Society of Petroleum Engineers

Distinguished Lecturer2015-2016Lecture Season

Modern Perforating Techniques: Key to Unlocking Reservoir Potential

Andrew Martin

Schlumberger

Abstract:

Perforating is a key part in any well completion, being the link between wellbore and reservoir rock. Most think of perforating as being the act of running guns loaded with shaped charges into a well on wireline or tubing and blasting holes as deep as possible into the formation. However, techniques and models have recently evolved that clearly show that the focus should be on perforating for productivity, rather than perforating for penetration. The presentation leads the audience through the research, experiments and models that show how, today, we can maximize reservoir potential through a perforated completion. It highlights the importance of not just penetration, but also shot density and perforation clean up, as well as the need to bring the well on production without damaging new perforations. The one idea I would like the members to take away from this lecture is that they should take care of how they perforate their wells and use the techniques available or risk losing thousands of barrels of production. These techniques apply to new wells, old wells and also help delay unwanted events such as production below bubble point or condensate banking. So not only wells should produce better, but they should also flow for longer without intervention. (Note that this presentation can be tailored for specific local requirements such as "Perforating for Fracturing" or "Perforating Carbonates".

Biography:

Andy Martin is Technical Director of Perforating for Schlumberger having joined the company in 1979as a field engineer. His career has taken him through operations, teaching cased hole services and technical writing. In 1996 Andy moved to EngineeringRosharon, Texas where perforating systems are developed, shaped charges manufactured and perforating research conducted for Schlumberger. Since then he has been involved in all aspects of perforating and regularly presents and teaches on the topic.

He is a member of SPE, SPWLA and IExE and is a Schlumberger Advisor.Andy graduated from Oxford University obtaining an MA in Engineering Science.

Society of Petroleum Engineers

Distinguished Lecturer 2015-2016 Lecture Season

Uncertainty Assessment Using Reservoir Simulation Models -

Practical Guidelines

Anil Ambastha

Chevron Nigeria Limited

Abstract:

Uncertainty assessment using reservoir simulation models for green- and brown-field situations has become a common practice. While capturing uncertainties in forecasts is required in all situations, developing multiple history-matched models is also an important goal for brownfield situations. Objective of this talk is to provide systematic and practical guidelines for uncertainty assessment work using reservoir simulation models.

This talk discusses steps involved in any uncertainty assessment including selection of uncertain parameters and their ranges, practical experimental design methods, appropriate response or tracking functions (or variables), and data analysis techniques. Roles of lessons learnt from a base-case history-match exercise for a brownfield situation as well as earth modeling/ petroleum engineering knowledge in setting up appropriate parameters and ranges are emphasized. Guidelines are provided to judge “quality of history match” based on prudent interpretation of response or tracking functions/variables. A Monte Carlo simulation-based methodology to develop multiple history-matched models for brownfield situations is presented in detail including practical tips on problem setup and analysis of results. Unique nature of uncertainties related to forecasting situations is discussed with an emphasis on a need to engage all operational and facilities personnel to develop adequate forecast problem description and economic success metrics.

Guidelines presented in this talk are illustrated using a case study example. Practical tips presented in this talk would be of use to all reservoir simulation engineers carrying out uncertainty assessments and always remember one thing - no matter how careful we are, we cannot assess the impact of unidentified uncertainty.

Biography:

Anil Ambastha has 26 years of experience in various facets of oil and gas reservoir engineering, including applied reservoir simulation, pressure transient analysis, and thermal recovery, since his Ph.D. in petroleum engineering from Stanford University. He has worked in 6 countries and currently serves as "Reservoir Simulation Unit Lead" at Chevron Nigeria Limited. He also served as an Executive Editor of SPE Reservoir Evaluation and Engineering journal (Reservoir Engineering side) from 2008-2011. He is a winner of three SPE International Awards (Lester Uren Technical Excellence, Distinguished Member, and Distinguished Service), seven "Outstanding Technical Editor" Awards, and "A Peer Apart" Award.

