Reservoir Engineering of Conventional and Unconventional Petroleum Resources
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Reservoir Engineering of Conventional and Unconventional Petroleum Resources is a practical guide and handbook for engineers and geoscientists. It is also a complete textbook for teaching of reservoir engineering courses with exercises in each chapter.
The sources and applications of basic rock properties are presented. Pr
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Reservoir Engineering of Conventional and Unconventional Petroleum Resources - Nnaemeka Ezekwe
This book contains information and data obtained from reliable and highly reputable sources. The author and publisher have made reasonable and due diligent efforts in the preparation of this book, but make no expressed or implied warranty of any kind and assume no responsibility for any errors or omissions. No liability is assumed for incidental and/or consequential damages linked to or originating from the use of the information and data contained herein.
Library of Congress Cataloging-in-Publication Data
Name: Ezekwe, Nnaemeka
Title: Reservoir Engineering of Conventional and Unconventional Petroleum Resources
Description: Houston; TIGA Petroleum, Inc. 2020.
Identifiers: Library of Congress Control Number (LCCN): 2019919253
ISBN: 978-2-7333890-0-6 (Hardcover)
Subjects: Petroleum Engineering, Reservoir Engineering, Production Engineering
Copyright © 2019 Nnaemeka Ezekwe
All rights reserved. The publication is protected by copyright. No part of the publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, including but not limited to network storage or transmission in any form or by any means, electronic, mechanical, photocopying recording, or other means, now in existence or invented hereafter, or broadcast for distance learning, without the written permission from Dr. Nnaemeka Ezekwe.
Trademark Notice: Product or corporate names/symbols may be trademarks or registered trademarks. These are used only for identification and/or explanation without any intent to infringe.
Send all inquiries to:
Dr. Nnaemeka Ezekwe
TIGA Petroleum, Inc.
27 Treasure Cove Drive
Spring, Texas 77381
United States of America
Email: [email protected]
Website: http://www.tigapetroleum.com
ISBN-13: 978-1-7333890-0-6
ISBN-13: 978-1-7333890-1-3
ISBN-13: 978-1-7333890-2-0
ISBN-13: 978-1-7333890-3-7
ISBN-13: 978-1-7333890-4-4
Printed in the United States of America.
First Printing, January 2020
Dedication
To the enduring memory of my parents, Vincent Nweke and Rosaline Oriaku, for their commitment, courage, and sacrifices they made toward my education and those of my brother and sisters. This book is truly a testament that the seed they planted and nurtured have borne bountiful fruit for all.
Table of Contents
Title
Copyright
Dedication
Preface
Acknowledgments
About the Author
Chapter 1 Conventional and Unconventional Reservoirs
1.1 Introduction
1.2 Conventional Reservoirs Versus Unconventional Reservoirs
1.2.1 Conventional Reservoirs
1.2.2 Unconventional Reservoirs
1.2.3 Unconventional Reservoirs in the United States of America (USA)
1.2.4 Potential Resources in Unconventional Reservoirs in the World
Abbreviations
References
Chapter 2Porosity of Reservoir Rocks
2.1 Introduction
2.2 Total Porosity and Effective Porosity
2.3 Sources of Porosity Data
2.3.1 Direct Methods for Measurement of Porosity
2.3.2 Indirect Methods for Derivation of Porosity
2.4 Applications of Porosity Data
2.4.1 Volumetric Calculation
2.4.2 Calculation of Fluid Saturations
2.4.3 Reservoir Characterization
Nomenclature
Abbreviations
References
Additional References
Problems
Chapter 3Permeability and Relative Permeability
3.1 Introduction
3.2 Sources of Permeability Data
3.2.1 Permeability from Core Samples
3.2.2 Permeability from Pressure Transient Tests
3.2.3 Permeability from Well Logs Based on Empirical Correlations
3.3 Relative Permeability
3.4 Sources of Relative Permeability Data
3.4.1 Laboratory Measurements of Relative Permeability Data
3.4.2 Estimations from Field Data
3.4.3 Empirical Correlations
3.5 Three-Phase Relative Permeability
3.6 Applications of Permeability and Relative Permeability Data
Nomenclature
Abbreviations
References
Additional References
Problems
Chapter 4Reservoir Fluid Saturations
4.1 Introduction
4.2 Determination of Water Saturations
4.2.1 Clean Sands
4.2.2 Shaly Sands
4.2.3 Carbonate Rocks
4.2.4 Water Saturations from Nuclear Magnetic Resonance Logs
4.2.5 Uncertainties in Estimation of Water Saturation
4.3 Determination of Reservoir Productive Intervals
4.3.1 Net Sands, Net Reservoir, and Net Pay
Nomenclature
Abbreviations
References
Additional References
Problems
Chapter 5Pressure-Volume-Temperature (PVT) Properties of Reservoir Fluids
5.1 Introduction
5.2 Phase Diagrams
5.2.1 Single-Component Systems
5.2.2 Binary Systems
5.2.3 Multicomponent Systems
5.2.4 Retrograde Behavior of Gas-Condensate Systems
5.3 Gas and Gas-Condensate Properties
5.3.1 Ideal Gas Equation
5.3.2 Real Gas Equation
5.3.3 Gas Gravity
5.3.4 Reduced Temperature and Pressure
5.4 Pseudo-Critical Properties of Gas Mixtures
5.4.1 Composition of Gas Mixtures Known
5.4.2 Correction for non-Hydrocarbon Gas Impurities
5.4.3 Composition of Gas Mixture Unknown
5.5 Wet Gas and Gas Condensate
5.5.1 Recombination Method
5.5.2 Correlation Method
5.6 Correlations for Gas Compressibility Factor
5.7 Gas Formation Volume Factor (FVF)
5.8 Gas Density
5.9 Gas Viscosity
5.10 Gas Coefficient of Isothermal Compressibility
5.11 Correlations for Calculation of Oil PVT Properties
5.11.1 Bubble Point Pressure
5.11.2 Solution Gas-Oil Ratio (GOR)
5.11.3 Oil Formation Volume Factor (FVF)
5.11.4 Coefficient of Isothermal Compressibility of Oil
5.11.5 Oil Viscosity
5.12 Correlations for Calculation of Water PVT Properties
5.12.1 Water Formation Volume Factor (FVF)
5.12.2 Density of Formation Water
5.12.3 Coefficient of Isothermal Compressibility of Formation Water
5.12.4 Viscosity of Formation Water
Nomenclature
Subscripts
References
Additional References
Problems
Chapter 6Reservoir Fluid Sampling and PVT Laboratory Measurements
6.1 Overview of Reservoir Fluid Sampling
6.2 Reservoir Type and State
6.2.1 Undersaturated Oil Reservoirs
6.2.2 Undersaturated Gas Condensate Reservoirs
6.2.3 Saturated Oil Reservoirs
6.2.4 Saturated Gas Condensate Reservoirs
6.3 Well Conditioning
6.4 Subsurface Sampling Methods and Tools
6.4.1 Conventional Bottomhole Samplers
6.4.2 Pistonned Bottomhole Samplers
6.4.3 Single Phase Samplers
