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CONTENTS
Volume 69 • Number 4

14 GUEST EDITORIAL • NEEDED: RADICAL EFFICIENCIES

Although the current proven reserves globally is 1.5 trillion bbl,
recovery factors are less than 30% across all operating environments,
and less than 10% in deep water. These statistics can be addressed
by improving the efficiency and productivity gaps using the most
powerful tool available—technology.
29 OIL AND GAS PRODUCERS FIND FRAC HITS IN SHALE
WELLS A MAJOR CHALLENGE
Shale wells are getting closer to each other by the day in North
America as oil and gas producers put more rigs to work. But
shale experts say this also means hydraulically induced fractures
sometimes get too close to neighboring wellbores and lower their
production, or worse.
36 THE FUTURE OF THE OIL SANDS DEPENDS ON ONE
THING: TOTALLY RETHINKING EVERYTHING
Future growth in the oil sands will require finding a way to reduce
the cost of expansion, and also the scale and time required to add
production to allow them to compete with the unconventional This month, the Technology
producers who can quickly stop and start as prices change. Focus section addresses offshore
challenges in deepwater and
44 AIRBORNE DUST LIMITS FINALIZED FOR SAND USE ultradeepwater drilling and
IN HYDRAULIC FRACTURING completion, and high-pressure/
The US Occupational Safety and Health Administration announced high-temperature environments.
a revised standard that cuts in half the permissible exposure limit Source: Petronas.
per cubic meter of air for silica. As the industry works to adapt to
the new regulations, operators are looking at ways to minimize the
presence of dust at their hydraulic fracturing sites.
DEPARTMENTS
47 OTC HOLDS TIMELY OPPORTUNITY TO CHART E&P 6 Performance Indices
INDUSTRY FUTURE 8 Regional Update
With many challenges remaining for E&P, the Offshore Technology
Conference to be held from 1–4 May in Houston will be a timely 10 President’s Column
opportunity for the industry to chart the way ahead. 12 Comments
50 OTC NAMES WINNERS OF SPOTLIGHT ON NEW 16 Technology Applications
TECHNOLOGY AWARDS 20 Technology Update
The recipients of the 2017 Offshore Technology Conference Spotlight 23 E&P Notes
on New Technology Awards are announced. The awards showcase 97 People
the latest advances in offshore exploration and production.
98 Professional Services
56 MANAGEMENT • TECHNOLOGY DEVELOPMENT 99 Advertisers’ Index
IN UPSTREAM DIVISION OF GAZPROM NEFT
An overview of Gazprom Neft’s recent initiatives in upstream 100 SPE Events
technology development, including details on the challenges
identified by the company, planned strategy, knowledge
management, investment ranking, and the company’s organizational
committees that manage the processes.

An Official Publication of the Society of Petroleum Engineers. Printed in US. Copyright 2017, Society of Petroleum Engineers.
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TECHNOLOGY FOCUS
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61 OFFSHORE DRILLING AND COMPLETION
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62 RFID Technology for Deepwater Drilling and Completions Challenges

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65 Systems Approach to Product Design for Ultradeepwater your well.
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68 Interventionless Reservoir-Isolation Valve Removes Need for

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70 NATURAL GAS PROCESSING AND HANDLING
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Xiuli Wang, SPE, Senior Adviser, Baker Hughes need us.
71 Fiber-Optic Leak-Detection Project VISURAY’s revolutionary VR90®
downhole X-ray diagnostic service is
74 A New Distillation Process for the Upgrading of Acid Gas
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76 New Steel Plate for Liquefied-Natural-Gas Storage Tank East, and North America. In the North
Sea, our groundbreaking technology
79 HIGH-PRESSURE/HIGH-TEMPERATURE CHALLENGES has been qualified by a major operator.
Robert Ziegler, SPE, Global Director, Well-Control Technology, Wherever your well and whatever its
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80 Integrated Approach for Overpressure Prediction in an HP/HT Well what’s happening and deliver quality
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83 Application of MPD Technology for HP/HT Wells in Vietnam back into operation. You save time and
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90 Uncertainty Quantification for History-Matching Problems
93 Field-Scale Assisted History Matching Using a Systematic Ensemble
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95 Drill and Learn: A Decision-Making Work Flow To Quantify Value

of Learning

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The complete SPE technical papers featured in this issue are available
free to SPE members for two months at www.spe.org/jpt.

SPE BOARD OF DIRECTORS
OFFICERS
2017 President
Janeen Judah, Chevron
2016 President
Nathan Meehan, Baker Hughes
2018 President
Darcy Spady, Broadview Energy
Vice President Finance
Roland Moreau, ExxonMobil Annuitant
REGIONAL DIRECTORS
AFRICA
Adeyemi Akinlawon, Adeb Konsult
CANADIAN
Cam Matthews, C-FER Technologies
EASTERN NORTH AMERICA
Joe Frantz Jr., Range Resources
GULF COAST NORTH AMERICA
J. Roger Hite, Inwood Solutions
MID-CONTINENT NORTH AMERICA
Chris Jenkins, Independent Energy Standards
MIDDLE EAST
Khalid Zainalabedin, Saudi Aramco
NORTH SEA
Karl Ludvig Heskestad, Aker BP
NORTHERN ASIA PACIFIC
Phongsthorn Thavisin, PTTEP
ROCKY MOUNTAIN NORTH AMERICA
Erin McEvers, Clearbrook Consulting
RUSSIA AND THE CASPIAN
Anton Ablaev, Schlumberger
JPT STAFF
Glenda Smith, Publisher
John Donnelly, Editor
Pam Boschee, Senior Manager Magazines
Chris Carpenter, Technology Editor
Trent Jacobs, Digital Editor
Anjana Sankara Narayanan, Editorial Manager
Joel Parshall, Features Editor
Stephen Rassenfoss, Emerging Technology Senior Editor
Stephen Whitfield, Senior Staff Writer
Adam Wilson, Special Publications Editor
Craig Moritz, Assistant Director Americas Sales & Exhibits
Mary Jane Touchstone, Print Publishing Manager
David Grant, Digital Publishing Manager
Laurie Sailsbury, Composition Specialist
Dennis Scharnberg, Proofreader
archerwell.com/point
SOUTH AMERICA AND CARIBBEAN
Anelise Quintao Lara, Petrobras
SOUTH, CENTRAL, AND EAST EUROPE
Matthias Meister, Baker Hughes
SOUTH ASIA AND THE PACIFIC
The
Salis Aprilian, PT Badak NGL
SOUTHWESTERN NORTH AMERICA
Libby Einhorn, Concho Oil & Gas
missing
WESTERN NORTH AMERICA
Andrei Popa, Chevron
TECHNICAL DIRECTORS
link.
DRILLING
Jeff Moss, ExxonMobil
HEALTH, SAFETY, SECURITY, ENVIRONMENT,
AND SOCIAL RESPONSIBILITY
Trey Shaffer, ERM
MANAGEMENT AND INFORMATION
J.C. Cunha
COMPLETIONS
Jennifer Miskimins, Colorado School of Mines
PRODUCTION AND FACILITIES
Well integrity
Hisham Saadawi, Ringstone Petroleum Consultants
RESERVOIR DESCRIPTION AND DYNAMICS
Tom Blasingame, Texas A&M University
DIRECTOR FOR ACADEMIA is at a tipping
Dan Hill, Texas A&M University
AT-LARGE DIRECTORS point.
Khaled Al-Buraik, Saudi Aramco
Helena Wu, Santos Ltd.
No one denies the
importance of reservoir
and production dynamics.
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 PERFORMANCE INDICES

WORLD CRUDE OIL PRODUCTION+‡ HENRY HUB GULF COAST NATURAL GAS SPOT PRICE‡

THOUSAND BOPD
6
O PEC AUG SEP OCT NOV
5 USD/million Btu
Algeria 1350 1350 1350 1350
Angola 1833 1768 1618 1698 4

Ecuador 549 560 552 544 3

Indonesia 837 837 839 834
2
Iran 4150 4170 4190 4200
Iraq 4460 4480 4565 4645 1

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2017
JAN

FEB
Kuwait1 2960 2960 2960 2970
Libya 250 310 550 580
Nigeria 1913 1943 1988 2023
Qatar 1537 1477 1507 1527
Saudi Arabia1 10640 10600 10590 10640 WORLD CRUDE OIL PRICES (USD/bbl)‡
UAE 3186 3216 3196 3226
Venezuela 2210 2200 2190 2180
2017
TOTAL2 36085 36081 36295 36637 JUL AUG SEP OCT NOV DEC JAN FEB

Brent 44.95 45.84 46.57 49.52 44.73 53.32 54.58 54.87

THOUSAND BOPD WTI 44.65 44.72 45.18 49.78 45.71 51.97 52.50 53.47

NON-OPEC AUG SEP OCT NOV

Canada 3855 3849 3893 3721
China 3874 3887 3780 3780 WORLD ROTARY RIG COUNT†
Egypt 493 493 492 492

Mexico 2179 2146 2136 2104

2017
Norway 1603 1430 1766 1784 REGION AUG SEP OCT NOV DEC JAN FEB
Russia 10316 10729 10826 10832 US 481 509 544 580 634 683 744
UK 837 821 760 948 Canada 129 141 156 173 209 302 342
USA 8759 8567 8799 8904
Latin America 187 189 183 181 184 176 179
Other3 12069 12390 12659 12606
Europe 96 92 87 97 99 98 107
TOTAL 43985 44312 45111 45171
Total World 80070 80393 81406 81808 Middle East 379 386 391 380 376 382 382

Africa 81 77 77 79 78 79 77
Asia Pacific 194 190 182 188 192 198 196
INDICES KEY
Numbers revised by EIA are given in italics.
+
Figures do not include natural gas plant liquids. TOTAL 1547 1584 1620 1678 1772 1918 2027
1
Includes approximately one-half of Neutral Zone production.
2
Includes all current OPEC members.
3
Additional annual and monthly international crude oil production statistics
are available at http://www.eia.gov/beta/international/. WORLD OIL SUPPLY AND DEMAND‡
† Source: Baker Hughes.
‡ Source: EIA.
MILLION BOPD 2016
Quarter 1st 2nd 3rd 4th

SUPPLY 96.82 96.49 97.04 98.33

DEMAND 95.47 96.10 97.58 97.39
Supply includes crude oil, lease condensates, natural gas plant liquids, biofuels, other liquids,
and refinery processing gains.

6 JPT • APRIL 2017

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 REGIONAL UPDATE
AFRICA
Z Aminex reported that the company-
operated Ntorya-2 appraisal well in the
Ruvuma Basin of Tanzania encountered a
gross gas-bearing reservoir unit of 167 ft.
A comprehensive well testing program
began in late February. The earlier Ntorya-1
well discovered a net pay of 11.5 ft and
flow-tested at 20 MMcf/D, with 139 bbl of
associated condensate. The Ntorya field is
approximately 25 miles from the Madimba
gas processing plant, which connects with
the National Gas Pipeline system. Aminex
has a 75% working interest in the project
with Solo holding the remaining share.
Z Eni has begun production from the East
Hub Development Project offshore Angola,
5 months ahead of schedule. The startup
of the Cabaça South East field is expected
to boost production from Block 15/06 to
150,000 B/D. East Hub production will
add to output from the existing West Hub
Project in the Sangos, Cinguvu, and Mpungi
fields. The company operates Block 15/06
and holds a 36.84% interest. Sonangol
(36.84%) and SSI Fifteen (26.32%) are the
other participants.
ASIA
Z PetroChina plans to step up shale gas
development in Sichuan province with a goal
of meeting a third of a 2020 government
target for the unconventional resource,
according to state media and a government
official. The Xinhua news agency reported
that the state oil and gas company will
increase drilling in southern Sichuan, China’s
top gas-producing region and a key early
shale development area. PetroChina plans
to build 353 Bcf of shale gas production
capacity in the province over the next
4 years. For 2017, the company plans to
deploy 19 new rigs to drill 110 wells there,
part of a total 600 wells planned in the next
4 years, Xinhua said. Domestic rival Sinopec
likewise plans to achieve 353 Bcf of shale
gas output by 2020.
AUSTRALIA/OCEANIA
Z Total is drilling ahead to explore a
deeper exploration target at the company-
operated Antelope-7 sidetrack appraisal
well in the Gulf Province of Papua New
8 JPT • APRIL 2017
Guinea, after reaching 7,818 ft without
evidence of intersecting the Antelope
reservoir. The proposed total depth of the
well’s appraisal section was approximately
7,545 ft. Total has a 40.1275% interest in the
well, with remaining stakes held by InterOil
(36.5375%), Oil Search (22.835%), and
minority parties (0.5%).
EUROPE
Z Lundin has made a discovery on
production license 533 in the Barents Sea,
the Norwegian Petroleum Directorate has
announced. Wildcat well 7219/12-1 proved
a total oil column of about 196 ft and an
overlying total gas column of 196 ft, of
which 180 ft and 147 ft, respectively, were
in sandstone with good reservoir properties
in the Tubåen formation. Appraisal well
7219/12-1 A confirmed a mostly equivalent
gas and oil column in the Nordmela and
Tubåen formations with good reservoir
properties. Preliminary estimates of the size
of the discovery are from 5.5 million std m3
to 16 million std m3 of recoverable oil
equivalents. The appraisal and wildcat wells
were drilled to respective depths of 8,120 ft
and 5,905 ft beneath the seabed. Operator
Lundin holds a 35% interest in the license.
Det norske oljeselskap (35%) and DEA
(30%) hold the remaining stakes.
Z Ithaca Energy has started production
from the company-operated Stella field
in the Central Graben area of the United
Kingdom Continental Shelf in the North
Sea. The field comprises the Stella Andrew
sandstone reservoir, containing light oil and
rich gas condensate, and the Stella Ekofisk
reservoir, containing volatile oil. Discovered
by Shell in 1979, the field encountered gas
condensate throughout a 25-ft section
of Paleocene Andrew sand. Oil was also
observed in the underlying Ekofisk chalk
reservoir. Ithaca has a 54.66% interest in
the field, with Dyas (25.34%) and Petrofac
(20%) also holding interests.
Z Statoil has made a new gas discovery
called Valemon West at the Valemon
field offshore Norway, 2 years after the
company-operated field began production.
The recent discovery is estimated to
contain between 20 million BOE and
50 million BOE, Statoil said. The well, which
lies in the North Sea 100 miles northwest
of Bergen, was drilled to a vertical depth
of 14,229 ft below sea level. The company
has a 53.775% interest in the discovery, with
Petoro (30%), Centrica (13%), and Shell
(3.225%) holding the remaining stakes.
MIDDLE EAST
Z Lukoil has found oil at the Eridu 1
exploration well in Block 10 of southern
Iraq. The well flowed at a rate of more
than 6,290 B/D of oil from the Mishrif
horizon during testing and has now
been completed. The discovery confirms
geological expectations of a large
hydrocarbon field to be present in the
Block 10 contract area, the company said.
Exploration continues in the block, with
plans to drill and test the Eridu-2 appraisal
well later this year. Lukoil is the operator
with a 60% interest, and Inpex (40%) holds
the remaining share.
NORTH AMERICA
Z Shell has given the green light to
develop its Kaikias deepwater field in
the United States Gulf of Mexico, the first
such project the company has approved
since Appomattox in July 2015. Located
130 miles offshore Louisiana, Kaikias is
to start production in 2019 and expected
to be profitable at oil prices lower than
USD 40/bbl as a result of a simplified
design that allowed costs to be slashed
by 50%. The Shell-operated project will
be tied into the company’s nearby Ursa
production hub. Kaikias is estimated to
contain more than 100 million BOE of
recoverable resources and in its three-well
first phase is anticipated to produce a peak
40,000 BOE/D. Shell holds an 80% interest
in the project with the remaining interest
held by Mitsui.
SOUTH AMERICA
Z Rosneft has started drilling its first
exploration well in the Solimões Basin
of Brazil’s Amazon region. The company
plans to drill at least four wells in its basin
exploration campaign, with drilling, testing,
and evaluation of the initial well to be
completed in the second quarter of the
year. Rosneft acquired PetroRio’s stake
in the project in 2015 to become its sole
interest owner. JPT
 RISK AND REWARD
Joining Forces for Sustainable Communities
Janeen Judah, 2017 SPE President
Several years ago, I was at a Texas A&M
University football game in a suite spon-
sored by the dean of the College of Agri-
culture, so not my usual engineer crowd.
I introduced myself around, and one of
the other guests said something I still
remember, “I work for the Gates Foun-
dation. My job is to give away Bill Gates’
money.” I remember thinking what a great job! Wouldn’t
everyone love to play Santa Claus with Bill Gates’ billions?
Wouldn’t we all love to be able to have Bill Gates’ impact on the
world as his foundation invests in global development, health
initiatives, and US education?
In a way, we do. Global, multinational companies often make
commitments for local infrastructure as a condition to do busi-
ness in host countries. These infrastructure projects often re-
quire companies to build clinics, schools, roads, and power and
water supplies in areas where the local government cannot or
does not provide them. Oil and service companies are not dif-
ferent—we often build community projects, but they don’t al-
ways last. I have traveled extensively in Africa, and in more
than one country, I have seen faded USAID signs on dilapidated
clinics and schools. US tax dollars set up this needed infrastruc-
ture, but the projects are not sustainable because there aren’t
local agencies with the ability to run them. These development
projects are part of the risk our companies take to do business
in developing nations, and we all hope for a reward for the local
communities with real, sustainable improvements in their lives
because we were there. But these development projects don’t
always work as planned.
I first realized the power of oil company cooperation with
local nongovernmental organizations (NGOs) many years ago
in Latin America. An oil field was located in a rural area about
40 km from a large city. The community had a local elemen-
tary school; but for high school, students had to travel into the
big city. As a result, many local kids didn’t attend high school.
Girls were especially likely to drop out because their parents
were concerned about safety and traveling home often after
dark. There was a real need for a high school in the village near
the oil field.
The operator had made a commitment to invest in the local
community and had already built a health clinic, which the gov-
ernment staffed with local doctors and nurses. The high school
To contact the SPE President, email president@spe.org.
10
was the next priority project, but there was jockeying between
local politicians over who would control the funding and the
school. The operations manager was a career expatriate who
knew that cash handed over to the local government would
evaporate. The solution: Allow nuns to run the school. In Latin
America, everyone could agree on the Catholic Church as hon-
est, professional educators. The operator built a home for six
sisters, including the principal, next to the school, and they ran
the school honestly and with the children in mind. Unfortunate-
ly, the story has a sad ending.
Even with a successful partnership for several years, ulti-
mately, the government became more unstable and failed to
keep up its end of the agreement to both the clinic and the
school. The health ministry stopped paying the medical staff
and providing medical supplies, so the clinic closed.
The high school had become so successful that enrollment
swelled far above capacity, so the nuns ran two shifts of stu-
dents. Unfortunately, the government stopped paying the lay
teachers, providing books and supplies, maintaining the school,
and it also closed. The perfect “three-legged stool”—partner-
ship for implementation and sustainability among industry, an
honest-broker NGO, and a government ministry—failed.
There is certainly a lot of activity worldwide to develop infra-
structure projects through public-private partnerships (PPP).
In Europe and the US, PPPs are used to finance toll roads and
privatize and redevelop utilities and water works. Investors
put up the money in return for a share of the improved proj-
ect’s revenue stream. This is an investment, not aid. In develop-
ing nations, PPPs are often funded by wealthy nations via the
World Bank or regional development banks such as the Africa
Development Bank. Projects include power, transportation/
roads, telecom, water/sanitization, education, and primary
health. World Bank-funded projects have been dominated by
relatively low-risk countries: Brazil, China, India, Mexico, and
Turkey. Oil companies often operate in far less developed coun-
tries, where the financial risk is simply too high for private in-
vestors and development banks. Yet, oil companies are usually
required to include local development as a component of devel-
opment projects.
I believe there is a great opportunity for us as an industry to
partner more with governmental agencies and NGOs to make
our community development projects more sustainable. What’s
different about oil companies?
JPT • APRIL 2017
 ◗ We often operate in far needier countries with literally no
infrastructure.
◗ We are committed to community investment as part of our
concession or project agreements.
◗ We are not interested in a revenue stream or return. We
have no profit motive from the infrastructure investment;
we’ll make our money from production.
◗ We can execute the development project alongside our
projects, taking advantage of our supply chain and
contractors.
◗ We are there to stay for the life of the field or project: 20,
30, 40 years.
Oil companies are excellent at execution. We know how to
manage projects, build facilities, and drill wells. We have exten-
sive supply chains that allow us to import goods into far-flung
countries. NGOs have their special strengths with running clin-
ics or schools, providing front-line medical care and training
local staff. But they often struggle with logistics such as import-
ing specialized material into countries and building facilities.
Governments and ministries are often cash-short and fail to fol-
low through with staffing, maintenance, and consumables such
as medical supplies and books.
In researching this article, I encountered a whole world of
governmental and academic research on sustainable devel-
opment in emerging economies. For example, I suggest you
read about economic history and development in the writings
of Douglass C. North, winner of the 1993 Nobel Prize in eco-
nomic sciences. Of special interest is Violence and Social Or-
ders (2009), in which he explains two types of social orders—
“natural” states and open-access or modern societies.
Also, I met with Andrew Natsios, former administrator of
USAID, and now at Texas A&M University and a world-known
expert in international development. Issues with oil company
local development and government-driven development pro-
grams are strikingly similar. Natsios’ article, “Nine Principles of
Reconstruction and Development” (2005), echoes many of the
main issues oil companies encounter when pursuing local devel-
opment projects and helping to create sustainable communities:
1. Ownership. The community must “own” the project.
2. Capacity building. Transfer of technical ability to deliver.
3. Sustainability. Design projects so their impact endures.
4. Selectivity. Target investment where interests align.
5. Assessment. Design for local conditions.
6. Results. Have an objective before starting.
7. Partnership. Collaborate with government, communities,
private sector, NGOs, etc.
8. Flexibility. Adjust as needed.
9. Accountability. Design accountability and transparency
into the project and guard against corruption.
Sound familiar? Efforts to coordinate private industry, local
development, and governmental agency links are out there: the
Shared Value Initiative (http://sharedvalue.org/), Business for
Social Responsibility (https://www.bsr.org/en/), and the Niger
Delta Partnership Initiative (http://www.ndpifoundation.org/).
Private industry (including oil companies) is doing more to im-
prove on the nine principles, most especially ownership and
JPT • APRIL 2017
Source: Getty Images.
sustainability, so that the impact lives on. In fact, an excellent
example is the “Green Revolution” of the mid-20th century,
in which modern plant hybrids and agricultural methods are
credited with saving the lives of a billion people from starva-
tion around the world, chiefly in Mexico, Pakistan, and India.
Norman Borlaug, 1970 Nobel Peace Prize winner, is credited as
the “Father of the Green Revolution.” It’s worth a quick Internet
search to learn more.
Fundamentally, oil company operators and development or-
ganizations both work on a long-term, 20+ year development
window. Politically motivated development can look for a quick
fix, while sustainable societal change may take a generation.
When oil companies enter a region, we are almost always in it
for the long haul—to develop and produce a long-term asset,
develop local staff to run it, and improve the lives of both the
immediate communities and the overall country’s economy.
We all want a better world. Oil companies are already part-
nering with countries for the long term. Industry and govern-
ments can work together to create real, sustainable improve-
ments in communities and countries where we operate. But,
of course, we can be more successful if we have other organi-
zations partner with us to create sustainable communities. My
example of the programs in Latin America demonstrates what
happens when one link in the chain fails. We can do better;
we achieve greater reward when we work together for a com-
mon cause. JPT
For Further Reading
North, D.C., Wallis, J.J., and Weingast, B.R. 2009. Violence and Social
Orders. Cambridge University Press. http://www.cambridge.org/
catalogue/catalogue.asp?isbn=9780521761734
Natsios, A. 2005. Nine Principles of Reconstruction and
Development. Strategic Studies Institute. Parameters, autumn
issue (accessed 27 February 2017). http://strategicstudiesinstitute.
army.mil/pubs/parameters/articles/05autumn/natsios.pdf
11
 COMMENTS EDITORIAL COMMITTEE
Bernt Aadnøy, University of Stavanger

Syed Ali—Chairperson, Consultant

Tayfun Babadagli, University of Alberta

New JPT Website, Newsletter William Bailey, Schlumberger

Mike Berry, Mike Berry Consulting

John Donnelly, JPT Editor Maria Capello, Kuwait Oil Company

Frank Chang, Saudi Aramco

Simon Chipperfield, Santos

Earlier this year, JPT debuted a new website. Unlike the previous Alex Crabtree, Hess Corporation
rendition of the magazine’s website, which was only a replica of Gunnar DeBruijn, Schlumberger
the print magazine, the new one contains up-to-date informa- Mark Egan, Retired
tion on the latest upstream technology news, trends, and events Mark Elkins, Retired
as well as the full contents of each print issue (www.spe.org/jpt).
Alexandre Emerick,
And last month, JPT debuted a bimonthly e-newsletter, with Petrobras Research Center
links to the latest stories posted on the website. Niall Fleming, Statoil
It is important to note that JPT’s mission, and its monthly Ted Frankiewicz, SPEC Services
print magazine, will not change. We view Stephen Goodyear, Shell
this as a “value add” for members, who
Omer M. Gurpinar, Schlumberger
SPE President and are now accustomed to receiving news
A.G. Guzman-Garcia, Retired
Board Nominations and information in a variety of ways,
Greg Horton, Retired
from print to digital. Surveys of the SPE
The SPE Board of Directors met in membership reveal that members highly John Hudson, Shell
late March to consider nominees value the monthly print edition of JPT Morten Iversen, Karachaganak Petroleum
for the Board of Directors and 2019
and its contents but are also interested Leonard Kalfayan, Hess Corporation
SPE President. The SPE Nominating
in receiving more digital offerings. These Thomas Knode, Contek Solutions
Committee considers all nominations
submitted, votes on a slate of directors,
latest moves hope to satisfy both needs. Sunil Kokal, Saudi Aramco

and recommends it for approval at The contents of the print JPT will remain Marc Kuck, Eni US Operating

the SPE Board’s March meeting. These
nominees stand as elected unless a valid
petition for ballot election is received
by 1 June.
The names of the nominees will
be published on the JPT website on
3 April. In addition, an article will be
published in the May JPT print edition.
Both articles will contain complete
information on nominees’ backgrounds
and qualifications, with additional details
on the election process.
the same, while the website will con- Jesse C. Lee, Schlumberger
tain both the print magazine’s contents Douglas Lehr, Baker Hughes
and additional stories not found in the Silviu Livescu, Baker Hughes
print issue.
Shouxiang (Mark) Ma, Saudi Aramco
Since JPT was launched in 1949, it has
John Macpherson, Baker Hughes
sought to help achieve SPE’s mission of
Stéphane Menand, DrillScan
disseminating and exchanging the high-
est quality upstream technical informa- Graham Mensa-Wilmot, Chevron
Badrul H. Mohamed Jan, University of Malaya
tion valuable to the oil and gas indus-
Zillur Rahim, Saudi Aramco
try and to SPE members. The magazine
has gone through several evolutions— Eric Ringle, FMC Technologies

SPE is governed by a Board of from publishing only full-length techni- Martin Rylance, BP plc

Directors comprising 28 member
representatives from around the world.
Each SPE region and board-endorsed
technical discipline is represented by
a director. These directors, together
with two at-large directors, a director
of academia, the president, president-
elect, immediate past president, and vice
president of finance, constitute the Board.
cal papers to covering more than four
dozen technical topics in depth through
summaries of the best SPE papers and
through staff-written feature articles.
The current changes are just another
step in this evolution.
We hope you will take a look at the new
website and, as always, we welcome your
suggestions and comments. JPT
Robello Samuel, Halliburton
Otto L. Santos, Retired
Luigi A. Saputelli, Frontender Corporation
Sally A. Thomas, Retired
Win Thornton, BP plc
Xiuli Wang, Baker Hughes
Mike Weatherl, Well Integrity
Scott Wilson, Ryder Scott Company
Jonathan Wylde, Clariant Oil Services

Robert Ziegler, Weatherford

To contact JPT’s editor, email jdonnelly@spe.org.

12 JPT • APRIL 2017

 S C I E NT I F I C D R I L L I N G I NT E R N AT I O N A L’ S
PROPRIETARY TECHNOLOGIES HAVE PROVIDED

I N D U S T RY L E A D I N G
PERF
E RM ANCE
PERFORM N E &
ER
VE SATIL
ATIL IT Y
R SATILIT
F
FOO R OVE
OV ER
R 4
488 Y
YEA
E A RS
RS
D BUSINESS THE SCIENTIFIC
DO SC C WAY

Est. 1969 For more information, please visit: www.scientificdrilling.com

 GUEST EDITORIAL

Needed: Radical Efficiencies

Martin Craighead, Chairman and Chief Executive Officer, Baker Hughes

During my 35 years in the upstream oil vulnerable to the cycles and volatility we
and gas business, I have seen firsthand constantly experience.
the tremendous gains in efficiency, pro-
ductivity, and cost reduction that the The Gaps
industry has achieved through innova- To put context around the efficiency and
tion and technology. Drilling and com- productivity gaps that currently exist in
pletion times have been shortened dra- our industry, we need look no further
matically, wells perform much better than hydrocarbon recovery factors. There
than they used to, we are drilling even- are currently 1.5 trillion bbl of proven
longer laterals, and we are able to operate reserves globally. Yet average recovery
in increasingly hostile conditions. As we factors are less than 30% across all oper-
have seen during the current downturn, ating environments, and less than 10% in
these types of gains have been critical to deep water—shocking statistics. We are
survival for many operators. leaving a lot of value in the ground.
Despite our progress, we face a press- Equally shocking is that, by some esti-
ing need to close the sizable efficiency mates, the industry is at best 50% effi-
and productivity gaps that continue to cient along the entire spectrum of E&P
hinder performance and value creation costs when nonproductive time (NPT) is
industrywide. These gaps limit profit- taken into account. NPT continues to be
ability during growth cycles and exac- one of the largest challenges facing oper-
erbate vulnerability during downturns. ators. Although many gains have been
We must fundamentally change the way made in this space, delving into the details
we operate to be sustainably successful reveals that the cumulative NPT, as well as
going forward. the invisible lost time of all participants in
The good news is that we have a very a particular project, are significant. This
powerful tool in our arsenal to reset the takes into account the efficiency perfor-
bar in these areas. That tool is technol- mance of all players involved in the value
ogy. It can lead us to what we at Baker chain. What is more, performance may
Hughes like to call “radical efficiencies” vary at the country or even basin level for
in well construction and oil and gas pro- similar customers or service providers.
duction that will create a more profitable All of this unpredictability and ineffi-
and resilient industry—one that is less ciency often translates into hundreds of
Martin Craighead is chairman and chief executive officer of Baker
Hughes Incorporated. He joined Baker Hughes in 1986 and, during
his career with the company, he has had various technical and
operational leadership responsibilities throughout the Americas
and the Asia Pacific region, including 3 years as group president
of the Drilling and Evaluation business unit. Craighead holds the
International Executive Master of Business Administration degree
from Vanderbilt University and earned a BS degree in petroleum
and natural gas engineering from Pennsylvania State University. He is the recipient of
the 2015 Alumni Fellow Award at Penn State and the 2010 C. Drew Stahl Distinguished
Achievement Award at Penn State.
hours of downtime and millions, or even
tens of millions, of dollars per project,
which could mean the difference between
profitable and uneconomic outcomes at
today’s prices.
Perhaps the most disturbing met-
ric is return on invested capital perfor-
mance (ROIC), which is considered the
best measurement of long-term value for
commercial entities. Bloomberg’s track-
ing of ROIC across the upstream oil and
gas industry for the period 2009–2014
shows that, even during that growth
cycle, integrated companies and national
oil companies marginally exceeded their
return on cost of capital by around 2 to 3
percentage points, while North American
independent operators actually under-
performed by 4 to 5 percentage points.
So, we can’t blame subpar performance
purely on the downturn.
Achieving Radical Efficiencies
It is my strong belief that efficiency and
productivity must improve radically for
the industry to both meet demand and
create value for shareholders. Our com-
pany is improving the technical capabil-
ity and performance of existing products
while investing in research into designer
chemistry and materials science that can
change the actual physical properties of
things; digitization, automation, and vir-
tualization leading to tools that can think,
act, and heal themselves before problems
arise, without the need for human inter-
vention; and additive manufacturing,
which can deliver better designs faster
and with more flexibility. Early results of
this research are very promising.
For example, our chemists are study-
ing ways to treat hydrocarbons at the
molecular level before they come out of
the ground through in-situ manipulation

