Warming to Heavy Oil Prospects

Farrukh Akram In recent years, because of innovation aimed at exploiting unconventional resources,
Terry Stone
Abingdon, England oil and gas industry economists have substantially increased estimates of the world’s
remaining recoverable oil reserves. Now, operators are using those new technologies
William J. Bailey
Cambridge, Massachusetts, USA and others to exploit heavy oil sands and push peak oil even further into the future.

Euan Forbes
Calgary, Alberta, Canada
The world’s reserves of heavy oil are on par with bitumen are resistant to flow through reservoir
Michael A. Freeman
those of the largest conventional oil fields in the rock because of their high viscosities. Conse-
Houston, Texas, USA
Middle East and are located in more than 30 coun- quently, the energy expended to produce and
David H.-S. Law tries around the globe. Heavy oil reservoirs are upgrade a barrel of oil can be as high as 40% of the
Edmonton, Alberta expensive to drill and difficult to complete and total energy available from the heavy oil resource.1
require unique techniques to produce. Shallow, To overcome these challenges, engineers have
Glenn Woiceshyn unconsolidated oil sands present drillers with developed many technologies and recovery meth-
Absolute Completion Technologies wellbore stability and steering challenges. ods, including combinations of horizontal drill-
Calgary, Alberta Completions must be designed to withstand high- ing, chemical and water injection, artificial lift
temperature environments because many heavy and in situ heating. Operators in the oil sands of
K.C. Yeung oil production strategies require thermal recovery Western Canada are finding commercial success
Brion Energy methods. At ambient temperatures, heavy oil and producing extraheavy oil and bitumen through
Calgary, Alberta

Oilfield Review Summer 2014: 26, no. 2.

Copyright © 2014 Schlumberger.
For help in preparation of this article, thanks to Marty Shale
Chisholm, Calgary; Adrian Francis and Basim Abd Hameed
Moustafa, Houston; Joseph Hayes, Rosharon, Texas, USA;
and Herb Illfelder, Katy, Texas.
ECLIPSE, HotlineSA3, Merak, Petrel, RADAR,
ThermaSTONE, VISAGE and Vx are marks of Schlumberger. Steam chamber
FluxRite, MeshFlux and MeshRite are marks of Absolute Bitumen
Completion Technologies. and steam
condensate
Reservoir

SAGDRIL is a mark of M-I, L.L.C. Steam

flow zone
1. Heavy oil is defined as having 22.3 degree API or less.
Oils that are denser than water—those of 10 degree API
or less—are known as “extraheavy” when viscosity is Toe of
less than 10,000 cP [10,000 mPa.s] at reservoir conditions injection Native
and as bitumen when viscosity is greater than 10,000 cP. well bitumen
For more on heavy oil: Alboudwarej H, Felix J, Taylor S,
Badry R, Bremner C, Brough B, Skeates C, Baker A, Toe of
Palmer D, Pattison K, Beshry M, Krawchuk P, Brown G, production
Calvo R, Cañas Triana JA, Hathcock R, Koerner K, well
Hughes T, Kundu D, López de Cárdenas J and West C:
“Highlighting Heavy Oil,” Oilfield Review 18, no. 2 Shale
(Summer 2006): 34–53.
Viscosity is a measure of a fluid’s resistance to flow and > The steam chamber. To create a steam chamber in SAGD operations, the
is defined as the ratio of shear stress to shear rate. operator injects steam into a formation through a horizontal well. The steam
Density is the ratio of mass per unit volume. Although
density may vary slightly with temperature, viscosity
chamber grows around and above the injection well. At the edge of the
decreases rapidly in response to increasing temperature. steam chamber, heated bitumen and steam condensate flow under the
force of gravity to the production well. Ideally, the production well is located
parallel to and below the injection well and a few meters above the
formation bottom. (Adapted from Gates et al, reference 17.)

4 Oilfield Review
the process of steam-assisted gravity drainage
(SAGD). The SAGD method employs pairs of par-
allel, horizontal wellbores drilled one above the
other in the same vertical plane. During SAGD
operations, steam is pumped into the upper well- 10,000,000

bore and forced out into the formation to form a 1,000,000

steam-affected volume called a steam chamber. 100,000

As the steam chamber expands upward and
Viscosity, cP

10,000
laterally, the oil viscosity at the steam/oil front
1,000
decreases, and the oil becomes more mobile. The
mobile oil and condensed steam mixture flows by 100
gravity downward along the steam/oil boundary 10
to the lower, horizontal wellbore from which it
1
may be pumped to the surface (previous page).
0.1
Heat reduces fluid viscosity (right). However, 0 50 100 150 200 250 300 350 400
dispersing steam evenly throughout a formation Temperature, °C
is difficult, and such uneven dispersal often > Heavy oil viscosity versus temperature. For two heavy oil samples (blue
results in viscous fingering effects from oils of low and red) that were obtained from fields located in different parts of the
viscosities flowing faster in the formation than world, viscosity decreases as temperature increases.

