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SPE 20138
Thie paper waa prepared for presentatkn at the 1990 PermianBaaln011and Gas RecoveryConferenceheldIn Midland,Taxae, March S-9, 1800.
Thla paper was selected for presentation by an SPE Program Committee followlng review of information contained in an abstract submitted by the author(e), Contents of the paper,
as presented, havenotbeenreviewedby the Societyof PetroleumEngineersand are aubjactto correctionby the author(a).The material,as presented,doesnotnacwwrily raflact
anypositionoftheSocietyof PetroleumEnglnwr8,Itaoftkere,or members.Paperspresentedat SPE meetingeare subjectto publkationreviewby EditorialCommttfeeaof theSwlety
ofPetroleumEnglnaere.PermleaiontoWY faraafrktadtoanabstractofnotrmxethan300 wwde.Wafrafknsmaynotbe@pied.Theabstractshouldcentaincawpkww ecWwWgmant
of whereand by whomthe paperISprewntad. Write PublkationaManager,SpE, p.O- *X S3WS, Richardson,n 7--3333. Telex, 7309S9 SpEDAL.
ABSTRACT
Becauee of the complexities and varied areas of A team building approach, involving in-houee
expertise Involved in making a primary, secondary, reservoir management forumslworkshope, has alao
or enhanced recovery prodect successful~ it has been employed. The main objective of the workshops
become necessary to adopt a team approach for has been to facilitate cotmmnication among
reservoir management. Until the early 1970s, engineering, geology, geophysics, and operationa
reservoir engineering was considered the only iteto staff. Synergetic recommendations for project
of technical importance in the management of a improvement have been a mutual outgrowth of these
reservoir, However, after understandingthe value forums.
of geology, this no longer holds true. The
eynergism provided by the interaction between
geology and reservoir engineering haa been quite INTRODUCTION
successful, but the reservoir management has
generally failed to recognize the value of other The first task of this paper is to define
diectplines, e.g. production operations, drilling, reservoir management. The Webster dictionary
and different engineeringfunctions. defines management as the judicious use of meana
to accomplish an end. Thus, the management of
Thfs paper provides informationon the treatment of reservoirs can be interpretedas the judicious use
reservoir management as a SYSTBM. The System of various means available to a businessman in
consists of: 1) reservoir characterization, 2) order to maximize his benefits (profits) from a
creation and operation of wells, 3) surface reservoir.
processing of the fluids, and 4) fluids and their
behavior in the reaervofr. These must be Most people consider reservoir management
considered aa interrelated parts of a unified synonymouswith reservoir engineering. As recently
system. as the early 1970s, reservoir engineering was
considered the only item of technical importance in
A reservoir management model involving the management of reservoirs. However, after
interdleciplinary functions is discttesedin this understanding the value of geoloEY, synergism
paper. Also, the success of this model in between geology and reservoir engineering has
designing and implementingthe North Ward Estes COZ become very popular and has proved to be quite
project, Ward/Winkler County, Texas, is diecuseed beneficial.
in detail. TMs reeervolr management approach has
yialded a better deeign and installation of this Reservoir management has advanced through varioue
C02 project. h addition, it has resulted in stages in the last 30 years. The technique are
successful workovers~ identificationof waterflood better, background knowledge of reservoir
improvements, and better plans for future C02 conditions hae iatprovecl,and automation using
projecte. mafn~rame computers and personal computere has
helped data processing and management. The
developmental etages of reservoir management could
be described as:
References and illustrationsat and of paper.
.-
------- ---- .. ..,. ..,-.-... . . - -..-... -=4 AU nrrnutm.n . ------
Stage 2 - This covers the time period of the The goal is to maximize profits and thus neglecting
1970s and 1980s. Craig et al (1977), and or de-emphasizing any of the items above could
Harrts and Hewitt (1977) explained the value jeopardize our objective. For example, we coulddo
of synergism between engineering and geology. well in studying the fluide and their tnteractton
Craig emphasized the value of detailed with rock, i.e. reservoir engineering, but if the
reservoir description, utilizing geological, proper well andlor eurface ey8tem design is not
geophyeic~l and reservoir simulation considered,the recovery of oil andlor gas will not
concepts. He challenged explorationists, be optimized. Mo8t people can cite exemplea of
with the knowledge of geophysical tools, to mietakes made in our buaineas where we thoroughly
provide a more accurate reservoir deszriptton studfed various aepects of the reservoir and made
to be used in engineering calculations. decieiona resulting in too many wells drtlled,
Harrie and Hewitt presented a geologic improper applicationof well completion technology,
perspective of the synergism in reservoir inadequate surface facilities available for future
management. Thay explained the reeervoir expansions,etc.
