Reservoir Engineering Overview

Presented by: Aung Myat Kyaw

Reservoir
Engineer
MPRL E&P Pte,
Ltd.

Myanmar Engineering
Society
20-Dec-2008
 Overview Objectives

§ Introduction to reservoir management and it’s benefits

§ Introduction to reservoir simulation and it’s benefits

§ Introduction to reserve estimation and it’s benefits

2
 Reservoir Management - Definition

The use of available

resources (human,
technological and financial)
to maximize profits from a
reservoir by optimizing
recovery while minimizing
capital investments and
operating expenses(*)

(*)“Integrated Reservoir Management” by Abdus Satter, SPE, James E. Varnon, SPE and Muu T. Hoang, SPE, Texaco Inc., SPE
22350 JPT, December 1994
3
 Reservoir Management Approach

1. Timing
2. Integration of Geoscience and Engineering
3. Reservoir Management Process
4. Establishing Purpose of Strategy
5. Developing a Plan

4
 Reservoir Management Approach
1. Timing
The ideal time to start managing a reservoir is at
discovery. However it is never too late to initiate a well-
thought-out, coordinated reservoir management program.
An early start not only produces better overall project
planning, implementation, monitoring, and evaluation but
also saves money in the long run, maximising the profits.

5
 Reservoir Management Approach
2. Integration of Geoscience and Engineering
Synergy and team concepts are the essential
elements for integration of geoscience and engineering.
Integration involves people, technology, tools and data.

Its success depends on the following

An overall understanding of the reservoir
management process, technology and tools through
integrated training and integrated job assignments.
Openness, flexibility, communication and
coordination
Working as a team
Persistence

6
 Reservoir Management Approach
3. Reservoir Management Process

7
 Reservoir Management Approach
4. Establishing Purpose of Strategy
a. Reservoir Characteristics

c. Total Environment
i. Corporate – goals, financial strength, culture
and attitude.
ii. Economic – business climate, oil/gas price,
inflation, capital, and personnel availability.
iii. Social - conservation, safety and environmental
regulations.

d. Technology and Technological Toolbox

8
 Reservoir Management Approach
5. Developing a Plan

9
Integration for Effective Reservoir
Management

10
Standard Technology and Technological
Toolbox

11
 Conclusion For Reservoir Management

Management
Geology &
Legal
Geophysics

Reservoir
Land
It is becoming more Engineering

recognized that reservoir

management is not synonymous
with reservoir engineering
Environment Economics
and/or reservoir geology. Reservoir
Success requires Management
Team
multidisciplinary, integrated
team efforts. The players are
Drilling
everyone who has anything to Service
Engineering
do with the reservoir.

Design &
Research &
Construction
Development
Engineering
Gas and Production &
Chemical Operation
Engineering Engineering

12
 Reservoir Simulation

As applied to petroleum reservoirs, simulation

can be stated as:

The process of mimicking or inferring the

behavior of fluid flow in a
petroleum reservoir system
through the use of either
physical or mathematical models.

13
Reservoir Simulation

As used here, the words

petroleum reservoir
system
include the reservoir
rock
and fluids, aquifer, and
the

14
 MODELING
METHODS

•Any problem is solvable if you can make assumptions- the key is determining
the right
assumptions.

15
DATA CONSIDERED BY MODELING
METHOD

16
 Key Steps in a Simulation
Study
1. Clear Objectives and Pre-
planning

3. Reservoir Characterization

5. Model Selection

7. Model Construction

9. Model Validation

11.Predictions

13.Documentation

17
 Pre-planning the reservoir simulation
study
•Objective of the study
•Assess uncertainties
•Data requirements and
availability
•Modeling approach
•Limitations of proposed
procedures
•Resources
Project budget
Time available
Hardware
Geolog Software.
Scale- Data Quality & Mathematic
y Up Quantity al

SOURCES OF UNCERTAINTY IN SIMULATION

18
Reservoir
Characterization

19
 Geological
Description

*Geological description must identify the key factors which affect flow through
the reservoir.
20
 Fluid
Characterization
Fluid characterization defines the physical properties of the reservoir fluid
mixture, and
how they vary with changes in pressure, temperature and volume.

Steps to characterize the reservoir fluids:

•Classify the fluid type
•Determine reservoir fluid properties
•Describe reservoir production mechanisms.

Pressure
Bubble Dew
Liquid point point

FIRST BUBBLE
Gas
LAST DROP
OF GAS OF LIQUID

Volume

21
22
 Petrophysical
Model
The petrophysical model defines where the volumes of oil, water and gas
are located
in the reservoir, as well as how fluids behave in the presence of the rock.
To define the petrophysical model of the reservoir, you must determine:
•Rock Wettability
A
•Capillary Pressure
•Relative Permeability
•Residual Oil Saturation h1-h2
•Fluid Contacts q

A
h1
Air Oil
1.0
h2
θ (SandPackLength) L
0.8 θ

0.6

Oil OIL
0.4
OIL q

WATER
0.2 θ WATER
WATER WATER θ < 90°
SOLID (ROCK)
Water SOLID (ROCK)
n
o
crm
,F
b
yP
tivR
la
e

0
20 40 60 80
Water Saturation (% PV)
23
24
 Model
Selection
•The Black Oil Models (Primary depletion, secondary recovery and immiscible gas
injection)

•The Compositional Models(CO2 flooding, gas injection into near critical reservoir,
conden-
sate reservoirs)

•The Chemical Flood Models ( Polymer/surfactant/Low-tension polymer

flooding/Alkali/
Foam flooding)

•Thermal Models (Steam soaks/drive, In situ combustion)

•Dual-Porosity Models of Fractured Systems

25
Model
Selection

26
 Constructing the Reservoir
Model
QC the geologic model for errors and
problems

Scale-up the model

27
 Constructing the Reservoir
Model

Zoning the geological model

Layering the zone

Making Local Grid Refinement

Model the attached aquifer to

reservoir

Model the faults

Model the Wells and Adding

the Wells data

28
Model
Validation

29
 Predictions

Important considerations when making reservoir model

predictions:

Prediction cases shouldn’t exceed capabilities of the model.