14 JPT • APRIL 2017

 Integrated
14
12 11.2
10 9.0
8
6.1
6
(%)
4
2.2 PPTs
2
0
–2 Return on Invested Capital (ROIC)
Weighted Average Cost of Capital (WACC)
–4
ROIC less WACC
–6
Notes:
(1) Simple average of ROIC and WACC for companies in each operator segment over 2009–2014.
(2) Integrated companies are: ExxonMobil, Chevron, BP, Shell, Total, Repsol, and ENI. North America Independents—Oil are: Pioneer, Devon, Apache, Whiting, Oxy, Noble, and EOG.
North America Independents—Gas are: Chesapeake, Gulfport, Encana, Southwestern, and Antero. National Oil Companies are: Petrobras, Ecopetrol, YPF, Rosneft, Lukoil,
Gazprom, Statoil, CNOOC, Sinopec, Petrochina, Petronas, and Peramina.
Oil and gas return on invested capital performance, 2009–2014. Source: Bloomberg.
to improve recovery factors and reduce
refining costs. Another exciting area of
research is shape-memory alloys, which
can change their shape bi-directionally
multiple times, based on external stim-
uli such as heat or an electrical charge.
These materials will have far-reaching
implications for drilling and completions
products that will save time, use fewer
parts, and reduce complexity.
Another step change in efficiency and
productivity comes from advancements
in data mining and analytics, which
are digitizing the oil field. More sen-
sors gather more data from more sourc-
es. Through increased computer power,
which can cut analysis time dramatically,
and advanced algorithms, we will be able
to conduct more realistic simulations of
the entire reservoir. Imagine the power of
having the reservoir in virtual form, with
the ability to test millions of variables to
make the best possible decisions, leading
to the best outcomes. And then imagine
if the computers and models made the
decisions and changed the behavior—
without the need for human interven-
tion. That is where automation comes in.
We have made great strides over the
past 20-plus years to automate certain
processes, such as drilling systems, which
have allowed us to drill complex well
paths while accessing more of the reser-
voir than ever before, but we have only
scratched the surface of what is possible.
We are working on technologies that will
enable tools to think, act, and heal them-
selves, all in the interest of dramatically
JPT • APRIL 2017
North America North America
Independents—Oil Independents—Gas
11.0
10.3
6.3
–4.1 PPTs
–4.8 PPTs
improving the quality of our products and
the reliability of our service while reduc-
ing our dependency on human capital.
In the realm of additive manufactur-
ing, the benefits of 3D printing are well
known: better designs, with fewer com-
ponents to weld together; improved per-
formance, longevity, and reliability; faster
time to market; and distributed manu-
facturing nearly anywhere in the world
and closer to the point of use. The prac-
tical implementation of this technology
in the oil and gas industry is still in the
nascent phase. Bottlenecks today are due
to available materials, size of the printing
machines, and the ability to produce com-
ponents at scale in a repeatable way.
Nevertheless, the breakthroughs we
foresee from our research and work in this
area are staggering, and not just in terms
of printing larger components, which we
do expect. In fact, very soon we will be
able to print drill bits. At the opposite end
of the spectrum, we expect to print at a
nano scale at the wellsite. The potential of
this technology to improve productivity
and efficiency is very exciting.
Not Science Fiction
In-situ manipulation and drilling and
completion systems that can change
shape downhole, adaptable drill bits,
tools printed on demand, and automated
reservoir modeling and behavior—these
may sound like the stuff of science fic-
tion. But, the opportunity is there, and so
is most of the technology. It is a matter of
tying these components together.
National Oil Companies
12.6
9.2
3.4 PPTs
It will be the responsibility of technol-
ogy providers to invest in research and
development of new materials, chemis-
tries, and processes that will enable the
radical efficiencies the industry needs to
be more resilient to the inevitable vola-
tility we face. And, it will be the respon-
sibility of E&P companies to aid in the
investment and be open to adopting the
technologies that investment produces.
HSE: A Mandate
Just as we need to raise the bar for what
is acceptable and what we believe is pos-
sible for productivity and efficiency, we
also need to raise the bar for what is
attainable for health, safety, and the envi-
ronment (HSE). HSE standards and pro-
cesses, effectively communicated and
universally adopted and applied, actually
contribute to efficiency and productiv-
ity by reducing risk, NPT, and deferred
production. Efficiency can, and should,
be safe. Productivity can, and should, be
environmentally benign. When it comes
to HSE incidents, we have to expect zero.
And settle for nothing less.
I am very optimistic about the future
of our industry, because I believe that
through technology advancements such
as those I have mentioned here, we can
become more resilient and less vulner-
able to the extreme cycles and volatility
that we constantly experience. By work-
ing with radical efficiency, intelligence,
and safety, we can continue to meet world
energy demand and create value safely
and sustainably well into the future. JPT
15
 TECHNOLOGY APPLICATIONS
Chris Carpenter, JPT Technology Editor
Clutch Brake
The Posidyne Clutch Brake, which can
provide years of service with no adjust-
ment and no maintenance required, is
now available in a piggyback design for
areas where an inline clutch brake is
not suitable because of space constraints
(Fig. 1). The clutch brakes are designed
to provide start/stop indexing for high-
cycle, severe-duty applications in which
high reliability is critical and downtime
costly. Allowing the motor to run con-
tinuously provides high-cycle capability
up to 300 cycles/min, improves efficien-
cy, eliminates in-rush current, reduces
cyclic inertia by not cycling the motor
armature, and reduces maintenance
costs. The basic Posidyne is designed
as a foot-mounted clutch brake in an
enclosed cast-iron housing with input
and output shafts. The Posidyne 1.5 is
a lightweight C-Face model with a quill
input shaft and standard output shaft,
and the Posidyne X Class is a value-
engineered C-Face unit with quill input
and standard output shaft. All consist
of a clutch stack and brake made up of
alternating friction discs connected to
the output shaft, drive plates connected
to the input shaft or housing, and a cen-
trally located air or hydraulically actuat-
Fig. 1—Posidyne’s piggyback clutch
brake.
16
Fig. 2—The TransCoil rigless-deployed ESP system, developed by Baker Hughes
in conjunction with Saudi Aramco, reduced ESP installation time and overall
workover costs by more than 50% in a Middle East field.
ed piston to exert pressure on either the
clutch stack or brake stack.
◗ For additional information, visit
www.forcecontrol.com.
Rigless-Deployed Electrical-
Submersible-Pumping System
Saudi Aramco and Baker Hughes intro-
duced the TransCoil rigless-deployed
electrical-submersible-pumping (ESP)
system, which is designed to help oper-
ators bring wells on production fast-
er and lower the costs associated with
installing and replacing ESPs. Because
they can eliminate the need for a rig
in fields where rig availability is a con-
cern or where high intervention costs
can limit artificial-lift options, operators
can minimize deferred production and
lower their overall lifting costs to extend
the economic life of their assets (Fig. 2).
The system features an inverted ESP sys-
tem with the motor connected directly
to a proprietary power-cable configu-
ration, eliminating the traditional ESP
power cable-to-motor connection, which
improves overall system reliability. Unlike
wireline-deployed ESPs, the fully retriev-
able system does not have an in-well wet
connection, which requires a rig to pull
and replace if the wet connection fails.
The power-cable design enhances the
reliability of the deployment string com-
pared with coiled-tubing-deployed ESPs
that simply pull the power cable through
the coiled tubing. Extensive fatigue test-
ing and thermal growth analysis were
conducted to enhance materials selection
and system design. The TransCoil system
cable design also extends the operating
range to 12,000 ft compared with tradi-
tional coiled-tubing-deployed ESP sys-
tems, which are limited to approximately
7,000 ft.
◗ For additional information, visit
www.bakerhughes.com.
Hammerless Connection
Hammer unions often pose serious safe-
ty hazards to facilities personnel. R&H
Manufacturing’s SaferUnion hammerless
connection eliminates these hazards by
removing the presence of the hammer,
thereby eliminating the risk of fragments
being knocked loose, hammers coming
into unplanned contact with one another,
and the wings/ears being angled in ways
that do not allow safe access (Fig.  3).
Removal of the hammer also reduces
the risk of equipment being damaged
by overtightening and hammer misuse.
This single-person tool connects to the
SaferUnion by a pin in each hole, locking
into the keyway in the tool. The tool is
JPT • APRIL 2017
 AquaWatcher
WATER ANALYSIS SENSOR

The AquaWatcher sensor can be deployed stand alone

or installed anywhere in the subsea production system.

Bring more production online faster.

Using a unique electromagnetic measurement-based approach, the AquaWatcher* water analysis
sensor detects and characterizes water in multiphase flow and wet gas with part-per-million
precision in as little as 1 microsecond.
This expedited insight can help you optimize your chemical inhibition strategy, improve production
management decisions, and get more return from your offshore investment.

Find out more at

onesubsea.slb.com/AquaWatcher

*Mark of Schlumberger. © 2017 Schlumberger. All rights reserved. 16-OSS-227101


Fig. 3—The SaferUnion hammerless
connection from R&H Manufacturing.
simply turned 90° and slightly pulled to
lock in place; the process is reversed to
unlock the tool. The connection is safer
to handle during makeup and break-
out owing to its balance, weight, and
a full 360° handling surface. Standard
hammerless unions have three wings,
with impact points located every 120°.
SaferUnion’s patented pattern increases
accessibility, with points located every
45°. The tool fits all sizes, and its length
requires personnel to be safely out of the
liquid-spray zone.
◗ For additional information, visit
www.rhmachinellc.com.
Fig. 4—ProOne’s Diamond Dust drilling-fluid conditioner improves drill-
cuttings cleaning and reduces drillstring corrosion.
18
Drilling-Fluid Conditioner
ProOne introduced the Diamond Dust
two-in-one drilling-fluid condition-
er. Dispersed in either water- or oil-
based muds, the powder combines an
asphalt’s benefits with enhanced lubri-
cation. With benefits for laterals, verti-
cals, and curves, it provides lubricity and
increased high-temperature fluid-loss
control under extreme pressure while
enhancing shale inhibition and stabiliza-
tion (Fig. 4). Additionally, it enables a fil-
ter cake that is thin, tough, and slick, as
well as decreases mud-pump downtime
and extends bit life. The conditioner fur-
ther extends the attributes of ProOne’s
XPL+ drilling-mud additive by improv-
ing drill-cuttings cleaning and reducing
drillstring corrosion. It is well-suited for
seepage and lost-circulation-material
control and is environmentally friendly.
In combination with XPL+, Diamond
Dust allows a variety of enhancements,
Fig. 5—Weatherford’s SafeShield 5M
from 70% friction reduction to improved RCD is nitrogen-tested to American
rate of penetration with potential savings Petroleum Institute 16RCD criteria,
of up to USD 1 million per well. which validates its use in pure gas
◗ For additional information, visit environments.
www.pro1energy.com.
ogy. The SafeShield 5M RCD creates a
Rotating Control Device pressure-tight barrier in the wellbore
Weatherford brings enhanced capabili- annulus to contain and divert drilling
ties to onshore drilling by incorporat- returns in onshore liquid and gas wells
ing design elements from proven marine (Fig. 5). The single-platform RCD stream-
rotating-control-device (RCD) technol- lines equipment management because
it supports a wide range of applications
and pressures. Compared with previous
models, the RCD offers a shorter stack
height, a larger through-bore diameter
of 8¼-in., and higher pressure ratings
up to 5,000 psi. Other enhancements
include a remote latching system that
enables installing and removing the bear-
ing assembly without manual handling
below the rig floor. Additionally, a self-
lubricated bearing assembly eliminates
the requirement for an external hydraulic
lubrication unit and the need to connect
lubrication lines. A rotating flange reduc-
es rig-up time, and an interchangeable
bowl adapts to a range of flange configu-
rations. When combined with an electric
set-point choke, the RCD enables proac-
tive pressure management for diverse
onshore drilling operations. JPT
◗ For additional information, visit
www.weatherford.com.
JPT • APRIL 2017
Real change
starts here
TechnipFMC is a new and dynamic force in energy.
We have the size, experience, and capabilities to
transform the industry in pursuit of new possibilities
and improved project economics. Our ability to innovate
is testament to what’s possible when you shake off the
bounds of convention.

We’re thought leaders, but we don’t just think – we act.

Working closely with partners and clients, we leverage
technologies, expertise, and innovation to deliver fresh
thinking, streamlined decisions, and smarter results.

From concept to project delivery and beyond, we’re

driving the change the oil and gas industry needs.

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Visit booth 1039 at OTC Houston.
 TECHNOLOGY UPDATE
Adjustable, Supramolecular Viscosity Modifiers
as Displacement Fluids in EOR
Mustafa Akbulut, Texas A&M University, and Cenk Temizel, SPE, Aera Energy
We report a novel type of viscosity modi-
fier relying on the supramolecular assem-
blies that have pH-adjustable viscosities
and robust tolerance against high tem-
peratures and salinities, and are resistant
to shear-induced degradation. This tech-
nology is developed collaboratively by
Texas A&M University, Incendium Tech-
nologies, and VaalbaraSoft.
When reservoir oil is displaced by
plain waterflooding, the injected water
fingers through the reservoirs because
of the high mobility ratio (Rachford Jr.
1964). Water fingers leave most of the
oil behind, which leads to inefficient oil
recovery. Hence, the viscosity modifiers
are often added in the displacing fluid,
(i.e., water) to better match the viscos-
ity of reservoir oil and enable a uniform
advance of the waterfront to effectively
sweep the reservoir oil.
Currently, for oil recovery applica-
tions, most commonly used viscosity
modifiers are water-soluble polymers
such as hydrolyzed polyacrylamide, poly-
vinyl alcohol, and poly(vinylpyrrolidone)
(Taylor and Nasr-El-Din 1998). Like-
wise, water-soluble biopolymers, in par-
ticular polysaccharides such as xanthan
and guar, are also used in some fields
(Alquraishi and Alsewailem 2012).
Current Technology Limitations
While the above-mentioned viscosi-
ty modifiers can satisfy part of the oil
recovery needs, these polymers still
experience some challenges that hinder
their effectiveness. For example, when
the viscosity of reservoir oil is high, so
should the displacing fluid be to match
the mobility ratio. The current heuristics
suggest that polymer flooding should be
applied in reservoirs with oil viscosities
between 10 and 150 cP (Taber et al. 1997).
20
The key factor limiting the recom-
mended range is that for oil viscosities
greater than 150 cP, the injected-water-
viscosity values required for a favorable
mobility ratio correspond to prohibi-
tively low values of polymer injectivity.
In addition, pumping high-viscosity dis-
placing fluids tends to lead to clogging
in oil wells, which results in a major eco-
nomic well operating loss.
One potential solution is to use dis-
placement fluids with an adjustable vis-
cosity, with the fluid having a low vis-
cosity at the injection site and a high
viscosity upon reaching the oil phase.
Furthermore, having an adjustable-
viscosity displacement fluid can help
to reduce pumping-related operational
costs because pumping efficacy general-
ly decreases as fluid viscosity increases.
The above-mentioned polymers do not
offer viscosities that can be controlled in
such a fashion.
It is also well-established that both
polymer- and biopolymer-based viscos-
ity modifiers usually degrade under high
salinity and high temperatures. Likewise,
high shear rates experienced during the
flow of displacement fluids can lead to
a shear-induced breakage of polymer
chains. Such chemical fragmentation is
accompanied by the permeant loss of vis-
cous properties.
Limitations Overcome
In this work, we describe a novel adjust-
able viscosity modifier that can over-
come the limitations of polymer-based
viscosity modifiers. The technology is
based on the complexation and supra-
molecular assembly of a long-chain
amino-amide and a dicarboxylic acid.
There are several key advantages of
this viscosity modifier.
1. It allows the increase of viscosity
by 12-fold by means of changing pH
from 4 to 8 in a reversible manner.
2. Many oil reservoirs contain connate
water with high concentrations
of sodium chloride and divalent
ions. Hence, high salt tolerance
is a critical factor in the design
of viscosity modifiers. For the
supramolecular solution, there
is no significant change (<10%)
in the viscosity observed up to
5 wt% salinity at typical shear rates
experienced during the sweeping
processes.
3. In oil reservoirs, the temperature
increases with depth because of
the geothermal gradient. Hence,
viscosity modifiers should have
high tolerance and low sensitivity
to temperature. The viscosity of
a supramolecular solution is less
sensitive (about three times so) to
temperature changes than that of
polyacrylamide solution.
4. For a given pH, the viscosity of the
supramolecular solution can also be
strongly controlled, in the range of
100–100,000 cP, with the solution
concentration.
5. Supramolecular assemblies involve
weak intermolecular interactions
(“physical bonds”) rather than
covalent bonds, as in the case of
polymer chains. Hence, while
polymers permanently degrade
and break up upon experiencing
sudden extreme shear stresses
and temperatures, supramolecular
solutions merely disassemble and
reassemble. For instance, when
high-molecular-weight polymer
macromolecules are forced to flow
into narrow channels and pores,
JPT • APRIL 2017
 Water
0.5

0.4
Fraction of Oil Recovered

0.3
Host Supported By
pH 4
0.2 pH 6
pH 8

0.1
2017 CALL FOR PAPERS
0.0
0 1 2 3 4 5
NOW OPEN
(a) Injected Volume (ml)
FINAL DATE FOR ABSTRACT SUBMISSIONS TUESDAY 2 MAY 2017
www.adipec.com/cfp
Hydrolyzed Polyacrylamide (0.4 wt%)
0.6

0.5
Fraction of Oil Recovered

0.4

0.3
pH 4
pH 6
0.2 pH 8

ADIPEC CONFERENCE IN NUMBERS:

0.1

0.0
0 1 2 3 4 5
(b) Injected Volume (ml)

Supramolecular Viscosity Modifier (0.4 wt%) 10,000+ 162 850+

0.8 CONFERENCE CONFERENCE EXPERT
DELEGATES SESSIONS SPEAKERS
0.7
Fraction of Oil Recovered

0.6 TECHNICAL CONFERENCE PROGRAMME CATEGORIES:

0.5 DRILLING AND COMPLETION PEOPLE AND TALENT
TECHNOLOGY PETROLEUM ADVANCED
0.4 pH 4 E&P GEOSCIENCE ANALYTICS
pH 6 FIELD DEVELOPMENT PRODUCTION FACILITIES
0.3 pH 8 GAS TECHNOLOGY TECHNOLOGIES
0.2 HSE PROJECTS ENGINEERING
IOR/EOR AND MANAGEMENT
0.1 OFFSHORE AND MARINE UNCONVENTIONAL RESOURCES
OPERATIONAL EXCELLENCE
0.0
0 1 2 3 4 5
(c) Injected Volume (ml) DON’T MISS THE OPPORTUNITY TO SPEAK AT ONE OF THE LEADING
OIL AND GAS CONFERENCES AND EXHIBITIONS IN
Fig. 1—A comparison of oil recovery efficiency using sand
column experiments at various pH values for (a) water, ASIA, AFRICA, EUROPE AND MENA REGIONS
(b) 0.4 wt% polyacrylamide solution, and (c) 0.4 wt%
supramolecular gellant solution. Source: Texas A&M
University.

Host City Official Media Conference ADIPEC

Partner Organiser Organised By

JPT • APRIL 2017

 Smart Solution
Pump
Low
Viscosity
High
Viscosity
Fig. 2—The concept of using adaptable amphiphiles for controlling the viscosity
of injected water in enhanced oil recovery. Source: Texas A&M University.
molecular scission processes may
take place (Muggeridge et al. 2014).
Supramolecular solutions can adapt
to the confining environment.
Hence, supramolecular solutions
can be considered as healable
polymer solutions in a way.
Oil recovery efficiencies of water,
supramolecular viscosity modifier
22
Smart Solution
Pump
Low
Viscosity
Acid
or Base
Slug
High
Viscosity
(0.4  wt%), and polyacrylamide solution
(0.4 wt%) are compared at three differ-
ent pH values using laboratory sand col-
umn experiments (Figs. 1a through 1c)
(Chen et al. 2014). The supramolecular
solution shows a much higher displace-
ment efficiency compared with water
and polyacrylamide solution at basic
pHs. Based on these trends, this technol-
ogy is envisioned for use mainly in basic
oil fields such as carbonate reservoirs.
The concept of using these novel gel-
lants in oil recovery applications is that
the viscosity of the injected system will
be maintained at initially low values for
easy injection and efficient pumping, and
then increased by means of an external
pH stimulus just before contacting oil
(Fig. 2). The pH change can occur either
naturally if the reservoir is basic such as
a carbonate reservoir or can be induced
externally using an acid or base slug.
Overall, there is a significant potential
for application of supramolecular solu-
tions in the United States and throughout
the world. This is especially important
because the current analysis indicates
that 50% of the oil produced in the US
and the world in the next 20 to 25 years
will occur through the use of enhanced-
oil-recovery technologies. JPT
References
Alquraishi, A.A. and Alsewailem, F.D. 2012.
Xanthan and Guar Polymer Solutions
for Water Shutoff in High-Salinity
Reservoirs. Carbohydr. Polym. 88 (3):
859–863. http://dx.doi: 10.1016/
j.carbpol.2012.01.022
Chen, I., Yegin, C., Zhang, M. et al. 2014.
Use of pH-Responsive Amphiphilic
Systems as Displacement Fluids
in Enhanced Oil Recovery. SPE
J. 19 (6) Preprint. http://dx.doi.
org/10.2118/169904-PA
Muggeridge, A., Cockin, A., Webb, K. et
al. 2014. Recovery Rates, Enhanced Oil
Recovery and Technological Limits. Phil.
Trans. R. Soc. A. 372 (2006) http://dx.doi.
org/ 10.1098/rsta.2012.0320
Rachford Jr., H.H. 1964. Instability in
Waterflooding Oil From Water-Wet
Porous Media Containing Connate Water.
SPE J. 4 (2): 133–148. http://dx.doi.
org/10.2118/684-PA
Taber, J.J., Martin, F.D., Seright, R.S. 1997.
EOR Screening Criteria Revisited–Part
1: Introduction to Screening Criteria and
Enhanced Recovery Field Projects. SPE
Res. Eng. 12 (3): 189-198. http://dx.doi.
org/10.2118/35385-PA
Taylor, K.C. and Nasr-El-Din, H.A.
1998. Water-Soluble Hydrophobically
Associating Polymers for Improved Oil
Recovery: A Literature Review. J. Pet. Sci.
Eng. 19 (3–4): 265–280. http://dx.doi.
org/10.1016/S0920-4105(97)00048-X
JPT • APRIL 2017
E&P NOTES

Artificial Intelligence Holds Promise for Seismic

and Drilling Data
Stephen Whitfield, Senior Staff Writer

As the oil and gas industry forges a
new landscape in the wake of the finan-
cial downturn, an expert argued that
artificial intelligence (AI) technolo-
gies could potentially have a disruptive,
valuable impact on operations in the
near future.
In a webinar hosted by SeeAlgo, an
AI consulting firm, Adnan Siddiqui dis-
cussed the ways in which AI and machine
learning can improve project efficiency.
Siddiqui, a principal at SeeAlgo, exam-
ined AI technology’s potential roles in
several facets of oil and gas operations
including seismic interpretation and
well control event prediction.
Siddiqui presented a paper, “Enter-
prise AI Vision 2020 for Oil and Gas
Capital Project,” co-authored with Tar-
lan Mammadov, an information manage-
ment consultant and principal at Deep-
Knowledge. The paper outlined a plan
to widely integrate AI into development
projects by the year 2020.
Machine learning is an AI technique
that allows computers to handle new
situations through analysis, and self-
training observation and experience.
The technique relies on the application
of mathematical concepts, primarily sta-
tistics and linear algebra, to process,
analyze, and predict future courses of
action based on past data.
In recent years, various industries
have built on the algorithms designed for
machine learning to develop a subset of
deep learning techniques that allow com-
puters to make decisions about data in
large multilayer neural networks. Exam-
ples of deep learning systems include lan-
guage translation websites, image search
engines, and recommender websites
like Netflix or Amazon, which use algo-
rithms to discover hidden relationships
in data and provide suggestions based
on that data.
Siddiqui said a major challenge with
any deep learning technique is that it
requires significant amounts of data to
be effective.
“The key is not really who has the bet-
ter algorithm, but it’s who has the better
data,” Siddiqui said. “That’s something
for those of you who are evaluating and
thinking about artificial intelligence. You
need to be careful, as you look to explore
other avenues, that you have enough
data. If you don’t have enough data, the
models will not really give you the prom-
ised performance.”
Siddiqui argued that machine learning
can be utilized throughout the stage gate
process for oil and gas projects, and that
many organizations already have some
AI technologies in place to integrate into
the project development process.

High-level
goals
Feature Unsupervised Fault detection Interpretation
engineering learning of and correction options
and extraction characteristics models generation

Seismic
record set

Selected and Basin setting

Interpretation
merged data Major structural
option maps
set components,
etc.

Human
interpreter
review and
Fig. 1—A machine learning flow chart illustrates how machine learning systems can process seismic data sets selection
with other models to help streamline the interpretation process. Source: SeeAlgo/DeepKnowledge.

JPT • APRIL 2017 23

 Siddiqui divided the AI-enabled
systems for a typical project into two
categories:
◗ Overall project productivity:
project information management,
knowledge discovery, and change
impact assessment systems
◗ Discipline-specific tasks:
management of design data
consistency, document review,
seismic interpretation, well drilling
event prediction, and construction
and fabrication quality assurance.
In their paper, Siddiqui and Mam-
madov argued that the use of machine
learning for overall project productiv-
ity enhancement should help “make the
sum of the individual parts that com-
prise the project more valuable.” To that
end, AI systems would increase collabo-
ration, knowledge sharing and discovery,
and task integration. The use of machine
learning for discipline-specific tasks
would improve productivity, increase
Ignored Signal During Hydraulic Fracturing Offers
Instant Feedback
Trent Jacobs, JPT Digital Editor
A Denver-based startup company is try-
ing to fine-tune a technique that would
give shale producers instant gratifica-
tion by explaining one small aspect of
the behavior of fracturing fluids during a
horizontal well completion.
The subject of this research is known as
the water hammer effect and, though oth-
ers have investigated, no one has yet made
complete sense of it. Founded in 2014, the
oil and gas analytics firm Well Data Labs
recently completed a study that aimed to
get closer to unraveling the mystery.
Because the signature of the water ham-
mer signal is determined by the makeup
of the wellbore and near-wellbore frac-
tures, the engineering team behind the
research believes the raw data can be
crunched into a report that describes the
quality of a well’s connectivity with the
producing reservoir.
From there, engineers could draw con-
clusions on how much proppant or sand
was really placed into a particular stage
and do so quickly.
24
quality, and reduce the time required for
tasks in specific disciplines such as facili-
ties design.
In the data system for a typical oil and
gas project utilizing an AI model, own-
ers, suppliers, and contractors capture
input data on documents and store them
in servers, along with various industry
standards and regulations. The output
data include various reports and evalua-
tions like a gap analysis.
Siddiqui said many of the applications
were traditionally done with some rule-
based system or a system that did not
require a lot of intelligence-gathering.
However, AI models would not force
companies to employ a data system radi-
cally different from a traditional system.
“If we start looking at how we can
use that [information] among the various
stages of a project, you can start looking
at classical systems, so you have project
information portals. You look at discov-
ering past knowledge and concept gen-
7000
6000
Testing Pressure (psi)
5000
4000
3000
2000
1000
107:00 108:18 109:36 110:54
Stage Time0 (mm:ss, 1-Second Detail)
Plots representing a pressure pulse known as the water hammer in a Wolfcamp Shale well
in Texas show distinct properties when pressure pumps shut down. New research seeks to
find out what those properties mean about the well’s completion. Source: Well Data Labs.
“The main advantage here is that the
data is already being collected on every
job,” said Josh Merritt, a petroleum engi-
neer with the company. He explained
eration, change impacts, getting project
data, reviewing the documents, and then
support,” Siddiqui said.
Siddiqui and Mammadov listed sev-
eral areas where machine learning mod-
els could have a transformative effect on
the industry. For instance, a model could
help operators streamline the process for
evaluating, scoring, and combining seis-
mic data sets for interpretation. Fig. 1
illustrates the structure in which AI pro-
vides the information needed for humans
to review and determine the best model
for the subsurface geology of a field.
Machine learning models can also help
with well drilling event prediction. Sid-
diqui and Mammadov wrote that, by
merging existing predictive analytics
systems for equipment performance and
maintenance into a larger analytic sys-
tem centered on the Internet of Things,
operators may be able to significantly
reduce, or even eliminate, equipment-
related downtime.
112:12 113:30 114:48 116:06 117:24 118:42 120:00
the water hammer effect occurs when-
ever there is a sudden change in the
velocity of the fracturing fluids being
pumped downhole.
JPT • APRIL 2017
 Most often this happens as the pressure pumps slow their
rate or shut off, sending a pressure pulse through the well-
bore. When that pulse is reflected back to surface, it is record-
ed by sensors or gauges, although Merritt pointed out the
data are rarely used as a meaningful input.
Well Data Labs will be sharing the results of its study which
it says identified clear trends based on the water hammer sig-
nal in a technical paper at the SPE Oklahoma City Oil and Gas
Symposium being held 27-31 April.

Telling Differences
If the water hammer signal is proven to be a reliable diagnos-
tic tool, engineers would potentially have another justifica-
tion to make on-the-fly adjustments to their hydraulic frac-
turing designs. Additionally, they may be able to use this data
point to help predict a well’s productivity or integrate it with
hydraulic fracturing and reservoir models.
Jessica Iriarte, a petroleum engineer with Well Data Labs,
said the company’s interest in the water hammer signal
was piqued as it began seeing substantial differences in
the strength of the signals between its clients’ data. It
turned out that most of the disparity could be explained by
whether a horizontal well used sliding sleeves or plug-and-
perfs—the two most common completion approaches in the
shale sector.
“That was very interesting to us and is actually how the
whole study started,” said Iriarte, adding that the research
has since revealed there are a number of other determining CUSTOM-DESIGNED
factors beyond downhole mechanisms. “Our aim now is to
identify what is affecting that signal, and we see that some-
SENSOR SOLUTIONS.
times it might be the completion, sometimes it might be the
fractures, or it could be reservoir properties.”
PROVEN RELIABILITY.
Among the study’s findings is that wells using sliding
sleeves have a far more consistent water hammer signal than At Pyromation, we’re dedicated to serving
wells using plug-and-perf, which showed variations for each the Oil & Gas industry with a comprehensive
fracturing stage. In the latter group of wells, the company line of RTDs, thermocouples and thermowell
determined that when no signal was received at the end of assemblies. Our highly engineered,
treating a stage, it meant that the proppant was not success- custom-designed solutions meet industry
fully placed.
certifications and provide superior quality
For certain wells, the company was able to correlate a
higher decay rate and amplitude of the signal to interwell control. Find out how we can meet your
communication, an indicator of a possible frac hit. Thir- temperature sensor needs.
ty-day production rates were also examined and tied to
faster decay rates, which was theorized to be a result of
formation permeability and the size of the fracture net- GET A QUOTE!
work area. pyromation.com/oilandgas
Merritt said that in addition to production data, its clients’
chemical tracer results were also used as validation. “It was
260.209.6341
really neat to see some of those things line up as we put the
data in,” he said.

Limitations and Future Study

Though this study has yielded some new insights, there
remain too many unanswered questions to use the water
hammer signal in real-time decision making. One of the
remaining hurdles involves figuring out a way to calibrate NEC Rated · FM/CSA Approved

JPT • APRIL 2017

 sis of the signal to fit the particulars of
each area or formation interval being
drilled and completed.
Another possible limiter involves how
many perforations are used per clus-
ter stage. The study suggests this diag-
nostic approach is more applicable to
wells designed with single-entry clus-
ters, meaning there was only one perfo-
ration per stimulated cluster. One perfo-
ration reduces the noise and increases
the certainty of the correlations.
PDC Optimistic About Wattenberg, Delaware Assets
Stephen Whitfield, Senior Staff Writer
Since selling its assets in the Marcellus
in 2014, PDC Energy has undergone a
major strategic shift in its hydraulic frac-
turing operations, focusing primarily on
its acreage in Colorado’s Wattenberg field
while entering the Delaware Basin in west
Texas. As the independent exploration
and production company enters the third
year of this new operational focus, its top
executive said there is plenty of reason
for optimism.
Speaking at a luncheon co-hosted by
the Independent Petroleum Association
of America and the Texas Independent
Producers and Royalty Owners Associa-
tion, PDC President and Chief Executive
Officer Bart Brookman gave an overview
of recent developments at the company.
Brookman described the Watten-
berg as a highly productive region for
PDC, and that the company hopes to
increase efficiency in the operation of its
96,000 acres. PDC utilizes a near-even
split of standard-, mid-, and extended-
reach laterals in the Wattenberg. Brook-
man said the company plans to drill
each new well with monobore technol-
ogy, saving approximately 1 day in spud-
to-release times. It also plans to move
from a 4½-in. liner to a 5½-in. casing
on its laterals, which will allow for larger
completion volumes and higher comple-
tion rates.
Brookman said the acreage swap that
PDC and Noble completed in June 2016
should also help bolster its operating
position. The deal involved PDC swap-
ping  approximately 11,700 net acres in
26
Merritt said future studies will likely This first study also did not benefit
turn to modeling, which should provide from the inclusion of reservoir charac-
a clearer picture of how the wellbore teristics or rock properties, but those
and near-wellbore area alter the signal. are two parameters that the engineer-
The good news is that a lot of the factors ing team wants to integrate next time
needed for this more advanced work because they relate strongly to how frac-
are not hard to obtain. “We know what tures propagate. Estimated calculations
the casing sizes are, we know where our of the surface area inside the open frac-
perforations exist, and tying in a larg- ture network will also be useful since the
er data set with the models will add a volume of space inside the rock matrix is
lot of strength” to the reliability of this understood to directly affect how much
approach, he said. of the water hammer wave is absorbed.
Wells Ranch for 13,500 net acres from gives us great leaps in capital efficiency.
Noble’s holdings in the Bronco area, We will have longer laterals in our acre-
south of Wells Ranch. age. Our operating teams have a smaller
Fig. 1 shows a map of PDC’s acreage block where, from an operating efficien-
pre- and post-trade. Brookman said the cy perspective, things are improving.”
trade allows for more block-like acre- PDC entered the Delaware Basin in
age conducive to long-lateral develop- August 2016 by purchasing 57,000 net
ment—the company had already pro- acres from Kimmeridge Energy Man-
duced approximately 685,000 BOE from agement in Reeves and Culberson coun-
its 1.5-mile laterals, and it brought on line ties, which are along the Texas-New
several 2-mile laterals in 2016. Mexico border, for USD 1.5 billion. Four
Brookman said the negotiations on the months later, the company paid For-
land swap took about 1 year, and that tuna Resources USD 118 million for
the end result was a “win-win” for PDC an additional 4,500 net acres in the
and Noble. same counties.
“The end game is that this is a real posi- PDC divided its Delaware acreage
tive for our reserve report,” he said. “This into three blocks. The eastern block has
Pre-Trade Post-Trade
Fig. 1—In June 2016, PDC Energy swapped acreage with Noble Energy in the
Wattenberg Field in northeast Colorado. The swap allowed PDC to consolidate
its holdings into block-like acreage, which makes it more conducive to long-
lateral development. PDC’s acreage is shown in yellow. Source: PDC Energy.
JPT • APRIL 2017
the highest oil content in its reserves,
between 50% and 70% over 410 drill-
ing locations. The central block reserves
contain between 30% to 50% oil in 335
locations. The western block’s 40 loca-
tions contain between 20% to 50% oil.
The company currently has rigs running
in the western and eastern blocks.
The Delaware acreage features 785
horizontal drilling locations (a figure
Brookman said was a conservative esti-
mate) targeting the Wolfcamp A, B, and C
zones. The acreage yielded approximate-
ly 32.5 million BOE of proved reserves in
2016, with liquids making up approxi-
Independent Shale Producer is Driving Permian Well
Improvements With Clean Sweeps
Trent Jacobs, JPT Digital Editor
Good housekeeping has proven to be a
big difference-maker for Houston-based
Callon Petroleum.
The independent shale producer
recently published a study showing how
it developed a data-driven workflow to
predict which wells will suffer the most
screenouts, allowing them to build in
time for a preventive completion practice
known as a clean sweep.
“It’s not a new concept. It’s not a
fancy technology,” said Nancy Zakhour,
a completions engineer with Callon who
worked on the study. “It’s just us trying
to better understand which differences
made to our operations are impacting
production and whether or not we can
leverage that to our advantage.”
The company attributes its approach
to clean sweeps to better prop-
pant placement and higher produc-
tion. While supporting figures have
not been disclosed, Zakhour empha-
sized, “We came to know that whatever
we did with the sweep enhanced the
wells’ productivity.”
Her confidence in the effectiveness
of the clean sweeps is partly backed by
hydraulic fracturing models that indicat-
ed that the fracture designs themselves
were not the chief driver of well per-
formance. Run post-completion, Zak-
hour said the models showed how the
clean sweeps were allowing otherwise
JPT • APRIL 2017
mately 68% of those reserves. The acre- For now, Brookman said the Watten-
age holds an estimated 580 million BOE berg will remain the company’s priority.
of net reserves. PDC plans to operate 28 spuds and 19
Brookman said PDC is currently “hold- turn-in-line (TIL) wells in the Delaware
ing our acreage” in the Delaware while this year. In the Wattenberg, it will oper-
it determines an adequate long-term ate 145 spuds and 150 TILs.
strategy for the area. It likely will not “To use a baseball analogy, the Dela-
begin multiwell pad drilling in the area ware is probably in the first or second
for another 18 months. Within the next inning, and the Wattenberg’s probably in
2 years, the company will start testing the sixth or seventh. With capital spend,
downspacing concepts. He estimated this will be second-tier for the next 2 to 3
that PDC will spend about USD 235 mil- years behind Wattenberg as we technical-
lion on its Delaware assets in 2017, ly define what we’re doing, but it doesn’t
approximately one-third of the com- take away from what we hope to see in
pany’s capital allocation. the basin,” Brookman said.
inactive perforations to be successfully sented in January at the SPE Hydraulic
“pumped to completion” with a full dos- Fracturing Technical Conference in The
age of sand. Woodlands, Texas.
This work was done through Callon’s Typically done after an individual frac-
Spraberry Trend program in the Permian ture stage is stimulated, a clean sweep
Basin in west Texas and involved geome- involves pumping full-wellbore volumes
chanical data from the drilling of eight of water downhole to return any loose
wells and pressure data from 145 fracture proppant, or in this case sand, back to
stages. The project’s details are in a tech- the surface. By comparison, a dirty sweep
nical paper (SPE 184843) that was pre- is when sand concentrations are reduced
Type 1 Type 2 Type 3
High
YM (MPSI)
Low
Low High
GR (API)
A scatter plot shows how each well type was categorized based on
measurements for gamma ray resistivity and rock stiffness (Young’s modulus).
Source: SPE 184843/Callon Petroleum.
27
 Colored dots represent individual operators working the Spraberry Trend in the Permian Basin of Texas which grew
from 38 in 2011 to 68 in 2016. Because the formation is not as deep as others, it has been considered a refuge for
producers seeking lower drilling costs. Source: SPE 184843.
temporarily before the pumping ramps
back up again.
Ironically, dirty sweeps are done to save
time but Callon’s analysis proved that they
were causing too much sand to settle near
the perforation clusters, leading to a high
number of screenouts—a problem that
happens when the sand moving into open
perforations gets jammed up just like a
crowd of people would if they tried to pass
through the same door all at once.
Per industry reports, a single scre-
enout requiring coiled tubing reme-
diation may cost USD 80,000, and it
is not uncommon to suffer several of
them in the course of a single horizontal
well completion.
Working the Data
Callon carried out this research proj-
ect last year with service provider Sanjel
Corporation. Engineers from both com-
panies were able to realize the impor-
tance of the clean sweeps, along with
other key learnings, using an in-house-
developed algorithm to quickly analyze
the rate of penetration, gamma ray logs
taken during drilling, and rock stiffness
(Young’s modulus).
Olubiyi Olaoye, who worked as a com-
pletions engineer with Sanjel until the
company’s restructuring, said the algo-
rithm categorized the project’s eight
wells into three types. Above all else,
the most defining factor between the
well types was the properties of the rock
in which they were landed, highlight-
28
ing that geology and geomechanics are
powerful dictators of how a completion
design performs.
“One thing we knew before the com-
pletion jobs even began was that these
wells were different in terms of what we
saw when they were drilled,” Olaoye said.
“Based on that knowledge, we went into
the project thinking we were going to
treat them all the same, even though we
knew that they were different, in order
to see the responses on three different
types of wells.”
This scientific approach paid off and
proved that each well type needed its own
completion strategy with regards to the
number of clean sweeps, sand grain size,
and acid treatments.
For instance, Type 1 wells had a 74%
chance of requiring at least one clean
sweep while Type 2 wells had only a
15% probability. Knowing this gave the
completions team the ability to sched-
ule a sweep into their operations rath-
er than stopping work to deal with
it unexpectedly.
Additionally, the engineers looked at
each well type’s gamma ray resistivity to
determine the calcium carbonate con-
tent. Olaoye said wells with higher calci-
um carbonate benefited the most from a
pretreatment of acid which increased the
flow area around the perforations.
The analysis also showed that the well
type with the stiffest rock benefited the
most from using an initial slug of fine-
grain sand (100 mesh) to clear out the
perforation area before pumping the
larger sand for the rest of the stimulation.
May Not Apply
This new workflow may be useful to other
Permian operators since so many of them
have retreated to the Spraberry during
the downturn due to it being shallower,
and thus cheaper, to drill than the more
well-known and prolific Wolfcamp Shale.
However, the study’s authors also cau-
tioned that the insights gained during
this project are likely area-specific vs.
play-specific.
They explained that being able to pre-
dict the need for clean sweeps will mat-
ter most to operators that are using slick-
water fracturing fluids as opposed to
gel-based fluids. With gel-based fluids a
clean sweep is less critical since it has a
higher viscosity, which will result in less
leftover sand inside the wellbore.
Secondly, because the Spraberry is a
relatively tight formation it requires a
larger sand size (30/50 mesh) to hold
open the fractures than do other Perm-
ian formations such as the Wolfcamp
(100 mesh). The smaller the grain size,
the easier it is for the formation to take
it in, thus also reducing the propensity
of screenouts.
And even if all these factors do apply,
water availability could be a hard con-
straint to overcome as some wells will
require two or three clean sweeps, which
may add up to 20,000 bbl of addition-
al water. JPT
JPT • APRIL 2017
 Oil and Gas Producers Find
Frac Hits in Shale Wells a
Major Challenge
Trent Jacobs, JPT Digital Editor

Used perforation guns stacked near a wellsite. The

fractures that originate from these points can be laterally
extensive, and shale producers are studying ways to avoid
them from hitting their other wellbores. Source: Getty.

