Integrated Reservoir Asset Management

Transcription

1 Integrated Reservoir Asset Management

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3 Integrated Reservoir Asset Management Principles and Best Practices John R. Fanchi AMSTERDAM. BOSTON. HEIDELBERG. LONDON NEW YORK. OXFORD. PARIS. SAN DIEGO SAN FRANCISCO. SINGAPORE. SYDNEY. TOKYO Gulf Professional Publishing is an imprint of Elsevier

4 Gulf Professional Publishing is an imprint of Elsevier 30 Corporate Drive, Suite 400 Burlington, MA 01803, USA The Boulevard, Langford Lane Kidlington, Oxford, OX5 1GB, UK # 2010 Elsevier Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher. Details on how to seek permission, further information about the Publisher s permissions policies and our arrangements with organizations such as the Copyright Clearance Center and the Copyright Licensing Agency, can be found at our website: This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein). Notices Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary. Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility. To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein. Library of Congress Cataloging-in-Publication Data Fanchi, John R. Integrated reservoir asset management : principles and best practices / John Fanchi. p. cm. Includes bibliographical references and index. ISBN Oil reservoir engineering. 2. Petroleum reserves. I. Title. TN F dc British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. For information on all Gulf Professional Publishing publications visit our Web site at Printed in the United States

5 Contents Preface About the Author ix xi 1 Introduction Life Cycle of a Reservoir Reservoir Management Recovery Efficiency Reservoir Management and Economics Reservoir Management and the Environment 11 CS.1 Valley Fill Case Study: Introduction 14 Exercises 15 2 Fluid Properties The Origin of Fossil Fuels Description of Fluid Properties Classification of Petroleum Fluids Representation of Fluid Properties 27 CS.2 Valley Fill Case Study: Fluid Properties 31 Exercises 32 3 Geology The Geologic History of the Earth Rock Formations and Facies Structures and Traps Petroleum Occurrence Geochemistry Basin Modeling Porous Media Volumetric Analysis 46 CS.3 Valley Fill Case Study: Geologic Model 47 Exercises 47 4 Porosity and Permeability Bulk Volume and Net Volume Porosity and Grain Volume Effective Pore Volume Porosity Compressibility Darcy s Law and Permeability Permeability Averaging 58

6 vi Contents 4.7 Transmissibility Measures of Permeability Heterogeneity Darcy s Law with Directional Permeability 65 CS.4 Valley Fill Case Study: Permeability 68 Exercises 69 5 Geophysics Reservoir Scales Physics of Waves Propagation of Seismic Waves Acoustic Impedance and Reflection Coefficients Seismic Data Acquisition, Processing, and Interpretation Seismic Resolution Stratigraphy 85 CS.5 Valley Fill Case Study: V P /V S Model 87 Exercises 88 6 Petrophysics Elastic Constants Elasticity Theory The Petroelastic Model The Geomechanical Model Time-Lapse (4-D) Seismology 104 CS.6 Valley Fill Case Study: Bulk Moduli 107 Exercises Well Logging Drilling and Well Logging Direct Measurement Logs Lithology Logs Porosity Logs Resistivity Logs Other Types of Logs Reservoir Characterization Issues 121 CS.7 Valley Fill Case Study: Well logs 123 Exercises Well Testing Pressure Transient Testing Oil Well Pressure Transient Testing Gas Well Pressure Transient Testing Well Test Capabilities 141 CS.8 Valley Fill Case Study: Well Pressures 143 Exercises Production Evaluation Techniques Decline Curve Analysis 145

7 Contents vii 9.2 Gas Well Deliverability Material Balance Production Performance Ratios and Drive Mechanisms Production Stages Tracer Tests Tracer Test Design 160 CS.9 Valley Fill Case Study: Production 164 Exercises Rock Fluid Interactions Interfacial Tension Wettability Capillary Pressure Correlation of Capillary Pressure to Rock Properties Equivalent Height and Transition Zone Effective Permeability and Relative Permeability Mobility, Relative Mobility, and Flow Capacity 181 CS.10 Valley Fill Case Study: Rock Fluid Interaction Data 183 Exercises Reservoir Characterization Flow Units Traditional Mapping Computer-Generated Mapping Geostatistics and Kriging Geostatistical Modeling Visualization Technology 202 CS.11 Valley Fill Case Study: Reservoir Structure 203 Exercises Fluid Displacement Fractional Flow The Buckley-Leverett Theory Welge s Method Frontal Advance Linear Stability Analysis Well Patterns 218 CS.12 Valley Fill Case Study: Conceptual Model 221 Exercises Reservoir Simulation Continuity Equation The Convection Dispersion Equation The Navier-Stokes Equation Black Oil Model Equations 229

