the Development and
in a much higher-resolution image. Placement of a string Production Committee, to address their needs. (This is how
of seismic receivers in the borehole (vertical seismic pro- things work in SEG. If there is a need for something, a group
filing or VSP) or a source in the borehole (reverse VSP) can be formed to address it. It is a highly democratic institu-
accomplishes this, and allows for 3D imaging if the sur- tion.) This committee rapidly grew in size to more than 200 mem-
face components (sources for VSP and receivers for reverse bers, almost all of whom were active in one form or another. It
VSP) occupy appropriate large swaths of the surface. initiated the “Development and Production Forum” (D&P

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Forum) in 1991, where attendees were united by common goals,


rather than common technologies. In this sense it was remark-
ably unique and beneficial—the participants in these week-long
meetings (held at resort locations) included geophysicists, geol-
ogists, engineers, and occasionally management. They were vir-
tually forced to sit through presentations and discussions
involving technologies with which they were not necessarily very
familiar, because there were no alternative sessions (other than
truancy, which was frowned upon). The effect was a tremen-
dous cross-fertilization of ideas and expertise. For example, the
electromagnetic researchers learned how to present results in
ways that reservoir engineers could see a benefit. Seismologists
learned about the problems facing the engineering community,
and found out that these were not always the same as the “prob-
lems” that the geophysicists had been working on. And so on.
Most meetings were highly successful, although some did not
break even financially, causing a strain on the concept of dedi-
cated small meetings sponsored by the larger society.
A brief timeline drawn from session titles of SEG Annual
Meetings and special sections of TLE shows a number of
accomplishments (see box, right).

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There were times that the D&P Committee recommended Acknowledgments: The author gratefully acknowledges all the people who
that the SEG Executive Committee change the name of SEG to worked on the D&P Committee through the years, and who actively pro-
something more encompassing (my personal favorite is SEG: moted the discipline of reservoir geophysics. Each person’s recounting of the
the Society of Extraordinary Geophysicists—where we are all historic record will vary, and this article presents just one view. Preparation
above average). This proposal was usually met with disdain, but of this manuscript was supported by project DE-FC26-04NT15508 from
occasionally good-natured laughter. The D&P Committee no the U.S. Department of Energy, Fossil Energy Program, through the Tulsa
longer feels the need to exert its influence in these matters. office of the National Energy Technology Laboratory with Purna Halder as
Instead, the question presently facing the group is this: Now that program manager. The views and opinions of the author expressed herein
development and production geophysics has become a major do not necessarily state or reflect those of the United States Government or
force—perhaps the major force—in petroleum geophysics, is any agency thereof.
there still a need for such a committee? Should the committee
“declare victory and go home”? We are nearly all reservoir geo- About the author: Wayne Pennington has degrees in geology and geophysics
physicists now. from Princeton, Cornell, and the University of Wisconsin-Madison. His
career has been divided between academic and industry employers and he
Suggested reading. The best contemporary accounts of the devel- is currently a professor of geophysical engineering and department chair at
opment of reservoir geophysics can be found in the annual special Michigan Technological University. He was an early advocate of reservoir
sections of TLE from 1992 through 2004. The journal is available for geophysics and chaired the 1992 D&P Forum on Monitoring Reservoir
browsing through the SEG Digital Library (http://segdl.org/). Some Changes Over Time. Pennington was guest editor for several TLE special
readers may be interested in comparing the reflections made in this sections on development and production geophysics and wrote the reservoir
paper with the predictions made by Gordon Greve in “Geoscience geophysics chapter in the new Petroleum Engineering Handbook (soon
in reservoir development—a sleeping giant” (TLE, 1992). @75 to be published by SPE).

Examples of typical advertisements published


in GEOPHYSICS during the 1940s.

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