6.4.4 Exothermic Samplers
6.5 Wireline Formation Testers
6.5.1 Oil-Based Mud Contamination of WFT Samples
6.5.2 Formation Pressures from WFT
6.5.3 Capillary Effects on WFT Formation Pressures
6.5.4 Effects of Supercharging on WFT Formation Pressures
6.5.5 Comments on Applications of WFT Pressure Data
6.6 PVT Laboratory Measurements
6.6.1 Fluid Composition
6.6.2 Constant Composition Expansion (CCE)
6.6.3 Differential Liberation (DL)
6.6.4 Constant Volume Depletion (CVD)
6.6.5 Separator Tests
6.6.6 Viscosity Measurements
6.7 Applications of Laboratory PVT Measurements
6.7.1 Calculation of Oil FVF and Solution GOR
6.7.2 Calculation of Gas Compressibility Factor, Gas FVF, and Total FVF
6.7.3 Calculation of Oil Compressibility Factor
Nomenclature
Subscripts
Abbreviations
References
Additional References
Problems
Appendix 6ATypical Reservoir Fluid Study for a Black Oil Sample
Appendix 6BTypical Reservoir Fluid Study for a Gas Condensate Sample
Chapter 7PVT Properties Predictions from Equations of State
7.1 Historical Introduction to Equations of State (EOS)
7.2 van der Waals (vdW) EOS
7.3 Soave-Redlich-Kwong (SRK) EOS
7.4 Peng-Robinson (PR) EOS
7.5 Phase Equilibrium of Mixtures
7.6 Roots from Cubic EOS
7.7 Volume Translation
7.8 Two-Phase Flash Calculation
7.8.1 Generalized Procedure for Two-Phase Flash Calculations
7.9 Bubble Point and Dew Point Pressure Calculations
7.10 Characterization of Hydrocarbon Plus Fractions
7.11 Phase Equilibrium Predictions with Equations of State
Nomenclature
Subscripts
Superscripts
Abbreviations
References
Problems
Chapter 8The General Material Balance Equation
8.1 Introduction
8.2 Derivation of the General Material Balance Equation (GMBE)
8.2.1 Development of Terms in the Expression of Eq. (8.1)
8.3 The GMBE for Gas Reservoirs
8.4 Discussion on the Application of the GMBE
Nomenclature
Subscripts
Abbreviations
References
Problems
Chapter 9Gas Reservoirs
9.1 Introduction
9.2 Volumetric Gas Reservoirs
9.2.1 Volumetric Calculations for Dry Gas Reservoirs
9.2.2 Volumetric Calculations for Wet Gas and Retrograde Gas Condensate Reservoirs
9.2.3 Material Balance for Volumetric Dry Gas, Wet Gas, and Retrograde Gas Condensate Reservoirs
9.3 Gas Reservoirs with Water Influx
9.3.1 Volumetric Approach
9.3.2 Material Balance Approach
9.3.3 The Cole Plot
9.3.4 The Havlena-Odeh Straight Line Method
9.4 Water Influx Models
9.4.1 Fetkovich Aquifer Model
9.4.2 Carter-Tracy Aquifer Model
9.5 Geopressured Gas Reservoirs
9.5.1 The Ramagost and Farshad Method
9.5.2 The Roach Method
9.6 Case Histories of Two Gas Reservoirs
9.6.1 The Case History of Red Hawk Reservoir
9.6.2 The Case History of West Cameron 580 Reservoirs
Nomenclature
Subscripts
Abbreviations
References
Additional References
Problems
Appendix 9ACorrelations for Estimating Residual Gas Saturations for Gas Reservoirs Under Water Influx
Appendix 9BDimensionless Pressure for Finite and Infinite Aquifers
Appendix 9CDimensionless Pressure for Infinite Aquifers
Chapter 10Oil Reservoirs
10.1 Introduction
10.2 Oil Reservoir Drive Mechanisms
10.3 Gravity Drainage Mechanism
10.4 Volumetric Undersaturated Oil Reservoirs
10.4.1 Volume Calculations Above Bubble Point Pressure
10.4.2 Volume Calculations Below Bubble Point Pressure
10.5 Undersaturated Oil Reservoirs with Water Influx
10.5.1 Volumetric Method
10.5.2 Material Balance Method
10.6 Volumetric Saturated Oil Reservoirs
10.6.1 Volumetric Method
10.6.2 Material Balance Method
10.7 Material Balance Approach for Saturated Oil Reservoirs with Water Influx
10.8 Case History of Manatee Reservoirs
10.8.1 Reservoir Geology
10.8.2 Rock and Fluid Properties
10.8.3 Reservoir Pressure and Production Data
Nomenclature
Subscripts
Abbreviations
References
Problems
Chapter 11Production Forecasting for Conventional and Unconventional Reservoirs
11.1 Introduction
11.2 Flow Regimes
11.3 Arps’ Decline Equations
11.3.1 Range of Values for Arps’ b Parameter
11.3.2 Effective and Nominal (Exponential) Decline Rates
11.3.3 Type Curves for Analysis of Production Data
11.3.4 Normalized Rates and Pressures
11.3.5 Flowing Material Balance
11.3.6 Diagnostic Plots
11.3.7 Transient Decline Models
11.3.8 Construction of Type Wells for Production Forecasting
11.3.9 Analyses of Well Production Data Using a Step-by-Step Procedure
Nomenclature
Subscripts
Abbreviations
References
Problems
Appendix 11 Data for Examples 11.1 and 11.2
Chapter 12Fluid Flow in Petroleum Reservoirs
12.1 Introduction
12.2 Fluid Types
12.2.1 Incompressible Fluids
12.2.2 Slightly Compressible Fluids
12.2.3 Compressible Fluids
12.3 Definition of Fluid Flow Regimes
12.3.1 Transient Flow
12.3.2 Pseudosteady-State (PSS) Flow
12.3.3 Steady-State (SS) Flow
12.4 Darcy Fluid Flow Equation
12.5 Radial Forms of the Darcy Equation
12.5.1 Steady-State Flow, Incompressible Fluids
12.5.2 Average Permeability of Parallel Beds
12.5.3 Average Permeability of Serial Concentric Segments
12.5.4 Pseudosteady State, Incompressible Fluids
12.5.5 Steady-State Flow, Compressible Fluids
12.6 Derivation of the Continuity Equation in Radial Form
12.7 Derivation of Radial Diffusivity Equation for Slightly Compressible Fluids
12.8 Solutions of the Radial Diffusivity Equation for Slightly Compressible Fluids
12.8.1 Constant Terminal Rate Solution
12.8.2 Constant Terminal Pressure Solution
12.9 Derivation of the Radial Diffusivity Equation for Compressible Fluids
12.10 Transformation of the Gas Diffusivity Equation with Real Gas Pseudo-Pressure Concept
12.11 The Superposition Principle
12.11.1 Applications of Constant Terminal Rate Solutions with Superposition Principle
12.11.2 Applications of Constant Terminal Pressure Solution with Superposition Principle
12.12 Well Productivity Index
12.13 Well Injectivity Index
Nomenclature
Subscripts
Abbreviations
References
Additional References
Problems
Appendix 12AChart for Exponential Integral
Appendix 12BTabulation of pD vs tD for Radial Flow, Infinite Reservoirs with Constant Terminal Rate at Inner Boundary
Appendix 12CTabulation of pD vs tD for Radial Flow, Finite Reservoirs with Closed Outer Boundary and Constant Terminal Rate at Inner Boundary
Appendix 12DTabulation of pD vs tD for Radial Flow, Finite Reservoirs with Constant Pressure Outer Boundary and Constant Terminal Rate at Inner Boundary
Appendix 12ETabulation of QD vs tD for Radial Flow, Infinite Reservoirs with Constant Terminal Pressure at Inner Boundary
Appendix 12FTabulation of QD vs tD for Radial Flow, Finite Reservoirs with Closed Outer Boundary and Constant Terminal Pressure at Inner Boundary
