3/15/16 7:09 AM

April16_JPT_Cover.indd 1
A P R I L 2 0 1 6 • VO LU M E 6 8 , N U M B E R 4 JOURNAL OF PETROLEUM TECHNOLOGY
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CONTENTS
Volume 68 • Number 4

14 GUEST EDITORIAL • CHANGING HOW WE MANAGE HSE:

GETTING TO ZERO
Sustainability will depend on continuing to close the gaps in health, safety,
and environmental performance, and will require major shifts in cultural,
organizational, and human performance paradigms.
16 BEYOND THE HEADLINES • FUGITIVE GAS AND FLARING:
CURRENT AND FUTURE REALITIES
The principal reason for environmental concern about methane is that it is
a more powerful greenhouse gas than carbon dioxide. Fugitive and flared
gas is gas that does not get sold, and the solutions are in the economic
interests of the operators.
30 SHALE COMPLETIONS IMPROVE, DESPITE SHRINKING
NUMBER OF NEW WELLS
As shale producers laid down hundreds of rigs across the United States,
they were also advancing completion strategies and driving down costs.
These improvements should yield wider margins for the struggling sector
when an oil price recovery arrives.
33 THE WIDE DIVIDE BETWEEN FRACTURING PLANS
A Calfrac Well Services crewman,
AND REALITY Ray Brummett, working on a
Fiber-optic cable allowed Shell and Devon Energy to get a meter-by-meter Bakken Shale well in North Dakota
look at what happens in the rock during and after fracturing. The results where operators are struggling to
showed that plans designed to evenly fracture many points within each innovate as rig counts continue to
stage produced very different results. slide downward. Photo courtesy of
Valery Lyman.
38 SURVIVING THE DOWNTURN: OIL EXECUTIVES SEE
CONTINUED TOUGH TIMES AHEAD
Highlights from the recently held IHS CERAWeek conference in Houston,
an annual gathering of top executives from operators, national oil
companies, the service sector, and government.
44 SPE BOARD ANNOUNCES NOMINEES
Darcy Spady is the nominee for 2018 SPE President and seven other DEPARTMENTS
members are nominated to fill vacancies on the 2017 SPE Board
of Directors. 6 Performance Indices
47 MANAGEMENT • THE POWER OF COGNITIVE TECHNOLOGY 8 Regional Update
A Repsol and IBM collaboration uses cognitive computing to maximize 10 President’s Column
yield from existing fields and reduce the risk and uncertainty of 12 Comments
future acquisitions.
20 Technology Applications
49 PREVIEW OF 2016 OTC 24 Technology Update
In an unsettled oil price environment, the 2016 Offshore Technology
Conference offers a forum for exchanging ideas and the latest 27 E&P Notes
technologies to help the industry move forward. 88 People
52 OTC SPOTLIGHT ON NEW TECHNOLOGY AWARDS 90 Professional Services
The recipients of the 2016 Offshore Technology Conference Spotlight 91 Advertisers’ Index
on New Technology awards are revealed. Awards showcase the latest 92 SPE Events
advances in offshore exploration and production.

An Official Publication of the Society of Petroleum Engineers. Printed in US. Copyright 2016, Society of Petroleum Engineers.
 Solutions for the Life Cycle
of Your Well
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Toe Sleeve™. TAM’s extensive suite of swellable packers is available in multiple
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TECHNOLOGY FOCUS

55 OFFSHORE DRILLING AND COMPLETION

Martin Rylance, SPE, Senior Adviser, BP

56 In-Well Dual Canned ESP Completion Test To Validate Safe Deployment

in Deep Water

58 Tandem Downhole-Isolation-Valve System Eliminates Snubbing

60 Intelligent-Completion Installations in the Santos Basin Presalt Cluster

64 NATURAL GAS PROCESSING AND HANDLING

Xiuli Wang, SPE, Emerging Technology Manager, Baker Hughes

MAKING
65 Operations Excellence Begins in Design
67 A New Method To Detect Blockage in Gas Pipelines
70 New Syngas Reforming Solutions for Enhanced Gas-to-Diesel Conversion

72 HIGH-PRESSURE/HIGH-TEMPERATURE CHALLENGES
EVERY
TRIP
Mike Payne, SPE, Distinguished Adviser, BP

73 Next-Generation HP/HT Subsea-Wellhead-System-Design Challenges

and Opportunities

75 The HP/HT Completion Landscape COUNT.

77 Managed-Pressure-Drilling Technology Delivers Challenging HP/HT
Drilling Campaign

80 HISTORY MATCHING AND FORECASTING

Alexandre Emerick, SPE, Reservoir Engineer, Petrobras
ZeroTime™ is a game-changing
logging-while-working solution
81 A Data-Driven Model for History Matching and Prediction that eliminates stand-alone
diagnostic surveys by adding
84 Streamline-Based History Matching for Multicomponent Compositional
Systems intelligence to routine trips
in hole. ZeroTime™ enables
86 Bayesian-Style History Matching: Another Way To Underestimate operators to plan their next
Forecast Uncertainty? move in total confdence with
zero-added rig time.

- Minimise risk

- Maximise efciency

- Minimise costs

www.zerotime.info
The complete SPE technical papers featured in this issue are available
free to SPE members for two months at www.spe.org/jpt.
 ENDLESSINNOVATION
2016 Ofshore Technology Conference | 2–5 May | NRG Park | Houston, Texas, USA
REGISTRATION OPEN NOW
The Ofshore Technology Conference (OTC) is where
energy professionals meet to exchange ideas and
opinions to advance scientifc and technical knowledge
for ofshore resources and environmental matters.
OTC attracts more than 90,000 attendees from 130+
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OTC is sponsored by 13 nonproft organizations in the
energy industry, who work cooperatively to develop the
technical program. Revenue from OTC directly benefts
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Visit 2016.otcnet.org for additional information.
2/4/16 3:41 PM
 SPE BOARD OF DIRECTORS
OFFICERS
2016 President
Nathan Meehan, Baker Hughes
2015 President
Helge Hove Haldorsen, Statoil
2017 President
Janeen Judah, Chevron
Vice President Finance
Roland Moreau, ExxonMobil Annuitant
REGIONAL DIRECTORS
AFRICA
Adeyemi Akinlawon,
Adeb Konsult
CANADIAN
Darcy Spady, Broadview Energy
EASTERN NORTH AMERICA
Bob Garland, Silver Creek Services
GULF COAST NORTH AMERICA
J. Roger Hite, Inwood Solutions
MID-CONTINENT NORTH AMERICA
Michael Tunstall
MIDDLE EAST
Khalid Zainalabedin, Saudi Aramco
NORTH SEA
Carlos Chalbaud, ENGIE
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
Alex Asfar, Senior Manager Publishing Services
Pam Boschee, Senior Manager Magazines
Chris Carpenter, Technology Editor
Trent Jacobs, Senior Technology Writer
Anjana Sankara Narayanan, Editorial Manager
Joel Parshall, Features Editor
Stephen Rassenfoss, Emerging Technology Senior Editor
Stephen Whitfield, Staff Writer
Adam Wilson, Special Publications Editor
Craig Moritz, Assistant Director Americas Sales & Exhibits
Mary Jane Touchstone, Print Publishing Manager
David Grant, Electronic Publishing Manager
Laurie Sailsbury, Composition Specialist Supervisor
Dennis Scharnberg, Proofreader
SOUTH AMERICA AND CARIBBEAN
Anelise Quintao Lara, Petrobras
SOUTH ASIA
John Hoppe, Shell
SOUTH, CENTRAL, AND EAST EUROPE
We give
Matthias Meister, Baker Hughes
SOUTHERN ASIA PACIFIC
you the
superpowers
Salis Aprilian, PT Badak NGL
SOUTHWESTERN NORTH AMERICA
Libby Einhorn, Concho Oil & Gas
WESTERN NORTH AMERICA
Andrei Popa, Chevron you’ve
TECHNICAL DIRECTORS
DRILLING AND COMPLETIONS
always
dreamed of.
David Curry, Baker Hughes
HEALTH, SAFETY, SECURITY, ENVIRONMENT,
AND SOCIAL RESPONSIBILITY
Trey Shaffer, ERM
Introducing the world’s
MANAGEMENT AND INFORMATION
J.C. Cunha first X-Ray technology
PRODUCTION AND OPERATIONS
Jennifer Miskimins, Barree & Associates
for oil wells.
PROJECTS, FACILITIES, AND CONSTRUCTION VISURAY’s revolutionary VR90 ®
Howard Duhon, GATE, Inc.
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RESERVOIR DESCRIPTION AND DYNAMICS faster, it lets you see 2D and 3D
Tom Blasingame, Texas A&M University
reconstructions of the obstruction.
DIRECTOR FOR ACADEMIA We’ll illuminate the problem, you’ll
Dan Hill, Texas A&M University eliminate the problem. Better yet,
AT-LARGE DIRECTORS you’ll eliminate downtime and
Khaled Al-Buraik, Saudi Aramco increase profitability.
Liu Zhenwu, China National Petroleum Corporation
Contact us for a
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 PERFORMANCE INDICES

WORLD CRUDE OIL PRODUCTION1+‡ HENRY HUB GULF COAST NATURAL GAS SPOT PRICE‡

THOUSAND BOPD
6
O PEC 2015 JUL AUG SEP OCT
Algeria 1370 1370 1370 1370 5 USD/million Btu
Angola 1890 1910 1800 1810 4
Ecuador 538 537 539 538
3
Iran 3300 3300 3300 3300
Iraq 4375 4275 4425 4275 2
Kuwait* 2550 2550 2550 2550
1
Libya 400 360 375 415

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2016
JAN

FEB
Nigeria 2270 2320 2320 2370
Qatar 1537 1537 1537 1537
Saudi Arabia* 10290 10290 10190 10140
UAE 2820 2820 2820 2820 WORLD CRUDE OIL PRICES (USD/bbl)‡
Venezuela 2500 2500 2500 2500

TOTAL 33840 33769 33726 33625 2016

JUL AUG SEP OCT NOV DEC JAN FEB
Brent 56.56 46.52 47.62 48.43 44.27 38.01 30.70 32.18
THOUSAND BOPD WTI 50.90 42.87 45.48 46.22 42.44 37.19 31.68 30.32
NON-OPEC 2015 JUL AUG SEP OCT
Argentina 532 529 529 535
Australia 361 360 335 330 WORLD ROTARY RIG COUNT†
Azerbaijan 867 867 867 872
Brazil 2466 2547 2395 2406 2016
REGION AUG SEP OCT NOV DEC JAN FEB
Canada 3821 3912 3412 3581
US 883 848 791 760 714 654 532
China 4263 4278 4317 4259
Canada 206 183 184 178 160 192 211
Colombia 947 968 1009 1030
Latin America 319 321 294 284 270 243 237
Denmark 154 157 154 157
Europe 109 109 108 108 114 108 107
Egypt 524 511 510 509
Middle East 393 396 403 419 422 407 404
Eq. Guinea 250 250 250 250
Africa 96 96 93 90 91 94 88
Gabon 215 215 215 215
Asia Pacific 220 218 213 208 198 193 182
India 754 768 757 758

Indonesia 801 777 800 801 TOTAL 2226 2171 2086 2047 1969 1891 1761

Kazakhstan 1592 1593 1594 1595

Malaysia 599 591 652 619
WORLD OIL SUPPLY AND DEMAND2‡
Mexico 2308 2291 2306 2314
Norway 1611 1599 1581 1685 MILLION BOPD 2015
Oman 1001 990 985 980 Quarter 1st 2nd 3rd 4th
Russia 10200 10180 10150 10140
SUPPLY 94.60 95.50 96.38 96.44
Sudan 257 254 255 257
DEMAND 92.66 93.11 94.81 94.21
Syria 30 30 30 30
UK 838 788 862 912
USA 9433 9407 9460 9347
INDICES KEY
Vietnam 343 307 348 333 + Figures do not include NGLs and oil from nonconventional sources.
Yemen 22 22 22 22 * Includes approximately one-half of Neutral Zone production.

Other 2496 2479 2517 2509 1 Latest available data on www.eia.gov.

2 Includes crude oil, lease condensates, natural gas plant liquids, other hydrocarbons for refinery feedstocks,
Total 46685 46670 46312 46446 refinery gains, alcohol, and liquids produced from nonconventional sources.

Total World 80525 80439 80038 80071 † Source: Baker Hughes.

‡ Source: US Department of Energy/Energy Information Administration.

6 JPT • APRIL 2016

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 REGIONAL UPDATE
AFRICA
◗◗ Kosmos Energy has made a significant
deepwater gas discovery off Senegal.
The Guembeul-1 well in the northern part
of the St. Louis Offshore Profond license
in 8,858 ft of water encountered 331 net
ft of gas pay in two excellent-quality
reservoirs, the company reported. The
results demonstrate reservoir continuity
and static pressure communication with
the Tortue-1 well, which suggests a single
gas accumulation. The mean gross resource
estimate for the Greater Tortue complex
has risen to 17 Tcf from 14 Tcf as a result of
the Guembeul discovery, the company said.
Kosmos, the operator, has a 60% interest in
the well. Timis (30%) and Petrosen (10%)
hold the remaining interest.
◗◗ In Salah Gas has started production from
its Southern fields in Algeria. The project
is the latest in a program of developing
seven central-Algerian fields, which began
in 2004. The Southern fields comprise four
dry-gas fields: Gour Mahmoud, In Salah,
Garet el Befinat, and Hassi Moumene.
Drilling began in 2014 and will continue
through 2018 with a total of 26 wells
planned. Production is expected shortly
to reach 500 MMcf/D and eventually to
peak at 868 MMcf/D. In Salah is a joint
venture between partners Sonatrach (35%),
BP (33.15%), and Statoil (31.85%).
ASIA
◗◗ China National Offshore Oil Company
(CNOOC) has begun production from two
shallow-water oil projects in the Beibu Gulf
Basin of the South China Sea. The Weizhou
12-2 project includes the Weizhou 12-2 and
Weizhou 12-1 West fields and the north part
of the Weizhou 11-2 field. Production from
three platforms and 18 wells has reached
a designed peak level of 16,000 B/D. The
Weizhou 11-4 North project is producing
about 500 B/D from one well, but is set
to achieve peak production of 8,000 B/D
within a year as the remainder of its 15
producing wells, spread over two platforms,
come on line. CNOOC is the operator and
sole interest holder in both projects.
◗◗ OGDCL discovered oil and gas at the
Nashpa X-5 well in the Karak District of
Pakistan. Drilled to a 16,587-ft depth, the
8 JPT • APRIL 2016
well targeted the potential of the Shinawari,
Lumshiwal, Samanasuk, and Lokhart
formations. A test of the Lokhart formation
yielded 1,032 B/D of oil and 780 Mcf/D of
gas through a 32 /64-in. choke at a wellhead
flowing pressure of 600 psi. OGDCL is
the operator with a 56.45% stake in the
well, with the remaining stakes held by
Government Holdings (15%) and Pakistan
Petroleum (28.55%).
◗◗ Woodside Petroleum found gas at the
Thalin-1A exploratory well in deepwater
Block AD-7 in the Rakhine Basin off
Myanmar. The well, in 2,743 ft of water,
was drilled to a 9,954-ft total depth and
encountered a 210-ft gross gas column.
Interpretation of the results indicated 203 ft
of net gas pay in the primary target zone.
Woodside has a 40% interest in the block
and is responsible for deepwater drilling.
Daewoo, with a 60% interest, is responsible
for all other block-related operations.
AUSTRALIA/OCEANIA
◗◗ Bengal Energy announced that
hydraulic stimulation has successfully
been completed on wells in the ATP
752 Barta Block in the Cooper Basin of
Queensland, Australia. Four stimulated
wells placed back on production have
achieved an aggregate gross increase
of more than 200 B/D of oil. The fifth
stimulated well was slated to be tested.
The results have exceeded technical and
commercial expectations, the company
said. Bengal has a 30.36% working interest
in the block, which is operated by Santos.
EUROPE
◗◗ Statoil has made a minor natural gas
discovery at the 30/9-28 S wildcat well,
near the Oseberg field in the North Sea.
The well encountered a gas column of
about 65 ft, of which 32 ft were situated
in sandstone with good reservoir quality
in the Tarbert formation. The well also
encountered a 39-ft gas column in
the Statfjord group in sandstone with
moderate reservoir quality. The discovery
is preliminarily estimated to hold between
35 MMcf and 70 MMcf of recoverable oil
equivalents and will be considered for
development as part of the Oseberg Future
Phase 2 project.
MIDDLE EAST
◗◗ BP and Oman Oil Company will
expand an exploration and production
sharing agreement for the Khazzan
natural gas field to include a second
development phase, at an estimated
cost of USD 16 billion for the entire
project. The original 1,042-sq-mile
development area will be enlarged by
386.1 sq miles. The project will produce
1.5 Bcf/D of gas, or 40% of Oman’s
output. The new development requires
final approval of Oman’s government
and BP, which is expected next year. The
reservoir has tight gas, and extraction
will require techniques that include
hydraulic fracturing.
NORTH AMERICA
◗◗ Petróleos Mexicanos (Pemex) has
received approval from Mexico’s oil
regulator, the National Hydrocarbons
Commission, to drill two new deepwater
wells this year near the maritime border
with the United States. The planned
wells lie within the Gulf of Mexico’s
Perdido Fold Belt, which has been
very productive in adjacent US waters.
The Vasto-1001 well will be drilled to a
23,717-ft depth and is estimated to hold
203 million BOE of mostly light crude
oil. The Nobilis-1 well will be drilled to a
19,619-ft depth and is estimated to hold
161 million BOE of mostly superlight crude
oil. The Nobilis well is about 4 miles from
the Maximino-1 well, a highly promising
Pemex deepwater discovery.
SOUTH AMERICA
◗◗ Total has started production from the
Vega Pleyade gas and condensate field
offshore the Tierra del Fuego region of
Argentina. It is the world’s southern-most
gas development, the company said. The
project consists of a wellhead platform
in 164 ft of water, which is tied back to
the company-operated Rio Cullen and
Cañadon Alfa onshore treatment facilities.
Vega Pleyade has a production capacity
of 353 MMcf/D of gas (70,000 BOE/D).
Total is the operator with a 37.5% interest
in the project. Wintershall Energía (37.5%)
and Pan American Energy (25%) are the
other participants. JPT
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#RethinkReinventReimagine
 IMPROVING PEOPLE’S LIVES
Sustainability and the Role
of Petroleum Engineers
Nathan Meehan, 2016 SPE President
There are many definitions of sustainabil-
ity, but the 1987 United Nations Brundt-
land Commission’s remains a standard.
“Meeting the needs of today without
compromising the ability of future
generations to meet their own needs.”
(WCED 1987)
Some think oil and gas have little role in a sustainable future;
global realities suggest otherwise. How is it that a finite ener-
gy resource and a source of greenhouse gas emissions can be
part of a sustainable future? Oil and gas are essential to meet-
ing the “needs of today;” their prudent use is the safest way
to ensure we do not compromise the “ability of future genera-
tions to meet their own needs.”
The Society of Petroleum Engineers Board of Directors
adopted the following definition of sustainability in 2014:
“Exploration, development and production of
oil and gas resources provide affordable energy
that contributes significantly to well-being and
prosperity.
SPE encourages the responsible management
of these oil and gas resources and operations
including the appropriate management of social and
environmental impacts and their related risks.
SPE demonstrates this commitment by offering its
members opportunities to train, share knowledge
and advance practices for doing business in ways
that balance economic growth, social development,
and environmental protection to meet societal needs
today and in the future.” (SPE 2014)
Petrowiki also has an excellent discussion of sustainability
at http://petrowiki.org/Sustainability, including references to
noteworthy papers from www.OnePetro.org.
Safe, affordable energy is central to quality of life. It is
essential for farmers to be able to produce sufficient food; for
the transportation of this food to consumers; and for housing,
heating and cooling, clothing, and all other necessities of life.
Quality of life is strongly correlated to energy use.
To contact the SPE President, email president@spe.org.
10
Supplying energy for the world is a monumental task. There
continue to be improvements in renewable energy sources;
however, reasonable forecasts of growth in renewables sug-
gest fossil fuels will remain the primary source of the world’s
energy for decades to come. Only radical growth in nuclear
power could seriously diminish this result. The realities re-
flecting public concerns over nuclear safety and proliferation
of radioactive materials make such growth unlikely.
While coal resources are abundant, concerns over green-
house gas emissions and the possibilities of pricing carbon
through taxes, caps, exchanges or other mechanisms, and the
relatively low cost of natural gas, continue to make natural gas
a more attractive fuel. This is true whether you expect it to be a
relatively near-term “bridge fuel” to a renewable future or (as
I do) part of our longer-term energy solutions.
If oil and gas are to be part of a sustainable solution to our
energy needs, there are some things we can and should do bet-
ter as petroleum engineers.
Minimizing methane emissions. It is important to reduce or
eliminate leaks and incidental releases of methane since, on a
pound-for-pound basis, methane has a 25-times greater impact
on climate change than does CO2. Natural gas and petroleum
systems account for 29% of all US methane emissions. Domes-
tic livestock and associated manure management account for
36%. Landfills and coal mining combined account for anoth-
er 28%. In total, methane accounts for 10% of US greenhouse
gas emissions (EPA 2015a). Methane emissions associated with
natural gas and petroleum systems have declined significantly
from 1990. In spite of substantial increases in natural gas pro-
duction from 2005 and widespread growth of pipelines and
processing facilities, the decline in emissions has continued
(EPA 2015b). We must continue this progress and eliminate
fugitive emissions of methane associated with oil and gas pro-
duction, transportation, and processing. There will be a role
for drones and other technologies in improving monitoring
and early detection capabilities.
Reduce or eliminate flaring. Flaring should be infrequent,
temporary, and efficient. Technologies to make flaring high-
ly efficient are available and represent best current practices.
Long-term flaring of volumes of gas that cannot be (easily) sold
needs to be eliminated globally. This goal may require com-
mitments to gas reinjection, local use, local power generation,
JPT • APRIL 2016
local compressed natural gas manufacturing, or other innova-
tive solutions. Regulators need to set aggressive but technical-
ly achievable standards and timetables. Regulatory agencies
should focus on the largest problems first and use a balanced
approach. Operators need to develop fields with the goal of
eliminating flaring in mind. Unconventional (tight oil) opera-
tors in areas without low-pressure gathering systems will need
to develop many-well drilling pads enabling sufficient volumes
of natural gas to be used locally or otherwise exploited. In such
cases, gas represents a secondary product so regulatory and
taxing bodies should preferentially treat developments that
use semicommercial volumes of gas rather than flaring it.
Energy efficiency and conservation. We should support
energy efficiency measures. Such measures make most sense
when they have a reasonable economic benefit. The current
price environment makes it more difficult to justify such mea-
sures, whether they involve a homeowner installing addition-
al insulation or an airline purchasing more fuel-efficient air-
planes. Government subsidies for such efficiency-improve-
ment measures may make sense when widespread adoption of
a marginally commercial solution will lead to cost reductions
or significant improvements in the required technologies.
Conservation measures imply a change in consumer behav-
ior rather than just an improvement in efficiency. The current
product price environment is less likely to encourage conser-
vation efforts whether it is in transportation, recreation, or
other decisions. Government actions mandating conservation
efforts may be viewed as heavy-handed. The “carrot” approach
is more likely to achieve results than the “stick.”
Wellbore integrity. Wells completed with casing, liners, and
cement prevent migration of fluids from one zone to another.
Such integrity is vital to minimizing the likelihood that hydro-
carbons or salt water might migrate behind pipe and contami-
nate other formations. Casing collapse, casing leaks, and inad-
equate primary cementing or deterioration of cement must
be avoided and technologies implemented to ensure wellbore
integrity. Cement-job design including spacers, quality control
during implementation, and long-term monitoring ensure that
desired fluids are produced and all other fluids stay in place.
Advances in fiber-optic monitoring technology such as distrib-
uted acoustic sensing may be useful for monitoring critical wells.
Reducing surface footprint. When many wells need to be
drilled, drilling from a central wellpad or cluster reduces
surface footprint, minimizes transportation disruptions, and
allows produced or flowback water to be used more effectively.
It is also easier to operate and leads to shared use of production
facilities and commercial use of small volumes of gas. Many
individual unconventional wells are not commercial, even if
the combined results of all wells drilled is economic. Many
individual hydraulic fracture stages do not appear to contrib-
ute measurably to flow. Engineers must collaborate with earth
scientists, petrophysicists, geomechanics professionals, ser-
vice providers, and others to eliminate the need for unneces-
JPT • APRIL 2016
sary stages or wells. This will improve economic returns, lower
the demand for water, and minimize all other environmental
impacts of production.
Elimination of spills. Whether a surface spill during oilfield
operations or a catastrophic blowout, consistent planning, use
of best available technology, and flawless execution are keys
to eliminating spills. Eliminating small spills is good business.
Eliminating large spills may mean staying in business. Blowout
control eliminates spills and saves lives.
Optimized field development and management. An asset
team working on simulating reservoir performance and design-
ing an optimized plan may not think of their work as contrib-
uting to sustainability. But the reality is that almost everything
we do as petroleum engineers contributes to sustainability. Can
we recover the most barrels with fewer wells? Can we invert
the waterflood injection pattern and lower total fluid handling
requirements? Can our well monitoring plans identify dam-
aged wells early and allow them to operate at maximum effi-
ciency? As we drill, complete, equip, and produce wells more
efficiently, we are further contributing to sustainability. We
make it possible to meet the world’s needs today and improve
people’s lives by providing safe, affordable energy. The more
efficient we are the more affordable that energy becomes.
Many oil and gas companies voluntarily issue a sustainabil-
ity report (IPIECA 2015) and similar measures are in place
for service companies and others. The real measure of our
role in sustainability remains our individual commitment to
doing the right job and getting that job done right. As I travel
throughout the world, I am more convinced than ever that we
as an industry, and as SPE members in particular, are commit-
ted to improving today’s quality of life, but not at the expense
of the generations to come. JPT
For Further Reading
EPA. 2015a. Overview of Greenhouse Gases–Methane Emissions,
www3.epa.gov/climatechange/ghgemissions/gases/ch4.html
(accessed 28 December 2015).
EPA. 2015b. Inventory of Greenhouse US Gas Emissions and Sinks:
1990–2013, http://www3.epa.gov/climatechange/Downloads/
ghgemissions/US-GHG-Inventory-2015-Chapter-3-Energy.pdf
(accessed 28 December 2015).
IPIECA. 2015. Sustainability Reporting, http://www.ipieca.org/focus-
area/reporting (accessed 28 December 2015).
Mascarenhas, A.M. and Sutherland, J.J. 2015. What Is All This Talk
About Emissions? J Pet Technol. 67 (11): 23–25.
Rassenfoss, S. 2015. Pressure to Reduce Methane Emissions
Highlights the Need for Better Monitoring. J Pet Technol. 67 (3):
46–52.
SPE. 2014. Building a Better Professional, Industry, Community.
Society of Petroleum Engineers Annual Report, Richardson,
Texas, USA. http://www.spe.org/about/docs/14AnnualReport.pdf
(accessed 23 February 2016).
The World Commission on Environment and Development (WCED).
1987. Our Common Future. Oxford University Press.
11
 COMMENTS EDITORIAL COMMITTEE
Bernt Aadnøy, University of Stavanger
Syed Ali—Chairperson, Schlumberger
Tayfun Babadagli, University of Alberta

