UNCONVENTIONAL ESTIMATION OF OIL AND GAS RESERVES USING PRODUCTION RATES DECLINE TRENDS ANALYSIS

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UNCONVENTIONAL ESTIMATION OF OIL AND GAS RESERVES USING PRODUCTION RATES DECLINE TRENDS ANALYSIS

ABSTRACT

Unconventional (projectile and parabolic), methods have been used to estimate oil and gas reserves. Existing oil and gas data from wells in the Niger Delta geological formations (Agbada, Akata and Benin) were used to generate decline constants ‘b’ that were subsequently used in predicting yearly production data for any given period. The yearly data obtained were validated using the actual yearly production records of the original data source. The validated yearly data were used to generate evaluation curves. The evaluation models were subsequently worked out from the shape of the generated curves. The models were then used to estimate reserves (cumulative and initially in place) in each of the reservoirs. The values obtained compared favorably with the respective storage tank and the volumetric materials balance equations values. The percentage accuracy for gas fields ranged from 99.86% and above, while the percentage accuracy for oil ranged from 98.64% to 99.98%. The results of this research simplifies complex simulation methods, improves dynamic fluids computational analysis, reduces time in the conventional decline analysis and makes it easy to identify dominated flow and rates decline trends.  The models are very flexible and can be applied with high accuracy from the reservoir decline stage to abandonment. They are equally used to estimate the remaining reserves based on the time differences between final and production ( tf-t p) and for the establishment of production and economic decisions techniques.

 

TABLE OF CONTENTS

Title Page                                                                                                                             i

Certification                                                                                                                        ii

Dedication                                                                                                                           iii

Acknowledgments                                                                                                            iv

Abstract                                                                                                                                v

Contents                                                                                                                               vi

List of Tables                                                                                                                       viii

List of figures                                                                                                                      ix

Nomenclature                                                                                                                     xii

Chapter 1: Introduction                                                                                                   1

1.1        Background Information                                                                                    1

1.2       Problem        Statement                                                                                       5

1.3       Objectives                                                                                                               6

1.5         Justification of Study                                                                                          7

1.6        Scope of the Study                                                                                               7

Chapter 2: Literature Review                                                                                         8

2.1           General Field Records on Production Decline Rate                                 8

2.2          Simulated Production (Generic) Data                                                           9

2.3         Constant or Exponential Decline Rate                                                           10

2.4          Hyperbolic and Harmonic Decline Rate                                                        11

2.5         Values of Rate Decline Range                                                                          14

2.6          The Power Law Decline Rate Constant Method                                        15

2.7         Concept of Integral Type Curves                                                                      18

2.8          Fractional Hydrocarbons Decline Rate                                                           21

2.9           Fractional Decline exponent (n), Obtained Conventionally                   24

2.10 Natural Reservoirs Hydrocarbons Production Decline                                    26

2.11 Decline Rate correlation as a function of Time                                                 27

2.12 Well Production Performance                                                                               30

2.13 Relative Decline Rate                                                                                               31

2.14 Reviewed Evaluation and research Proposal                                                    38

Chapter 3: Methodology                                                                                                 39

3.1       Materials       for the research                                                                             39

3.2        Research Methodology                                                                                      39

3.3         Analysis Procedures                                                                                            43

3.31 Postulation of the Projectile Models                                                                   45

3.32 Postulation of the Parabolic Models                                                        53

3.33 Hydrocarbons Production Models

58

3.4          Cumulative Hydrocarbons Production Models                                          63

3.5           Hydrocarbons Initially in Place (G or N) Postulation                               68

3.6          Projected Hydrocarbons Production Models                                             76

3.61 Application of the Model Equations Using Regional Data                             76

3.62 Application of the Evaluation Models Using Generic Data                            80

Chapter 4: Results and Discussion                                                                                91

4.1       Results                                                                                                                     91

