PETE 486

Petroleum Production Engineering

Boyun Guo, Ph.D.
Professor in Petroleum Engineering

boyun.guo@louisiana.edu

Chapter 0

Introduction to
Petroleum Production Engineering

What is petroleum ?

Crude Oil and Natural Gas

What is oil?
What is natural gas?
0 50 150 200 250 300 350 100
1000
500
1500
2000
2500
3000
3500
4000
Reservoir Temperature (
o
F)
R
e
s
e
r
v
o
i
r

P
r
e
s
s
u
r
e

(
p
s
i
a
)
L
i
q
u
i
d

V
o
l
u
m
e
4
0
%
2
0
%
1
0
%
8
0
%
5
%
0
%
B
u
b
b
l
e

P
o
i
n
t
Gas Reservoirs
Retrograde
Condensate
Reservoirs
Critical
Point
p
i
, T
p
tf
, T
tf
p
wf
, T
wf
D
e
w

P
o
i
n
t
C
r
i
c
o
n
d
e
n
t
h
e
r
m
P
o
i
n
t

What is production ?

A process of producing.

What?
From where?
Through what?

What in engineering ?
Designing, constructing
(manufacture & installation),
monitoring, maintaining,
analyzing, optimizing

What?
Chapter 1
Petroleum Production System

- Reservoir
- Well
- Surface facilities
Reservoir

- Fluid type
- Volume
- Pressure
- Flow mechanism
- OOIP & OGIP
( )
oi
wi
B
S Ah
OOIP

=
1 |
( )
gi
wi
B
S Ah
OGIP

=
1 |
How to estimate OOIP and OGIP?
Reserves Estimate by Statistics

- Sample Mean
- Sample Standard Deviation
- Distribution
- Probability
- Degree of Confidence
- Confidence Interval
Sample Mean

=
=
n
i
i
x
n
x
1
1
Sample No. Porosity
1 0.155
2 0.165
3 0.145
4 0.143
5 0.167
Sample Mean = 0.155
) (x E =
Sample Standard Deviation
Sample No. Porosity
1 0.155
2 0.165
3 0.145
4 0.143
5 0.167
( )

=
n
i
i
x x
n
S
1
2
1
1
S
2
= Sample Variance
E[S
2
] = o
2
= population variance
Sample Variance = 0.000122
Sample Standard Deviation = 0.011045
Distribution

- Normal distribution
- Log-normal distribution
Number of Samples
From To Average
2 0.155 0.165 0.16
4 0.165 0.175 0.17
7 0.175 0.185 0.18
11 0.185 0.195 0.19
14 0.195 0.205 0.2
16 0.205 0.215 0.21
15 0.215 0.225 0.22
13 0.225 0.235 0.23
12 0.235 0.245 0.24
8 0.245 0.255 0.25
5 0.255 0.265 0.26
3 0.265 0.275 0.27
1 0.275 0.285 0.28
Porosity
0
2
4
6
8
10
12
14
16
18
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35
Porosity
N
o
.

o
f

S
a
m
p
l
e
s
0
2
4
6
8
10
12
14
16
18
0 100 200 300 400 500
Permeability (md)
N
o
.

o
f

S
a
m
p
l
e
s
0
2
4
6
8
10
12
14
16
18
0.1 1 10 100 1000 10000
Permeability (md)
N
o
.

o
f

S
a
m
p
l
e
s
Homework
Develop a
spreadsheet program
and use it to calculate
sample mean and
standard deviation of
the given data set.
Does the data follow a
normal distribution
pattern?
Sample No. Porosity
1 0.155
2 0.164
3 0.145
4 0.152
5 0.162
6 0.143
7 0.135
8 0.122
9 0.161
10 0.181
11 0.195
12 0.157
13 0.154
14 0.161
15 0.158
16 0.147
17 0.162
18 0.154
19 0.149
20 0.172
Probability

- Introduction example
- Definition
- Unit normal distribution function
- Exercises
Introduction Example
Number of Samples
From To Average
2 0.155 0.165 0.16
4 0.165 0.175 0.17
7 0.175 0.185 0.18
11 0.185 0.195 0.19
14 0.195 0.205 0.2
16 0.205 0.215 0.21
15 0.215 0.225 0.22
13 0.225 0.235 0.23
12 0.235 0.245 0.24
8 0.245 0.255 0.25
5 0.255 0.265 0.26
3 0.265 0.275 0.27
1 0.275 0.285 0.28
Porosity
0
2
4
6
8
10
12
14
16
18
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35
Porosity
N
o
.

o
f

S
a
m
p
l
e
s
Question: What is the probability that the next
sample has a porosity value of less than 0.2?
(1) Average
Porosity
(2) Number of
values (n
i
)
(3)
Cumulative n
i

(4) Cumulative
Frequency, (2)/(3)
0.16 2 2 0.018018018
0.17 4 6 0.054054054
0.18 7 13 0.117117117
0.19 11 24 0.216216216
0.2 14 38 0.342342342
0.21 16 54 0.486486486
0.22 15 69 0.621621622
0.23 13 82 0.738738739
0.24 12 94 0.846846847
0.25 8 102 0.918918919
0.26 5 107 0.963963964
0.27 3 110 0.990990991
0.28 1 111 1
0
0.2
0.4
0.6
0.8
1
1.2
0.15 0.17 0.19 0.21 0.23 0.25 0.27 0.29
Porosity
C
u
m
u
l
a
t
i
v
e

F
r
e
q
u
e
n
c
y
Note: This is like a probability function!
0
2
4
6
8
10
12
14
16
18
0.1 0.12 0.14 0.16 0.18 0.2 0.22 0.24 0.26 0.28 0.3
x
O
c
c
u
r
r
e
n
c
e

f
(
x
)
0
0.2
0.4
0.6
0.8
1
1.2
0.1 0.15 0.2 0.25 0.3
Porosity
C
u
m
.