Summer 2014 5
oils of higher viscosities; a significant volume of
oil may be left behind because of uneven steam
chamber development along the lengths of a
SAGD well pair.2 Therefore, production engineers
must manage the flow of formation fluids to the
production well, primarily through control of
steam injection. To do so, they must understand
the geologic and permeability heterogeneity of
the formation.
Presence of Shale Lenses
Caprock
Steam Steam
injection well
Production well
Presence of Thief Zones
Gas-bearing zone
Water-bearing zone
Thin Pay Zone
> Poor SAGD reservoir candidates. For an oil sand
to be successfully exploited using SAGD methods,
it must be free of shale barriers, or lenses (top),
which may impede steam chamber growth or
uniformity. The oil sand must also be free of thief
zones (center) that may impact thermal efficiency
or channel the steam chamber away from the
production well. And the oil sand must meet
minimum requirements of pay zone thickness
(bottom) to provide room for development of an
effective steam chamber.
6 Oilfield Review
This article looks at some of the tools and
methods employed by SAGD operators to opti-
mize production of heavy oil. The implementa-
tion of these innovations and their impact on
production of bitumen and extraheavy oil are
illustrated through case histories from Canada,
currently the only country in the world with com-
mercially successful SAGD projects.
Where to Drill
The economic success of most enhanced oil
recovery (EOR) projects depends on efficient dis-
placement of oil from the formation by another
injected fluid. In the case of SAGD, displacement
occurs at the expanding front of the steam cham-
ber, where steam heats the bitumen, thereby
increasing its mobility. The mobile oil and con-
densed steam then flow under the force of gravity
to the production well.3 A uniform steam cham-
ber can be maintained only when the oil in the
reservoir is initially relatively immobile, which
provides resistance to vertical steam fingering.
Reservoirs favorable for exploitation by SAGD
methods must meet certain minimum require-
ments (left). Ideally, SAGD candidate reservoirs
should be free of laterally extensive shale barri-
ers, which may prevent steam chamber growth or
uniformity. A SAGD reservoir should also have
minimal thief zones and have a pay thickness
greater than 15 m [50 ft] to provide sufficient
height for steam chamber growth. Additionally,
the formation must be sealed by an impermeable
top layer, or caprock. These criteria may be estab-
lished via typical oil and gas exploration tools
such as vertical pilot wells, logs, formation test-
ing, seismic data and cores.
Thief zones, in the form of a water leg below
the oil zone or gas above it, impact the effective-
ness of the steam chamber. The thermal effi-
ciency of the steam chamber may be compromised
by the gas leg thief zone, and heated mobile oil
may flow more readily to a water thief zone below
the formation than to the production wellbore.
An indispensable element of most gas and oil
zones is the presence of impermeable upper
boundaries that isolate hydrocarbon-bearing
intervals from surrounding formations. These bar-
riers trap hydrocarbons in place to create reser-
voirs. During production, the barriers ensure that
oil or gas flows or is swept to the production well
instead of migrating to neighboring formations.4
However, in SAGD wells, the caprock is
exposed to continuous steam injection that may
trigger complex thermal and hydraulic processes.
It is, therefore, imperative that engineers plan-
ning SAGD wells analyze the caprock to ascertain
if and how these processes might alter critical
rock parameters of in situ stresses, rock strength
or fracture systems. Engineers can then establish
maximum safe operating pressures to ensure any
effects on the caprock do not result in a contain-
ment breach.5
How to Drill
After an operator has deemed an oil sand forma-
tion to be a candidate for exploitation through
SAGD methods, engineers typically drill numer-
ous pairs—a producer and an injector—of hori-
zontal wells from a single pad. Each well has a
length of 1,400 to 1,600 m [4,600 to 5,200 ft] mea-
sured depth that includes about 800 to 1,200 m
[2,600 to 3,900 ft] of horizontal section in the pay
zone. Subject to operator specifications, produc-
tion wells are placed above and as close to the
base of the formation as possible, and the injec-
tion wells are placed parallel to and about 5 to 6 m
[16 to 20 ft] above the producers with no more
than 2-m [6-ft] offset from the vertical plane con-
taining the producer. Proper separation between
the horizontal sections of the two wells is critical
to ensure maximum recovery and efficiency. If
the two are too close together, the steam will, in
most cases, reach only the heel of the producer,
resulting in inefficient recovery, lost production
and poor asset economics. If the wells are too far
apart, production could be delayed by months
while a very large steam chamber is created.
A production well is drilled first using conven-
tional directional drilling and MWD tools. An
injection well is then drilled using conventional
directional tools until the two well paths begin to
converge. This typically occurs when the injector
and producer are about 10 m [33 ft] apart and the
injector is within 120 to 150 m [390 to 490 ft] of
landing in the pay zone. This proximity of the
injection well to the casing of the production well
causes magnetic interference that renders con-
ventional, magnetic-based MWD tools inaccurate.
Determining the position of one well relative to
another well using magnetic measurements is
called magnetic ranging; this method is commonly
used for drilling planned well intersections such as
those used for relief wells (next page, top right).6
At the point of magnetic interference, drillers may
turn to active ranging, in which a magnetic source
is conveyed in the producer by coiled tubing or a
wireline tractor. When the MWD tool sensor pack-
age is nearly perpendicular to the magnetic
source, the latter is activated, and the resulting
measurements taken by the MWD sensors allow
technicians to calculate the spatial relationship
between the two wellbores. Once the injection
well position has been determined, the source is
conveyed down the production well to the next
predetermined depth, the injection well is drilled
0°
ahead and the scenario repeated. 10

As an alternative to the active magnetic

source method, engineers may use premagne-
tized casing in the first well as a passive magnetic Toolface
source (below right). Drillers then do not require to target
168.85°
access to both wells simultaneously and do not
Distance
need a tractor or coiled tubing to move the 5.11 m
source. Additionally, engineers are able to use Right side
standard directional drilling methods while –0.99 m
Production well

Distance, m
obtaining a nearly definitive, real-time survey High side
during drilling.7 0 270° 90° 5.01 m

Schlumberger has developed the RADAR real- MD

time analysis of drilling and advanced ranging
service to help operators accurately determine
the relative position of two wells. The RADAR ser-
vice is a suite of software programs that may be
used to drill a second well parallel to and 5 to 6 m
above an existing horizontal wellbore with a pre-
cision of about 1 m [3 ft] over a length of 1 km
[0.6 mi]. Among other applications, the RADAR
service allows drillers to determine azimuth
changes in magnetically challenging regions
using gravity MWD tools, which are designed for
use when magnetic interference prevents the use
of a conventional MWD tool.
The nature of heavy oil sands causes other
drilling problems. The bitumen and sand of the
formation stick to the bottomhole assembly, gen-
erating increased drillstring torque. Additionally,
when the bitumen reaches the surface, it often
2. For more on viscous fingering: Homsy GM: “Viscous
Fingering in Porous Media,” Annual Review of Fluid
Mechanics 19 (January 1987): 271–311.
3. Mobility is the ratio of permeability to dynamic viscosity
and a measure of how easily a fluid can move through
the formation. Because mobility is inversely proportional
to viscosity, it improves as viscosity decreases in
response to increasing temperature.
4. For more on faults and sealing: Cerveny K, Davies R,
Dudley G, Fox R, Kaufman P, Knipe R and Krantz B:
“Reducing Uncertainty with Fault-Seal Analysis,”
Oilfield Review 16, no. 4 (Winter 2004/2005): 38–51.
1,221.22 m
TVD
477.04 m
Inclination
90.00°
Azimuth
211.45°
10
180°
> Relative wellbore separation measurements. The proximity of the injection and production wellbores is
critical to SAGD success and is measured as a relative separation between the two along their horizontal
sections. This relationship is typically presented as a bull’s-eye with a target box (red). The production
well, already drilled, lies at the center of the bull’s-eye, and the relative position of the injection well being
drilled is displayed as a series of dots (blue) in the box, which represent survey points. In this display, the
most recent survey point is represented by a green dot. Measurements include the following: toolface to
target—the angle from injector to producer measured clockwise from the injector; distance—radial
distance between wells; right side—the lateral displacement of the injection well relative to the
production well measured from the vertical plane of the production well; and high side—vertical
displacement of the injection well relative to the production well measured from the horizontal plane of
the production well. The sensor measurement is taken at the measured depth (MD), and TVD is the true
vertical depth of the injection well path at the measurement point. Inclination and azimuth of the injection
well path are also taken at the measurement point.
Distance from the wellbore