Surviving the Downturn

William Bailey, Schlumberger
Mike Berry, Mike Berry Consulting
Maria Capello, Kuwait Oil Company
John Donnelly, JPT Editor
Simon Chipperfield, Santos
Nicholas Clem, Baker Hughes
Alex Crabtree, Hess Corporation
The recent IHS CERAWeek conference in Houston brought Gunnar DeBruijn, Schlumberger
together high-level executives from international oil com- Mark Egan, WesternGeco
panies, national oil companies, major independents, the ser-
Mark Elkins, ConocoPhillips
vice sector, and government. Over 5 days of discussions and
Alexandre Emerick,
panel sessions, several key themes emerged about the current Petrobras Research Center
state of the global oil and gas industry. Niall Fleming, Statoil
Oil prices eventually will rebound and, although when is
Ted Frankiewicz, SPEC Services
pretty much a guessing game, the consensus is that the interim
Stephen Goodyear, Shell
will continue to be painful throughout the industry. Independents are worried about
Omer M. Gurpinar, Schlumberger
cash flow and are trying to hold on until the rebound occurs. Those firms are cur-
rently in “hunker down mode” trying to preserve cash, said David Hager, president A.G. Guzman-Garcia, Retired

and chief executive officer of Devon Energy. But the oil resources are still there wait- Greg Horton, Consultant
ing to be exploited if independents can “stay alive for another day.” John Hudson, Shell
The International Energy Agency (IEA) released its latest market outlook at the Morten Iversen, Karachaganak Petroleum
conference, predicting that prices had bottomed out and would begin to rise as cuts Leonard Kalfayan, Hess Corporation
in investment and production work to reduce the global supply glut. That could be Tom Kelly, FMC Technologies
later this year, next year, or even 2018 depending on how resilient US producers are. Thomas Knode, Statoil
Once oil prices reach USD 40–50/bbl, tight oil production may ramp up again and
Sunil Kokal, Saudi Aramco
that level could also trigger merger and acquisition activity. Although there is talk
Marc Kuck, Eni US Operating
among major producers about a supply “freeze,” such a move would only keep output
Jesse C. Lee, Schlumberger
at near-record levels, and Saudi Oil Minister Ali Al-Naimi made it clear that OPEC
producers will not cut output. Silviu Livescu, Baker Hughes

Shale is not going away. Despite Saudi Arabia’s efforts to push out “high-cost pro- Shouxiang (Mark) Ma, Saudi Aramco
ducers,” unconventional resources once again will be exploited when prices rise. John Macpherson, Baker Hughes
Producers in the US have become more and more efficient and production has Casey McDonough, American Energy Partners
been slower to fall than expected. “Anyone who believes that the US revolution has Stephane Menand, DrillScan
stalled should think again,” said Neil Atkinson, the head of the IEA’s Oil Industry Badrul H Mohamed Jan, University of Malaya
and Markets Division. But there will be a significant decline in shale oil production Lee Morgenthaler, Retired
through this year that will help rebalance the market, particularly as world demand
Michael L. Payne, BP plc
continues to grow at an estimated 1 million B/D clip. Whether shale oil is a “short
Zillur Rahim, Saudi Aramco
cycle” or “swing” producer, the resources in North America are enormous, and the
Martin Rylance, BP GWO Completions
learnings there will spread to other regions. Argentina’s shale play appears particu- Engineering
larly promising. “I don’t know how we will live together,” said OPEC Secretary Gen-
Otto L. Santos, Petrobras
eral Abdalla Salem El-Badri. “Any reduction in production will be met by an increase
Luigi A. Saputelli, Hess Corporation
in shale oil.”
Sally A. Thomas, ConocoPhillips
But ramping up shale production after this downturn might not be that easy.
Increasing shale output “will be more like turning around an aircraft carrier than Win Thornton, BP plc

a speedboat,” according to Hager. That means the breadth and depth of cuts in Xiuli Wang, Baker Hughes
capital spending and production could lead to a supply shortage in coming years, Mike Weatherl, Well Integrity, LLC
which could cause oil prices to spike sharply again, continuing the tumultuous up Rodney Wetzel, Chevron ETC
and down cycle. In addition, the industry could find itself short of technical talent Scott Wilson, Ryder Scott Company
again, as both producers and service companies have laid off thousands of staff over Jonathan Wylde, Clariant Oil Services
the past year. JPT Pat York, Weatherford International

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

12 JPT • APRIL 2016

 GUEST EDITORIAL

Changing How We Manage HSE:

Getting to Zero
Jack Hinton, Vice President, Health, Safety, and Environment, Baker Hughes

For the more than 7 billion people on requirements. It was governed by, and ties in which we work, and to the future
our planet, every measure of quality managed in reaction to, rules and reg- of our planet.
of life, from gross domestic product ulations. Control and discipline were 2. It is good for business. There is no
per capita and infant mortality, to prevalent. An incident-free workplace downside to good HSE practices. Con-
education levels and access to clean was generally not considered possible, versely, the cost of poor practices can
water, is correlated to the consump- and when it was considered, it was only drive companies out of business.
tion of modern fuels, including oil and as a vision, at best. In 2009, a 3-day SPE Forum Series
gas. Now more than ever, our indus- Over time, industry HSE culture began titled “Getting to Zero–An Incident-Free
try faces imperatives: delivering afford- to shift from dependent to indepen- Workplace: How Do We Get There?” was
able energy more safely, economically, dent as the process and complexity of envisioned in Park City, Utah, and held
and sustainably—that is, in a way that operations became better understood, there the following year. The series her-
responsibly meets the needs of today’s and commitment to safety became more alded a new paradigm shift, in which
populations without jeopardizing the personal and individual. An incident- an incident-free workplace became an
Earth or its future populations. Sus- free workplace began to be seen as a expectation. The December 2015 JPT
tainability will depend on continuing possibility, but still as a target to achieve column by 2016 SPE President Nathan
to close gaps, not only in technolo- rather than a realistic goal. Meehan, “The Perfect Day,” explains
gy, but also in health, safety, and envi- A further evolution from an indepen- the concept of “Getting to Zero” and
ronmental (HSE) performance, to dent to an interdependent safety culture describes the journey thus far.
eradicate HSE incidents from our oper- took place over the first decade of the Coincidentally, 2009 was the year
ations. The expectation is a future with 21st century, with a stronger focus on when Baker Hughes made the decision
an incident-free workplace and where cooperation within and across teams. to reorganize from a number of com-
everyone returns home safely each day. Employees and well and asset team panies made up of product lines and
Closing the HSE gap will require major members began to see themselves as services to a single company with an
shifts in cultural, organizational, and their peers’ keepers. HSE became recog- interdependent culture. This decision
human performance paradigms. nized as “the right thing to do” for two redefined who we were and how we
very important reasons. did business, including how we man-
Changing the Culture 1. It is part of our moral and ethical age HSE. With safety as much our pur-
For years, HSE was seen as a regula- responsibility to our employees, cus- pose as energy, we made it integral to
tory obligation to meet government tomers, contractors, and the communi- the company and outlined a business
framework for it, as we did for other
key aspects of the business. We were
Jack Hinton, SPE, is vice president of health, safety, and no longer content with incremental
environment for Baker Hughes. Before joining Baker Hughes in HSE improvement, and getting to zero
2005, he was dean and professor at the Kazakhstan Institute of became a reflection of who we were. The
Management, Economics, and Strategic Research for 2 years. He perfect HSE Day became the embodi-
previously spent 26 years at Texaco serving in leadership roles
ment of our definition of zero and all
that included director of environment, health, and safety, and vice
that was necessary to achieve it: team-
president of international petroleum.
Hinton sits on the Management Committee of the International work, engaged and visible leadership,
Association of Oil and Gas Producers, is a member of the Kazakh-British Technical willingness to change, trust, a culture of
University Business School Advisory Board, and serves as chairman of the Board of perfection, a common HSE vocabulary,
Advisors for the Southwest Center for Occupational and Environmental Health. and a single, universal metric: zero. No
Hinton holds a doctorate degree in occupational health and an MS degree in longer would employees need to under-
environmental science, both from the University of Texas. Hinton also received a BS stand HSE acronyms, jargon, or incident
degree in biology and chemistry from Trevecca Nazarene University. rates. Instead, we defined the perfect

14 JPT • APRIL 2016

HSE day as one in which everyone in the
company arrives home safely, with no
recordable injuries, no serious motor
vehicle accidents, and no significant
environmental spills. Success became
easy to track. Either a day was HSE-
perfect, or it was not. Each day became
a new opportunity to achieve zero, and
every employee could see how his or
her actions affected company outcomes.
Zero was no longer a vision or target, but
an expectation.
The most powerful aspect of the per-
fect HSE day is the way it has engaged
everyone in our company to think about
HSE differently. It has catalyzed a cul-
ture shift and, in so doing, has produced
remarkable results. In 2012, the year
we began tracking perfect HSE days,
we recorded 22. The number jumped
to 42 the following year, then soared to
92 in 2014—the equivalent of a perfect
quarter. Last year, we recorded 146 per-
fect HSE days. Already this year, we are
achieving them at a pace that will place
us well over 200 by year end. While this
is remarkable, we have more room for
improvement, both within our company
and throughout the industry.
Drilling Through Data
A recent operator/supplier forum
addressed the important question,
“What can we do differently to prevent
serious and sometimes catastrophic
HSE incidents from happening?” The
answer lies in two seemingly differ-
ent but highly interrelated and inter-
dependent realms: data science and
human factors.
Data science unlocks hidden pat-
terns in typically available information.
For years, our industry’s technological
advances in capturing and using data
have enabled us to find and develop
hydrocarbons to meet the world’s ener-
gy demand. Now we are beginning to
leverage data science to better exploit
previously untapped revelations from
safety and incident data. Our company
uses data drilling to leverage concepts
and techniques behind “big data” to
enable us to reveal previously unseen
personal and process-safety-related
trends in existing safety-incident data
JPT • APRIL 2016
for “near-miss” incidents—where an
event occurs but injuries or fatalities
are avoided—and for incidents where
harm was caused. The data come from
a variety of sources both inside and
outside traditional safety-related data-
bases, and helps us to more clear-
ly understand the root cause of inci-
dents, which precipitates more accurate
intervention strategies and effective
risk management.
What Lies Beneath
Preventing serious and catastrophic
HSE incidents depends not so much in
understanding how an incident occurs,
as to why it occurs—because when we
understand why something happens,
we can take action to prevent it. This
requires going beyond the industry view
of seeing “why” as outputs of tradition-
al root-cause tools such as TapRooT,
ThinkReliability, 5-Why, and others. Too
often, we use these tools to focus on
who is responsible, what went wrong,
and what people failed to do, assum-
ing that human actions are the cause
of incidents.
To more clearly answer the question
of why, we must assume that human
actions are influenced by systemic
issues. Taking this approach causes us
to dig deeper into the systems and pro-
cesses of an organization, the influence
of leaders, what we say and do, what we
measure and what we do not, the culture
of the organization, and how these fac-
tors influence employees.
To this end, we developed “What
Lies Beneath,” a thought-provoking,
interactive learning session based on
a hypothetical, industry-stereotypical,
dropped-object incident. While the
exercise uses a dropped-object incident,
the underlying learning outcomes can
apply to prevent any type of incident.
The session challenges tradition-
al thinking and allows participants to
explore a different perspective on why
something happened or could happen.
It illustrates how human and organiza-
tional factors influence employee deci-
sions and actions. It allows us to put our-
selves at different stages of a workflow
and ask ourselves, “What weaknesses
do I see? What could lead employees to
make poor decisions? What organiza-
tional factors are influencing the actions
and decisions of the employees?” This
approach does not absolve accountabil-
ity of employees. Instead, it enables us
to look beyond personal accountability
and punishment, to identify and resolve
the deeper systemic issues that contrib-
ute to poor decision making and, ulti-
mately, HSE incidents.
HSE incidents are not just about the
person, the equipment, and what hap-
pened at the rig or the facility. The issues
go deeper—to gaps in processes and
communication, and to the culture and
thinking of the organization that lie
beneath an incident. Looking at what
lies beneath is not just a forensic tool
to analyze why things happened; it also
can help us proactively evaluate our pro-
cesses, workflow, and culture, not only
around HSE, but also around every other
aspect of the business. It answers the
why of executing—or not executing—
work flawlessly. To provide new insights
and support collective industry efforts
in getting to zero, our company is mak-
ing its “What Lies Beneath?” materials
freely available to the industry, at www.
bakerhughes.com/WhatLiesBeneath.
Our industry has made great strides in
the way we manage HSE. Zero—an inci-
dent-free workplace—has evolved from
a vision to a target to an expectation.
Meeting that expectation will require
maintaining the momentum. We are still
working to align priorities, better devel-
op a common HSE language, and enable a
more widespread mindset that achieving
a future with zero incidents is possible.
We must continue to evolve our culture so
everyone across the industry is empow-
ered and responsible to make the right
decision each and every time, and is sup-
ported by the organization and systems
to be error free. And, we must do this in
the face of ever-changing market condi-
tions that can form a barrier to HSE com-
mitment and making the best decisions.
Changing how we manage HSE is
the next frontier for our industry. How
we go about that change will shape the
industry and the world it serves far into
the future. JPT
15
 BEYOND THE HEADLINES

Fugitive Gas and Flaring:

Current and Future Realities
Vikram Rao, Executive Director, Research Triangle Energy Consortium

Are fugitive releases of natural gas and verified, most recently by an ongoing with the belief that methane is about
flaring environmental concerns? Can study by Allen et al. in a 2013 report 25 times more potent than CO2. The
these be ameliorated today and even in the Proceedings of the Nation- accompanying sidebar gives the science
better in the future? Yes and yes. al Academy of Sciences. This Environ- behind the calculation and explains
A paper in 2011 by Howarth et al. sug- mental Defense Fund-sponsored study why some believe it to be 72 times
gested that fugitive methane emissions reports that 0.42% of “the emissions more potent.
(releases directly to the atmosphere) are released” at the production site. The oil and gas industry continues to
from shale gas production amounted The study is ongoing and more clar- take steps to minimize methane release.
to 3.6% to 7.9% of all gas recovered ity is needed, especially regarding the Methane in the water flowing back from
and that those numbers were worse locations and amounts of the releases. the well is usually separated, so collec-
than coal. The authors took the com- Since this and other studies were almost tion is not an issue. If a pipeline is avail-
parison of greenhouse gas emissions a direct consequence of the Howarth able, it is utilized. In the early days of
to the precombustion stage. Since the paper, much good came of that despite a prospect there may not be an export
dominant use of coal is for electricity the justifiably disputed elements of the line. In these cases, at the very least, the
production, post-combustion compar- original work. gas ought to be flared, thus reducing the
isons are merited. In so doing, natu- The principal reason for environ- potency of the released gas.
ral gas is favored because power plants mental concern about releases of meth- The inadvertent release of methane
using natural gas are up to about 50% ane is that it is a more powerful green- can come from hatches, gaskets, and the
more efficient on conversion than house gas than carbon dioxide (CO2). like that are not properly sealing. Also,
coal plants. The potency numbers are somewhat in in the distribution system, some valve
Many of these original assumptions dispute and the general public may be systems operate using natural gas as the
have been challenged and the data confused. There is general agreement actuating fluid, and some release occurs
each time they are operated. Alternative
valve mechanisms are available, using
Vikram Rao, SPE, is executive director of the Research Triangle compressed air, for example. Leaks are
Energy Consortium (www.rtec-rtp.org), a nonprofit organization currently measured using infrared cam-
founded by Duke University, North Carolina State University, RTI
eras. The ARPA-E Methane Observation
International, and the University of North Carolina at Chapel Hill.
Its mission is to illuminate national energy priorities, and those of
Networks with Innovative Technology
the world, and to catalyze research to address these priorities. to Obtain Reductions (MONITOR) pro-
Rao also advises the nonprofit RTI International, venture gram is uniquely targeting innovative
capitalist Energy Ventures, and firms BioLargo, Global Energy means for identifying methane leaks on
Talent, Biota Technology, and Eastman Chemicals. He retired as senior vice president the rigsite from a variety of sources. All
and chief technology officer of Halliburton in 2008 and followed his wife to Chapel of the foregoing ought to underline the
Hill, North Carolina, where she is on the University of North Carolina faculty. Later that fact that the industry is now fully aware
year he took his current position. He also is past chairman of the North Carolina Mining of the issue and is getting its collective
and Energy Commission. arms around solving the matter. Solu-
Rao’s book Shale Gas: the Promise and the Peril was released in 2012 by RTI Press tions are in the economic interests of
and can be found at www.rti.org/shalegasbook. It is written for general audiences and
the operators: gas that leaks away is gas
is intended to inform the debate about on fracturing for shale gas. The revised edition
with six new chapters and extensive revision was released in August 2015 (www.rti.
that does not get sold.
org/shaleoilandgas).
Rao holds a bachelor’s degree in engineering from the Indian Institute of Technology Flaring of Associated Gas
in Madras, India, along with a master’s degree and a doctorate in materials science and When oil is produced, there usually is
engineering from Stanford University. He is the author of more than 30 publications natural gas associated with it. This is
and has been awarded 40 US patents and foreign analogs. because all oil was formed from the

16 JPT • APRIL 2016

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 could be a matter of timing; the pipe-
lines are slow to arrive. In many cases
Global Warming Potential of Methane the volumes are too low to support
The mechanism by which methane warms the Earth is similar to that of export lines. In any case, the world
CO2. Infrared radiation attempting to escape into space is absorbed, and today flares in the vicinity of 5 Tcf/year.
thus causes the net warming of the Earth. North Dakota today flares about a third
If equal parts by weight of methane and CO2 are released over a 20-year of the associated gas, which amounts
period, the methane will be 72 times more effective in absorbing the to about 0.13 Tcf/year. Even at today’s
infrared radiation than CO2. After a dozen years or so, the methane will depressed gas prices, that amounts to
have reacted with hydroxyl radicals in the atmosphere to produce CO2 more than USD 350 million in economic
and water. This residual CO2 continues to absorb the radiation but at lower loss, not to mention the environmental
rates than the original methane. impact of the CO2.
But over 100 years, that 72 multiplier figure drops to about 25 because
in the later years almost all of the effect is due to the relatively more Monetizing Low Volume
benign CO2. The time frame for the comparison is, therefore, critical. The Associated Gas
current consensus among scientists is to lean toward the 100-year figure. There is a truism in chemical process-
This is the figure used by the Intergovernmental Panel on Climate Change. ing: Size matters. Bigger is better for
the economies of scale. Consequently,
conventional processes fail to address
the unique needs of low volume natural
action of pressure and temperature on ecules like propane and butane. These gas to be converted to something mov-
organic matter a couple of hundred are known as natural gas liquids (NGLs). able and saleable. So, how low are these
million years ago. The early immature Much of the shale gas production has volumes involved? To estimate this we
form of this matter is known as kero- this associated liquid. When it sub- investigated the distribution of flared
gen. Continued thermal maturation con- stantially does not, because of a high gas in North Dakota and the results are
verts it first to oil and finally to gas. state of thermal maturity, it is known shown in Fig. 1.
At any given time if oil is the predomi- as “dry” gas. The Haynesville is one Of note is that the majority of flared
nant fluid, chances are some part of it such play. gas is from pads producing as little as
matured all the way to gas. This, then, Associated gas is often economically less than 50 Mcf/D (50,000 cubic feet
is the “associated gas.” The proportions or logistically stranded. Gas pipelines per day) to 200 Mcf/D. An ARPA-E fund-
are greater when the oil is light, as in may not exist because of the low flow ed project (2012) is in development to
the case of shale oil. Incidentally, the volumes forecast or the sheer distance. target feeds of 50–300 Mcf/D to con-
same holds if the predominant fluid is In the latter category are offshore plat- vert the associated gas to methanol.
gas. Some fraction could be relative- forms, especially off the west coast of The process is designed to all be housed
ly immature, with oil-like larger mol- Africa. In areas such as the Bakken, it on two flatbed trucks. This will allow
the unit to be moved to different loca-
Distribution of ND Well Pads by Flaring Rate tions. This and similar developments
(only includes wells pads flaring >10%) (World Bank 2014) could also service
other stranded gas sources such as those
3,000
described earlier at shale gas produc-
2,431
2,500 tion locations. Any new processes must
Number of Sites

take into consideration the fact that the

2,000 associated gas is not pure methane. It
1,500
will typically have ethane, propane, and
butane to several percent. Even flar-
1,000 ing equipment has to be adjusted to
651
ensure complete combustion of these
500 328
181 111 77
174 diverse gases.
73 33 17 12
0 Two other recent developments could
target this opportunity. One is efficient
0

00
0

00

50

00

0
25

30

60

90

20

50
<5

–1

–1

–2

,5

compression of the gas to where the

0–

0–

0–

0–

1,

1,

>1
0

0–

0–
10

10

15

20

25

30

60

compressed gas can be transported

90

20
1,

Thousand scf/D to a central location for processing or

transmittal. Another is known as mini-
Fig. 1—Distribution of flared gas in North Dakota by well pad. Courtesy of RTI liquefied natural gas (LNG) in which
International. the gas is liquefied and then transport-

18 JPT • APRIL 2016

ed. Here, too, the technological advance is that conventional
LNG plants are up to 100 times larger than these units. This
class of solutions is sometimes collectively referred to as vir-
tual pipelines.

Other Manmade Sources of Methane

Farm animals classified as ruminants are large sources of
methane. In the US, this source is estimated to account for
emissions on the same scale as from the oil and gas industry.
Cattle in particular are the largest single source. The grass
they eat is inefficiently converted to useful energy in the ani-
mal. Some of it reacts with resident bacteria to yield methane.
This is expelled from both ends of the animal: flatulence as
well as burping. The most promising avenue for amelioration
is diet modification such as the addition of lipids to the feed
(Martin et al. 2007). Similar to the motivation of oil and gas
operators to use the fugitive gas, here too the farmer would
benefit because more of the feed would go to make meat or
milk. However, the remedies proposed above for the oil indus-
try will not easily apply here.
The third-largest source of fugitive methane is landfills
together with animal waste impoundments such as swine
lagoons. These are fairly well-suited to utilize the small foot-
print, gas-conversion technologies mentioned earlier. This
gas source will not have the larger molecules such as propane.
But it may have contaminants such as CO2 and possibly sulfur-
bearing gases. The processes would have to account for these.
This is technically feasible.
In summation, emissions of manmade greenhouse gases,
in particular fugitive methane and CO2 from gas flaring,
are environmental concerns. Active steps are currently
being taken to ameliorate the effects. Ongoing innovation in
this space is likely to yield significant results and ought to
be encouraged. JPT

References
1. Howarth, R.W., Santoro, R., and Ingraffea, A. 2011. Methane
and the Greenhouse-Gas Footprint of Natural Gas From Shale
Formation. Climatic Change, http://www.acsf.cornell.edu/Assets/
ACSF/docs/attachments/Howarth-EtAl-2011.pdf, (retrieved
14 March 2012).
2. Allen, D.T., Torres V.M., Thomas, J. et al. 2013. Measurements of
Methane Emissions at Natural Gas Production Sites in the United
States, PNAS, 110 (44): 17768–17773.
3. ARPA-E. 2012. Compact Inexpensive Reformers for Natural Gas
(28 November 2012), http://arpa-e.energy.gov/?q=slick-sheet-
project/compact-inexpensive-reformers-natural-gas (accessed
30 January 2016).
4. World Bank. 2014. Associated Gas Monetization via Mini GTL:
Conversion of Flared Gas Into Liquid Fuels and Chemicals,
April 2014 Update.
5. Martin C., Ferlay A., Chilliard Y., et al. 2007. Rumen
Methanogenesis of Dairy Cows in Response to Increasing Levels
of Dietary Extruded Linseeds. 2nd International Symposium
on Energy and Protein Metabolism and Nutrition, Vichy,
France, 9–13 September.

JPT • APRIL 2016

 TECHNOLOGY APPLICATIONS
Chris Carpenter, JPT Technology Editor
Wellhead Outlet
AnTech launched three new products
within its Wellhead Outlet (WHO) range.
The Type C Wellhead Outlet, which was
designed and developed by the company
for use in hazardous environments, fea-
tures safe and simple installation, cre-
ated in compliance with a broad range of
professional standards (Fig. 1). AnTech
has launched three further outlets based
upon the Type C, including Types CB,
CC, and CD. Each adaptation has been
designed to suit various working environ-
ments, including pressure ranging from
5,000 to 15,000 psi, temperatures from
-60°C to 160°C, and various voltages.
Wellhead Outlets Type CB and CC are
focused on lower-cost applications where
a high level of specification is required.
The Type CD wellhead outlet has been
designed accredited with the Type 1, Divi-
sion 1 certification, allowing it to operate
safely in some of the world’s most strin-
gent wellsite environments, including the
Gulf of Mexico. Because the company’s
wellhead-outlet products require mini-
mal connections, they are a safe and effi-
cient alternative to multiple connectors.
The Type-C range brings substantial cost
benefits to clients at a time when opera-
tors must reduce expenditure.
◗◗For additional information, visit
www.antech.co.uk.
Straddle-Packer System
Baker Hughes introduced its OptiStriker
straddle-packer system, which enables
Fig. 1—AnTech’s Type C Wellhead Outlet.
20
aggressive, targeted restimulation of
individual perforation clusters in exist-
ing wells to boost production efficient-
ly and effectively. The system features a
large inner diameter and two rugged and
resettable coiled-tubing packers, offer-
ing a pump rate of 20 bbl/min and a
differential-pressure rating of 10,000 psi
to enable high-rate, high-volume treat-
ments that optimize well restimulations
and maximize production. During cased-
hole operations, the two packers work in
unison to straddle and isolate individual
clusters within the wellbore. This ensures
that fluids are directed to areas that may
have been untreated or undertreated
during the initial stimulation. After the
packers are set in the wellbore, a con-
trolled volume of fluid and proppant can
be pumped through the coiled tubing or
workover tubulars and delivered to the
desired areas. This targeted-stimulation
technique uses only the amount of fluid
and horsepower needed to treat each
cluster, minimizing operational require-
ments and reducing costs by more than
30% compared with other restimula-
tion techniques, while maximizing the
speed and effectiveness of treatments.
Fluids may enter the formation through
the original perforations, or additional
perforations can be created with the sys-
tem’s sand-jet perforator, eliminating the
need for a dedicated tubing-conveyed-
perforating run.
◗◗For additional information, visit
www.bakerhughes.com.
Fig. 2—Harding’s FF1200 free-fall lifeboat.
Free-Fall-Lifeboat System
Harding has been awarded contracts
for nine FF1200 free-fall-lifeboat sys-
tems complete with davits on the Heer-
ema Offshore Services semisubmersible
crane vessel Sleipnir. The vessels will
be built by Sembcorp Marine at its flag-
ship Tuas Boulevard Yard in Singapore.
The FF1200 is a 70-person free-fall life-
boat designed to Det Norske Veritas OS
E-406 standards, the most stringent in
the industry, exceeding Safety of Life at
Sea rules for free-fall lifeboats (Fig. 2).
The boats will be perfectly matched with
their LA1200H and LA1200HO skid-
launch davits especially designed for
the FF1200. The FF1200 features supe-
rior space and comfort based on 100-kg/
person estimates. Seats with five-point
seat belts provide safety and comfort,
while the FF1200’s structural design
gives the lifeboat maximum strength.
In May of 2013, the FF1200S set a
world record when it was successfully
launched from 65 m. The lifeboat also
exhibits significant positive headway
and minimum accelerations (g-forces) in
extreme conditions and makes use of a
high-powered engine.
◗◗For additional information, visit
www.harding.no.
Completions-
Evaluation Services
MicroSeismic introduced a series of
completions-evaluation services to quan-
tify and predict reservoir drainage and
JPT • APRIL 2016
 Manara
PRODUCTION AND RESERVOIR
MANAGEMENT SYSTEM

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With patented inductive coupler technology that provides power and telemetry, the Manara* production and reservoir
management system can be deployed in conventional or extended-reach wells, in two or more sections, or across any
number of lateral junctions—all with a single control line. Using the Manara system to monitor and control previously
unattainable zones, operators can now immediately identify problematic areas, pinpoint the cause, and make the
necessary adjustments to maintain the well at optimal production.