Chapter 13Well Test Analysis: Straightline Methods
13.1 Introduction
13.2 Basic Concepts in Well Test Analysis
13.2.1 Radius of Investigation
13.2.2 Skin and Skin Factor
13.2.3 Flow Efficiency and Damage Ratio
13.2.4 Effective Wellbore Radius
13.2.5 Drawdown Well Tests
13.2.6 Buildup Well Tests
13.2.7 Wellbore Storage
13.3 Line Source Well, Infinite Reservoir Solution of the Diffusivity Equation with Skin Factor
13.4 Well Test Analyses with Straightline Methods
13.4.1 Slightly Compressible Fluids
13.4.2 Compressible Fluids
13.5 Special Topics in Well Test Analyses
13.5.1 Multiphase Flow
13.5.2 Wellbore Storage Effects
13.5.3 Wellbore Phase Redistribution Effects
13.5.4 Boundary Effects
13.5.5 Multilayered Reservoirs
Nomenclature
Subscripts
Abbreviations
References
Additional References
Problems
Chapter 14Well Test Analysis: Type Curves
14.1 Introduction
14.2 What Are Type Curves?
14.3 Gringarten Type Curves
14.3.1 Unit-Slope Line
14.4 Bourdet Derivative Type Curves
14.5 Agarwal Equivalent Time
14.6 Type-Curve Matching
14.7 Procedures for Manual Application of Type-Curve Matching in Well Test Analysis
14.8 Stages of the Type-Curve Matching Procedures
14.8.1 Identification of the Interpretation Model
14.8.2 Calculation from Interpretation Model Parameters
14.8.3 Validation of the Interpretation Model Results
Nomenclature
Subscripts
Abbreviations
References
Problems
Appendix 14ACharacteristic Shapes of Pressure and Pressure-Derivative Curves for Selected Well, Reservoir, and Boundary Models
Appendix 14BData for Example 14.1
Appendix 14CCalculation of Pressure Derivatives
Chapter 15Well Test Analysis: Hydraulically Fractured Wells and Naturally Fractured Reservoirs
15.1 Introduction
15.2 Hydraulically Fractured Wells
15.3 Definition of Dimensionless Variables for Fractured Wells
15.4 Flow Regimes in Fractured Wells
15.4.1 Fracture Linear Flow
15.4.2 Bilinear Flow
15.4.3 Formation Linear Flow
15.4.4 Pseudo-radial Flow
15.5 Fractured Well Flow Models
15.5.1 Finite Conductivity Vertical Fracture
15.5.2 Infinite Conductivity Vertical Fracture
15.5.3 Uniform
Flux Vertical Fracture
15.6 Fractured Well Test Analysis: Straightline Methods
15.6.1 Bilinear Flow
15.6.2 Procedure for Application of Straightline Methods on Well Test Data During Bilinear Flow Regime
15.6.3 Formation Linear Flow
15.6.4 Procedure for Application of Straightline Methods on Well Test Data During Formation Linear Flow Regime
15.6.5 Pseudo-Radial Flow
15.6.6 Procedure for Application of Straightline Methods on Well Test Data During Pseudo-Radial Flow Regime
15.7 Fractured Well Test Analysis: Type-Curve Matching
15.7.1 Identification of the Interpretation Model
15.7.2 Calculation from Interpretation Model Parameters
15.7.3 Validation of the Interpretation Model Results
15.7.4 Procedure for Analysis of Well Test from Hydraulically Fractured Wells
15.8 Naturally Fractured Reservoirs
15.9 Naturally Fractured Reservoir Models
15.9.1 Homogeneous Reservoir Model
15.9.2 Multiple Region or Composite Reservoir Model
15.9.3 Anisotropic Reservoir Model
15.9.4 Single Fracture Model
15.9.5 Double Porosity Model
15.10 Well Test Analysis in Naturally Fractured Reservoirs Based on Double Porosity Model
15.11 Well Test Analysis in NFRs: Straightline Methods
15.12 Well Test Analysis in NFRs: Type Curves
15.13 Procedure for Analysis of Well Test from NFRs Assuming Double Porosity Behavior
15.13.1 Identification of Flow Periods
15.13.2 Calculation of Fracture and Reservoir Parameters from Type Curves
15.13.3 Validation of Results with Straightline Methods
Nomenclature
Subscripts
Abbreviations
References
Additional References
Problems
Chapter 16Well Test Analysis: Deconvolution Concepts
16.1 Introduction
16.2 What Is Deconvolution?
16.3 The Pressure-Rate Deconvolution Model
16.3.1 The von Schroeter et al. ³ Deconvolution Algorithm
16.4 Application of Deconvolution to Pressure-Rate Data
16.5 Examples on the Application of the von Schroeter Deconvolution Algorithm to Real Well Test Data
16.6 General Guidelines for Application of von Schroeter Deconvolution Algorithm to Pressure-Rate Data from Well Tests
References
Additional References
Problems
Chapter 17Well Test Analysis: Diagnostic Fracture Injection Tests in Unconventional Reservoirs
17.1 Introduction
17.2 Typical DFIT Profile
17.3 Simple Fracture Orientation Models
17.4 Design, Planning, and Execution of DFIT
17.4.1 Selection of Test Interval
17.4.2 Injection Rates and Volumes
17.4.3 Selection of Shut-in Methods
17.4.4 Selection of Equipment for DFIT
17.4.5 Modeling DFIT with a Hydraulic Fracture Model
17.4.6 Other DFIT Execution Guidelines
17.5 Analyses of Diagnostic Fracture Injection Tests (DFITs)
17.5.1 Diagnostic Analyses
17.5.2 Before Closure Analysis (BCA)
17.5.3 After Closure Analysis (ACA)
17.6 Procedure for DFIT Analyses
Nomenclature
Subscripts
Abbreviations
References
Additional References
Problems
Appendix 17A Input Data For Example 17.1
Appendix 17B Diagnostic Plots Data For Example 17.1
Appendix 17C BCA and ACA Plots Data For Example 17.1
Chapter 18Immiscible Fluid Displacement
18.1 Introduction
18.2 Basic Concepts in Immiscible Fluid Displacement
18.2.1 Rock Wettability
18.2.2 Capillary Pressure
18.2.3 Relative Permeability
18.2.4 Mobility and Mobility Ratio
18.2.5 Fluid Displacement Efficiency
18.2.6 Volumetric Displacement Efficiency
18.2.7 Total Recovery Efficiency
18.3 Fractional Flow Equations
18.3.1 Fractional Flow Equation for Oil Displaced by Water
18.3.2 Fractional Flow Equation for Oil Displaced by Gas
18.4 The Buckley-Leverett Equation
18.5 The Welge Method
18.5.1 Water Saturation at the Flood Front
18.5.2 Average Water Saturation Behind the Flood Front
18.5.3 Average Water Saturation after Water Breakthrough
18.6 Summary
Nomenclature
References
Additional References
Problems
Chapter 19Secondary Recovery Methods
19.1 Introduction
19.2 Waterflooding
19.2.1 Waterflood Patterns
19.2.2 Waterflood Design
19.2.3 Recommended Steps in Waterflood Design
19.2.4 Waterflood Management
19.2.5 Management of Waterflooded Reservoirs
19.3 Gasflooding
19.3.1 Applications of Gasflooding
19.3.2 Gasflood Design
19.3.3 Recommended Steps in Gasflood Design
19.3.4 Gasflood Management
19.3.5 Management of Gasflood Reservoirs
Nomenclature
Abbreviations
References
Additional References
Problems
Chapter 20Low Salinity Waterflooding
20.1 Introduction
20.2 Laboratory Displacement Experiments Using Sandstone Cores
20.3 Field Tests in Sandstone Reservoirs
20.4 Laboratory Displacement Experiments Using Carbonate Cores
20.5 Field Tests in Carbonate Reservoirs
20.6 Mechanisms for LSE
20.6.1 Mechanisms for LSE in Sandstone Cores and Reservoirs
20.6.2 Mechanisms for LSE in Carbonate Cores/Reservoirs
20.7 Guidelines for Planning, Designing, and Installing LSWF Projects
20.8 Brief Case History of Claire Ridge LSWF Project
20.8.1 An Overview of Clair Ridge Field
20.8.2 Low Salinity Coreflood Tests
20.8.3 Reservoir Modeling and Analysis
20.8.4 Selection of Water Injection Facilities
Nomenclature
Abbreviations
References
Additional References
Problems
Chapter 21Enhanced Oil Recovery
21.1 Introduction
21.2 EOR Processes
21.3 EOR Screening Criteria
21.3.1 EOR Screening Criteria for Miscible Gas Injection Processes
21.3.2 EOR Screening Criteria for Chemical Flooding Processes
21.3.3 EOR Screening Criteria for Thermal Processes
21.4 Miscible Gas Injection Processes
21.4.1 Basic Concepts on Miscibility for Gas Displacement Processes
21.4.2 First-Contact Miscibility (FCM)
21.4.3 Multiple-Contact Miscibility (MCM)
21.4.4 Vaporizing Gas Drive MCM Process
21.4.5 Condensing Gas Drive MCM Process
21.4.6 Combined Condensing/Vaporizing (CV) Gas Drive MCM Process
21.5 Methods for Determination of MMP or MME for Gasfloods
21.5.1 Analytical Techniques for Estimation of MMP or MME
21.5.2 Experimental Methods
21.6 Types of Miscible Gas Flooding
21.6.1 Nitrogen/Flue-gas Miscible Gas Flooding
21.6.2 Hydrocarbon (HC) Miscible Gas Flooding
21.6.3 Carbon Dioxide Gas Flooding
21.6.4 Types of Miscible Gas Injection Strategies
21.7 Chemical Flooding Processes
21.7.1 Polymer/Surfactant Flooding
21.7.2 Alkali/Surfactant/Polymer (ASP) Flooding
21.7.3 Polymer Flooding
21.7.4 Microbial Enhanced Oil Recovery (MEOR)