5. Khan S, Han H, Ansari S and Khosravi N: “Geomechanical

Modeling to Assess Caprock Integrity in Oil Sands,”
presented at the Canadian Society of Petroleum
Geologists, the Canadian Society of Exploration
Geologists and the Canadian Well Logging Society Joint
Annual Convention, Calgary, May 9–12, 2011.
6. Grills TL: “Magnetic Ranging Technologies for Drilling
Steam Assisted Gravity Drainage Well Pairs and Unique
Well Geometries—A Comparison of Technologies,” paper
SPE/Petroleum Society of CIM/CHOA 79005, presented at
the SPE International Thermal Operations and Heavy Oil
Symposium and International Horizontal Well Technology
Conference, Calgary, November 4–7, 2002.
Illfelder H, Forbes E, McElhinney G, Rennie A, Wellbore
Schaepsmeyer H and Krawchuk A: “A Systematic Casing surface
Approach for Wellbore Drilling and Placement of SAGD
Well Pairs and Infill Wells,” WHOC paper 11-503,
> Premagnetized casing pattern. Manufacturers premagnetize production well casing in a specific
presented at the World Heavy Oil Congress, Edmonton, pattern to maximize the extruded magnetic field. A series of opposing poles direct the magnetization
Alberta, Canada, March 14–17, 2011. away from the casing and increase the distance over which accurate ranging is possible. The
7. Rennie A, McElhinney G, Illfelder H, Ceh L, magnetic gaussing effect, or pattern, indicates flux direction (black lines), and flux intensity is
Schaepsmeyer H and Krawchuk A: “A Case Study of a indicated by color, ranging from most intense (magenta) to least (aqua). The amount of magnetization
New Technique for Drilling SAGD Twin Wells in Heavy
Oil Reservoirs,” WHOC paper 2008-395, presented at
that can be imparted to the casing is a function of the amount of metal in the casing. The amount of
the World Heavy Oil Congress, Edmonton, Alberta, magnetization imparted to the casing and the design of the magnetic pattern control the distance over
March 10–12, 2008. which ranging can be reliably performed. (Adapted from Rennie et al, reference 7.)

Summer 2014 7
 in volume, because of the increased pore volume
3 MPa 6 MPa
of steam and thermal expansion of the steam
Caprock chamber contents.
As the steam chamber is confined along its
sides, most of the dilation manifests itself as
uplift of the overburden. Uplifting the overbur-
Steam chamber
den stretches, or extends, the caprock laterally.
Above the steam injector, lateral extension works
Change in minimum horizontal stress Effective minimum horizontal stress against the horizontal principal compressive
stresses. If, as a result, the minimum horizontal
– 0 + – 0 +
principal stress becomes tensile, the caprock will
fracture in tension. Toward the sides of the steam
3 MPa 6 MPa chamber, lateral extension pushes outward and
induces shearing stresses, which, if they exceed
Caprock failure
the shear strength, will cause shear fractures.
These fractures become avenues of enhanced
permeability that carry pressure and mobile fluid
away from the steam chamber.10
Of overarching concern to SAGD operations is
preservation of the caprock, which is exposed to
Change in vertical stress Shear failure index many steam cycles throughout the life of the proj-
– 0 + No failure 0 Failure
ect. To establish the integrity of the caprock and
> Modeling the potential for caprock failure. Researchers employed a coupled reservoir simulator– estimate its response to cyclic heating in the
geomechanical model to predict the effects of steam pressure on caprock integrity after three years of Athabasca oil sands area in Alberta, Canada, engi-
continuous steam injection at a rate of 200 m3/d [7 Mcf/d] and pressure of 3 MPa [435 psi]. The steam neers constructed geomechanical models from
chamber was constrained to dilate primarily upward; adding heat induced horizontal tension (blue) in sonic log data, image logs, minifrac tests, forma-
the reservoir above the chamber (top left) and vertical tension (blue) near the sides of the chamber tion pressure sensor measurements and core
(bottom left). Inside the steam chamber, the edges experienced added compression (yellow to red).
This stress contrast can induce shearing stresses; however, in both cases, the caprock remained analyses. These models allow analysts to estimate
intact. To determine the maximum safe operating pressure, researchers increased the injection the induced stresses and changes in rock strength
pressure to 6 MPa [870 psi], which is below the 7.35-MPa [1,070-psi] fracture pressure. After three resulting from steam injection and to predict
years, the effective minimum horizontal compressive stress (top right) had not reached zero (red); red
shear and tensile failure of the rock (left).
would indicate caprock failure in tension. On the other hand, the shear failure index (bottom right)
indicated the caprock was close to failing (red) in shear. Researchers analyzed various injection sce-
narios and used the ECLIPSE reservoir simulator
to model changes in temperature (ΔT) and pres-
clogs the shaker screens of the mud treatment casing. Additionally, the cement must not sure (Δ P). The corresponding changes in stress,
equipment, and if the sand and bitumen sepa- degrade when exposed to these high tempera- strain, porosity (Δφ) and permeability (Δk) were
rate, the sand may build beds that block flow in tures for extended lengths of time.9 computed using the VISAGE 3D finite-element
the return line. Solvents in the mud system can ThermaSTONE thermally responsive cement geomechanics simulation software. The values of
dissolve the bitumen, but they may also cause is specifically designed for heavy oil and geother- Δφ and Δ k were then fed back to the reservoir
unacceptable wellbore washouts.8 mal applications. It sets at low temperatures, simulation model, which computed new Δ T and
In response to these problems, researchers at withstands high temperatures and features high Δ P values. The new in situ stresses and stress
M-I SWACO, a Schlumberger company, developed flexibility, thermal stability and a high coefficient paths—the ratio of the change in horizontal
the SAGDRIL water-base drilling fluid. The sys- of thermal expansion. The cement can expand up stress to the change in pore pressure—obtained
tem contains a strong water-wetting agent that to 2%, has a low Young’s modulus at steam condi- from these models were checked against various
minimizes sand accretion on the bit and tool- tions and has undergone laboratory testing to failure criteria to predict possible occurrence
string and that encapsulates cuttings so that they 344°C [651°F] for six months. and location of mechanical failure.11
are more easily removed by shakers and solids
control equipment. Geomechanics and Steam Injection Thermal Reservoir Simulations
Thermal recovery methods also present zonal Injecting high-pressure steam into oil sands has While the SAGD method has been commercially
isolation challenges. During SAGD operations, implications beyond testing the limits of steel successful for more than a decade, in the early
downhole temperatures typically reach 275°C and cement. It also challenges reservoir model- days of its use, operators sometimes experienced
[530°F]. These elevated temperatures cause the ing techniques. High-pressure steam injection disappointing recovery rates. These rates occurred
well casing to expand, which imposes stresses into the steam chamber causes pore pressure partly because industry planners calculated
on the surrounding cement sheath. To reduce and temperature to increase. Increasing pore reservoir response to steam based on simulation
these stresses and maintain well integrity, the pressure reduces the effective stresses—total studies that assume oil sands are homogeneous.
cement used for isolation must have a thermal stresses minus pore pressure—on the rock These assumptions, which have served reason-
expansion coefficient similar to that of the matrix. The steam chamber dilates, or increases ably well for many years in traditional EOR proj-