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 production. These new services advance
completions evaluation for uncon-
ventional wells beyond the common-
ly used modeling approach to a new
observation-based approach. The newly
developed analysis methods use obser-
vations taken directly from the reser-
voir, capturing the effects from hydrau-
lic fracturing, providing more-accurate
specific estimates of future incremental
production and estimated ultimate recov-
ery (EUR). These services help operators
develop entire fields better by predicting
accurate per-well and per-stage perfor-
mance just weeks after completion. The
first of the services is PIndex, an estimate
of the well’s relative productivity. It shows
a direct comparison of well productivity
and identifies differences between wells,
providing immediate feedback to adjust
overall completion strategies. The sec-
ond service, DIndex, quantifies the well’s
current and future reservoir drainage
volume and drainage pattern. The result
is a map of future incremental reser-
voir depletion, showing when drawdown
pressures from adjacent wells will inter-
act with each other. Finally, Production
Forecast is a service that predicts each
well’s future incremental production and
EUR after the well is completed. Because
the Production Forecast is based on the
post-treatment reservoir, it has been far
more accurate than other common statis-
tical methods for predicting production.
◗◗For additional information, visit
www.microseismic.com.
Microleak-Detection Solution
READ Cased Hole introduced a micro-
leak-detection solution to help maxi-
mize operational safety and minimize
downtime by delivering fast and reliable
answers for well-integrity-management
decisions. The diagnostic solution com-
bines GE Oil & Gas’ NTO Acoustic Noise
Tool and READ’s Micro-Leak Detec-
tion service line. The solution creates a
detailed map of downhole acoustic ener-
gy, which, when combined with mea-
surements from flowmeters and fast-
response temperature sensors, enables
precision location of leak sites, identifi-
cation of active flow pathways, and deter-
mination of the sources of flow energy.
READ’s specially developed Micro-Leak
22
Fig. 3—The WDCL safety-valve
system from Weatherford.
Detection software segregates the
acquired acoustic data according to the
frequency of the captured sound ener-
gy, enabling spectral analyses of the data
and accurate diagnosis of unwanted flow
events associated with well-integrity
issues. READ’s in-house expert analysts
worked extensively on the microleak-
detection technology, focusing on data-
processing and -visualization software
development and investing more than
a year into field trials. As a result of the
accuracy of the derived information and
speed of response provided by the ser-
vice, operators gain the factual, to-the-
minute intelligence they need in order
to optimize their remediation strategies.
◗◗For additional information, visit
www.readcasedhole.com.
Damaged-Control-Line
Safety-Valve System
The Weatherford damaged-control-line
(WDCL) safety-valve system, part of the
Renaissance system of safety valves,
enables operators to replace damaged
control lines and install new surface-
controlled subsurface safety valves
(SSSVs), thereby restoring operation of
the well. In the past, the only ways to
restore damaged control lines were to
use a storm choke or to kill the well and
pull tubing, which can significantly dam-
age the formation. The WDCL system
offers a safer, more-cost-effective alter-
native. The system consists of the Ren
Gate wellhead-penetration conversion
kit, a control-line hanger, a control-line
stinger, and a wireline-retrievable SSSV
(Fig. 3). Because the WDCL system is
deployed by standard wireline and cap-
illary string units, without the need for
any mechanical devices, it results in less
downtime compared with tubing work-
over operations. In an offshore well in
Indonesia, the WDCL system successful-
ly replaced a blocked control line and
installed a new SSSV, maintaining the
original production rate of 2.6 MMscf/D
and eliminating the need for a workover.
Fig. 4—Victaulic’s Series 713 swing-
check valve.
The WDCL system fits into any size safety
valve from 2⅞ in. through 7 in. New safe-
ty valves are sized to match the produc-
tion tubing.
◗◗For additional information, visit
www.weatherford.com.
Swing-Check Valve
Victaulic has extended the size range
of its Series 713 swing-check valve to
include 2- to 4-in. sizes. The addition-
al sizes enable the grooved-end check
valve to be used on a wider range of
high-pressure piping systems, offering
operators quick, simple installation and
maintenance. The Victaulic Series 713
swing-check valve offers higher work-
ing pressures than previous designs, for
greater versatility (Fig. 4). Designed for
headers that feed upstream facilities as
well as other high-pressure services, the
valve can be used in applications requir-
ing Class 300 pressure ratings. The 2-in.
valve is rated to 1,000 psi, while the 2½-,
3-, and 4-in. sizes are rated to 750  psi.
Featuring grooved ends, the Series 713
swing-check valve is joined by use of Vic-
taulic couplings, enabling quicker and
easier installation and maintenance than
flanged valves. The valve can be joined to
pipe with the Victaulic Original Groove
System or EndSeal grooved ends. The
valve is designed for use in horizontal
installations and can be coated for use in
corrosive services. JPT
◗◗For additional information, visit
www.victaulic.com/ogc.
JPT • APRIL 2016
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 TECHNOLOGY UPDATE

New Perforating Gun System

Increases Safety and Efficiency
Warren Salt, SPE, and Ned Galka, SPE, DynaEnergetics, and John Segura, SPE, Weatherford

Achieving greater efficiency in perforation and arming can be conducted in ed Practice 67 (API RP 67). One of the
systems can help lower operating costs, less time and in parallel with other established best practices is to suspend
particularly when completing long hori- operations. The design eliminates all surface operations while working with
zontal wellbores in unconventional plays. the need to hold the gun system the resistorized detonators. The arming
The DynaStage perforating system, at shallow subsurface depth and connection of a gun string at the sur-
developed by DynaEnergetics, incorpo- during simultaneous operations. face can take up to an hour, meaning that
rates new technology in the addressable Both factors reduce wait times no other wellsite operations can be com-
firing system and an improved mechan- at the wellsite. pleted during this time.
ical design that eliminates potential ◗ Reliability—the design of The DynaStage system removes the
human error. The system can operate the electronic system and risks of this process by providing an
more efficiently than traditional systems simplification of the mechanical addressable and radio frequency (RF)-
and, with its additional safety features, field assembly process help to safe system with immunity to high
allow other wellsite operations to run in reduce the number of misruns, voltage and current levels. The firing
parallel with the perforation process. which increases efficiency and system is built on a low-voltage, digi-
As a result, the system can achieve lowers the cost of completions. tal communication platform that uses
improvements in perforation quality and the DynaEnergetics detonator technol-
performance reliability, with fewer mis- Surface Assembly ogy, proven to successfully communi-
runs, while operating efficiently enough Perforating operations with explosives cate and initiate on command during
to lower total completion costs. The place the explosive components and more than 300,000 perforating opera-
DynaStage system has successfully com- workers in close proximity, especially tions, without a safety incident. This
pleted field trials in multiple basins and during the arming process. Traditional technology enables the verification of all
been commercialized. resistorized detonators can contribute to components in the system, including the
The system targets two areas to im- an increased risk of injury and destruc- addressable switch, the RF-safe detona-
prove operational efficiency and reduce tion when connecting the detonator to tor, and the RF-safe ignitor, during all
operating cost. the gun string and the wireline truck. phases of the operation.
◗ Safety—the system has a simple, Safety procedures have been devel- Electrical connections and compo-
intrinsically safe design that oped to address the risks in this process, nent functions can be checked during
eliminates the risk of inadvertent and the American Petroleum Institute assembly and pumpdown operations
detonation from stray current or (API) provides guidelines for safe han- with a communication verifier, proving
voltage. Surface explosive handling dling of explosives through Recommend- that the gun string is fully functional,
with no mechanical or electrical con-
TABLE 1—THIRD-PARTY TESTING RESULTS—PROVEN PROTECTION LEVELS nection issues. Independent, third-party
testing verifies the additional protection
Static Electricity 2,500 pF 30,000 V against voltage and current provided by
Voltage and Current 50 V and 20 A the DynaStage system (Table 1).
Surge Testing 6,600 V and 2,500 A The safety measures built into the sys-
tem allow surface assembly to happen in
RF Frequency and Electrical 4 GHz, 300 V/m
Field Strength parallel with other operations. The gun
string can be fully built and tested before
Fluid Desensitized 2 min in water
connection to the wireline and without
Impact Testing 70 J stopping other wellsite operations. Sys-
DC Resistance Exceeds API RP 67 standard of DC tem features, including the plug-and-go-
resistance not less than 50 ohm and a style detonator and single-use connector
no-fire current of not less than 200 mA. subs, minimize the assembly time. The

24 JPT • APRIL 2016


Fig. 1—The DynaStage detonator has an injection-molded connector that
eliminates the need for connecting wires. Photos courtesy of DynaEnergetics.
time required for changeover from a used
assembly to the connection of a new gun
system is less than 10 minutes from rig
down to rig up.
Parallel Operations
During assembly of conventional per-
forating systems, including mechanical
component assembly, arming the sys-
tem, and connecting the gun string to
the wireline, there is a risk that resistor-
ized detonators can be initiated with RF
energy, stray current, or stray voltage at a
wellsite, under certain conditions.
When a traditional gun string with a
resistorized detonator is used, all sur-
face operations—including hydraulic
fracturing, radio communications, cell
phone communications, and other well-
site activities, are suspended at the start
of a perforating run until the gun string
is at least 200 ft into the well. Operations
must be halted again after perforation
when the gun is raised to within 200 ft of
the surface.
The DynaStage safe system provides a
level of safety that enables parallel oper-
ations with no depth restrictions and
without shutting down critical commu-
nications. With the protection afforded
against RF saturation, normal wellsite
operations can continue while the gun
string is lowered into and raised out of
the well. Operators using this protocol
can recover up to 30 minutes per fracture
stage in their simultaneous operations.
The overall savings during the comple-
tion can be substantial.
JPT • APRIL 2016
See Wells
BETTER
with
Reduction in Misruns
The system is intended to virtually elim-
inate misruns by aiming to achieve a
99.9% operating efficiency (1 misrun per
1,000 runs). To achieve this goal, the
mechanical and electrical assembly of the
gun system was redesigned. One major
improvement was to change the way the
detonator is assembled within the sys-
tem. A traditional detonator is assem-
bled into the perforating gun connector
sub requiring wiring connections and a
port plug with O-ring seals. Wiring con-
nection issues and leaking O-rings are
among the most common causes of per-
forating gun misruns.
With the DynaStage detonator, the
detonator wires have been removed
and replaced with an injection-molded
connector, eliminating crimped wire
connections and the associated risks of
wiring damage and poor electrical con-
nections (Fig. 1). The detonator was also
relocated to the gun body, from the tan- Since 2003, MicroSeismic
dem arming sub, which allows the use of has delivered the best image
a much shorter, disposable perforating of what’s happening in the
gun connector sub and eliminates the
subsurface to enhance reservoir
port plug.
The gun is shipped to the wireline cus- performance and production.
tomer fully assembled, except for the
detonator. All preshipping assembly
operations are performed in the Dyna- Why trust anyone else?
Energetics gun assembly line, which
has been optimized for high-volume
assembly, and automated inspection
and electrical verification of the assem-
bled product. The production line pro-
cess mitigates the risk of human error
MICROSEISMIC.COM
 Fig. 2—From left, the installation of the detonator is a simple plug-and-go insertion process.
typical in the manual redress, cleaning,
wiring, and assembly of conventional
perforating guns. Field assembly only
requires inserting the plug-and-go deto-
nator, shown in Fig. 2, and threading the
guns together.
Many additional design changes were
made to reduce the chances for human
error, assembly damage, or leakage. The
DynaStage gun system benefits are sum-
marized in the 2015 paper SPE 174922,
High-Performance Plug-and-Perf Com-
pletions in Unconventional Wells.
Field Trials, Commercialization
Field trials for the system began in Feb-
ruary 2015 and ran for 6 months. The
trials included two wireline companies
and were conducted with eight operators
in the Permian Basin and the Eagle Ford
and Marcellus shale formations. More
than 6,000 guns were fired, and more
than 1,000 stages were perforated dur-
ing the trials.
Weatherford chose to run trials of the
system based on its safety and operation-
al benefits. In addition to the intrinsi-
cally safe system that reduces the risk of
explosives handing and eliminates radio
silence concerns, the system required
less shop labor and made operations
easier at the wellsite.
Weatherford noted several advantages
of using the system. Communication with
26
the addressable detonators and igniters,
with surface and downhole verification
capabilities, enabled improved trouble-
shooting. The ease of changing from one
stage cluster of perforating guns to the
next reduced the surface transition time
for switching from a used to a newly
assembled tool string. And the ability
to continue other wellsite operations
while perforating saved equipment and
labor hours.
Cluster design changes can be made
“on the fly,” allowing operators flexibil-
ity with the number or sequence of guns,
and the guns need only to be screwed
together, with rewiring eliminated.
After the field trials, with the technol-
ogy commercialized, Weatherford began
running the DynaStage system in a high-
volume horizontal completion project
for a Permian Basin operator. The intro-
duction of the system allowed a side-
by-side comparison with a conventional
gun operation used in previous plug-and-
perforate stages. With a large data set of
more than 400 runs completed, the ben-
efits of saving time and reducing opera-
tional failures were significant.
Since the commercial launch, another
1,500 guns have been fired, bringing the
total guns fired to more than 7,500 by
the end of 2015. The production success
rate has been 1 misrun per 420 runs for a
perforating efficiency of 99.41%. Dyna-
Energetics continues to refine the sys-
tem components, assembly process, and
operating procedures with the objective
of attaining the 99.9% efficiency rate.
Each perforating stage run with the
system reduced completion time by an
average of 32 minutes, compared with a
conventional system, because of the effi-
ciency of surface-level transitions from
gun to gun and well to well. Improved
downhole reliability was also achieved,
with an average decrease in nonproduc-
tive time of 2 hours per 100 runs. A sig-
nificant part of the improved reliability
was a reduced need for on-site user inter-
actions that often lead to electrical issues
and misruns in conventional wired perfo-
rating systems.
The use of the perforating system
resulted in fewer days on location and
operator cost savings (USD) as high as
six figures. The Permian Basin operator
who used the commercialized DynaStage
system has incorporated it into the com-
pany’s normal completion program.
Conclusion
Through the implementation of design
and safety improvements, the DynaStage
system has demonstrated significant
improvements in perforating performance
and enhanced operational efficiency,
while reducing well completion costs and
providing a safer work environment. JPT
JPT • APRIL 2016
E&P NOTES

Onshore Support for Mexico’s Deepwater

Blocks Lacking
Trent Jacobs, JPT Senior Technology Writer

The deepwater blocks Mexico plans the deepwater sector but plans to develop The most well-developed hub for off-
to lease to international operators in these areas remain unfulfilled. shore support in Mexico, Ciuduad del
December are among the deepest, most Brownsville, Texas, located just on the Carmen, is yet another port city that can
remote, and geologically challenging in other side of the border from Matam- be scratched off the list. “Ciudad del Car-
the world. But the difficulties of develop- oros, has been discussed as a possible men is very well developed, lots of infra-
ing these areas will start onshore, where solution to the transit challenges. How- structure—very crowded, and you are
adequate and secure port facilities are ever, Garcia said that it too is off the not going to get a dynamically positioned
few and far between. table unless some sort of legal frame- workboat in there because the draft is too
“This is where the issue is about deep work between the two countries is estab- shallow,” Garcia said.
water,” said Chris Garcia, the Mexico lished to make that possible. “I don’t see Moving to the east is the port of Dos
international account director and deep- that happening tomorrow, or mañana,” Bocas where Schlumberger and other oil
water adviser at Schlumberger. “Logistics he said. and gas companies have stationed sup-
are going to be very challenging, much To the south where the other half of port and seismic vessels. The port is deep
more so than on the American side.” the exploration blocks on offer are locat- enough to accommodate large rigs and, if
Speaking before a packed room at an ed, the chief issue switches from security expanded, could become a major staging
SPE Gulf Coast Section International to supply. The deepwater port of Vera- area to support both new deepwater and
Study Group meeting, Garcia explained cruz is geographically well positioned shallow-water projects. That said, Garcia
that the port problem will be especial- to serve the southern blocks but it has noted that Dos Bocas still lacks an inter-
ly felt by those companies looking to historically not been friendly to oil and national airport, an adequate number of
develop the Perdido-area blocks. The gas activities. hotels, and is a moderate security risk.
area is expected to be the most sought
after because of the significant dis-
coveries made on the US side of the
maritime border.
The closest port to Perdido is near the
border city of Matamoros, but it is off
limits to the offshore industry because of
security issues related to Mexico’s ongo-
ing war against narcotic traffickers. Gar-
cia explained that per Schlumberger’s col-
or-coded risk rating, the areas along the
Mexico-US border are a red zone—the
same classification given to Iraq. While
that could change in the future, even
Pemex, Mexico’s national oil company,
has decided it is safer to use the port
of Tampico, located 300 miles farther
south, to support its Perdido activities.
The next-best option is another 120
miles to the south at the city of Tuxpan,
which has one of the most active ports
in the country because of its proximity The successful development of 10 prospective deepwater blocks offshore Mexico may
to Mexico City. There are barrier islands require significant capital investments to be made on upgrading or building new ports.
much closer to Perdido that could service Graphic courtesy of the National Hydrocarbons Commission.

JPT • APRIL 2016 27

 New Technology To Cut Electric Costs, Not Production
Trent Jacobs, JPT Senior Technology Writer
Everhart Energy Technology, a startup
company based in Beverly Hills, Califor-
nia, has developed a system it believes
will help small to medium-sized opera-
tors cope with the reality that, while
oil prices have fallen, their electric bills
have not.
Installed between a pump jack lift
and its power source, the system regu-
lates the power being transmitted to
the electric motors and also captures
the kinetic energy generated on the
pump’s down stroke—similar to how a
hybrid vehicle works. The technology
was invented in South Korea for indus-
trial and commercial equipment and
Everhart, founded in 2014, has secured
the rights to apply it in oil fields in the
United States.
Called an advanced regenerative
technology (ART) system, the company
says it is capable of reducing energy
costs by about 30% to 42%. The ener-
gy generated during the down stroke
can be sold back to the utility provid-
er, or in dense oil fields it can be reused
by adjusting the strokes of two adja-
cent pump jacks to share power between
the units.
Tommy Chung, founder, president,
and chief executive officer of Ever-
hart, said the company has successful-
ly deployed test units in two California
fields where average electric costs are
among the highest in the nation. “One
of them has over 1,000 pumps,” he said.
“Where you literally have hundreds of
pumps at one site, that’s the kind of
market we like to go after.”
POTENTIAL COST SAVINGS, IN USD
North Dakota
Electricity price per kW-hr 0.074
Annual electric cost per
46,620
pump jack
Annual savings at 30%
13,986
increase in efficiency
Monthly savings at 30%
1,166
increase in efficiency
Source: Everhart Energy Technologies
28
A test site for a new technology that is designed to optimize the electrical usage of a
pump jack and trim electricity costs in aging oil fields. Photo courtesy of Everhart Energy
Technology.
Glenwood Garvey, director of techni-
cal services at Everhart, explained that
many pump jacks are about 60% ener-
gy efficient, and that the ART system is
designed to increase that number by a
significant margin. “Almost on a millisec-
ond basis, it is monitoring the exact elec-
tricity that is required for that motor and
not sending electricity that is not going
to be used,” he said.
Across the US there are more than
400,000 stripper wells operated by
approximately 7,500 companies. The
collective might of these low-yield wells
churns out almost 1 million B/D—equal
to about a tenth of US production.
But at current prices, overhead costs,
including transportation, water dis-
posal, and electricity, are forcing com-
Texas California Alaska
0.062 0.123 0.152
38,808 77,175 95,949
11,642 23,153 28,785
970 1,929 2,399
panies to make hard decisions. “For com-
panies that are shutting down up to 75%
of their wells, with our technology, we
could make some of those wells margin-
ally profitable even in very difficult cir-
cumstances,” Garvey said.
The company notes that an existing
technology known as a variable frequen-
cy drive (VFD) has been the convention-
al system used to increase the electric
efficiency of pumps. But unlike the VFD
technology, Everhart says the ART sys-
tem is capable of returning energy to the
utility grid for a rebate.
In addition to California, the company
is also focusing on west Texas and North
Dakota because of large market poten-
tial. For a 60-hp motor, the ART system’s
retail cost is about USD 13,500. Based
on the company’s economic models, the
payback period is less than a year where
electric costs are highest. In areas where
electricity costs are relatively low, such
as Texas, that could stretch out to just
under 2 years.
The installation of each unit takes a
couple of hours and can be linked to
a company’s network for remote mon-
itoring. Everhart also claims that reg-
ulating the power supply can reduce
vibration and heat, which put stress on
pump motors.
JPT • APRIL 2016
Statoil Gets a Jump on Offshore Costs
Stephen Rassenfoss, JPT Emerging Technology Senior Editor
One of the latest offshore innovations
from Statoil is nothing flashy, which is
the point. A drawing shows a plain, steel
jacket, standing in water 110 m deep,
topped with a flat metal deck.
The spare design is indicative of the
disciplined approach to offshore devel-
opment that led to a 52% decrease in the
estimated break-even cost for its Oseberg
Vestflanken 2 project, of which the plat-
form is a key part. The lower break-even
made it possible to move forward with
development of three small oil and gas
fields at a time when depressed prices are
forcing mass cancellations of offshore
projects globally.
Cost-cutting programs have become
the rule since oil prices plunged. Statoil’s
is different, though, because it began a
year before the plunge. Even before the
oil price crash, the company’s leaders
were concerned that rapidly rising costs
were eroding profit margins.
“It is much easier to get a sense of
urgency now,” said Margareth Øvrum,
executive vice president of technology,
projects, and drilling for Statoil. Back
then, she said it was harder to convince
people that the company needed to act
to maintain margins because “when we
started, (oil prices) were USD 110.”
Since 2013, the Norwegian national oil
company reports that it has slashed the
average break-even price of its future off-
shore developments, which have yet to
be sanctioned, from USD 70 bbl in 2013
to USD 41 bbl.
While budgets for offshore projects
have often been a poor indicator of the
actual cost of executing projects indus-
trywide, where large cost overruns were
common, a Statoil presentation showed
that its construction work over the past 5
years has regularly come in near the bud-
geted amount.
The unmanned oil and gas produc-
tion platform combines advanced control
technology—production will be remote-
ly monitored and controlled from the
nearby Oseberg field center—and the
usual flow control hardware: a Christmas
tree, manifold, and valves.
JPT • APRIL 2016
Statoil chose to build a wellhead plat-
form with 10 well slots to avoid the cost
of subsea development, which had been
rising rapidly before the crash. Also the
dry trees will make it easier and cheaper
to do the maintenance required to maxi-
mize the output from the fields.
The facilities do not even include a
toilet for those visiting the platform.
That addition was proposed and reject-
ed because that seemingly small added
expense would require a series of other
design additions from managing the sew-
age to a gas detector, Øvrum said.
“We were very strict on what was pro-
posed,” she said. The goal was “no added
functionalities.”
Maintenance crew members in need
of a toilet, or a lifeboat, can walk over
the service boats, equipped with a “walk
to work” gangway. The system devel-
oped for the offshore wind business uses
heave compensation to limit the effect
of the waves on the walkway. It is a small
example of a large change in approach
required to continue developing projects
offshore in a much lower-cost environ-
ment. Since the Oseberg tie-back proj-
ect was sanctioned last year, oil prices
slipped from around USD  50/bbl to
around USD 30/bbl.
Many money-saving ideas are required,
from tying in a subsea line into an oper-
ating pipeline, rather than building a new
one, to organizing the efforts of engi-
neering companies in a way that elimi-
nates duplicative planning work.
For Øvrum, continued cost reductions
should allow Statoil to continue to go for-
ward with offshore projects coming up
for sanctioning in the coming years.
Cost cutting is also required for her
to pursue a long-term goal of creating
subsea factories that move critical pro-
cessing functions from platforms to the
seabed in deep water. Last year, Statoil
demonstrated the first subsea gas com-
pression system. It was a technical suc-
cess, but there is work to be done before
it can be a widely used tool.
“We need to make it cheaper, lean-
er, and lighter for it to be more broad-
By sticking with a bare-bones design for
this unmanned oil and gas production
platform, Statoil was able to reduce the
price enough to go forward with a project
to add production from three fields near its
Oseberg platform. Photo courtesy of Statoil.
ly implemented,” she said. The system
includes 22 modules, and she said they
are looking for ways to simplify it by elim-
inating unnecessary redundancy.
While lower service and material costs
are part of the saving—a Statoil pre-
sentation showed contract savings of
20% to 30%, but those are likely to
go away when the market recovers—
simpler more efficient designs can have
a long-lasting effect as can operational
improvements. Statoil reports a 50% rise
in the meters of hole drilled per day, and
around 20% drop in the cost of subsea
planning and execution.
Still the price of oil is lower than the
average Statoil break-even cost for future
projects, so the company is working to
further reduce costs. Engineers are often
blamed for adding costs or burdening
projects with complex, non-standard
designs, but Øvrum said the company’s
engineers are playing a key role in
reducing expenses.
“If you involve them in the commercial
discussions, then a lot of work by engi-
neering nerds can be really commercial
these days,” she said. JPT
29
 A row of wellheads in North Dakota. While
being squeezed by a zero-margin economic
climate, unconventional producers are
still searching for innovations that will be
put to good use when prices rebound.
Photo courtesy of Valery Lyman.