21.8 Thermal Processes
21.8.1 Steamflooding Methods
21.8.2 Steamflood Models
21.8.3 Management of Steamflood Projects
21.8.4 In-Situ Combustion (ISC)/High Pressure Air Injection (HPAI)
21.9 Implementation of EOR Projects
21.9.1 Process Screening and Selection
21.9.2 Quick Economic Evaluation of Selected Processes
21.9.3 Geologic and Reservoir Modeling of Selected Processes
21.9.4 Expanded Economic Evaluation of Selected Processes
21.9.5 Pilot Testing
21.9.6 Upgrade Geologic and Reservoir Models with Pilot Test Data/Results
21.9.7 Final Detailed Economic Evaluation
21.9.8 Field-Wide Project Implementation
21.9.9 EOR Process Project Management
Nomenclature
Abbreviations
References
Additional References
Problems
Chapter 22Geologic Modeling and Reservoir Characterization
22.1 Introduction
22.2 Sources of Data for Geologic Modeling and Reservoir Characterization
22.2.1 Seismic Data
22.2.2 Outcrop and Basin Studies
22.2.3 Well Log Data
22.2.4 Core Data
22.2.5 Formation Pressures and Fluid Properties Data
22.2.6 Pressure Transient Test Data
22.2.7 Reservoir Performance Data
22.3 Data Quality Control and Quality Assurance
22.4 Scale and Integration of Data
22.5 General Procedure for Geologic Modeling and Reservoir Characterization
22.5.1 Generation of Geologic Surfaces or Horizons
22.5.2 Structural Modeling
22.5.3 Stratigraphic Modeling
22.5.4 Correlation and Assignment of Well Log Data
22.5.5 Property Data Modeling
22.5.6 Uncertainty Analysis
22.5.7 Upscaling of Geologic Model to Reservoir Flow Model
Nomenclature
Abbreviations
References
Additional References
Problems
Chapter 23Reservoir Simulation
23.1 Introduction
23.2 Derivation of the Continuity Equation in Rectangular Form
23.3 Flow Equations for Three-Phase Flow of Oil, Water, and Gas
23.4 Basic Concepts, Terms, and Methods in Reservoir Simulation
23.4.1 Grid Systems
23.4.2 Timesteps
23.4.3 Formulations of Simulator Equations
23.4.4 Material Balance Errors and Other Convergence Criteria
23.4.5 Numerical Dispersion
23.4.6 Well Model
23.4.7 Model Initialization
23.4.8 History Matching
23.4.9 Predictions
23.4.10 Uncertainty Analysis
23.5 General Structure of Reservoir Flow Models
23.5.1 Definition of Model and Simulator
23.5.2 Geologic Model Data
23.5.3 Fluid Properties Data
23.5.4 Rock/Fluid Properties Data
23.5.5 Model Equilibration Data
23.5.6 Well Data
23.5.7 Simulator Data Output
Nomenclature
Subscripts
Abbreviations
References
Additional References
Problems
Chapter 24Reservoir Management
24.1 Introduction
24.2 Reservoir Management Principles
24.2.1 Conservation of Reservoir Energy
24.2.2 Early Implementation of Simple, Proven Strategies
24.2.3 Systematic and Sustained Practice of Data Collection
24.2.4 Application of Emerging Technologies for Improved Hydrocarbon Recovery
24.2.5 Long-Term Retention of Staff in Multi-Disciplinary Teams
24.3 Case Histories Demonstrating Applications of Reservoir Management Principles
24.3.1 The Case History of 26R Reservoir (1976–1996)
24.3.2 Application of Reservoir Management Principles to 26R Reservoir
24.3.3 The Case History of MBB/W31S Reservoirs (1976–1999)
24.3.4 Application of Reservoir Management Principles to MBB/W31S Reservoirs
24.3.5 The Case History of the Shaybah Field
24.3.6 Application of Reservoir Management Principles to the Shaybah Field
References
Additional References
Problems
Chapter 25Economic Evaluation of Petroleum Projects and Property
25.1 Introduction
25.2 Classification of Oil and Gas Resources
25.2.1 Definition of Terms in the SPE PRMS
25.2.2 Estimation of Recoverable Resources
25.2.3 Analytic Methods for Resource Determination
25.2.4 Resource Assessment Techniques
25.3 Time Value of Money
25.3.1 Future Worth (Value) of a Single Payment
25.3.2 Present Worth (Value) of a Single Payment
25.3.3 Uniform Series Compound Amount
25.3.4 Sinking Fund Deposit Amount
25.3.5 Capital Recovery Amount
25.3.6 Uniform Series Present Worth Amount
25.3.7 Timing of Payments (or Investments) Considerations
25.3.8 Non-Uniform Series of Payments (or Investments)
25.3.9 Period, Nominal, and Effective Interest Rates
25.3.10 The Rule of 72
25.3.11 The Rule of 78
25.3.12 Cash Flow Diagram
25.4 Economic Valuation Parameters
25.4.1 Valuation Parameters Not Based on the Time Value of Money
25.4.2 Valuation Parameters Based on the Time Value of Money
25.4.3 Recommended Practice for Economic Valuations
25.5 Depreciation, Depletion, and Amortization
25.5.1 Depreciation Methods
25.5.2 Depletion Methods
25.5.3 Amortization Methods
25.6 Economic Evaluation of a Petroleum Property
25.6.1 Economic Evaluation of an Onshore Petroleum Property in the USA
25.6.2 Economic Evaluation of a Petroleum Property in Other Parts of the World
25.7 Decision and Risk Analysis Applied to Petroleum Evaluations
Nomenclature
Abbreviations
References
Problems
Appendix 25AEconomic Evaluation of a Drilling Prospect from paper SPE 68588
Appendix 25BCash Flow Model for a Multi-Well Development Project
Appendix 25CWorksheet for a PSC with Fixed Scale
INDEX
Preface
This book was envisioned as a partial but important update of the original book, Petroleum Reservoir Engineering Practice,
published in 2010 by Prentice Hall. The vision was to add several chapters on analyses of unconventional reservoirs and a chapter on economic evaluation of petroleum projects to the original book. I think this book provides adequate coverage of both subjects which will enhance its value to engineers. A chapter was added on low salinity waterflooding as an important technology for improved oil recovery. Another important expansion of the book is the addition of problems at the end of each chapter to help readers test their understanding of the subject matter presented in the chapter. The addition of problems will also assist lecturers to assign homework from the book. Except in these four main areas, this book retains substantial portions of material covered in the original book although important changes in wording and presentation were made in this version.
Unconventional reservoirs have completely changed the landscape in American petroleum industry. United States of America (USA) is currently one of the largest oil producers in the world surpassing Saudi Arabia and Russia. This tremendous reversal in oil productivity trend is driven by revolution in the productivity of unconventional reservoirs in the USA. In Chapter 1, the differences between conventional and unconventional reservoirs are presented. Also, in this chapter, unconventional reservoirs were shown to hold the future of hydrocarbon supply in the USA and the rest of the world. The potential of unconventional resources are almost limitless as the technologies developed in the USA are applied to similar resources found around the world. Engineers pursuing a career in the petroleum industry are advised to develop knowledge and skills on the engineering of unconventional reservoirs.
In Chapters 2 to 7, the sources and applications of basic rock and fluid properties data that are fundamental for all petroleum reservoir engineering calculations are presented. Chapter 2 presents the sources and applications of porosity. Chapter 3 covers sources and applications of permeability and relative permeability. Chapter 4 discusses methods and models for determination of fluid saturations, and classification of reservoir rocks for volumetric calculations. These topics are presented at the introductory to intermediate levels. The main objective is to emphasize the importance of these sources of data as basic inputs for most reservoir engineering calculations. Chapter 5 was devoted to rigorous calculations of Pressure-Volume-Temperature (PVT) properties of reservoir fluids from correlations. In concert with Chapter 5, Chapter 6 presents routine reservoir fluid sampling methods, and laboratory measurements of PVT properties from reservoir fluid samples. In Chapter 7, the prediction of PVT properties from equations of state is presented. The application of equations of state in compositional simulation justified the presentation of this subject at the intermediate-to-advance levels for many engineers who are involved in compositional reservoir simulation work.