4.1.1 Evaluation Model – 1: The Projectile Gas and Oil Flow                                 91

4.1.2 Evaluation Model – 2: The Parabolic Fluid Flow Regime                              93

4.1.3 Cumulative Hydrocarbons Production Models                                                95

4.1.4 Projectile Model Equations Application Results                                              98

4.1.5 Model Equations Application Results Using Generic Data                           101

4.2       Discussion                                                                                                               112

4.2.1 Projectile Dominated Fluids Flow Regime                                                        112

4.2.2 Parabolic Fluid Flow Regime                                                                                 114

4.2.3 Cumulative Hydrocarbons Production Models                                                117

4.2.4 Parabolic Flow with no Observable Transient or Transition

118

4.2.5 Application of the Model Equations Using Generic Data                              119

Chapter 5: Conclusion and Recommendations                                                        121

5.1   Conclusion                                                                                                                   121

5.1.1 Contributions                                                                                                            123

5.2   Recommendations                                                                                                     125

References                                                                                                                            126

APPENDIX – A: Volumetric MBE for Models Validations                                             131

APPENDIX – B: Fields Evaluation and Development Models (FORTAN 77) 138

 

CHAPTER 1 INTRODUCTION

              1.1    Background information

Decline curve analysis are mathematical equations, tabulated values or graphical procedures for studying the oil and/or gas production rates, prediction of cumulative oil or projected oil production and estimating the oil or gas initially in place. A field production history is used in projecting future hydrocarbons production rates in a given time. The projected rates are plotted against time, used in the prediction of future production and the initial oil or gas reserves. In some cases standard curves are used for comparison. These standard curves were obtained using field data (called regional data). The curve fit is then extrapolated to predict oil or gas reserves. Decline curve is the basic tool for estimating the recoverable reserves. Conventionally, decline curves analyses are only possible when the production data or history is available, so that the trend can be defined. There are no fundamental theoretical trends for decline curves analyses, but the exercise is based on production data trend. For this the principal challenge is to minimize errors. All data must be understood before use. There are three principal types of decline rate as postulated by the early researcher. These are exponential or constant decline rate, harmonic decline rate and hyperbolic decline rate. This classification is based on constant or variable changes in the factors that influence the fluid flow in a porous medium. Crafts and Hawkins, (1959) stated these factors as follows:

  1. Constant well back pressure effects ii. Active water-drive influences iii.   Boundary conditions in a porous zone iv.         Historical observation of the data
  2. Single or multiple phase fluid flow vi. Combined oil and gas  flow as a stream

The equation of a fluid flow through porous media under boundary conditions is based principally on steady-state, semi-steady state and unsteady-state and are applied as deemed fit for any particular situations single or two phase fluid stream. Oil as a single stream can only be mobile if gas is dissolved in it and oil and water combined as a multiphase fluids stream with gas dissolved in the stream for mobility effect. Any stream can exhibit any type of decline rate. It depends on the influencing factors. The analysis can be conducted on only one fluid stream or a combined fluids stream gas oil ratio (GOR). The practical approach to oil or gas production decline rate analysis is to choose the variables such as gas or oil stream that results in a reasonable trend. The decline rate curves are used to predict the future well performances. The accuracy in predicting the future oil or gas stream performances depends on the ability to understand the reservoir characteristics and the standard established for estimating the reserves. In decline curve analysis it is implicitly assumed that factors causing the historical decline in a fluid stream would continue unchanged throughout the forecasting period. Crafts and Hawkins, (1959) field records showed that these factors are the reservoir and operating conditions.

a. Reservoir Characterization

  1. Reservoir drive mechanisms ii. Saturation and viscosity changes iii. Permeability and its distribution iv. Porosity and its distribution
  2. Volumetric mobility of the fluids vi. Formation grain sizes and arrangement

 

b. Operating Conditions

  1. Fluids flow mechanism ii. Pressure depletion trend iii. Decline rate trend iv. Tubing and choke sizes
  2. Number of producing wells vi. Separation pressure and its operating hours vii. Work-over jobs effects viii. Compressors operating hours
  3. Artificial lift effects