I
n North America’s most active shale
fields, the drilling and hydraulic frac-
turing of new wells is directly plac-
ing older adjacent wells at risk of suf-
fering a premature decline in oil and
gas production.
The underlying issue has been coined
as a “frac hit.” And though they have
long been a known side effect of hydrau-
lic fracturing, frac hits have never mat-
tered or occurred as much as they have
recently, according to several shale
experts who say the main culprit is
infill drilling.
“It is a very common occurrence—
almost to the point where it is a routine-
ly expected part of the operations,” said
Bob Barree, an industry consultant and
president of Colorado-based petroleum
engineering firm Barree & Associates.
He added that frac hits are also an
expensive problem that involve costly
downtime to prepare for, remediation
efforts after the fact, and lost productiv-
ity in the older wells on a pad site.
A frac hit is typically described as an
interwell communication event where an
offset well, often termed a parent well in
this setting, is affected by the pumping of
a hydraulic fracturing treatment in a new
well, called the child well. As the name
suggests, frac hits can be a violent affair
as they are known to be strong enough to
damage production tubing, casing, and
even wellheads.
Claudio Virues, a senior reservoir engi-
neer with CNOOC Nexen, said frac hits
have become a top concern in the shale
business because they can affect several
wells on a pad, along with those on near-
by pads too. Based on his experiences in
Canada and in south Texas, the question
is no longer if a frac hit will happen, but
how bad will it be.
“You usually have two scenarios,” he
said. “One may be that you have a tem-
porary loss of production, but you will
recover to the trend that you had before.
The other will be really bad for your
production and reserves.”
He is alluding to the fact that some
wells impacted by frac hits never fully
recover and, in the worst cases, perma-
nently stop producing after taking frac
hits. The frequency of these outcomes
are unknown as there are no publicly
available statistics. In a small minority
of cases, and in select formation types,
frac hits have been known to increase
production in the impacted well, but this
is unusual.
A Rising Profile
Operators have been meeting behind
closed doors for years to collaborate on
best practices for dealing with frac hits.
One of the first things they agreed upon
was to notify other nearby operators of
an impending hydraulic fracturing oper-

JPT • APRIL 2017 29

 Colorado also mandates that all offset
wells within that designated area have
5,000-psi-rated wellheads to prevent a
frac hit from turning into a well control
event. Earlier this year, Oklahoma regu-
lators proposed a mandatory reporting
requirement for when one operator ini-
tiates a frac hit against another opera-
tor’s wells.
Canadian rules are more involved and
require that a single hydraulic fractur-
ing operation coincide with a multiwell
surveillance operation.
Two examples of what may happen during a frac hit. Rod tubing, left, is shown “In the old days, guys like me would
filled with proppant sand, while a remediated wellhead is shown post-frac-hit. watch three or four charts on one well
Sources: Marathon Oil/Eagle Ford Training San Antonio. that we were treating with a fracture,”
said Tim Leshchyshyn. “But now, you
ation so those firms could prepare for In recent years, lawsuits between oil have an additional 10 or 12 other screens
any potential frac hits. and gas companies and occasional frac- on that are just for watching those well-
Shale producers are sharing what hit-induced blowouts have also attracted head pressures.”
they know about frac hits at confer- varied degrees of scrutiny from industry Leshchyshyn, president of the
ences and in technical papers more fre- regulators in the US and Canada. Calgary-based consultancy FracKnowl-
quently. The bulk of SPE papers focusing The US state of Colorado adopted edge, said that the Canadian govern-
on frac hits have been published since rules in 2013 that require oil and gas ment became involved in frac hits after
2015. This may show that unconvention- companies to notify other operators they were blamed for a number of sur-
al operators are gaining a better grasp within 1,500 ft of a proposed wellbore at face releases, mostly involving damage
of the situation, yet concrete solutions least 90 days before a scheduled hydrau- to low-pressure wellheads and older
remain elusive. lic fracturing operation takes place. vertical wells.

Calculating Lost Reserves Not So Easy

Aside from preparation and prevention, the third piece
to the frac hit issue involves trying to assess both the
economic and physical damage caused. In terms of
quantifying lost production, it is not as straightforward
as one might imagine.
Engineers in BP’s unconventional program recently
developed a way to calculate such losses using rate
transient analysis (RTA). The caveat to this diagnosis
method is that it has only been tested on shale gas wells
because their single-phase flow is more reliably assessed
with RTA compared with oil wells which involve more
complex multiphase flow.
Siyavash Motealleh, a reservoir engineer at BP and
coauthor of a technical paper on the subject (SPE
184812), said the traditional method has been to use
decline curves to estimate the impact to estimated
ultimate recovery—which importantly, does not take into
account the role of pressure.
In cases where production has dropped post-frac-hit,
this analysis tries to answer whether open fractures were
closed (representing a permanent loss of stimulated
reservoir volume) vs. the development of superficial
skin damage.
The major benefit RTA offers an operator is a
probability that the well damage is either irreparable or
can be addressed with a coiled tubing cleanout. “But if
you use only the decline curve, you won’t know to do
that; you will only know your productivity went down
and you won’t know why,” explained Motealleh.
Himanshu Yadav, a reservoir engineer at BP and the
paper’s lead author, related a case in which a frac hit
was misdiagnosed in such a manner. After the affected
well was brought back on production, field engineers
determined that because its gas flow rate returned to
normal, there was minimal damage.
However, when Yadav looked at the well data he
found that the field engineers had increased the choke
size, which allowed more gas to be produced while
hiding the fact that wellhead pressure was down by
more than 1,000 psi.
“This is the classic case of where if you just use
decline curve averages, you are not looking at the entire
picture and might be fooling yourself,” he said.
The authors point out that this method also may not
be optimal for ultralow-permeability shale formations,
based on their limited research into the issue. The
simulations used to validate the RTA approach were
based on shut-in times of 30 days, while in very tight
formations an adequate pressure buildup may take as
long as a year.

30 JPT • APRIL 2017

 1
2
3 Mineral Engineering. The successful applicant will help to build
Frame 1 of a modeling sequence shows a hydraulic fracture
may contact a depleted reservoir section of multiple
parent wells—inducing a frac hit across the pad. A larger
fracture network develops around the child well only after
the fracturing fluids have filled that depleted area, shown
in frames 2 and 3. Source: Barree & Associates.
The directive regarding interwell communication also calls
for operators to do upfront modeling to estimate the radius of
the potential strike zone. Companies not implementing such
due diligence are subject to being shut down.
Leshchyshyn further explained that in Canada, if the pressure
in an offset well exceeds the maximum threshold, the pumping
units must shut down—virtually ensuring that particular stage
of the child well will not be optimally stimulated. This high-
lights that frac hits should not only be viewed from the perspec-
tive of a parent well, since they can have direct implications on
the child well too.
JPT • APRIL 2017
Faculty Position in Petroleum
and Natural Gas Engineering
Through support from the Institute of Natural Gas Research
(INGaR), the Department of Energy and Mineral Engineering
(EME) at The Pennsylvania State University invites applications
for one (1) full-time, tenure-track faculty position in petroleum and
natural gas engineering at Assistant, Associate or Full Professor
level. The rank would depend on the qualifications of the individual
including industry experience. Significant start-up funds are
available for research support and new equipment. Applicants
must hold a Ph.D. in petroleum engineering, or related field, and
demonstrated expertise in drilling and well completions, defined
broadly. Successful candidates will demonstrate the ability and
willingness to establish a preeminent externally-funded research
program and to conduct independent high-quality research.
The candidates will also teach undergraduate and graduate
courses, supervise graduate students at the MS and PhD levels
and contribute in service to the university and profession. The
EME Department (EME; http://www.eme.psu.edu) is home to 35
faculty, 140 graduate students, and 1600 undergraduate students.
EME is home to Penn State’s undergraduate degree programs in
Petroleum and Natural Gas Engineering, Mining Engineering,
Environmental Systems Engineering, Energy Engineering, Energy
Business and Finance, and graduate degree program in Energy and
and maintain excellence in Penn State’s petroleum and natural
gas engineering program and will be an affiliate faculty of Penn
State’s Institute for Natural Gas Research (INGaR) to support the
institute’s mission of conducting research in the broad area of
natural gas, within the applicant’s area of specialization, working
closely with interdisciplinary teams, industry and government
partners to support the ongoing development of a natural gas-
based economy.
Interested candidates should submit: (1) application letter
highlighting qualifications for the position; (2) a curriculum vitae
including educational background, employment history, and
a list of peer reviewed publications and other technical papers;
(3) statements of research and teaching interests; (4) names,
addresses, and telephone numbers of four referees. Submit
applications electronically as addressed to: Chair of PNGE Faculty
Search Committee. Review of applicants will begin on March 1,
2017, and will continue until the position is filled.
Apply online at http://apptrkr.com/962323
CAMPUS SECURITY CRIME STATISTICS: For more about safety
at Penn State, and to review the Annual Security Report which
contains information about crime statistics and other safety and
security matters, please go to http://www.police.psu.edu/clery/,
which will also provide you with detail on how to request a hard
copy of the Annual Security Report.
Penn State is an equal opportunity, affirmative action employer,
and is committed to providing employment opportunities to all
qualified applicants without regard to race, color, religion, age,
sex, sexual orientation, gender identity, national origin, disability
or protected veteran status.
31
 Closer Than Ever
The main reason frac hits are becom-
ing a rule rather than the exception in
North American shale fields is because
of infill drilling and downspacing pro-
grams. Shale producers are drilling new
wells closer together, and closer to older
wells, all in an effort to drain as much of
the available reservoir area as possible.
For perspective, many shale wells
drilled in 2010 were at least 1,000 ft
apart. Today, many well spacing designs
include a range from 550 ft to 250 ft.
Leshchyshyn stressed that with such
How Bad Can It Be?
O n the mild end of the frac hit
severity spectrum are what engi-
neers call pressure hits. These have been
recorded in wells more than a mile away
from a hydraulic fracturing operation
but may only result in a small pressure
spike of 10 psi. Such instances are not
thought to result in large, if any, produc-
tion losses but they do demonstrate the
extensive interconnectedness of fracture
networks—both induced and natural.
Other instances of interwell commu-
nication are thought to be short-lived
and thus not very harmful to produc-
tion. So while a frac hit may have con-
nected two adjacent wells, in a few weeks
or months the connective fracture net-
#2 shut in with
pressure gauge
Which well(s) affecting Well #2?
This diagram shows the location of well #2 in relationship to wells #4, #5, and
#6. Because those wells were completed around the same time, the operator
was left guessing which one caused a frac hit. Source: EP Energy.
32
tight well spacing, “You are always going
to have frac hits.”
Added to the equation is that the shale
sector has now adopted hydraulic frac-
turing treatments that use two or three
times the volume of water and sand used
when many of the parent wells were ini-
tially completed.
The higher volumes of water, more
so than the increased amounts of sand,
are thought to be creating fractures lon-
ger than desired. If operators can create
shorter fractures, they may avoid punch-
ing into depleted reservoir zones where
work between them may pinch off, end-
ing the interference.
In the meantime though, operators
may notice they are pumping out more
produced water from an impacted parent
well than before. Production could also
fall off temporarily before returning to a
normal rate.
However, trying to quantify the pro-
duction permanently vs. temporarily lost
remains a subject of research. This means
some companies may be unaware that
they have lost oil and gas reserves.
On the far end of the spectrum is well-
bashing. “I picture that as the full boat,”
said Barree, who reserves usage of that
term for when a well has taken in fluid
23 45 6 ogy Conference (SPE 184869) this year
large volumes of oil, gas, and water have
been produced over the years.
As Leshchyshyn explained, it is the
relative low pressure of these depleted
zones that turns them into a vacuum
“that sucks in both sides of the well-
bore’s fracturing network.”
With individual fracture stages being
placed tens of feet apart instead of hun-
dreds, as was the norm a few years back,
this vacuum effect can predestine frac-
tures stimulated subsequent to a frac
hit to a fate of low productivity and the
potential of causing more frac hits.
and proppant from a fracture that direct-
ly hit the parent well and maintains
long-term direct communication with it.
“That’s where you usually get the most
severe damage,” he said.
When sand is forced into a parent well,
the tendency is for it to settle in the low
spots of the wellbore and plug off pro-
duction. This is called being “sanded in.”
A cleanout is possible, but Barree said
that if the sand enters toward the toe
section of a well, it is likely beyond the
reach of coiled tubing.
Excess water communication can also
harm production by waterflooding the
proppant pack, which ends the continu-
ous flow of oil and gas into the wellbore.
Instead, the hydrocarbon flow regime
becomes dominated by residual droplets
that are discontinuous.
Barree said water imbibition can also
drop the conductivity of producing frac-
tures by 10- to 50-fold. If such extreme
damage occurs, it is doubtful that produc-
tion will ever recover. “You put the well
back on production and you’ve lost your
pressure, the velocity, the inflow capacity,
and the well is just dead,” he said.
Practicing Self-Defense
Independent oil and gas explorer EP
Energy published a technical paper at
the SPE Hydraulic Fracturing Technol-
detailing its use of an emerging DNA
diagnostic technology to conduct a frac
hit post-mortem in its operations in the
Permian Basin of Texas.
JPT • APRIL 2017
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 0.5
0.4
0.3
Percent Contribution
0.2
0.1
0.0
–0.1
–0.2
–0.3
Well 1 Well 4
Using diagnostic firm Biota Technology’s DNA surveillance and analysis, EP
Energy conclusively determined that well #6 was responsible for frac hits on
well #2. Source: EP Energy.
The pilot project analyzed the DNA sig-
natures of several wells on a pad site and
was able to single out the child well that
initiated a frac hit on a parent well during
a multiwell zipper fracturing operation.
The culprit well was landed around the
same depth as the impacted well, which
prompted EP Energy to begin stagger-
ing wells at different depths to lessen the
occurrence of inducing a frac hit.
One frac hit protection technique
involves pumping fresh water into parent
wells along with diverting agents to tem-
porally plug off the perforations that serve
as access points. A paper (SPE  184851)
authored by engineers at Abraxas Petro-
leum detailed the use of this strategy in
North Dakota’s Bakken Shale.
BHP Billiton and Chevron have said
that, in certain areas, they manage the
risk of frac hits by first conducting haz-
ard reviews of nearby wells.
In addition to installing high-pressure
wellheads on offset wells, some opera-
tors take the extra step to remove down-
hole completions components from
producing wells, including the artifi-
cial lift system, and then install packers
downhole to isolate unwanted pressures.
A Marathon Oil presentation from
2014 said these “full decompletions” are
applied to horizontal wells parallel to and
within about 500 ft of an offset hydraulic
fracturing treatment.
Is Prevention Possible?
The current understanding of how frac
hits develop is so limited that there is no
34
Well 5 Well 6 Well 7 Well 8
consensus on how to prevent them. Many
of the ideas tested so far have shown
mixed results, according to those famil-
iar with field operations.
Barree questioned the practice of load-
ing up producing wellbores with water,
believing that this could cause the same
type of damage that operators are try-
ing to avoid. Also, it may not be adequate
enough to form a protective pressure
shield around parent wells. “You can’t
reverse the years of pressure depletion,
and you can’t re-stress the rock or re-
pressurize the well,” he added.
Another idea is to recharge the offset
wells using gas, either natural gas or car-
bon dioxide, neither of which should lead
to well damage. Though Barree is not
aware of any companies that have tested
this approach, he said “there is a good
chance that it could help.”
If gas compression facilities are avail-
able, operators could continuously pump
natural gas into offset wells to increase
their local pore pressure to ward off an
oncoming fracture.
Barree said the potential of this
approach is supported by instances
where wells have been shut in prior to an
offset hydraulic fracturing operation and
were shown to have built up enough pres-
sure to reduce the frequency or severity
of frac hits.
A similar approach, though more
involved and costlier, is to refracture a
parent well prior to the initial hydraulic
fracturing of a child well. Schlumberg-
er is among the service companies mar-
keting refracturing as a method of frac
hit protection.
Virues said he has observed that refrac-
tured wells tend to experience less severe
frac hits and thinks it is because refrac-
turing enhances the parent well’s local
stress regime—the same idea behind the
other injection techniques but involving
much more fluid.
Barree emphasized that a new frac-
turing fluid design may be the shale sec-
tor’s best option for avoiding damag-
ing frac hits. Use of high-concentrated
friction reducer (HCFR) in slickwater
fluids is trending upward as it is seen as
an affordable alternative to gel-based
fluids and has shown productivity ben-
efits as well.
Barree said testing has also shown that
HCFR can also enable operators to pump
high loads of sand to keep fractures open
while using far less water, which should
generate less-extensive but high-produc-
ing fractures. “Forget about trying to reach
out with the fractures,” he advised. “Focus
on near-wellbore  stimulation.” JPT
For Further Reading
SPE 184869 Applying Subsurface DNA
Sequencing in Wolfcamp Shales, Midland
Basin by Peter Lascelles, EP Energy
et al., Biota Technology. https://doi.
org/10.2118/184869-MS
SPE 184812 Improving Quantitative
Analysis of Frac-Hits and Refracs in
Unconventional Plays Using RTA by
Himanshu Yadav and Siyavash Motealleh,
BP. https://doi.org/10.2118/184812-MS
SPE-178509 Is That Interference? A Work
Flow for Identifying and Analyzing
Communication Through Hydraulic
Fractures in a Multiwell Pad by Ali Awada,
IHS et al. and Claudio Virues, CNOOC
Nexen. https://doi.org/10.2118/178509-PA
SPE 184851 Re-Designing from Scratch and
Defending Offset Wells: Case Study of a
Six-Well Bakken Zipper Project, McKenzie
County, ND by Peter Bommer, Abraxas
Petroleum Corporation et al., https://doi.
org/10.2118/184851-MS
SPE 184837 Reservoir and Completion
Considerations for the Refracturing of
Horizontal Wells by Robert (Bob) Barree,
Barree & Associates et al., and Jennifer
Miskimins, Colorado School of Mines.
https://doi.org/10.2118/184837-MS
JPT • APRIL 2017
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 The Future of I
nternational oil companies have been
backing off growth plans in Canada’s
oil sands.
Shell and Marathon have agreed

the Oil Sands

to sell most of their oil sands oper-
ations. ExxonMobil recently removed
3.5 billion bbl of the ultraheavy crude
from its proved reserves because it

Depends on
no longer plans to develop them any
time soon, following a similar move
by ConocoPhillips.
In a world with a surplus of oil pro-

One Thing:
duction options, the oil sands suffers
because the cost of development is high
and the value of ultraheavy crude is
low, with oil sands bitumen selling for

TOTALLY
USD 15/bbl less than the benchmark for
light crude, and these projects require
big financial commitments stretching
out for decades.
“They (oil sands) are the most expen-

RETHINKING
sive kid on the block and that is not a
good place to be,” said Ron Sawatzky, a
principal researcher for InnoTech Alber-
ta, and chair of the SPE Canada Heavy

EVERYTHING
Oil Technical Conference. “US shale pro-
ducers are the biggest competitors for oil
sands. We cannot match the nimbleness
of those guys.”
Among those competitors are Exxon-
Stephen Rassenfoss, JPT Emerging Technology Senior Editor
Mobil and ConocoPhillips, with large
operations in unconventional plays in
the US and Canada and significant oil
sands operations.

36 JPT • APRIL 2017

 Suncor’s MacKay River central processing facilities (left), which can process up to 38,000 B/D, show
the large scale required for a moderately sized SAGD oil sands operation. The company is working
to reduce the cost, energy demands, and scale of critical equipment such as the steam generators
(center) to allow future expansions, increasing the flow through its pipelines (right). Source: Suncor.

“We are seeing the same technologies
and innovations driving lower costs and
greater opportunities,” in the oil sands,
Ryan Lance, chief executive officer at
ConocoPhillips, said during a presenta-
tion at the March CERAWeek conference
in Houston. But he keeps asking his oil
sands team: “How can you do projects
with a 3–5-year cycle time so you can
adapt” to a business with big unexpected
price swings.
Those who work in the oil sands are
learning how to react faster to prepare
for when oil may again be in short sup-
ply. “At Suncor we will spend around
USD 200 million on technology in 2017
because business as usual does not cut
it,” said Gary Bunio, general manager,
strategic technology for oil sands, at
Suncor. “We are working on things we
will put in over a couple years, and things
that will take a decade.”
The payoff for reviving future growth
is huge—oil sands resources are esti-
mated at 135 billion bbl according to
the US  Energy Information Administra-
tion—and there is cash flow to invest
in technology. Efficient producers such
as Suncor have reduced operating costs
to turn a profit with oil prices as low as
USD 35/bbl.
Longer term they are trying to sig-
nificantly increase the efficiency of the
method used to produce bitumen pro-
duction in places too deep to mine,
known by the acronym for steam assist-
ed gravity drainage—SAGD.
While ExxonMobil’s Imperial Oil
unit has backed away from its major
expansion schedule, it is working on
projects to commercialize solvent-
assisted production. In a talk to SPE
young professionals about the busi-
ness, Rich Kruger, the CEO of Imperial
Oil, advised: “Do not underestimate the
potential for technology and this indus-
try’s ingenuity.”
The History
Canadians would not be producing a lot
of oil unless they were good at getting
past barriers from tight reservoir rock
to crude filled with sand. Darcy Spady, a
Canadian and incoming 2018 SPE pres-
ident, noted at the recent combined
SPE Canada Heavy Oil and SPE Canada
Unconventional Resources conferences
in Calgary, “We were not blessed with
easy rock.”
The economic challenges facing the
oil sands affect both the mines, which
dig up the oil sands from near the sur-
face, and the pairs of wells used for
SAGD. This story focuses on SAGD,
which demands skills normally used by
petroleum engineers.
Now every element of the SAGD pro-
cess is being examined in search of ways
to fundamentally lower the cost, speed
up development, and reduce the envi-
ronmental impact.
In the short run, the focus is on
reducing aboveground waste with
faster drilling and lower cost comple-
tions. For example, some operators
and service companies are rethink-
ing well pad development and eyeing
simplified, standardized designs that
limit engineering time and the risk of
cost overruns.
“Now everybody wants something
that is cheaper, benefits production, and
is standardized,” said Majid Saeedi, a
director and reservoir engineering con-
sultant for Saman Associates.
Longer term, there is talk about
changing the scale of production add-
ons using modular equipment serv-
ing smaller groups of wells, allowing
additions of about 10,000 B/D rath-
er than 30,000 B/D, which would
reduce the added investment and
time required.
“Everything is shifted down a level and
you can respond and move more quickly
when the price changes,” Sawatzky said.
It is too soon to know how that will look.
“It is very embryonic … nobody has a
picture of it.”
Two measures for this effort are
the steel and the steam required. “We
want to reduce the metal we have in

JPT • APRIL 2017 37

 SAGD Project Development
3,000 400

350
2,500
Total Well Pairs or Infill Wells

300

2,000

Annual New Drills

250

1,500 200

150
1,000

100

500
50

0 0
00

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17
20
20

20

20

20

20

20

20
20
20

20

20

20

20

20

20

20

20

Total SAGD Well Pairs Total Infill Wells SAGD New Drills Infill New Drills

The growth in the number of SAGD well pairs producing in the oil sands is flattening out as drilling of new and infill
wells has plunged. Source: TOP Analytics.

our facilities,” Bunio said. Greater effi- One project—in which Suncor is col- Recently, an industry group creat-
ciency, simpler designs, and a small- laborating with three other companies ed to share knowledge about ways to
er footprint commonly mean less and a provincial research group—is reduce the environmental impact of the
steel used. known by an acronym (ESEIEH) that oil sands, Canada’s Oil Sands Innovation
A key measure of efficiency for a is pronounced “easy,” representing Alliance (COSIA), eliminated a rule lim-
SAGD producer is the volume of steam the term “enhanced solvent extraction iting its collaboration to projects in the
needed to produce a barrel of oil. The incorporating electromagnetic heating” area of health, safety, and the environ-
less steam per barrel of oil, the better. If process. It could eliminate steam pro- ment, allowing it to try to form projects
it proves possible to drastically reduce duction equipment on the surface alto- that affect production.
the required heat per barrel, the steel gether by deploying an underground “COSIA is an unprecedented col-
for the equipment used to heat, trans- device using electromagnetic energy to laboration in the oil and gas industry.
port, and process the water will also heat the rock, and solvent to mobilize the For an industry that is very close to the
be reduced. oil at about half the normal temperature. chest, it is astounding we are doing it,”
Less steel and steam can reduce both While Imperial Oil has commercial Kruger said.
the cost and the environmental impact. wells using its solvent-assisted SAGD The next step is getting member com-
“I see no conflict in reducing cost, (SA SAGD) process, widespread use is panies to agree to join groups working on
reducing greenhouse gases, and reduc- far off. Most big companies have done specific issues. It is not an easy change,
ing the environmental footprint. With pilot projects on solvent, but cooper- but there is no attractive alternative.
less metal,  we use less energy and it ative efforts in that area, or in other “We are not competing with each other,
costs less,” Bunio said. production-related technologies, have we are competing with light tight oil from
The biggest potential savings in been rare. the US and crude from Saudi Arabia,”
the steel and steam needed can be However, with pressure to speed tech- said Bryan Helfenbaum, the technology
found below ground. SAGD produc- nology advances in the oil sands, there development manager for Devon Cana-
ers have worked for years on meth- are signs of companies moving toward da who works with COSIA. He noted that
ods that add solvent to steam, or cooperative efforts. “We have to do it dif- sharing is rewarded. “Collaboration ...
even replace the water completely ferently. Collaboration is one of those dif- is not a zero sum game; both sides have
with solvent. ferences,” Bunio said. something afterward.”

38 JPT • APRIL 2017

 This SAGD surface equipment module, which
can be reconfigured based on user needs, uses
standardized designs to reduce the cost and
development time, Source: Hive Innovations.

The Pad
Early signs of change in the oil sands can
be found on the well pads. For example,
Suncor’s new Lean Pad design targets
unneeded parts that add cost, complex-
ity, and the time required to install it all.
The number of premade modules per pad
is reduced from 3 to 1, and number of
manual valves slashed from 230 per well
pair to 30.
This pad is smaller, so fewer trees need
to be cut for it, and can be installed in half
the time.
“We did this by taking apart every sin-
gle system in the pad and asking, what do
we need?” Bunio said. Those doing the
job asked users: “What risk was it intend-
ed to reduce and is it still needed?”
While oil sands drilling has slowed as
big projects wind down, pad develop-
ment will need to continue to sustain
production as older wells play out and
wells are drilled to tap missed zones. Sev-
eral companies are now selling standard-