The fundamentals of petroleum reservoir engineering are treated from Chapters 8 to 10. The general material balance equation is developed from basic concepts in Chapter 8 and applied as a fundamental tool for basic reservoir engineering analysis. In Chapter 9, volumetric and graphical methods for calculation of gas-in-place for different types of gas reservoirs are discussed. This approach is extended to oil reservoirs in Chapter 10. The use of case histories to illustrate analytic methods for evaluation of performance of gas and oil reservoirs is demonstrated in Chapters 9 and 10.
Production forecasting for conventional and unconventional reservoirs is discussed in Chapter 11. This is based primarily on Arps’ decline equations which have become the workhorse of the petroleum industry for production forecasting on conventional and unconventional reservoirs. The methodologies (decline curve analysis or DCA) for using Arps’ equation for production forecasting on conventional reservoirs are applicable to unconventional reservoirs although rate transient analysis (RTA) techniques should be applied to account for production characteristics of unconventional reservoirs such as relatively long transient flow periods and influence of boundary dominated flows (BDF). The Stretched Exponential Decline Model (SEDM) and the Duong Model are presented in the chapter as two transient decline models which can be coupled with the modified Arps’ decline equations to improve production forecasting for unconventional reservoirs. These applications are illustrated with examples.
Fluid flow in petroleum reservoirs is introduced in Chapter 12 with the derivation of the continuity equation and the radial diffusivity equation. In Chapter 12, the fundamental equations that form the bases for pressure transient analysis (PTA) by straightline methods are developed and applied later in Chapter 13. The use of type curves in well test analysis, especially Gringarten and Bourdet type curves, are presented in Chapter 14 with emphasis on procedures for type-curve matching. Well test analysis methods for hydraulically fractured wells and naturally fractured conventional reservoirs are presented in Chapter 15. Deconvolution concepts for well test analysis are covered in Chapter 16. This is followed with the presentation of well test analysis in unconventional reservoirs in Chapter 17 based mainly on diagnostic fracture injection tests (DFIT). Note that many characteristic behaviors of fracture flow are applicable to both conventional and unconventional reservoirs.
Basic concepts in immiscible fluid displacement are discussed in Chapter 18. These include derivations of the fractional flow equation, the Buckley-Leverett equation, and the Welge method. This is followed with the introduction of secondary recovery methods in Chapter 19 focused mainly on waterflooding and gasflooding.
Low salinity waterflooding is presented in Chapter 20 as an improved oil recovery method distinct from secondary recovery methods of Chapter 19 or enhanced oil recovery methods presented in Chapter 21. This definition of low salinity waterflooding is solely at the discretion of this author since it can be categorized as a secondary recovery method or an enhanced oil recovery method depending on any particular perspective. Either categorization is completely acceptable to the author.
Enhanced oil recovery methods are discussed in Chapter 21. In the chapter, special emphasis is placed on screening criteria and field implementation of enhanced oil recovery processes because many engineers should expect to be involved in such activities someday in their careers.
Chapters 18 to 21 are designed to introduce practicing engineers to fundamental methodologies for application of secondary, improved, and enhanced oil recovery processes, and also to develop practical procedures for field implementation of these processes.
Geologic modeling and reservoir characterization methods and procedures are presented in Chapter 22. This is followed with concepts in reservoir simulation in Chapter 23. In both chapters, the focus was on presenting methods and procedures for applying these tools on the practical aspects of building reservoir models rather than on theory.
The principles of reservoir management that I first enunciated in 2003 are presented in Chapter 24. These principles of reservoir management were developed from my experience from managing various types of reservoirs around the world. The principles are simple and practical and can be applied to any reservoir anywhere in the world. The application of the five principles of reservoir management are illustrated with case histories in Chapter 24.
Economic evaluation is key to the success of any petroleum project. Every project in the petroleum industry must be shown to be economic and profitable before it can be sanctioned and implemented. Chapter 25 presents fundamental criteria that can be used to judge the economic profitability of most projects. The chapter also discusses concepts, contracts, and economic models used in many petroleum operations involving host countries and international oil companies.
This book could not have been written without the support of my wife and children who endured long hours of my seclusion over many years to work on material for the book. I am very grateful for their patience and understanding. I give special thanks to my wife, Anulika, and my children (Nkemdirim, Chukwuemeka, Chioma, Ifeoma, Obinna, and Ezenwanyi). The odyssey of writing this book made my love for them much stronger.
Acknowledgments
The author is grateful to the Society of Petroleum Engineers for permissions to reprint the following tables and figures published in this book:
Chapter 2
Figure 2.1
Al-Ruwaili, S.A., and Al-Waheed, H.H.: Improved Petrophysical Methods and Techniques for Shaly Sands Evaluation,
paper SPE 89735 presented at the 2004 SPE International Petroleum Conference in Puebla, Mexico (November 8–9, 2004).
Chapter 4
Figure 4.4
Worthington, P.F., and Cosentino, L.: The Role of Cutoffs in Integrated Reservoir Studies,
SPEREE (August 2005) 276–290.
Chapter 5
Figures 5.9, 5.10
Sutton, R.P.: Compressibility Factors for High-Molecular-Weight Reservoir Gases,
paper SPE 14265 presented at the 60th Annual Technical Conference and Exhibition, Las Vegas, Nevada, (September 22–25, 1985).
Figures 5.11, 5.12
Mattar, L., Brar, G.S., and Aziz, K.: Compressibility of Natural Gases,
J. Cdn. Pet. Tech. (Oct–Dec. 1975) 77–80.
Chapter 6
Figure 6.1
Moffatt, B.J., and Williams, J.M.: Identifying and Meeting the Key Needs for Reservoir Fluid Properties – A Multi-Disciplinary Approach,
paper SPE 49067 presented at the 1998 SPE Annual Technical Conference and Exhibition, New Orleans, Louisiana, (September 27–30, 1998).
Figures 6.4, 6.5, 6.6, 6.7, 6.9
Elshahawi, H., Samir, M., and Fathy, K.: Correcting for Wettability and Capillary Pressure Effects on Formation Tester Measurements,
paper SPE 63075 presented at the 2000 SPE Annual Technical Conference and Exhibition, Dallas, Texas, (October 1–4, 2000).
Chapter 7
Tables 7.1, 7.2
Jhaveri, B.S., and Youngren, G.K.: Three-Parameter Modification of the Peng-Robinson Equation of State to Improve Volumetric Predictions,
SPERE (August 1988) 1033–1040.
Figures 7.1, 7.2
Wang, P., and Pope, G.A.: Proper Use of Equations of State for Compositional Reservoir Simulation,
SPE 69071, Distinguished Author Series, (July 2001) 74–81.
Chapter 9
Figure 9.4
Havlena, D., and Odeh, A.S.: The Material Balance as an Equation of a Straight Line,
JPT (August 1963) 896–900.
Figure 9.11
Hammerlindl, D.J.: Predicting Gas Reserves in Abnormally Pressured Reservoirs,
paper SPE 3479 presented at the 1971 SPE Fall Meeting, New Orleans, (October 3–5, 1971).
Chapter 10
Figures 10.1, 10.4, 10.5
Havlena, D., and Odeh, A.S.: The Material Balance as an Equation of a Straight Line,
JPT (August 1963) 896–900.
Chapter 11
Figure 11.1
Chen, H., and Teufel, L.W.: A New Rate-Time Type Curve for Analysis of Tight-Gas Linear and Radial Flow
, paper SPE 63094 presented at the 2000 SPE Annual Technical Conference and Exhibition, Dallas, Texas, (October 1–4 2000).
Chapter 12
Appendices 12B, 12C, 12D, 12E, 12F
van Everdingen, A.F., and Hurst, W.: The Application of the Laplace Transformation to Flow Problems in Reservoirs,
Trans., AIME (1949) 186, 305–324.
Chapter 13
Table 13.2
Tiab, D., Ispas, I.N., Mongi, A., and Berkat, A.: Interpretation of Multirate Tests by the Pressure Derivative- 1. Oil Reservoirs,
paper SPE 53935 presented at the 1999 SPE Latin American and Caribbean Petroleum Engineering Conference, Caracas, Venezuela, (April 21–23, 1999).
Chapter 14
Figure 14.1
Agarwal, R.G., Al-Hussainy, R., and Ramey, H.J., Jr.: An Investigation of Wellbore Storage and Skin Effect in Unsteady Liquid Flow: I. Analytical Treatment,
SPEJ (September 1970) 279–290.