8 Oilfield Review
 Conventional SAGD Completion Smart SAGD Completion Simple SAGD Completion
Injection well Production well Injection well Production well Injection well Production well
MD, m MD, m MD, m MD, m MD, m MD, m
1,550
ICD
reservoir

1,400 1,400
Non-

1,400 1,400

1,600 Non-
1,600 reservoir
Reservoir

Tubing Tubing Packer Reservoir

Nonreservoir
1,650 1,500 1,500
1,650 1,500 1,500

Reservoir
1,700 Tubing Tubing
Nonreservoir

1,700 Non-
Perforations reservoir

Nonreservoir
1,600 1,600
1,600 1,600

Reservoir
1,750
1,750 Perforations

1,800

Nonreservoir
1,800 1,700 1,700
1,700 1,700
Reservoir

Reservoir

1,850
1,850

1,800 1,800
1,900 1,800 1,800

Reservoir
1,900
Nonreservoir

Reservoir

1,950
1,950 1,900
1,900
1,900 1,900

Nonreservoir
2,000
2,000
Nonreservoir

2,050 2,000 2,000

2,000 2,000
2,050

Nonreservoir
Reservoir

2,100

Reservoir
2,100
2,100
2,100
2,100
2,100
2,150
2,150
reservoir
Non-

2,200 Non-
reservoir 2,200
2,200
2,200 2,200
2,200

> Horizontal sections of three SAGD completion options. For conventional SAGD completions (left), both production and injection wells are cased; tubing is
run to the toe of the producer, and the injector is completed with tubing halfway through the horizontal section. The last 610 m [1,970 ft] of both wells, below
about 1,500 m [5,100 ft], were perforated. In smart SAGD completions (center), both wells are cased, and tubing is run to the toe of both wells. Inflow control
devices (ICDs) and packers are used to create individual sections in the injection well annulus. The horizontal sections of both wells are perforated only
where there is a minimum of 5 m [16 ft] of continuous sand (blue and green). Sections that have less than 5 m of continuous sand (purple) are not
perforated. Simple completions (right) are cased and perforated along the entire horizontal section, and tubing is run only to the heel of both wells.
(Adapted from Akram, reference 14.)

ects, often caused engineers to inaccurately
predict steam and pressure requirements and
overestimate the volume of recoverable reserves
within a bitumen reservoir.
That practice changed as SAGD experts real-
ized that oil sands exhibit vast variations in geo-
logic and reservoir properties. Taking advantage
of recent improvements in simulation methods
and computing technology, analysts today employ
a fine-scale grid to capture the details of reser-
voir heterogeneity and are able to run full-field
models. Additionally, with greater computing
power in hand, engineers are able to make simu-
lations of SAGD pads with multiple wells and to
account for the interplay of steam chambers for
adjacent well pairs.12
Simulation models may be used to gauge the
impact of SAGD completion options on produc-
tion, the steam/oil ratio (SOR) and project eco-
nomics.13 Targeting a SAGD operation in the
Athabasca oil sands of Alberta, Canada, one study
used the Schlumberger Petrel E&P software
8. Freeman MA, Stoian A, Potapinski JW, Elias LC and
Tetreault R: “Novel Drilling Fluid Eliminates Tar Problems
Associated with Drilling SAGD Wells,” paper SPE 90986,
presented at the SPE Annual Technical Conference and
Exhibition, Houston, September 26–29, 2004.
9. Tomilina EM, Chougnet-Sirapian A and Aboutourkia W:
“New Thermally Responsive Cement for Heavy Oil
Wells,” paper SPE 157892, presented at the SPE Heavy
Oil Conference Canada, Calgary, June 12–14, 2012.
10. Collins PM, Carlson MR, Walters DA and Settari A:
“Geomechanical and Thermal Reservoir Simulation
Demonstrates SAGD Enhancement Due to Shear
Dilation,” paper SPE/ISRM 78237, presented at the
SPE and International Society of Rock Mechanics
Conference, Irving, Texas, USA, October 20–23, 2002.
11. Khan et al, reference 5.
For more on caprock integrity: Khan S, Han H, Ansari S,
Vishteh M and Khosravi N: “Caprock Integrity Analysis
in Thermal Operations: An Integrated Geomechanics
platform for static modeling and the ECLIPSE
thermal reservoir simulator to test the impact of
a completion strategy known as smart, or green,
completions (above).
Approach,” WHOC paper 11-609, presented at the
World Heavy Oil Congress, Edmonton, Alberta,
March 14–17, 2011.
12. Akram F: “Multimillion-Cell SAGD Models—Opportunity
for Detailed Field Analysis,” WHOC paper 11-534,
presented at the World Heavy Oil Congress, Edmonton,
Alberta, March 14–17, 2011.
For more on optimization of SAGD well pairs through
full-field and thermal simulations: Akram F: “Multi-
Million Cell SAGD Models—Opportunity for Detailed
Field Analysis,” paper SPE 11RCSC–SPE 145679,
presented at the SPE Reservoir Characterisation and
Simulation Conference and Exhibition, Abu Dhabi, UAE,
October 9–11, 2011.
13. SOR, or steam/oil ratio, is a measure of the volume of
steam required to produce a volume of oil. The ratio is
commonly used to gauge the efficiency of a SAGD
operation based on the assumption that the lower the
SOR, the more efficiently the steam is used and the
lower the fuel costs.