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WELL PAD DESIGNS
Current model New design
Modules 3 1
Manual Valves 230 30
Engineering Hours 9,100 800
Construction Hours 7,000 3,000
By drastically simplifying its well pad designs, Suncor also slashed the time
required to engineer and build each well pad. Source: Suncor.
ized modular designs that promise lower Operators are also pushing pad pro-
and more predictable costs, as well as ductivity by drilling longer horizon-
shorter development times. tal wells, with laterals extending from
An example of that is Hive Innova- 800 m to 1200 m, and some have gone to
tions, which describes what it sells as 1600 m, said Phenix, who also is presi-
a “templated well pad offering.” Trevor dent of Top Analysis, which developed
Phenix, the business development vice software that mines the province’s oil-
president for the venture, describes it as field database.
a turnkey design, fabrication, and con- Longer laterals save money by reduc-
struction service. Standardized design ing the number of wells needed to cover
is expected to limit the risk of overruns. an area, but only make sense if the injec-
Also, Hive assumes some of the cost tion well is engineered to deliver the
risk that is normally borne solely by required heat and pressure over that
the operator. longer distance. “You cannot extend the
Pad costs cover a wide range, and wellbore length and just hope it will pro-
Phenix emphasizes that cost alone is duce,” Saeedi said.
not a good measure of value because Longer laterals add to the argu-
the cheapest option may limit adjust- ments for another technology trend—
ments that could add production over the using inflow control devices. These noz-
6–12-year life of the well. zles vary the steam injections along the
Oil sands operations cash operating costs
CAD/bbl ($=CAD)
$39.05
$37.05 $37.00
$33.80
$27.85
$26.50
$23.85
Q2, Q3
and Q4
Average
2011 2012 2013 2014 2015 2016
Suncor is an example of an oil sands operator that has reduced operating
costs. The sustainability of these savings will depend on how much of the
reduction is a result of supplier discounts. Source: Suncor.
40
wellbore to ensure relatively even flow,
he said.
Steam production equipment is anoth-
er area where money can be saved by
reducing waste. Suncor’s central process-
ing facility design uses a heat exchang-
er with 50% less surface area and the
facility has 20% fewer pumps than
the standard.
Suncor’s technology development pro-
gram is working on a next-generation
device that creates both a high-pressure
stream of steam and also flue gas that
adds pressure and carbon dioxide into
the reservoir. It is called a direct-contact
steam generator because a hot stream of
combusting gas comes into contact with
a stream of water, creating both steam
and gas.
Direct-contact generation has been an
area of research for COSIA led by Suncor,
which continues to work on it. One ben-
efit is that it can use low-quality water—
aiding recycling. Also, reservoir simula-
tions by Suncor indicate that much of the
injected carbon dioxide will remain in
the formation.
Bunio said these smaller units can be
used to boost pressure in older wells.
And early tests suggest that adding flue
gas may enhance production. “We see
a bulk benefit in maintaining pressure
and, at least in the pilot we ran, we do see
a reduction in the steam/oil ratio,” Bunio
said. The results showed “some change
in performance” but he is not sure if that
would be sustainable.
The Well
If oil sand producers could have one tech-
nology wish granted, it would likely be
for solvent-assisted recovery dreams to
come true.
Solvent-enhanced production has been
shown to speed production and potential-
ly increase ultimate recovery. The payoff
might grow if it is possible to use only sol-
vent, which would eliminate water treat-
ment, since the solvent can do double
duty as the diluent reducing the viscosity
of oil, allowing it to be pumped through
a pipeline. Suncor has tested a downhole
electrical device for heating the reservoir
to the lower temperature required for
using just solvent, which would require
only a power supply near the wellhead.
JPT • APRIL 2017
 While the dream has been around for
more than a decade, it is not coming true
any time soon.
Given the amount of pilot testing need-
ed, commercial use in 5 years “is proba-
bly a stretch,” Bunio said, adding that “10
years is not a stretch.”
The strongest evidence that SA SAGD
is for real is Imperial’s move last year to
change the status of wells from a pilot proj-
ect to commercial at its Cold Lake opera-
tion. The application for the change said,
“Imperial has demonstrated that SA-SAGD
results in an increase in bitumen rates and
improvement in the oil/steam ratio rela-
tive to the standard SAGD process.”
Imperial also applied in 2015 to use its
method on a commercial basis in its Aspen
project, which it said “could achieve a
25% reduction in greenhouse gas inten-
sity and unit operating costs.” On its web-
site, the company said that if it receives
regulatory approval, it could make a final
investment decision this year.
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oil from the sand is a tricky engineer-
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ing challenge. Saeedi said that Impe-
rial’s results showed the importance
of choosing a solvent whose proper-
ties are matched to a specific reservoir.
The effectiveness of the solvent depends
on its phase-change behavior, which
will vary depending on the temperature
and pressure in the reservoir. “This will
be particularly important at shallower
deposits with low reservoir pressure,”
said Saeedi.
Just measuring whether solvents add
or speed production is difficult. A paper
(SPE 185014) presented at the recent
SPE Canada Heavy Oil Technical Con-
ference by Orlando Castellanos Diaz, a
research scientist for Shell Canada, said
that a number of solvent pilots “reported
inconclusive results mainly due to insuf-
ficient sampling.”
The paper said testing samples of the
produced fluids is required to verify the
numbers from an inline meter, which in
this case began delivering bad data after
9 months. The hot, complex mix of fluids
also damaged the sample collection sys-
tem, which was redesigned to handle
the mix.
Other barriers to solvent progress
include reduced research spending, loss
of experienced talent, and the slowdown
in drilling, which reduces the number of
test opportunities. An operator that has
shelved growth plans in the oil sands has
little incentive to spend on improving
production technology.
Even operators that want to add wells
are finding that it is slow going due to
regulatory changes. Kruger said getting
regulatory approval to add 12 wells in a
field with 5,000 operating wells can take
6–9 months in Alberta, but only a couple
of weeks in west Texas.
The topic of government regulation
came up again and again at the SPE con-
ferences, where the speakers mentioned
US initiatives to slash government rules,
driven by President Donald Trump.
“If we want to stay relevant to that
800-pound gorilla to the south of us that
is overhauling its regulatory processes,
we need to get after it,” Kruger said.
 Times are so Tough in the Oil Sands,
Companies May Have To Collaborate
verybody wants collaboration but no-
E body wants to give away their secrets.
Consider the Canadian oil sands, where
future growth depends on drastic chang-
es to lower the costs and emissions asso-
ciated with extracting ultraheavy crude.
“When I look forward, I think about
Canadian oil sands competing in a
world that will require more collabora-
tion than the industry has done,” said
Rich Kruger, chief executive officer of
Imperial Oil, explaining, “collectively we
will have to lower costs and that will
require collaboration.”
There are signs that is happening. A
group created to bring companies togeth-
er to speed solutions on environmental
issues, the Canada’s Oil Sands Innovation
Alliance (COSIA), recently changed its
focus on collaboration related to health,
safety, and environmental issues to allow
work on subsurface issues, which are
often proprietary.
It is a logical next step because there
is large overlap between the things that
reduce environmental impact and maxi-
mize profitability.
Subsurface collaboration can have
both economic and environmental bene-
fits because it could reduce the cost of the
energy required to produce a barrel of oil
as well as greenhouse gas emissions, said
Bryan Helfenbaum, technology develop-
ment manager for Devon Canada.
Drawing a line between the economic
and environmental can be counterpro-
42
ductive. Gary Bunio, general manager
strategic technology for oil sands at Sun-
cor, points out that the task of finding
better ways to clean up the tailings—the
hard-to-treat water left after oil is sepa-
rated from the sand in mining—would
benefit from changes in the processing
that produced the tailings.
But a logical argument for an engineer
is not necessarily persuasive to a law-
yer charged with protecting a company’s
intellectual property.
For companies such as Imperial Oil, a
subsidiary of ExxonMobil, the potential
reward for keeping others from using a
method it developed to solve a sensitive
environmental issue, such as reducing
the impact of mine tailings, is outweighed
by the benefit of sharing knowledge that
could reduce the risk of the industry
causing environmental damage.
On the other hand, sharing some-
thing that gives a company an edge over
the competition when it comes to find-
ing and producing more oil is likely to
remain confidential.
COSIA is putting together a corporate
collaboration team to work on subsur-
face issues, which would normally lead
to objections because “we spent money
to develop it, we do not want to share,”
Helfenbaum said.
One counter to that is: When one com-
pany makes an advance, that usually
inspires others to catch up, so the edge
may be short-lived.
COSIA has said the collaborations will
be among partners making equitable
contributions, which is in the mind of
those willing to join groups formed to
address specific issues.
“ExxonMobil is spending USD 200 mil-
lion a year on R&D,” while others spend
far less, if anything, said Kruger, adding,
“I am not sure we want to open that up
for free.”
A panelist at the recent SPE Canada
conference put it more bluntly. Cath-
erine Laureshen, a heavy oil research
consultant, said, “When they see
something like ‘equitable contribu-
tions,’ the intellectual property lawyers
freak out.”
In better times it would be hard to
overcome those objections. But now
with growth at a crawl, executives have
to consider how much their intellectual
property will be worth if the business is
not growing.
Oil sands veterans saw the value
of collaboration when a government-
funded underground test facility played
a critical role in the development of the
SAGD method that enabled production
from deeper oil sands deposits.
“There are a lot of patents written
[on SAGD processes], but because of the
government involvement, SAGD was a
public domain technology,” Bunio said.
“That allowed a bunch of companies to
work on it. It allowed the industry to
grow and flourish.” JPT
JPT • APRIL 2017
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Airborne Dust Limits
Finalized for Sand
Use in Hydraulic
Fracturing
Stephen Whitfield, Senior Staff Writer

A single NIOSH mini-baghouse

installed on a thief hatch of a
sand mover. Source: Barbara
Alexander, National Institute for
Occupational Safety and Health.
 he long-term effects of respirable
T silica dust have been long known
to various industrial sectors,
from concrete construction and road
building to the manufacture of glass and
ceramics. As hydraulic fracturing opera-
tions have become a significant part of
oil and gas portfolios, companies have
begun paying additional attention to the
safety of workers exposed to the dust
that emanates from large volumes of the
sand used.
In March 2016, the US Occupation-
al Safety and Health Administration
(OSHA) announced a revised standard
that cuts in half the permissible expo-
sure limit (PEL) per cubic meter of air,
making employers implement controls
that limit worker exposure and access in
high-silica areas.
The regulations provide some chal-
lenges, but a closer look shows that
the oil and gas industry anticipated the
effects of crystalline silica as well as the
effects of the new regulations. Opera-
tors and sand companies have a host of
technological approaches to deal with
the realities of this harmful dust.
OSHA Regulations
Crystalline silica is used in a wide vari-
ety of applications in several industries.
It can be used as a filler in plastics,
rubber, and paint, and as an abrasive
in soaps and scouring cleaners. For oil
and gas, silica dust particles are a com-
mon hazard when dealing with sand on
hydraulic fracturing sites. OSHA esti-
mates that nearly 2.3 million workers in
the US are exposed to respirable crystal-
line silica in their workplaces.
The US Department of Labor deter-
mined that workers exposed to silica
dust at the previous permissible expo-
sure limits faced increased risks of
developing lung cancer, kidney dis-
ease, silicosis, and other nonmalig-
nant respiratory diseases. The Depart-
ment of Labor first set standards to
limit worker exposure to respirable
crystalline silica in 1971 after it created
OSHA, but in recent years it claimed the
standards were outdated and did not
accurately protect workers from silica-
JPT • APRIL 2017
related diseases, nor did it account for
new industries.
In 2010, OSHA and the US National
Institute for Occupational Safety and
Health (NIOSH) examined the risks
of worker exposure to silica during
hydraulic fracturing operations. The
NIOSH identified seven primary sourc-
es of silica dust exposure:
◗ Dust ejected from thief hatches
(access ports) on top of the sand
movers during refilling operations
while the machines are running
(hot loading)
◗ Dust ejected and pulsed through
open side fill ports on the sand
movers during refilling operations
◗ Dust generated by onsite vehicle
traffic
◗ Dust released from the transfer belt
under sand movers
◗ Dust created as sand drops into, or
is agitated in, the blender hopper
and on transfer belts
◗ Dust released from operations of
transfer belts between the sand
mover and the blender
◗ Dust released from the top end
of the sand transfer belt on sand
movers
OSHA proposed a full review of sci-
entific evidence and industry consensus
standards to provide basis for a revised
rule. This new rule establishes a PEL of
0.05 mg/m3 of respirable crystalline sil-
ica as an 8-hour time-weighted average
(TWA), down from the previous PEL of
0.1 mg/m3. It also includes other pro-
visions such as requirements for expo-
sure assessment, methods for control-
ling exposure, respiratory protection,
medical surveillance, hazard communi-
cation, and record keeping.
The final rule became effective on 23
June last year, but general industry does
not have to abide by its requirements
until 2018, allowing a 2-year period for
facilities to conduct exposure assess-
ments and implement administrative
and engineering controls.
Dust Mitigation
As the industry works to adapt to the
new regulations, operators are looking
at ways to minimize the presence of dust
at their hydraulic fracturing sites.
George King, a distinguished engi-
neering advisor with Apache, noted two
types of coating methods that his com-
pany has found effective. One method
involves the application of a resin, or
any organic material that attracts and
bonds silica particles, at a rail transfer
station. King said he prefers the appli-
cation of coating on-site at the sand
mine because it is a better way to ensure
minimal dust buildup at every trans-
fer point.
King said he liked coatings because
they do not require people on-site to do
anything to ensure dust is being con-
tained. However, it is still not a fool-
proof means of completely eliminating
the presence of dust.
“As you transfer a material with a
coating on it, you will break down some
of the coating and you will generate a
little bit of the dust, particularly if you
have air transfer systems,” King said.
“Any time sand changes direction in
its flow—when it drops onto a belt,
when it drops off a belt into anoth-
er belt, or when it drops off into the
hopper, you’re going to liberate some
of the dust. You’re trying to mini-
mize the dust as much as possible and
some of the coatings do a better job
than others.”
Beyond coating methods, King said
Apache has made some “good advanc-
es” by making various changes to trans-
fer devices. For instance, the company
examined a vacuum system in which
dust is sucked into a gathering sock. It
also tried moving sand through screw
conveyors, mechanisms where a rotat-
ing helical screw blade pushes the sand
through a pipe.
Covered transfer belts have also
proven effective. Instead of allow-
ing dust to build up by allowing sand
to fall on a belt, the company has fit-
ted the chutes with skirts and cov-
ered some of the other areas where it
would normally see dust. Apache has
also experimented with different mate-
rials used for transporting dust, such
as leather (which King called “very
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durable”) and plastic, which attracts
and holds some particles in the sub-
40-micron range, a size smaller than
the  OSHA requirements.
“Basically, we’re just trying to do this
to eliminate as much of it as we can,”
he said. “Our target is a little bit lower
than what they’re talking about. You
will never get it all. You’ve got back-
ground dust out there right now in one
of our West Texas locations that’s blow-
ing around.”
Another mechanism Apache has
examined is the pre-operation installa-
tion of silos, each storing approximately
500,000 lb of sand. King said the com-
pany has purchased several such silos
for use on its sites.
“While there are a minimum number
of people on location, you load these
silos and then, when the [fracturing]
gets ready to go, you’re simply pull-
ing out of the silos. You don’t have a
lot of trucks rolling out and unloading
sand via air into storage tanks or what-
ever. With a combination of reasonable
good coverage or coating, a reasonable
good masking, skirting, and covering
of the direction change points, and the
use of silos, we’re at a point where I’m
pleased,” he said.
Lessons From Other Industries
The OSHA regulations may provide an
opportunity for companies familiar with
coating technologies in other industries
to enter the oil and gas market with
new products.
ArrMaz, a chemical production com-
pany primarily focused on fertiliz-
er coatings and the mining industry,
launched its SandTec technology for
hydraulic fracturing in September 2015.
SandTec is a biorenewable, biodegrad-
able silica dust control proppant coat-
ing technology that works by hydrogen
bonding. The proppant coats sand and
binds the dust onto the silica particles.
John Suldickas, a commercial man-
ager for oil and gas at ArrMaz, called
SandTec an “attrition-resistant” coat-
ing because it adds a property of
lubricity to the sand, so as it is han-
dled throughout the supply chain, it suf-
fers from less attrition due to abrasion
and breaking.
Suldickas said ArrMaz applied sev-
eral lessons learned from its work on
fertilizer coatings in the development
of SandTec, but that fertilizer and sand
provide slightly different challenges in
treatment. Silica particles are smaller,
and because the crush strength for fer-
tilizer is significantly lower than that
for sand, not as much force is needed to
apply the coating.
“You can take the best coating chemis-
try in the world, and if you don’t spread
it on your granules that you’re trying
to control the dust on, it’s not going to
work,” Suldickas said. “Being able to
optimize the spreading of the coating
onto your medium is just as important
as the chemistry itself. Typically we’re
applying between 2 and 3 lb of coating
per ton of sand. It’s not a lot of liquid for
a whole lot of granules.”
ArrMaz put SandTec on the market
after the start of the oil price downturn
and prior to OSHA’s announcement of
the revised crystalline silica regulations.
Because of this, Suldickas said the com-
pany has taken a patient approach when
selling the coating system to operators.
“We went ahead and decided to
release the product into the market, but
we knew it was something we’d have to
launch and then cultivate for a while,”
Suldickas said.
Another company, Hexion, recently
released its Sentinel dust suppressant,
a chemical system designed to trap fine
dust particles during transportation and
transfer. Sentinel is a liquid dust con-
trol agent capable of reducing respi-
rable silica dust below 0.025 mg/m3
as an 8-hour TWA, and its chemistry
is compatible with most fracturing flu-
ids. Hexion claims the sand is resis-
tant to degradation during multiple
proppant transfers.
Hexion has created resin-coated
proppants for well stimulation as well
as performance additives for oil fields,
but in a press release announcing the
launch of the product, Jerry Kurinsky,
senior vice president and general man-
ager of the company’s Oilfield Technol-
ogy Group, said the company’s prima-
ry experience in handling respirable
silica dust came from its work in the
foundry industry. JPT
JPT • APRIL 2017
CONFERENCE PREVIEW
CONFERENCE PREVIEW
OTC Holds Timely Opportunity
To Chart E&P Industry Future
Joel Parshall, JPT Features Editor
With challenges on many fronts con-
tinuing to affect exploration and pro-
duction (E&P), and an industry sense of
resilience and guarded optimism about
oil prices, the Offshore Technology Con-
ference (OTC) to be held from 1–4 May
at NRG Park in Houston will present an
especially timely occasion for world-
wide energy professionals to chart the
way ahead.
Visitors from more than 100 coun-
tries plan to attend the conference, and
they can expect to find a rich oppor-
tunity to learn and exchange ideas on
technical and commercial issues, evolv-
ing industry practices, and potential
breakthrough technologies.
One of the world’s largest oil and gas
industry conferences, OTC drew an
attendance of more than 68,000 last
year. In addition to its technical and topi-
cal sessions, OTC hosts a major exhibi-
tion of technology and services. More
than 2,100 companies and organizations
representing 41 countries are expected
to exhibit, including 200 new exhibitors.
Awards Luncheon
At an awards luncheon on 2 May, Dis-
tinguished Achievement Awards will
be given to John Bomba for individu-
al achievement and LLOG Exploration’s
Delta House project for institutional
achievement. The Heritage Award will
be given to George (Mike) Conner, and
a Special Citation will be presented to
Art Schroeder.
JPT • APRIL 2017
Bomba will be honored
for far-reaching contribu-
tions to the offshore sec-
tor. He recently retired
from Genesis Oil and Gas
after working more than
60 years in the surveying,
Bomba
design, installation, con-
struction, and construction manage-
ment of pipelines and related facilities
on every continent except Antarctica.
The author of more than 30 technical
papers, Bomba holds a US patent and has
served on the OTC Program Committee
and the Arctic Technology Conference
Oversight Committee.
The LLOG Exploration Delta House
project is a floating production system in
the deepwater US Gulf of Mexico (GOM)
that came on stream in April 2015 with
industry-leading achievements in cost
control, time from discovery to first pro-
duction, safety performance, reliability,
and regulatory compliance. The project’s
breakeven oil price from inception was
USD 27/bbl and going forward is below
USD 20/bbl.
Conner will be recognized for champi-
oning the safe development of new tech-
nologies, particularly in the GOM. He is
a technical adviser to the US Bureau of
Safety and Environmental Enforcement
(BSEE) and has sponsored and active-
ly participated in several joint-industry
projects, BSEE-sponsored research proj-
ects, and other industry forums to pro-
mote new technology development.
Conner Schroeder
Conner has worked to identify poten-
tial hazards for each technology, develop
mitigations for each hazard, and deter-
mine the conditions of approval for
allowing use of the technology.
Schroeder will be cited for contri-
butions in crisis and risk manage-
ment, research and development, and
operational project management. In an
offshore-industry career of 40 years, he
has served on the OTC Board of Directors
and the conference program committee.
Schroeder created The Next Wave pro-
gram for young professionals at OTC and
helped to launch the conference’s inaugu-
ral d5 event. He also played a key role in
establishing the Research Partnership to
Secure Energy for America.
The luncheon annually raises funds
for a worthy cause. This year’s beneficia-
ry is Oilfield Helping Hands, a nonprof-
it organization that provides monetary
assistance to oilfield workers in finan-
cial crisis.
Technical Program
From almost 1,000 abstracts submitted,
the program committee has selected 348
papers to be presented at technical ses-
47
 sions and 47 submissions to be presented
in poster format. OTC’s 44 technical ses-
sions will be spread over the conference
schedule with presentations each morn-
ing and afternoon. Additionally, 13 panel
sessions are slated. They include
1 May
◗ Mad Dog Field: A Multi-Disciplinary
Look at the Opportunities,
Technology Breakthroughs,
Challenges, and Learnings of a Giant
Deepwater Field Development
◗ Operators Offshore in Brazil: Under
a Promising and Positive New
Environment
◗ Offshore Energy Policies:
Harnessing the Full Potential
of America’s Offshore
2 May
◗ Active Arena: Jointly Leading
Towards the Industry Upturn
◗ Libra Project: Reducing Breakeven
and Preparing for First Oil
◗ Bringing Upstream Projects to Final
Investment Decision (FID)
◗ Safety in the New Offshore World
3 May
◗ The Digital Disruption is Here
◗ Well Abandonment and
Decommissioning Challenges
◗ Big Data and Data Analytics
◗ Invited Organization: Offshore
Operators Committee—Risk
Management of Well Intervention
in the Gulf of Mexico
4 May
◗ Will Mexico Drive a Deepwater
Renaissance?
◗ Center for Offshore Safety and
Society of Petroleum Engineers
Panel: Managing the Human Side
of Safety
Special Events
Topical and Industry Breakfasts—
Nine topical breakfasts will be held
throughout the 4-day conference on
subjects including offshore operations,
safety, security, cost reduction, decom-
missioning, and specific international
project venues. In addition, two indus-
try breakfasts will be held, focusing on
48
LLOG Exploration’s Delta House project
development opportunities in the Caspi-
an region of Azerbaijan, Kazakhstan, and
the Turkish Energy Corridor (2 May) and
Mauritania and Senegal (3 May).
Topical Luncheons—Twelve topical
luncheons are scheduled over the 4 days
of the conference. Subjects include glob-
al projects, deepwater development,
innovation and technology, regulation,
the changing nature of reservoir and
resource economics, safety, and offshore
wind energy.
The Next Wave—This year’s edition will
address issues faced by young profes-
sionals and provide them with a compre-
hensive toolkit of ideas, suggestions, and
strategies to help build them into well-
rounded and world-class future leaders.
The keynote speakers are Yuliya D.
Mercer, senior counsel at BP America,
Scott Nyquist, senior partner at McKin-
sey & Company, and Kristie Hartley, vice
president of finance and chief financial
officer at Daniel Measurement and Con-
trol. Discussion by a distinguished group
of panelists is also on the program.
Teacher and Student Programs—The
Energy Education teacher workshop
welcomes science teachers (grades 9–12)
to attend a free, 1-day seminar to receive
hands-on training by qualified facilita-
tors, hear a presentation from a promi-
nent speaker, and tour the exhibit floor.
The teachers will receive a variety of free
instructional materials to take back to
their classrooms.
in the deepwater US Gulf of Mexico.
About 150 high school students will
get a firsthand look at the opportuni-
ties the industry offers. The students will
go on a scavenger hunt of the technolo-
gy exhibits, take part in hands-on ener-
gy lessons led by qualified facilitators,
and meet industry professionals to learn
about E&P careers.
d5: The Next Big Thing—OTC’s d5 event
at Rice University on 5 May is designed to
inspire leaders and innovators to address
current challenges and drive exponential
growth in the energy industry. This year’s
program theme is Innovation Through-
out the Economic Cycle.
The speakers will include Nina Simos-
ko, president and chief executive offi-
cer of NTT Innovation Institute, Riaz
Siddiqi, founder and manager partner
of Denham Capital, José Olalla Hevia,
head of business development and dig-
ital transformation at BBVA Compass,
and Tony Cucolo, Major General, US
Army (retired), and associate vice chan-
cellor for leadership development and
veterans affairs at the University of
Texas System.
The speakers will also lead group dis-
cussions and join in breakout sessions
with audience members. The intent is
to equip participants with a thoughtful
starter kit to lead, develop, and change
the course for the way ahead. A panel of
participating oil and gas executives will
wrap up the event with a discussion of
how to apply what they and others have
learned at d5 to their companies and
the industry. JPT
JPT • APRIL 2017
p opl
po d
The power of our resources means
nothing without the energy of our
people. Their focus and expertise make
our energy more dependable, more
sustainable, and more useful.

We are looking for experienced

petroleum engineers and geoscientists
to join our team.

Apply now.

www.aramco.jobs/jpt
 OTC SPOTLIGHT
OTC Names Winners of Spotlight
on New Technology Awards
Chris Carpenter, JPT Technology Editor
The Offshore Technology Conference
(OTC) selected 15 new technologies for
its 2017 Spotlight on New Technology
Awards. The annual awards program rec-
ognizes innovative technologies and allows
companies to showcase the latest advances
in offshore exploration and production.
Awards recipients were chosen on the
basis of the following criteria:
◗ The technology must be less
than 2 years old and offered to
AWARD RECIPIENTS (listed alphabetically by company)
Dril-Quip
DXe Wellhead Connector
Dril-Quip’s DXe wellhead connec-
tor, suitable for high-pressure/high-
temperature (HP/HT) and severe cyclic-
load environments, has a highly engi-
neered locking profile and gasket design
Dril-Quip’s DXe wellhead connector
features a locking profile and gasket
design providing high structural
capacity and high fatigue resistance.
50
the marketplace less than 2 years
before the award application
date. If previously advertised
at OTC, it must not have been
displayed at more than one
conference. The technology must
be original and groundbreaking,
and must not infringe on any
known patents.
◗ The technology must be
proven, either through full-
providing high structural capacity and
high fatigue resistance, resulting in lon-
ger service life. The technology of this
critical connection is validated beyond
American Petroleum Institute (API)-16A-
PR2/API-TR7 requirements with both
structural and fatigue physical testing.
Dril-Quip’s BigBore-IIe provides
significant drilling cost savings by
reducing the number of trips into
the well.
scale application or successful
prototype testing.
◗ The technology must be of broad
interest and appeal for the industry.
◗ The technology must provide
significant benefits beyond those
of existing technologies.
OTC also awarded two Spotlight on
New Technology Small Business Awards
for companies with fewer than 300
employees.
Dril-Quip
BigBore-IIe Wellhead System
The BigBore-IIe is a fully qualified well-
head system consisting of a DXe connec-
tion profile, integral high-capacity hanger
lockdown, superior system fatigue, and
high-capacity running tools. The BigBore-
IIe provides significant drilling cost sav-
ings by reducing the number of trips into
the well, eliminating the need for drill-
ing/production lockdown equipment, and
allowing the reducing of casing strings.
Halliburton
EcoStar
The Halliburton EcoStar valve is the
world’s first electric tubing-retrievable
safety valve (e-TRSV). The EcoStar
e-TRSV eliminates hydraulic fluid to
enable a fully electric completion system
without risk of exposing electronics to
produced wellbore fluids while retaining
the same fail-safe mechanism as current
conventional safety valves.
Halliburton
HCS AdvantageOne Offshore
Cementing System
The HCS AdvantageOne offshore cement-
ing system addresses the complexities of
JPT • APRIL 2017
 The right pump for
Halliburton’s EcoStar electric downhole safety valve eliminates hydraulic
every application
fluid to enable a fully electric completion system without risk of exposing
electronics to produced wellbore fluids.

Halliburton’s HCS AdvantageOne offshore cementing system enables precise

slurry blending and predictive maintenance capabilities to help preempt
equipment-related nonproductive time.
NETZSCH Positive
Displacement Pumps
deep water by providing versatility of use eliminating the need for multiple trips
in all offshore environments. This intui- along the stack and reducing a rig’s idle
tive system enables remote operations, time by a minimum of 50%. For each application there is an
featuring an integrated liquid-additive optimum pump principle: that is why
system for precise slurry blending and SBM Offshore we offer you as a leading manufacturer
predictive maintenance capabilities with Stones FPSO Turret Mooring System of three technologies the right kind of
shore-based monitoring to help preempt Stones FPSO’s innovative Turret Moor- pump for your individual application.
equipment-related nonproductive time. ing System (TMS) incorporates a series
of enabling technologies to become the
S!
Samoco Oil Tools deepest mooring system of any floating VISIT U gy
h o r e T echnolo
One-Trip Universal BOP Testing Tool production unit, and the first disconnect- O ffs it io n
OTC – e and E
xhib
In collaboration with Shell Offshore able TMS to support steel risers. These fe re n c
Con ton
Engineering, Samoco Oil Tools has engi- new technologies will facilitate future in Hous 17
04.05.20
neered, manufactured, and tested One- developments in ultradeepwater and 01.05. – 625-27
il li o n , Booth 3
Pav
Trip, a revolutionary blowout-preventer HP/HT reservoirs. German
(BOP) testing tool. Samoco’s OneTrip can
conduct required BOP tests in one trip,

Samoco Oil Tools’ One-Trip Universal
BOP Testing Tool can conduct
required BOP tests in one trip,
eliminating the need for multiple
trips along the stack.
SBM Offshore’s Stones FPSO Turret NOTOS® multi screw pump, NEMO® progressing
Mooring System is the deepest cavity pump and TORNADO® T2 rotary lobe pump
mooring system of any floating
production unit, and the first
disconnectable TMS to support
steel risers.

www.netzsch.com
JPT • APRIL 2017
 Schlumberger’s OptiDrill Real-Time Drilling Intelligence Service provides
actionable information to continuously identify hazardous-drilling-dynamics
events and trends.

Schlumberger’s MPD integrated

solution is the industry’s first
complete, all-OEM, reservoir-to-flare-
stack deepwater MPD system.

Schlumberger
Managed Pressure Drilling
Integrated Solution
The Schlumberger managed pressure
drilling (MPD) integrated solution is the
industry’s first complete, all-original-
equipment-manufacturer, reservoir-
to-flare-stack deepwater MPD system. Stress Engineering Services’
When MPD design, engineering, manu- Real-Time Fatigue Monitoring
facturing, system integration, well engi- System ensures that system
neering, and on-site well delivery ser- integrity is not compromised
and protects the environment
vices are provided from one platform
from hydrocarbon discharge.
and from a single supplier, operators
minimize rig footprint while maximiz-
ing drilling efficiency and versatility. time condition monitoring by inte- events and trends, and recommending
grating a comprehensive set of drilling safe operating parameters.
Schlumberger dynamics and mechanical information.
OptiDrill Real-Time Drilling The service mitigates drilling risk and Stress Engineering Services
Intelligence Service improves performance by providing Real-Time Fatigue Monitoring System
The OptiDrill real-time drilling intelli- actionable information to continuous- A Real-Time Fatigue Monitoring System
gence service enables continuous real- ly identify hazardous drilling dynamics (RFMS) has been developed to provide

52 JPT • APRIL 2017


Sulzer’s cMIST replaces conventional triethylene glycol towers and associated
separator vessels to meet pipeline dewpoint specifications.
fatigue damage of drilling riser and well-
head systems. The wellhead is the last
pressure-containing barrier between
the well and environment. Managing the
loads ensures that system integrity is
not compromised, and protects the envi-
ronment from hydrocarbon discharge.
Sulzer
Compact Mass Transfer and Inline
Separation Technology (cMIST)
ExxonMobil Upstream Research Com-
pany’s new Compact Mass Transfer and
Inline Separation Technology (cMIST)
replaces conventional triethylene gly-
col towers and associated separator ves-
sels to meet pipeline dewpoint specifi-
cations. cMIST achieves this goal with
significant reductions in weight, foot-
print, and cost. cMIST for dehydration
Techni’s BAMSE uses no active
electronics in the inaccessible
B-annulus and is designed for
life-of-well reliability.
JPT • APRIL 2017
is licensed to Sulzer for onshore and
offshore applications.
Techni
BAMSE
BAMSE (B-Annulus Monitoring System)
is a pressure and temperature sensor for
installation in the B-annulus of oil and gas
wells. The BAMSE system uses no active
electronics in the inaccessible B-annulus
and is designed for life-of-well reliability.
TechnipFMC
TechnipFMC 20K HPHT Subsea Choke
TechnipFMC’s HPHT subsea choke is
designed to withstand life-of-field fatigue
in HP/HT oil and gas production envi-
TechnipFMC 20K HPHT Subsea Choke
provides increased controllability
over traditional hydraulic-actuation
technology.
Intervention
with Vision
VITAL DATA FROM A
SINGLE TRIP DOWNHOLE
With SPECTRUMSM real-time
coiled tubing services, we
deliver well intervention and
diagnostics that help you
monitor and optimize your
well’s performance – safely,
reliably and efficiently.
Learn how we can help you
increase production and
maximize results.
halliburton.com/production
 Weatherford’s AutoFrac RFID-Enabled Stimulation System enables efficient
stimulation in openhole sections of extended-reach offshore wells.

ronments without the need for hydrau-
lic fluids. It meets, or exceeds, API 17TR8
requirements. Its plug-and-cage design
leverages proprietary HP/HT sealing
technologies and TechnipFMC’s G2i elec-
tric actuator, providing increased con-
trollability over traditional hydraulic-
actuation technology.
Weatherford
AutoFrac RFID-Enabled
Stimulation System
The AutoFrac system enables efficient
stimulation in openhole sections of
extended-reach offshore wells where
traditional technologies have often
failed to provide adequate reliability.
The system enables remote operation
of lower completion tools and provides
several options for tool communica-
tion that do not rely on control lines or
mechanical actuation.
WeST Drilling Products
(a part of WeST Group)
Continuous Drilling
and Circulation Unit
The Continuous Drilling and Circu-
lation Unit (CDU) is the heart of con-
tinuous motion rig (CMR) technology,
featuring the world´s first continuous
drilling operation, and the world’s first
fully robotized circulation unit. The CDU
reduces the overall time of drilling oper-
ations substantially (up to 50%) by elim-
inating downhole problems associated
with differential sticking and pressure
fluctuations, and reduces safety risk by
WeST Drilling Products’ Continuous
Drilling and Circulation Unit reduces
the overall time of drilling operations
up to 50%.
removing all personnel from the rig floor
during drilling operations.
Wild Well Control
DeepRange
Plug-and-Abandonment Tool
Wild Well’s DeepRange intervention tool
delivers a groundbreaking plug-and-
abandonment solution in a riserless
package. The robust remotely operated
vehicle (ROV)-driven technology offers
a minimally invasive solution that main-
tains wellbore integrity while providing
a cost-effective yet high-quality option.

Wild Well Control’s DeepRange Plug-and-Abandonment Tool offers a minimally invasive solution that maintains
wellbore integrity while providing cost-effectiveness.

54 JPT • APRIL 2017

 SMALL BUSINESS AWARD WINNERS
Fuglesangs Subsea’s Omnirise MiniBooster is the world’s first barrierfluid-less
and sealless pump intended for permanent subsea applications to depths of
3000 m.
Fuglesangs Subsea
Omnirise MiniBooster
The Omnirise MiniBooster is the world’s
first barrierfluid-less and sealless pump
intended for permanent subsea applica-
tions to depths of 3000 m. The system
includes a unique subsea electric vari-
able speed drive, and was successfully
qualified as part of National Oilwell Var-
co’s (NOV) Active Subsea Cooler system
in partnership with Statoil, Shell, Chev-
ron, Total, and General Electric.
WiSub
Torden High Power Pinless
Subsea Connector
The Torden High Power Pinless Subsea
Connector is WiSub’s next-generation
product developed in collaboration with
NOV to increase connection reliability
JPT • APRIL 2017
Maximize
Uptime and
Throughput
OF YOUR PIPELINE
AND PROCESS ASSETS
Our unique diagnostics,
engineered solutions,
and standardized project
management help you
get the most out of your
pipeline and process assets.
Learn how we can help you
minimize downtime and
maximize results.
halliburton.com/production
WiSub’s Torden High Power
Pinless Subsea Connector further
standardizes autonomous underwater
vehicle and ROV connections.
between a BOP and the lower marine
riser package. This innovation further
standardizes autonomous underwater
vehicle and ROV connections, combin-
ing patented high-speed data transfer
with highly compact resonant power
transfer to improve mating tolerance
and reliability. JPT
 MANAGEMENT

Technology Development in Upstream Division

of Gazprom Neft
V.V. Yakovlev and M.M. Khasanov, Gazprom Neft; D.O. Prokofiev, V.R. Filimonova, and A.V. Shushkov,
Gazpromneft NTC

To enhance its technology management
model and planning, the Gazprom Neft
Company formulated a technology strat-
egy, which focuses on moving from a
“smart buyer” approach to a “strategic
goal-setter” effort that emphasizes tech-
nological development through part-
nerships. The company is now focusing
on a fast search, adaptation, and adop-
tion of new technology strategy, which
is a priority of the company. To gain
that, it was necessary to realize our tech-
nological challenges in order to expand
resource portfolio access and maximize
invested assets.
These efforts are based on the under-
lying principles of technological devel-
opment created by the upstream divi-
sion. The technological strategy is a vital
element of the Technology Management
System (TMS), an integrated system used
by the company to manage the processes
of search, selection, trial, introduction,
and replication of technologies. Current-
ly, about 80% of the entire project port-
folio involves purchasing and adapting
ready-made technological solutions.
From Production to
Implementation of Project
Portfolio
Know-how and competencies in technol-
ogy management are the keys to profit-
ability and competitiveness of the indus-
try’s market players. All international
oil companies (IOCs) have long realized
the value of technology as key to deter-
mining economic performance and the
degree of access to the resource base.
Despite the fact that IOC investments
in technological development continu-
ously grow and reach billions of dollars,
the focus on optimizing the technolo-
gy projects portfolio increases. Forming
a consolidated approach to technology
management and maximizing return on
investment have now become key to real-
izing the most value from technology. At
the same time, as noted in the research,
there is no direct correlation between
shareholder return and expenditure on
research and development (R&D). The
implication is that a company’s ability
to correctly identify priorities and chal-
lenges in technological development
is more important than the amount of
investment. In other words, “the way you
invest is more important than how much
you invest.”
From our point of view, technology
leadership is determined not so much
by the size of investment in R&D, but
by the ability to apply technology to
engage a wide range of new reserves
and reach the technical limit of current
recovery targets.

Digital oilfield technology

Infrastructure of the future

Capital construction of the future

Exploration technology

Development of carbonates and fractured reservoirs

Development of nonconventional resources

EOR and well stimulation

Drilling and completion technology

Development of undergas-cap reserves

Fig. 1—The long-term trends of the upstream technology development of Gazprom Neft.