Figure 14.2
Gringarten, A.C., Bourdet, D.P., Landel, P.A., and Kniazeff, V.J.: A Comparison Between Different Skin and Wellbore Storage Type-Curves for Early-Time Transient Analysis,
paper SPE 8205 presented at the SPE Annual Technical Conference and Exhibition, Las Vegas, Nevada, (September 23–26, 1979).
Chapter 15
Figures 15.1, 15.3, 15.4, 15.5, 15.6, 15.7
Cinco-Ley, H., and Samaniego-V, F.: Transient Pressure Analysis for Fractured Wells,
JPT, (September 1981) 1749–1766.
Figures 15.8, 15.9, 15.11
Cinco-Ley, H.: Evaluation of Hydraulic Fracturing By Transient Pressure Analysis Methods,
paper SPE 10043 presented at the International Petroleum Exhibition and Technical Symposium, Beijing, China, (March 18–26, 1982).
Figure 15.10
Cinco-L, H., Samaniego-V, F., and Dominguez-A, N.: Transient Pressure Behavior for a Well With a Finite-Conductivity Vertical Fracture,
SPEJ (August 1978) 253–264.
Figures 15.16, 15.17a, 15.17b, 15.18, 15.19a, 15.19b, 15.20, 15.21, 15.22, 15.23, 15.24, 15.25
Cinco-Ley, H.: Well-Test Analysis for Naturally Fractured Reservoirs," JPT (January 1996) 51–54.
Figure 15.26
Warren, J.E., and Root, P.J.: The Behavior of Naturally Fractured Reservoirs,
SPEJ (September 1963) 245–255.
Figure 15.27
Serra, K., Reynolds, A.C., and Raghavan, R.: New Pressure Transient Analysis Methods for Naturally Fractured Reservoirs,
JPT (December 1983) 2271–2283.
Figure 15.32, 15.33, 15.34
Gringarten, A.C.: Interpretation of Tests in Fissured and Multilayered Reservoirs with Double-Porosity Behavior: Theory and Practice,
JPT (April 1984) 549–564.
Chapter 16
Figures 16.1, 16.2, 16.3, 16.4, 16.5, 16.6, 16.7, 16.8
Levitan, M.M., Crawford, G.E., and Hardwick, A.: Practical Considerations for Pressure-Rate Deconvolution of Well-Test Data,
SPEJ (March 2006) 35–46.
Chapter 17
Figures 17.4, 17.5
Barree, R.D., Miskimins, J.L., and Gilbert, J.V.: Diagnostic Fracture Injection Tests: Common Mistakes, Misfires, and Misdiagnoses
, SPE Production & Operations (May 2015) 84–98; SPE 169539–PA.
Chapter 23
Figures 23.2, 23.7, 23.9, 23.10
Aziz, K.: Reservoir Simulation Grids: Opportunities and Problems,
JPT (July 1993) 658–663.
Chapter 24
Figures 24.16, 24.17, 24.18, 24.21, 24.22
Salamy, S.P., Al-Mubarak, H.K., Ghamdi, M.S., and Hembling, D.: Maximum-Reservoir-Contact-Wells Performance Update: Shaybah Field, Saudi Arabia,
SPE Production & Operation (November 2008) 439–443.
Figures 24.19, 24.20
Saleri, N.G., Salamy, S.P., Mubarak, H.K., Sadler, R.K., Dossary, A.S., and Muraikhi, A.J.: Shaybah-220: A Maximum-Reservoir-Contact (MRC) Well and its Implications for Developing Tight-Facies Reservoirs,
SPEREE (August 2004) 316–321.
Chapter 25
Figures 25.1
Society of Petroleum Engineers (SPE)-Petroleum Resources Management Systems (PRMS)- 2018 Update
Figures 25.13, 25.14
Feng, Zhuo, Shui-Bo Zhang, and Ying Gao: On Oil Investment and Production: A Comparison of Production Sharing Contracts and Buyback Contracts.
Energy Economics 42 (2014): 395–NE402.
About the Author
Dr. Nnaemeka Ezekwe is a world renowned reservoir engineer who has practiced in all the major oil producing regions in Africa, Asia, Europe, Middle East, North America, and South America. This vast experience on various types of reservoirs was applied in crafting this book as a guide for practicing engineers or a textbook for college students. Dr. Ezekwe worked for sixteen years in key supervisory and managerial roles for Bechtel Petroleum Operations. In 1998, he joined Pennzoil Exploration and Production Company as a senior petroleum engineer advisor responsible for providing technical guidance on domestic projects in the Permian Basin and Gulf of Mexico, and also on international projects in the Caspian Sea, Egypt, Equatorial Guinea, and Venezuela. In 2000, as a senior reservoir engineer advisor at Devon Energy Corporation, he led pioneering analyses on the appraisal and development of several major Lower Tertiary deepwater reservoirs in the Gulf of Mexico. He also led appraisal and development of pre-salt reservoirs in the Campos and Santos Basins in Brazil, and deepwater reservoirs in Angola. Dr. Ezekwe is the author of Petroleum Reservoir Engineering Practice, a best-selling book on reservoir engineering published by Prentice Hall in 2010. In 2011, he joined BP America as EOR Deployment Manager responsible for implementation of low salinity waterflooding for improved oil recovery on all BP reservoirs worldwide. In 2015, he was contracted by Petrobras Oil & Gas B.V. as a reservoir engineer expert to provide technical guidance on appraisal and development of all petroleum assets in Africa including producing deepwater reservoirs in West Africa. In 2017, Dr. Ezekwe founded TIGA Petroleum, Inc., as a reservoir engineering consulting firm based in Houston, Texas. He holds BS, MS, and PhD degrees in chemical and petroleum engineering, and an MBA degree, all from the University of Kansas. He has published many technical papers in chemical and petroleum engineering journals. Dr. Ezekwe served twice as an SPE Distinguished Lecturer in 2004 and in 2012. In this role, he lectured on reservoir management strategies and intelligent well/field technologies in more than 100 countries around the world. He was elected SPE Distinguished Member in 2013. Dr. Ezekwe is a registered professional engineer in California and Texas, USA.
CHAPTER
1
Conventional and Unconventional Reservoirs
The technologies applied on reservoirs to produce oil and gas are being revolutionized due to successes achieved with recovering large quantities of hydrocarbons from reservoirs classified as unconventional. Consequently, the knowledge gained on reservoir characteristics, behaviors, and performances since the first oil well was drilled near Titusville, Pennsylvania, United States of America (USA) in 1859, has undergone considerable revisions because those earlier reservoirs are now classified as conventional. This book starts with classifying reservoirs into two broad categories termed conventional and unconventional. This classification, based initially on rock properties, should not be considered strict boundaries. There are some overlaps between conventional and unconventional reservoirs classified on the basis of rock/fluid properties, drilling and completion practices, and reservoir productivity. The objective of classifying reservoirs into conventional and unconventional categories is to provide a rough guideline based primarily on basic rock properties that could be used to distinguish between these reservoirs. Generally, conventional reservoirs relatively have higher matrix permeabilities and porosities while unconventional reservoirs have lower matrix permeabilities and porosities. Conventional reservoirs may or may not have natural fractures. Most unconventional reservoirs have natural fractures that are critical for them to produce fluids at commercial rates. This is a generalized rule-of-thumb kind of classification. More detailed basis for classifying conventional and unconventional reservoirs is presented in this chapter.
The most direct way to compare conventional and unconventional reservoirs is through the use of the Resource Triangle¹ shown in Figure 1.1. As shown in the Resource Triangle, conventional reservoirs occupy areas around the apex of the triangle. They are harder to find, relatively smaller in volume, easier to produce, have higher permeabilities, require less technology, and less development costs to achieve commercial production. The unconventional reservoirs are located in areas from the middle to the base of the triangle. They are generally on the opposite side of the earlier characterizations of conventional reservoirs. Specifically, unconventional reservoirs are easier to find (occur in extensive basins), larger in volume, harder to produce, have lower permeabilities, require more technology, and more development costs to achieve commercial production.