Summer 2014 9
 Capex, Opex, NPV at 10%, • The smart design achieved optimized steam
Completion Production Volume,
Canadian Canadian Canadian injection at slightly higher capex and lower
Strategy million bbl
dollar, million dollar, million dollar, million
opex, which resulted in the best net present
Conventional completion 6.46 8.753 265 63.3
value (NPV) of the three options.
Smart completion 7.47 7.778 304 76.2 Results of the study highlight the value of
Simple completion 7.89 7.385 333 74.4 modeling thermal recovery operations and the
> Incremental results from three completion strategies. Five-year forecasts for all three completion potential pitfall of using a single indicator, such as
designs included casing, tubing, perforating, ICDs, packers, water treatment and recycling costs. SOR, to grade SAGD project success. Simulations
Financial analysis of the smart completion yielded a higher net present value (NPV) over the same time showed that the conventional completion design
period compared with the conventional and simple designs despite a higher production volume from produced the lowest SOR and that the simple
the simple completion.
completion design resulted in the highest cumula-
tive oil production. However, when an economics
model is included, the smart completion resulted
Engineers used the coupled model to deter- The study modeled and compared the conven- in lower overall costs and yielded the best return
mine how the location of baffles and barriers tional, smart and simple SAGD completion types on operator investment (left).14
within the reservoir would interfere with the over five years, reaching the following conclusions:
desired steam flow path, allowing them to config- • The conventional design achieved the best SOR Optimizing Production
ure the completion so that steam would flow but because of high capital and operating Optimal economic results using SAGD methods
upward in the reservoir and avoid the obstruc- expenditures (capex and opex) had the lowest require uniform steam chamber growth, or uni-
tions. Financial analysis was also performed rate of return on investment. form conformance. However, the flow of bitumen
using the Merak Peep planning, risk and reserves • The simple design achieved maximum recovery and steam through the formation between SAGD
software to compare the economic outcomes of but required more steam and produced more well pairs is often irregular (next page, top right).
various technical options. water, increasing capex and opex not compen- Reservoir heterogeneities create uneven steam
sated for by incremental production increases. flow through the oil sands and varying oil phase
mobility, which results in nonuniform oil flow.
Injection Well Additionally, steam is diverted by shale and mud
layers. As a consequence, more than 80% of
injected steam exits the well at the heel through
Surface pipe
the path of least resistance, and almost all the
remaining steam exits at the toe.15 To improve
conformance through injection control, opera-
tors have used various strategies, including dual
Production Well
Intermediate tubing strings inside slotted liners or other sand
casing
control screens for both the production and
Surface pipe injection wells (left).
Heel string
In the dual tubing configuration, one tubing
Steam Slotted liner string injects steam at the heel of the horizontal
section of the injection well and a second tubing
Intermediate string carries steam to the toe. Because steam
casing passes through the casing slotted liner into the
Gas lift string formation along the entire horizontal length of
the injection well, hydrocarbons enter the pro-
Heel string
Slotted liner Toe string duction tubing at both the toe and heel of the
well. By placing injection and production points
at both ends of the horizontal sections of both
wells, flow is more evenly distributed between
the well pair.
Dual tubing SAGD completions in Western
Toe string Canada usually include gas lift rather than elec-
tric submersible pumps (ESPs) to lift oil to the
> Controlling steam injection and bitumen production in horizontal sections. When an operator completes
surface but do not have downhole control valves.
a SAGD injection well (right ) with multiple tubing strings and a slotted casing liner, steam (red arrows)
may then be injected into the casing-tubing annulus at both the toe and heel of the well to promote a Dual tubing completions may also contain an
more uniform injection profile along the length of the horizontal section. A production well completed instrumented coiled tubing string with a distrib-
with dual tubing strings and a slotted liner (left) allows the gravity-driven bitumen and steam uted temperature string or a thermocouple array.
condensate (green arrows) to enter the tubing-casing annulus more evenly along the horizontal
One study has proposed proportional integral
section. A proportional integral derivative feedback controller (not shown) monitors the temperature
difference between the injected and produced fluids, or the subcool, through instrumented coiled derivative (PID) feedback controllers on each
tubing in the production well (red line) and regulates injection rates according to a target subcool.

10 Oilfield Review
injector tubing string to control injection rates. Ideal Uniform Steam Chamber Irregular Steam Chamber
The PID controller monitors the temperature dif-
ference between the injected and produced flu-
Uniform shape Uneven shape
ids and maintains a specified difference between Three-
quarter
the two by regulating the rate of injection.16 The view
temperature difference between the injected
steam and the produced fluids is a key control
variable in SAGD operations and is called the
subcool; it is typically maintained at between Even flow Varied flow
15°C and 30°C [27°F and 54°F].17 Dual tubing
completions with PID controllers have improved
steam chamber conformance by controlling
injection rates to maintain a specific subcool
value as the reservoir conditions change. Side
view
A follow-up study aimed at optimizing produc-
tion and NPV examined the use of PID controllers
in SAGD well pairs. Researchers concluded that > Ideal and real steam chambers. An ideal steam chamber (left) displays uniform steam distribution
the controllers can adjust injection rates quickly along the horizontal length of the injector well and permeates the formation evenly to efficiently drive
and thus attain and maintain a targeted subcool bitumen to the production well below. In practice, without intervention, steam chambers are highly
and achieve efficient SORs. Additionally, because irregular and highly inefficient (right ).
the same subcool target is used on both the heel
and toe halves of the well pair, PIDs may be able to
improve steam chamber conformance along the
length of the well pair.18
Engineers may also attempt to create steam
chamber conformance by installing inflow con-
trol devices (ICDs) as part of a sand screen
assembly in either the injection or production
Slotted liner
well or in both. ICDs are designed to cause the
pressure distribution, or flux, along the length of
the wellbore to vary. When installed as part of the
injection well completion, ICDs serve to better
equalize the toe-to-heel steam flux. When
installed as part of the production well comple-
tion, ICDs help equalize toe-to-heel influx of the
steam-oil emulsion and thereby provide a more
uniform toe-to-heel subcool (right).

14. Akram F: “Effects of Well Placement and Intelligent

Completions on SAGD in a Full-Field Thermal-Numerical
Model for Athabasca Oil Sands,” paper SPE/PS/CHOA
117704, presented at the SPE International Thermal
Operations and Heavy Oil Symposium, Calgary,
October 20–23, 2008.
15. Banerjee S, Abdelfattah T and Nguyen H: “Benefits of
Passive Inflow Control Devices in a SAGD Completion,”
paper SPE 165478, presented at the SPE Heavy Oil ICDs with sand screens
Conference Canada, Calgary, June 11–13, 2013.
16. Stone TW, Brown G, Guyaguler B, Bailey WJ and
Law DH-S: “Practical Control of SAGD Wells with
Dual Tubing Strings,” Journal of Canadian Petroleum
Technology 53, no. 1 (January 2014): 32–47.
17. Gates ID, Kenny J, Hernandez-Hdez IL and Bunio GL:
“Steam-Injection Strategy and Energetics of
Steam-Assisted Gravity Drainage,” paper SPE/PS-CIM/
CHOA 97742, presented at the SPE International Thermal
Operations and Heavy Oil Symposium, Calgary,
November 1–3, 2005.
18. Stone TW and Bailey WJ: “Optimization of Subcool in
SAGD Bitumen Processes,” WHOC paper 14-271, > Heel-toe effect. The steam-oil emulsion (blue) created by steam injection during SAGD operations
presented at the World Heavy Oil Congress, tends to flow through higher permeability zones and arrive unevenly at the production well slotted
New Orleans, March 5–7, 2014. liner, often at the well’s heel (top). Inflow control devices (ICDs) inside sand screen assemblies
equalize the pressure drop along the entire length of the wellbore, promoting more evenly distributed
emulsion flow through the formation and more uniform flow along the length of the horizontal
production string (bottom).

