Technology Oil Potential with DHOWS

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(No Transcript)
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Technology Oil Potential with DHOWS
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Downhole Oil/Water Separation

• Background
• Basic Operation
• Development Project
• Initial Results
• Economics
• What Has Already Been Done
• What Can Be Done
• What Might Be Done in Future

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Background

• Why was it needed?
• What was the concept?
• When did it happen?
• Where could it be used?
• How was it turned into action?
• Who got it started?

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Water and Oil Production in Western Canada
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Downhole Oil/Water Separation (DHOWS)

• Problem - Wells being shut-in
• Still producing oil
• Producing too much water
• Most wells shut-in _at_ WORlt20
• Solution - In Well Separation Downhole
• Mechanical solution more reliable than shut-offs
• Evaluated membranes, gravity separation,
  selective filtration, and hydrocyclones
• Re-Inject water into producing formation

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Basic Downhole SeparationNew Paradigm
1991Commercial - 1996
C-FER/NPEL
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DHOWS Applications

• Onshore Mature Operations
• Water handing one of the highest costs
• A large number of mature fields with high WOR
• Small volumes and small wellbores
• Offshore
• Reduce volumes to platforms
• Reduce produced water dumping to ocean
• Avoid adding to existing platforms
• Middle East
• Even a small amount of water a problem

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Project Development Concept

• Look at all options for Feasibility
• Work with appropriate vendors to develop
  prototypes
• Move directly to field testing at selected sites
• Expand testing to develop commercial products
• Follow-up to expand applications

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Downhole Oil/Water Separation (DHOWS)

• New Paradigm Engineering Ltd.
• Project Initiator/Inventor - Bruce Peachey
• Concept Development Project Leader
• Centre For Engineering Research Inc., C-FER
• Contracting Development Support
• Technology Licensing
• Oil Industry Participants
• Funding, prioritization test wells
• Pump and Hydrocyclone Vendors
• Prototype Design and Initial Prototypes
• Equipment Marketing

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Basic Operation

• Typical DHOWS Configuration
• Hydrocyclone Operation
• Design Constraints

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Typical DHOWS Configuration
C-FER/NPEL
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Hydrocyclones (De-Oilers)
Tangential Inlet
OilConcentrateOutlet
Disposal Water Outlet
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DHOWS Process Design Constraints

• Equipment O.D. lt 4.5 inches _at_ 3,600 bfpd
• Equipment O.D. lt 6 inches _at_ 9,000 bfpd
• No access for maintenance for 1-12 years
• Little or no downhole control or instrumentation
• Low cost and reliable
• Water/Oil Ratio to surface 1-2

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Development Project

• Phase I - 20k Feasibility Study 1992
• Phase II 100k - Prototype Development 1993-94
• Phase III 450k - Field Testing 1994-96
• Offshore Study - 360k North Sea/Sub Sea
  Applications
• On-going Support to Trials - 1.5M 16 trials

C-FER/NPEL
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Timeline of NPEL/C-FER DHOWS JIP
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Investment in DHOWS Technology
C-FER/NPEL
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DHOWS Prototypes

• ESP - Electric Submersible Pump - 1800 bfpd
• Reduced water to surface by 97
• Oil Rate went up 10-20 at same bottom-hole rates
• Ran 8 months 1994-95
• PCP - Progressing Cavity Pump - 1800 bfpd
• Reduced water to surface by 85
• Well previously in sporadic operation for about 3
  yrs.
• Ran 17 months 1994-1996
• Beam Pump - 600 bfpd
• Reduced water to surface by 85
• Demonstrated Gravity Separation
• Ran for 2 months - rod failure

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ESP Prototype Field Trial
C-FER/NPEL
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ESP Prototype Field Trial
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DHOWS Installations Number
C-FER/NPEL
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DHOWS Installations System Type
C-FER/NPEL
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Breakdown of DHOWS Applications
C-FER/NPEL
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Basic DHOWS Installation - PanCanadian
C-FER/NPEL
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ESP DHOWS Anderson Exploration Ltd., Swan Hills,
AB
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Alliance Field Overall Results ESP
C-FER/NPEL
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ESP DHOWS Results - Talisman
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DHOWS Application Requirements