F
r
e
q
u
e
n
c
y
Read Area / Total
Area
Unit Normal Distribution Function

If random variable X has a normal distribution with mean
and variance o , then variable

Z = (X-)/o

is a normal random variable with mean 0 and variance 1.
X
Z

o
1
If
Z = (X-)/o

then X = a and X = b correspond to

Z
a
= (a-)/o
Z
b
= (b-)/o



Normal Distribution Function:


x
o 3 o 3 +
o
399 . 0
2 2
2 / ) (
2
1
) (
o
o t

=
x
e x f
Unit Normal Distribution Function:


x
3 3 +
399 . 0
2 /
2
2
1
) (
x
e x

=
t
|
Normal Density Function:


) (x f
x
o 3 o 3 +
o
399 . 0
x
}

=
x
dx x f x F ) ( ) (
) (x F
x
o 3 o 3 +
Unit Normal Density Function:


}

= u
x
dx x x ) ( ) ( |
x
3 3 +
399 . 0
) (x |
x
x
3 3 +
) (x u
0.5
1.0
Probability
=
Degree of Confidence
P{x<x
0
} = u(x
0
)
Probability of Unit Normal Random Variable
x
3 3 +
) (x |
x
P{x>x
0
} = 1-u(x
0
)
P{x<a} = u(a)
x
3 3 +
) (x |
a
P{x>b} = 1-u(b)
P{a<x<b} = u(b)- u(a)

b
= u [-b|
P{X<a} = P{(X-)/o <(a-)/o} = u [(a-)/o]
Probability of a Normal Random Variable
x
) (x f
a
P{X>a} = P{(X-)/o >(a-)/o}
= u [-(a-)/o] = 1-u [(a-)/o]
x
) (x f
a
P{a<X<b} = u [(b-)/o] -u [(a-)/o]
x
3 3 +
) (x f
a
b
( )

=
n
i
i
x x
n
S
1
2
1
1
S
2
= Sample Variance = 16
E[S
2
] = o
2
= population variance = 16
SD = 4

=
=
n
i
i
x
n
x
1
1
3
Example-1:

Find the degrees of confidence for X < 11 and 2 < X < 7

Solution:

{ }
)
`

<

= <
4
3 11
4
3
11
X
P X P
9772 . 0 = % 72 . 97 =
|
.
|

\
|

u =
4
3 11
( ) 2 u =
{ }
)
`

<

<

= < <
4
3 7
4
3
4
3 2
7 2
X
P X P
)
`

u
)
`

u =
4
3 2
4
3 7
5987 . 0 1 8432 . 0 + =
% 44 =
( )
(

|
.
|

\
|
u u =
4
1
1 1
( )
|
.
|

\
|
u u =
4
1
1
44 . 0 =
Confidence Interval
Since the sample mean changes with the
number of samples, the mean is never certain.
That is,


is not known. The mean can be estimated with
95% confidence:
) (x E =
n
x
n
x
o

o
96 . 1 96 . 1 + < <
x

In general, a 100(1-o) percent confidence

interval for is expressed as:


where

n
Z x
n
Z x
o

o
o o 2 / 2 /
+ < <
( ) 2 / 1
2 /
o
o
= u Z
Example-2:

Find general expressions of confidence intervals
for the mean with confident percentages of 95,
90, 98, and 50.
If there are 25 samples in Example-1, determine the
98% confident interval for the mean.

Solution:

1) For 95% confidence interval:
100(1-o) = 95
o = 0.05
o/2 = 0.025

( ) 025 . 0 1
2 /
= u
o
Z ( ) 975 . 0
2 /
= u
o
Z
96 . 1
2 /
=
o
Z
n
x
n
x
o

o
96 . 1 96 . 1 + < <
2) For 90% confidence interval:
100(1-o) = 90
o = 0.1
o/2 = 0.05

( ) 05 . 0 1
2 /
= u
o
Z ( ) 95 . 0
2 /
= u
o
Z
64 . 1
2 /
=
o
Z
n
x
n
x
o

o
64 . 1 64 . 1 + < <
3) For 98% confidence interval:
100(1-o) = 98
o = 0.02
o/2 = 0.01

( ) 01 . 0 1
2 /
= u
o
Z ( ) 99 . 0
2 /
= u
o
Z
33 . 2
2 /
=
o
Z
n
x
n
x
o

o
33 . 2 33 . 2 + < <
4) For 50% confidence interval:
100(1-o) = 50
o = 0.5
o/2 = 0.25

( ) 25 . 0 1
2 /
= u
o
Z
( ) 75 . 0
2 /
= u
o
Z
67 . 0
2 /
=
o
Z
n
x
n
x
o

o
67 . 0 67 . 0 + < <
5) 98% confidence interval:

25
4
33 . 2 3
25
4
33 . 2 3 + < <
( ) 4
1
1
1
2
=

=

=
n
i
i
x x
n
S
S
2
= Sample Variance = 16
E[S
2
] = o
2
= population variance = 16
3
1
1
= =

=
n
i
i
x
n
x
864 . 4 136 . 1 < <
Homework

1. Find a general expression of confidence interval for
mean with a confident percentage 80.

2. Determine the 95% confident interval for the mean of
data given in Homework #1.