Shale Completions Improve, Despite

Shrinking Number of New Wells
Trent Jacobs, JPT Senior Technology Writer

T
wo places that illustrate the
mounting challenges facing the
shale business are the Bakken
Shale in North Dakota, where the num-
ber of working rigs is one-third what it
was a year ago, and the Fayetteville Shale
in Arkansas, where there are no more
working rigs.
Steve Mueller, the outgoing chairman
of the board and former chief execu-
tive officer of Southwestern Energy, the
company that discovered the Fayetteville
Shale, noted how the current environ-
ment has made it harder to drive inno-
vation forward even as it becomes more
important than ever.
“How in the world do I learn at the
speed I was learning at before when I am
not drilling as many wells, when I am not
doing as many fracs, and when I don’t
have as much money?” he said. “And the
conclusion I come to is that we have got
to do it a different way and we have got to
do it a lot faster.”
Mueller spoke in February before a
room of engineers and service providers
at the SPE Hydraulic Fracturing Tech-
nology Conference in The Woodlands,
Texas, where some of the innovations
spurred by the need to change were pre-
sented. But because so many compa-
nies have laid down so many rigs, it will
take a significant price recovery before
the latest advancements and efficiencies
make a big impact on the shale sector.
Getting More From More
A good example of a company execut-
ing a strategic retreat is Hess Corpora-
tion. In 2014, the company had 17 rigs
running in its Bakken program. At the
start of this year, that number was two.
Despite the major pullback, the company
has moved forward on two key comple-
tions strategies: increasing the number
of stages from 35 to 50 and switching to
a cheaper, and more effective, fracturing
fluid system.

30 JPT • APRIL 2016

 To help determine the optimal num­
ber of stages, Mariano Gurfinkel, the
planning manager for the global onshore
business unit at Hess, said the com­
pany mined public data from more than
10,000 wells in North Dakota. “We can
learn from that,” he said. “It is like look­
ing at other people as your own pilot.”
Hess then followed up on the data
with a real­world pilot program. It saw
that increasing the number of stages by
nearly 40% generated an average ini­
tial production uplift of 20%. The com­
pany is also using sliding sleeves for
the operational gains they provide and
exploring the idea of using more prop­
pant per stage.
Gurfinkel added that Hess believes
its 50­stage wells are accelerating
early­time production, which is bolster­
ing cash flow, but have not been on pro­
duction long enough to say whether they
will increase ultimate recovery.
Mark Pearson, president of the
small independent operator Liberty
Resources, described how his company
has been committed to the idea that
large volumes of sand and at least 35
stages per well deliver the best econom­
ics regardless of the price of oil. While
the overwhelming majority of opera­
tors are unable to drill and complete a
breakeven well right now, he explained
that those implementing the tightest
spending caps on their designs are los­
ing the most.
“It is very tempting for us in times of
low prices to just say, ‘Let’s cut the num­
ber of frac stages, let’s cut the amount of
proppant, let’s cut the engineering out of
our fracs,’” Pearson said. “But from our
data, and looking at the case studies, we
don’t think that is the right way to sur­
vive in 2016.”
As Liberty continues to operate only
a single rig in the Bakken, its new goal is
to do a better job of engineering comple­
tions rather than maintaining the geo­
metric “cookie cutter” approach. To cut
costs, Pearson said the company has
decided that instead of adding more frac­
turing stages per well, it will pump more
proppant per stage and has switched
from premium proppant to less expen­
sive sand. Without elaborating, he added
that Liberty has reduced its completion
JPT • APRIL 2016
A fracturing spread in the Bakken Shale. Some operators have turned to a
cheaper fracturing fluid that borrows technology from slickwater and yet acts
like a crosslinked gel. Photo courtesy of Valery Lyman.
chemical additive package to “what is
proven to be needed rather than what
sounds like a good idea.”
Cutting Chemicals,
Increasing Performance
Other companies have adopted a simpler
chemical mix for their completions too.
Hess is working with Calfrac Well Servic­
es on a formula that uses slickwater fluids
to perform like a more expensive guar­
based crosslinked gel. Max Johnson, a
completions engineer at Hess, said the
move to a high concentration of emulsi­
fied polyacrylamide, commonly used in
slickwater treatments as a friction reduc­
er, has increased production by an aver­
age of 10%.
Overall, four out of five wells in which
friction reducer was used in the place of
crosslinked gels have improved produc­
tion. “It is a pretty big deal when you
know that not only are you getting that
percentage of uplift, but that many more
[wells] are doing better,” Johnson said.
Compared with a typical slickwater
job, the volumes of friction reducer used
with this approach can be anywhere from
four to 10 times higher.
Johnson said the formula Hess used
was nearly 25% cheaper than the cross­
linked fluids it was previously using
which required completion crews to
manage up to 13 different chemicals.
This presented a higher risk of spills and
also a higher degree of difficulty involved
with achieving optimal pH levels.
Aside from the friction reducer, the
only other major component to the sim­
pler mix is a gel breaker. However, test­
ing has shown that removing the breaker
would have no effect on completion qual­
ity and would further reduce costs.
Jeremy Meehleib, lead completion
enhancement engineer at Calfrac Well
Services, has been working with Hess
on the implementation of the friction
reducer formula and said it is now being
trialed in the Three Forks Shale, a deep­
er and much tighter layer found under
the Bakken.
He explained that because the Three
Forks is a “notoriously more difficult to
complete formation,” some changes to
the fluid mix have been made. “We’re hav­
ing success and moving forward,” he said.
“I think we will be just where we are with
the Bakken treatments relatively soon.”
One of the major advantages of using
friction reducer is that it is also an excel­
lent viscosifying agent which has allowed
treatment pressures to be lowered by
as much as 550 psi. Meehleib said that
a lower pressure means there is a great­
er margin of safety on­site, and target
pumping rates can be reached sooner
than with the crosslinked gels. Further,
the friction reducer fluid is able to carry
31
 with Southwestern and said compared to
the emulsified friction reducer, the pow-
der contains three times more active con-
tent which lowers the cost of transporta-
tion and logistics.
In the Fayetteville operations, he said
that surface treating pressures were able
to be reduced by 500–1,000 psi. After
observing performance improvements in
the initial wells, engineers began test-
ing for proppant transport capabilities.
They found that increasing the concen-
tration of dry friction reducer made
it possible to pump about 5.5 lb/gal of
proppant into the well, more than twice
what could be achieved with a standard
slickwater treatment.
“When you increase the proppant load-
The PowderFrac system is used to hydrate and control the deployment of ing, the pressure of the fluid is going to
powder friction reducer on fracturing jobs. The unit can store 12,000 lbs of gradually increase as you put more and
powder, or enough for about 20 stages. Photo courtesy of SNF. more proppant into the fluid,” Thorpe
explained. “And you would normally
more proppant per gallon through the SNF, the largest maker of polyacryl- have to drop your injection rates down to
lateral section and into the formation amide in the world, developed the idea accommodate that.”
compared with crosslinked gels. of using dry friction reducer as a fractur- But not so with friction reducer. The
Outside of the Bakken, Calfrac has so ing fluid additive and the equipment to Southwestern stimulations were able to
far only used the friction reducer in Can- deploy it in 2010. The Stim-Lab research maintain high injection rates while con-
ada as an additive to nitrogen foam treat- consortium has since carried out multi- tinuously increasing the proppant load-
ments. The company believes the tech- ple studies to validate its potential, yet ing and displacing water. Thorpe said the
nology has much wider applications and during the boom cycle, few companies only limiter was how much sand could
is marketing it to other operators using were willing to change their operations be loaded into the blender at one time.
both crosslinked gels and slickwater. and use such a novel fracturing fluid. Southwestern reported that when it used
“But as the price of oil has dropped, dry friction reducer for these so-called
The Powder Option it’s driving people more in the direction “reduced fluid completions” it was able
Before its drilling program went on hia- of innovation and to come up with new to improve production and cut water
tus, Southwestern also piloted and then ways of reducing their treatment costs,” costs by USD 250,000 per well. JPT
adopted a friction reducer fracturing said Russell Thorpe, the technical man-
fluid for use at its Fayetteville operations ager of fracturing and completion chemi- For Further Reading
at the end of 2014. In this case, South- cals at SNF. SPE 179160 Completion Optimization
western used powdered friction reducer To be sent into the treatment lines and in the Fayetteville Shale Utilizing
as an alternative to the emulsified variety downhole, the powder is mixed using a Rate Transient Analysis for
and achieved significant savings on its truck-mounted hydration unit designed Candidate Selection by B. McDonald
fresh water costs. by SNF. Thorpe worked on the project and T.H. Wright, Southwestern
Energy.
SPE 179146 Dry Polyacrylamide
BENEFITS OF USING FRICTION REDUCER FRACTURING FLUID
Friction Reducer: Not Just for Slick
Water by M. Sanders, K. Felling,
• Excellent low-shear viscosity and high viscosity at high-shear rates S. Thomson, Southwestern Energy
• Low rate of proppant settling Company, et al.
• Water displaced by the extra proppant saves money SPE 179154 High Concentration
• Less damage to proppant packs and better well cleanup Polyacrylamide-Based Friction
• 500—1,000 psi reduction in fracture treatment pressure Reducer Used as a Direct Substitute
• Lower pressures may result in lower fuel costs and less stress on for Guar-Based Borate Crosslinked
pumping units Fluid in Fracturing Operations
• Lower heating requirements can save money, especially in winter months by M. Motiee, M. Johnson, Brian
Ward, Hess Corporation, et al.

32 JPT • APRIL 2016

 The Wide Divide Between
Fracturing Plans
and Reality
Stephen Rassenfoss, JPT Emerging Technology Senior Editor
W
hat is observed when an
unconventional well is frac-
tured is often at odds with
what was expected by those who planned
the job.
In-well observations from techni-
cal papers from Shell (SPE 179124) and
Devon Energy (SPE 179149) presented
at the recent SPE Hydraulic Fracturing
Technology Conference question many
of the assumptions made about how to
most efficiently stimulate nearly imper-
meable unconventional formations.
Completion designs often assume
that adding perforations will increase
the number of productive fractures.
But Shell’s in-well studies using a fiber-
optic cable during and after completions
showed that in most stages only one frac-
ture, and sometimes two, take in most
of the fluid and sand. The company also
found that more stimulation translates
into more production.
“There is invariably a dominant per-
foration stage emerging through the
jobs,” said Bill Wheaton, formerly a
senior adviser in operations engineering
for Devon who presented its paper. “We
would like to see four [effective] fractures
for four perforation clusters, but that is
an uncommon thing,” he said.
Generally, the most productive spot in
each cluster of perforations is located on
the heelward side—the end toward the
section of the well that curves from hori-
zontal to vertical. Both papers showed
wide variations in how much fluid and
proppant flowed into the formation at
different spots along the studied well-
JPT • APRIL 2016
bores. In the Shell study, more than two-
thirds of all the clusters took in 50%
more or less than the designed amount.
And the tools used to control the flow
during fracturing often leak. Packers fre-
quently fail to seal stages, allowing large
amounts of fluid and proppant to escape,
and diverters often are unable to tempo-
rarily clog large fractures so the hydraulic
pressure can be redirected to stimulate
small ones.
“We need to pay attention not only to
the design but the execution,” said Gus-
tavo Ugueto, senior staff petrophysical
engineer for Shell, during his presenta-
tion at the fracturing conference. Mea-
sures of what flows into the perforations
show that “a lot of them receive more
than designed for, and a lot receive less.”
Fracturing Efficiency
There is an upside to these critical
reports—addressing the problems could
lead to revised methods and tools that
could produce more oil and gas with less.
Shell’s paper sets that theme by quot-
ing its paper about fracturing from
1963 (SPE 530) that said, “The basic
objective of all well treatment is to get
the best stimulation compatible with
the cost.”
Both Shell and Devon’s papers con-
clude that spending more to add clus-
ters of explosive charges that increase
the entry points for hydraulic fractur-
ing is likely to be a costly way to boost
production. “Increasing perforation clus-
ters seems to promote ineffective perfo-
ration clusters,” Wheaton said, suggest-
ing, “We should be considering more
stages and fewer clusters.”
While those papers compared comple-
tions with 3–6 clusters of perforations
per stage—Devon’s clusters each had
5 charges and were 1–2 ft long—some
operators are using more than 10 closely
spaced clusters per stage.
Frequently, increasing perforation
clusters seemed to increase the propen-
sity for development of a single dominant
fracture, the Devon study concluded,
adding: “Stages with fewer perf clusters
were more likely to develop at least two
fractures close to equal treatment distri-
bution and geometry.”
“The less clusters per stage you have,
the greater the efficiency,” Ugueto said.
Studies showing the value of stimu-
lating a limited number of perforations
goes back more than 50 years to work by
Shell engineers at Venezuela’s Lake Mara-
caibo (SPE 1415). They found that they
could produce more by switching from
using many perforations per foot, or pre-
perforated liners, to 11 perforations for
the well, which the paper called “pin-
point sand-fracturing.”
Focusing the limited pressure avail-
able from their pumps on fewer perfo-
rations ensured that there was enough
force to consistently initiate a fracture,
reduced the perforation cost by 70%, and
increased the production rate 95%, com-
pared with results prior to the change.
That saved USD 3,700 per well back in
1960, according to the paper.
Now the financial stakes are far higher
and the issues observed more complex.
33
 Shell reported in the 2016 paper that in ters near the heel begin to dominate, lyze the massive amounts of data these
its unconventional wells “typically there while many farther down the hole go into systems generate, which is an emerg-
is enough pressure initially to initiate decline. Pressure drops during pump- ing technology. Shell and Devon’s papers
fractures,” but sustaining that flow can ing can result in the loss of one or more suggest what operators do not know
be a problem. active clusters, and once lost they do not could be costly.
Specifically, the fiber-optic cable tend to come back again. A table from Devon’s paper shows that
wrapped around the outside of the pro- Meanwhile, dominant clusters are in a well with four perforation clusters
duction casing observed areas a few changed by the strong flows of water and per stage, one of the two on the heel-
meters across where the cooler water abrasive sand, which widen the diam- ward side was dominant in 13 of the 14
from the surface reduced the tempera- eter of the opening. “Inefficient clusters stages. In most stages there is a wide gap
ture of the surrounding rock, indicating appear to stop taking treatment, result- between the fluid flowing into the top
that some of the fluid had gotten into the ing in others in the same stage taking sig- fractures and what flows into the rest.
formation. But the cooling was relatively nificantly larger volumes than planned,” Devon observed that the low-
short-lived, and the rock warmed back the Shell paper said. performing clusters likely were a result
up quickly, indicating the volume of the of the stress added to the formation when
fracture stimulated was small compared Spotty Results a large fracture is stimulated, which is
with super clusters where the tempera- The sample of data available from the capable of stunting the growth of several
ture effect was greater and longer lasting. wells observed using the fiber-optic tool later fractures.
Normally, fractures begin forming is small. Few companies have been will- “Interference between adjacent frac-
near the heel of the stage as water is ing to pay to install the tool and develop tures within a given stage, and from adja-
injected. But as pumping continues, clus- the expertise needed to process and ana- cent fracture stages, results in … pre-

All 3 PCs Stages Relative Treatment Allocation (%)

400 All 3 PCs Stages

350
Relative Treatment Allocation (%)

300 GT 150%
LE 50%
25%
33%
250

200

150 GT 50% LE 150%

42%
100

50

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

All 6 PCs Stages Relative Treatment Allocation (%)

400
All 6 PCs Stages
350
Relative Treatment Allocation (%)

GT 150%
300
21%
250 LE 50%
38%
200

150 GT 50% LE 150%

42%
100

50

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

In stages with three perforation clusters, twice as many clusters take in nearly 100% or more of the planned fluid during
fracturing compared with stages with six clusters. But both designs produce a wide range of results. Images courtesy
of Shell.

34 JPT • APRIL 2016

 dominance for fracture growth in the 600,000
most heel-ward perforation cluster,” the
Devon paper said. It said fewer, more
500,000
widely spaced perforations could limit
that effect.

Proppant Mass (lb)

The study found that in 14 stages 400,000

observed, only one took in all that was

pumped, while the others were either 300,000
getting significantly more or less.
Based on the sound measured by the 200,000
fiber-optic cable, Shell also measured the
production by stage. The dominant frac-
100,000
tures, based on the level of treatment,
also produced the most hydrocarbons,
Ugueto said. 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14
There are downsides to dominance. Stage
With so much fluid going into so few frac- Prop from Current Prop from Next Prop from 2 Proppant Pumped
tures, Devon’s fracturing model showed Stage (lb) Stage (lb) Stages Later (lb) in Stage (lb)

that the dominant fractures were well-

propped near the wellbore before pump-
ing was complete. Further stimulation
would add little in the planned produc-
tion zone, and could lead to undesirable
growth by the dominant fracture that can
hit other wells and disrupt production, or
produce from areas that are supposed to
be drained by the other wells.
Flow Control
Less perforations is more efficient, but
it can also mean less production. Both
papers offered examples of stages with as
few as three perforations per stage, which
the Shell paper concluded was more effi-
cient than six perforations. But with so
many poorly fractured perforations, elim-
300,000
The volume of proppant placed (dot) in each of the 14 fracturing stages of a
Devon Energy well was often significantly different from the amount pumped
(bars), due to the failure of packers to stop leaks at the previous stage (green)
or two stages (red). Image courtesy of Devon Energy.
inating many of them could also reduce than 70% of the stages showed evidence
total production, which is not the goal. of “intra-stage communication,” most of
One tool for improved output is more which it attributed to plug leakage. Loss-
effectively containing and controlling es of up to half the proppant pumped
fluid flows during fracturing. were observed, and there were instanc-
Packers used to maintain pressure es where the leaked fluid traveled to two
within one stage during fracture often previously fractured stages.
leak, reducing the pressure at the stage Another problem was the materials
being treated. “We need to improve stage used to divert the flow away from domi-
isolation with plugs that actually work and nant fractures. Devon planned to stop,
ensure annular isolation,” Ugueto said. or limit, the flow into any dominant per-
Devon’s paper reported that the acous- forations by pumping a diverter between
tic fiber-optic data indicated that more three sand ramps.

250,000
Proppant (psi)

200,000

150,000

100,000

50,000

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14

Over 14 stages, Devon Energy observed that the perforation clusters getting the most proppant within each stage were
farthest up the wellbore (heel side). In most of these clusters, one perforation dominates. Image from SPE 179149.

JPT • APRIL 2016 35

 important to the oil and gas business,
Winners and Losers but with the practices and diverter we
used on this job, we didn’t see a consis-
Edited observations on two typical stages by Shell. (SPE 179124) tent response.” JPT
◗◗ Typically there is enough pressure to initiate fractures in all the
perforation clusters.
For Further Reading
◗◗ In many stages, the fractures initiate from heel to toe.
SPE 530 A New Development in
◗◗ In most stages, changes in perforation cluster efficiency coincide with
the start of proppant placement, due to such expected changes and
Completion Methods—The Limited
perforation diameter. Entry Technique by K.W. Lagrone
◗◗ Most decreases in pressure during treatment placement result in losing and J.W. Rasmussen, Shell.
one or more of the previously active perforation clusters. SPE 1415 Pin-Point Sandfracturing—
◗◗ After a connection is lost with a perforation cluster, it seldom becomes A Method for Simultaneous Injection
active again.
into Multiple Sands by W.B. Murphy
◗◗ Inefficient clusters appear to stop taking treatment, resulting in others
and A.H. Juch, Shell.
in the same stage taking significantly larger volumes than planned,
creating dominant clusters. SPE 179124 Perforation Cluster
◗◗ The large volumes flowing into dominant clusters increase the risk of Efficiency of Cemented Plug and Perf
a fracture interfering with nearby wells, or draining an area outside the Limited Entry Completions: Insights
planned area. from Fiber Optics Diagnostics by G.
Ugueto, M. Molenaar, B. Wyker, Shell,
Surface pressure readings rose, sug- diverter was deployed, the Devon paper et al.
gesting the diverter was increasing the said. It said these observations are “not SPE 179149 A Case Study of Completion
pressure on poorly fractured locations. a reason to eliminate” the use of divert- Effectiveness in the Eagle Ford Shale
But the fiber-optic tool presented a dif- ers but does point to the need to work on Using DAS/DTS Observations and
ferent picture. It showed that once a dom- how to use them more effectively. Hydraulic Fracturing Modeling by
inant fracture was established in a given “Diverter response was inconsistent,” B. Wheaton, K. Haustveit, W. Deeg,
stage, it remained dominant even if the Wheaton said. “I think diverters are Devon Energy, et al.

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36 JPT • APRIL 2016

 Pressure Changes While Fracturing
Add To Marcellus Well Production
W hen it comes to hydraulic fractur-
ing, steadiness may not be a vir-
tue. That was the conclusion of a test to
see if rapid pump rate variations would
lead to greater production than conven-
tionally fractured stages when the pres-
sure was held steady.
The stages in which rapid pump varia-
tions were used to create pressure pulses
produced an average of 18% more gas
than the ones with steady pumping pres-
sure, said Jordan Ciezobka, manager of
research and development for the Gas
Technology Institute (GTI), which did the
test in the Marcellus with WPX Energy.
The project was funded by the Research
Partnership to Secure Energy for Amer-
ica (RPSEA).
Based on early results, this simple
method may “increase production with
no change in the water or sand pumped,”
he said during a presentation at the
recent SPE Hydraulic Fracturing Tech-
nology Conference.
Since then, a version of the method
with “more aggressive rate changes engi-
7
6
5
Gas Contribution (%)
0
27 26 25
Production from stages in which the pumping rate was rapidly varied during fracturing outperformed those pumped at
a steady pressure. Figure from SPE 179107.
JPT • APRIL 2016
Stephen Rassenfoss, JPT Emerging Technology Senior Editor
neered specifically to accommodate the
completion design in the Permian Basin”
has been tested at a site where it was
monitored using microseismic, produc-
tion logging, and radioactive tracers.
Ciezobka said results from that test are
expected soon.
The idea grew out of previous well
monitoring research work in which
microseismic testing detected a surge
in seismic activity—an indication
of more fracturing—whenever the
pump speed had to be adjusted for
operational reasons.
Where that happened during fractur-
ing, the well’s output was greater, Ciezob-
ka said. So the thinking was, “Why not
redesign the frac pump rate to get higher
microseismic activity and get more pro-
duction?,” he said.
To test the theory, GTI set up a test
where it used a variable pumping rate on
14 odd-numbered stages, and a steady
rate on 13 even ones. The pump rate vari-
ations were done during the pad period,
prior to pumping proppant. In a future
Variable Pump Rate
24 23 22 21 20 19 18 17 16 15 14 13 12 11
Stage #
test they plan to also vary the pressure
while pumping proppant.
Other than the rapid pump rate chang-
es, which required some practice by the
crew to get it right, the odd- and even-
numbered stages showed no differences.
But on average, the stages where the
pumping rate varied produced 65.4 Mscf/D
of gas, compared with 55.5 Mscf/D when
the rate was constant, the paper said. The
six highest production rates resulted from
stages in which the pressure was varied.
When production from the test well
was compared to a nearby well that had
been conventionally fractured with 50%
more proppant, the variable rate well’s
production had declined at a lesser rate.
Another difference was surface treat-
ing pressure, which is an indication of the
force required to pump fluid into the for-
mation, which was lower when the pump
pressure was varied. Analysis of the pres-
sure decline rate after the pumps were shut
down (water hammer diagnostic) indicat-
ed variable rate stages created, broader,
more complex fractures, he said. JPT
Constant Pump Rate
10 9 8 7 6 5 4 3 2 1
37
 IHS CERAWEEK
Surviving the Downturn: Oil Executives See
Continued Tough Times Ahead
Trent Jacobs, JPT Senior Technology Writer, Stephen Rassenfoss, JPT Emerging Technology Senior Editor
Enough dust has settled over the past
year to give the global oil and gas busi-
ness a clearer view of its new landscape.
Holding little back, speakers at the annu-
al IHS CERAWeek conference in Feb-
ruary discussed how the industry has
been shaped by the disruptive impact of
North American shale production and
predicted that many more months of
financial pressure will spell the end for
some companies.
The current industry situation is often
compared with the last prolonged down-
turn in the 1980s—used by many in
the oil patch as the measuring stick for
rough times. But for Ali Al-Naimi, the
Saudi Arabian minister of petroleum,
the contributing factors are different
this time around. Speaking in Houston
at the annual gathering of top executives
from operators, national oil companies,
the service sector, and government, he
explained that today’s crude market
Ali Al-Naimi, Saudi Arabian minister of petroleum, speaking at IHS CERAWeek
in Houston.
38
includes an expanded roster of produc-
ing nations and is under the influence of
financial instruments that did not exist
3 decades ago. Al-Naimi then disputed
the idea that his country is engaged in a
global battle for market share that some
claim is prolonging the bust. “Let me
say for the record, again, we have not
declared war on shale or on production
from any given country or company—
contrary to all the rumors that you hear
and see,” he said. “We are responding to
challenging market conditions and seek-
ing the best possible outcome in a highly
competitive environment.”
Nevertheless, Al-Naimi also argued
that the market is simply not big enough
for high-cost producers, and said they
have three options: lower their costs,
borrow more money, or liquidate.
“It sounds harsh, and unfortunately it
is, but it is the most efficient way to rebal-
ance markets,” he said. “Cutting low-cost
production to subsidize higher-cost sup-
plies only delays an inevitable reckoning.”
On the topic of a potential production
freeze proposed by a minority group of
the Organization of Petroleum Export
Countries (OPEC) and Russia, Al-Naimi
said such a move could happen but ruled
out any notion that Saudi Arabia would
cut oil production.
“That is not going to happen,” he said.
“Because not many countries are going to
deliver, even if they say they will cut pro-
duction, they will not deliver. So there is
no sense in wasting our time seeking pro-
duction cuts.”
Al-Naimi reiterated his country’s
resolve to maintain its current policy.
“Inefficient, uneconomic producers will
have to get out,” he said. “This is tough to
say and that’s a fact. We can coexist with
USD 20 (per bbl). We don’t want to, but if
we have to, we will.”
Slow Shale Recovery Expected
When oil prices do begin heading north,
several industry leaders said to not
expect companies to rush back to the
high levels of activity seen in the first half
of the decade.
Among them was Mark Richard,
senior vice president of business devel-
opment and marketing at Halliburton.
He said that while it might be technical-
ly feasible for shale activity to be flicked
on like a light switch, companies will be
using a dimmer switch instead.
“It’s not going to be able to ramp up all
at once,” he said. “We’ll see it turn back
on, but maybe the lights won’t be quite as
bright right at the beginning.”
The challenges facing a speedy shale
recovery are plenty. Hundreds of hori-
zontal rigs and thousands of pumping
trucks have been cold stacked. Many
JPT • APRIL 2016
are quickly rusting out and not likely
to return to service, ever. Thousands of
workers have been let go, a proportion of
whom will think twice about returning to
a business that is facing the prospect of a
long and volatile commodity cycle.
Another key factor that will not only
affect the shale sector, but the indus-
try as a whole, will be the end of cheap
money. Large banks are shrinking their
positions in the oil and gas industry and
private equity firms are shoring up their
bets as the global outlook turns bearish.
And because the downturn has cut so
deep, it is expected that many industry
players will be licking their wounds for
a long time to come. Richard explained
that with current prices so low, even if Mark Papa, a partner with Riverstone Holdings, speaking at IHS CERAWeek in
a notable rebound takes hold, “We still Houston.
don’t see the money and capital being
spent by our customers as they try to “The upturn will come but you can- In the meantime, the industry will be
replenish their coffers with cash.” not bet on it coming quickly or rapidly,” changed by the current economic expe-
Lance said. rience. New money will come into the
Looking Long Term Papa predicted that demand will grad- industry to pick up assets lacking indus-
The near-term outlook for the oil busi- ually eliminate the supply glut this year. try buyers at a time when even the com-
ness, particularly in North America, is Future supply growth will be stunted panies with solid balance sheets are in
brutal, but there appear to be rewards for because so many large projects have cash-conservation mode.
those who can hang on long term. That been delayed or canceled. “Financial sponsors new in industry
message was offered by current and for- “If (global demand) keeps growing by will change the way people think about
mer high-profile former chief executive 1 million B/D year after year, we will investment banks” for better or worse,
officers at the conference. see global demand rise from 95 million said John Browne, chairman of L1 Energy
“The last 4 or 5 years was a run-and- B/D to 100 million B/D in 4 to 5 years,” and former chief executive of BP. Inves-
gun period, with lots of new companies he said, adding, “I can see a case where tors who funded the shale boom are like-
starting up. In the next 6 to 12 months the biggest supplier in world is the US ly to invest this time “with a bit more
there will be a decimation of that indus- shale producers. The world needs that thoughtfulness than they used to.”
try with lots of bankruptcies,” said Mark incremental oil and the biggest available As a result of this experience, Papa
Papa, a partner in Riverstone Hold- source is US shale producers.” sees a more stable, financially conserva-
ings, who is best known for leading EOG
Resources, which was a pioneer in oil
shale development.
While consolidation is expected, little
has happened because buyers are offer-
ing significantly less than sellers think
their assets are worth. While there has
been speculation about acquisitions by
the biggest, strongest companies, in the
past they have been slow to act.
“The balance sheet capacity you
thought you had in January is reduced,”
said Ryan Lance, president and chief
executive officer of ConocoPhillips.
Maintaining the cash flow is a critical
consideration when making investment
decisions at a time when credit ratings
agencies have sharply reduced the rat- Rylan Lance, president and CEO of ConocoPhillips speaking at IHS CERAWeek
ings of some big names in oil and gas. in Houston.