56 JPT • APRIL 2017

Key Challenges
of Gazprom Neft
The strategy of Gazprom Neft is to
achieve production of 100 MMt per year
by 2020 and maintaining that level for
at least 5 years. To reach this goal, the
company needs to expand geographical-
ly and bring new types of reserves into
production, which will require solving
a number of technology problems. The
company determined that its current
technology is unable to solve these key
challenges. The major challenges faced
by the company are as follows:
◗ Improving declining levels of
production on current assets
with poorer reservoir properties
◗ Increasing current recovery
factors
◗ Ensuring effective infrastructure
management at depleted fields
◗ Ensuring optimal use of existing
infrastructure to maximize
reserve recovery
◗ Adapting to extreme operating
conditions of the far north
◗ Ensuring efficient exploration
◗ Optimizing development patterns
and construction, ensuring
effective cost management
These challenges are typical for the
entire Russian oil industry, and Gaz-
prom Neft aims to become a country
leader in all of them.
Upstream Technology Strategy
Technology strategy will be one of the
enabling elements in reaching Gazprom
Neft’s strategic goals. The strategy is
a comprehensive plan for the techno-
logical development of the company,
which contains the target level of tech-
nology maturity and approach to coor-
dinate efforts of various departments to
achieve their strategic goals. The tech-
nology strategy is the governing docu-
ment that serves as a basis for forming
technology development plans for all of
the company’s assets. The main goal of
the strategy is to centralize all technol-
ogy efforts into a single portfolio, fur-
ther refocus initiatives with regard to
current and future company needs, and
organize an integrated system of proj-
ect management in order to maximize
return on technology investments.
JPT • APRIL 2017
The first stage of this work was to
formulate a list of upstream technology
challenges. More than 30 challenges were
identified, which were then grouped into
nine long-term focus areas of technolo-
gy development that will have the maxi-
mum effect for the company (Fig. 1). To
date, the target projects portfolio for the
approved nine focus areas consists of
more than 50 projects running and 150
planned with the introduction horizon
until 2025.
Increase
The Technology
Management System
The technology strategy is a key compo-
Production.
nent of the TMS, which is a structured set
of methods, standards, and supporting Maximize
tools that rule the company’s technolo-
gy development. The system represents
and governs new technology through the
Results.
full technology development cycle, which
includes search, selection, development, THROUGHOUT THE
implementation, and full-scale rollout of LIFE OF YOUR ASSETS
the company’s assets.
Whatever your production
To maximize value from the applica-
tion of technology, it is especially impor- challenge, Halliburton offers
tant to develop and implement a set of a full range of engineered
support processes in technology and solutions. From real-time
portfolio management. This is especial- diagnostic well interventions
ly important if the company decides to to customized specialty
implement a “smart technology buyer” chemicals, reliable artificial
approach. Knowledge management, lift systems, and pipeline and
management of external partnerships,
process pre-commissioning
and timely best practice sharing will be
the processes that contribute to achiev- and maintenance solutions,
ing this objective, where 80% of technol- we’re ready to help keep your
ogy solutions in the company are conven- production high and costs low.
tional technology, ready for purchase. Contact us to learn more.
Knowledge Management
Gazprom Neft Upstream is actively devel- halliburton.com/production
oping a Knowledge Management System
(KMS) to help coordinate knowledge-
management and -sharing processes in
decision making. The KMS was created
for the purpose of collecting, process-
ing, and managing knowledge in order
to maximize the benefits of new prac-
tices and technologies implemented on
the company’s assets. The KMS is imple-
mented in the form of an information
system with a number of modules that
help obtain the necessary information
on various aspects of work throughout
field development.
 Additional
22% 0 ton 10+ MM
production by 2025

CAPEX / OPEX 0P 50 bin. P

22%
reduction by 2025

Additional
0 TOE 20+
recoverable reserves 17%
M TOE
by 2025

Import substitution 11% 0 point 5 points

Success probability 11% 0 1

Until the first effect 11% 32 yrs 1 yr

Scientific PR 6% point point

1 2 3 4 5 6 7 8 9 10
Fig. 2—Dynamic ranking of technological projects.

The KMS systematizes information
on best practices used in Gazprom Neft
exploration and production (E&P), which
allows the user to carry out a comparative
analysis and select the optimal technical
solutions in accordance with the required
criteria. It also stores information about
all technology trials of new equipment
carried out within the company.
The KMS is one of the tools designed
to create an innovative climate within the
company. To date, the number of unique
users of the system is about 2,600 people
in 46 subsidiaries of Gazprom Neft.
Management of External
Partnerships
External relations development is be-
coming one of the most important ele-
ments of new technology implemen-
tation, allowing the use of unique
knowledge and competencies of E&P
partners. The main resource of Gaz-
prom Neft in this area is the Gazprom
Neft Scientific and Technical Cen-
ter, which is working closely with the
world’s technology leaders. The key
projects that emerged as a result of
this partnership include
◗ Pilot operation of tertiary enhanced
oil recovery (EOR) and pilot
horizontal wells in the Achimov
formation (Shell)
◗ Optimization of field development
models by means of data analysis
and using artificial intelligence tools
(IBM)
◗ Development of a surfactant with
predetermined properties to
increase oil recovery (Norkem,
Tyumen State University)
◗ Development of proprietary
information technology (IT)

Build innovative environment Pilot testing

Knowledge bases Analyze risks and Define technology applicability
Knowledge-sharing alternatives pattern (iChart)

Select
Find Technology Implement (Pilot run)
Technology

Ideas

Opportunities
Full-Scale
Appraise Technology Define Implementation
Laboratory tests Field experiments Lessons learned
Math experiment design Consistent improvement of
Integrated evaluation of technology and cost reduction
technology potential

Fig. 3—Project-based approach to the introduction of upstream technologies.

58 JPT • APRIL 2017

 technologies and software used for
processing and interpretation of
seismic data (Yandex Terra)
◗ Development of a proprietary
hydraulic fracturing simulator for
Bazhenov formation conditions
(Moscow Institute of Physics and
Technology, Skoltech)
◗ Trials of new drilling technologies,
refracturing (Schlumberger)
◗ Joint development of new
technologies in well construction,
projects appear in the technology strat-
egy portfolio.
Two groups of technological proj-
ects with different time horizons were
formed in line with this approach. Group
I included projects with short- to medi-
um-term effect (75% of the total annual
amount of funds for new technologies).
Group II comprised projects that give
effect in the long term (25% of the total
annual amount of funds). Those are, for
example, the projects for tertiary meth-
forecasting, and mitigating drilling
risks in fractured reservoirs
(Halliburton)
Ê1*¶
◗ Joint technology projects for
recovery factors improvement and
tertiary EOR methods (CNPC).
ods of EOR, the development of noncon- "7Ê"Ê9"1
ventional reserves, and exploration and
resource base development. -/

The process of technology control and
monitoring starts at the initial stage of
a search for possible solutions. After all
7>
ÌÊÌÊÕÌ«iÀvÀÊÌiÊ
possible solutions are evaluated, the best
V«iÌÌÊ>
`ÊLiÊ>ÊÌ«Ê
Technology Management ones are selected for rollout as technol-
Principles in Gazprom Neft ogy projects. A layout of the innovation/ «iÀvÀiÀÊ
ÊÞÕÀÊL>Ã
¶ÊÕÀÊÕÌÊ
Upstream technology project life cycle is shown vÊvÛiÊvÊÌiÊÌ«Ê«À`ÕViÀÃÊ
ÊÌiÊ
Having studied the lessons learned by in Fig. 3. `>
`Ê >Ã
Ê
ÊÌiÊ>ÃÌÊÃÝÊ
ÌÃÊ
IOCs, Gazprom Neft is basing its work on
ÌðÊ
overcoming technology challenges with
regard to the following key principles:
◗ Investments in technology are
>ÀiÊVÀ-iÃVÊVi
The Asset Technology Plan
The asset technology plan is a portfolio
of the proposed technological solutions
ÛiÀ>}iÊ*i>Ê "
*
ranked taking into account the
strategic objectives of incremental
production, reduced capital and
operating expenses, and increasing
recoverable reserves.
◗ Technological projects are
implemented only for clear business
objectives broken down on a time
horizon: short term, medium term,
of each upstream subsidiary based on Î]äää
actual challenges of this subsidiary. The Ó]xää
plan combines the strategic challenges Ó]äää
of the asset as well as local challenges, £]xää
and fulfills two key roles: a tool for plan- £]äää
ning the technological development of xää
the asset, as well as a knowledge man-
agement tool.
The asset technology plan is the pri- I-ÕÀVi\Ê/iÝ>ÃÊ,

Ê>`ÊÀ

}Êv
and long term. mary source of technology challenges
◗ Technological projects are for updating the Upstream Technological
implemented in accordance with Strategy. To update the upstream tech- ÀÊÀiÊÌ>
Ê>Ê`iV>`iÊÜi
stage gate logic and are formalized nology portfolio, the results of the tech-
>ÛiÊ«ÀÛ`i`ÊÀi>LiÊÀiÃiÀÛÀÊ
in the IT system for monitoring nology sessions with external partners,
V>À>VÌiÀâ>Ì
ÊÃiÀÛViÃÊÌÊi«
their progress and achievement of content from the KMS, as well as visits of
key performance indicators. specialized technology forums and sci- ÕÀÊVi
ÌÃÊÀi>âiÊÃ}
vV>
ÌÊ
◗ Each asset should implement a entific and technical forums and confer- Õ«Ã`iÊ«Ìi
Ì>Ê>
`Ê«ÀÛiÊ
technology development plan that ences can also be applied. ÜiÊ«À`ÕVÌÛÌÞ°
is associated with a complex asset
development plan and a business The Organization of
plan. Technology Development º
ÃÊ>ÊÌiV
}ÞÊi>`iÀ]ÊÜiÊ`À
Gazprom Neft created a new role with- LiÌÌiÀÊ«iÀvÀ
}ÊÜiÃÊÌ>
ÊÕÀÊ
Investment Ranking in the framework of implementing its
i}LÀÃÊ>
`Ê>ÝâiÊ
Gazprom Neft Upstream adopted a tech-
nology ranking tool using a seven-point
criteria system (Fig. 2). This transpar-
ent approach helps identify significant
technological projects for acceleration,
and is automatically updated once new
JPT • APRIL 2017
upstream technology strategy: a technol- Ã>Ài`iÀÊÛ>Õi°»
ogy leader, whose duty is to ensure com- Ê ÊÊÊÊÊÊÊÊ
ÃÃiÌÊ>>}iÀ]
prehensive technological development of Ê ÊÊÊÊÊÊÊÊ`-âi`Ê`i«i`iÌ
the whole function.
New specialized corporate bodies
also play an important role: the Steering
 Committee for the Upstream Technol-
ogy Strategy and the Upstream Technol-
ogy Committee. The steering committee
manages key issues of upstream tech-
nology development and is chaired by
the head of the upstream and includes
upstream top management and chief
executives of all subsidiaries.
The Upstream Technology Commit-
tee controls all primary and secondary
processes of developing, updating, and
implementing the upstream technology
strategy. The chairman is the director for
upstream technology and regular partici-
pants are technology leaders, represen-
tatives of the economic service, invited
independent experts, and representa-
tives of the New Technology Department
of Gazpromneft STC.
Lessons Learned
Due to the formation of a single target
budget for innovation, there was a need
to identify an optimal balance between
the implementation of strategic challeng-
es of the function and strategic require-
ments of all assets. It is important to have
an independent unit capable of perform-
ing this task within assets. In Gazprom
Neft, such a task is addressed by the New
Technology Department of the Scientif-
ic and Technical Center of the company,
which ensures the search and support
of the introduction of new technology
as well as ensures comprehensive sup-
port of innovative development of func-
tional areas.
Under current macroeconomic condi-
tions, flexibility becomes an important
criterion for the projects portfolio, i.e.,
effective monitoring of the achievement
of key performance indicators, as well as
the efficiency of decision making relat-
ed to the need to terminate or suspend
projects in case of deviations from the
planned parameters.
The involvement of all departments,
functions, and subsidiaries in the tech-
nology project implementation process
is also extremely important as it is rather
difficult to manage the technology port-
folio of more than 150 projects solely
from the Scientific and Technical Center.
Therefore, with an increase in the num-
ber of projects, renewed focus was put on
effective cross-functional interaction and
establishing the necessary organization
and tools in the subsidiaries.
In today’s conditions, cost reduc-
tion is a key challenge. Studies have
shown that a large number of technol-
ogy initiatives fail at a stage of commer-
cial deployment due to a variety of rea-
sons. However, many industry players
do not realize this fact. For some, a proj-
ect’s success is reflected in the success-
ful transition between stage gates with-
out considering the business case and
execution time. Gazprom Neft is well
aware of these risks and sticks to the
approach of “an early mistake is a non-
expensive mistake.”
The ability to manage and system-
atize the technological development of
Gazprom Neft described in this article
enables the company to provide flexibil-
ity in the development and updating of
its technology portfolio of projects, tak-
ing into account both the evolving mac-
roeconomic situation and the strategic
objectives of Gazprom Neft. JPT

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uh.edu/energy/geds uhgeds@uh.edu www.spe.org/go/register17HSSE

60 JPT • APRIL 2017

TECHNOLOGY FOCUS

Offshore Drilling and Completion

Martin Rylance, SPE, Senior Adviser, BP

Intervention-free wells, intelligent com-
pletions, automated and selective smart
tools—this veritable buzzword bingo
several years ago offered the real prom-
ise of some advancement but, unfortu-
nately, mostly delivered consistent fail-
ure and disappointment. That was a
period when the industry was littered
with a swath of great technologies, but
they were deployed in such a haphaz-
ard and almost incoherent way that
they were surely doomed to failure from
the offset. Although these technologies
often were presented as magic-bullet
solutions, few of their trials consid-
ered the necessary detail of the great-
er system within which they were
deployed and functioned, an approach
that ultimately tainted their delivery
and results.
Intervention-free wells,
intelligent completions,
automated and selective
smart tools—this veritable
buzzword bingo several
years ago offered
the real promise
of some advancement
but, unfortunately, mostly
delivered consistent failure
and disappointment.
That has since changed. In the pres-
ent day, the industry has developed a
deep and healthy respect for systems-
engineering processes and the associat-
ed full considerations during the deploy-
ment and trial of new technologies and
techniques. The result of this uptake has
been a significant improvement in the
successful use and broader deployment
of these automating, enhancing, and
attractive technology options.
This month, I would like to showcase
just a handful of the studies that dem-
onstrate deployment of such solutions
within long-established and mature sys-
tems where they have been considered
in an integrating, sympathetic, and, as a
direct result, highly successful way. This
overall-system appreciation and consid-
eration has finally allowed these enhance-
ments and technologies to enjoy their
newfound and sustained success. JPT

Recommended additional reading

Martin Rylance, SPE, is senior adviser and engineering manager
for the Frac & Stim Group with BP. He has worked with BP and its
partners and joint ventures for more than 28 years. Rylance
holds a BS degree in pure mathematics. He has been involved in
all aspects of pumping operations, well control, well interven-
tions, and pressure service. Rylance has specialized in unconven-
tional resources and fracturing in tectonic and high-pressure/
high-temperature environments. During his career, he has been
responsible for the implementation of numerous intervention campaigns, pilots, and
exploration programs. Having lived in 10 countries and pumped in more than 20,
Rylance has created and managed teams that have delivered thousands of fracturing
and stimulation treatments around the world. He has numerous papers and publica-
tions to his name. Rylance was an SPE Distinguished Lecturer in 2008–09 and in
2013–14 and is a member of the JPT Editorial Committee. He can be reached at
martin.rylance@se1.bp.com.
at OnePetro: www.onepetro.org.
OTC 26736 Remotely Operated Barrier
Valve Provides Interventionless Solution for
Offshore Vietnam Completion Campaign
by Bruce McLeod, Halliburton, et al.
SPE 181070 A Case Study on Remotely
Operated Intelligent Bridge Plugs for Plug-
and-Abandonment Operations by Zac
Suresh Arackakudiyil, Halliburton, et al.
OTC 27222 The Successful Development
and Installation of a New Single-Trip
Multizone Completion System Developed
for the Deepwater Gulf of Mexico Lower
Tertiary Formation by Tommy Grigsby,
Halliburton, et al.

JPT • APRIL 2017 61

 RFID Technology for Deepwater
Drilling and Completions Challenges

D eepwater operators continually

face technical and environmental
challenges to drilling and completing
when it is within range and enables the
tag to transmit the stored instructions.
Because a passive RFID tag is powered by
wells safely and efficiently. To address the reader antenna, it does not require
these challenges, the industry has batteries or an internal energy source,
used radio-frequency-identification which makes the passive tags less costly
(RFID) technology to reduce risk, rig and smaller than active tags. Receiving
time, and nonproductive time and to antennas can be programmed to respond
perform operations that traditional tools only to specific tag identification num-
cannot. This paper describes criteria for bers, and any tag passing by the receiver
selecting RFID-enabled tools rather than without these numbers will be ignored. Fig. 1—Typical passive RFID tags,
traditional tools, integration of RFID 0.91 in. long and 0.15 in. in diameter.
tools with operations, and value-added Transferring RFID Technology
features enabled by RFID. The complete to Deep Water tions. RFID tags are readable in typical
paper also presents contingency, RFID technology has been integrated drilling and completion fluids such as
safety, and risk-assessment factors into drilling and completions applica- mud, seawater, brine, and sand and prop-
and case studies. tions. One application of RFID technol- pant mixes. Because RFID tools can be
ogy is for drilling automation and drill- programmed to respond only to tags that
RFID Background pipe identification. RFID tags attached to contain unique identification numbers,
RFID is a method of communication using drillpipe identify individual-joint dimen- multiple RFID tools can be run in line on
radio-frequency electromagnetic fields. sions, track inspection information, and the same string and each tool will func-
Information is stored within RFID tags allow inventory tracking. These tags can tion only when actuated by its specifical-
and is transferred to a reader when the be used also to create an automatic pipe ly programmed tag.
two are close to each other. There are tally as drillpipe joints are run in hole past RFID underreamers can also be benefi-
two types of tags: active tags, which con- a reader located below the rotary. RFID cial in applications where multiple actua-
tain their own energy source, and passive technology has moved also into cement- tions are required, no restrictions on the
tags, which are energized by the reader as ing. RFID-activated port collars have been inside diameter (ID) are desired, or rat-
they pass by. A typical passive tag used in designed recently for use in a drilling- hole lengths need to be minimized.
the tools described in this paper is shown with-liner application in the North Sea to
in Fig. 1. This tag contains a transponder cement a 9⅝-in. liner and eliminate the RFID Downhole-Tool Systems
circuit and an antenna that receives sig- need to open the ports mechanically by for Drilling and Completions
nals from the reader. The transponder is means of a long inner string. The implementation of RFID technology
programmed with a unique identification Incorporating RFID technology into within the stimulation environment has
number and instructions for the reader. operations has brought benefits to drill- a number of significant technology hur-
The reader contains a receiving anten- ing and completions. Using RFID tags to dles that must be crossed. Stimulation
na and a power source (Fig. 2) that gen- operate downhole tools eliminates the applications typically involve high flow
erates an electromagnetic field. The field need for mechanical intervention and rates and bottomhole pressures, large
generated by the antenna powers the tag reduces rig time by streamlining opera- temperature swings, and debris-laden
fluids. These all typically cause problems
This article, written by Special Publications Editor Adam Wilson, contains highlights for downhole tools. To address these is-
sues, two tools were designed: an RFID-
of paper SPE 181012, “Leveraging RFID Technology for Deepwater Drilling and
activated stimulation sleeve that can be
Completions Challenges,” by Euan Murdoch, SPE, Eddie Valverde, SPE, Rupa
opened remotely and an RFID-operated
Sharma, Crystal Wreden, SPE, Alex Goodwin, and Jonathan Osei-Kuffour, flapper valve that can be closed remote-
Weatherford, and Kyle Kimmitt, Cornelis Loonstra, Babak Ghaempanah, and ly to act as a barrier between zones and
Deandre Reagins, Shell, prepared for the 2016 SPE Intelligent Energy International then can be opened remotely to allow
Conference and Exhibition, Aberdeen, 6–8 September. The paper has not been well cleanup and, ultimately, hydrocar-
peer reviewed. bon production.

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

62 JPT • APRIL 2017

RFID-Controlled Stimulation Sleeve.
The RFID-controlled stimulation sleeve
can be used in a proppant-fracture en-
vironment. It is a single-shot tool con-
trolled by an atmospheric control module
(ACM). The hydraulically balanced sleeve
opens only when the ACM is actuated.
The tool is run in hole in the closed po-
sition, allowing circulation through the
liner to be maintained during installa-
tion. The tool is actuated by means of
an RFID tag, pressure cycle, or timer.
The electronics actuate the ACM, and hy-
drostatic pressure is applied to one side
of the hydraulic sleeve. This drives the
sleeve open. The tool has been designed
to be highly tolerant of debris. The hy-
draulic system is self-contained within
the tool. There are no springs, and the
number of moving parts exposed to the
wellbore is minimized.
RFID-Controlled Flapper Valve. The
RFID-controlled flapper valve is a re-
motely operated flapper-based omni-
directional barrier valve. Although it is
a single-shot tool that uses ACM activa-
tion, there are two ACMs that allow the
flapper to be closed remotely, typically
Antenna generates
constant radio field The antenna powers up the
RFID tag so the tag can The antenna has an internal
to “listen” for an
RFID-tag signal transmit instructions power source, such as batteries
Fig. 2—Passive-RFID-tag reader containing a receiving antenna and internal
power source.
by means of RFID tags, and then opened tube. This provides a barrier from above
again through pressure cycles or flowing that can be used to set hydraulic tools or
pressure cycles. perform stimulation operations.
The RFID-controlled flapper valve is When the stimulation operations are
typically run in hole in the open position, complete, the second ACM is actuated to
in which the flapper is held behind a flow open the flapper. This allows hydrostatic
tube. This keeps the valve out of the flow pressure to be applied to the lower flow
path and removes any issues with debris tube, and it moves down. Driven by the
in the well. When the tool is operated, the upper flow tube, the flapper pivots down
first ACM is actuated. This allows hydro- and moves back behind the upper flow
static pressure to move the upper flow tube as it opens. This then results in a
tube up and releases the flapper into the smooth throughbore configuration with
wellbore. As a result of a simple piston ar- no exposed components.
rangement, the direction of the upper flow
tube is then changed and it exerts force on RFID-Controlled Drilling Reamer. The
the flapper, forming a seal on a lower flow RFID-controlled drilling reamer is a con-
ADVANCED
TECHNOLOGY
VALVE
 centric mass-balance underreamer ca-
pable of enlarging the borehole below
casing restrictions. The RFID-controlled
drilling reamer was designed to be oper-
ated multiple times on demand without
restricting the ID of the tool. The versa-
tile reamer can simultaneously drill and
enlarge when used in conjunction with
rotary-steerable systems or rotary bot-
tomhole assemblies. The reamer can be
used also to underream existing bore-
holes and to open selective zones for
solid-expandable installations.
The reamer is electronically actuated
using RFID technology, which provides
virtually unlimited actuations and deac-
tuations on demand. A small yet durable
RFID tag is deployed at surface into the
drillpipe ID at surface level and is circu-
lated downhole with the drilling fluid.
The tag transmits instructions to an elec-
tronic reader on the reamer controller,
and the cutter blocks extend fully from
the reamer body. Another RFID tag is cir-
culated to retract the cutter blocks.
RFID-Controlled Circulation Sub. The
RFID-controlled circulation sub is a re-
motely actuated circulation device that
facilitates drilling and hole-cleanup op-
erations. The drilling circulation sub
uses RFID technology to communicate
open and close commands. When the
operator needs to move the sub from
the closed position to either of the two
open positions, an RFID tag is deployed
from the surface and circulated internal-
ly through the sub. The antenna receives
the RFID signal, and a hydraulic power
unit moves the sleeve into the appropri-
ate position. Ports open and allow cir-
culation directly into the annulus to in-
crease annular velocities to aid cleanup.
Flow also can be split between the annu-
lus and drillpipe.
RFID Reverse-Cementing Tools. A
reverse-circulation placement technique
is an option for cementing when a reduc-
tion in equivalent circulating densities is
required downhole.
To apply reverse cementing in deep
water, fluids are pumped down a work
string and diverted into the annu-
lus below the riser and blowout pre-
venter. Returns are taken up the inside
of the casing and then diverted back into
the  annulus. RFID-actuated, subsurface
reverse-cementing tools were developed
to facilitate this unique flow path, as well
as a conventional flow path, and to pro-
vide a means to switch flow directions
per operational requirements.
The RFID subsurface reverse-cementing
tool system includes three tool designs: a
circulation tool, a crossover tool, and an
RFID-controlled flapper valve.
The RFID-actuated circulation tool
provides the ability to continue circula-
tion into the work-string annulus selec-
tively without flowing fluid past the de-
pleted zone and without displacing the
cement in place. The circulation tool has
two positions: a neutral position for circu-
lation down the work string and a bypass
position to circulate into the annulus.
The RFID-actuated crossover tool pro-
vides the ability to switch the flow path
selectively from the tool ID to the annu-
lus above a liner-hanger-running tool and
to bypass returns from the tool ID to the
upper annulus.
The RFID-controlled flapper valve has
a design similar to that of the flapper
used in the RFID-controlled hydraulic-
fracture system, and it operates in a simi-
lar manner. JPT

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Systems Approach to Product Design
for Ultradeepwater Completion Systems

T his paper describes how a systems-

engineering approach was used
to develop completion technology
tiary. A reservoir-engineering team eval-
uated publicly available data from the
deepwater Gulf of Mexico Wilcox play
The IPT applied design-for-Six-Sigma
(DFSS) processes to guide the team to
define needs and design elements and to
targeted for the ultradeepwater Lower and developed a basis of design (BOD) create system concepts. One of the DFSS
Tertiary Trend. The paper describes for the Wilcox/Lower Tertiary Trend. The processes used was the define, mea-
how an integrated completion system BOD formed the target-reservoir spec- sure, explore, develop, and implement
was developed for this market from ifications for the completion system. (DMEDI) process. DMEDI is a concep-
concept through qualification by an The study identified reservoir and geo- tual, creative approach to the design of
integrated product team (IPT). The mechanical properties as well as poten- new processes used in Six Sigma process
IPT is a cross-functional team that tial regional trends and challenges facing design projects. DMEDI is used to build
was assembled with the objective of deepwater Gulf of Mexico exploration new processes on the basis of analysis
developing a sandface-to-safety-valve and development. of customer needs and preferences. It is
integrated completion. The traditional catalog approach as- similar to the better-known and more
signs the risk of tool integration and widely used define, measure, analyze,
Introduction interoperability to the completion en- improve, and control (DMAIC) process.
The traditional approach to develop- gineer. Because catalog products are de- DMAIC is more applicable to continuous-
ing completion tools is to create re- veloped within narrow requirements improvement projects to reduce process
quirements for each individual compo- focused on the individual tool, the impli- variation and produce incremental im-
nent. These tools form the portfolio of cation of the tool being used as part of a provements, whereas DMEDI is better
products from which a completions en- complex completion system is not taken structured for design of a new product
gineer would design a completion to into account (i.e., the broader perspec- or service.
meet the well requirements. The onus tive of the tool functioning as part of an
of developing the completion as an in- integrated system over the life cycle of Data Gathering
tegrated system falls upon the opera- the well is not taken into consideration in As part of the DMEDI process frame-
tor’s completion engineering team. If typical tool development). work, the IPT undertook a voice-of-the-
there is a gap between well conditions In contrast, the systems-engineering customer analysis to understand custom-
and tool-performance specifications, approach used by the IPT takes a holis- er needs and put them into the context of
the completion engineering team would tic, top-down approach to solving the current product capabilities. Voice of the
contact a service company to seek an completion and production problem. customer is a market research technique
augmented product. The IPT objective is to design a purpose- that produces a detailed set of customer
This paper describes the approach built completion system that targets the wants and needs, organized into a hierar-
used to understand market needs for the life-cycle needs of ultradeepwater Lower chical structure and prioritized in terms
ultradeepwater Lower Tertiary Trend Tertiary wells. Thus, the IPT approach- of relative importance and satisfaction
and the development of an integrated es design and development by taking with current alternatives.
completion system to meet those needs. the operators’ perspective during the de- Customer information was gathered by
velopment of design drivers, system re- analyzing requests for proposals (RFPs)
Systems Approach quirements, and completion concepts. from operators surveying completion ca-
The IPT was created with the mission This broader idea of the system drives pabilities for Lower Tertiary projects in
of developing an integrated completion the requirements for subsystems and in- their pipeline. These RFPs provided in-
system for the Gulf of Mexico Lower Ter- dividual tools. sight into specific customer wants and
needs. Customer interviews were also
conducted to research specific customer
This article, written by Special Publications Editor Adam Wilson, contains highlights
wants and needs.
of paper OTC 26937, “Systems Approach to Product Design for Ultradeepwater Lower
Tertiary Completion Systems,” by Robbie R. Pateder, Kirby G. Schrader, SPE, Problem Statements
Jason Allen, and Michael Manera, Baker Hughes, prepared for the 2016 Offshore A broad group of subject-matter experts
Technology Conference, Houston, 2–5 May. The paper has not been peer reviewed. was gathered to assess the information.
Copyright 2016 Offshore Technology Conference. Reproduced by permission. The feedback was refined and developed

The complete paper is available for purchase at OnePetro: www.onepetro.org.

JPT • APRIL 2017 65

 into problem statements. Problem state-
ments are a refinement of the needs and
requests as defined by customers and
other stakeholders.
Problem statements helped the team
understand the reasons behind the cus-
tomer need, which helped prioritize the
importance to the customer. The prob-
lem statements define the need by means
of the context of the problem. Context
provides information about the user and
the scenario in which the problem is man-
ifest. Problem statements were priori-
tized by the effect to the customer. There-
fore, the requirements that derived from
problem statements were prioritized.
Design Elements
The next step was to organize the prob-
lem statements into similar themes.
This was accomplished by organizing
the problem statements into groups and
further elaborating on the context. The
groups represented high-level functions
or features that were called design ele-
ments. Design elements are categories of
66
features that describe groups of technol-
ogies or product considerations.
Design Values
Within these design elements, specif-
ic values for each design element were
brainstormed to address the problem
statement. Values are specific technolo-
gies or approaches that would fit into a
design element. Chemical injection of
scale inhibitors is an example of a de-
sign value that would be encompassed
by the flow-assurance design element.
Diffusion bonded screen is an example
of a design value for the solids-control
design element.
Concept Development
The team brainstormed system con-
cepts by building up completion designs
using various combinations of design val-
ues. Concepts were created by identi-
fying design values that fit together to
address the overall design challenge.
Multiple system design concepts were
created. These were subsequently elabo-
rated upon and evaluated as system con-
cepts. The group reviewed the system
concepts by how well each would address
the problem statements and objectives of
improving safety and reliability, reduc-
ing installation complexity, maximizing
hydrocarbon production, and improv-
ing recovery factors. Each system con-
cept was analyzed, and alternatives were
synthesized, to select and improve the
strongest system concepts. The focus was
first on the alternative with the most pros
and the fewest cons. Each system concept
was then examined for strengths and
weaknesses. The weaknesses were evalu-
ated by the teams to see if they could be
eliminated or mitigated. The strongest
concepts were identified and used as the
basis for further detailed design.
Quality Function Deployment
and Integrated-System
Statement of Requirements
A quality function deployment (QFD) was
used to prioritize the customer needs
into development requirements and sub-
sequently into a statement of require-
ments for an integrated system. The
integrated-system requirement was
disaggregated into functional require-
ments for subsystems and subsequent
product requirements.
The integrated-system statement of
requirements (ISSOR) is an engineer-
ing document that reflects the require-
ments to achieve the completion con-
cept described in the BOD. The ISSOR
is a detailed set of requirements for the
integrated system to be developed. The
ISSOR identifies the components that
make up the subsystems or tools and
their desired capability and function-
ality, including but not limited to pres-
sure and temperature ratings, tension,
burst/collapse, and loading conditions.
The ISSOR addresses reliability require-
ments at the system level and identifies
system-integration requirements and
interfaces between the identified sub-
systems. Requirements for subsystems
and components cascade down from
the ISSOR.
Failure Mode, Effects,
and Criticality Analysis
Failure modes, effects, and criticality
analysis (FMECA) is a technique used to
identify potential failure modes and as-
sess the risk associated with those failure
modes. The method then incorporates a
process to rank the issues in terms of im-
portance and to identify and take actions
to address the issues in order of priority.
The FMECA methodology was used early
in the conceptual design phase to assess
the risk of failures and loss of perfor-
mance because of potential component
failures. The objective of the analysis was
to identify the potential failure modes
and rank the failures. The results were
used to assess mitigations to address the
potential failure modes through process
or equipment design.
Conclusion
The use of innovative approaches re-
sulted in reducing product-development
times by half despite the greater scope
of technology development and large
number of product-development activ-
ities. The developed system has been
tested thoroughly for interoperability
and has been optimized for peak ef-
ficiency while adhering to strict safe-
ty-margin and regulatory require-
ments. The approach is applicable to
other technology-development needs
characterized by low technology
readiness and multiple technology-
development projects. JPT
JPT • APRIL 2017
 Interventionless Reservoir-Isolation Valve
Removes Need for Intermediate Completion
Fig. 1—RFID RIV, cut in half.