• Suitable disposal zone accessible from the
  production wellbore
• Competent casing/cement for disposal zone
  isolation
• Water cuts above 80
• Accurate estimate of productivity and injectivity
• Relatively stable production
• Favourable Economics

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Critical Success Factors

• Disposal Zone Selection
• location, isolation, injectivity characterization
  
• Completion
• integrity testing
• disposal zone preparation and testing
• Operation
• separation optimization
• long term injection behavior
• changes in inflow conditions

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Typical Installation Steps

• Prepare well for installation
• Pull existing lift system
• Recomplete injection zone
• perforating, install screen, treat zone
• Install injection packer and on/off assembly
• Perform injectivity test
• Adjust system configuration if necessary
• Install system
• Produce kill fluids, then start production

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Control and Monitoring

• Control Methods
• VFD Variable Frequency Drive
• Surface choke
• Surface controlled downhole choke
• Minimum Monitoring
• Injection and producing pressure and injection
  rate
• Injection water quality
• Water cut of intermediate stream

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Future Equipment Development of Basic DHOWS

• Heavy Oil Solve the problem of sand production
• Offshore Already under way. Gas Lift Proposal
• High Volume Larger capacity system under
  development
• Lower Water cut to surface Feasible for
  offshore subsea
• Alternate Lift Systems Gas Lift, Flowing, Jet
  Pump
• Alternate Separation Units More options at low
  rates

C-FER/NPEL
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DHOWS Licensing Status

• Peachey Patents - assigned to C-FER
• C-FER licenses pump vendors
• ESP - World Wide Licenses
• REDA - AQWANOT Systems
• Centrilift (Baker-Hughes) - HydroSep Systems
• PCP/Beam - Canadian only to date
• BMW Pump/Quinn Oilfield
• Baker-Hughes - preferred Hydrocyclone vendor
• Pump Vendors Collect Royalties for C-FER
• Once per well.

C-FER/NPEL
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Basic DHOWS Technical Summary

• Positive experience is quickly building with over
  30 field trials so far.
• Still fewer than 20 people world-wide have been
  involved in more than one application.
• All trials have shown water reductions of 85-97
• Application of DHOWS can increase oil production
  and increase net returns

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Impacts of DHOWS on Economic Recovery

• DHOWS is new so we are still learning
• Impacts vary by pool and by well
• Individual well costs could go up or down
• Overall operation costs will usually go down
• Production increases observed in most
  applications
• Analysis will try and relate DHOWS and
  Conventional economic limits based on analysis of
  the WOR vs. Cum Oil plot

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Economic Cut-Offs for Typical Well Water Budget
US5/bbl oil
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Impact of DHOWS on Economic WOR Simmons Well 106
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Impact of DHOWS on Economic WORSimmons Well 109
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Impacts of DHOWS on Costs

• Cost to lift Water to Surface (Could go up or
  down)
• Gathering and Facilities Costs (Capital
  Operating down)
• Disposal System (Capital and Operating down)
• Well Utilization (Injectors down Producers up)
• Scale/Corrosion Costs (Capital and Operating
  down)
• Environmental Costs (Prevention Clean-up costs
  down)

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Disposal Power Consumption
450
400
350
Fracture Pressure
300
Power for Single Disposal Well
250
_at_ 36,000 bwpd
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Differential Pressure to Inject (psi)
150
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Power for Ten DHOWS Wells
_at_ 3,600 bwpd each
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Wellhead Pressure
0
0
3
6
9
12
15
18
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24
27
30
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Injection Rate (Thousands of bwpd)
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Overall Profitability for a Sample Well
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Mid-morning Coffee Break
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What Has Already Been Done