Summer 2014 11
 140
120
100
Bitumen flow rate, m3/d
80
60
40
20
0
0 1 2 3 4 5
> Bitumen production from standard SAGD wells with inflow control devices (ICDs). Simulations run by
Brion Energy indicate that cumulative production (area under each flow rate curve) is higher from
SAGD production wells that include two ICDs, each fitted with 2.5-mm nozzles per joint of tubing, than
from base case, standard slotted liner production wells. Simulations were run using 2.5-mm nozzle
ICDs at varying drawdown pressures (0, 25, 50, 75 and 100 kPa) below the standard well pair
drawdown pressure. (Adapted from Becerra et al, reference 22.)
Nozzle-based ICDs are viscosity independent,
and the pressure drop varies with the square of
the velocity through the nozzles, providing high
steam choking capacity. The nozzles therefore
act as self-regulating valves in SAGD production
well completions because as the liquid level
comes into close proximity to the ICD sand
screen, the liquids flash, or vaporize, inside the
valve, causing additional flow restriction for the
same pressure drop. This process works to dis-
courage steam from entering the production
wellbore; if steam does enter the wellbore, it is at
a much reduced rate that will not cause localized
erosion damage to the sand screen, known as
“hot spots.” Consequently, SAGD completions
with ICDs are able to improve conformance with-
out the need for a second tubing string extending
to the toe of the production well.19
Experts from Schlumberger ran wellbore
simulations of a SAGD well pair that included a
base case in which the producer was equipped
with ICDs and the injector was completed as a
dual string PID-controlled well. Steam was
injected at a maximum rate of 250 m3/d
[8,800 ft3/d]; the subcool target was 3°C [5.4°F].
For this study, researchers used FluxRite ICDs,
now called MeshFlux ICDs, which are a combina-
tion of MeshRite sand control technology and
nozzle-type ICDs.
12
Base case
2.5 mm, 0 kPa
2.5 mm, 25 kPa [4 psi]
2.5 mm, 50 kPa [7 psi]
2.5 mm, 75 kPa [11 psi]
2.5 mm, 100 kPa [15 psi]
6 7 8 9 10 11 12
Years
Installed with screens on 14 m [46 ft] long,
7-in. diameter basepipe, the production well ICD
nozzle contained a 4.2-mm [0.17-in.] throat diam-
eter; each well of the single SAGD well pair was
700 m [2,290 ft] long with 5-m [16-ft] vertical
spacing. The simulated reservoir was based on
available data for the McMurray formation in
northeastern Alberta, Canada, which contains
high viscosity bitumen at initial conditions and is
highly heterogeneous.20
Four simulations were run:
• In Case 1 (base case), the average tempera-
tures in the heel and toe halves of the producer
were calculated using a temperature sort
algorithm.
• In Case 2, the average temperatures in the heel
and toe halves of the producers were calculated
as an average of all inflowing temperatures.
• In Case 3, the target subcool changed from 3°C
to 15°C.
• In Case 4, the producer was completed with
dual tubing strings.
The study concluded that dual tubing string
completions with PID controllers improved SOR
and cumulative oil production. Use of a tempera-
ture sort algorithm to screen out low tempera-
tures improved calculation of the subcool; a lower
subcool target resulted in improved production
and economics.21 Use of ICDs in the production
completion resulted in a more stable pressure
environment, more easily controlled production
and more evenly distributed production along the
entire horizontal length of the well than did pro-
ducers completed with dual tubing strings.
Encouraged by reports of the impact of ICDs
on production and efficiency in SAGD operations,
engineers at Brion Energy performed a prelimi-
nary study to quantify the potential benefits of
liner-deployed ICDs. They used a reservoir model
based on their Mackay River Commercial Project
(MRCP), located about 30 km [18.7 mi] north-
west of Fort McMurray, Alberta. Because the ini-
tial model, which was based on ideal conditions
and a perfectly homogeneous reservoir, did not
show any benefit from the ICD, it was later
replaced with one in which the absolute permea-
13 bility of the reservoir cells on some of the planes
perpendicular to the well trajectory were
increased or reduced according to the maximum
expected variation in the same reservoir area.
To accommodate the sand screens that are
part of the ICD installation, the liner diameter
was reduced from 8 5/8 in. to 7 in. Modeling indi-
cated this size change had no impact on the well
pair SOR and cumulative production. For eco-
nomic and technical reasons, the team chose
nozzle-type ICDs combined with a low-profile fil-
ter media to allow the assembly to be run inside
9 5/8-in. casing.
With this configuration, simulation showed
that the well pairs with the ICDs in the producers
had a higher cumulative production and lower
SOR than wells without ICDs; most of the produc-
tion benefit occurred during the first two years.
At the end of this period, cumulative production
was 12.2% higher in liners with ICDs compared
with the same wells without ICDs. After six years,
that difference fell to only 2.5% higher. However,
SOR was reduced by 9.84% at the end of Year 2
and 10.3% at Year 6. The company deemed these
benefits sufficient to move ahead with field tests.
Prior to field installations, a more detailed
dynamic simulation was performed using an
actual well pair trajectory and an updated reser-
voir geomodel in which the operator planned to
run the first liner ICD completion. The simula-
tion was run with a Petrel workflow using the
ECLIPSE reservoir simulator in combination
with a fully coupled multisegment well model.
Also, based on the results of simulations using
various nozzle sizes and downhole drawdown
pressures, the operator chose to install two
2.5-mm nozzles per joint of liner in the producer,
maintaining the wellbore subcool at 1°C [2°F].
Oilfield Review
With the well drawdown pressure set at 70 kPa
[10 psi] lower than that of a standard comple-
tion, simulation results showed that the cumula-
tive production could improve by 34% at Year 4
and 23% at Year 12 (previous page).
Based on the results of these simulations and
concluding that ICDs have the potential to
improve the performance of SAGD development,
in October 2013, Brion Energy completed the
first of two wells it planned to equip with ICDs. A
second such well is planned for completion in
2014. Steam circulation is expected to begin dur-
ing the second half of 2015, and production is
expected to begin in the first half of 2016.22
Lightening the Load
As for all oil and gas production operations,
SAGD operators continually strive to improve
production, reduce costs and minimize the envi-
ronmental impact of their operations. In SAGD
wells, production and costs are both driven by
steam. Maintaining bitumen production from
SAGD wells without mechanical intervention
requires constant increases in the steam injec-
tion rate and pressure to compensate for steam
chamber leakoff and to help lift the oil-water
emulsion to the surface. SAGD operators, know-
ing such increases are unsustainable, have
turned instead to artificial lift.
Operators investigated several artificial lift
techniques and tools in the oil sands of Western
Canada, including multiphase pumps, rudimen-
tary gas lift and electric submersible pumps
(ESPs). Because they had limited success with
multiphase pumps and gas lift installations, oper-
ators have opted to install ESPs. Engineers
understood that for these pumps to be effective,
they had to control the subcool at the pump
intake. When the subcool becomes too low, steam
is able to flow directly into the production string,
and energy efficiency drops. Steam entering the
slotted liner may also cause liner failures, sand
production and pump cavitation if the intake
pressure falls below the specified net positive
suction head.23