T his paper focuses on the application

of radio-frequency-identification
(RFID) technology to enable an operator
to eliminate an intervention run (or
intermediate liner) for a 10,000-ft
reservoir section. The case-study well
has preperforated liner in two zones
isolated with swellable packers and
pressure-actuated annulus packers.
The typical procedure is to straddle the
annulus packers individually using an
inflatable plug, but setting the lower
annulus packer incurs additional risk
while running in the horizontal for
an extended distance. Here, an RFID-
actuated reservoir-isolation valve (RIV)
eliminates an intervention run.
Methodology
RFID is now a common technology used
across various industries to provide a
means of communication between a pas-
sive antenna and an active antenna. This
technology has now been adapted and
applied to actuate downhole tools in oil
and gas wells.
In the RFID portfolio, the installed
equipment houses the active antenna and
RFID tags that are deployed at surface
and provide the passive antenna. The tool
provides a secure, pressure-resistant en-
casement for the electronics required.
The RFID tag contains a memory bank to
store a command that is programmed at
surface and a coil that takes power from
the radio-frequency field generated by
the active tool antenna. This power pro-
vided by the active antenna is passed di-
rectly to the passive antenna and allows
the tag to transmit the programmed com-
This article, written by Special Publications Editor Adam Wilson, contains highlights
of paper SPE 184706, “Interventionless Reservoir-Isolation Valve Removes the
Requirement for an Intermediate Completion: A Case Study,” by Andrew Edwards,
SPE, Euan Murdoch, SPE, and Christopher Munro, SPE, Weatherford, prepared for
the 2017 SPE/IADC Drilling Conference and Exhibition, The Hague, 14–16 March. The
paper has not been peer reviewed.
mand to the RFID tool. The command is
then decoded and processed within the
tool and then acted upon. The command
to extend the battery life. When
these modes are combined into
can include logic to tell the tool to func- an operational sequence, great
tion immediately, function after a delay, flexibility is available and all as-
or switch operating modes to look for pects of a client’s operational re-
another trigger. quirements can be considered.
The small size of the tag allows free-
dom of movement and easy integration The RFID RIV
with existing completions. Because RFID The RFID RIV (Fig. 1) is a bidi-
transmission is a close-proximity means rectional isolation valve that pro-
of transferring data, it requires no direct vides the user with the means to
contact between both devices. The com- remotely isolate sections of the
munication can be made in a downhole well temporarily. Both before
context at up to 6 to 12 in. and after functioning, the flap-
RFID technology has so far been per valve is housed behind a flow
used in drilling applications, in upper- tube, keeping the bore of the tool
completion equipment, and in the reser- smooth and without restriction.
voir as an inflow-control-device sleeve or The tool is actuated using the pre-
for providing a multizone stimulation sys- viously mentioned RFID modes;
tem in slickwater or hydraulic proppant. it is typically closed with an
RFID tools have three modes of acti- RFID tag and then opened using
vation: RFID tags, frequency-modulated a frequency-modulated pressure
pressure signatures, and timers. An RFID signature. The tool actuation uses
tool is not restricted to just one of these hydrostatic pressure to operate
modes. Depending on the application and and functions with the use of two
system logic, the tool operation could in- atmospheric control modules.
corporate combinations of the three run- When a command is received, the
ning in parallel. This gives the system the tool electronics actuate a valve,
ability to be used for a broad range of ap- which allows tubing pressure
plications. The batteries on board the to act on a piston arrangement
tool provide the power required for the either to release the flapper and
tool operation. In RFID mode, power is close the valve or to retract the
used to energize the active antenna and flapper and reopen the valve.
monitor for RFID tags. In pressure mode, Before this application, previ-
a pressure transducer is used to monitor ous generations of the tool have
the well for pressure cycles, and the timer been installed to provide a barrier
operates from an onboard clock. A fourth for hydraulic packer-setting op-
mode, hibernation, puts the tool to sleep erations while isolating the lower
for a given period of time and can be used completion and reservoir. A simi-
lar unidirectional flapper isolation valve
was installed as part of a remotely oper-
ated lower-completion system. The RFID
RIV has gone through extensive testing
(including gas testing) and has been qual-
ified to International Organization for
Standardization Standard 28781 V1. The
tool was put through a number of pres-

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

68 JPT • APRIL 2017

sure and temperature swings as part of
this testing and through numerous func-
tions using RFID tags and pressure sig-
natures. The flapper is now qualified to a
10,000-psi differential above and below.
The electronics also underwent a strin-
gent qualification. The batteries were test-
ed and screened, and the entire electron-
ics assembly was put through shock and
vibration loading. For this specific appli-
cation, additional testing was conduct-
ed to ensure that an RFID tag would flow
through a liner-running tool.
Several days later, the well will be
stimulated and the RFID RIV will be
reopened. The RFID RIV will be trig-
gered to open by applying a frequency-
modulated pressure signature. This pres-
sure signature can be sent either from the
stimulation vessel or through standard
rig equipment.
Conclusion
The use of an RFID RIV in this applica-
tion will benefit the client by eliminat-
ing the requirement for an intermediate
completion, saving numerous days of rig
time. Ball-drop operations can also be
removed to a contingency operation be-
cause the shut flapper provides a closed
system for all pressure activities and set-
ting packers. Finally, the RFID RIV will
save any intervention runs required to
run an inflatable plug to the lower com-
pletion. Typically, 24 to 36 hours of rig
time can be saved and any inherent risks
can be mitigated. JPT

Procedure Overview
This completion design had been run con-
Proppant pack
sistently for a number of years in the
consolidation
North Sea, but the operator was looking technology
to save time, reduce cost, and eliminate
risk. Previously, two separate intervention
trips were required to isolate and set in-
flatable annulus barrier packers; however,
with the introduction of the RFID RIV, the Protect
deeper of the two runs can be eliminated.
The RFID RIV is to be run as part of
the lower 4½-in. section, consisting pri-
your
marily of perforated liner, the RFID RIV,
and a liner hanger/packer. This is set in a
integrity
7-in. liner that has a swellable and inflat-
able annulus barrier packer on the an-
nulus to provide isolation from the per-
forated 7-in. liner above. Once the RIV is
at depth, the annulus is flushed to allow
the packer to swell. During the circula-
tion activity, an RFID tag is dropped. It
commands the RFID RIV to close after a
given time period. As a contingency, the
Conventional proppant FUSION technology
RFID RIV can be programmed to close Unconsolidated pack Consolidated pack
on a timer. The liner hanger/packer then
can be set against the RIV without requir-
ing balls to be circulated. Once the valve
is closed, an inflatable isolation plug is Now you can create a bonded, high integrity
run to straddle the upper-most inflatable- proppant pack without closure stress
annulus-barrier-packer setting ports and
FUSION® proppant pack consolidation technology
pressure is applied to set the upper packer. prevents proppant washout from the non-compressive
Once the plug is retrieved, the upper com- annulus and near-wellbore areas to protect critical
pletion is run and landed into the lower- well integrity.
completion liner and a dissolvable ball is
dropped to set the 7-in. isolation packer The technology forms a high-integrity, high-permeability
proppant pack so you can inject and produce at the
and the 10¾-in. production packer. In fur-
ultra-high rates required to improve well economics and
ther instances of this completion, a second increase EUR.
RFID RIV could be used in this role to elim-
inate the need to circulate a ball. At this FUSION technology has been successfully deployed in
point, the lower annulus packer is isolat- GOM deepwater injection wells, and can be applied for
ed by the RFID RIV and the 7-in. isolation frac and pack sand control applications.
packer, pressure is applied, and the annu-
carboceramics.com/fusion
lus packer is set without the requirement
to run any intervention.

JPT • APRIL 2017 69

 TECHNOLOGY FOCUS

Natural Gas Processing and Handling

Xiuli Wang, SPE, Senior Adviser, Baker Hughes

Natural gas had a bullish year in 2016
as the average Henry Hub spot price
jumped from USD 2.28/million Btu
in January to USD 3.59/million Btu in
December (+58%), “the largest per-
centage increase in price among energy
commodities,” according to the Energy
Information Administration (EIA).
According to the same source, the US
market consumed 75.07 Bcf/D of gas in
2016, 0.6% more than 2015, while US
consumer-grade natural-gas production
was down 2.4% from 74.14 to 72.36 Bcf/D
compared with 2015. Coupled with the
electric-power (+4.2%) and industrial
(+1.9%) sectors, this contributed to a
noticeable rise in gas prices. Although the
US is a net gas importer, 2016 officially
marked the US as an exporter of liquefied
natural gas (LNG) (by Cheniere Energy
from zero in 2015 to 0.5 Bcf/D in 2016).
While gas transportation
primarily by pipeline
over land and LNG over
water remain the most
economically attractive
means to transport large
quantities of gas over long
distances, cost-effectively
monetizing stranded gas is
still a challenge, especially
in offshore environments.
While gas transportation primarily by
pipeline over land and LNG over water
remain the most economically attractive
means to transport large quantities of gas
over long distances, cost-effectively mon-
etizing stranded gas is still a challenge,
especially in offshore environments.
A recent absorption-system develop-
ment by ExxonMobil claims to improve
the efficiency of removing water vapor
from natural gas, in both on- and off-
shore environments, by shrinking the
surface footprint by 70%, reducing the
overall weight by half, and, ultimately,
lowering the total cost. This technology
should enable the development of some
otherwise uneconomical fields.
To learn more, attend the SPE
workshop  Floating LNG—Weather-
ing the Challenges, in Kuala Lumpur
on 20–21  March, and the SPE Annu-
al Technical Conference and Exhibi-
tion, on 9–11  October in San Antonio,
Texas, USA. JPT

Recommended additional reading

Xiuli Wang, SPE, is a senior adviser with Baker Hughes.
Previously, she was vice president and chief technology officer
for XGas, focusing on natural-gas monetization. Wang also had
8 years of operational experience with BP, specializing in oil and
natural-gas production, completion, and sand control. She holds
a PhD degree in chemical engineering from the University of
Houston, a BS degree from Dalian University of Technology, and
an MS degree from Tsinghua University. Wang was the associate
editor in chief of the Journal of Natural Gas Science and Engineering during 2008–11
and currently serves on the JPT Editorial Committee. In 2007, she was named the
United States Asian American Engineer of the Year by the Chinese Institute of
Engineers—USA. Wang was an SPE Distinguished Lecturer in 2013–14 and was named
an SPE Distinguished Member in 2014.
at OnePetro: www.onepetro.org.
SPE 181610 Planning for Uncertainties in
Gas Composition: Reduce Project Risks by
Early Adoption of a Robust Gas-Processing
Concept by Pavan Chilukuri, Shell, et al.
SPE 183510 Flared-Gas Monetization
With Modular Gas-to-Liquid Units: Oilfield
Conversion of Associated Gas Into Petrol
at Small Scales by Zhong He, Primus Green
Energy, et al.
SPE 183403 New Economical Process To
Monetize High-CO2 Natural Gas by Conrad
Ayasse, Canada Chemical Corporation, et al.

70 JPT • APRIL 2017

Fiber-Optic Leak-Detection Project
T he objectives of the Fiber-Optic
Leak-Detection (FOLD) project,
carried out in Verneuil-en-Halatte,
France, were to assess the capability
of fiber-optic sensing to detect a
small gaseous leakage on a buried
pipe, give guidelines regarding the
best deployment positions of the
fiber along the pipe, compare the
performance of several methodologies,
and assess the impact of the fiber-optic
length on the detection performance.
Buried Pipe and Nozzle Orifices
The 30-m-long pipe used for the test-
ing campaign was typical of those used
for gas transportation. It was made of
steel and had an internal diameter of
390  mm. As are many in-service pipe-
lines installed during the last century,
it was originally coated with coal-tar
enamel. This coating was removed be-
fore burying the pipe.
All leakages were simulated from the
external surface of the pipe. As opposed
to the real conditions, this pipe was
not filled with pressurized gas but was
rather used as a simple cylindrical enve-
lope aimed at accommodating all lines
feeding the different leakages with gas.
There were 12 nozzle orifices on the
pipe, thereby permitting investigation
of four different release diameters (1,
3, 5, and 7 mm) and three different
release directions (upward, sideways,
and downward).
For ease of tracking, each row of noz-
zle orifices along the pipe was attributed
to a given release diameter. In addition,
to avoid any important deterioration of
the soil that may influence the experi-
mental results between two neighboring
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper SPE 183137, “Fiber-Optic Leak-Detection Project,” by Marc Baqué, Total,
prepared for the 2016 Abu Dhabi International Petroleum Exhibition and Conference,
Abu Dhabi, 7–10 November. The paper has not been peer reviewed.
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
JPT • APRIL 2017
Rack of Main line
N2 P1 T1
Rack of bottles (CH4 or H2)
7 mm 3 mm 5 mm 1 mm
Feeding lines
Fig. 1—Schematic of the FOLD project. NV=needle valve.
orifices, the following sequence was ad-
opted for the orifices: 1, 5, 3, and 7 mm.
The first and last rows were located 5 m
from the ends of the pipe. All rows were
equally distributed along the remaining
distance of the pipe.
Main Line
The main line was made of stainless
steel  and had a nominal size of 1 in.
(Fig.  1). This corresponds to inner
and outer diameters equal to 24.3 and
33.4  mm, respectively. A dome-loaded
DPR
NV Vent line
MV2
Membrane
P2 MV1 ROV
DLPR
P4 MV4
T4 MV3
T3 P3
Buried pipe
pressure reducer (DLPR) driven in by a
driving pressure reducer (DPR) was used
to adjust the gas pressure to the desired
value at the nozzle orifice. Downstream
of the equipment, there was a pneumat-
ic remotely operated valve (ROV) that
allowed triggering the release remotely.
Gas then flowed through two different
branches of the main line, depending on
which nozzle orifice was being tested:
one for Valve 1 and 5 mm and the other
for Valve 3 and 7 mm. This  was  con-
trolled by means of a manual valve
(MV) located at the entry of each
branch (MV3 and MV4 in Fig.  1).  The
vent line was used only during the
main-line-purging operations. This
purging was performed with nitrogen
after each test.
71
 As far as instrumentation is con-
cerned, the pressure was measured up-
stream and downstream of the DLPR
at the entry of each branch. The tem-
perature was measured upstream of the
pressure reducer and at the entry of
each branch. This was performed by use
of K-type thermocouples.
Feeding Lines
All feeding lines were made of stainless
steel and had a nominal size of 1 in. This
corresponded to inner and outer diam-
eters equal to 24.3 and 33.4 mm, re-
spectively. This dimension was chosen
so that the surface area of the biggest
orifice was less than 10% of the cross-
sectional area of the line. This ensured
that the pressure losses would occur in
the vicinity of the orifice and not along
the line. Care was also taken not to im-
pose sharp bends in the lines.
Given that the space was rather lim-
ited inside the pipe, six of these lines
entered the pipe from one side and the
other six entered from the other side.
Several openings were made on the pipe
to have full access to the interior. All
lines were solidly welded to the internal
wall of the pipe with metallic struts.
To provide guidelines regarding the
positioning of the optical fiber, a total of
nine runs of the tested cable were made
all along the 30-m-long pipe. Most of
these runs were located above the pipe.
Runs F and G were almost identical ex-
cept that the second one passed through
a polyethylene sheath. By comparing the
behavior of the optical cable in the vicin-
ity of these two runs, it was possible to
check whether the use of such protec-
tion would reduce, or even inhibit, its
detection capability.
Run H was installed very close to the
pipe. It was not clamped or glued to
the pipe but simply rested on it. Be-
tween two consecutive runs, a semicir-
cular loop was made with the optical
cable. This was carried out at both ends
of the pipe, and a length of approximate-
ly 8 m was enforced for the U-turn. This
was judged sufficient to avoid any undue
constraint within the cable.
Experimental Campaign
This experimental campaign was in-
tended to test the capability of an opti-
72
cal fiber to detect small gaseous leak-
ages on a buried pipe.
The system makes use of a nonlin-
ear interaction between the light and
the glass material of which the fiber is
made. If light at a known wavelength
is launched into a fiber, a very small
amount of it is scattered back at sever-
al points along the fiber. That light will
contain information on the local prop-
erties of the fiber because
◗ The amplitude of the Rayleigh
peak is a function of temperature
and deformation experienced by
the fiber. This deformation may
be caused by acoustic waves.
◗ The amplitude of the anti-Stokes
component of the Raman is
strongly temperature-dependent,
whereas the amplitude of the
Stokes component is not.
The frequency of the Brillouin is in-
trinsically sensitive to temperature and
deformation experienced by the fiber.
Temperature Profile
The temperature profile of the sen-
sor cable is not homogeneous. This is
caused by the sensor cable not being
completely buried. In the transitions
between the nine runs, the cable leaves
the ground and is exposed to the air for
approximately 8 m.
Results
The ambient conditions at the begin-
ning of the test include atmospheric
pressure, ambient temperature, and rel-
ative humidity. The variation of the soil
temperature is measured first on the
planes perpendicular to the triggered
nozzle and then on those perpendicu-
lar to the other nozzles. The measure-
ments made in the main line (pressure,
temperature) include:
◗ The measured released pressure
◗ The starting time and the duration
of the release
◗ The variation of the soil
temperature measured first on
the planes perpendicular to the
triggered nozzle and then on
those perpendicular to the other
nozzles
When studying the behavior of the in-
terrogators that rely on a temperature
change to detect a gaseous leakage,
◗ The optical fiber had to be located
not more than 20 cm from the
buried pipe to be able to detect
the leakages performed during
the FOLD project. Runs beyond
this distance were rarely triggered
during the tests.
◗ The run located very close to
the pipe is the one that detects
most of the tested leakages. Yet
one must be very careful when
using this information because this
run of the cable might be cooled
down because of conduction along
the pipe from the leaking orifice
and not because of the release
itself. It is worth recalling that
the tested pipe was completely
uncoated.
Conclusions
◗ Four interrogators tested with
distributed-sensor-testing (DST)
technology (i.e., Raman and
Brillouin) gave comprehensive
results for a methane-gas leak.
◗ Less than 500 m: DST devices
located in front of the leakage
within a cone (approximately
90°/20 cm high) were able to
detect the gas leak and determine
a coefficient.
◗ Greater than 2 km : Only one of
the two DST Brillouin devices
located in front of the leakage
within a cone (approximately
90°/20 cm high) was able to detect
the gas leak and determine a
coefficient.
Guidelines for positioning of the fiber
(only valid for a short distance of the
optical fiber) include the following:
◗ The behavior of the optical fiber
placed very close to an uncoated
pipe could be affected more by
the conduction effect in the metal
than by the release itself.
◗ The optical fiber had to be located
not more than 20 cm from the
buried pipe to be able to detect
the leakages implemented during
the FOLD project. Runs positioned
beyond this distance were rarely
triggered during the tests.
◗ The best positioning of the
optical fiber seems to be above
the pipe. JPT
JPT • APRIL 2017
New results
without a new stack.

Tested beyond 600% of API

requirements with zero failures.
The new RCX™ Low-Shock SPM Valve virtually eliminates
hydraulic shock during operations, extending the lifespan of the
entire MUX control circuit. Its patent-protected design simplifies
onsite assembly and installation, lowering the risk of damaging
components during field maintenance. This technology is now
available for retrofit, to increase the reliability of existing 5th
and 6th generation MUX systems.

nov.com/beyond20k

© 2017 | National Oilwell Varco | All rights reserved

 A New Distillation Process
for the Upgrading of Acid Gas

I n this work, the potential of a new

low-temperature distillation process
for natural-gas sweetening has been
units, the steam consumption is a signifi-
cant part of the total energy demand of
the process and thus of the total operating
uct stream is obtained as gas. The ratio-
nale of the process to avoid solid CO2 for-
mation is the bypassing of the maximum
investigated. The proposed technology costs. The complete paper defines a merit- of the SLV locus of the CH4-CO2 system.
consists of a dual pressure-distillation index function to determine the trade-off In the HP section, the separation is lim-
scheme designed to avoid the formation between the two considered technologies. ited by the critical point of the mixture that
of a solid phase in all parts of the does not allow reaching the commercial
process while remaining able to The Low-Temperature Process grade for the methane stream. Therefore,
fulfill the required natural-gas-purity The new process for the low-temperature the mixture must be depressurized slight-
specifications. The new process offers purification of natural gas is based on a ly under the critical pressure of pure CH4,
the competitive advantages of low- dual-pressure (approximately 40/50 bar) avoiding huge recompression costs. At 50
temperature technologies while avoiding low-temperature distillation operation, bar, the solid/liquid equilibrium (SLE) and
carbon dioxide (CO2) solidification and designed to bypass the solid/liquid/vapor the vapor/liquid equilibrium surfaces are
solvent addition. (SLV) locus of the methane (CH4) and CO2 completely divided; thus, no solidification
binary mixture through a proper ther- during distillation operation may occur.
Introduction modynamic pathway. In this work, an Solidification inside distillation units can
The industry must find technologies that optimized process layout has been taken occur only at the triple point. During the
allow the profitable exploitation of low- into account. cooling at 50 bar of the split part of the HP
quality and high-CO2-content gas re- The gas stream to be purified is fed section of the top product, the SLE is never
serves in order to meet increasing de- to the high-pressure (HP) section at its crossed, so the operation is performed
mand while still decreasing production dewpoint; in this first part of the distilla- without freezing of the mixture. On the
costs. Low-temperature processes are tion unit, the natural-gas feed is separat- other hand, the cooled top product stream
preferred to traditional chemical or phys- ed into two streams: a bottom one with a arrives at 40 bar without crossing the SLV
ical absorption for gas purification when high CO2 content and a top product flow locus during the expansion. The part of
the CO2 concentration in natural-gas rich in CH4. The top product stream from the top product stream that goes to the in-
streams is high. For this reason, attention the HP section is split into two streams: termediate heat exchanger cannot be fed
on low-temperature processes for CO2 the first is heated and expanded to the to the LP section without superheating;
removal has increased in recent years. low-pressure (LP) section; the second one otherwise, the produced stream at 40 bar
In this work, an analysis has been car- is cooled so that after expansion it is at its can form a solid phase in the solid/vapor
ried out to determine the trade-off be- bubblepoint at 40 bar. The superheated region at 40 bar.
tween classical methyldiethanolamine gas stream is fed at the bottom of the LP To avoid the frosting of CO2 at the inlet
(MDEA) gas-sweetening units, still rep- section, while the liquid feed enters the of the LP section, the stream must be
resenting the industry benchmark for column a few theoretical trays above the heated before expansion. For safety rea-
acid- and sour-gas purification, and a bottom of the LP section. In the LP dis- sons, it is suggested to keep the tempera-
low-temperature distillation process. The tillation section, a top product CH4 gas ture of this stream 5 to 6°C over its dew-
MDEA unit typically requires steam at the stream at commercial grade is obtained, point at 40 bar to avoid the formation of
reboiler of the regeneration column, while while the bottom liquid stream rich in a solid phase. In this way, the presence
the low-temperature distillation process- CH4 is pumped back to the HP section of dry ice is avoided in all the parts of the
es consume electric energy to drive the to provide the reflux. The condenser is a process. From the top of the LP section, a
refrigeration cycle. In amine regeneration full-reflux condenser, and the top prod- CH4 stream at commercial specification is
obtained, while the bottom liquid stream
rich in CH4 is pumped back to 50 bar and
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
sent to the top of the HP section, a few the-
of paper SPE 183154, “The Potential of a New Distillation Process for the Upgrading oretical trays over the feed tray. To avoid
of Acid Gas,” by L.A. Pellegrini, G. De Guido, S. Langé, and S. Moioli, Politecnico freezing at the outlet of the LP section, the
de Milano, and B. Picutti, P. Vergani, G. Franzoni, and F. Brignoli, Tecnimont, CO2 content in this stream must be kept at
prepared for the 2016 Abu Dhabi International Petroleum Exhibition and Conference, a maximum of approximately 8 mol%, so
Abu Dhabi, 7–10 November. The paper has not been peer reviewed. that the LP section of the distillation unit

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

74 JPT • APRIL 2017

operates in the liquid/vapor region under
the low-temperature triple point at 40 bar.
Comparison of the
Low-Temperature Distillation
With Amine Scrubbing
When sweetening natural gas by means
of chemical-absorption processes, the
major energy expense is related to heat
requirements for solvent regeneration.
This cost factor is intrinsically related to
the amount of acid components to be re-
moved from the raw gas.
A low-temperature distillation technol-
ogy such as the one presented in this
study does not require the use of an exter-
nal solvent, relying solely on volatility dif-
ferences; this means that energy require-
ment is much less sensitive to the content
of acid components compared with that
of chemical absorption technologies. On
the other hand, the energy required by
this technology is more expensive.
From these considerations, it can be
understood that, in principle, there could
be a break-even-point value for the acid-
gas content in the feed stream, making
one of the two kinds of technology more
profitable than the other in terms of en-
ergy consumption. The low-temperature
distillation unit requires electric energy
to drive the compressors of the refriger-
ation cycle adopted to provide the cool-
ing duty. The chemical absorption unit
consumes low-pressure steam to provide
heat for the solvent-regenerator reboil-
er. Once the energy requirements of the
two sweetening units are determined by
means of process calculations and simula-
tions, it is possible to establish the trade-
off between the two technologies. This
process is detailed in the complete paper.
It is possible to build curves describ-
ing the variations of the break-even point
between the low-temperature distillation
process and the traditional MDEA unit as
a function of the content of acidic com-
pounds in the natural gas and the prices
of gas and electricity. For operating com-
panies, this correlation can provide a
more-straightforward indication on the
profitability of the low-temperature dis-
tillation because, typically, prices of gas
and electricity are known.
The presence of hydrogen sulfide in the
raw-gas feed favors the profitability of the
low-temperature process. Moreover, its ef-
fect on the break-even point is negligible
JPT • APRIL 2017
for a CO2 content greater than 35 mol%.
The effect of hydrogen sulfide on the trade-
off is important at low contents of CO2.
One can preliminarily determine the
profitability of the new low-temperature Make sure there is a
distillation process as a function of the common understanding
acidic gases content in the natural gas
and of the ratio of the price of fuel to the
price of electricity, thus providing a sim- Prepare illustrations
ple tool useful to better select the process using Wellbarrier
technology depending on the geographic Illustration Tool
location of the gas reserves. Generally,
the low-temperature distillation process
can be considered suitable for applica-
tions to the processing of highly acid or
sour natural-gas reserves.
Coupling of the Low-Temperature
Distillation With CO2 Enhanced
Oil Recovery (EOR)
The proposed solution shows a great
potential for applications at the industri-
al level because it allows energy savings
and an effective profitability for highly
sour or CO2-rich natural-gas reserves.
Moreover, because of the operating con-
ditions obtained in the bottom product
(CO2 stream), it can be well-coupled to
CO2 EOR technology, thus meeting envi-
ronmental requirements while enhanc-
ing efficiency in oil production.
Conclusions
The results of this work, developed on
the basis of specific assumptions, con-
firm the economic profitability of the low-
temperature process when applied to the
sweetening of natural-gas streams con-
taining more than approximately 10% of
acid components.
Because of the intrinsic features of the
low-temperature distillation, its CO2 by-
product—liquid and at HP—could be
more conveniently reused for CO2 EOR
than that produced by means of MDEA
sweetening. This use of CO2 could poten-
tially unlock additional gas supplies, cur- Enhance the safety in the wells by
rently being reinjected alongside water to
sustain oil-reservoir productivity, while
also reducing CO2 emissions to the at- Delivering high quality illustrations
mosphere. This competitive advantage 'RFXPHQWLQJTXDOL¿FDWLRQPHWKRGV
over MDEA absorption could, in princi- 'RFXPHQWLQJPRQLWRULQJPHWKRGV
ple, widen the profitability region of the Giving a clear message to all
low-temperature distillation presented in VWDNHKROGHUV
this work when implemented in a CO2
EOR scheme, thus shifting the break-even-
point values down to lower contents of
CO2 and hydrogen sulfide. JPT
www.wellbarrier.com
post@wellbarrier.com
Phone +47 51 63 08 00
 New Steel Plate for
Liquefied-Natural-Gas Storage Tank

F or more than 50 years, 9% Ni

steel with excellent mechanical
properties at a cryogenic temperature of
Inner tank (the new steel)
Insulation
Outer tank roof
Crack arrest
less than –162°C has been used as inner- Outer tank
tank material for liquefied-natural- Defect A
No initiation
gas (LNG) storage tanks. However, a
reduction of the nickel content in steel
can save construction costs of LNG Crack arrest
storage tanks. A new steel plate for LNG
No initiation
storage tanks has been developed by
optimizing chemical composition and Welded
Defect B joint
applying recent thermomechanical-
control-process (TMCP) technology. Base slab

Fig. 1—Prescribed properties of inner-tank material for LNG storage tanks.

Introduction
With demand for LNG rising, construction sistance and brittle-crack-propagation- ing process after rolling. Retained aus-
of above-ground LNG storage tanks is ex- arresting capability. tenite, which improves toughness, is also
pected to increase. 9% Ni steel plate has A TMCP is a production process where- formed by lamellarizing and tempering
excellent strength and cryogenic tough- in the rolling temperature and cooling after direct quenching. The amount of re-
ness. For LNG storage tanks, a double- rate after rolling are controlled. TMCP tained austenite of the new steel is great-
integrity structure has been proposed to technology, which improves strength, er than that of 9% Ni steel.
prevent peremptory destruction (Fig. 1). toughness, and weldability, was devel- Compositionally, the new steel reduc-
Although a high safety standard is de- oped for use in shipbuilding steel or line- es silicon (Si) and adds manganese (Mn),
manded for such steel plates, in terms of pipe steel. TMCP technology has been chromium (Cr), and molybdenum (Mo).
saving construction costs of LNG tanks, applied to plates for offshore structures, By decreasing Si, precipitation of ce-
a reduction in the amount of nickel used high-rise buildings, bridges, and sever- mentite and autotempering during cool-
was desired. The new steel plate, equiv- al other structural applications. Micro- ing at welding are promoted. The tough-
alent to conventional 9% Ni steel, has structures obtained with TCMP technol- ness of the heat-affected zone (HAZ) is
been developed by adopting a TMCP to ogy are finer than those obtained with improved. Furthermore, contents of Mn,
obtain the refined microstructure and a conventional processes. Cr, and Mo are controlled to ensure ap-
large amount of retained austenite. The production process of the new propriate hardenability of the HAZ. Ac-
steel is a combination of controlled roll- cording to research about high-tensile-
Development of New Steel ing, accelerated cooling, and appropriate strength steel, the HAZ microstructure
Concept. In the development of the new heat treatment (intermediate heat treat- should be a mixture of martensite and
steel, key technologies are application of ment, known as lamellarizing). A very lower bainite for improved toughness.
the TMCP and optimization of chemical fine martensitic microstructure is formed The same trend is noticed in the new
compositions. The properties of the base by controlling the previous austenite steel; that is, when hardenability is high,
plate and welded joint of the new steel grain size in the heating process and roll- martensite is formed in the HAZ and
are equivalent to those of 9% Ni steel, ing conditions in the uncrystallized zone autotempering is suppressed. In the
with excellent brittle-crack-initiation re- and quenching in the accelerated cool- case of low hardenability, upper bainite,
which deteriorates the toughness of the
HAZ, is formed.
This article, written by JPT Technology Editor Chris Carpenter, contains highlights of
Owing to the optimization of the pro-
paper SPE 183286, “New Steel Plate for LNG Storage Tank,” by T. Kagaya, H. Furuya, duction process and chemical compo-
T. Kamo, Y. Takahashi, H. Wakamatsu, and T. Nagao, Nippon Steel and Sumitomo sition described here, the new steel for
Metal; H. Nishigami and S. Tomita, Osaka Gas; and S. Hirai and M. Mitsumoto, LNG storage tanks has properties of the
Toyo Kanetsu, prepared for the 2016 Abu Dhabi International Petroleum Exhibition base plate and welded joint equivalent to
and Conference, Abu Dhabi, 7–10 November. The paper has not been peer reviewed. those of 9% Ni steel.

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

76 JPT • APRIL 2017

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Fig. 2—LNG storage tank made of the new steel.
Mechanical Properties of Base Plate
and Welded Joint. To evaluate the fit-
ness of the new steel for the inner mate-
rial of the LNG storage tank, test plates
were manufactured in actual production
equipment, reflecting the findings men-
tioned in the preceding subsection. The
test plate thicknesses are 6, 10, 25, 40,
and 50 mm. Results of the tensile test
and Charpy impact test of base plates
met established standard requirements
for 9% Ni steel. The crack-tip-opening-
displacement values of the new steel are
of a high level and are equivalent to those
of conventional 9% Ni steel.
Large-Scale Fracture Test. To evaluate
the safety of LNG storage tanks, large-
scale fracture tests were conducted.
The resistance to brittle-crack initi-
ation was evaluated with a cross-weld
notchwide plate tensile test simulating
the T-cross welded part of an actual LNG
storage tank. Brittle fracture was not ob-
served in any specimen. All specimens
yielded thoroughly and fractured over
maximum load. The fracture-stress val-
ues of all specimens at −165°C exceeded
750 MPa and were at the same level as
those of 9% Ni steel. It was confirmed
that the resistance to brittle-crack ini-
tiation of the new steel is of a high level
and is equivalent to that of conventional
9% Ni steel.
Brittle-crack-propagation-arresting
properties were evaluated with a duplex
test. It was confirmed that a brittle crack
was immediately arrested after penetrat-
ing the test plate from an embrittled
78
plate under an applied stress of 393 MPa,
which is equivalent to design stress.
It  was confirmed that the new steel
had excellent brittle-crack-propagation-
arresting properties, similar to those of
9% Ni steel.
Approach to Practical Application of
New Steel. Assuming that the new steel
and 9% Ni steel are welded together,
properties of the welded joint of 7% Ni
steel and 9% Ni steel were also evalu-
ated. It was confirmed that the welded-
joint properties of different materials
were equivalent to those of identical ma-
terials. Considering the actual construc-
tion work of a tank, the influence of re-
pair welding on welded-joint toughness
was evaluated and no faulty result was
found. Fatigue properties were also eval-
uated and were found to be equivalent to
those of 9% Ni steel. Furthermore, phys-
ical constants were required. Young’s
modulus, Poisson’s ratio, and thermal-
expansion rate of new steel have been
evaluated and were found to be equiva-
lent to those of 9% Ni steel.
Construction and Operation
of an LNG Storage Tank Made
of New Steel
First Application of New Steel for an
LNG Storage Tank. For the first time,
the new steel with Ni composition of
7.0–7.5% was adopted by Osaka Gas for
application to the above-ground LNG
storage tank in Senboku Terminal 1,
having a capacity of 230 000 m3 and
being the largest of its kind in the world
(Fig.  2). The LNG storage tank has a
diameter of 90 m and a height of 60 m.
Manufacturing of New Steel for
LNG Storage Tank. For the LNG tank
of Senboku Terminal 1, approximate-
ly 3,700 tons of the new steel were re-
quired. Plates having thicknesses of
6.0–45.8  mm were used for the roof,
knuckle, shell, and bottom. Yield
strength and tensile strength were stable
even for a wide thickness range.
Construction of LNG Storage Tank
Made of New Steel. The construction
of the LNG storage tank began in Sep-
tember 2012. Regarding material work-
abilities such as gas cutting, roll bend-
ing, and press bending, the new steel
was equivalent to the conventional 9%
Ni steel plate. No faulty result was found
with respect to the mechanical proper-
ties. With regard to weldability such as
thermal deformation, penetration, and
effect of residual magnetism, the new
steel was equivalent to the conventional
9% Ni steel plate.
Operation of the LNG Storage Tank.
The construction of the tank was com-
pleted in November 2015 as planned. The
operation of the tank, including other
facilities, launched successfully, and has
carried on smoothly.
Mechanical Properties
of the New Steel
For the standardization of the new
steel for LNG storage tanks, appro-
priate ranges of chemical composi-
tion were studied, especially the lower
limit of Ni content of TMCP-type steel
for LNG storage tanks. Safety against
fracture was estimated for both 7.1%
Ni (Heat A) and 6.3% Ni (Heat B). For
both Heat A and Heat B, resistance to
brittle-crack initiation is equivalent to
that of the 9% Ni steel. Both steels show
excellent brittle-crack-propagation-
arresting properties at LNG temperature
(−165°C). From these studies, the new
TMCP steel was judged to have excel-
lent fracture toughness at LNG tempera-
tures within the range of Ni composition
of 6.0–7.5%.
The standardization of the material and
the design of the new steel are discussed
in detail in the complete paper. JPT
JPT • APRIL 2017
TECHNOLOGY FOCUS

High-Pressure/High-Temperature Challenges
Robert Ziegler, SPE, Global Director, Well-Control Technology, Weatherford International

As I begin my term as reviewer for the I look forward to reading scenarios, requiring the appropriate con-
High-Pressure/High-Temperature (HP/ tingencies in well planning, and offers
HT) Challenges feature in JPT, I look for- the best work produced an integrated approach to predict and
ward to reading the best work produced by our skilled and dedicated weather these uncertainties. The sec-
by our skilled and dedicated members ond paper reviews best practices in
and to following in the footsteps of the
members and to following managed-pressure-drilling systems for
late Mike Payne, whose excellent work I in the footsteps of the HP/HT wells, with respect to cost sav-
know our readers and members appre- late Mike Payne, whose ings and increased drilling performance
ciated. In my first feature, I elected to in the current low-oil-price scenario. The
focus on selecting papers that offered a excellent work I know final paper discusses completion with
somewhat different theme than is often our readers and members expandable liner hangers in HP/HT envi-
seen in the majority of papers presented ronments, allowing the essential rota-
at HP/HT conferences. Instead of select- appreciated. tion and reciprocation during cementing
ing papers that were dedicated to mate- while establishing an instantaneous seal
rial selection, I considered works that a variety of locations (Malaysia, Viet- at the liner lap after setting.
concentrated upon best practices and nam, and the UAE) and illustrate meth- I hope that you enjoy these impor-
recently developed technologies that ods of ensuring optimal cost savings and tant papers that reflect our members’
make operations in these difficult envi- enhanced safety in HP/HT projects. innovation, dedication, and technical
ronments more efficient and far safer for The first of these papers focuses on expertise. JPT
crews and for the environment itself. The identification of pore-pressure uncer-
three papers I have chosen draw from tainties especially detrimental in HP/HT
Recommended additional reading
at OnePetro: www.onepetro.org.
Robert Ziegler, SPE, is global director for well-control technol- OTC 26663 Innovative Multitechnologies
ogy at Weatherford International. His career spans 30 years in Collaboration for Ultra-HP/HT Offshore
the industry, mainly with Shell, Chevron, Petronas, and Cairn Fracturing Stimulation by Arya B.
India. Ziegler’s achievements include involvement in the first Christiawan, Schlumberger, et al.
deepwater application of preblowout-preventer riserless mud- IADC/SPE 178857 A Challenging
line pumping and the first application of a commercial deepwa- HP/HT Operation Supported by Dynamic
ter dual-gradient system in the form of post-blowout-preventer Real-Time Simulation, Forecasting, and 3D
controlled mud level. He also has overseen dozens of successful Visualization by Josef Nabavi, eDrilling, et al.
offshore managed-pressure-drilling jobs using rotating control devices for several SPE/IADC 179184 MPD Application for
operators on both jackup rigs and semisubmersible rigs as well as the commercial Ultra-HP/HT Wellbore by Craig Starkey,
use of directional casing drilling offshore, with more than 100 sections drilled. Chevron, et al.