JPT • APRIL 2016 39

 Russian Oil Producers Keep Pushing Up Production
Stephen Rassenfoss, JPT Emerging Technology Senior Editor

Russian oil production has remained on a growth path
despite the plunge in oil prices because producers
have built their business on producing oil for less than
USD 30/bbl.
When oil prices were higher, most of the revenue
past a certain price was paid in taxes to the Russian
government, said Matthew Sagers, managing
director of research for IHS, at the annual CERAWeek
conference in Houston. When prices fell, Russian tax
revenues shrunk but producers saw little change in
their revenues.
“Russian oil companies have always lived in a
USD 25/bbl to USD 30/bbl” environment, he said.
“The rest of the world has arrived at a place where
the Russian companies have been all the time.”
And companies there are not backing down. “Russia
is the only place in the world I know where capex
increased last year,” he said. Production there “is really
not going to come down.”
Even in the face of international sanctions related to
Russia’s aggressive role in the conflict in the Ukraine,
which have limited imports of oilfield technology
and loans from international financial institutions, the
country’s oil production rose to 10.4 million B/D in
January, up from 10.3 million B/D in December.
That means that Russia can honor its pledge to freeze
its production at January levels, and still produce at a
record level this year, Sager said.
Investment is expected to continue despite the slide
in oil prices this year, but that is not a certainty. The
government will need to resist the powerful urge to
raise taxes on the industry, which had been a major
source of revenue. But the country needs to be careful
because oil and gas is now such a large part of the
country’s economy.
A tax increase could force producers to cut back
on spending that has been financed by profits from
operations, which also allowed them to raise money
from a variety of sources, including Russian banks and
oil traders.
Growth in the sector has come from a little-noticed
sector of the Russian industry, independent producers,
Sager said. Three large independents represent most
of the sector. On the CERAWeek panel, the sector was
represented by the head of a small company owned by
international investors JKX Oil and Gas.
It is small now, with 7,000 BOE of gas in southern
Russia and 4,000 BOE outside the country, but it is
working on a growth plan, said Thomas Reed, chief
executive officer for JKX. The lure is the country’s
enormous store of conventional reserves. There are
enough low-risk conventional reserves (2P) to last for
another 60 years, he said.
Those huge conventional opportunities make far more
economic sense in this low-price environment than
large unconventional plays. The focus on conventional
development there helps explain why sanctions limiting
imports of oilfield technology for shale oil development in
Russia have had little effect on sales.
In practice, the ban on equipment and services for
shale oil development “does leave a large gray zone. Are
we talking about tight oil? Strictly speaking, that is not
shale oil in the language of the sanctions. In principle,
there is a vast zone” outside the restrictions, said Thane
Gustafson, senior director and adviser for Russian and
Caspian Energy for IHS.
For Reed, the availability of advanced technologies,
such as modern fracturing targeting specific zones, and
horizontal drilling, could be used to increase production
in the available conventional reservoirs, which come
with challenges.
“Production now is mostly from vertical wells with
openhole completions or perforated casing. There is
room for growth,” he said.

tive industry, “but it will be really, really
ugly to get through this valley.”
The Trouble With M&As
Despite two years of distressed prices
and lowering stock prices, there have
been fewer mergers and acquisitions
than many predicted. This has been espe-
cially true for the service sector, minus a
small number of moves that include the
yet-to-be approved Halliburton acquisi-
tion of Baker Hughes announced in 2014.
Osmar Abib, managing director and
global head of oil and gas at Credit Suisse,
listed several reasons, not the least of
which is that the service sector is already
fairly consolidated compared with oil and
gas companies. But he said that as long as
the oil price bottom remains elusive, buy-
ers and sellers will continue to find diffi-
culty in coming together.
“To do deals in this environment, I
think oil prices need to stabilize,” he said.
“If they keep bouncing around 5%-plus
every day or every week, that bid/ask
spread keeps bouncing around and peo-
ple don’t know what kind of environment
they are in.”
As things settle down, Abib said that
the prime targets for acquisitions will
naturally be small firms and those strug-
gling with debt. And with many ser-
vice company’s share prices hitting new
52-week lows, he expects more transac-
tions will involve incentivized stock deals
that offer sellers a potentially brighter
upside when oil and gas prices rise.
One place where merger and acquisi-
tions seemed more likely to happen but
have not materialized, is Asia—China in
particular. Abib said that the big money
in Asia simply has not come to the table
because access to financing has been lim-
ited amid lower confidence in the service
sector. “I think people are very spooked
about the downturn,” he said.
Middle East Outlook
In times past, oil prices were highly sen-
sitive to turmoil in the Middle East. The
region is now witness to more destabi-

40 JPT • APRIL 2016

lizing conflicts than at any other time
in recent history, yet the markets seem
unpersuaded by their ability to threaten
global supply. But there is the real pos-
sibility that low oil prices will threat-
en the solvency of Middle East pro-
ducers and accelerate the worsening
security situation.
Amos Hochstien, special envoy and
coordinator for international ener-
gy affairs at the US State Department,
is concerned that national budgets are
becoming unsustainable. He pointed out
that in addition to their high-cost social
programs, Middle East nations are also
increasing their spend on various wars
and national security efforts.
Questioning whether the region-
al power brokers wrongly expected a
V-shaped price recovery, he said, “If the
spending in 2016 [and] the drawdown
from reserves mirrors 2015, then the
Middle East will have a problem sooner
than anybody imagined.”
With regard to major suppliers, the
wild card is Iraq. The country has been
World Must ‘Tighten Valves’ on Methane Emissions
Joel Parshall, JPT Features Editor
The importance of reducing emissions
of methane, a short-lasting but power-
ful atmospheric greenhouse gas (GHG),
received close attention from panelists
at an IHS CERAWeek strategic dialogue,
Tightening the Valves on Global Meth-
ane Emissions.
A frequently asked question is “why
all this focus on methane,” said Mark
Brownstein, vice president for cli-
mate and energy at the Environmen-
tal Defense Fund (EDF). “Isn’t the
issue carbon dioxide [CO2]? Actually,
it’s both.”
Methane emissions remain in the
atmosphere for much less time than CO2
but are a far more powerful pollutant
while they last. “It’s thought that 25%
of the warming that we’re experienc-
ing right now on the planet is because
of methane emissions,” Brownstein
said. “A 45% reduction in oil and gas
industry methane emissions would have
the same impact over 20 years as clos-
JPT • APRIL 2016
besieged by the Islamic State of Iraq
and Syria (ISIS) and is gradually moving
toward “a disintegration of some sort,”
said Raad Alkadiri, managing director
of petroleum risk at IHS. The drop in oil
prices has robbed Iraq of about 80% of its
revenue and it may soon have to redraw
its borders as the oil-rich Kurdish region
plans to hold a referendum on indepen-
dence this year.
In 2015, the Kurdish regional gov-
ernment began bypassing Baghdad by
directly selling oil to the global market.
This was a blow to the central govern-
ment’s efforts to fund its ongoing war
against ISIS forces and maintain popular
support. Alkadiri said the Kurdish chess
moves against Baghdad have been backed
by Turkish policy, which for several years
has been seeking a more powerful pos-
ture in Middle East affairs.
“That’s one example of a number that
you can look around the region and say that
the regional states are not working togeth-
er to contain this violence—the regional
states are exacerbating it,” he said.
ing one-third of the world’s coal [-fired
power] plants.”
Throughout Supply Chain
Methane emissions occur throughout the
natural gas supply chain, in many cases
coming from older equipment and leaks
across the system, Brownstein noted. A
recent EDF study estimated that methane
emissions in the Barnett Shale of north
Texas are 90% higher than previously
estimated in the United States Environ-
mental Protection Agency (EPA) inven-
tory, he said.
The industry’s methane emissions
reflect a “fat tail” problem, in which a
large share of the emissions come from
“a relatively discrete number of sourc-
es,” Brownstein said. However, he added,
“Part of the problem is these sources are
not necessarily predictable.”
Thus, the EDF strongly supports
adopting regulations to require system-
atic leak detection and repair. An EDF-
On the flip side is the situation involv-
ing Iran. Earlier this year, the US and
the European Union lifted sanctions that
allowed the cash-strapped country to
re-enter the oil export market for the
first time since 2012. While considered a
major diplomatic milestone, it has damp-
ened the hope that a production freeze
by some OPEC members and Russia may
hasten an upward price correction.
Bijan Khajehpour, managing partner of
the Iranian consulting firm Atieh Inter-
national, said Iran’s mid-term produc-
tion goal is to return to its 2012 levels of
4.2 million B/D, and only then might con-
sider freezing production. “Getting there
will take a few years,” he said.
To meet near-term targets, he added
that Iran believes it can ramp up pro-
duction by 400,000 to 500,000 B/D
by the end of the year. Khajehpour
also said that the country is in the pro-
cess of signing contracts with Europe-
an buyers for about 250,000 B/D as it
figures out how to bring the rest onto
the market.
commissioned study by ICF International
2 years ago estimated that a 40% reduc-
tion in US oil and gas industry methane
emissions was achievable at a cost of USD
0.01/Mcf of gas produced.
In the question-and-answer session
following the panel discussion, Brown-
stein said, “The methane issue goes right
to the heart of the assertion that natural
gas is a cleaner, low-carbon alternative to
coal or oil. …. The jury is still out.”
The methane leakage rate [well to
city] needs to be below approximately
2.6% “for natural gas to be considered
advantaged over coal in all time periods,”
Brownstein said. “The data is not very
good globally, but right now the data sug-
gest that the global emission rate is over
3[%]. So this is a real cause for concern.”
Nate Teti, vice president of communi-
cations for US development and produc-
tion at Statoil, said his company has the
goal of becoming the industry’s most car-
bon-efficient oil and gas producer. Statoil
41
 Is Industry Ready for Brownfields’ Prime Time?
Joel Parshall, JPT Features Editor

The case for focusing on boosting recovery from older
fields in a depressed drilling climate is compelling.
At a breakfast session on squeezing more oil from
brownfields in a low oil price environment, panelists
discussed today’s improved field recovery capabilities.
While touting the benefits of advanced technology, they
questioned the industry’s readiness from a financial,
personnel, organizational, and technical standpoint to
take full advantage of brownfield opportunities.
Tracing the evolution of digital, real-time downhole
data collection, Ashok Belani, executive vice president
of technology at Schlumberger, said, “We have come to
what I would call generally measurement and control
technology which we are able to put in the lower
completion at the sandface, which allows us to actually
put intelligence and controls closer to where the action
is within the reservoir and maybe somehow separate the
rest of the production system.”
With a comprehensive array of digital technology
available to place in the reservoir, enabling real-
time control of reservoir fluid entering the well,
“a new era” has arrived, Belani said. “You can do
reliable measurement and control at the sandface for
5 years, 10 years, and longer than that,” he said. “I
believe that in the future we are going to see actually
instrumented reservoirs.” As this progresses, information
technology (IT) and production operations will merge,
he predicted.
Digital Oil Field in Place
Downhole digital technology is gaining increased
acceptance, although the rate of technology adoption
varies between companies, said David Tredinnick,
president for Middle East and Africa at Emerson Process
Management. “So the digital oil field as a prospect in
view is, in fact, in place,” he said.
Steven Benn, manager of exploration and production
technologies at Santos, said that technology has
become more important in the current low-price oil
environment as companies have become “people poor.”
“Areas of [technology] adoption have to do
with cost,” said Ahmed Hashmi, head of upstream
technologies at BP. Smart-well completions, for example,
have been more rapidly embraced in onshore operations
than offshore and will continue to be “more challenging”
to approve in deepwater operations, he said. Retrofits
in offshore facilities have generally been confined to the
topsides, Hashmi said.
Brownfields Perception Must Change
Brownfields typically are seen as something for staffs to
maintain or look after, and that view needs to change,
Belani said. The perception is that “we are not doing
something smarter like the exploration people do or the
production people do,” he said.
While an operator may decide to apply 4D seismic,
if it appears that a certain part of a field has not been
produced, the seismic survey and the ensuing field
development plan are handled by the exploration
department. Both are time-consuming.
The identification and production of additional
reserves “needs to happen in real time. It can happen in
real time, but that’s not the way that E&P companies are
structured,” Belani said. “These brownfields are not so
brown. …. Why not put all that intelligence in [the well]
in the beginning?”
Scalable Technology
Asked about the difficulties of obtaining approval
for investment in advanced technology for boosting
brownfields reservoir recovery, Tredinnick said that a
virtue of the technology is that it is scalable and can be
applied in stages over time. Benn said the difficulties of
sustaining investment could be mitigated by the rapid
deliverables attainable by bringing further IT into real-
time brownfields recovery.
The industry has made major cuts in its workforce
since the price of oil began to drop, and the panel
was asked about companies’ response to the loss of
talent affecting brownfields reservoir management.
Benn said that by using the best technology,
companies would be able to attract new talent
as the industry recovers.
Belani said that a problem remained if the industry
wanted to achieve the most advanced brownfields
reservoir management proficiency. Brownfields
production engineers lack some of the advanced
technology expertise, and advanced technology
experts outside the industry lack the real-time reservoir
management knowledge. People with the full skill set
“don’t exist,” he said, “and to train these kinds of people,
it will be a challenge.”

views methane emissions as a safety,
environmental, and cost issue, he said.
Statoil’s efforts to reduce methane
emissions involves work with multi-
ple stakeholders on facilities optimiza-
tion, inclusion of methane in a voluntary
company fugitive emissions reduction
program, and initiatives in scientific
research and technology development,
Teti said.
Braulio Pikman, senior partner at
ERM, an environmental consulting firm,
argued that heightened attention be
given to reducing intentional methane
releases from flaring and venting and to
preventing significant accidents.
The impact of a single accident, such
as the recent Aliso Canyon leak near Los
Angeles, can outweigh years of gains
from detection and control programs,
he said.
Pikman emphasized the impact
of permitted flaring operations and
said that flaring emissions could be

42 JPT • APRIL 2016

reduced “by nearly 99.99%” through
replacing open flares with closed
flare systems.
Carey Bylin, international programs
leader for oil and gas at the US EPA,
said, “Reducing methane emissions is
an important part of the overall climate
strategy” of the EPA.
Administration Actions
The Obama Administration over the last
2 years has undertaken several mea-
sures involving voluntary and regulatory
action that include or focus on the reduc-
tion of methane emissions, she noted.
These include
◗ The White House Strategy to Reduce
Methane Emissions, announced in
March 2014
◗ A new rule to cut methane
emissions by 40% to 45% from
2012 levels by 2025, implemented
in January 2015
◗ The addition of methane control
to EPA’s New Source Performance
Standards in August 2015
◗ Control technique guidelines to
reduce the emission of volatile
organic compounds from equipment
and processes used in the oil and
gas sector, proposed in August 2015
and opened for comments with
final guidelines expected this spring.
The EPA’s GHG reporting program is in
its sixth year of collecting data from the
oil and gas industry, Bylin said.
Promise of Natural Gas
Rob Jackson, professor of earth scienc-
es at Stanford University, spoke of the
“promise of natural gas,” if methane
emissions along the whole supply chain
could be reduced.
“Think about the opportunity to
reduce those leaks and build a social
contract—to strengthen the social con-
tract—for a public that wants to use nat-
ural gas,” Jackson said.
Jackson was lead author of a study
published in the journal Environmental
Science & Technology in September that
documented leaking methane in Man-
hattan and estimated that the urban cen-
ter had 10 times the number of leaks per
mile in its aging natural gas pipeline sys-
tem as other cities with newer infrastruc-
ture. Rooftop surveying done as part of
the study showed methane levels to be
double those listed in New York State
published inventories.
A similar study done earlier in Bos-
ton spurred Massachusetts legislators to
enact an accelerated pipeline replace-
ment program, Jackson said.
He said that we are witnessing “the
sensor revolution,” with the cost of sen-
sors having fallen dramatically and set to
fall further. For the industry, this decline
is “providing opportunities and challeng-
es,” Jackson said. “It’s going to change the
industry relationship not just with the
regulators but I think with the public.”
In a few years, there will likely be cit-
izen monitors of methane “hot spots.”
Jackson said that “the access to informa-
tion is going to grow exponentially” and
that the industry needs to get “out front
of that.” JPT

Join an SPE
Technical Section
SPE Technical Sections are communities of professional members who come together to
share ideas, promote competence, and develop projects related to their technical interest.
They meet virtually for the most part, but are encouraged to hold a face-to-face meeting
at least once a year.

To learn more, visit www.spe.org/industry/technical-sections.

For more information on starting a Technical Section, contact technicalsections@spe.org.