inhomogeneity due to complex variations of
reservoir continuity, thickness patterns, and In this paper, the suggeeted reaervolr management
pore-space properties, e.g., porosity, approach involvee interaction between various
permeabilityand capillary pressure. function8, as deecribed in Figure 1. Although not
shown, the approach emphasizes interactionbetween
Although the synargiem provided by the interaction various functton8 and their interaction with
between geology and reservoir engineering has been management, economic, proration, and legal groups.
quite successful, the reeervo%r management has This reeerwoir management model, involving
generally fatled to recognize the value of other interdisciplinary functione has provided ueeful
disciplines, e.g. production operations, drilling, reeults for several projects. A caee study ue%ng
and different engineeringfunctions. the North Ward Estes Field wtll be descr%bed to
illustratethis approach.
The objective of raservoir management ia to
optfmize profitable oil and gaa recovery, which can The following question and answer section describes
be obtained by the following steps: our philosophy of reeervoir manage$uent:
1. Identify and define all individual A) When should reservoir management etart?
reservoirs in a given field and their
physical properties. The ideal time to start managing a reservoir
fS at its discovery. It is never too early to
2. Deduce past and predict reservoir start this program, becauee early initiation
performance. of a coordinated raservoir management program
not only provides a better monitoring and
3. Minimize drilling of unnecessary wells. evaluation tool, but also coste less in the
long run. For example, a few early l.)STacould
4. Define and modify (if neceseary) wellbore help decida if and where to set pipe. some-
and surface systems. times these data can also provide the same
type of information normally available by
5. Initiate operating controls at the proper complex and expensive cased hole, multiple
time. zone testing, An extra log or an additional
hour~s tine on a DST may provide better
6. Coneider all pertinent economic and legal information than could $e obtainad from mora
factors. expeneive core analyais.
aAe
. .
E 020138 G. C. Thakur ,
must maintain the reservoirs and its sister (vi) Are additional data necessary?
subsystemshealth from the start.
(vii) Has there been an adequate
Most often reservoirmanagement fs not started geological study?
early enough and the reservoir, wella~ and
surface systems are ignored for a long time. (viii) Has the reservoir been adequately
Many times we consider reservotr management at deftned?
the time of a tertiary recovery operation.
However, it is critical and a prerequisitefor D) Why a Team Effort and How to Enhance It?
an economically successful tertiary recovery
operation to have a good reservofr management Successful reservoir management requires an
program already in place. Integrated group effort. All development and
operating dectsions should be made by the
In the Permian Basin, C02 flooding is reservoirmanagement team which recognizes the
receiving more and more attention. An dependence of the entire system upon the
efficient reservoirmanagement program for COZ nature and behavior of the reservofr. It is
flooding (with a $2 per barrel injectant cost) not necessary that all decisions be made by a
is even more critical compared to reservoir engineer; in fact, a team member who
waterflooding (with a 5 - 10 cents per barrel considers the entire system, rather than just
cost for water). Thus, it is very important the reservoir aspect, will be a more effective
that all injected COZ be properly utilized in decision maker. It will help tremendously If
displacing oil to the productionwells. the person has background knowledge of
reservoir engineering,geology, production and
B) What, how and when to collect data? drilling engineering, well completion and
performance,and surface factltties. Not many
To answer this question, we must follow an people in an organization have knowledge in
integrated approach of data collection all areas. However, many persons develop an
involving all functions from the beginning. intuitive feel for the entire system and know
Before collecting any data, we should ask the when to ask for technical advice regarding
following questions various elements of the system.