JPT • APRIL 2017 79

 Integrated Approach for Overpressure
Prediction in an HP/HT Well Offshore Malaysia

P ore-pressure prediction plays an

important role in well planning
as exploration targets shift to deeper,
wall block for the shallow (post-carbonate
clastic) reservoirs and crossing the fault
to the hanging wall block to hit the main
ing caused by a narrow mud window,
and several hole-stability issues such as
tight hole, lost circulation, and stuck pipe,
overpressured reservoirs. Pressure- targets in deeper (precarbonate clastic) eventually leading to multiple sidetracks.
related problems in such zones cycles. The lithology for the shallow cy- Apart from the offset-well-drilling
are mainly associated with narrow cles is interbedded fine-grained siliciclas- challenges, several other challenges,
operating windows, resulting in severe tic shale and sand with limestone streaks. such as lack of calibration for deeper un-
well-control incidents, sometimes The deeper cycles consist of predominant- drilled cycles, a well penetrating reser-
even leading to early abandonment. ly sandstones with interbedded shales. voirs in different fault blocks, lithological
Uncertainties in prediction models arise Two offset wells (Offsets 2 and 3) pene- variation across the field, overpressure
from input data, assumptions used in trated a thick carbonate sequence, and the top and magnitude, reservoirs with cen-
the work flow, and the complexity of the other offset well (Offset 1) encountered a troid effect, and the quality of 2D-seismic
geological or structural conditions. It is thick sand/shale sequence with interbed- velocities, were also considered during
important to analyze these uncertainties ded carbonate stringers, which is similar the predrill modeling.
and develop an understanding of them to the prognosed-well result. Therefore,
before drilling. in the predrill modeling, there was only Process
one relevant offset well (Offset 1) available Considering uncertainties from several
Introduction in the study area that penetrated similar sources, several scenarios of predrill pore-
Central Luconia is a geological province of lithostratigraphic units. pressure and fracture-gradient models
the Sarawak Basin characterized by exten- were considered. It was also recommend-
sive development of Miocene to Holocene Well Issues ed to update the predrill model as soon
carbonate buildups. The buildups reveal A detailed analysis of all the drilling prob- as the new data became available during
complex seismic geomorphologies, facies, lems encountered in the offset wells was drilling. This actually helped to reduce the
and structural setting. There have been catalogued. This was achieved by review- uncertainty window during drilling.
several discoveries in the shallow-water ing the daily drilling reports, final well Offset-well pore-pressure analysis was
(approximately 90-m depth) area of cen- reports, and mud-logging reports and carried out using petrophysical logs cali-
tral Luconia province offshore Sarawak. documenting all the events on a daily brated with direct pressure measurements
A predrill pore-pressure- and fracture- basis. Overall, all the offset wells analyzed and reported drilling events. Overburden
gradient-prediction study was initi- during the study indicated several drill- estimation at the offset wells was per-
ated for a planned high-pressure/high- ing issues related to pore pressure, in- formed using the available density logs.
temperature (HP/HT) well with three cluding internal blowout with violent gas A velocity-to-density transform using the
offset wells (Offsets 1, 2, and 3) drilled in flow from the bell nipple, influxes, gas- velocity was carried out in all the offset
the vicinity of the study area. The objec- cut mud, high gases, connection gases, wells, and a calibration was established
tive of the study was to help in well design pumps-off gas, and cavings. In addition, from all the offset wells. This transform
to reach desired deeper target reservoirs. wells showed significant challenging drill- was used to calculate pseudodensities
The prospect is situated in a structure ing conditions such as equivalent static- for the sections where density logs were
characterized by a northwest/southeast and circulating-density contrast because either absent or not reliable. A semi-
normal fault. It was formed on the foot of high temperature, wellbore breath- regional density trend using all offset-well
density logs was also established and used
This article, written by JPT Technology Editor Chris Carpenter, contains highlights of for the shallow section from the mud-
line to the top of the first available actual
paper IPTC 18909, “An Integrated Approach for Overpressure Prediction in a Wildcat
log data. The estimated profiles showed
High-Pressure, High-Temperature (HP/HT) Exploration Well Offshore Sarawak,
a well-constrained overburden across
Malaysia,” by Avirup Chatterjee, Amitava Ghosh, and Sanjeev Bordoloi, Baker the offset wells because there is negligi-
Hughes, and Anifadora Bt. Mustapha, Petronas, prepared for the 2016 International ble difference in water depth. For pore-
Petroleum Technology Conference, Bangkok, Thailand, 14–16 November. The paper pressure estimation, Eaton’s method was
has not been peer reviewed. Copyright 2016 International Petroleum Technology used for resistivity and acoustic, while
Conference. Reproduced by permission. the equivalent-depth method was used

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

80 JPT • APRIL 2017

for density. Similar compaction profiles
were created for all the offset wells. An
in-depth analysis to understand the prev-
alent pore-pressure regimes in terms of
stratigraphical and structural settings
helped to generate different scenarios of
possible shale-pressure evolution as well
as sand/shale pressure relationships that
could be expected with respect to the re-
gional geological understanding. The top
of overpressure is significantly shallow in
the relevant offset (Well 1) as compared
with the other two offsets (Wells 2 and 3),
where the top of the overpressure is much
deeper. The occurrence of overpressure
at shallow depth in Well 1 could possibly
be attributed to a thick dominantly shale/
sand sequence that is replaced by carbon-
ate in the other two offset wells that show
a lesser degree of overpressure. There was
a significant challenge in modeling the top
of the overpressure and its magnitude in
the shallow section at the relevant offset
(Well 1) because of the nonavailability of
any pressure measurements and the poor
quality of log data. This well was drilled in
the 1970s, with very limited information
available. Drilling events were used as a
guide to model pore pressure in the shal-
lower part of the well. The petrophysical
log data appear to be useful for predict-
ing overpressure in shale/claystones but
are of very limited use because of domi-
nantly nonshaly lithology such as sands
and carbonates.
In the next phase, a seismic-velocity-
based analysis was carried out at the rel-
evant offset (Well 1) with the existing
2D-seismic velocities. The key idea of
selecting Well 1 was to understand the
seismic-velocity predictive quality in view
of the depth of the overpressure top and
overpressures in the deeper undrilled sec-
tions possibly encountering similar litho-
facies. A comparative analysis of the ve-
locities showed that the seismic is similar
to acoustic velocities in the shallower sec-
tion. In the deeper section, the seismic
velocity is faster compared with acous-
tic and checkshot velocities acquired in
Well 1. This necessitated using a differ-
ent compaction trend than that from
acoustic velocities, with certain adjust-
ments to match with actual pore pres-
sure for seismic-based predictions. Keep-
ing in mind the results from Well 1, it
was expected that use of existing 2D-
surface-seismic velocity for predrill pre-
JPT • APRIL 2017
diction might provide reasonable results. certainty to seismic-based predictions. To
The data quality was good in the shallow improve on the quality of prediction and
section, where it was characterized by reduce the uncertainty, seismic velocities
a continuous-frequency reflector. In the were extracted from the upthrown and
middle and deeper part, where it was dom- downthrown side of the fault block to de-
inated by lower-frequency discontinuous termine the lateral and vertical variations.
events, the data quality can be classified In addition, very-coarse seismic-velocity
as moderate to challenging to interpret. points were available for analysis, which
The well was expected to cross a fault that was challenging to compare with the high-
would penetrate the shallow and deeper frequency acoustic velocities of the offset
reservoirs across different fault blocks, well. Also, the velocity model was gen-
which added a considerable amount of un- erated with a single time/depth-function
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 8.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 20.00
Mud Weight (lbm/gal)
LOT
MW
Predrill
Measured
Pressures
Post-Drill PP Predrill
High-Case PP
ECD
Predrill Midcase PP
Fig. 1—Comparative analysis of post-drill and predrill analyses. PP=pore
pressure. MW=mud weight. ECD=equivalent circulating density.
method obtained from offset wells. A best- cycles; hence, time-to-depth conversion
fit velocity model was developed on the performed on the basis of the offset-well
basis of these data and used for the depth function carried a considerable uncertain-
conversion to generate a depth-structure ty with depth. On the basis of the seismic-
map and well-depth prognosis. The off- velocity variations around the planned lo-
set wells did not penetrate the deeper cations and offset-well experiences, three
possible pore-pressure scenarios were
predicted for each prospect. The fracture
gradient was estimated on the basis of
the effective-stress-ratio approach by use
of the leakoff-test (LOT) results available
from Well 1. A similar three-case scenario
for fracture pressure was proposed for dif-
ferent cases of pore pressure.
The well was designed to drill to a
depth of 3500 m with an overpressured
Miocene/Oligocene sediment column of
2500 m (water depth of 90 m, maximum
prognosed pressure of 10,000 psi, and
temperature of approximately 190°C). An
integrated approach was adopted through
a robust predrill analysis with real-time
monitoring of the well and updating of the
predrill model wherever required by use of
the new information. On the basis of post-
drill analysis (Fig. 1), the actual pore pres-
sure was within the uncertainty model,
which helped in making decisions on well
design in real time. The predrill model
predicted a manageable mud window,
with a very narrow mud window for deep-
er cycles. The well was terminated within
the last cycle because of the nondrillable
window, which was already prognosed by
the predrill high-case scenario. JPT

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82 JPT • APRIL 2017

Application of MPD Technology
for HP/HT Wells in Vietnam

O ne common issue among

operators in determining whether
to install a managed-pressure-drilling
pivot point set at bit/total depth, and the
loss of annular friction during pump-
off events would be compensated for on
preliminary model was built by using
17.0-lbm/gal mud weight (MW) to com-
mence drilling the section and weighting
(MPD) system for a campaign is the the basis of selection of pressure at this up to 17.3-lbm/gal MW before penetrat-
significant upfront cost. However, point. The flow behavior during MPD- ing into the peak-pore-pressure section,
through detailed cost/benefit analysis CBHP application was simulated to de- which is at balance to equalize anticipat-
and examination of lessons learned, fine the circulating parameters that will ed maximum pore pressure.
it becomes clear that the benefits in be used while drilling. These parameters Within the modeled design parame-
operational safety, drilling optimization, will maintain the dynamic BHP within ters, the ECD was computed at 17.8 to
and nonproductive-time reduction the PP/FP window, which will be evaluat- 18.0 lbm/gal, which is slightly lower than
through the use of MPD significantly ed as the drilling progresses by adjusting minimum estimated fracture pressure. In
outweigh the cost. The complete paper surface backpressure (SBP) through the an HT well at static conditions, the MW
discusses lessons learned and best automated MPD choke manifold. at bottom could be somewhat lower than
practices of MPD technology in relation The hydraulics analysis approaches the nominal MW as a result of thermal
to high-pressure/high-temperature were used to expansion. Temperature has a significant
(HP/HT) wells drilled in Vietnam. ◗ Establish bottomhole equivalent effect on mud-density change as mud
circulating density (ECD) when temperature nears the higher geothermal
Preparation for MPD: Constant- drilling the 12¼-in.-hole section temperature at the static condition. The
Bottomhole-Pressure (CBHP) with planned mud weight at different computation of ESD with SBP as an ad-
Drilling in an HP/HT Environment pump rates and values of rev/min. ditional safety margin to compensate for
HP/HT drilling activities offshore Viet- ◗ Simulate to identify effect of friction loss during the pump-off event
nam commonly experience a narrow thermal expansion and hydrostatic- ranged from 150 to 250 psi.
margin between formation pore pressure column compression of planned
and fracture gradient, in which variation mud rheology used in static MPD Equipment
in bottomhole pressure (BHP) can in- wellbore condition. Requirement and Design
crease the risk of an underbalance dur- ◗ Simulate to determine equivalent for Specific MPD Application
ing static wellbore conditions and lead to static density (ESD) during pump- The main objective of MPD application
a higher chance of fracturing the forma- off event. is to have a closed-loop fluid-circulation
tion in dynamic conditions. Thus, a de- ◗ Maintain an overbalanced BHP system during drilling operations. The
tailed hydraulics analysis was performed during circulation and pump-off well is sealed by using a rotating control
with a proprietary software to simulate event. device (RCD), with return flow from the
several scenarios at the casing shoe, at ◗ Determine annular SBP required for well safely routed to the automated MPD
the peak-pore-pressure point, and at the the planned MPD application. choke manifold through a flowmeter and
target depth of the 12¼-in.-hole section. For Well A, the operating window was back to the shale shakers. This closed
Formation prognosis for Well A defined by the difference between maxi- drilling system allows a significantly in-
showed a converging pore-pressure/ mum pore pressures of 17.3 lbm/gal and creased level of early kick/loss detection
fracture-pressure (PP/FP) window with a minimum expected fracture pressure and BHP control while drilling.
depth; therefore, hydraulic modeling and of 18.1-lbm/gal equivalent mud weight Equipment required for HP/HT MPD
analysis were performed by choosing the throughout the planned section. The includes an RCD to provide a pressure
seal around the drillpipe to allow annu-
lar pressure control, an automated MPD
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
choke manifold, and a number of valves
of paper SPE 180637, “Best Practices and Lessons Learned on the Application of
and hoses of varying sizes for the returns
Managed-Pressure-Drilling Technology for High-Pressure/High-Temperature Wells flow and for injection, bleed-off, and
in Vietnam,” by Bao Ta Quoc, Tan Chai Yong, Harpreet Kaur Dalgit Singh, and equalization lines. These are listed below
Vi Pham Nguyen, Weatherford, prepared for the 2016 SPE Asia Pacific Drilling and are detailed in the complete paper.
Technology Conference and Exhibition, Singapore, 22–24 August. The paper has not ◗ Primary flowline (six)
been peer reviewed. ◗ Cement drill-out line

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

JPT • APRIL 2017 83


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◗ MPD degassing line
◗ MPD injection line
◗ MPD bleed-off line
◗ MPD trip-tank fill-up line
The automated MPD choke manifold
is equipped with two hydraulically actu-
ated power chokes designed for active
pressure control. If at any time there is a
need to repair or service the choke being
used, the flow can be easily diverted to
the second choke, and the operation can
proceed with minimum downtime. The
hydraulically actuated power chokes have
the added functionality of pressure re-
lief to eliminate overpressure in the well.
In cases such as those involving high
flow rate, both chokes can be used at the
same time to minimize surface inher-
ent friction loss. The automated MPD
chokes are hydraulically controlled by a
programmable-logic-controller system,
using real-time control-system software
and flow-rate data to establish a transient
hydraulic model to calculate pressure,
ECD, and temperature profile along the
wellbore, taking into account the tem-
perature and pressure effect on mud rhe-
ology to allow annular pressure control
at a desired programmed set point.
Lessons learned to optimize rig-time
online installation have been captured
related to preassembling wing valves on
the RCD and placing the RCD stack in a
single lift during MPD rig up (Fig. 1). Rig-
time performance has improved by pre-
assembling the stack offline instead of
installing individual wing valves during
online rig up.
HP/HT Drilling With MPD
HP/HT drilling operations offshore Viet-
nam commonly experience a narrow MW
window between formation pore pres-
sure and the fracture gradient. In con-
ventional operations, staying within this
window is difficult because of limited in-
formation on downhole pressure points
and the delayed effect of MW chang-
es. The uncertainties can result in cost-
ly kick/loss cycles and even the loss of a
hole section.
With the MPD system, wellbore-
pressure fluctuations can be identified
quickly in both static and dynamic con-
ditions; in response, annular backpres-
sure can be manipulated precisely to off-
set downhole-pressure variations to stay
within the drilling window. Accurate flow
JPT • APRIL 2017
measurement is critical in such wells to
constantly monitor and identify flow
differences. The measurements provide
real-time monitoring of the drilling win-
dow as downhole hydrostatic pressure
approaches the fracture gradient.
On the basis of the experience derived
from offset wells, for Well A, MPD will es-
sentially allow drilling the 12¼-in.-hole
section by maintaining CBHP through-
out the drilling operation. The loss of
ECD will be compensated by SBP, so drill-
ing can continue while staying within the
PP/FP window at all times.

Pumping Out of Hole vs.

Pulling Out of Hole With SBP
Tripping out of hole rapidly with the Fig. 1—Offline-preassembled RCD stack.
larger-diameter bottomhole assembly
can result in sudden reduction of bot- ping to maintain constant BHP in con- out of the hole and when the bit was half-
tomhole hydrostatic pressure, which can junction with volumetric control to man- way from the bottom of the well. The op-
lead to well-control issues in narrow- age gas migration to surface. erators used the RCD-bearing assembly
margin HP/HT conditions. The degree Installation of the RCD and MPD choke and the MPD choke manifold to strip the
of pressure fluctuation caused by a well manifolds has been identified as a time- drillstring back to the bottom to perform
swab, however, can be mitigated by en- saving technology for operators in Viet- standard well-control procedures. The
gineering procedures and fluid-property nam when mitigating well-control situa- MPD-stripping technique allowed the op-
optimization. Depending on the princi- tions. In two HP/HT wells drilled offshore erators to regain well control, enhanced
ple of MPD application, swabbing can be Vietnam with MPD, influxes were en- operational safety, and allowed signifi-
avoided by pulling out of hole with SBP countered when the bit was completely cant time savings. JPT
instead of pumping out of hole.
On the basis of MPD operational ex-
perience on a semi-submersible tender-
assisted rig for Well A, it took approxi-
mately 20 minutes to complete an MPD
connection by pumping out of hole (with
45 ft/min tripping speed) until the stand The Petrolink Group of Companies provides a comprehensive data solution from
was racked back. On average, 6 minutes acquisition, aggregation and visualization to processing, delivery and analytics.
are spent from strip to rack back a sin-
gle stand.
The consequences of pumping out of
hole can be mitigated with the MPD sys-
tem in place to allow stripping out of hole
with SBP instead of pumping out of hole
to minimize the swab once in the shoe,
providing considerable rig-time savings
on trips.
PetroVault HD
Well-Control Scenario
When Drillstring Is out of Hole
A conventional well-control approach is
to shut in the blowout preventer to circu- Visit us at:
late out influx by using either the driller AAPG ACE · 2-5 April 2017 · Houston, USA · Booth 1607
or the weight-and-wait method. How- SPE OGIC · 4-6 April 2017 · Mumbai, India · Booth 27
ever, these methods can be used only SPE-KSA ATS&E · 25-27 April 2017 · Dammam, Saudi Arabia · Booth 8
when the bit is on the bottom and circu-
lation is possible. When it is unsuitable to www.petrolink.com
use conventional well-control methods,
alternatives are considered such as strip-

JPT • APRIL 2017 85

 First Expandable Liner-Hanger
Installation in UAE in an HP/HT Well

T his paper discusses the

planning and deployment of
an expandable-liner-hanger (ELH)
system in an offshore high-pressure/ Ultimate
high-temperature (HP/HT) well for
the first time in the United Arab Expansion
Emirates (UAE). This paper also window
Plastic region
describes issues faced in terms of liner
Yield
deployment in HP/HT wells in UAE
waters and a reliable solution that
saved time and material costs.

Introduction
The ELH system contains no setting
Stress

mechanism or external components,

such as slips, hydraulic cylinders, or
pistons. The hydraulic-setting mecha-
nism is contained in the setting-tool as-
sembly and is completely retrieved, thus
eliminating a potential leak path in the
flowstream. The liner can be rotated and
reciprocated in the hole or during ce- Strain
menting operations as necessary, which Fig. 1—Stress curve.
is not possible for conventional hangers.
Furthermore, the selected ELH is manu- ry and secondary releasing system for the hanger is expanded, the rig will con-
factured from a material meeting criti- maximum reliability. duct an overpull test to verify that the
cal specifications for maximum expand- The ELH design upon which the large- hanger is holding load before detaching
ability and performance. This design bore hanger was based consists of a the running tool from the hanger. The
incorporates several bonded elastomer- hanger assembly and a service tool used running tool is released from the hanger
ic sections for HT and performance re- to deploy and set the hanger. Methods of by downward movement that, after ex-
quirements. The elastomers supply both isolating the liner to pressure up and ex- pansion has occurred, allows a collet as-
the sealing and the hanging capacity pand the hanger involve either a ball or a sembly to release the service tool from
for the hanger. The differential-pressure flapper system. Upon completion of the the setting sleeve at the bottom of the
ratings across the packer elements are downward stroke, the cone will hit a by- hanger assembly.
related to the actual size of the tool and pass sleeve, allowing the fluid behind the The setting tool was strategically de-
the casing through which they are being cone to travel up the center of the ser- signed with modular features that, when
set. The hanger expansion (setting) is vice tool and vent to the annulus above reconfigured, could accommodate differ-
accomplished with a hydraulically actu- the hanger. The corresponding pressure ent system sizes.
ated liner-running/setting-tool assem- drop observed on the rig floor is an indi-
bly. That assembly features a prima- cation that expansion is complete. Once Expansion Process
The expansion process of the ELH sys-
tem is hydraulically actuated. As pres-
This article, written by JPT Technology Editor Chris Carpenter, contains highlights of
sure is applied, a cone is forced through
paper SPE 183489, “First Expandable-Liner-Hanger Installation in the United Arab the hanger, expanding the steel section
Emirates in an HP/HT Well,” by Eric Ragsdale, Zeid Mohamed, and Rami Samir and bonded elastomers into the par-
ElSin, Halliburton, and J.C. Monneyron and Christophe Roy, Total, prepared for ent casing. The expansion process oc-
the 2016 Abu Dhabi International Petroleum Exhibition and Conference, Abu Dhabi, curs in the expansion window shown
7–10 November. The paper has not been peer reviewed. in Fig. 1.

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

86 JPT • APRIL 2017

 The expansion body is expanded in
what is called a cold-working process.
As the cone moves through the expan-
sion body, the elastomeric bands are
compressed into the parent casing,
forming the seal and providing anchor
capability. This stress is shown with red
in the stress diagram (Fig. 1).
Well Information
The well was drilled offshore Abu Dhabi
with a jackup rig with a plan to fracture
and test HP/HT pre-Khuff formations,
and then produce from the Khuff for-
mation. Selection of casing and well-
head equipment entailed risk, and use
of the 16×20-in. large-bore ELH helped
reduce risks and saved both time and
the requirement for extending casing
to surface.
The 16-in. liner was originally planned
to be set at a shoe depth of 2493 m. Be-
cause of challenges with the borehole
while drilling, and while running the
liner, the final configuration had the
shoe set at a depth of 2215.7 m. The top-
of-liner (TOL) hanger was at a depth of
827.3 m for a liner length of 1388.4 m,
providing a liner lap of 346 m.
A water-based mud (WBM) at 1.22 spe-
cific gravity (SG) was used in the well.
Execution
Preceding the operation, a full critical
well review was performed by the tech-
nicians in country with the operator’s
global ELH team. It was agreed that
more-robust drillpipe was necessary to
execute the planned operation success-
fully. The operator made arrangements
to rent additional 5½-in. heavyweight
drillpipe (HWDP) from a local supplier.
Well preparations, before running the
16×20-in. ELH system to depth, includ-
ed several 17½×20-in. underreamer
trips to help ensure adequate hole size.
During the final trip, an underreamer
arm was lost in the well. Because it was
irretrievable, the arm was pushed down-
hole with a slick 17½-in. reamer bottom-
hole assembly. The resultant borehole
had been enlarged to 20 in. to a depth of
2342 m, with only the original 17½-in.
pilot hole below that, to a section total
depth of 2495 m. The final reaming trip
in the 17½-in. hole was able to achieve a
maximum depth of only 2377 m. A wiper
trip was then performed before the liner
JPT • APRIL 2017
College of Engineering
Head, Department of Petroleum Engineering
The Harold Vance Department of Petroleum Engineering at Texas A&M University invites
applications for the position of department head. The department head reports directly to
the dean of the College of Engineering and holds an appointment as a tenured professor
and the endowed Stephen A. Holditch ‘69 Department Head Chair. Candidates should be
able to articulate and communicate a clear vision for the future of petroleum engineering
education and research requirements at large public universities to a constituency that
includes academia, government, industry, alumni, and students. This position requires strong
leadership capabilities and it is expected that the successful candidate will lead the faculty and
its programs to a higher level of excellence.
The Harold Vance Department of Petroleum Engineering at Texas A&M University’s College
of Engineering has consistently been ranked among the top departments in the United States
at both undergraduate and graduate levels as noted by the Gourman Report, the National
Research Council and U.S. News and World Report. The outstanding faculty are globally
recognized for the quality of their research and teaching, and their leadership in the profession.
The department has well-established laboratories, consortia and research programs in the
areas of deepwater drilling, nano-technology, oilfield chemistry, multi-phase flow, high-
resolution imaging, gas hydrates, enhanced oil recovery, reservoir simulation, and integrated
reservoir characterization. The department houses the Crisman Institute for Petroleum Research,
which collaborates with the Berg-Hughes Center for Petroleum and Sedimentary Systems in
the Department of Geology & Geophysics. The department has 27 tenured and tenure-track
faculty members and 14 academic professional faculty. The current student enrollment is 626
undergraduate students and 399 graduate students. This is the largest graduate petroleum
engineering program in the U.S. Applicants should consult the department’s website to review
its academic and research programs (http://engineering.tamu.edu/petroleum).
Texas A&M is located in the twin cities of Bryan and College Station, with a population of more
than 175,000, and is conveniently located in a triangle formed by Dallas, Houston and Austin.
Texas A&M has more than 55,000 graduate and undergraduate students enrolled. Research
expenditures at Texas A&M total more than $820 million annually, ranking in the top tier of
universities nationwide. With an endowment valued at more than $5 billion, the university ranks
fourth among U.S. public universities and 10th overall. Texas A&M is aware that attracting and
retaining exceptional faculty often depends on meeting the needs of two careers and having
policies that contribute to work-life balance. For more information visit http://dof.tamu.edu/
Faculty-Resources/CURRENT-FACULTY/Faculty-Work-Life. With over 400 tenured/tenure-track
faculty members and more than 13,900 students, the College of Engineering is one of the
largest engineering schools in the country. The college is ranked seventh in graduate studies
and eighth in undergraduate programs among public institutions by U.S. News & World Report,
with seven of the college’s 13 departments ranked in the Top 10. The Look College is also
ranked 10th in the Academic Ranking of World Universities compiled by Shanghai Jiao Tong
University. The American Society for Engineering Education ranks the College of Engineering
second in research expenditures.
Applicants must have an earned doctorate in petroleum engineering or a closely related
engineering or science discipline and have a proven record of scholarly achievement and
administrative leadership in academia, industry or government. The position requires
dedication to excellence in undergraduate and graduate education and commitment to the
diversity of faculty and students.
Applicants should submit a cover letter, curriculum vitae, and a list of 5 references (including
postal addresses, phone numbers and email addresses) by applying for this specific
position at www.tamengineeringjobs.com. Applicants should also submit a two-page
statement summarizing his/her personal vision and goals for the Department of Petroleum
Engineering’s education and research, as well as his/her philosophy of academic leadership
for achieving those goals. The search committee will begin reviewing application upon
arrival. Full consideration will be given to applications received by May 1, 2017. Applications
received after that date may be considered until the position is filled. It is anticipated that the
appointment will begin September 1, 2017.
Communications should be addressed to the chair of the Petroleum Engineering Head
Search Committee, Dr. Reza Langari, J. R. Thompson Department Head Chair, Engineering
Technology and Industrial Distribution, Texas A&M University, TAMU 3367, College Station, TX,
77843-3367; rlangari@tamu.edu.
The members of Texas A&M Engineering are all Equal Opportunity/Affirmative Action/Veterans/Disability employers
committed to diversity. It is the policy of these members to recruit, hire, train and promote without regard to race, color,
sex, religion, national origin, age, disability, genetic information, veteran status, sexual orientation or gender identity.

LACPEC 2017
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Chevron
run, during which a 1.9-SG slug/pill was
pumped to fall into the 17½-in. rathole.
The float equipment was broken out
at the rig floor to apply thread-locking
compound to the threads. As the shoe
track was assembled and run in hole
(RIH), it was tested to help ensure that
the floats were holding. The 16-in. liner
was picked up and RIH per the estab-
lished procedures. Because the liner
connections were hanging up at a shoul-
der in the wellhead, a centralizer was
placed on every joint under the connec-
tor collar to assist with the RIH process.
The fully assembled liner hanger was
then picked up and made up to the liner.
There were three types of 5½-in.
HWDP used in the string. First, above the
hanger, was the rig’s standard HWDP;
second was a rented spiral, which was
discontinued after eight joints because
of concerns regarding well control and
the inability to place the slips proper-
ly; third was a rental standard drillpipe
to surface. The final joint of the rental
standard drillpipe came apart at the box
end, so it was laid out. At this point, the
liner could not be moved further; the de-
cision was made to cement and set the
liner at that depth.
The well was circulated with 1.22-SG
mud at 1.6 bbl/min and 290 psi for
8 hours through the topdrive.
The cement head and cement lines
were rigged up and continued to circu-
late mud for another 5 hours. Cement
lines were tested to 300 and 7,500 psi.
The rig then pumped 220 bbl of 1.22-SG
mud at 9.3 bbl/min and 498 psi followed
by 233 bbl of 1.35-SG spacer at 9 bbl/min
and 480 psi.
The bottom foam dart was dropped,
and then the cement unit pumped
604 bbl of 1.6-SG lead cement at 5 bbl/min
and 246 psi. The rate was slowed to
4 bbl/min when the bottom foam dart
sheared the bottom plug with 1,600 psi
after a further 32 bbl. The 1.9-SG tail
cement slurry of 202 bbl was pumped
at 4  bbl/min and 305 psi, followed by
dropping the top foam dart with a good
flag indication.
Displacement was commenced with a
total of 36.5 bbl of 1.35-SG spacer being
pumped at 5 bbl/min and 160 psi, re-
ducing to 4 bbl/min when the top plug
sheared at 31.5 bbl with 1,300  psi. Fol-
lowing this, the pumping was passed
over to the rig pumps, and displace-
ment continued with 1.22-SG WBM being
pumped at an average of 9.5 bbl/min.
The bottom plug was landed and by-
passed after 33.5 bbl. Displacement con-
tinued, slowing down to 4 bbl/min be-
fore the calculated bottom plug landing.
There was a clear indication of the bottom
plug landing and shearing at 1,031  psi.
The rig resumed pumping displacement
1.22-SG WBM at 10 bbl/min, slowing to
6 bbl/min before a calculated top plug
bump. During the course of pumping,
pressure increased from 154 psi to a peak
of 899 psi, as the cement was being dis-
placed into the annulus. At 1,869.5 bbl
of total displacement (spacer and WBM),
the top plug was bumped. Pressure was
increased to 1,300 psi and was held for
approximately 10 minutes. Pressure was
then bled off, and floats were then con-
firmed to be holding.
The 3-in. setting ball was dropped and
allowed to gravitate for 54 minutes to
reach the ball seat in the running tool.
The cement unit was lined up to expand
the liner hanger by use of 1.22-SG WBM.
With the liner hanger in tension, pres-
sure was then applied at 1 bbl/min to ex-
pand the hanger. The observed setting
pressures reached 4,180 psi at 1.0 bbl
and then 4,048 psi at 1.15 bbl, followed
by 3,990 psi at 1.52 bbl. Three distinct
pressure peaks were observed for the
three elastomer sections that were ex-
panded. Pressure then dropped off as
the bypass sleeve shifted, indicating full
cone travel and that complete expansion
had been achieved.
Circulation was commenced above
TOL with WBM at 15 bbl/min and
885  psi.  No cement or spacer was
circulated back to surface.
Following sufficient time for cement
to set and cure, positive pressure
tests of 300 psi for 5 minutes and
1,500  psi were completed successfully
on   the liner, liner lap, and shoe track.
Upon re-entry into the well, the rig
drilled the darts, plugs, and land-
ing collar, and then drilled into
hard cement. JPT
JPT • APRIL 2017
TECHNOLOGY FOCUS

History Matching and Forecasting

Alexandre Emerick, SPE, Reservoir Engineer, Petrobras Research Center

The initial work on computer techniques Regardless of the ognition that it can be formulated as a
for assisted history matching date back Bayesian inference problem. Bayes’ rule
to the 1960s. However, it was a long jour- specific method of your provides an elegant framework to for-
ney between the development of early choice, I believe the main malize the process of learning from data
methods and operational use. Initial- to update our beliefs. The beauty is in
ly, these methods were referred to as
development in history the fact that Bayes’ rule gave to history
“automatic history matching,” giving the matching is the recognition matching the correct meaning. History
wrong impression that it was something that it can be formulated matching is no longer a searching pro-
we could delegate to a computer. Fortu- cess to find the best model. Instead, his-
nately, industry and academia soon real- as a Bayesian inference tory matching is a process of mitigating
ized that “assisted” was a more accurate problem. uncertainty in light of new information.
term than “automatic.” The papers summarized in this fea-
Nowadays, there is an impressive ture and the ones indicated in the
amount of literature and a large number optimization, evolutionary algorithms, additional-reading list are excel-
of assisted-history-matching methods. design of experiments, proxy modeling, lent examples of recent developments
The diversity is so vast that it is challeng- streamline simulation, and Kalman fil- and applications of assisted-history-
ing to divide these methods into catego- ters. This is just to mention a few, and the matching techniques. All are aligned
ries. For example, there are several fla- list is still growing. with the modern Bayesian interpretation.
vors of methods based on sensitivity and Regardless of the specific method of I hope you enjoy the reading. JPT
gradient-optimization algorithms. There your choice, I believe the main devel-
are also methods grounded on stochastic opment in history matching is the rec-
Recommended additional reading
at OnePetro: www.onepetro.org.
Alexandre Emerick, SPE, is a reservoir engineer at Petrobras
Research Center (CENPES) in Rio de Janeiro. He has 14 years of SPE 179549 Streamline-Based Rapid
experience in applied research in reservoir engineering. Emerick’s History Matching of Bottomhole Pressure
and Three-Phase Production Data by
research interests include reservoir simulation, history matching,
Dongjae Kam, Texas A&M University, et al.
uncertainty quantification, and optimization. At Petrobras, he
has worked as principal researcher and coordinator of projects SPE 182684 Generation of a Proposal
on time-lapse seismic, smart fields, optimal well placement, his- Distribution for Efficient MCMC
Characterization of Uncertainty in Reservoir
tory matching, and closed-loop reservoir management. Emerick
Description and Forecasting by Xin Li, The
holds BS and MS degrees in civil engineering from the University of Brasilia, Brazil, University of Tulsa, et al.
and a PhD degree in petroleum engineering from The University of Tulsa. He is the
author/coauthor of 26 technical papers, most about history matching. Emerick SPE 182693 A Robust Iterative Ensemble-
received the Outstanding Service award as an SPE Journal technical editor in 2013 Smoother Method for Efficient History
Matching and Uncertainty Quantification
and 2014. He is a member of the JPT Editorial Committee and can be reached at by Xiang Ma, ExxonMobil, et al.
emerick@petrobras.com.br.