Society of Petroleum Engineers

Distinguished Lecturer 2015-2016 Lecture Season

Well Design and Integrity: Importance, Risk and Scientific Certainty

Brun Hilbert

Exponent Failure Analysis Associates, Inc.

Abstract:

The term "Well Design and Integrity" has taken on added meaning as a result of intense media scrutiny and public interest regarding hydraulic fracturing and the tragic Macondo well blowout in the Gulf of Mexico. The complexities and costs of well design have increased significantly to meet the challenges of ultra-deep wells exceeding 30,000 ft., ultra-HPHT wells (500F and 30,000 psi), and ultra-deepwater drilling (exceeding 10,000 ft.). As a consequence, the risk to companies designing wells for these applications has increased. As we know from recent events, the consequences of failures can be enormous, and minimizing the risk of such catastrophic failures is imperative. It is not simply coincidental that the engineering tools for well design have become ever more complex. Tools such as nonlinear finite element analysis (FEA), computational fluid dynamics (CFD), and multi-physics software are now commonly used. What are these tools and the input data required for output of dependable and accurate results? This presentation will summarize applications of these tools, exhibiting their input requirements, and output interpretation and quality. Applications will include threaded connection pressure integrity, cement and rock strength and deformation, formation-cement-casing interactions, all of which involve complex nonlinear material and interface behavior. I will discuss computational modeling of the temperature dependent, viscoplastic response of salt and "soft" porous rocks, and compactive behavior of high-porosity formations. Downhole tools may include stainless steels, elastomer and polymer components. Seal rings and inflatable packers are highly temperature dependent and exhibit significant creep behavior. Calibration of material model parameters is vitally important, but for non-metals can require a significant number of samples, which are difficult and expensive to acquire and test. The correct selection of a validated material model can be the key to success or failure in minimizing risk.

Biography:

Dr. L. Brun Hilbert, Jr. is a Principal Engineer in the Mechanical Engineering Practice at Exponent Failure Analysis Associates, Inc., and consults in mechanical and petroleum engineering. In his work, Dr. Hilbert analyzes the root cause of failures, and performs proactive consulting to assist clients in failure prevention, design improvement, and risk minimization. He has worked in the upstream petroleum industry for over 30 years and has been an SPE Member since 1982. He performed applied research in the Drilling & Completions Division of Exxon Production Research Company. He holds a Ph.D. degree in Rock Mechanics from the University of California, Berkeley, and an MS degree in Mechanical Engineering and BS degree in Mathematics from the University of New Orleans.

Society of Petroleum Engineers

Distinguished Lecturer 2015-2016 Lecture Season

First-Ever Comprehensive Environmental Characterization of

Hydraulic Fracturing for Shale Oil and Gas Production

Daniel Tormey

ENVIRON Corporation

Abstract:

The well completion process of high volume hydraulic fracturing has become a touchstone for opposition to the development of oil and gas resources from shale source rocks. Although the development of shale gas and oil has brought substantial economic, geopolitical, and climate change benefits to the United States, hydraulic fracturing has displaced global climate change as the most controversial environmental policy issue. As other countries evaluate development of shale oil and gas, these same environmental concerns are available on the internet and media sources. Without data, the concerns become a substantial hindrance to acceptance of shale gas development.

This study presents the first-ever peer-reviewed study that quantifies the effects of two specific high-volume hydraulic fracturing jobs to 14 different environmental resource categories. The objective was to provide factual information supported by a high quality dataset to guide policy making. None of the measurements detected a change due to hydraulic fracturing, including microseismic effects, ground motion and induced seismicity, water quality, methane migration, community health, well integrity, fracture containment to the target zone, and others.

The hydraulic fracturing occurred in the center of Los Angeles, California, at the largest urban oil field in the US. The level of community and regional concern, the breadth of the study, and many of the results are applicable to other shale oil and gas areas worldwide. The results provide the first dataset that addresses the range of concerns directly, and finds no adverse effects to any of the environmental resource categories.