JPT • APRIL 2016 43

 SPE BOARD NOMINATIONS
SPE Board Announces Nominees:
2018 President and 2017 Directors
Stephen Whitfield, Staff Writer
Darcy Spady has been nominated for 2018
SPE President, and seven other members were
nominated to fill vacancies on the 2017 SPE
Board of Directors.
The SPE Nominating Committee considers
all nominations submitted, votes on a slate of
directors, and recommends it for approval at the
SPE Board’s March meeting. These nominees
stand as elected unless a valid petition for ballot
election is received by 1 June.
2018 SPE President
Darcy Spady is the managing director of a
subsidiary of Broadview Energy, a private,
independent oil and gas company based in
western Canada.
Spady’s background is in gas, heavy oil,
and conventional oil for the service and
operator sectors. Before his time at Broad-
view, he held several executive positions, including director
of sales at Sanjel Canada, managing director at St. Brendan’s
Exploration and Carina Natural Resources, and chief execu-
tive officer (CEO) at Contract Exploration. He has also served
as chief operating officer at PetroGlobe, director of opti-
mization at Triana Energy, and vice president of Columbia
Natural Resources. In addition, he worked at Schlumberger
for 10 years.
Spady is an active independent director, chairing the boards
of Green Imaging Technologies and MNP Petroleum. He previ-
ously served on the boards of Edge Resources, Contact Explo-
ration, Guildhall Minerals, and Poplar Point Exploration.
Active in SPE since 1986, Spady currently serves on the SPE
International Board as regional director for Canada and is a
member of the Calgary Section and the newly formed Vancou-
ver Section. Spady has held officer positions in the Calgary,
Illinois Basin, and Appalachian sections. In 2012, he won the
SPE Regional Service Award for his work in the Canada region.
Spady holds a BSc in petroleum engineering from the Uni-
versity of Alberta in Edmonton, and is a professional engineer
in the Canadian provinces of Alberta and New Brunswick.
44
At-Large Director
Helena Wu is a senior reservoir engineer at
Santos. Since starting in the company’s
graduate program in 2008, she has com-
pleted field- and office-based rotations in
production engineering, reservoir engi-
neering, and business/production planning.
Wu is the chair of SPE’s South Austra-
lian Section. She also serves as secretary and treasurer for
the SPE Australia/New Zealand/Papua New Guinea coun-
cil. She is a member of the SPE Asia Pacific Regional Tech-
nical Advisory Committee and a leader in the SPE Interna-
tional Young Member Engagement Committee. In 2015, she
received the SPE International Young Member Outstanding
Service Award, and was named Exceptional Young Woman in
Australian Resources by the Women in Resources National
Awards group.
Wu holds a BS in mechanical engineering and an MS in engi-
neering management from the Queensland University of Tech-
nology. She also holds an MS in petroleum engineering from
the University of Adelaide and a graduate diploma in energy
and resources management from University College London. In
2007, she was awarded a University Medal from the Queensland
University of Technology.
Canada Regional Director
Cam Matthews is a C-FER fellow at C-FER
Technologies, an applied research and tech-
nology development organization based in
Edmonton, Alberta, Canada.
Matthews has 35 years of technical and
managerial experience in laboratory, ana-
lytical, and field investigations related to
drilling, completion, and production engineering operations.
His joint industry project and technology development activi-
ties include the conception and commercialization of downhole
oil/water separation systems, and the development of a multi-
company failure-tracking system for managing artificial lift sys-
tem reliability.
His work has also helped to develop best practices for the
design and construction of thermal recovery wells, apply quan-
titative risk analysis methods to improve well abandonment
integrity, and develop new completion and production systems
for horizontal wells.
JPT • APRIL 2016
 Matthews is a member of the SPE Heavy Oil Technical Confer-
ence Committee. He has written several SPE papers, coauthored
a chapter on progressing-cavity-pump systems in the SPE Petro-
leum Engineering Handbook, and has taught several short
courses. He was a member of the SPE Canada Board, SPE Cana-
dian Trust Fund Board, and the editorial committee for JPT.
Matthews is a professional engineer in Alberta, holds five
patents related to novel drilling and production processes, and
has served as an expert witness in intellectual property cases.
Matthews holds a BSc in civil engineering from the University
of Manitoba and an MSc in civil engineering from the Univer-
sity of Alberta.
Eastern North America Regional Director
Joseph Frantz is the vice president of engi-
neering technology for Range Resources.
Previously, Frantz led Range’s produc-
tion operations and facilities construc-
tion department; production, facilities,
and reservoir engineering department; and
the completions and water management
department. Before joining Range he was president and CEO of
Unbridled Energy. He has also worked for operators and con-
sultants in the drilling, completion, production, and reservoir
fields with a specialty in shale reservoirs.
Frantz was an SPE Distinguished Lecturer for 2014–2015 and
has authored many technical papers and articles. He has held
several leadership positions within SPE, including chairing the
Pittsburgh Section. He holds a BS in petroleum and natural gas
engineering from the Pennsylvania State University.
North Sea Regional Director
Karl Ludvig Heskestad is a senior engineer
at Det Norske Oljeselskap, where he works
with the technical business development
team. Heskestad previously provided reser-
voir engineering support to Det Norske’s
Ivar Aasen and Johan Sverdrup assets. He
has also worked in corporate reserves book-
ing for the company.
Heskestad currently chairs the SPE Norway Council and has
previously served on the SPE Online Communities Coordinat-
ing Committee. From 2010 to 2012, he chaired the SPE Oslo
Section. In 2015, he received the SPE Regional Service Award.
He holds a master’s degree in petroleum engineering from
the Norwegian University of Science and Technology in Trond-
heim, as well as a master’s degree in energy management from
the BI Norwegian Business School in Oslo.
Mid-Continent North America Regional Director
Chris Jenkins is an independent production
and completions engineer based in Oklaho-
ma City. He has experience working in major
oil fields, such as Prudhoe Bay in Alaska,
Ghawar in Saudi Arabia, and the Barnett
Shale play in Oklahoma.
JPT • APRIL 2016
How SPE Board Members
Are Selected
SPE is governed by a Board of Directors comprising
29 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.
Here is a look at the nomination and election
processes for Board members.
Nominating a Candidate
The nomination period opens in September each year
and ends on 1 December for the position of president
and 15 December for the other open positions.
Any SPE member may nominate a candidate
for a position on the Board. The process involves
submitting an online nomination form and supporting
documents, such as a curriculum vitae, résumé, and
letters of support.
The Election Process
Candidate nominations submitted online are reviewed
by the SPE Nominating Committee. Chaired by the
immediate past president, the committee meets in
January to make recommendations for the available
positions. These recommendations are submitted
to the SPE Board of Directors for approval at the
Board’s meeting in March. This year, the meeting was
held on 9 March in Richardson, Texas.
Following Board Approval
SPE members will have the opportunity to review
the Board-approved nominees’ biographical
information in the April issue of JPT and on
www.spe.org.
Under the SPE Constitution, nominees approved
by the Board stand as elected unless SPE members
nominate additional candidates by 1 June. Additional
nominations require a petition from at least 1% of SPE
membership. For regional director nominations, the
petition must be signed by at least 1% of the region’s
membership, and no more than 75% of the petitioners
may come from any one section within the given
region. The constitution also specifies provisions for
a ballot election if any qualified petitions are received
by 1 June.
The Board Takes Office
If the board slate is elected, the person nominated
as president would take office as president-elect at
the close of the SPE Annual Technical Conference
and Exhibition. This year, the conference will be held
during 26–28 September in Dubai.
45
 Jenkins has served on numerous local and international SPE
committees. He spent three terms as a section chair and was a
member of the Distinguished Lecturer Committee and the Pro-
duction and Operations Advisory Committee. He received the
SPE Regional Young Member Outstanding Service Award in
2008 and the SPE International Young Member Outstanding
Service Award in 2010.
Jenkins holds a BSc in petroleum engineering from the Colo-
rado School of Mines and an MBA in energy from the Univer-
sity of Oklahoma.
Projects, Facilities, and Construction
Technical Director
Hisham Saadawi is the president and
founder of Ringstone Petroleum Consul-
tants, based in Abu Dhabi. Saadawi has 35
years of experience in the design, construc-
tion, startup, operation, and project man-
agement of oil and gas production facilities.
He was vice president of the ADCO Techni-
cal Center until his retirement in 2014.
Saadawi is an SPE Course Instructor and twice served as an
SPE Distinguished Lecturer, in 2010–2011 and 2015–2016. He
was a member of the editorial committee for JPT from 2011 to
2013 and is the recipient of the 2011 SPE Regional Award for
Projects, Facilities, and Construction. He has served on the
committees of numerous SPE conferences and workshops and
was the chairperson for the Projects, Facilities, and Construc-
Volunteering looks
good on you.
In the new SPE League of Volunteers,
giving back suits you well.
As a volunteer for SPE, you provide the energy that
makes our Society work. When you join and give
back, you are supporting your peers and the future
of E&P. You are also enhancing your leadership
and collaborative skills and expanding your
professional profile as you showcase
your knowledge and talents to the industry.
Engage. Support. Contribute.
Learn more and join us at www.spe.org/volunteer.
Share your story: #SPElov
tion Subcommittee at the 2014 SPE Annual Technical Confer-
ence and Exhibition (ATCE).
Saadawi is a chartered engineer in the United Kingdom and
holds a PhD from the University of Manchester.
Drilling and Completions Technical Director
Jeff Moss is a senior technical consultant at
ExxonMobil Upstream Research Company.
His work focuses on drilling and com-
pletions technologies, with a particular
emphasis on unconventionals and technol-
ogy commercialization.
Moss joined Mobil Oil as a rig super-
visor in 1981. From 1988 to 2000, he worked for Mobil as a
drilling engineer in New Orleans, the United Kingdom, and
eastern Canada. After Mobil’s merger with Exxon in 2000,
he worked as a global drilling technology adviser, focusing
on the application of new and emerging technologies within
ExxonMobil’s portfolio.
Moss currently serves as chairman of the SPE Forum Series
Coordinating Committee (FSCC). He has been a member of the
SPE FSCC and the SPE Forum Series Implementation Commit-
tee–Western Hemisphere since 1995. He has also served on the
SPE Drilling and Completions Advisory Committee and on the
program committees of ATCE and the International Associa-
tion of Drilling Contractors/SPE Drilling Conference and Exhi-
bition. He holds a BS in petroleum engineering from Mississip-
pi State University. JPT
MANAGEMENT
The Power of Cognitive Technology
Santiago Quesada, Director of Exploration and Production Technology, Repsol Technology Center
It has been over a year since Repsol fields—both of which can have a signifi­
and IBM announced their plans to joint­ cant impact on the efficiency of global
ly develop cognitive technologies that E&P operations of Repsol and other oil
would allow human decision makers and gas companies.
operating in the oil and gas industry Currently, offshore E&P is a capital­
to interact with computers more effec­ intensive exercise. The drilling of a sin­
tively, enhancing the industry’s ability gle well can cost up to USD 400 million
to source, analyze, and filter big data to and the data used to determine the best
make it more consumable. location to search and drill for oil are
Building on what is common­ often extremely limited and inaccurate.
ly referred to as artificial intelligence, By developing these cognitive technolo­
experts in this field are developing gies, Repsol and IBM have been able to
“super computers,” which are able to bring decision makers together, helping
understand, learn from, and interact them to share insights, gather data sets
with humans. Many different com­ from multiple sources more easily, and
panies in various sectors are currently enable better, more prescriptive analy­
developing cognitive technologies for sis. The ability to overcome limitations
specific activities, with the most pio­ posed by big data has led to less uncer­
neering being applied to the explora­ tainty and, ultimately, reduced opera­
tion and production (E&P) sector of oil tional risk.
and gas.
In an environment of low oil prices Optimizing Reservoir
and ever tighter margins, cognitive Production
technology can help energy companies Looking specifically to the optimiza­
increase the productivity of their oil and tion of reservoir production, a cogni­
gas fields and minimize exploration risk tive environment can adapt to the indi­
when searching for new resources. The vidual needs of a varied set of technical
objectives of Repsol’s collaboration with experts, equipping them with the tools
IBM were twofold: to leverage cognitive needed to enhance their abilities to ana­
computing capabilities to specifically lyze data from varied sources. Tech­
help Repsol reduce the risk and uncer­ nicians have also been able to tie in
tainty of future oil field acquisitions existing production models with the
and to maximize the yield of existing oil analyzed data and adjust them to more
Santiago Quesada is director of exploration and production
technology at the Repsol Technology Center and oversees centers
in Madrid, Houston, and Rio de Janeiro. Quesada joined Repsol in
1998 as a specialist in basin and petroleum system analysis in
Madrid. He then worked for the company in Argentina as
exploration manager before returning to Spain in 2008 as
manager of quality assurance of exploration projects. He was
appointed technical director of exploration geology in 2012
before assuming his current position in 2013. Quesada holds an MS degree in geology
from the University of the Basque Country.
JPT • APRIL 2016
accurately match current production as
time goes on.
Inspiration came in part from Rep­
sol’s Excalibur project, launched with
the objective of optimizing deposits.
The project, tested in remote offshore
fields in Ecuador and Brazil, was a com­
bination of tools developed at the Rep­
sol Technology Center. Excalibur uses
mathematical techniques to compre­
hensively identify and evaluate depos­
its, optimize their development, and
minimize risk. The tool enables a depos­
it portfolio to be quickly and accurately
ranked and new investment opportu­
nities to be identified that are difficult
to detect using traditional techniques.
In the tests carried out on a North Sea
deposit, Excalibur achieved an improve­
ment of 9% on the best solution pub­
lished to date by other research compa­
nies and institutions.
Aiding Decision Making
The enhancement of the decision­
making process for the acquisition of
new oil fields, both onshore and off­
shore, entails strategic decisions across
another group of technical experts. The
purchase of new assets requires large
financial investments based on very
uncertain data. However, a cognitive
system is able to interpret these data
through the use of natural language pro­
cessing. With the recent collaboration, a
human expert is able to guide the system
to quickly produce summaries for spe­
cific queries and run simulations that are
able to inform the decision­making pro­
cess and reduce the inherent uncertainty.
The technology being developed
has drawn inspiration from another
collaborative project, known as the Peg­
asus Project. The project has been able
47
to improve the safety, efficiency, and
profitability of upstream operations
by constructing more fluid concep-
tual and geological models to explore
hypothetical scenarios to guarantee the
best decisions.
The objective of the Pegasus Project
was to strengthen the capacities of tech-
nical equipment, through a much more
efficient interaction between humans
and computers. This tool is capable of
analyzing hundreds of thousands of
documents, reports, and data, to look
for trends and connections between
them, and propose the most appropri-
ate hypotheses and solutions at any
given moment.
The technology has undergone rig-
orous testing last year by a team of
approximately 20 experts at IBM’s Cog-
nitive Environments Laboratory in New
York and Repsol’s Technology Center in
Madrid. Thus far, Repsol has invested
approximately USD 20 million to devel-
op both applications, with early results
expected during the first half of 2016.
We hope that by the end of year 2, we
will have a patented technology that can
address the optimization of offshore
and onshore fields, and that by the end
of year 3, we will have a cognitive system
that will assist in the acquisition of new
oil and gas plays. We plan to launch sev-
eral pilots during the course of 2016 and
hope to apply the technology to all five
continents in which we operate.
During the 3-year period, scientists
will also experiment with a combina-
tion of traditional and new interfaces
that are based upon gestures, robot-
ics, and advanced visualization and
navigation techniques. By using these
techniques, researchers can leverage
sophisticated models of human charac-
teristics, preferences, and biases that
may be present in the decision-making
process. The technology will also intro-
duce new real-time factors that should
be considered when making decisions,
such as current news events around eco-
nomic instability, political unrest, and
natural disasters.
Cognitive environments can look and
feel very different—from boardrooms
in the workplace, to cars, to homes,
to mobile devices—but by being con-
nected to one another, they can facil-
itate human-computer collaboration
at “the speed of thought,” leading to
more informed and robust decision-
making processes. This new applica-
tion will not only improve the way oil
companies visualize and map oil plays,
it will help them to make strategic deci-
sions about the long-term development
of their E&P activities. As we continue to
develop the use of these cognitive tech-
nologies, we hope to be able to apply
them to other areas of our business
such as our downstream operations and
refineries in order to help secure future
energy supplies. JPT

17–18 May 2016 | Royal Sonesta Hotel | Houston, Texas, USA

SPE/IAEE Hydrocarbon
Economics and Evaluation Symposium
Fundamental Drivers, Commodity Cycles, and the Dynamics of Oil and Gas Valuation
Featured Speaker: Scott Nyquist, Director, McKinsey & Company

REGISTER TODAY! | www.spe.org/go/RegHEES

Join industry leaders to discuss:

 Acquisition and Divestitures
 Portfolio Management
 Exploration and Appraisal Evaluation
 Price and Cost Environment
OTC PREVIEW
OTC Offers Top Forum for Ideas
To Help Industry Move Forward
Joel Parshall, JPT Features Editor
With the outlook for the oil and gas
industry very much unsettled, the Off-
shore Technology Conference (OTC) to
be held 2–5 May at NRG Park in Hous-
ton will offer global energy profession-
als a world-leading forum for exchang-
ing ideas and opinions and obtaining
the in-depth knowledge of scientific
and technological advances and inno-
vations that will help the industry meet
today’s challenges and find the best
path forward.
One of the largest oil and gas indus-
try conferences in the world, OTC last
year drew an attendance of more than
94,700. In addition to the technical and
topical sessions, the conference hosts
an expansive exhibition of technology,
equipment, and services. OTC is expect-
ing more than 2,570 exhibiting com-
panies and organizations representing
47 countries.
OTC Awards Luncheon
At the OTC Distin-
guished Achievement
Awards Luncheon on
Tuesday, the confer-
ence will recognize
Robert (Don) Varde-
Vardeman
man of Anadarko for
individual achieve-
ment, the Marine
Technology Society
Dynamic Positioning
(DP) Committee for
institutional achieve-
ment, and George
Hirasaki Hirasaki and Yuri
Makogon with the
OTC Heritage Award.
Vardeman will receive the OTC Dis-
tinguished Achievement Award for Indi-
viduals for his significant leadership and
JPT • APRIL 2016
extensive contribu-
tions to global deep-
water developments.
He is vice president
of worldwide proj-
ect management for
Makogon Anadarko, which has
sizable operations
in the onshore United States, Algeria,
Mozambique, West Africa, and the Gulf
of Mexico. Vardeman was elected last
year to the Offshore Energy Center’s
Pioneer Hall of Fame. He is a member
of Texas A&M University’s Engineer-
ing Advisory Council and has served
as the chairman of the OTC Board
of Directors.
The Marine Technology Society DP
Committee will receive the OTC Distin-
guished Achievement Award for Institu-
tions for its work in facilitating incident-
free DP operations through the sharing
of knowledge. Composed of dedicat-
ed volunteers, the committee conducts
conferences and workshops for vessel
owners, operators, marine class societ-
ies, engineers, and regulators. It shares
extensive guidance documents related
to DP and has developed a growing set
of unique documents that address top-
ics of significant interest and impact.
Hirasaki will be recognized for his
extensive research on reservoir simu-
lation, enhanced oil recovery, forma-
tion evaluation, well logging, and reser-
voir wettability. He had a 26-year career
with Shell before joining the chemical
engineering faculty at Rice Universi-
ty in 1993. An active member of the
National Academy of Engineers, Hira-
saki has received honors such as the
Improved Oil Recovery Pioneer and
Society of Core Analysts Technical
Achievement awards.
Makogon will be recognized for his
expert knowledge of gas hydrates and
astute research scholarship on the
water/gas phase behavior in the Earth’s
stratum. He has discovered the exis-
tence of tremendous gas reserves in
the hydrate form and expanded the
knowledge of a number of important
new physical gas hydrate properties.
During nearly 6 decades, Makogon
has authored 270 scientific papers, 29
patents, and eight books. He is also
an artist and has created more than
20 paintings.
Technical Program
OTC received more than 1,000 abstracts
for the technical program. Some high-
lights among the 45 sessions will be pre-
sentations on new technologies that are
driving down topsides costs, the world’s
first subsea compression facilities, alter-
native offshore gas monetization tech-
nologies, advances in offshore enhanced
oil recovery, insights on human factors
and organizational management, and
integrated asset optimization for off-
shore fields.
Panel sessions are scheduled on
a variety of industry topics. Monday
morning will begin with a session host-
ed by Women in Industry Sharing Expe-
riences (WISE), “From Sponsorship to
Significance: Building Effective Support
Systems in Today’s Energy Industry,”
with panelists Martha Feeback of Cata-
lyst, Ann Pickard of KBR, David Redeker
of FORE the People Solutions, Jenni-
fer Hartsock of Cameron, and Elohor
Aiboni of Shell.
On Monday afternoon, there will be
a session examining perspectives on
international oil company investments
in Brazil’s oil and gas business, moder-
49
 Panels, such as this session from last year’s conference, provide a forum for the global exchange of ideas to help the
industry move forward.
ated by Renato Bertani of Barra Energia,
and a session on the energy outlook and
future of innovations for deepwater in a
cost-competitive environment with pan-
elists Robert Armstrong of the Massa-
chusetts Institute of Technology (MIT)
Energy Initiative, Thomas Moroney of
Shell, Olivier Le Peuch of Schlumberger,
Derek Mathieson of Baker Hughes, and
Kripa Varanasi of MIT.
On Tuesday, there will be two panel
sessions on Mexican energy reform.
In the morning, the session “Mexico’s
Sweeping and Historic Energy Reform”
will include panelists Carlos Morales Gil
of PetroBal, Edgar Rangel of CNH, Alex-
ander Rovirosa of Roma Energy Hold-
ings, Timothy Duncan of Talos Energy,
José Gonzalez-Anaya of Pemex, Chris-
tine Healy of Statoil, and Mexican Ener-
gy Minister Pedro Joaquin Coldwell.
On Tuesday afternoon, the session
“Mexico Energy Reform II: Changes to
the Service Sector and First Look at New
Deepwater Plays Seen in New Multi-
client Exploration Data” will include
panelists Sergio Aceves of DIAVAZ, Luis
50
Escalante of FMC, Ian Cook of Weath-
erford, Michael Hiner of EMGS, Brian
Horn of ION Geophysical, Mike Saun-
ders of Spectrum Geo, and Brad Torry
of TGS.
On Wednesday morning, a session on
coping with lower oil prices, offering
perspectives from industry leaders, will
include panelists Pete Miller of Trans-
ocean, Lorenzo Simonelli of GE, and
Wael Sawan of Shell.
On Wednesday afternoon, a ses-
sion on  energizing worldwide oil and
gas developments will include panel-
ists Martijn Dekker of Shell, Michael
McEvilly of Hess, Mike Beattie of
Anadarko, Bruce Laws of Maersk, Kassia
Yanosek of McKinsey, and Deanna
Goodwin of Technip.
On Thursday morning, a session
on cybersecurity assurance (data and
critical infrastructure protection) will
include panelists Andrew Howard of
Georgia Institute of Technology, Jeff
Potter of Emerson Process Manage-
ment, Jim Motes of Rockwell Automa-
tion, Srinivas Mukkamala of RiskSense,
Jonathan Pollet of Red Tiger Securi-
ty, and Roger Hill of Veracity Security
Intelligence. A session hosted by the
Center for Offshore Safety, “Improv-
ing Safety Through Industry Collabora-
tion,” will include panelists Brad Smolen
of BP, Rhett Winter of IADC, and Rich-
ard Benzie of IMCA.
On Thursday afternoon, the session
“What’s Next for SEMS” will include
panelists Sandra Fury of Chevron,
Charles Duhon of Arena Offshore, and
Peter Velez of Peter Velez Engineering.
Special Events
Topical Breakfasts—Numerous top-
ical breakfasts are slated throughout
the conference, including “5,000 Wells
and Only 5 Separators: An Industry Per-
spective on Subsea Separation Future,”
“Tools for Process Safety in Offshore
and Upstream Operations,” “Deepwater
Exploration and Development: Creating
Value Has Rarely Been Tougher,” and
“Offshore Safety Regulatory Collabora-
tion and Oversight,” which is sponsored
by the Center for Offshore Safety.
JPT • APRIL 2016
Industry Breakfasts—Starting on
Tuesday, there will be an industry break-
fast every morning, which will focus
on the state of the industry in Egypt
(Tuesday), Ireland (Wednesday), and
Guyana (Thursday).
Topical Luncheons—Eleven topi-
cal luncheons will be held during OTC.
The following is a list of the topics
and speakers.
◗ “WISE: Career GPS: Mapping Your
Professional Future.”
Speakers: Amanda Brock, Water
Standard; Jody Markopoulos,
GE Oil & Gas; and Myrtle Jones,
Halliburton.
◗ “Pre-Salt Brazil: Strategic Thinking
with a Pragmatic Approach for a
Massive Investment.”
Speaker: Jorge Camargo, IBP.
◗ “Major Capital Projects Yesterday,
Today and Tomorrow: Is There a
Need for Change?”
Speaker: Mick Kraly, Chevron.
◗ “Reinforcing Your Social License To
Operate.”
Speakers: Gerardo Uria and Jack
Gerard, the American Petroleum
Institute.
◗ “The Search for MH-370: Survey
Strategy and Technology.”
Speaker: Edward Saade, Fugro.
◗ “Bringing Mega Gas Discoveries
to the Market.”
Speaker: Muhammad Jusoh,
Petronas.
◗ “Gas Hydrate Exploration and
Production Testing: Encouraging
Results and Future Plans.”
Speakers: Dan McConnell, Fugro;
Norman Carnahan, Carnahan
Corporation; Timothy Collett, US
Geological Survey; Ray Boswell,
US Department of Energy, and
Pushpendra Kumar, Keshav Dev
Malviya Institute of Petroleum
Exploration, ONGC.
◗ “Forging a World-leading Supply
Chain.”
Speaker: Harry Brekelmans, Royal
Dutch Shell.
◗ “Emerging Oil and Gas
Developments Offshore Israel,”
Speaker: Yuval Steinitz,
Israeli Minister of National
JPT • APRIL 2016
Infrastructures, Energy, and Water
Resources.
◗ “Energy Institute High School.”
Speakers: Caio Carugati, Matthew
Diaz, Talon Logan, Timothy Chung,
Gerardo Escobedo, Amber Farias,
Shawn Attar, Thor Preimesberger,
Austin Schneider, and Bobak
Torabi, Energy Institute High
School.
◗ “Center for Offshore Safety
Luncheon: Perspectives Regarding
Safety and Safety Management
from Senior Regulatory
Leadership.”
Speakers: Brian Salerno, US Bureau
of Safety and Environmental
Enforcement; and Paul Thomas,
US Coast Guard.
The Next Wave—A 1-day event for
young professionals, The Next Wave
will be held on Monday. The program
“Thriving on Volatility: Opportunities,
Challenges, and Solutions” will offer
insight from oil and gas industry experts
on the boom and bust cycle, advice
on sharpening one’s soft and techni-
cal skills to remain relevant at work,
ideas on what the next big thing in the
industry will be, and thoughts on the
way forward for young professionals in
today’s environment.
Graham Hill, executive vice president
for global business development and
strategy at KBR, will give the keynote
talk. Laura Guenther, founding direc-
tor and consultant at the University of
Texas McCombs School will moderate
a panel that includes Rafael Jaramil-
lo, president of systems and solutions
at Emerson; Olivier Le Peuch, presi-
dent of completions at Schlumberger;
Starlee Sykes, vice president of glob-
al projects at BP; and Deanna Jones,
vice president of human resources and
administrative services at Marathon Oil.
The Honorable Chase Untermeyer, for-
mer US Ambassador to Qatar, will give
the closing address.
In addition to the panel program,
there will be executive breakout ses-
sions and smaller breakout discussions
in which a variety of focused topics will
be examined by peers and thought lead-
ers together.
Teacher and Student Events—A group
of 100 invited Houston-area teachers
(of grades 4 through 12) will attend a
free energy education workshop on
Thursday. The participants will receive
comprehensive, objective information
about the scientific concepts of ener-
gy and its importance, while learning
about oil and gas exploration and pro-
duction. Following a keynote presen-
tation, the teachers will take a tech-
nology tour of the OTC exhibition and
then engage in hands-on classroom
activities reflecting age-appropriate
energy curricula.
In addition, 200 high school math
and science students will participate
in a science, technology, engineering,
and mathematics event on Thursday.
The students will participate in hands-
on energy exploration experiments
provided by the US National Ener-
gy Education Development Project,
meet industry professionals, and tour
OTC technology exhibits in a scaven-
ger hunt.
d5—On the day after OTC, d5 will bring
together many of the brightest minds
in exploration and production to listen
to presentations and take part in dis-
cussions designed to inspire ideas and
innovation and leave a lasting impact.
To be held at Rice University in Hous-
ton, d5 will feature game-changing glob-
al innovators who will speak and lead
group discussions that can spark cre-
ativity and help to identify the next big
step for the energy industry through
technology, leadership practices, and
competitive advantages.
The event will expose attendees to
disruptive technologies from other
industries and help participants build
unique connections and develop innova-
tive solutions to apply to their business
area. Thought-provoking presentations
on diverse topics will focus on
◗ Ideas: energy outlook, startups,
competitive advantage, and
winning strategies.
◗ Innovation: game-changing
capabilities, science, and big data.
◗ Impact: motivation, sense of
purpose, risks, and workplace
culture.  JPT
51
 OTC SPOTLIGHT

OTC Names Winners of Spotlight

on New Technology Awards
Stephen Whitfield, JPT Staff Writer

The Offshore Technology Conference
(OTC) selected 12 new technologies for its
2016 Spotlight on New Technology awards.
The annual awards program recogniz-
es innovative technologies and allows for
companies to show the latest advances in
offshore exploration and production.
Award recipients were chosen based
on the following criteria:
◗ The technology must be less than 2
years old, offered to the marketplace
less than 2 years prior to 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-scale application
or successful prototype testing.
◗ The technology must have a broad
interest and appeal for the industry.
◗ The technology must provide
significant benefits beyond existing
technologies. Environmental
impact is an important judging
criterion.
OTC also awarded a Spotlight on
New Technology Small Business Award
for companies with fewer than 300
employees.

AWARD RECIPIENTS (listed alphabetically)

AFGlobal Corporation Baker Hughes

Riser Gas Handling System
AFGlobal’s next-generation riser gas han-
dling (RGH) system features a unique,
purpose-built design that offers the sim-
plicity, flexibility, and reliability required
to efficiently mitigate gas for dynamical-
ly positioned or moored rigs. The RGH
system handles retrofits and newbuilds,
using specialty riser joints and equip-
ment—all of which are transparent to
rig processes.
Integrity eXplorer Cement
Evaluation Service
The Integrity eXplorer cement evalu-
ation service sets a new standard for
cement evaluation by directly measuring
the cement strength with its unique elec-
tromagnetic-acoustic transducers sensor
technology. This technique of verifying
zonal isolation gives operators the con-
fidence they need to make critical well-
integrity decisions.

FMC Technologies
InLine ElectroCoalescer
FMC Technologies’ InLine ElectroCo-
alescer enables efficient oil/water separa-
tion and helps maximize deepwater pro-
Baker Hughes’ Integrity eXplorer
cement evaluation service directly
measures cement strength with an
electromagnetic-acoustic transducers
sensor technology.

FMC Technologies’ InLine

AFGlobal’s riser gas handling system ElectroCoalescer enables efficient oil/water
handles retrofits and newbuilds, using separation and helps maximize the deepwater
specialty riser joints and equipment. production of medium and heavy oil.