• DHOWS Commercial Systems Developed with C-FER
• ESP Commercial AQWANOTTM and HydrosepTM
• PCP (Weatherford) and Beam (Quinn) available
• New DHOWS Versions in Trial Stage
• Desanding (PCP and ESP)
• Gravity Separation Systems - Beam Pumps
• Texaco/Dresser, Quinn (Q-Sep)
• Reverse Coning Without Separators

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DHOWS Horizontal Well - Talisman Energy

• Dual Leg Horizontal Well - 2 x 3,000 ft legs
• Injection to Toe of one leg
• Double packer to isolate injection
• Produce from second leg and Heel of first leg

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Dual Horizontal Well DHOWS
Also Installed With Uphole Injection
Talisman Energy Inc
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Uphole Reinjection

• Injection zone(s) above the production zone(s)
• ESP DHOWS

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DHOWS with C-FER Desander
To Surface
Pump(s) - ESP or PCP

• Problem - Heavy Oil Wells
• Sand Plugs Injection
• Solution Desanding
• Sand Oil to Surface
• Water to Injection

Desander
Deoiler Hydrocyclone
To Injection
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What Can Be Done

• Reverse Coning with DHOWS
• Re-Entry Drillout (Single Well)
• Re-Entry Drilling (Multi-well)
• Cross-Flooding Between Zones

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Coning Control with DHOWS
C-FER/NPEL
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Re-Entry Drillout

• Create or activate water disposal leg on
  producing well or producing leg on watered-out or
  water disposal well
• Re-entry drillout or drilled and plugged-off
  during initial drilling program
• Zone cross-flooding between wells

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Re-Entry Drilling

• Use when zone between injector and producer is
  swept
• Directionally drill to establish new producing or
  injection location(s)
• Producing zone in well provides water for flood
• Existing wellbore could be used as producing zone
  or injection zone

New Injection Location
New Producing Location
Existing Swept Zone
Producing Well
Injector
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Cross-Flooding

• Multi-layered reservoir application
• Some wells produce from lower zone inject into
  upper zone
• Other wells produce from upper and inject lower
• Double the number of injectors or producers
  without drilling!

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Horizontal Well Flooding
Horizontal Cross-Flood

• Use to produce from one horizontal well
• Inject into a second horizontal well which is
  offset lower, higher or going in the opposite
  direction
• Inject into the vertical section of a re-entry
  horizontal producer.

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What Might be Done In Future

• Offshore Already under way. Gas Lift Proposal
• High Volume Larger capacity system under
  development
• Lower Water cut to surface Feasible for
  offshore subsea
• Alternate Lift Systems Flowing, Jet Pump
• Alternate Separation Units More options at low
  rates
• Ultimate Vision No water handling on surface

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Oilfield Water ManagementSame Well
Source/Injector/Recycle
Lake or River Source
Move toward Ideal
Cap rock
Oil Leg
DHOWS
Water Leg
Pump
Cap rock
Underlying Aquifer
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The Middle East Water Challenge

• Reservoirs contain billions of barrels
• Recovery only projected to be 40 due to water
• Most wells flowing only oil now
• No water handling infrastructure
• Wells die at 30-40 water cut
• Major costs and infrastructure to operate with
  water
• Solution needed
• Install in well and leave for years
• No external power
• No increase in water

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Smart Well Technologies

• Building on DHOWS concepts
• Modular processes
• Few large fixed capital installations
• In well if possible and economic
• Keep Systems Simple Reliable
• Monitoring and Diagnostics
• Benefits of Downhole Monitoring
• Real-time Remote Monitoring
• Enhanced Analysis

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New Technology Production Decline
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Downhole Oil/Water Separation Summary

• Positive experience is quickly building.
• All DHOWS wells show water reduced 85-97
• Still many applications to try
• Plenty of potential and opportunity for new
  concepts

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Contact Information

• Advanced Technology Centre
• 9650-20 Avenue
• Edmonton, Alberta
• Canada T6N 1G1
• tel [phone]
• fax [phone]
• email info_at_newparadigm.ab.ca
• web www.newparadigm.ab.ca