Further differences between conventional and unconventional reservoirs in terms of rock properties are shown in Table 1.1. In this table, conventional reservoirs, which could be composed of sandstones, limestones, and dolomites, generally have permeabilities that are greater than 0.1 millidarcy (md), and pore throat diameters that are greater than 1 μm. Unconventional reservoirs, represented by tight sands, silts, and shales, generally have permeabilities that are less than 0.1 md [typically in the micro-darcy (μd) and nano-darcy (nd) range], and pore throat sizes that range from 0.1 μm to 10-3 μm. The larger pore throat diameters for conventional reservoirs represent higher matrix porosities whereas the smaller pore throat diameters for unconventional reservoirs indicate lower matrix porosities. Some conventional reservoirs have natural fractures whereas most unconventional reservoirs (tight sands and shales) have natural fractures. It is important to note that the natural matrix fractures in unconventional reservoirs help to transport fluids to the induced fractures created by hydraulic fracturing of wells. This enhances the producibility of unconventional reservoirs in spite of the extremely low matrix permeabilities shown in Table 1.1.
FIGURE 1.1 Resources Triangle (Adapted from Holditch¹)
The main sources of oil and gas produced around the world have been from conventional reservoirs for over 160 years since the first oil well was drilled near Titusville, Pennsylvania, United States of America (USA) in 1859. Conventional reservoirs were developed primarily with vertical wells and then later with horizontal wells and multilateral wells as drilling technologies were improved and advanced. A high majority of conventional reservoirs did not require special completion technologies such as multistage hydraulic fracturing to achieve commercial productivity because they have high matrix permeabilities. Some conventional reservoirs were hydraulically fractured to improve productivity, but it was not a critical requirement for the wells to produce at commercial rates. Rock and fluid properties of conventional reservoirs were measured in laboratories using specified, verifiable procedures because over many years the petroleum industry had documented reports on the expected ranges of these properties. Analytical tools such as material balance analyses (Chapter 8), volumetric calculations (Chapters 9 and 10), Darcy-based flow equations (Chapter 12), pressure transient analyses (Chapters 13 and 14), analytical models (Chapter 18), numerical models (Chapter 23), etc., were developed for conventional reservoirs. The focus on conventional reservoirs started to change around 2005 as the magnitude of potential resources existing in unconventional reservoirs slowly began to unfold in the petroleum industry, especially in the United States of America.
The global map of giant oil and gas fields is shown in Figure 1.2. Most of the giant fields contain conventional reservoirs. As reported in BP (British Petroleum) Statistical Review of World Energy³ in 2017, the proved oil reserves in the world at the end of 2016 were 1707 billion barrels (Table 1.2). About 48% of the proved oil reserves were in the Middle East. Most of these proved oil reserves were in conventional reservoirs. Figure 1.3 shows the growth of proved oil reserves in the world from 1996 to 2016. Note that proved oil reserves in the world grew by 318.4 billion barrels in 10 years. The proved gas reserves in the world at the end of 2016 were 6589 trillion cubic feet (tcf) as shown in Table 1.3. About 43% of the proved gas reserves were in the Middle East and existed mainly in conventional reservoirs. The distribution of proved gas reserves in the world from 1996 to 2016 is shown in Figure 1.4.
In the BP Statistical Review of World Energy,³ Reserves-to-Production (R/P) ratio was calculated by dividing the remaining proved reserves at the end of the year by the production for that year. The result, which was represented as the R/P ratio, was the length of time that the remaining reserves would last if production was continued at that rate into the future. For instance, the remaining total world proved oil reserves at the end of 2016 were 1706.8 billion barrels (Table 1.2). As reported in the BP Statistical Review of World Energy, total world oil production rate in 2016 was 92.15 million barrels per day. The oil R/P ratio for the world at the end of 2016 was 50.7 years. This means that it will take the world 50.7 years to produce the proved oil reserves remaining at the end of 2016 if production were maintained at 92 million barrels per day. Similarly, the total world remaining gas reserves at the end of 2016 were 6588.8 Tcf (Table 1.3). The total world gas production in 2016 was 125.4 Tcf. These numbers gave a gas R/P ratio of 52.5 years. As explained previously, this means that it will take 52.5 years to produce proved gas reserves remaining at the end of 2016 at the 2016 annual gas production rate. In these estimations, it was assumed that all produced oil and gas volumes would be consumed. Since these estimates are based only on proved reserves and does not include unproved or other contingent resources, it is evident that conventional reservoirs would continue to play important roles in the world energy supply for the foreseeable future.
Oil, gas, and coal are the main sources of energy for the world.⁴,⁵ In 2035, 75% of the total energy supply for the world would come from oil, gas, and coal. Out of these three fuels, gas is the fastest growing source of primary energy and will surpass coal by 2035 (Figures 1.5 and 1.6). With the growth of gas as the primary source of energy, the world would rely more on conventional and unconventional reservoirs for the supply of gas. This observation would be discussed further after the potential gas resources recoverable from unconventional reservoirs is presented later in the chapter.
FIGURE 1.2 Map of giant oil and gas fields in the world²
Distribution of Proved Reserves in 1996, 2006 and 2016
Percentage
FIGURE 1.3 World proved oil reserves³
Distribution of Proved Reserves in 1996, 2006 and 2016
Percentage
FIGURE 1.4 World proved gas reserves³
*Renewables includes wind, solar, geothermal, biomass, and biofuels
FIGURE 1.5 Primary energy consumption in the world⁴
World Energy Consumption by Energy Source
Quadrillion Btu
FIGURE 1.6 World energy consumption by energy source⁵
Most reservoirs that exhibit characteristics and behaviors that are different from the hitherto familiar conventional reservoirs are grouped under the term unconventional reservoirs. These reservoirs are considered to be unconventional because they exhibit or possess most of the following characteristics:
1.Low permeability—less than 0.1 md.
2.Low matrix porosity—less than 10%.
3.Require extensive stimulation such as hydraulic fracturing to produce at commercial and economic rates.
4.Require advanced technologies that may include horizontal drilling and microseismic monitoring to improve production and operational efficiencies.
5.The reservoirs may be the source rocks or are close to the source rocks. Unlike conventional reservoirs, a seal or trap may not be present.
6.The reservoirs may not have definable hydrocarbon/water contacts.
7.Sweet spots
with improved productivity may exist. A sweet spot
represents concurrence of favorable rock properties (geochemical, geomechanical, and geological) that promote accumulation and producibility of hydrocarbons. In unconventional reservoirs, sweet spots
are generally isolated and not contiguous.
8.Abnormal reservoir pressures (higher or lower than hydrostatic) are prevalent.
9.Hydrocarbons-in-place are generally large and hard to define and quantify. Recoveries are generally lower in comparison to conventional reservoirs.
10.More wells may be required to develop unconventional reservoirs because the estimated ultimate recovery (EUR) per well is lower compared to conventional reservoirs.
11.Transient (unsteady state) flow in unconventional reservoirs may last for months or even years due to low matrix permeabilities in comparison to conventional reservoirs where transient flows may last for hours or several days but rarely longer than a month.
12.Free, desorbed hydrocarbons may be interacting under forces that are not in accordance with hydrodynamics.
13.Oil and gas wells show steep decline rates within the first 1 or 2 years of production.
14.Initial production (IP) from wells in unconventional reservoirs is generally less than the IP of wells in conventional reservoirs.
15.A dewatering phase may be encountered within IP phase as observed in coalbed methane (CBM) wells.
On the basis of these characteristics, certain reservoir-types are classified as unconventional. Note that other reservoir-types can be considered to be unconventional (such as Heavy oil and/or Natural Bitumen, Gas hydrates, etc.) depending on the criteria used in the definition. The reservoir-types that are discussed in this book under the unconventional term are grouped as follows:
1.Tight gas/oil
2.Shale gas/oil
3.Coalbed methane
Tight gas and oil reservoirs are described geologically as consisting of fine-grained rock particles composed of siltstones, sandstones, and carbonates. They can be fluvial, laterally discontinuous, or blanket deposits. The formations may be stacked, lenticular, or both. The reservoirs can have high or low pressures and exist in high or low temperature environments. A major distinction between tight and shale reservoirs is that the hydrocarbons found in tight reservoirs were sourced from another formation (likely shale formations) then migrated and became trapped in the tight formations. Most of the characteristics enumerated earlier for unconventional reservoirs apply to tight oil and gas reservoirs. Note that in many books, reports, and technical papers, shale oil and gas reservoirs are classified as tight oil and gas reservoirs because the characteristics and performance of both reservoir types overlap in many basins. Major tight oil reservoirs in the United States of America are found in the Bakken formation, Eagle Ford formation, Monterrey formation, Utica play, and the Niobarra formation, etc. (Figure 1.7).