52 JPT • APRIL 2016


GE Oil & Gas’ SeaPrime I Subsea MUX
BOP control system allows drilling
contractors to continue drilling if
components of one pod fail.
duction of medium and heavy oil. This
compact, pipe-based technology uses a
high-frequency, alternating current with
high voltage to polarize, coalesce, and
enlarge water droplets, which can then
be separated much faster in the down-
stream separation equipment.
GE Oil & Gas
SeaPrime I Subsea MUX
BOP Control System
The GE SeaPrime I Subsea MUX BOP con-
trol system allows drilling contractors to
continue drilling if components of one
pod fail. This new design simplifies access
to critical components, utilizes only two
pods, and re-routes failed functions with-
in a pod to deliver three times more avail-
ability without increasing maintenance.
Halliburton
BaraLogix Density and Rheology Unit
The BaraLogix density and rheolo-
gy unit (DRU) is an autonomous, auto-
mated device that allows real-time mea-
surements of fluid density and rheology,
combined with trending analysis visi-
ble to the well construction team. The
BaraLogix DRU can help reduce risk,
increase efficiency, and communicate
drilling performance in real time.
JPT • APRIL 2016
Halliburton’s BaraLogix density
and rheology unit allows real-time
measurements of fluid density and
rheology.
Lankhorst Ropes
LankoDeep—Soft Rope System Lankhort Ropes’ LankoDeep soft rope
system is capable of handling heavy
The Soft Rope System is a collaboration
loads at water depths of more than
between Lankhorst Ropes, Deep Tek, 3000 m.
and DSM Dyneema. Capable of handling
heavy loads at water depths of more than
3000 m, the system comprises Lankhorst
Ropes’ LankoDeep rope, DSM Dyneema’s
synthetic filament and proprietary rope
coating, and an Active Heave Compensa-
tion drum winch system from Deep Tek.
Oceaneering International
Remote Piloting and Automated
Control Technology
Oceaneering’s Remote Piloting and Auto-
mated Control Technology (RPACT)
improves operational efficiency. Sub-
ject matter experts or remotely oper-
ated vehicle (ROV) pilots can establish
ROV control through a satellite or wire-
less network link to support operations
at a remote work site. RPACT diminish- Oceaneering International’s Remote
es operational and environmental risk Piloting and Automated Control
while reducing potential damage to tool- Technology enables control of
ing, manipulators, and subsea assets. remotely operated vehicles through
a satellite or wireless network link
to support operations at a remote
OES Oilfield Services Group work site.
Dropped Object Prevention Program
The Dropped Object Prevention Pro- in the form of classroom and on-site,
gram is a technologically innovative hands-on training.
tablet-based, four-stage program that
evaluates each rigsite’s ability to con- OneSubsea
trol, implement, and mitigate dropped OneSubsea AquaWatcher
objects. Using this information, a Water Analysis Sensor
bespoke awareness package is created The OneSubsea AquaWatcher water anal-
and delivered to all personnel on the rig ysis sensor uniquely detects minuscule
53

OES Oilfield Services Group’s
Dropped Object Prevention Program
is a tablet-based, four-stage program
that evaluates a rigsite’s ability to
control, implement, and mitigate
dropped objects.
quantities of water in multiphase and
wet-gas flows, and determines the salin-
ity of that water. The patent-pending
technology can also measure the con-
centration of chemicals in water to deter-
mine accurate dosage requirements, thus
enabling significant risk reduction and
reduced costs.
OneSubsea
OneSubsea HyFleX Subsea Tree System
The OneSubsea HyFleX subsea tree sys-
tem provides the benefits of both verti-
cal and horizontal conventional trees.
Designed so the tubing hanger and tree
can be installed and recovered inde-
pendently of each other, it provides
functional flexibility and the ability to
batch-set wells, providing risk miti-
gation and significant cost savings in
field development and over the life of
the field.
SkoFlo Industries
Subsea Back Pressure Regulator Valve
SkoFlo subsea back pressure regula-
tors (BPRs) are antisiphoning, self-
regulating devices that create back
pressure in chemical injection lines to
SkoFlo Industries’ subsea back pressure regulator valves
are antisiphoning, self-regulating devices that help
prevent the uncontrolled delivery of chemicals into
production wells.
54
OneSubsea’s
AquaWatcher water
analysis sensor
detects minuscule
quantities of water
in multiphase and
wet-gas flows.
One Subsea’s HyFleX subsea tree
system is designed so the tubing
hanger and tree can be installed
and recovered independently of
each other.
prevent uncontrolled delivery of chemi-
cals into production wells. BPRs prevent
chemicals from draining into injection
points when a chemical hydrostatic head
exceeds injection pressure and produc-
tion wells become subambient.
Teledyne Oil & Gas
Electrical Optical Flying Lead
The Electrical Optical Flying Lead (EOFL)
features a hybrid wet-mate connector
and an electrical wet-mate connector on
either end of a jumper assembly, with
a qualified electrical/optical converter
integrated into the pressure-balanced,
oil-filled hose. Including the EOFL in a
data transmission network can allow for
greater field architecture flexibility at a Barge Master’s T40 motion-
lower cost. compensated crane enables safe
lifting from a moving vessel to an
offshore installation.
SMALL BUSINESS
AWARD WINNER sel to an offshore installation. It elimi-
nates motions at the base of the crane
Barge Master and allows work to continue safe-
Barge Master T40 ly in higher sea states, avoiding the
The BM-T40 motion-compensated crane need for platform cranes and reducing
enables safe lifting from a moving ves- costs significantly. JPT
Teledyne Oil and Gas’ Electrical Optical Flying Lead
features a hybrid wet-mate connector and an electrical
wet-mate connector on either end of a jumper assembly,
with an electrical/optical converter integrated into the
pressure-balanced, oil-filled hose.
JPT • APRIL 2016
TECHNOLOGY FOCUS

Offshore Drilling and Completion

Martin Rylance, SPE, Senior Adviser, BP

Cross-discipline solutions? Unified (oil)
field theory? We will not expound on
quantum theory here; we will discuss uni-
fied oil fields, cross-discipline integra-
tion, cooperation, and solution deploy-
ment. Well construction and operation
is a serial piece of business, and, while
different disciplines manage the various
pieces of the business well, the decisions
made at any stage can have implications
later in the drilling, completion, and
production phases of the well.
This is a timely subject for two rea-
sons. First, with low oil prices, we need
the maximum efficiency that we can
achieve. Second, a potentially emerging
challenge in completions is that a drill-
ing solution may be affecting a comple-
tion solution. Across the globe, there is
increasing evidence that the widespread
use of stress cage (a very good drill-
ing solution for depleted formations)
may be affecting the ability to deploy
fracturing and frac-pack solutions effi-
ciently. The growing evidence consists
of higher breakdown pressures, more
near-wellbore friction loss, an increas-
Well construction and
operation is a serial piece
of business, and, while
different disciplines manage
the various pieces of the
business well, the decisions
made at any stage can
have implications later in
the drilling, completion,
and production phases
of the well.
ing early-screenout frequency, and
even long-term effects on productiv-
ity. While it looks as though this inter-
action has been identified early, it is
now imperative that we work across
all the disciplines involved—drill-
ing, completions, and production—to
ensure that appropriate steps are taken
to ensure that the well can be drilled and
completed efficiently.
Therefore, this month, I include a
number of papers for further review that
clearly demonstrate the highest levels
of cross-discipline teamwork and that
have developed solutions that improve
efficiency across the scope of a well’s
operations. These papers all relate to
some extent to the deployment of more-
complex completions, requiring cabling,
control lines, and flat packs. The success
of these approaches can be achieved only
in cooperative environments. Requiring
alignment of a range of different sub-
disciplines and roles, positive outcomes
rely heavily on ensuring that the process
is fully integrated.
Many of us work in strong function-
al environments, where all too easily we
can deploy solutions that have the poten-
tial for repercussions on other aspects of
well design, construction, completion,
and performance. It is always worth tak-
ing a moment during the planning phases
of technology and solution deployment
to consider the breadth of effects that
your solution may have on others. JPT

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 interventions,
and pressure service. Recently, Rylance has specialized in uncon-
ventional 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.
Recommended additional reading
at OnePetro: www.onepetro.org.
SPE 176268 First Large-Bore
Expandable-Liner-Hanger Deployment
Offshore Gabon: Case Study by John
McCormick, Halliburton, et al.
SPE/IADC 173060 Design, Qualification,
QA/QC, and Operational Performance
of Completion Fluid, Reservoir Drill-in
Fluid, and Breaker—Tamar, Offshore Israel
by John Healy, Healy Energy, et al.
OTC 26284 Successful Application of
Drilling-Optimization Methodology and
Integrated Solutions in a Presalt Well
by Marcus Pinheiro, Halliburton, et al.

JPT • APRIL 2016 55

 In-Well Dual Canned ESP Completion Test
To Validate Safe Deployment in Deep Water

D eepwater and ultradeepwater

completions use numerous
hydraulic control lines for control and
mation. However, as the reservoir pres-
sure depletes, adequate production rates
cannot be maintained without effective
tional components, enabling identifica-
tion of areas for improvement in design
and operations during the SUT:
actuation of downhole equipment. reservoir-pressure maintenance or ar- ◗ Electronic pressure/temperature
Incorporating a completion system tificial lift. In shallow-water wells, gas gauge and mandrel
with an in-well lift such as electrical lift assistance has been used and proved ◗ Chemical-injection mandrel
submersible pumps (ESPs) increases effective for production but requires a and valves
the number of electrical lines needed. large gas supply and infrastructure to ◗ Sliding sleeve
This paper discusses the planning support production. ◗ Subsurface safety valves
and execution of a stack-up test (SUT) Another proven technique used for ◗ Canned ESP
to determine whether a completion fluid-lift assistance is an ESP system, ◗ Offset sub
system incorporating a dual canned normally implemented when a well is ◗ Adjustable union
ESP system with multiple control lines worked over and recompleted. In addition, the stack-up included
can be deployed efficiently and safely Placing an in-well ESP artificial-lift functional tools designed for deepwater
in a deepwater, high-pressure/high- system within the primary completion applications: the barrier valve (BV) and
temperature (HP/HT) environment. enhances production during the well- telescoping space-out joint (TSOJ). The
pressure-depletion period, preventing BV enables isolation of the lower pro-
Introduction the need of at least one workover to in- duction zones while running the upper-
Lower Tertiary Play Characteristics stall the ESP and preventing deferred completion production string; the TSOJ
and Challenges. Fields in the Lower Ter- production while waiting for a capable provides for spacing out and landing the
tiary play, also known as the Paleogene, rig to perform the workover. tubing hanger at the wellhead.
have low porosity (15–25%) and low per- In 2009, considerations for in-well lift The SUT was conducted on a land test
meability (<10 md), which reduce the completions moved forward with con- rig. The test well is 500 ft deep and has
amount of oil that can be recovered with- ceptual development of a dual canned 30-in. cemented surface casing.
out assistance. In addition, Lower Ter- ESP system in collaboration with an op- The close casing clearances between
tiary water depths range from 5,000 ft erator. Although dual ESPs have been run the drift inner diameter (ID) of the
to more than 10,000 ft; reservoirs are before, the use of a dual canned ESP sys- 11.75-in. casing and canned-ESP spin col-
deeper than 26,000 ft; pressures range tem in the Lower Wilcox requires a sig- lar presented possible run-in-hole issues.
from 25,000 to 30,000 psi; and tem- nificant number of additional completion The lower casing assembly, which had
peratures can be higher than 300°F, fur- components that require additional con- an ID of 8.535 in. and drift of 8.379  in.,
ther complicating production. The Wil- trol lines for their operation. would have the larger-tool outer di-
cox formation lies in the Lower Tertiary ameters (ODs) of 8.25 in. (production
and is divided into the Upper, Middle, Planned Stack-Up Testing. In mid- packer and polished bore receptacle),
and Lower Wilcox on the basis of each 2012, plans were formed for system test- leaving a total clearance of 0.129 in. or
section’s stratigraphy. ing with the operator. The stack-up com- 0.0645  in. at 180°. The upper 11.75-in.
The Lower Tertiary formations can prised a primary production system with casing, which had an ID of 10.032 in. and
produce large volumes of oil and gas, as- an in-well dual canned ESP system. The drift of 9.876 in., would have the larger-
sisted by high pressure within the for- stack-up also had the following nonfunc- tool ODs of 9.869 in. (canned-ESP spin
collar with bumper bars), leaving a total
This article, written by Special Publications Editor Adam Wilson, contains highlights clearance of 0.007 in. or 0.00035 in. at
180° and a multiple-control-line configu-
of paper OTC 26002, “Testing In-Well Dual Canned ESP Completion System To Validate
ration secured with a specific protector
Safe Deployment in Deep Water: A Collaborative Effort To Understand Surface
configured for the multiple control lines
and Downhole Requirements,” by Kim Tijerina, Baker Hughes, and Carlos Pardo and cables.
and Andy Hope, Chevron, prepared for the 2015 Offshore Technology Conference,
Houston, 4–7 May. The paper has not been peer reviewed. Multiple-Control-Line Requirements.
Multiple-control-line installation is not
Copyright 2015 Offshore Technology Conference. Reproduced by permission. novel to complex completion systems,

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

56 JPT • APRIL 2016

1—0.660×1.210-in. flat pack
1—0.430×0.710-in flat pack
1—0.430-in.-OD
encapsulated tubing-
encased conductor
Lower Wilcox: Stack-up test
Production tubing is inside 11.750-in., 100-lbf/ft casing with a 9.876-in. drift.
Protector is installed on 6.000-in., 30.90-lbf/ft vacuum-insulated tubing with
a 6.700-in.-OD coupling (10.748 in. long).
Fig. 1—Example of the multiple control lines and electric cables located around
the upper production tubing above the canned-ESP equipment and below the
tubing hanger.
but the ability to provide needed space
alongside the individual equipment
component designs and meet the HP/HT
burst-and-collapse rating proved to be
a challenge for this dual canned ESP
completion design (Fig. 1). Because
of the multiple-control-line and cable
sizes and shapes and the completion-
configuration thread connections, more
than 17 different protector designs were
used to prove control-line containment
and applied stresses.
Stack-Up Installation
Stage 1: Barrier Valve and Production
Packer. The stack-up was staged into
two main operations after the casing was
run to depth and landed. Stage 1 would
verify the running to depth of the BV and
setting of the production packer with
the running tool. The operation would
verify the BV functional operation re-
lated to Stage 2 operations. The BV was
placed in the run-in position with the
valve in the open position, allowing cir-
culation capabilities. After the produc-
tion packer was set, the running tool re-
leased and stroked upward; this allowed
closing of the internal valve and pressure
testing of the BV before running Stage 2
of the completion.
JPT • APRIL 2016
2—1.678-in.-OD ESP cables
6.700-in. coupling OD
6.000-in. production tubing
9.876-in. casing drift
11.750-in. casing
1—0.430-in.-OD
encapsulated tubing-
encased conductor
1—0.430×0.710-in flat pack
1—0.660×1.210-in. flat pack
Stage 2: Upper Completion and Dual
Canned ESP System. The control-line-
running (CLR) system was installed in
two steps. The base weighed 10 tons,
and space on the rig floor was limited.
This required effective communication
between rig-floor workers, CLR system
staff members, and crane operations.
The base would provide an under work-
ing carriage at the rotary floor, allow-
ing for assembly operations and test-
ing below base of smaller components
and installation of protectors. Second,
made up to the CLR-system base, the
upper basket containing bowl, slips, and
power-tong requirements provided a
safe working space for tong operations
above the main rig floor.
Next, control-line feed-in and guid-
ance required proper placement of the
nine spoolers and reels on the ground.
Placement of multiple feed in sheave
holders to the rig allowed the control
lines to be fed in from below.
Control Lines. Nine multiple-control-
line sizes and flat-pack widths were run
in during the SUT. Nine spoolers were
laid out and used to run the control lines,
which required multiple air compressors
to handle the workload.
Makeup of Dual Canned ESP System.
The dual canned ESP completion system
was run with the primary completion
system to verify compatibility and incor-
porate the electric cables with the prima-
ry completion. Two similar canned ESP
systems were run in the well. The first
had only the outer canned body and elec-
trical penetrator for both motor system
and pressure-/temperature-gauge line.
Lower control lines were secured to the
body with a made-for-design threaded
collar having ridges and a unique collar
protector with internal profiles for secur-
ing the control lines to the threaded col-
lars. This verified the lifting and makeup
capabilities of the canned ESP system to
the primary production system.
The upper canned ESP system, sitting
a short distance from the lower canned
ESP system, incorporated a diverter
valve, offset sub, and adjustable union
run inside the canned body. This allowed
the team to determine the capability or
issues for making up the internal motor
system, internal pressure/temperature
gauge, penetrator with motor lead ex-
tension cable, spin collar, and shroud
adapter. This complete assembly pro-
cess enabled the team to note design is-
sues involved with short-radius clamp-
ing and securing of control lines and
working with the rotary table below the
CLR-system base and required lifting
techniques for the ESP system. An addi-
tional requirement of the multiple con-
trol lines attached to the spin collar and
bumper bars was to observe the excep-
tionally close clearance to the drift ID of
the 11¾-in. casing.
Conclusions
The successful integrated-completion
SUT provides the groundwork conclud-
ed in the complex dual canned ESP sys-
tem. Consideration for the completion-
system deployment in a deepwater well
is both realistic and practical. The ben-
efits of additional years and additional
production provided by the ESP deploy-
ment will result in a higher recovery fac-
tor, which is a fundamental driver to
project continuation. Additional larger-
scale pilot testing for final deployment
in the Gulf of Mexico should be strong-
ly considered and planned, to validate
the concepts and advanced technolo-
gies further. JPT
57
 Tandem Downhole-Isolation-Valve
System Eliminates Snubbing

T he operator of an offshore jackup rig

in the North Sea required safe and
efficient deployment of the completion
string without killing the well during
tripping. A solution other than a snubbing
unit was needed because of the length of
the completion string, which included
12 swellable packers for 13 zones. To
provide for a safer, less-expensive, and
efficient method of tripping pipe, the
operator chose a downhole-isolation-
valve (DIV) solution that allowed for the
process to be performed in a conventional
manner under conditions of complete
well control.

Introduction
During the past decade or so, the indus-
try has developed drilling methods to
address more-complex and -challenging
prospects such as ultradeep prospects,
deepwater applications, and high-
pressure/high-temperature wells in
order to continue meeting the worlds’ de-
mand for energy. This seemingly insatia-
ble demand has led to the development Fig. 1—DIV in the closed position. Fig. 2—Drilling with the DIV in the
and widespread use of unconventional open position.
techniques such as underbalanced drill-
ing (UBD) or near-balanced drilling and ◗ Pore-pressure and fracture-gradient tremely important facet of drilling opera-
various forms of managed-pressure drill- similarity leading to kick and loss tions and has prompted the development
ing, including pressurized-mud-cap drill- cycles and well-control problems of procedures and equipment designs to
ing (PMCD) and constant-bottomhole- ◗ A necessity for snubbing techniques address them, one of which is the DIV.
pressure drilling with their attendant to trip the pipe in and out of the hole
well-control and safety challenges. Some above the “pipe light” depth, with The DIV
of these challenges are the attendant added cost and risk Consideration of these challenges led to
◗ Moderate to severe lost-circulation ◗ Overall operational safety and the development of the DIV as a means
conditions and consequent environmental issues of addressing them. The DIV is a deep-
nonproductive time (NPT) ◗ Operational economics and the set flapper valve that is run as an integral
◗ Formation damage as a result effect of resulting NPT part of the intermediate casing string.
of having to kill the well before As a result of these challenges, mitigat- With a full-open internal-diameter speci-
tripping pipe ing drilling hazards has become an ex- fication to match the casing, it is typical-
ly set at a predetermined depth below the
pipe-light depth, or deeper as operation-
This article, written by Special Publications Editor Adam Wilson, contains highlights al requirements dictate. Operated by the
of paper SPE 173043, “First Ever North Sea Deployment of Tandem DIV System application of hydraulic pressure from
Eliminates Snubbing—A Case Study,” by Gary Mueller, Weatherford, prepared for the surface (through encapsulated con-
the 2015 SPE/IADC Drilling Conference and Exhibition, London, 17–19 March. The trol lines attached to the outer diameter
paper has not been peer reviewed. of the casing), the DIV is powered open

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

58 JPT • APRIL 2016

and closed separately by means of one of
two encapsulated control lines, to offer
maximum protection to personnel, as-
sets, and the environment while tripping
or when the hole is devoid of pipe. If the
situation requires it, the DIV also can be
disabled to provide full-open access by
use of a lock-open tool.
A DIV can be run in either of the two
following configurations, depending on
operational requirements:
◗ Permanent configuration—the valve
is run in on the casing string and
cemented in place.
◗ Retrievable configuration—the
valve is run as part of the liner
tieback string connected to the liner,
allowing the option of retrieving
the system and the tieback string at
the end of the drilling operation if
desired.
Once the casing is set, drilling oper-
ations can commence normally. If the
need arises to make the first round trip
of the bottomhole assembly (BHA), it can
be stripped out to a point above the valve,
whereupon hydraulic pressure from the
surface control unit (through the close
control line) can be applied to close the
valve (Fig. 1).
It can then be tested by bleeding off
surface pressure so that the remainder of
the trip can be performed without pres-
sure, enabling a safer and considerably
faster trip. When the drillstring is tripped
back into the well, it is again run without
surface pressure until reaching the valve,
whereupon pressure is applied above it to
equalize the pressure across the flapper.
The DIV can then be powered open by ap-
plication of hydraulic pressure from the
control unit (through the open line), and
the pipe can be stripped to bottom under
pressure (Fig. 2).
Implementation of the DIV provides
for the following improvements and
changes to drilling operations:
◗ Eliminates the need for snubbing
operations to trip the pipe above
pipe-light depth, which saves
the cost of additional equipment
and the attendant personnel and
enhances the economics and safety
of the operation.
◗ Reduces the time involved to trip the
drillpipe, thereby having a positive
effect on the overall operational
costs.
JPT • APRIL 2016
◗ Enhances operational safety
through the elimination of surface
pressure during a significant portion
of the tripping time.
◗ Reduces or eliminates (if above
the closed-valve setting depth)
fluid losses or kicks when drilling
in reservoirs with narrow pore-
pressure/fracture-gradient
windows where tripping can induce
swabbing.
◗ Provides a lengthy lubricator
in the closed position to allow
complex BHAs, such as drilling
and completion equipment, to be
run into the wellbore without the
presence of pressure. Doing so
speeds up the process and enhances
operational safety.
The first DIV, rated to 5,000 psi, was
installed in 2001. Because of a dedicat-
ed engineering and operational effort,
now DIVs for 7- and 9⅝-in. casings are
built to match all casing specifications,
including pressure ratings. DIVs now are
widely accepted as reliable devices whose
use is accelerating in most operational
theaters, having seen use in such varied
situations as UBD operations in Austin,
Texas; PMCD operations to drill frac-
tured carbonate reservoirs in Papua New
Guinea, where one such installation was One Stop for
successfully operated open and closed
53 times; and large-bore gas wells in Su- Everything JPT
matra. Moreover, a tracking system has Get all your online JPT
been used to compile extensive data on content in one place at
DIV installations throughout the world www.spe.org/jpt
and form a basis for selecting DIV models
suitable for any operating scenario. Responsive Design
SPE members can access
Conclusion the latest issue of JPT
Since its first use in 2001, the DIV has from any of their devices.
evolved into a widely accepted technolo- Optimized for desktop,
gy used to save time, increase safety mea- tablet, and phone, JPT is
sures, reduce costs, and preclude forma- easy to read and browse
tion damage and has been used a great anytime you are online.
deal in the Asia Pacific region, South
America, North America, and the North
Sea. It has been used before in a tandem
configuration elsewhere, but this paper Offline Access
details the first such use in the North Sea.
The tandem DIV installation was an ex- Download PDF versions
cellent solution to the operator’s specific of 180+ issues dating
needs. Its implementation established a back to 1997 for reading
secure barrier, isolating the well forma- online or when an
tion pressure below the valve, thereby Internet connection is
saving the operator rig time, enhancing not available.
safety, and cutting drilling costs. JPT
59
 Intelligent-Completion Installations
in the Santos Basin Presalt Cluster

T his paper presents information

regarding the installation of
intelligent-well completions (IWCs)
in the Lula and Sapinhoá fields of the
Santos basin presalt cluster (SBPSC).
The technology is intended to improve
reservoir-management capability by
using remotely operated flow-control
valves and real-time pressure and
temperature monitoring for each
perforated interval, corresponding
to different reservoir zones. The
Santos Basin
benefits are obtained at the expense Presalt Area
of additional challenges for well
engineering because well-completion
design becomes more complex and
overall associated risks increase.

Introduction
The area known as the presalt clus-
ter in the Santos basin is located in
ultradeep waters, between 1900 and
2400  m, approximately 290 km from Fig. 1—Santos basin presalt cluster.
Rio de Janeiro in southeast Brazil. Fig. 1
shows the main blocks of the presalt then, new production systems are being project supported the decision to use
cluster currently in the appraisal-plan or deployed continually in the Lula and a two-zone hydraulic system to actu-
production-development phases. Sapinhoá fields. ate the inflow-control valves (ICVs).
The first areas selected for produc- Since the SBPSC initial phases, IWC The choice was based on the advice of
tion development were Tupi (BM-S-11 was considered one of the more ap- specialists who considered it to be the
Block) and Guará (BM-S-9 block), which propriate designs for production- simplest and most reliable system in
now are known as the Lula and Sapin- development projects in the field. This the long term and recognized that it is
hoá fields. Initially, extended well tests technology is expected not only to im- a field-proven solution. On the other
were performed in these areas to gath- prove reservoir management but also to hand, wet trees designed for SBPSC
er information and test some of the provide better capabilities to deal with projects contain a multiplex control sys-
technologies that would be applied on reservoir uncertainties, which is imper- tem, which adds additional integration
further developments. Later, a produc- ative in carbonate reservoirs. issues to be addressed during the plan-
tion pilot project was initiated in Lula ning phases.
field by the deployment of a production Intelligent-Completion Systems Multiposition ICVs were selected
system with a total of nine wells (six Internal risk-analysis assessments be- to provide improved reservoir-
producers and three injectors). Since fore the first production-development management capability. Eight different
positions are specified for each field, six
with choke positions, which gives some
This article, written by Special Publications Editor Adam Wilson, contains highlights
control on the flow rate for production
of paper SPE 174725, “Road to Success and Lessons Learned in Intelligent-Completion from or injection into each zone. Both
Installations at the Santos Basin Presalt Cluster,” by E. Schnitzler, D.A. Silva Filho, valves in each well are operated with
F.H. Marques, F.K. Delbim, K.L. Vello, L.F. Goncalez, and T.C. Fonseca, Petrobras, three dedicated control lines, one of
prepared for the 2015 SPE Annual Technical Conference and Exhibition, Houston, which is common to both valves and is
28–30 September. The paper has not been peer reviewed. known as the common close line, with

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

60 JPT • APRIL 2016

Introducing a new controlled optimization
process for multistage completions
A feld-level program based on consistent frac placement
and measured downhole pressures and temperatures

Controlling key variables enables true optmizaton

You can’t truly optmize plug-and-perf completons, because frac
spacing and propped volume are uncontrolled variables. The same is
true for openhole packer/ball sleeve completons. Even when a com-
pleton is economically acceptable, there is no methodical way to
improve the design from well to well, because the number of fracs,
frac spacing, and frac size are not controllable or repeatable.
With the Multstage Unlimited® pinpoint frac system, you know
Predictable, verifable, and repeatable frac spacing and propped
where fracs initate and exactly how much proppant you put in each volume eliminate key unknowns to facilitate formaton-specifc,
one. No mater what else you vary—frac spacing, frac dimensions, well-to-well optmizaton across entre felds.
proppant type, frac fuid, injecton rates, proppant concentraton—
frac placement remains predictable and repeatable, so you can
evaluate the efects of the changes you make.
Recorded downhole data describes every frac
At every stage, our standard Multstage Unlimited frac-isolaton
assembly records actual pressures and temperatures at the frac zone
and in the wellbore below (see chart at right). The data reveals both
the presence and type of any interzone communicaton (natural
fractures, cement failure, longitudinal frac), so you can establish
minimum frac spacing in a given formaton. The data also identfes
the presence and source of near-wellbore restrictons, as well as
proppant bridging, if it occurs. Stage-by-stage details give you insights
you don’t get with other multstage completon methods, unless you
pay for separate and costly monitoring systems.
The combinaton of consistent frac placement and downhole data
is your best and fastest route to truly optmized completons and These charts show pressure and temperature above and below the
feld-development strategies. Learn more at ncsmultstage.com. isolaton assembly for ten stages. The data reveals and describes
any interstage communicaton and important frac and formaton
characteristcs.

The Multstage Unlimited frac-isolaton system is the world’s leading coiled-tubing frac technology, with more than 129,000 stages completed.