(i) Are the data necessary and what The team effort in reservoirmanagement cannot
are we going to do with these be emphasized too much. It is even more
data? necessary now than it has ever been before
because the current trend of the oil industry
(ii) What are the benefits of these is not one of expansion. Host companiea are
data and how do we devise a plan carrying on their production activitieswith a
to obtain the necessary data at staff much smaller than that existed just five
the minimum cost? years ago,
Note that the reservoir management team must Also, with the advent of technology and the
prepare a coordinated reservoir evaluation complex nature of different aubsyatems, it h
program to show the need of the data difficult for anyone to become an expert in
requirement, along with their coats and all areas. Therefore, it is obvious that the
benefits. &nyx et al provides a detailed reduction of talent and increasingly complex
review of ~ta evaluation for reservoir technologiesmust be offset by an increase in
calculations. quality, productivity, and emphasis on the
team effort.
It must be emphasized that early definition
and evaluation of the reservoir system i~,~ A team approach to reservoir management can be
prerequisite to good reservoir management. enhanced by the following:
The team members must convince the management
to obtain necessary data to evaluate the (i) Facilitate communication among
reservoir syetam and should participate in various engineering disciplines,
operating decisions. geology and operation staff by:
(a) meeting periodically, (b)
c) What kinds of questions should we ask if we interdisciplinary cooperation in
want to ensure the right answer in the process teaching each others functional
of resarvoir management? Example questions objectives,and (c) building trust
are described below: and mutual respect. Also, each
member of the team should learn to
(i) What does the anawer mean? be a good teacher.
(ii) Doea the answer fit all he (ii) The engineer, to some degree, must
facts; why or why not? develop the geologists knowledge
of rock characteristics and
(iii) Are there other possible depositional environment, and a
interpretations of the data? geologist must cultivate knowledge
in wall completion and other
(iv) Were the assumptions reasonable? engineering tasks.
aAi
-1-r.
. .
(iii) Each member should subordinate information on the field history, structure, and
their ambitions and egos to the stratigraphy.
goals of the reservoir management
team. The producing formationsare Yatea and Queen sands,
but most of the production has been from the Yates
(iv) Each team member must maintain a sands (Figure 3). They consist of very
high level of technical fine-grainedsandatones to siltstones,separatedby
competence. dense dolomite beds. These sands, as shown in
Figure 4, are: A, BC, D, E, F, stray sands, Jl,
(v) The team members must work as a J and J .
2 3
well-coordinatedbasketballteam
rather than a relay team. Most of the BC was in the original gas cap and
Reservoir engineers should not consists of siltstone~ to finegrained sandstone
wait on geologists to complete with clay. The D and E sanda are similar to BC.
their work and then start the The atrsy is composed of thin bedded, lenticular,
reservoir engineering work. s-iltatonesand fine-grained sandstones, with high
Rather, a constant interaction clays. The JI and J2 sands are composed of coareer
between the functions should take sanda with much less clay content and, therefore,
place. For example, it ia better have higher porosities and permesbilities.
to knew early on if the isopach Generally, the J3 ia not well developed and is wet
and cumulative oil/gaa production in most areas.
mapa do not agree rather than
finalize all isopach maps and then The Queen formation, which lies below the Yates
find that the cumulative sands, iS composed of intervals of fine-grained
production maps are indicating sandstonea to siltstones, composed of numerous
another interpretation of the thin, lenticular sanda with poor lateral
reservoir. continuity. Thus, the Queen sand has been
difficult to waterflood.
In summary, the synergism of the team approach
can yield a whole ia greater than sum of its Reservoir Management Team
parts effect.
A team including all functional groups, as shown in
Figure i, was fmmed to investigate all pertinent
NORTH WARD ESTES FIELD - A CASE STUDY optione for optimizing recovery from the field.