ESPs have a history of solid performance in
fairly shallow oil wells. However, service life is
reduced significantly when ESPs are exposed to
high bottomhole temperatures or when the con-
ditions at the intake are such that water vapor or
steam is present. To avoid this mode of failure,
pumps must be manufactured of materials with
higher tolerances for thermal expansion than
those used in standard applications. The motor
oil must be able to maintain its dielectric
strength and lubricating properties in high tem-
peratures, and the electric line to the motor must
Summer 2014
be able to withstand constant submersion in Capturing these data through traditional, grav-
high-temperature fluids. ity-based separation systems is a daunting task in
To address these requirements, engineers SAGD wells because production fluids often have
from Schlumberger and ConocoPhillips designed very small contrasts between water and oil densi-
and tested a high-temperature ESP in a flow loop ties. Additionally, production from SAGD wells is
at C-FER Technologies laboratories in Edmonton, usually marked by unstable flow regimes, high
Alberta. The facility made it possible for the team temperatures, emulsified foamy oil, hydrogen sul-
to use a variety of downhole instruments to moni- fide [H2S] and abrasive sand particles.
tor the new ESP performance in a high-tempera- These and other possible sources of error led
ture environment (below). The REDA HotlineSA3 engineers from Suncor Energy, in Calgary, and
high-temperature ESP ran without failure for Schlumberger to conclude that flow rate mea-
almost 42 days at fluid temperatures ranging surements using traditional production monitor-
from 150°C to 260°C [300°F to 500°F], which ing methods were insufficient to enable SAGD
is the upper temperature design limit of the well optimization. In 2007, engineers sought a
test loop.24 way around these limitations by testing and qual-
ifying a multiphase flow meter (MPFM) on a
Real-Time Production Numbers SAGD well.25
With time and experience, SAGD experts have The MPFM was based on Vx multiphase well
significantly improved production and reduced testing technology originally developed by
costs of heavy oil recovery. Further fine-tuning of Schlumberger engineers for deepwater applica-
these operations requires timely and accurate tions. The Vx system combines an instrumented
flow rate data to optimize artificial lift efficien- venturi with a multienergy fraction meter and is
cies, to adjust steam injection rates and pres- able to measure total flow rate and fractions of
sures and to test and revise the reservoir models
used to furnish production forecasts.
Motor surface Fluid intake
temperature sensor temperature sensor Produced fluids
Motor oil Motor winding Downhole horizontal
temperature sensor temperature sensor and vertical vibrations sensor
near pump intake
> Instrumenting an electric submersible pump (ESP) for high-temperature testing. By equipping an ESP
with multiple sensors during laboratory testing, engineers were able to monitor surface and internal
temperatures and vibrations at points where ESPs typically fail in high-temperature environments.
(Adapted from Noonan et al, reference 24.)
19. Stone TW, Law DH-S and Bailey WJ: “Control of 23. Gaviria F, Santos R, Rivas O and Luy Y: “Pushing the
Reservoir Heterogeneity in SAGD Bitumen Processes,” Boundaries of Artificial Lift Applications: SAGD ESP
paper SPE 165388, presented at the SPE Heavy Oil Installations in Canada,” paper SPE 110103, presented at
Conference Canada, Calgary, June 11–13, 2013. the SPE Annual Technical Conference and Exhibition,
For more on ICDs: Ellis T, Erkal A, Goh G, Jokela T, Anaheim, California, USA, November 11–14, 2007.
Kvernstuen S, Leung E, Moen T, Porturas F, Pressure losses occur when liquids flow into a pump
Skillingstad T, Vorkinn PB and Raffn AG: “Inflow Control impeller. The net positive suction head is the minimum
Devices—Raising Profiles,” Oilfield Review 21, no. 4 pressure required at the suction port of a pump to keep
(Winter 2009/2010): 30–37. the pump from cavitating.
20. Stone et al, reference 19. 24. Noonan SG, Dowling M, D’Ambrosio L and Klaczek W:
21. The temperature sort algorithm averages all “Getting Smarter and Hotter with ESPs for SAGD,”
temperatures in the producing wells with the exception paper SPE 134528, presented at the SPE Annual
Technical Conference and Exhibition, Florence, Italy,
of the coolest temperatures in each half of the well if
they were significantly lower than the hottest September 19–22, 2010.
temperatures in each half of the well and affected 25. Pinguet B, Gaviria F, Kemp L, Graham J, Coulter C and
permeability-height calculations. Perez-Damas C: “SAGD Real-Time Well Production
22. Becerra O, Kearl B and Sanwoolu A: “A Systematic Measurements Using a Nucleonic Multiphase
Approach for Inflow Control Devices Testing in Mackay Flowmeter: Successful Field Trial at Suncor Firebag,”
River SAGD Wells,” paper SPE 170055, presented WHOC paper 11-514, presented at the World Heavy Oil
at the SPE Heavy Oil Conference Canada, Calgary, Congress, Edmonton, Alberta, March 14–17, 2011.
June 10–12, 2014.
13
 Flow measurements using the MPFM and the
test separator for the same stable flow periods
Flow computer indicated consistent results between them.
However, researchers found that the Vx meter
Nuclear consistently reported lower water/liquid ratio
detector (WLR) measurements than did the test separa-
tor. Investigation showed that the test separator
Venturi Nuclear source
was over-reporting water and under-reporting oil
production. More significantly, the Suncor and
Schlumberger team concluded from the results
Pressure
transmitter of the three-year project that the Vx technology
Differential
pressure had good dynamic response, repeatability and
transmitter measured flow rates from SAGD wells with a high
degree of accuracy, which made it well suited as
Flow an optimization tool.27
> Vx multiphase well testing technology. Vx meter measurements do not rely
on fluids separation or flow calibration and are not impacted by foam or Optimization
emulsions. The meter has no moving parts or sensors in direct contact with Applying the SAGD method is capital intensive;
the fluid. Absolute and differential pressure measurements are made at the steam generation costs account for the bulk of
same location in the venturi throat. Nuclear-transparent windows in the
venturi allow gamma rays to pass from source to detector with little loss
operating expenses. SAGD engineers continually
caused by hardware. A flow computer provides sensor processing and strive to improve steam distribution along well
flow rate data. pairs through the practice of real-time optimiza-
tion (RTO).
SAGD operations, however, are complex and
require that many parameters be monitored and
gas, oil and water in multiphase production Alberta (below). In addition to higher accuracy controlled; the most important variables include
streams (above).26 measurements from the MPFM, this arrangement steam injection rates, subcool and downhole tem-
In 2009, following numerous design changes would allow continuous flow measurements from perature and pressure.28 The task of applying RTO
based on results of the 2007 tests, the team pro- each well. In the original arrangements, on the practices to SAGD operations is further compli-
posed replacing a centralized test separator with other hand, one separator per pad allowed engi- cated by the fact that engineers derive each
a Vx MPFM at each of nine wellheads on a single neers to test wells only intermittently for short required parameter by combining data from
pad at the Suncor Firebag project in northeast time periods. numerous sources (next page).29 While these
many variables make optimizing SAGD operations
difficult, their complexity also means these opera-
tions are good candidates for RTO solutions.