Biography:

Dr. Tormey is an expert in energy and water. He works with the environmental aspects of all types of energy development, with an emphasis on oil and gas, including hydraulic fracturing and produced water management, pipelines, LNG terminals, refineries and retail facilities. He has conducted important assignments in onshore, offshore, nearshore, estuarine, riverine and glacial environments. Dan has worked throughout the US, Australia, Indonesia, Italy, Chile, Ecuador, Colombia, Venezuela, Brazil, Senegal, South Africa, Armenia and the Republic of Georgia. He has a Ph.D. in Geology and Geochemistry from MIT, and a B.S. in Civil Engineering and Geology from Stanford.

Society of Petroleum Engineers

Distinguished Lecturer 2015-2016 Lecture Season

Beyond Volumetrics: Unconventional Petrophysics for

Efficient Resource Appraisal

David R. Spain

BP

Abstract:

Unconventional Reservoirs require a new petrophysical paradigm and must go “beyond volumetrics.” Efficient unconventional resource appraisal should consider not only the static (storage) and dynamic (flow) properties within the context of the petroleum system and the current day pore geometry and fluid saturation distribution, but also the geomechanical stress regime and its implications for efficient completion design and reservoir performance prediction. Reservoirs with high potential for deliverability should be targeted for development; these zones will dominate well and field performance. The effective application of integrated subsurface and completion workflows leads to improved capital efficiency and well performance through increased well potential, increased ultimate recovery, and reduced costs.

Biography:

David Spain is aSenior Advisor for Unconventional Gas Petrophysics in the BP Upstream Technology Group in Houston, Texas, where he leads the Geo-Engineered Completion Optimization Project. David has over 30 years experience in research and development, resource appraisal, field development, and integrated reservoir management across the globe. David obtained his graduate degree in Geology from Vanderbilt University in 1982; he attended the Amoco Petrophysics Training Program XXII and has published numerous papers on shale evaluation, tight gas reservoirs, and integrated petrophysical solutions.

Society of Petroleum Engineers

Distinguished Lecturer 2015-2016 Lecture Season

Cement Testing: Are We Looking at The Right Things The Wrong Way?

Donald Purvis

Marathon Oil Corporation

Abstract:

The most important aspect in wellbore construction is creating and maintaining wellbore integrity and zonal isolation. The potential of fresh water contamination has captured the attention of the public and media. Cross flow between productive intervals or salt water zones can result in environmental and legal challenges as well as lost production. The number of wells developing annular pressure over time has become a concern and expense for operators. The design and placement of a competent cement seal in the annulus is critical when addressing these issues.

Laboratory testing of cement for use as a physical barrier in wellbore construction has been performed by our industry since the early 1900’s. This Presentation describes how the testing has progressed from Code 32, the first API code, to the present day ISO and API guidelines. The current testing methodology detailed in these guidelines is examined and compared to the actual forces cement is exposed to in the wellbore. Four tests are examined in detail; Thickening Time, Fluid Loss, Compressive Strength and Tensile Strength. The significance of tensile strength is presented.

Some of the traps that can be made by relying on standardized testing are exposed. New developments in cement testing to overcome these issues are presented. Recommendations are then made for testing beyond the standard ISO tests.

The audience should gain a better understanding of what they need cement to do and the laboratory tests required to make sure it does.

Biography:

Don is currently a Senior Technical Consultant for Marathon Oil Company. He advises and provides strategies for the Drilling and Completion asset teams within Marathon. Prior to this role he was the US Vice President for Technical Services for Calfrac. In that role he was responsible for the engineering efforts related to Fracturing and Cementing in the US. Prior to Calfrac, Don was the Rocky Mountain Region Technical Manager for the Pressure Pumping division of Baker Hughes. He has 35 years of engineering experience in the oil industry. His previous positions include Engineering Training Manager, Mid-Continent Technical Manager, Research Scientist, and Technical Consultant. He has done extensive research in cement flow dynamics and testing methodology. He has authored 12 technical papers, and several technical journal articles. Don holds two process patents for completion strategies. Don and his wife reside north of Houston Texas and have two grown sons.