The resulte of the team effort are describedbelow:
Introduction
1. Geological Characterization
The Notth Ward Estea (NWE) field, located in Ward
and Winkler Counties, Texas (Figure 2), was A correlation scheme was developed for
discovered in 1929. It is an 18 mile x 4 mile the field based upon laterally continuous
anticlinorium. Cumulative oil production fron .key dolomites that bracket the productive
primary and secondary recovery has been in excess sanda and segment the reservoir into
of 320 million barrels, or about 25% OOIP, from discrete mappable units. A computer
more than 3,000 wells. The field haa been database wae built by our geologists to
waterflooded since 1955. Geologically, the field facilitate che processing and integration
resides on the western edge of the Central Basin of large volumes of data to aid in the
Platform. The ~i.eld is part of an Upper geological characterization study. The
Guadalupfan productive trend which extends database componentswere:
uninterrupted for 90 miles on the edge of the
platform (Figure 3). A. Wireline log data from 3,300
wells, which included about 15
The average reservofr depth is 2,600 feet; porosity million curve feet.
and permeability average 19% and 19 md,
respectively. The reservoir temperature ia 83F. B. Core data consisting of 538
The flood patterns are generally 20 acre five apots cores, which totaled about
and line drives. 30,000 feet of analysee and
lithology description.
Field Informationand Geology
c. Marker data for more than
The field was initially developed on 20-acre 60,000 correlation markers.
spacing. Later, however, the moat productive parta
of the field were drilled on a 10-acre spacing. D. Fluid contact data, i.e.
Until the 1950s, the wells were mostly completed original gaa-oil and oil-water.
open-hole and shot with nitroglycerine. Perforated
lfners were then hung from the casing, which was E. Production data, consisting of
set above the productive formation in the gaa historical and wellbore data,
sands. including diagrams.
After 1950, the wells were completed caaed-hole, Core analyses were depth covrected. Loge
hydraulicallyfractured and acid stimulated. About were normalized using a 30-feet interval
half of the current producers and injectors are of laterally continuous anhydritic
cased-hola. Table 1 provldae additional dolomite. -Gore porosity data were
442
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The North Ward Estes Field is one of the 3. Discuss management strategy for specific
largest fields for Chevron U.S.A. Inc. and it fields, providing an opportunity for an
has significant EOR potential. C02 flooding exchange of ideas between varioua work groups.
was the only economic option available to
recover significant reserves from this field. 4. Concentrate on problem araas for these ZIelde
For about 1,300 producing wells, the+average and recommend an action plan, reeulting from
production rate is only 7 BOPD at 95 Z water the collective contribution of all
cut. Out of the 1,300 wells, about 700 make 5 participance.
BOPD or less. Also, 300 wells are now capable
of producing only at or below the present (Note that SPE offered a forum in August 1989
economic limit, Thus, if COZ flooding was not on Reservoir Management; however, our format
implemented right away, economics would have is much different than SPES.)
dictated plugging and abandoning of uneconomic
wells. Benefits Received
Keeping the above pointa in mind and As a result of the in-house forums, the
considering the average age of wells in the participantsachieved the following:
field of about 35 years~ a window of
opportunity became quite obvious. If the 1. Refocused the minds of the participants on
wells were abandoned, it was unlikely that the reservoirmanagement.
project would have been undertaken because
economics would not have justified re-drills. 2. Shared knowledge, experiences, judgments and
Thus, it became an urgency to start an EOR ideas.
project, i.e. either move quickly or risk
losing the chance. To design and implement an 3, Questioned and commented on new contributions
EOR project and to Improve the performance of and extracted valuable ideas.
the existing waterfloods, a study team, as
shown in Figure 1 was formed. 4. Generated ideaa and prepared plans involving
all team members.
2. What Did the Team Achieve?
5. Developed an understanding of the collective
During the design phase, as many as 25 to 30 aim of the team and the way in which an
members of varioas functional groups worked individual, along with the rest of the team,
together on a comprehensive design of a can contribute.
six-section COZ project, reviewad hundreda of
workover candidates~ and evaluated several Design of In-house Forums
waterflood modificationprojects.