FIGURE 1.7 Map of tight oil plays in the USA⁶
The major tight gas plays in the United States are Anadarko, Deep Bossier, Permian Basin, Appalachian Basin, Austin Chalk, etc. (Figure 1.8). Tight oil and gas resources exist in other basins around the world as shown in Figure 1.9 but are not yet developed commercially as in the United States of America.
Source: Energy Information Administration based on data from various published studies
Updated: June 6, 2010
FIGURE 1.8 Map of tight gas plays in the USA⁷
© World Energy Council 2016
Source: BP Statistical Review of World Energy, EIA, FERC, and Reuters
FIGURE 1.9 World map showing countries with tight oil and gas resources⁸
Shale gas and oil reservoirs are finely-grained, sedimentary rocks composed of silts, muds, and clays. Generally, shale reservoirs have low matrix permeability usually in the micro/nano-darcy range (Table 1.1). The matrix porosity is also low and, in most cases, less than 10%. The term shales is widely used in the petroleum industry to describe many rocks that are not typical sandstones or carbonates. Consequently, the variability of rocks described as shale changes from basin to basin and even within the same basin. Shale rocks have high total organic carbon (TOC). TOC is a measure of the amount of organic material available for conversion into hydrocarbons in the transformation processes that generate hydrocarbons. Most of the hydrocarbons that exist in conventional reservoirs were generated in shale formations and then migrated and became trapped in sandstone and carbonate formations. Shale reservoirs act as both the source, container, and the trap for the hydrocarbons that exist in them. Shale reservoirs manifest most of the characteristics of unconventional reservoirs enumerated earlier in this chapter. Hydrocarbon accumulations in shale formations can vary from dry gas to wet gas to condensate and then oil depending on the depth of the reservoir. These hydrocarbon phases exist in the Eagle Ford Shale in South Texas, USA. A map showing shale plays in the USA is presented in Figure 1.10. Figure 1.11 shows worldwide map of shale gas and shale oil basins.
Coalbed methane (CBM) or coal seam gas (CSG) is an unconventional source of natural gas consisting mostly of methane that is produced from coal beds and coal seams. Coal as a rock is both the source and reservoir for CBM. CBM is formed during the transformative processes that created the coal. Coal gas is adsorbed on the coal matrix and seams in large quantities, depending on the reservoir pressure of the coal beds. Additional gas is stored in fractures that may exist within the coal beds. Generally, coal matrix permeability is in the millidarcy range. Hence, hydraulic fracturing is generally required to produce the gas at commercial rates. The natural fractures in the coal beds are initially filled with water. This water must be produced during the dewatering phase
before higher gas production rates could be achieved (Figure 1.12). Vertical and/or horizontal wells have been used to produce coal gas (Figure 1.13). It has been estimated that the total gas-in-place in coal deposits worldwide could be as high as 11296 tcf mainly in Russia, China, and United States (Table 1.4). CBM is produced in commercial quantities in United States, China, India, and Australia. Figure 1.14 shows CBM-proved reserves and production in the United States from 1989 to 2016. The map of CBM fields and coal basins in the United States is shown in Figure 1.15.
FIGURE 1.10 Map of shale plays in the USA⁹
FIGURE 1.11 World map of shale oil and gas basins¹⁰
FIGURE 1.12 Typical CBM well production profile¹¹
FIGURE 1.13 Typical CBM well¹¹
FIGURE 1.14 CBM proved reserves and production in the USA from 1986 to 2016¹⁴
Coalbed Methane Fields, Lower 48 States
Source: Energy Information Administration based on data from USGS and various published studies. Updated april 8, 2009.
FIGURE 1.15 Coalbed methane (CBM) fields and coal basins in the USA¹⁴
The production of oil and gas from unconventional reservoirs has revolutionized the supply and mix of fossil energy in the United States of America (USA). Prior to 2000, production from unconventional reservoirs was virtually nonexistent in the country. But since the early 2000s, technological and operational successes achieved earlier in unconventional shale plays have been repeated across the country on unconventional tight oil/gas plays. As shown in Figure 1.16, projections by the U.S. Energy Information Administration (EIA) show that production from tight oil plays will continue to grow for many years in the future while production from conventional (non-tight) reservoirs will progressively decline over the same period. For example, the EIA¹⁶ projects that tight oil production will account for 65% of the cumulative oil production in the United States of America from 2017 to 2050. The growth in gas production from shale gas plays shows even a higher trend in Figure 1.16. The projected growths in oil and gas production are substantiated by the huge base of recoverable resources. A map of United States of America divided into supply regions by EIA is shown in Figure 1.17. The total technically recoverable crude oil resources by region as reported by EIA¹⁷ in April 2018 were 284.6 billion barrels (Bbbls) (Table 1.5). In Table 1.5, technically recoverable resources (TRR) was defined by EIA as the sum of proved reserves and unproved resources. Similarly, Table 1.6 shows the total technically recoverable dry natural gas resources as 2462.3 tcf. These estimates of TRR as reported by EIA showed that the United States of America has a strong base of resources to meet demand for many years in the future. The strong resource base was built-up in recent years (from 2008) by active appraisal and development of shale and tight basin plays. Table 1.7 is a summary of technical recoverable tight/shale resources by region as reported by EIA in April 2018. In the 2018 report, EIA stated that tight/shale resources accounted for 37% of the total U.S. technically recoverable crude oil resources and 50% of the technically recoverable natural gas resources. This observation underscores the importance of unconventional reservoirs in future supply of oil and gas in the United States of America.
Note: Shale gas production includes associated natural gas from tight oil plays.
Source: U.S. Energy Information Administration, Annual Energy Outlook 2018 Reference Case
FIGURE 1.16 Crude oil and dry gas production in the USA¹⁵
Source: U.S. Energy Information Administration
FIGURE 1.17 Map of USA by regions¹⁷
The EIA¹⁶ projected in 2018 that natural gas production accounted for the largest proportion of total energy production in the USA (Figure 1.18). Natural gas production will account for almost 39% of total USA energy production by 2050. Most of the growth in natural gas production will come from shale gas and tight oil plays as shown in Figure 1.16. The USA crude oil production in 2018 is projected to exceed 9.6 million BOPD and will level off between 11.5 and 11.9 million BOPD (Figure 1.16). Note that energy production from coal will initially decline and then level off from 2025 to 2050 (Figure 1.18). The fuel mix of energy consumption in the USA has changed as a direct result of abundant and cheap natural gas supply from unconventional reservoirs. Figure 1.19 shows that energy consumption from natural gas will grow the highest in comparison to other sources of energy. Again, note that energy consumption from coal will decline and then level off. As shown also in Figure 1.19, industrial and power sectors account for most of the growth in energy consumption supplied from natural gas.
FIGURE 1.18 Energy production in the USA¹⁶
FIGURE 1.19 Energy consumption by fuel and sector in the USA¹⁶
The United States of America has been a net importer of energy since 1953 according to EIA.¹⁶ It has been projected by EIA that USA will be net exporter of energy in early 2020s (Figure 1.20). This is attributed to increasing export of natural gas and liquefied natural gas (LNG) and decreasing import of crude oil. The USA transiting from an energy importer to an energy exporter is simply another major transformation created by the abundant energy supply from unconventional sources. As shown in Figure 1.16, growth in tight oil and shale gas production are sufficient to meet the energy consumption in the country with some excess left for export. This is the main lesson learned from the transformative change in energy supply created by production from unconventional shale and tight resources in the United States of America. This lesson is bound to spread soon to other parts of the world, leading to abundant energy supply in many countries.
FIGURE 1.20 Energy trade for USA¹⁶
The successes achieved in exploiting unconventional resources in the United States of America were led by independent oil companies. The successes achieved in the Barnett shale led to the development of the Fayetteville and Bakken formations. These in turn led to successes in the Woodford, Haynesville, Marcellus, Eagle Ford, Horn River, etc., formations.⁶ Most of the early successes were achieved with the exploitation of shale gas plays. Figure 1.10 shows a map of the shale gas plays in the United States of America. Production from shale plays (Marcellus and Utica) in the East region is projected to lead the growth in total USA shale gas production