Predictions need to be consistent with field practices.

Simulation yields a non-unique solution with inherent

uncertainties from:

v Lack of validation (e.g., reservoirs with sparse geologic

or engineering
data).
v Modeling or mathematical constraints because of
compromises made in
model selection.
v Inherent uncertainties in reservoir characterization and
30
31
 Documentati
on

Technical memorandum

Formal report

Presentation

Store data files

Share lessons learned with future

project teams

32
 Reserves
Estimations

•Reserves Estimations Rely on Integrity, Skill, and Judgment of

Evaluator

•Reserves Estimations Are Affected by Geological Complexity,

Stage of
Development, Degree of Depletion of Reservoirs and Amount of
Available Data

•All Reserve Estimates Involve Some Degree of Uncertainty and Is

Done
Under Conditions of Uncertainty

•Uncertainty Depends Mainly on Amount of Reliable Geologic &

Engineering
Data at Time of Estimate and Interpretation of These Data

33
34
35
Methods of Petroleum Reserves
Estimations

•ANALOGY (Bbls per Acre Foot

Period)
•VOLUMETRIC(Bbls per Acre – Bbls
Period)
•PERFORMANCE (Bbls Period)
Ø Simulation Studies
Ø Material Balance Studies

EUR = OOIP x RF

EUR; Estimated Ultimate

Recovery
OOIP; Original Oil-In-Place
RF; Recovery Factor

EUR = ERR + Cum

EUR; Estimated Ultimate

Recovery
ERR; Estimated Remaining
Reserves

36
 Analogy (Barrels per Acre Foot
Period)

Requirements : A field or well which is expected to

perform similarly.
Advantages : Fast, cheap, can be done before drilling.
Disadvantages: Accuracy (Apples and Oranges)

37
 Volumetric (Barrels per Acre to Barrels
Period)
Requirements: A well. Logs and/or Core. Estimate of
drainage area,
recovery factor (analogy), fluid properties (minor).
Advantages : Minimal information. Can be done early
in the life.
Relatively fast.
Disadvantages: Requires assumptions (Area, Recovery
EUR = OOIP x RF

EUR; Estimated Ultimate

Recovery
OOIP; Original Oil-In-Place
RF; Recovery Factor

38
 Decline Curves (Barrels
Period)

Requirements: Production history (only).

Advantages: No assumptions about size, type or other

properties of
reservoir. Need only production history. Fast, cheap.
Very accurate under certain circumstances. Results
in
production versus time prediction.

Disadvantages: Well must be producing under “constant”

conditions.
Need at least 6 months history (better 2-10 years).
Ambiguous (does not necessarily give unique

39
 Decline Curves
(Continue)
10000

1000

100
Phase : Oil
CV.DavgOil, bbl/d

Case Name : TPL

b : 0.55
Di : 0.05 A.n.
qi : 67.0135 bbl/d
ti : 12/30/2006
te : 04/30/2014
10 End Rate : 1 bbl/d
Final Rate : 47.9872 bbl/d
Cum. Prod. : 5939.15 Mbbl
Cum. Date : 12/01/2006
Reserves : 151.793 Mbbl
EUR : 6090.95 Mbbl
Forecast Ended By : Time
Forecast Date :
1
197071 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99200001 02 03 04 05 06 07 08 09 10 11 12 13 14
40
 Material
Balance

Requirements: Pressure, Production history, fluid

properties, rock
properties (relative permeability required for
prediction).

Advantages : No assumptions necessary for areal extent,

thickness
recovery factor. Low sensitivity to porosity, water
saturation. Can be used to calculate oil-in-place, gas-
in-
place, recoverable reserves (and therefore recovery
factor), water influx, gas cap size.

Disadvantages: Pressure not usually available. Predictions

41
 Reservoir
Simulation
Requirements: For each cell: permeability, porosity, thickness,
elevation,
initial saturation, initial pressure, rock compressibility.
For each well: location, producing interval, production
rates versus time, pressure versus time.
For each rock type: relative permeability of each phase,
capillary pressure.
For each fluid type: formation volume factors, viscosity,
gas solubility, density.
Reservoir description: faults, pinchouts, aquifers, layering.

Advantages: Ability to handle different rock and fluid properties

in
different areas of the reservoir. Can predict production
from individual wells. Once history match is obtained, can
study effects of different producing schemes. Input data
requirements force close analysis of reservoir.

Disadvantages: Cost, time required to do study, amount of input

data, non-
42
 Conclusio
ns
•If the Material Balance and Decline Curves say there is more
oil-in-place
than the Volumetric, then there are probably un-drilled
locations.

•By comparing the results from the various methods, much can
be learned
about the reservoir, detach the faulty assumption and form a
better picture
of reservoir.

43
 References

 Integrated Petroleum Reservoir Management (Abdus Satter, Ph.D

and Ganesh C. Thakur, Ph.D)

 Reservoir Simulation Overview ( Dale Brown, Subsurface Director,

Chevron Bangladesh)

 Oil Property Evaluation (Thompson and Wright)

 Determination of Oil and Gas Reserves (SPE monograph No-1)

 Oil & Gas Reserves Estimations {Saw Ler Mu, ME(CSM)}

44
Thanks You All.

45