Society of Petroleum Engineers

Distinguished Lecturer 2015-2016 Lecture Season

The Value of Assessing Uncertainty(What You Don’t Know Can Hurt You)

Duane A. McVay

Texas A&M University

Abstract:

The petroleum industry has underperformed for decades because of project evaluation methods that do not fully account for uncertainty. Chronic biases, particularly overconfidence and optimism, persist because there has been little emphasis in the petroleum literature on the true cost of underestimating uncertainty and on how to quantify uncertainty reliably.

In this presentation I will present the results of recent work assessing the monetary impact of chronic overconfidence and optimism on portfolio performance. For moderate and typical amounts of overconfidence and optimism, expected disappointment (estimated NPV minus actual realized NPV) was 30-35% of estimated NPV for the industry portfolios and optimization cases analyzed. Significantly greater disappointments have actually been experienced in industry.

Decision making will be optimal in the long run only when probabilistic forecasts are well calibrated—P10s are true P10s, P90s are true P90s, and so forth. Changing corporate culture to consistently produce well-calibrated probabilistic forecasts will require education on the importance of lookbacks and calibration, as well as changes in business processes and incentive structures.Reliable assessment of uncertainty will add value to the bottom line, and has the potential to significantly improve company and industry financial performance.

Biography:

Dr. Duane A. McVay is the Rob L. Adams ’40 Professor in the Department of Petroleum Engineering at Texas A&M University. He is a Distinguished Member of SPE. His primary research focus is on uncertainty quantification, particularly in the context of production forecasting and reserves estimation in oil and gas reservoirs. He joined Texas A&M in 1999, after spending 16 years with S.A. Holditch & Associates, a petroleum engineering consulting firm. He received B.S., M.S. and Ph.D. degrees in Petroleum Engineering from Texas A&M University.

Society of Petroleum Engineers

Distinguished Lecturer 2015-2016 Lecture Season

How to Save Time, Money, and Reduce Personnel Exposure

Using Unmanned Aircraft Systems

Dyan M. Gibbens

Trumbull Unmanned

Abstract:

Across the world, small Unmanned Aircraft Systems (UAS) are creating opportunities within numerous industries to reduce costs and personnel exposure. This presentation takes the audience on a journey—from the first military applications, to academic research, to where we are today on the cusp of full-scale industry employment once commercial regulations are defined later this year. From offshore drilling to downstream examples, this talk will introduce the various types of data that are currently being acquired and can be acquired—which were previously very expensive or almost impossible to collect.

But what is a UAS? Ultimately UAS is a tool used to carry a sensor. This presentation introduces technologies that are being miniaturized which make them perfect tool to enable early detection, or to be used in lieu of putting life at risk in inspections or emergency response.

Once UAS become routine operations, the benefits are presented in four interrelated areas: environmental responsibility, regulatory compliance, cost savings, and operational efficiencies. At a fraction of current costs for manned-aerial imaging, higher frequency UAS inspections provide more data, especially important when problems arise. For a low-risk, high-reward effort, UAS will revolutionize the maintenance cycle and promote resource reinvestment.

In all, this presentation encourages early action to posture proactively before demand outstrips supply of competent, qualified UAS operators using a common-sense approach. Companies should quantify the value of early detection to determine inspection intervals and lost savings they are willing to accept. The cost of inaction or delayed action is quantifiable—and substantial.

Biography:

For a decade, Dyan led aerospace integration. She supported a Global Hawk Unmanned Aircraft System (UAS) Business Case Analysis, UAS hydrocarbon detection through PhD research, and cofounded International Consortium of Aeronautical Test Sites.