26. For more on Vx technology: Atkinson I, Theuveny B,

Berard M, Conort G, Groves J, Lowe T, McDiarmid A,
ean Mehdizadeh P, Perciot P, Pinguet B, Smith G and
Arctic Oc 0 km 200
Williamson KJ: “A New Horizon in Multiphase
0 mi 200 Flow Measurement,” Oilfield Review 16, no. 4
(Winter 2004/2005): 52–63.
Suncor Firebag 27. Pinguet B, Gaviria F, Kemp L, Graham J, Coulder C,
Alberta SAGD project Damas C and Ben Relem K: “First Ever Complete
Evaluation of a Multiphase Flow Meter in SAGD and
Demonstration of the Performance Against Conventional
Edmonton Equipment,” presented at the 28th International North
Sea Flow Measurement Workshop, St. Andrews,
Scotland, October 26–29, 2010.
28. Gonzalez LE, Ficocelli P and Bostick T: “Real Time
Calgary Optimization of SAGD Wells,” paper SPE 157923,
presented at the SPE Heavy Oil Conference Canada,
Calgary, June 12–14, 2012.
29. Mohajer M, Perez-Damas C, Berbin A and Al-kinani A:
Alberta “An Integrated Framework for SAGD Real-Time
CANADA Monitoring,” WHOC paper 2009-390, presented at the
World Heavy Oil Congress, Margarita Island, Venezuela,
November 3–5, 2009.
30. For more on DTS: Brown G: “Downhole Temperatures
from Optical Fiber,” Oilfield Review 20, no. 4
(Winter 2008/2009): 34–39.
UNITED STATES
31. Mohajer et al, reference 29.
32. Canadian Association of Petroleum Producers (CAPP):
“Crude Oil Forecast, Markets and Transportation,”
Calgary: CAPP, June 2013.
> Firebag Project. The Suncor Firebag project, site of the Vx multiphase flow meter tests, is in
northeast Alberta.

14 Oilfield Review
Flow Rate Measurement
Method
Downhole flow for ESP
Well test using separators
Multiphase metering well testing
ESP Lift Completion Measurement
Surface Measurement
Tubing pressure and temperature
Casing pressure
Total flow
Power
Multiphase flow rate
Gas Lift Completion Measurement
Surface Measurement
Tubing pressure and temperature
Injection pressure and temperature
Injection rate
Multiphase flow data
Steam Injection Completion Measurement
Surface Measurement
Injection pressure and temperature
Injection rate
> Surface and downhole measurements. Engineers must use various techniques to measure all the
required variables for monitoring, surveillance, diagnosis and optimization of SAGD well operations.
(Adapted from Mohajer et al, reference 29.)
Advantage
True pump flow rate
Readily available
Consistent and accurate
Minimum interference with system
pressures
Ability to measure instability
Downhole Measurement
Pump intake pressure
Pump discharge pressure
Pump flow rate
Intake temperature
Motor temperature
Vibration
Downhole Measurement
Tubing pressure below the orifice
Casing pressure below the orifice
Distributed temperature
Downhole Measurement
Tubing pressure
Distributed temperature
Limitation
Single phase only; limitation
on free gas
Inconsistent, time-lagged
results
Affects system backpressure
Readings require adjustment
to stock tank conditions
Episodic Measurement
Flowing gradient survey of
pressure, temperature and flow
Temporarily installed multiphase
well testing
Episodic Measurement
Flowing gradient survey of
pressure and temperature
Temporarily installed multiphase
well testing
Thermal profile survey with
distributed temperature system
Episodic Measurement
Thermal profile survey with
distributed temperature system
Heavy Oil Future
According to the Canadian Association of
Petroleum Producers (CAPP), Canada produced
290,000 m3/d [1.8 million bbl/d] of oil from oil
sands in 2012. Of that total, 130,000 m3/d
[800,000 bbl/d] were from mining and the
remainder from in situ methods, primarily SAGD.
In that same report, CAPP predicted that by
2030, mining would account for 270,000 m3/d
[1.7 million bbl/d] of production while in situ
methods would increase to 560,000 m3/d [3.5 mil-
lion bbl/d].32
The ratio of production volumes from SAGD
methods to production volumes from mining is
increasing in favor of SAGD operations because
much of Western Canada’s bitumen is too deep to
mine, and SAGD project capital and operating
costs are significantly less than those for mining
operations. Small SAGD projects can be profit-
able and can be scaled up over time. Wells also
have shorter lead times than mines; thus, compa-
nies can react to changing markets. Additionally,
whereas bitumen mining operations require
removal of all top soil and overburden, SAGD
wells impose a relatively small footprint, render-
ing them much more environmentally attractive.
The oil sands of Canada offer exploration and
production companies one other advantage: the
reserves are known; thus, exploration costs and
risks are virtually eliminated. Economic and
environmental incentives, aided by the applica-
tion of decades of upstream technology develop-
ment, almost certainly will mean the oil sands of
Canada will be a critical component of the global
oil market for many years. —RvF

Two of the most important measurements for
use in RTO—temperature and pressure profiles
along the length of the horizontal sections—are
available through optical fiber distributed tem-
perature sensors (DTSs).30 And MPFMs supply a
third critical piece of information—real-time
surface flow rates for each phase.
For RTO, these critical data are subjected to
basic quality checks using software to remove
obvious errors such as negative pressures and
extremely high or low temperatures. These
results are then further refined by a more rigor-
ous procedure to ensure all parameters obey the
laws of thermodynamics and are physically realis-
tic and resemble what the system has seen in
the past. Missing or previously discarded data are
replaced using estimates based on related
measurements. The measured data are quickly
analyzed, and nonobvious relationships in a mul-
tidimensional dataset are identified to expose
hidden correlations or trends. Often, these
correlations are strong enough to describe the
behavior of the observed data as the result of only
a few input parameters.31
Optimization may then proceed by comparing
the subcool calculated from real-time DTS tem-
perature measurements with a reservoir model
and a target subcool range. When the system
notifies the operator that the subcool value is out
of range, engineers make changes to controls
such as steam injection and multiphase pump
rates. Ideally, these changes are made automati-
cally in a closed loop system that constantly fine-
tunes controls.

Summer 2014 15