In analyzing rate of decline, two primary types were used. The flow rate was plotted against time to predict projection rates and the daily oil or gas production was plotted against time to estimate future cumulative production and reserves originally in place. The most convenient dependent variable is the rate, because extrapolation of the rate-time graph was used directly to forecast the fluid production and economic evaluations. Plots of rate against daily oil or gas production equally provided direct ultimate recovery at a given economic limit and yielded a more rigorous interpretation where the production was influenced by intermittent operations. In this case best rate decline trends analyses were compared with volumetric calculated values, MBE values and recovery factor values. The decline curves analysis results were the estimation tools for the cumulative hydrocarbons production and hydrocarbons initially in place which are fixed in nature. Field records by Crafts and Hawkins, (1959) showed that recoverable hydrocarbons are affected by the operating conditions, decline curves analyses are best applicable when the production stabilizes, because of boundary condition dominated flow rate. Most decline curves analysis states that evaluation starts with stabilized flow decline rate. Another school of thought states that decline curves analysis is based mainly on empirical observation of production rate decline and not on theoretical derivation. Any attempts to explain the observed behaviour using a theory of fluid flow in porous media would require the boundary dominated flow relationship. When a well is placed on production, there will be transient flow initially, because the boundary conditions are not active enough. Eventually the reservoir boundaries would be felt and it is only then that decline rate becomes clear and the value of the decline rate constant (b) lies between 0.0 and 1.0 or higher, depending on the reservoir boundary conditions and drive mechanism. Occasionally the decline rate has a value greater than unity. It is very useful to have production decline rate model in the Niger Delta and other fields in order to predict projected production rates and estimate both reserves in place and the recovery factor in a reservoir. This equally defines the production decline trend and the process that starts a transient state, peak and decline to minimum level or economic limit rate called abandonment rate. The decline models would enable a prediction of the recovery efficiency profile, gives the investors much knowledge of his business profile or trend.

 

1.2 Statement of the Problem

Many reserves are abandoned early, because of complex simulation procedures in order to establish motivated economic techniques. Conventionally, volumetric material balance equations (MBE) methods in use are limited to static conditions of the reservoirs and less accurate in the dynamic fluids computation analysis. Equally conventional decline analysis is less accurate, because most researchers assumed exponential or constant rates decline. In reality some reservoirs are not. In this work, mathematical equations or relationships are developed to increase DFCA accuracy and

discourage early or premature abandonment of reserves (ref: results in chapter 4).

 

              1.3    Objectives

The main objective of this study is to derive more accurate

mathematical rates decline relationship to predict oil and gas reserves. The specific objectives in order to achieve the above aim are:

  1. to validated the derived relationship for selected reservoirs, using storage tank records.
  2. to correct already existing relationships, using the validated relationships.
  3. to economically improve the methods for easy and correct

identification of production rate decline trends.

  1. to improve the evaluation models quality and results accuracy.

 

 

              1.4    Justification of Study

This research work is necessary to simplify the complex simulation procedures in the conventional methods for rate decline analysis. This would increase DFCA accuracy, reduce the simulation complexity and time used. The success of this work will give an investor the view of his business and it improves his decision on the business.

 

              1.5    Scope of the Study

This work primarily covers production decline rates characterization for some oil wells in the Niger Delta. The collated data covered the unsteady-stage (early-stage), steady-stage and semi steady-stage (decline-stage) of a reservoir. The complete production data to abandonment can be used for mathematical equations derivations and confirmation. The decline stages data covered the declined constant estimation and applications. The data in the short period production took care of the projected reserves recovery estimation and time required.

 

UNCONVENTIONAL ESTIMATION OF OIL AND GAS RESERVES USING PRODUCTION RATES DECLINE TRENDS ANALYSIS

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