8 viii Contents 13.5 Integrated Flow Model Equations The Well Model 236 CS.13 Valley Fill Case Study: Layering of Reservoir Flow Model 240 Exercises Data Management Sources of Rock Data Sources of Fluid Data Sources of Field Performance Data Data Management Data Preparation 253 CS.14 Valley Fill Case Study: Input Data Uncertainty 255 Exercises Reservoir Flow Modeling Green Field Modeling Brown Field Modeling Deterministic Reservoir Forecasting Probabilistic Reservoir Forecasting Guidelines for Modern Flow Modeling 275 CS.15 Valley Fill Case Study: Deterministic History Match and Base Case Prediction 276 Exercises Modern Reservoir Management Applications Improved Oil Recovery Unconventional Fossil Fuels Geothermal Reservoir Management Sequestration Compressed Air Energy Storage 289 CS.16 Valley Fill Case Study: Waterflood Prediction 291 Exercises 292 Appendix A Unit Conversion Factors 295 Appendix B IFLO User s Manual 299 B.1 Introduction to IFLO 301 B.2 Initialization Data 303 B.3 Recurrent Data 332 B.4 Program Output 341 References 343 Index 355

9 Preface The primary objective of this book, Integrated Reservoir Asset Management: Principles and Best Practices, is to introduce the topic of reservoir management to those with diverse technical backgrounds. Modern reservoir management relies on asset management teams composed of people from a variety of scientific and engineering disciplines. In addition to geologists, geophysicists, and reservoir engineers, asset management teams can include chemists, physicists, biologists, production engineers, flow assurance engineers, drilling engineers, facilities engineers, mechanical engineers, electrical engineers, and environmental engineers. This book is designed to present concepts and terminology for topics that are often encountered by members of reservoir asset management teams and professionals. This book can be used as an introduction to reservoir management for science and engineering students, practicing scientists and engineers, continuing education classes, industry short courses, or self-study. Included in the book is an update of the material in Shared Earth Modeling (2002), which was a compilation of material that I taught in reservoir characterization courses for geoscientists and petroleum engineers at the Colorado School of Mines. The change in title from Shared Earth Modeling to Integrated Reservoir Asset Management recognizes the technical diversity now found in modern asset management teams, and it changes the focus from the shared earth model to reservoir management. Exercises have been added that allow the reader apply a flow simulator (IFLO) as part of a case study that is used to illustrate and integrate the material in the book. The flow simulator was originally provided with the book Principles of Applied Reservoir Simulation, Third Edition (Elsevier, 2006). Chapter 1 presents an overview of reservoir management. Chapter 2 discusses fluids that may be contained in reservoirs. Chapter 3 reviews geological principles used to characterize the subsurface environment, and Chapter 4 introduces two key reservoir parameters (porosity and permeability). Chapters 5 through 9 describe methods used to acquire information about the subsurface environment. Chapter 10 reviews rock fluid interaction relationships that are needed for a realistic formulation of multi-phase fluid flow equations. Chapter 11 discusses how to distribute properties throughout the reservoir, and Chapter 12 presents fluid displacement concepts. An introduction to fluid flow equations used in reservoir simulation is presented in Chapter 13. Data management is discussed in Chapter 14. Chapter 15 introduces modern reservoir flow modeling workflows, and Chapter 16 describes a variety of reservoir management applications, including some that are relevant to sustainable energy systems. A Valley Fill Case Study is used to show the reader

10 x Preface how the information in each chapter can be applied as part of an integrated reservoir management study. Exercises are provided at the end of each chapter. Two types of units are commonly found in petroleum literature: oil field units and metric (SI) units. The units used in this book are typically oil field units. In Appendix A, the process of converting from one set of units to another is simplified by providing frequently used factors for conversion between oil field units and metric units. A flow simulator (IFLO) is used in several exercises; see The user s manual for the flow simulator is provided in Appendix B. My colleagues in industry and academia, as well as the students in my multidisciplinary classes, helped me identify important and relevant topics that cross disciplinary lines. I am, of course, responsible for the final selection of topics. I would especially like to thank Kathy Fanchi and Chris Fanchi for their efforts in the preparation of this manuscript. John R. Fanchi, Ph.D.

11 About the Author John R. Fanchi is a professor in the Department of Engineering and Energy Institute at Texas Christian University in Fort Worth, Texas. He holds the Ross B. Matthews Chair of Petroleum Engineering and teaches courses in energy and engineering. Before this appointment, he taught petroleum and energy engineering courses at the Colorado School of Mines and has worked in the technology centers of four energy companies. He co-edited the General Engineering volume of the Petroleum Engineering Handbook published by the Society of Petroleum Engineers, and he is the author of several books, including Principles of Applied Reservoir Simulation, Third Edition (Elsevier, 2006), Math Refresher for Scientists and Engineers, Third Edition (Wiley, 2006), Energy in the 21 st Century, Second Edition (World Scientific, 2010), Energy: Technology and Directions for the Future (Elsevier Academic Press, 2004), Shared Earth Modeling (Elsevier, 2002), Integrated Flow Modeling (Elsevier, 2000), and Parametrized Relativistic Quantum Theory (Kluwer, 1993).