JPT • APRIL 2017 89

 Uncertainty Quantification
for History-Matching Problems

I t is critically important for decision

making and an extremely challenging
task to quantify the uncertainty of
Because of limited access to the sub-
surface reservoir (e.g., it is impossible
to measure the permeability and poros-
matrix, is used as a local approxima-
tion of the posterior inverse covariance
matrix. The posterior joint probability-
model parameters and production ity at the location of each gridblock of distribution function (PDF) can then be
forecasts properly after conditioning a simulation model), reservoir proper- approximated as a weighted linear super-
to production data. This paper ties have quite large uncertainties. In a position of multiple local Gaussian distri-
presents a novel approach to generate greenfield, before starting production, butions, which can be sampled very effi-
approximate conditional realizations available data are limited to static data or ciently without having to resort to costly
using the distributed Gauss-Newton hard data such as core data, well-log data, MCMC methods.
(DGN) method together with a well-testing data, and sometimes seismic The proposed approach is first vali-
multiple local Gaussian approximation data. Hence, it is necessary to generate dated by means of a nonlinear history-
technique. Results are compared with multiple realizations of structural and matching toy problem with multiple
those obtained from other approaches, petrophysical models with limited infor- modes. In terms of efficiency, the new
such as randomized maximum mation, on the basis of prior estimates of approach can reduce the computational
likelihood (RML), ensemble Kalman the relative probability of each realiza- cost significantly and accelerate the un-
filter (EnKF), and Markov-chain Monte tion. Then, uncertainty in reservoir per- certainty-quantification process, when
Carlo (MCMC). formance or production forecasting can compared with the traditional RML
be quantified (e.g., with design of experi- method or traditional MCMC approach.
Introduction ment or with other techniques). In terms of accuracy, uncertainty char-
It is well-known that oil- and gasfield Generally, production profiles gen- acteristics obtained from the proposed
development is a high-risk venture. Un- erated by running reservoir-simulation approach are comparable with those
certainties originating from geological models with these prior realizations or generated from the MCMC simulation
models (e.g., structure, stratigraphy, unconditional realizations do not honor and they are much better than those ob-
channels, and geobodies) are coupled production data. Uncertain model pa- tained from EnKF or RML. The approach
with uncertainties of reservoir models rameters, such as permeability and po- is then also applied to a real-field history-
(e.g., distribution of permeability and rosity, potentially in each gridblock, have matching problem, where the dynamic
porosity in the reservoir) and uncer- to be tuned so that the modified reser- system of multiphase flow in the reser-
tainties of economic parameters (e.g., voir models are able to generate produc- voir exhibits very strong nonlinear be-
oil and gas prices and costs associated tion profiles that are compatible with havior and the objective function has
with drilling and other operations). It production data (e.g., by use of assisted multiple local minima. Uncertainty rang-
is critically important to properly quan- history matching). es of production forecasts for the real-
tify the uncertainty of such parameters The DGN method is developed to field case are quantified by generating an
and their effect on production forecasts find multiple local minima of the ob- ensemble of conditional realizations. The
and economic evaluations. Recently, jective function in parallel by collect- production forecasts for all conditional
multiobjective-optimization techniques ing and sharing information from dis- realizations are consistent with the pro-
have been developed to maximize ex- persed regions in the parameter space duction data observed after the history-
pectations of some economic indicators dynamically. Around each local mini- matching period, which further validates
(e.g., net present value) and, at the same mum, the estimated Hessian obtained the applicability of the proposed method
time, to minimize associated uncertain- from the Gauss-Newton approximation, to real-field problems.
ty or risk. along with the prior inverse covariance Its high efficiency makes the new ap-
proach practical for large-scale problems,
for which methods based on design-of-
This article, written by Special Publications Editor Adam Wilson, contains highlights
experiment techniques break down.
of paper SPE 181611, “Uncertainty Quantification for History-Matching Problems With
Multiple Best Matches Using a Distributed Gauss-Newton Method,” by Guohua Gao, Review
SPE, Jeroen C. Vink, SPE, Chaohui Chen, SPE, Mohammadali Tarrahi, SPE, and Over the years, many different assisted-
Yaakoub El Khamra, Shell, prepared for the 2016 SPE Annual Technical Conference history-matching and uncertainty-
and Exhibition, Dubai, 26–28 September. The paper has not been peer reviewed. quantification approaches have been

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

90 JPT • APRIL 2017

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 developed. These approaches can be di-
vided roughly into the following three
categories: (1) traditional history match-
ing with or without linearization about
the maximum a posteriori (LMAP) esti-
mate or with the RML; (2) MCMC; and
(3) EnKF-based approaches.
Traditional history-matching ap-
proaches apply different optimization
algorithms to minimize the objective
function of data mismatch by tuning un-
certain reservoir properties. In order to
assess model uncertainty with these tra-
ditional history-matching methods, two
approaches have been proposed. One ap-
proach is to find the maximum a posteri-
ori (MAP) estimate first and then gener-
ate approximate conditional realizations
using linearization about the MAP esti-
mate (or LMAP). The advantage of the
LMAP approach is that only one mini-
mization (or history match) is required.
Simple linearization around an MAP esti-
mate may generate realizations that have
large data-mismatch values.
An alternative method to gener-
ate conditional realizations is the RML
method. The RML method is able to gen-
erate reasonably good conditional real-
izations when compared with results of
MCMC. The quasi-Newton optimization
algorithm together with adjoint gradi-
ents has been shown to be a quite effi-
cient and robust method for large-scale
history-matching problems and for un-
certainty quantification using the RML
method. Unfortunately, most commer-
cial reservoir simulators do not have
the option to compute adjoint gradi-
ents, which may restrict the applica-
tion of similar history-matching and
uncertainty-quantification procedures
to large-scale problems. Even worse,
for geologically complex reservoirs with
multiple facies, the derivative of the ob-
jective function with respect to the fa-
cies indicator in each gridblock does not
exist by definition and cannot be com-
puted by the adjoint method.
MCMC methods aim at sampling from
a PDF by constructing a Markov chain,
the states of which are guaranteed to
be samples of the given PDF asymp-
totically. However, it may require mil-
lions of steps to converge to the cor-
rect distribution, even for a problem
with only a small number of uncertain
parameters (40 or so). Because each
92
MCMC step requires running a reser-
voir simulation, it is prohibitively expen-
sive computationally when MCMC is ap-
plied to real history-matching problems.
Aiming at improving the efficiency of
MCMC, different approaches have been
developed to improve history-matching
results and achieve better uncertain-
ty characterization.
The EnKF, derived from the well-
known Kalman filter, which yields op-
timal results for systems with a (near)
linear data response, is a widely estab-
lished data-assimilation method for in-
verse modeling in dynamical systems.
The EnKF has shown promise as a state-
and parameter-estimation method in a
wide range of applications in reservoir
characterization and uncertainty quan-
tification. Because the EnKF method de-
pends on the first- and second-order mo-
ments for its update equation, it may
introduce spurious and erroneous corre-
lations to the estimation process and lead
to filter inbreeding, ensemble-spread un-
derestimation, and eventually ensemble
collapse. Alternative implementations of
the filter have been proposed to address
some of the deficiencies resulting from
sampling errors and the nonlinear and
non-Gaussian nature of realistic prob-
lems (e.g., covariance localization, itera-
tive EnKF, and ensemble smoother).
Even though each of these approaches
has shown merit, none has emerged as
the industry’s preferred method. Hence,
it is still an extremely challenging task to
quantify uncertainties of reservoir prop-
erties properly and to quantify uncer-
tainty of production forecasts by condi-
tioning to production data, especially for
geologically complex reservoirs such as
channelized reservoirs.
This paper presents an improved ver-
sion of the LMAP approach that uses
a superposition of Gaussian functions
to approximate a (multimodal) poste-
rior uncertainty distribution. The re-
cently developed DGN algorithm is used
to find multiple MAP points efficiently,
which are then used to anchor the Gauss-
ian components used to approximate the
posterior distribution.
Conclusions
On the basis of theoretical formulation
and numerical tests, the following con-
clusions can be drawn:
◗ Not only can multiple local MAPs
be obtained in parallel by the
DGN method, but the Hessian of
the objective function also can
be estimated at each local MAP
after history matching. They are
used as the center and the inverse
covariance matrix for a Gaussian
PDF that approximates the posterior
in the region near each MAP
point. The full posterior is then
approximated as a superposition
of these Gaussian components.
Optionally, the overlap between
the Gaussian components can be
removed, which may improve the
approximation further and can be
used to assess the quality of the
approximation.
◗ Weighting factors for each local
Gaussian PDF can be obtained
directly from the local Gaussian
approximation at each MAP point.
Alternatively, additional calibration
points in the region near each MAP
point can be used, and the weighting
factors can be found by minimizing
the distance between the Gaussian
superposition and these calibration
points.
◗ The proposed approach has been
validated by a nonlinear toy
problem, which showed that, at
least for multimodel posterior
distributions with widely separated
MAP points, a high-accuracy
approximation can be achieved.
◗ The proposed method is quite
efficient when compared with
MCMC, RML, and ensemble-based
approaches, and its accuracy is
better than RML or ensemble-based
approaches.
◗ Once multiple local MAPs are
identified using the DGN method,
it is possible to generate thousands
of approximate conditional
realizations very efficiently without
having to resort to costly MCMC
methods. This holds for the multi-
Gaussian approximation with and
without overlap removal.
◗ Results of the real-field case with
synthetic data also validate that
the production forecast generated
from the approximate conditional
realizations matches the observed
data reasonably well. JPT
JPT • APRIL 2017
Field-Scale Assisted History Matching Using
a Systematic Ensemble Kalman Smoother

T his work presents a systematic

and rigorous approach of
reservoir decomposition combined
with the ensemble Kalman smoother
to overcome the complexity and
computational burden associated
with history matching field-scale
reservoirs in the Middle East. The
paper provides the formulation of
the iterative regularizing ensemble
Kalman smoother, introduces the
use of streamline maps to facilitate
domain decomposition, and presents a Fig. 1—A streamline map for domain decomposition. The thick blue lines
discussion on covariance localization. indicate the boundaries of the two domains, and the areas between the two
Computational-efficiency problems boundary lines are the overlapping regions for these domains. The color of the
streamlines indicates the time of flight.
are addressed by three levels
of parallelization.
Carlo version of the classic Kalman fil- ison of the performance of the EnKF and
Introduction ter in the sense that it uses an ensemble ES methods has revealed that the EnKF
History matching, in which uncertain of samples to represent necessary statis- normally outperforms the ES method.
parameters are chosen so the reservoir tics, such as covariance of model param- This is because the ES method purely de-
model can reproduce the historical field eters and the correlations between model pends on the prior ensemble and avail-
performance, plays a key role in field de- parameters and observations. An impor- able data. For highly nonlinear dynamic
velopment. Several techniques have been tant feature of the EnKF method is that systems, it is not sufficient to achieve de-
developed in the past decades to address it sequentially assimilates observations sirable performance by only one update.
the history-matching problem. It is wide- when available to update the realizations Also, by assimilating all observations at
ly acknowledged that a single determin- in the ensemble, which includes the un- once, the ES is prone to overshooting
istic reservoir model is not sufficient to certain model parameters and primary and divergence. An iterative ES was de-
represent a reservoir’s complex charac- model state variables. Hence, the EnKF is veloped on the basis of the Levenberg-
teristics along with its uncertainty. The suitable for real-time data assimilation to Marquardt method of regularizing the
underlying reason is that history match- update the ensemble continuously when update direction and choosing the step
ing is an ill-posed inverse problem with new data are available. length. This method normally requires a
nonunique solutions that can match the The joint update of the model param- significant number of iterations to con-
historical data. eters and state variables, however, can verge and, thus, becomes computation-
To overcome the nonuniqueness prob- result in physically implausible dynam- ally prohibitive for large-scale models.
lem in the history-matching process, the ic states. Alternatively, the ensemble- An approach was later proposed to im-
ensemble Kalman filter (EnKF) has been smoother (ES) method updates only the prove the performance of the ES by as-
introduced to the petroleum industry model parameters with all observations similating the same data sets multiple
with many successful applications. The simultaneously and thus avoids inconsis- times. In this iterative ES procedure, the
EnKF can be characterized as a Monte tent dynamic-state updates. The compar- measurement-error covariance matrix is
inflated to obtain suitable updates for
each iteration.
This article, written by Special Publications Editor Adam Wilson, contains highlights
To improve the computational effi-
of paper SPE 182617, “Field-Scale Assisted History Matching Using a Systematic, ciency of the ES further, this work pro-
Massively Parallel Ensemble-Kalman-Smoother Procedure,” by Binghuai Lin, Paul poses domain decomposition of the orig-
I. Crumpton, SPE, and Ali H. Dogru, SPE, Saudi Aramco, prepared for the 2017 SPE inal large-scale model into a series of
Reservoir Simulation Conference, Montgomery, Texas, USA, 20–22 February. The smaller sectors. The ES is applied to each
paper has not been peer reviewed. sector to update local uncertain param-

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

JPT • APRIL 2017 93

 eters. The advantages of this approach
include reducing the computational
cost of the history-matching procedure
and concentrating on areas of inter-
est. To extract the sectors for the origi-
nal model, streamline maps are used to
reveal flow paths and associated grid-
blocks. With the streamlines to identify
instantaneous flow directions and drain-
age regions of the wells, history match-
ing then can be applied to regions of in-
terest. In this work, streamline maps are
used to facilitate the delineation of sec-
tors such that communication between
sectors is minimized. To reduce the in-
fluence of adjacent sectors further, co-
variance localization is applied to the
ES procedure.
The computational efficiency of the
proposed work flow can be improved
further by parallelization. Paralleliza-
tion has been used to reduce the com-
putational cost of the analysis step of the
ensemble-based methods because the
forecasts of all ensemble members are
completely independent.
Domain Decomposition
of the Full Field Into Sectors
For many large oil and gas reservoirs in
the Middle East with vast amounts of
seismic, geological, and dynamic reser-
voir data, a high-resolution discretiza-
tion can produce a reservoir model with
tens or hundreds of millions of cells, po-
tentially prohibiting implementation of
the ensemble-based method for full-field
history matching. From a practical point
of view, it is quite likely that only particu-
lar areas of the field show high uncertain-
ty. Extracting these areas of interest for
further investigation can save resources,
and applying the ensemble-based meth-
ods to history match these smaller areas,
referred to as sectors here, becomes pos-
sible. Using sectors for areas of interest
can also facilitate the ensemble-based
history matching.
To implement the sector concept, the
reservoir simulator should have the func-
tionality to extract sector models easily
from the full model and provide appro-
priate sector boundary conditions from
the full model.
To construct a systematic method of
domain decomposition, streamline maps
94
are used to reveal flow paths and drain-
age regions of the wells. Fig. 1 illustrates
the flow paths and drainage regions as-
sociated with particular wells. To match
data for a particular well, the cells along
the flow paths pertaining to the well or
within the drainage regions should be
considered as highly relevant. Also, for
regions with sparsely distributed stream-
lines, it is reasonable to consider the
communication in this area as weak.
Hence, the fundamental principle for de-
lineation of the sectors is to place bound-
aries in regions with sparse streamlines
or far away from well drainage regions,
as shown in Fig. 1.
In this work flow, the whole field even-
tually will be decomposed into several
individual sectors with boundary infor-
mation provided by a full-field simula-
tion. Then, the ES will be applied to each
sector to update local parameters on the
basis of local observations. The last step
is to assemble all updated parameters
from each sector to generate a complete
parameter set for the full-field model. To
improve the performance of this meth-
od, after updating one or more sectors,
the boundary conditions for other sec-
tors can be updated by rerunning the
full-field simulation while incorporating
the updated sectors. This will, however,
sacrifice the computational efficiency of
the work flow.
Localization for the
Ensemble Kalman Smoother
By careful placement of the boundaries
during the decomposition procedure, the
communication between different sec-
tors can be minimized, but it is still inevi-
table. Specifically, updates of the physi-
cal properties near the boundaries of the
sectors can be inappropriate because of
neglect of the influence of adjacent sec-
tors. To minimize this boundary effect,
one possible solution is to allow overlap-
ping cells for two adjacent sectors (see
Fig. 1). These overlapping areas will pro-
vide additional pressure support as well
as flux input to the sectors. The dynamic
of the sector then can be altered to match
the data by updating the inner parts of
the sector parameters that contain the
most sensible information for the sector
systems. The updating of the overlapping
parts of the sectors, however, needs to
be evaluated carefully to avoid conflicts
from different sectors.
Parallel Implementation
of the Work Flow
The application of the proposed work
flow to a large-scale field model is com-
putationally expensive because it re-
quires history matching multiple sectors;
each sector has intensive forecast simu-
lations for the whole ensemble, and each
forecast simulation requires a significant
amount of computational resources be-
cause of the grid resolution and model
complexity of the sectors. Fortunately,
all these levels of computation can be
parallelized to improve the efficiency of
the work flow. If possible feedback from
the sector to the full model is ignored,
the history-matching process for each
sector is performed independently and,
thus, can be the first level of the parallel-
ization. Each sector can have hundreds
of ensemble members, and the forecast
simulations of these members are com-
pletely independent. Parallelizing these
forecast simulations is the second level of
the parallelization framework. Exploit-
ing a supercomputer with a significant
number of processors can dramatically
reduce the turnaround cost and make the
application to large-scale real-field mod-
els feasible.
Conclusions
This work presented a parallel system-
atic work flow to overcome the compu-
tational obstacles in history matching
large-scale fields. This work flow starts
with investigating the reservoir commu-
nications and connectivity using stream-
line maps. The whole reservoir then is
decomposed into several overlapping
sectors, with communication across the
boundaries minimized. Next, an effi-
cient parallel ES is applied to the sectors
to update local uncertain parameters. A
full-field model then is generated by as-
sembling sector parameters to validate
the performance. For areas with unsat-
isfying matches, the associated sector
model can be updated again efficient-
ly. A field case in this work has demon-
strated the efficiency and effectiveness
of this approach. JPT
JPT • APRIL 2017
Drill and Learn: A Decision-Making
Work Flow To Quantify Value of Learning

U ncertainty assessment and

reduction are often elements
of high-quality decision making,
strategies on a nearly continuous basis.
The main assumption underlying the
closed-loop-reservoir-management
many real-field models without further
modification or simplification.
Even without performing a formal
although they are not, in themselves, framework is that acquiring informa- VOI assessment, much could possibly be
value creating. Value can be created tion can change decisions about how the learned from simulating the data gath-
only through decisions, and any field should be developed or operated ering, model updating, and strategy-
decision changes resulting from such that certain performance objec- optimization steps of a closed-loop
assisted history matching should be tives are improved. This assumption is work flow before actual gathering of
modeled explicitly. This paper presents identical to that underlying the concept data in an operational setting. In climate
a comparison of existing work flows of value-of-information (VOI) determi- sciences, for example, the value of an
and introduces a practically driven nation, which addresses the question observation network is determined typ-
approach, referred to as “drill and of whether one should actually acquire ically in terms of the quality improve-
learn,” using elements and concepts specific data considering not only the ment of the resulting model forecasts.
from existing work flows to quantify expected effect on the system perfor- In reservoir applications, however, one
the value of learning (VOL). mance but also the cost of acquiring may be more interested in determin-
these data from which the information ing whether the calibration of mod-
Introduction is to be extracted. els to a certain data set has the poten-
The idea to apply numerical optimi- A first attempt to investigate the fea- tial to influence any decisions on how
zation methods to reservoir mod- sibility of applying a decision analytic to develop or operate the field. There-
els in order to arrive at optimal field- VOI work flow to quantitative reservoir- fore, in this work, the model-calibration
development plans has been around for model-based decision making tried to (history-matching) step is followed by
a long time. Early methods for optimi- evaluate the increase in expected eco- an optimization step in which the up-
zation were quite limiting, however, in nomic value with and without the use dated models are used to optimize a de-
terms of the complexity of the prob- of specific data with associated mea- velopment plan. In a formal VOI work
lems that could be addressed. Recent surement errors. The probabilistic as- flow, these steps would be accompanied
developments in algorithms and com- pect of a VOI evaluation was accounted by an evaluation of a change in the ex-
puting power have made it possible to for by the use of an ensemble of models pected realized value with and without
begin to address the full complexity that capture geological uncertainty, and using the data and analysis that involves
of the field-development optimization the value was based on applying opti- the cost of actually obtaining the data
problem, including a large number of mization methods to the model ensem- and information.
decision variables of various types, a ble and evaluating the resulting strate- This study considers the situation
better characterization of geological un- gies on synthetic truth models that were in which the decision to be made is
certainty, handling of realistic platform not part of the ensemble. Improvements the order in which to drill wells. First
constraints, and operating strategies of to the computational complexity of the of all, the authors consider the situa-
newly drilled wells. originally proposed work flow were sug- tion in which possible well positions
Closed-loop reservoir management gested in subsequent work. Still, even have already been determined—a sit-
aims to incorporate new informa- with the suggested modifications, the uation that is very common in many
tion into models and optimize field- computational cost of a formal VOI eval- assets—and only the drilling order
development or reservoir-management uation would remain prohibitive for needs to be optimized. Second, the full
ensemble is used in both the history-
matching and optimization steps, which
This article, written by Special Publications Editor Adam Wilson, contains
is feasible because of the use of effi-
highlights of paper SPE 182719, “Drill and Learn: A Decision-Making Work Flow
cient ensemble-based methods for both
To Quantify Value of Learning,” by R.G. Hanea, SPE, P. Casanova, and L. Hustoft, steps. Furthermore, the effect of the fre-
Statoil; R.B. Bratvold, SPE, University of Stavanger; and R. Nair, C. Hewson, SPE, quency in which the closed-loop is exe-
O. Leeuwenburgh, and R.M. Fonseca, TNO, prepared for the 2017 SPE Reservoir cuted is investigated.
Simulation Conference, Montgomery, Texas, USA, 20–22 February. The paper has It may not be feasible in all cases to re-
not been peer reviewed. vise the drilling plan after each new well

For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.

JPT • APRIL 2017 95


Run optimization
on the prior Optimal
Start
ensemble and schedule
undrilled wells
Run the previously
optimized schedule
on the updated
ensemble
Perform history
Update the prior matching for drilled
ensemble wells with data and
measurement noise
Fig. 1—Illustration of the drill-and-learn work flow to assess VOL under
geological uncertainty.
has been drilled. Therefore, the effect
of implementing the optimized drilling
order is considered for one well, for two
wells, and for four wells before using
new data to update the models. Here,
only the information provided by dy-
namic data is considered. The obvious
extension is to incorporate hard data
obtained from characterization of the
rock encountered along each well path.
A closed-loop reservoir-development/
management work flow on a realistic 3D
reservoir model is evaluated. Because a
decision analytic VOI evaluation is not
executed, different ways to quantify the
improvements in the reservoir perfor-
mance are assessed and referred to as
the VOL. In particular, the authors ex-
plore the potential value of gathering
and using production data during the
drilling program to improve the order
in which remaining planned wells are
drilled. In this context, the work flow is
called “drill and learn.”
Drill-and-Learn Work Flow
At the start of a field-development proj-
ect, before any new production or in-
jection wells have been drilled, prior
knowledge about the reservoir is based
on previous exploration activities (e.g.,
exploration and appraisal wells, seismic
96
Drilled
wells less NO
than total End
wells?
YES
Run truth model
with optimal
schedule
Drill user-defined
number of wells
Generated
data
data). This information can be captured
in an ensemble of models with parame-
ter values that are presumed to span the
uncertainty. This set of prior models can
be used to determine an optimal drilling
plan. If all planned wells are to be drilled
before gathering or using new data, no
further activities are involved. However,
it could be useful to extract information
from data gathered while or after drill-
ing one or more wells and use this infor-
mation to enhance the understanding
of the field and facilitate an improve-
ment of the drilling plan for the remain-
ing wells. In order to be able to evaluate
any improvements in models and strat-
egies, a truth model is defined by select-
ing a random model generated using the
same modeling work flow used to gen-
erate the ensemble. This truth model
is simulated to generate measurements
that are subsequently used in a history-
matching step to update the models. The
most recent computed drilling schedule
for the remaining wells first is evaluated
on this ensemble of updated models for
diagnostic purposes. A new optimized
drilling schedule then is computed using
the updated ensemble, and this schedule
is subsequently evaluated on the truth
model. This series of steps defines one
loop, which can be repeated until all
wells have been drilled. The full loop is
depicted in Fig. 1.
The first measure of VOL is the dif-
ference between the objective function
evaluated on the truth model at the end
of closed-loop iteration and the objec-
tive function obtained by optimization
on the prior ensemble. A second mea-
sure is evaluated directly on the model
ensemble instead of on the truth model.
A third measure evaluates two different
strategies on the updated model ensem-
ble, where one of these is optimized for
this ensemble. A final value is the ab-
solute value of the difference between
the expected value determined from a
model ensemble (after optimization)
and an evaluation of that same strategy
on the truth model. Please see the com-
plete paper for the equations.
In the experiments presented in the
complete paper, the computed values
are based on a single truth model only.
The proposed drill-and-learn work
flow can be used in development mode
(i.e., during the real development of
the field) or in planning mode (i.e., as
a thought experiment to test different
outcomes and strategies to improve de-
cision making).
Conclusions
This paper introduces a practical and
computationally efficient work flow,
drill and learn, to assess the VOL for
different scenarios through a series of
numerical experiments. Using existing
definitions within the VOI work flows
currently used, four different defini-
tions of VOL were used and compared.
Each of the definitions has its own char-
acteristic; however, the second defini-
tion is the only one that explicitly takes
into account the value of assisted history
matching and, thus, shows much higher
values compared with the other three.
Experimental results highlight the im-
portance of increasing the frequency of
the closed-loop framework. At a certain
point within the drill-and-learn work
flow, the effect of history matching ad-
ditional well data on the VOI becomes
minimal, suggesting that early and fre-
quent history-matching updates are the
most effective. The drill-and-learn work
flow can be used in an operational mode
but also can be used within a what-if
analysis framework. JPT
JPT • APRIL 2017
PEOPLE
ANIKET KUMAR, SPE, was selected as the
Young Engineer of the Year representing
the SPE Gulf Coast Section by the Engineers
Week Houston. Young professionals repre-
senting 15 technical societies were honored
for this year’s award. Kumar works for Hal-
liburton as a principal product engineer in
the drilling and completions group based in Houston. He has
more than 5 years of experience in drilling engineering analy-
sis and hydraulic fracturing field operations. Kumar is the
author of more than 20 papers and articles in various techni-
cal journals and conferences, and has 16 pending patent appli-
cations associated with advancing well designs and drilling
operations. Before Halliburton, he worked for Schlumberger
as a field engineer in Oklahoma. He holds an MS degree in pe-
troleum engineering from the University of Houston and
BTech and MTech degrees in mechanical engineering from the
Indian Institute of Technology, Kharagpur, India.
BENTLEY SANFORD, SPE, was appointed
chairman of the board and MICHAEL
MACHOWSKI, SPE, president of the com-
pany at TAM International. Sanford joined
TAM in 1982 and has more than 35 years of
business and management experience in the
oilfield services industry. During his tenure
Sanford
at TAM, Sanford grew the company globally,
with operations in more than 20 countries
and more than 300 employees. He holds a
BS degree in business from Trinity Univer-
sity and a JD degree from South Texas Col-
lege of Law. Machowski was previously the
chief operating officer at TAM. He joined the
company in 2010 and has more than 40
Machowski
years of domestic and international experi-
ence in the oilfield services industry. Before joining TAM, he
held various management positions at Baker Hughes, Weather-
ford, Halliburton, and Smith. Machowski holds a BS degree in
business administration from Louisiana State University.
KUN XIE, SPE, was awarded the 2017 Nico
van Wingen Memorial Graduate Fellow-
ship. Xie is currently a PhD student major-
ing in petroleum and natural gas engineer-
ing in Northeast Petroleum University
(NEPU) in China. Xie holds a bachelor’s de-
gree in petroleum engineering and a mas-
ter’s degree in oil and gas development engineering from
NEPU. He has published 17 technical papers and applied for 11
patents. Xie also volunteers to teach other students on doing
research and writing technical papers. The fellowship in
petroleum engineering is supported by the SPE Foundation
and is awarded to PhD-level students who intend to pursue a
career in academia. Award recipients are nominated by the
SPE student chapter faculty advisor or department chair.
JPT • APRIL 2017
In Memoriam
This section lists with regret SPE members who
recently passed away. If you would like to report the
passing of a family member who was an SPE member,
please write to service@spe.org.
Roy A Baze, Houston, Texas, USA
Alfred Hentz, Le Pradet, France
Jerald L. Sluder, Dallas, Texas, USA
JOSEPH JOHN (JOE) TABER died
29 December 2016 at the age of 96.
He was a Distinguished Member of
SPE and the Improved Oil Recovery
Pioneer Awardee in 1990 from SPE
and the Department of Energy.
The Founder-Director and Direc-
tor Emeritus of the Petroleum Recovery Research Cen-
ter at the New Mexico Institute of Mining and Technol-
ogy in Socorro, New Mexico, Taber led a wide-ranging
research effort on methods to improve oil and gas re-
covery throughout his career. His research led the way
for the now well-established field of enhanced oil re-
covery (EOR) and his work led to eight patents related
to EOR processes. He was a professor in the depart-
ments of chemistry and chemical and petroleum en-
gineering at the University of Pittsburgh for 22 years.
Taber showed in a series of technical papers and
patents how equilibrium phase behavior, low interfa-
cial tension, and adsorption of surfactants interact to
determine displacement efficiency in oil-recovery pro-
cesses. His landmark paper (SPE 2098) concerning
capillary desaturation established that displacement
of oil trapped in a porous medium by capillary forces
occurs when the ratio of pressure gradient to capillary
force (as measured by the interfacial tension) exceeds
a critical value. That ratio is now known as the Taber
number. His research on alcohol flooding, in which an
alcohol that is miscible with both oil and water is used
to displace oil, showed that displacement performance
is strongly dependent on composition path. That ob-
servation pointed the way to the design of micellar/
polymer recovery processes and miscible gas injection
processes, both of which rely on the use of chromato-
graphic separations during flow in the reservoir rock
to achieve high displacement efficiency. Taber’s wide-
ranging view of EOR is captured in his 1997 SPE pa-
pers, Part I and II, “EOR Screening Criteria Revisited,”
which have for many years been the most downloaded
papers in the OnePetro electronic library. He was also
an SPE Distinguished Lecturer during 1989–1990 on
the topic “The Outlook for EOR in Changing Econom-
ic Conditions.” Taber held a bachelor’s degree from
Muskingum University, Ohio, and a PhD in chemistry
from the University of Pittsburg.
97
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JPT • APRIL 2017 99

 SPE EVENTS
WORKSHOPS
11–12 April ◗ Austin—SPE/ICoTA
Refracturing and Advancing the Learning
Curve
17–18 April ◗ Kuala Lumpur—SPE
Managing Global Market Realities Through
Improvement of Values in an Era of Oil
Price Volatility
19–20 April ◗ Houston—SPE The Great
Drilling Automation Debate
26–27 April ◗ Abu Dhabi—SPE
Petrophysics—Reservoir Evaluation
Through Wellbore Measurements
2–3 May ◗ Muscat—SPE Tight Gas—
Maximising Return on Investment (ROI) by
Completing Wells Unconventionally
9–10 May ◗ Aberdeen—SPE Realizing Cost
Savings in Oilfield Scale Management
15–17 May ◗ SPE/SEG Reservoir
Engineering and Geophysical Monitoring
Technologies for EOR Applications
16–17 May ◗ Leoben—SPE Data Enabled
Operational Excellence—The Value of
Information in Oilfield Operations
16–17 May ◗ Abu Dhabi—SPE Added Value
with Coiled Tubing
16–17 May ◗ Cairo—SPE Optimization and
Economics
16–18 May ◗ Austin—SPE Shale
Development Optimization—How Can We
Drive Dollars to the Bottom Line through
Efficiency and Technology?
7–8 June ◗ Budapest—SPE European
Formation Damage
13–14 June ◗ Calgary—SPE Thermal
Drilling and Completions
Find complete listings of upcoming SPE workshops, conferences, symposiums, and forums at www.spe.org/events.
100
13–14 June ◗ The Woodlands—SPE
Application of Integrated Diagnostics for
Unconventional Resource Development
15 June ◗ Calgary—SPE Life Cycle Asset
Management for Unconventional Field
Development
29–31 August ◗ Denver—SPE Distributed
Fiber-Optic Sensing for Well, Reservoir,
and Facilities Management
14–15 September ◗ Santa Cruz, Bolivia—
SPE HSE and Sustainability—The
Cornerstone for Efficient E&P Operations
26–27 September ◗ Abu Dhabi—SPE Asset
Integrity Management—How to Improve
Profitability, Performance, Efficiency, and
People
CONFERENCES
4–6 April ◗ Mumbai—SPE Oil and Gas India
Conference and Exhibition
4–6 April ◗ Kuala Lumpur—SPE Asia Pacific
Health, Safety, Security, Environment, and
Social Responsibility Conference
5 April ◗ Bergen—SPE Bergen One Day
Seminar
18–20 April ◗ New Orleans—SPE Health,
Safety, Security, Environment, & Social
Responsibility Conference—North America
23–27 April ◗ Bakersfield—SPE Western
Regional Meeting
1–4 May ◗ Houston—Offshore Technology
Conference
5 May ◗ Houston—d5: The Next Big Thing
8–10 May ◗ Abu Dhabi—SPE Reservoir
Characterization and Simulation
Conference and Exhibition
17–19 May ◗ Buenos Aires—SPE Latin
America and Caribbean Petroleum
Engineering Conference
12–15 June ◗ Paris—SPE Europec featured
at 79th EAGE Conference and Exhibition
SYMPOSIUMS
18 April ◗ Calgary—SPE/CHOA Slugging
It Out
24–27 April ◗ Dammam—SPE-KSA Annual
Technical Symposium & Exhibition
24–28 April ◗ The Woodlands—SPE
Electric Submersible Pumps
9–10 May ◗ Abu Dhabi—SPE Intelligent Oil
and Gas Symposium
4–6 October ◗ Lexington—SPE Eastern
Regional Meeting
7–8 November ◗ Kuala Lumpur—SPE Asia
Pacific Production Enhancement and Cost
Optimization
FORUMS
5–9 November ◗ San Antonio—SPE:
“Waterless Fracturing”—Reducing Fresh
Water Use for Reservoir Stimulation in a
Future Water-Constrained World
CALL FOR PAPERS
SPE Thermal Well Integrity and Design
Symposium ◗ Banff
Deadline: 23 April
JPT • APRIL 2017
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