About 30 participant attend each forum. The
In addition to initiating many workovers and participance include 6-8 reservoir engineers, 6-8
waterflood modification projects~ within 15 production engineers, 6-8 geologiata and
months C02 injection wae started in the geophysicists, 2-3 design and construction
six-section project area. Within a engineers, 2-3 gaa and chemical engineers, 1-2
year-and-a-half,the gas processing plant was drilling engineers, and 3-5 field foremen and
built and started. The teams goal for every production auperintendents(ace Table 2).
aspect of the project, from well workovers,
reservoir studies, C02 injectionand gathertng Typically, the forums are held for two (2) days and
system construction to atart up was 2 to 3 field caae etudies ara diacuesed. The
accomplished in a short time without studies are selected by the production divieion
sacrificingquality. staff and are of critical importance to the
division. The division managers concurrence on
In eummary, the teamwork across the function the caae studies is obtained beforehand.
lines has resulted in successful design and
implementationof many successful projects in The forum starta with a presentation by the
the North Ward Estes Field. Division Manager. He conveys hie philosophy of
reservoir management. We have observed this to be
one of the most productive session.ebecause:
ROLE OF RESERVOIR MANAGEMENT FORUM/WORKSHOP
1. It provides an informal interaction between
Objective the reservoir management teem members and
management.
We have conducted several in-house reservoir
management workshope. The objectives of the 2. The participance obtain an tnatghtinto the
workshops have been to: workinge of the local management. They get a
feel of what may or may not be po.saible to
1, Focus attentton on practical aepects of be approved. (Most participance indicated
reservoir management. that it provided them with a real opportunity
to understand the local management and
..*
. .
PE 020138 G. C. Thakur
3. List the pros and cons for each solution. 5. It ia critical to have periodic revfew
meetings, involving all team members. Most,
4* Prepare and recommend solutione, considering ff not all, of these meetings should be held
economic aspects. in the field offices. The success of these
meeting will depend upon the abflity of each
Each teatiis guided by a coordinator/facilitatorto team member to teach hislher functional
ensure that it ie making progress and steered in objectives.
the right direction.
.4.
. .
RFSERVOIR MANAGEMENT -
in combined recommendations for project 6. Amyx, Bass and Whiting: Petroleum Reservoir
improvement, Engineering, McGraw-Hill Book Company, New
York (1960)
4, Harris, D.G. and Hewitt, C.H.: Synergism in 13. Winzinger, R.~ et al: Design of a Major C02
Reservoir Management - The Geologic Flood - North Ward Estes Field, Ward County,
Perspective, J. Pet. Tech. (July 1977) pp. Te~asl,SPE paper t?o. 19654, presented at the
761-770 SPE Annual Technical Conference, October 8-11)
1989, San Antonio, Texaa
5. Calhoun, J.C.: A Definition of Petroleum
Engineering,J. Pet. Tech. (July 1963)
TABLE 1 TABLE 2
In-houao Forums on Prac+tioal Aepocts
North Ward Estoo Mold of Reservoir Management
I
SECONDARY PRODUCTION-QUEEN
AVERAQE DEPTH-S1OO
. .
. AQE-PERMIAN.-.(LATE
..QUADALUPIAN)
L17HOLO@Y-VERY FINE QRAIN BAND AND SILT-
BTONEt3,DOLOMlTE/ANHYDRITE INTERBEDDED
AVERAQE POROSITY-19%
AVERAaE PERMEABILITY-19 md,
ENVIRONMENT-TIDAL FLAT
TABLE II
DEPOSITIONAL ENVIRONMENT
Forum Discussion Outline
INTRODUCTION CROSS-SECTIONS & FENCE DIAGRAMS
HCPV DETERMINATION
DATA REQUIREMENTS
RESERVOIR PETROLOQY
ROCK AND FLUID SAMPLING AND ANALYSIS
ORGANIC GEOCHEMISTRY
ROLE OF GEOLOGY
USE OF OLD WELL RECORDS & OABLE TOOL
INFORMATION
BACKGROUND MATERIALS ON PRACTICAL
ASPECTS OF RESERVOIR MANAGEMENT DETERMINATION OF FLUID CONTACTS
TABLE 5 TABLE 6
PRODUCTION OPERATIONS
PERIODIC REVIEW MEETINGS, INVOLVINQ ALL
c DRILLIN@ OPERATIONS YEW idEMk3ERf3ONTERDlWIPLINARy
000PERATfON IN TEAOf+lNG EAOH OTHERS
CASE 8TUDY REVIEW * DIBCUBBION IN FUNCTIONAL OBJECTIVES)
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SPE Paper Numbers 20139
Thru
20147
No C~pies GWailmble