Learn from every frac. TM

ncsmultstage.com

©2015, NCS Multistage, LLC. All rights reserved. Multistage Unlimited and “Learn from every frac.” are trademarks of NCS Multistage, LLC.
 the other two being dedicated each to a
specific valve. Because there is a common
line, a specific operational logic must be
followed while operating the ICVs, to
prevent any undesired movement.
Key Factors
One of the key factors for the project’s
success was the integration between the
IWC and the wet-tree control systems.
In the first SBPSC project, the logic to
operate ICVs was included on the mas-
ter control system (MCS) installed on-
board the production unit. Therefore,
the IWC provider had to inform the sub-
sea vendor of the operational logic to be
implemented in the MCS. The interface
card for the permanent downhole gauge
(PDG) was installed inside the wet-
tree subsea control module (SCM) in
order to use the same communications
link to the floating production, stor-
age, and offloading vessel. An exten-
sive integration process was conduct-
ed to ensure that every interface would
perform per plan during the produc-
tion phase.
On later projects, an alternative ar-
chitecture for the control systems was
defined. A more-flexible solution was
necessary because different service
companies were expected to provide the
IWC systems for subsequent wells and
different subsea providers were con-
tracted to supply subsea equipment.
The new arrangement consisted of im-
plementing the ICV operational logic
outside the MCS, including addition-
al equipment in the IWC package. This
equipment is known as the intelligent-
well-control system and was designed
to communicate with the MCS with a
standardized protocol. The intelligent-
well-control system is allowed to actuate
the directional control valves that apply
pressure to the ICV control lines and to
receive feedback from the SCM pressure
sensors and flowmeter placed in the
open-to-sea return line. Additionally,
the PDG interface card was installed out-
side the SCM, in a dedicated pod in the
wet tree, eliminating the need to change
the SCM according to the IWC supplier.
Results Summary
Up to now, 25 wells have been complet-
ed with IWC for dual zones; seven are
injectors, and the others are producers.
A significant decrease in completion du-
ration has been observed during this
period. Most recent wells took approx-
imately 50% of the time to complete
when compared with the initial wells.
The two main causes for delays during
IWC deployments were misruns because
of damage on control lines and tubing-
hanger-seal failures.
Three of the major IWC suppliers have
provided the systems installed on these
wells. Some issues were observed with
equipment engineering and manufac-
turing quality control. In one case, a fail-
ure to meet dimensional requirements
partially compromised the intervention
as planned, and, subsequently, an alter-

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62 JPT • APRIL 2016

native solution for lower-zone isolation reservoir-management capability. ICV actively managing water breakthrough,
was necessary to maintain IWC func- remote actuation has been used for and testing the surface-controlled sub-
tionality. In another case, an ICV was several purposes, including control- sea valve. Additional benefits are ex-
observed being stuck in the closed posi- ling gas production, well testing with pected to be obtained in the future as
tion after system deployment. Attempts the production unit, sharing com- more wells become operational and the
to open it were unsuccessful, and, be- mingled injection or production, pro- fields mature. JPT
cause of that, the contingency sliding
sleeve was opened by use of slickline to
re-establish access to that zone. Inves-
tigations indicated that this particular
ICV model was operating too close to its
operational limits, and some engineer-
ing failures and gaps on qualification
were identified. The use of this specif- Production & Drilling Chokes \ Compact Ball & Check Valves
API Piping Accessories \ Pressure Relief Valves \ Valve Manifold Packages
ic ICV has been suspended until a re-
design on the equipment is made and a
new qualification process is performed.

Critical Valve Applications

These events, despite being unaccept-
able failures, have not fully compro-
mised the system capabilities so far. In
Including
the one case, some additional controls
Boarding Shutdown Valves
were necessary to keep the valve opera-
tional, while, in the other, an interven-
tion with a rig will be necessary to op-
erate the mechanical sliding sleeve that
was left open.
Four IWC-system misruns occurred
because of poor protection on con-
trol lines at IWC-assembly depth. This
issue has been mitigated successfully
for subsequent wells, and no damage
was observed on the last 11 wells. Is-
sues on landing the tubing hanger also
led to two unsuccessful first runs on
the IWC system, something that has
been fixed with a new seal design for
the hanger.
A considerable number of IWCs are CORTEC API 6AV1 Certified
under way or are expected to take place application-specific metal seated designs
in the near future; therefore, learning provide the precision required
from previous installations is a key fac- for zero leakage –
tor for improving performance and reli-
ability. Fifteen IWC wells are already in resulting in a more reliable product to
the operational phase, and all attempts minimize maintenance and downtime.
to cycle valves have been successful.
PDGs also work properly on most of
these wells. Because IWCs have been de-
ployed successfully, improved reservoir
management is expected to be possible
on SBPSC fields. The Standard
in Non-Standard Valve Production

Conclusions
www. u s c o rte c . c o m \\\\\\\\\\\\\\\\\
Despite some challenges faced on a
few wells, the deployment of IWC sys- Houma 985.223.1966
CORTEC proudly designs,
tems has been successful on the SBPSC Port Allen 225.421.3300 manufactures, assembles,
and tests all products in
fields. The systems installed remain Houston 713.821.0050 the USA.

operational, and most of them are al-

ready contributing to an improved

JPT • APRIL 2016 63

 TECHNOLOGY FOCUS

Natural Gas Processing and Handling

Xiuli Wang, SPE, Emerging Technology Manager, Baker Hughes

Despite the currently deteriorating oil
and gas prices (at the time of writing,
West Texas intermediate crude was at
USD  32.38/bbl and Henry Hub natural
gas was at USD 2.25/million Btu), nat-
ural gas, the “least carbon-intensive”
fossil fuel, is still projected by Exxon-
Mobil, the International Energy Agen-
cy, and other sources to grow by 65%
from 2010 to 2040, with the majority of
the increasing demand coming from the
Asia Pacific region.
According to the BP Statistical Review of
World Energy, in 2014, total world natural-
gas production was 3460.6 billion m3 and
43.2% of it was from the United States
(728.3 billion m3, 21.4%), the Russian
Federation (578.7 billion m3, 16.7%), and
Qatar (177.2 billion m3, 5.1%). On the con-
sumption side, the total global natural-gas
consumption was 3393  billion m3 and
accounted for 23.7% of the total world
energy makeup. The top three leading
consumers were the US (759.4 billion m3,
22.7%), the Russian Federation (409.2 bil-
lion m3, 12%), and China (185.5 billion m3,
5.4%), and they consumed 40.1% of the
total world natural gas.
Considering the current oil and gas
market conditions and that processing
Considering the current oil
and gas market conditions
and that processing
and handling are part of
the natural-gas supply
chain, ensuring that gas
processing and handling
are cost efficient and
safe becomes even
more imperative.
and handling are part of the natural-gas
supply chain, ensuring that gas process-
ing and handling are cost efficient and
safe becomes even more imperative.
Currently, total gas trades were
997.2  billion m3 (in 2014), slightly less
than in 2013 (1032.8 billion m3). Pipe-
lines and liquefied natural gas (LNG)
remain the primary gas-transportation
means, with shares of 66.6 and 33.4% in
2014, respectively.
While pipelines remain the tradition-
al means of transportation, LNG tech-
nology provides an effective alternative
for long distances and offshore environ-
ments. The design philosophy has gone
from simple to sophisticated to more
sophisticated, without compromising
safety and operability.
The advancements of LNG technol-
ogies enable the operators to oper-
ate their plants with lower specific-
energy consumption, shorter down-
time, safer environments, and generally
higher profits.
The following papers and additional
readings focus on LNG front-end design,
safety topics associated with natural-
gas transportation through LNG and
pipelines, new improvements around
the well-known Fischer-Tropsch pro-
cess for enhanced gas-to-diesel con-
version, flare-gas management, and
carbon-adsorbed natural gas as an
option for automotive fuel.
To find out more, attend the 2016 Off-
shore Technology Conference, 2–5 May
in Houston; the SPE Annual Technical
Conference and Exhibition, 26–28 Sep-
tember in Dubai; the 2016 Asia Pacific
Oil and Gas Conference and Exhibition,
25–27 October in Perth; and the Inter-
national Petroleum Technology Confer-
ence, 14–16 November in Bangkok. JPT

Xiuli Wang, SPE, is the emerging technology manager at Baker Recommended additional reading
Hughes. Previously, she was vice president and chief technology at OnePetro: www.onepetro.org.
officer for XGas, focusing on natural-gas monetization. Wang
also had 8 years of operational experience with BP, specializing SPE 177861 Challenges and Complexity
of World’s Largest Flares-Reduction
in oil and natural-gas production, completion, and sand control.
Project by Christopher Howell, Basrah Gas
She holds a PhD degree in chemical engineering from the
Company, et al.
University of Houston, a BS degree from Dalian University of
Technology, and an MS degree from Tsinghua University. Wang OTC 26020 Terminal and Transportation
was the associate editor-in-chief of the Journal of Natural Gas Engineering during Risk Assessment for LNG Export in North
America by H. Hamedifar, DNV GL, et al.
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 SPE 176129 Storage of Natural Gas
Engineers-USA. Wang was an SPE Distinguished Lecturer in 2013–14 and was named by Adsorption Process by Anshul Arora,
an SPE Distinguished Member in 2014. American International Group, et al.

64 JPT • APRIL 2016

Operations Excellence Begins in Design

A chieving production and

availability targets is paramount
to the ultimate success of any liquefied-
natural-gas (LNG) project. Both are
important factors in any life-cycle
economic analysis. The focus on true
operational excellence must begin early
in the design phase and remain endemic
throughout. This paper focuses on
common design pitfalls and oversights
within the LNG industry and presents
several methods or techniques to avoid
them. While the techniques and methods
presented are not new to the oil and gas
industry, they are often not used within
the LNG industry.
Introduction
The first and foremost consideration in
almost any process design is defining
feed conditions and product specifica-
tions properly. Ideally, this should occur
well before beginning process design,
but, unfortunately, this is not always the
case. Because most recognize the im-
portance of defining feed pressure, feed
temperature, and product specifications,
these particular variables are generally
well-defined. However, accurately char-
acterizing feed compositions and quanti-
fying feed contaminants remain common
industry oversights. The lack of diligence
in these areas can and does lead to nu-
merous operating problems, some of
which are difficult and costly to address.
Many critical project considerations
are involved in the process, equipment,
and piping design. Design oversights with
this type of work process are common,
often resulting in late design changes and
rework. To avoid added cost and schedule
delays, many smaller design oversights
discovered later in design are simply ac-
cepted. A question frequently and under-
standably asked in later project phases
is, “Will it work?” Seldom in later project
phases is the question asked, “Will it work
well?” Naturally, once the perceived cost
of correcting a problem becomes greater
than the perceived benefit, the focus on
operations excellence cannot endure.
Therefore, it is of paramount im-
portance to eliminate as many de-
sign oversights as possible early in the
project timeline.
Feed Contaminants
While it may be intuitively obvious that it
is necessary to identify and quantify feed
contaminants, the effort does not always
receive sufficient attention. If contami-
nants (e.g., methanol, glycols, oxygen, cor-
rosion inhibitors, compressor oils, acids,
chlorides, salts, aerosols, iron sulfide, and
dust and other particulates) are identified
and quantified properly from the outset,
the processes and equipment to remove
them, and in some cases to recover them,
may be properly selected and sized early
in design. Otherwise, equipment must be
added, modified, or replaced late in design
or after operation begins.
Feed Composition
and Characterization
A larger and more frequent problem with-
in the LNG industry is the failure to fully
understand and characterize feed com-
position. When heavier components are
present, even in small amounts, an accu-
rate prediction of even the most basic of
design considerations, such as the phase
envelope or if freezing will occur, may not
be possible without accurate characteriza-
tion. Yet this important step is often omit-
ted, predominantly because of a failure to
understand the analysis required, difficul-
ties in obtaining sufficient samples, and a
belief that very small amounts of hydro-
carbon components are of little concern.
A particularly troublesome problem
resulting from a lack of, or improper, feed
characterization is the inability to pre-
dict the phase envelope accurately. A very
common practice is to lump all pentanes
into a single C5 component and hexanes
and heavier into a single C6+ component.
Worse, some simply lump all pentanes
and heavier into a single C5+ component.
One of the main reasons for this practice
is the belief that small amounts of hydro-
carbon components are of little concern.
The fact is that even very small amounts
of heavy hydrocarbon components may
have a profound and dramatic effect on
the phase envelope.
Clearly, experienced LNG liquefaction
engineers with the necessary thermo-
dynamic expertise in these critical areas
should be involved early in the design
process. The effect of even small percent-
ages of heavy hydrocarbon components
relative to the full composition should
not be trivialized. To be certain, the work
required in this critical area to facilitate
life-cycle operations excellence is any-
thing but a trivial matter.

Equipment
This article, written by Special Publications Editor Adam Wilson, contains highlights
Selection and Design
of paper IPTC 18566, “Operations Excellence Begins in Design,” by Wesley R. Qualls,
Once all contaminants are identified and
ConocoPhillips, prepared for the 2015 International Petroleum Technology Conference, quantified and properly characterized
Doha, Qatar, 7–9 December. The paper has not been peer reviewed. feed compositions across the full range
of feed conditions are prepared, the pro-
Copyright 2015 International Petroleum Technology Conference. Reproduced by cess design may be completed with much
permission. more certainty of success.

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

JPT • APRIL 2016 65

 One of the more overlooked equipment
items throughout the oil and gas industry is
the simplest of all vessels: the vapor/liquid
separator. Many operational problems
could be avoided simply by applying more
effort to the design of this equipment.
In most cases, designing equipment
with established and industry-proven ex-
perience factors early in design is more
cost-effective than using a more sophisti-
cated approach. For example, an iterative
computational-fluid-dynamics approach
for the initial sizing of a small, carbon-steel
vapor/liquid separator is rarely cost justi-
fied when proven experience factors are
available. The same logic can be applied to
most process equipment. However, there
are a few notable exceptions, such as de-
veloping rate-based models for absorp-
tion and fractionation. For this area of
process design, the time and effort to de-
velop rate-based models is typically justi-
fied, especially for high-pressure or highly
nonequilibrium applications. In any event,
an integrated team of experienced pro-
cess engineers and subject-matter experts
should always be included for these types
of decisions in the initial design phases, as
Technical Papers
The complete SPE technical
papers synopsized in this
issue are available free to
SPE members for 2 months
at www.spe.org/jpt.
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66
opposed to bringing them in later to ad-
dress earlier design decisions.
Controls-System Design
Controls-system design should also begin
in the earliest stages of conceptual pro-
cess design. Process engineers who excel
at heat integration and thermal design
may not have a good working knowledge
of hydraulics and controls. Similarly,
controls, instrumentation, automation,
and hydraulics subject-matter experts
may know very little of process design.
There is no substitute for experience,
and no single engineer knows everything.
For true operational excellence, one
must seek the right blend of experienced
subject-matter experts early enough in
the design to receive the full benefit.
Because controls engineers are typi-
cally involved later in an industry-typical
sequential design approach and because
redesign is often out of the question,
projects are often forced to compromise.
The inevitable “will it work” question
arises, understandably without regard to
the definition of “work.”
To help avoid this problem, one should
never separate process, hydraulics, and
controls design. The three should not be
sequential but rather integrated from the
earliest stages of process design.
Piping Systems
The primary method of moving material in
an LNG liquefaction facility is piping. The
sheer volume of piping revealed during
a casual walk-through of any oil and gas
process facility should impress upon any-
one the importance of well-designed pip-
ing networks. Yet, many process-design
engineers during conceptual design phas-
es focus more on equipment than piping.
While an equilibrium simulator may read-
ily converge, a converged simulation will
not reveal such things as entrainment,
control-system noise, nonuniform distri-
bution, slug flow, or other transient condi-
tions. To achieve true life-cycle operations
excellence, one must marry the 2D world
of simulations with the 3D world of equip-
ment layout and piping design as early as
possible in the project schedule.
Storage and Inventory
Requirements
A prevalent trend in the oil and gas in-
dustry is to minimize or even eliminate
storage to save capital. Given the high
cost of LNG storage tanks relative to the
overall facility, the trend in the LNG in-
dustry is understandable. However, be-
cause LNG project planners almost al-
ways consider LNG storage carefully, a
discussion thereof is unnecessary. The
focus therefore turns to storage and in-
ventory requirements of other systems.
Some owners may desire to defer the
capital investment of off-specification
storage and the associated equipment
until revenue is generated, which may
very well be a good option for overall
project economics. However, in such
cases, the plot plan and main processing
equipment should be designed from the
outset to include both the ability and the
capacity to reprocess off-specification
material later with minimal effect on
overall plant production. Additional plot
space may be allotted for later storage
tanks, along with space in pipe racks,
additional column nozzles, and piping
tie-ins, for example. Therefore, it is rec-
ommended to include off-specification
reprocessing simulation cases early in
the process-design phase, even in cases
where the intention is to defer the capi-
tal investment.
Conclusions
When the desire is to minimize capi-
tal costs by minimizing equipment sizes,
modern computational techniques and
some critical design detail should not be
reserved until later phases of the project.
Some of what many would deem detailed
design must occur sufficiently early in
the project schedule to prevent later re-
work and ensure true life-cycle opera-
tions excellence. It should be understood
that, when a detailed analysis is delayed
to a later project design phase, late de-
sign changes might result. Modern com-
putational methods can provide valuable
design insight but remain no substitute
for experience. An integrated team of ap-
propriately experienced subject-matter
experts armed with such tools and in-
volved early enough in the project de-
sign phases can contribute significantly
toward minimal rework and toward life-
cycle operations excellence. By contrast,
late changes and, in some cases, accept-
ing undesirable situations are inevitable
when the appropriate subject-matter ex-
perts are not involved initially. JPT
JPT • APRIL 2016
A New Method To Detect Blockage
in Gas Pipelines

P hysical inspection and

mathematical-model simulation
are used to identify blockages in gas
pipelines. Generally, the physical
method can result in accurately
detecting location and size of a blockage
at the expense of production shutdown
and high costs. The mathematical
simulation detects a blockage through
numerical modeling, which could give
a quick evaluation at a much lower cost
but with higher uncertainties. This paper
presents a multirate-test method to
detect locations and sizes of blockages
in gas pipelines.
Introduction
The consumption of natural gas is next
to that of oil and coal according to En-
ergy Information Administration statis-
tics. New gas pipelines are constructed
and existing pipelines are expanded to
transport more natural gas to plants or
end users. A blockage, which is a com-
mon problem in gas-pipeline operations,
is a result of chemical or physical deposi-
tion caused by changes in composition,
pressure, or temperature. The reliable
and timely detection of blockages along
pipelines is one of the critical topics in
flow assurance.
The detection of pipeline blockage
falls into two categories: physical in-
spections and mathematical models.
Conventionally, physical-inspection
methods include acoustic reflectome-
try, gamma ray transmission scanning,
radio-isotope-tracer injection, tomog-
raphy measurements, radiographic de-
tection, and pipeline-diameter measure-
This article, written by Special Publications Editor Adam Wilson, contains highlights
of paper SPE 174751, “A New Method To Detect Blockage in Gas Pipelines,” by Kegang
Ling, SPE, University of North Dakota; Xingru Wu, SPE, University of Oklahoma;
and Zheng Shen, SPE, Weatherford, prepared for the 2015 SPE Annual Technical
Conference and Exhibition, Houston, 28–30 September. The paper has not been
peer reviewed.
ments. Physical inspections usually are
accurate but come with the expense of
production shutdown, high costs, and
long downtimes, which may be infeasi-
ble with long pipelines or complex pipe-
line networks. Mathematical models use
data such as flow rate, pressure, temper-
ature, and pressure-wave reflection to
locate a blockage. The models use mass
conservation, momentum conservation,
energy-balance equations, pressure-
pulse decay, and phase shift to estimate
blockage size and location. Mathemati-
cal models have the advantage of quick
evaluation at lower costs and can moni-
tor the pipeline continuously without in-
terrupting pipeline operations. Usually,
mathematical models require flow pa-
rameters, which are not always available;
therefore, operators are more confident
with physical inspection than mathe-
matical modeling.
Gas Flow Through
Blockage in Pipeline
Gas flow through blockage in pipelines
is similar to the flow through a restric-
tion, a throated pipe, or a choke, such as
a nozzle or an orifice. It can be evaluated
using choke-performance relationships.
The flow regime can be classified into
subsonic and sonic flows on the basis of
gas velocity. Sonic flow occurs when gas
velocity through a restriction reaches
the sonic velocity in the fluid under the
in-situ condition. Under sonic-flow con-
ditions, the upstream cannot sense the
pressure wave propagated from down-
stream upward because the gas is trav-
eling in the opposite direction with the
same velocity. Subsonic flow happens
when gas velocity is lower than the sonic
velocity in the gas at in-situ conditions.
Sonic flow takes place when the down-
stream- to upstream-pressure ratio is
less than the critical-pressure ratio.
Please see the complete paper for equa-
tions to calculate a single-phase gas-flow
rate at sonic-flow conditions using oil-
field units.
Gas Flow Through Pipeline
Many equations are available to calculate
gas capacity through pipelines. The most
commonly used are the Weymouth and
the Panhandle A and B equations. If the
pipeline diameter is smaller than 16 in.,
gas flow in a nonhorizontal pipeline can
be calculated with the Weymouth equa-
tion. If the pipeline diameter is equal
to or larger than 16 in., gas flow can be
calculated by the Panhandle A equation
or Panhandle B equation. Please see the
complete paper for the Weymouth and
Panhandle A and B equations.
Detecting Blockage
For a blockage in a pipeline, multiflow-
rate tests are used to obtain flow pa-
rameters to solve the governing equa-
tions to locate the blockage and evaluate
the blockage size for different cases.
To model and analyze gas behavior in
a pipeline, the following assumptions
are made:
◗ Gas flow in pipeline is single phase.
◗ Blockage is annular.
◗ Temperature profile along the
pipeline is known.
◗ Gas blockage occurs in only one
location.
Blockage can occur in several points in
a pipeline. This study focuses on locat-
ing and quantifying a single blockage in
the pipeline.
When a multirate test is conducted,
the gas rate at the pipeline inlet will be
changed. This leads to redistribution of

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

JPT • APRIL 2016 67


A1
A′1
th tio ion
Dimensionless Bl
ockage Diamete
Lo ime
r
Fig. 1—Plot of dimensionless stabilization time/blockage
location/blockage diameter for the first flow-rate test.
the pressures along the pipeline. There-
fore, it will take a time period for inlet
and outlet pressures to stabilize. The
time period from changing inlet flow
rate to the stabilization of flow is the
stabilization time. Please see the com-
plete paper for a list of dimensionless
variables introduced to develop mod-
els to locate a blockage and estimate
the blockage diameter and blockage
section length.
Single Pipeline—
Known Flow Rate and
Inlet and Outlet Pressures
Two rate tests are required to evalu-
ate blockage in this case. Gas rate, inlet
and outlet pressures, and tempera-
tures are measured when conducting
two rate tests. The following steps show
the procedure to detect and quantify
the blockage:
1. Run the first flow-rate test; mea-
sure the flow rate, inlet and out-
let pressures, and the time to reach
pressure stabilization.
2. For the first flow-rate test, calcu-
late the pressure drop in the pipeline as-
suming no blockage using the Weymouth
equation or Panhandle equations. Then,
calculate the stabilization time of the first
flow-rate test by assuming no blockage.
3. Now, assuming a blockage length,
calculate pressure drops and dimension-
less pressure drops that correspond to
different blockage locations with differ-
ent blockage diameters. Also calculate
stabilization times and dimensionless
stabilization times that correspond to
different blockage locations with differ-
ent blockage diameters.
68
Stabilization Time
Dimensionless
A2
B1
A′2
B′1
el fr ge
A′1
e) m
ip ed ka
in o
f p ur oc
t o as Bl
le e s
D
in (m les
ca ns
Dimensionless Bl
e n
Fig. 2—Plot of dimensionless stabilization time/blockage
location/blockage diameter for the second flow-rate test.
4. Plot dimensionless stabilization-
time/blockage-location/blockage-
diameter type curves on the basis of
data obtained in Steps 1, 2, and 3 as
shown in Fig.  1. In the plot, the x-axis
is dimensionless blockage location, the
y-axis is dimensionless blockage diam-
eter, and the z-axis is dimensionless
stabilization time.
5. Calculate pressure drop, dimen-
sionless pressure drop, and dimen-
sionless stabilization time for the first
flow-rate test.
6. Find and connect the intersec-
tion points between dimensionless sta-
bilization time (dimensionless stabili-
zation time calculated from Step 5 and
type-curve plane obtained in Step 4).
Line A1B1 in Fig. 1 is the connection of
intersection points.
7. Project line A1B1 onto the x–y-plane
to obtain line A′1B′1.
8. Run the second flow-rate test; mea-
sure the flow rate, inlet and outlet pres-
sures, and the time to reach pressure
stabilization.
9. For the second flow-rate test, repeat
Steps 2 through 7 to obtain lines A2B2
and A′2B′2 shown in Fig. 2.
10. Intersection Point C between lines
A′1B′1 and A′2B′2 gives the dimension-
less blockage location, Point E, and di-
mensionless blockage diameter, Point
D, as shown in Fig. 2. Then, blockage
location and blockage diameter can
be calculated.
11. Calculate the pressure drops and
dimensionless pressure drops that cor-
respond to different blockage section
lengths (or different dimensionless
blockage lengths) by using blockage loca-
Stabilization Time
Dimensionless
B2
B′1
el fr ge
C B′2
e) m
ip ed ka
E
in o
f p ur oc
t o as Bl
le e s
in (m les
th tio ion
ca ns
ockage Diamete
e n
Lo ime
r
D
tions and blockage diameters calculated
in Step 10.
12. Plot dimensionless-pressure-drop-
vs.-dimensionless-blockage-length type
curve. The intersection point between
the dimensionless pressure drop of the
flow rate and the type curve provides
the dimensionless blockage length.
The blockage section length then can
be calculated.
13. If the calculated blockage section
length in Step 12 is different from the
guess in Step 3, use the calculated value as
the new guess and repeat Steps 3 through
12 until all calculated variables converge.
Then, the converged blockage location,
blockage diameter, and blockage section
length are the solutions.
Model Applications
and Limitations
The analysis assumes single blockage
in a pipeline. Please see the complete
paper for analysis of blockages in paral-
lel pipelines. The proposed method can-
not be used to locate multiple blockage
segments and evaluate their diameters
and lengths. Therefore, it is important
to know the number of blockage seg-
ments before applying the proposed
model. Multiple flow-rate tests (at least
three) can be used to differentiate a sin-
gle blockage from multiple blockages.
For a single pipeline, if different flow-rate
tests give different blockage phenom-
ena such as blockage location, diameter,
or length, multiple blockage segments
exist. For parallel pipelines, if no pipeline
has the same blockage location, diame-
ter, and length under different flow-rate
tests, multiple blockages exist. JPT
JPT • APRIL 2016
 Reduce flat time
and increase drilling
performance
where never before
thought possible
Learn how IntelliServ™ wired
drill pipe saved 4.3 rig days on a
recent project in the North Sea at
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© 2016 National Oilwell Varco | All rights reserved

 New Syngas Reforming Solutions
for Enhanced Gas-to-Diesel Conversion

T his paper presents an overview of

the challenges of using traditional
synthesis gas reforming methods
for efficient gas-to-liquids (GTL)
conversion. A second objective is to
show how newly emerging reformer
technologies, such as those based on
plasma or catalytic partial oxidation,
will provide significant improvements.
A case also will be made for how these
new technologies, when paired with a
high-efficiency Fischer-Tropsch (FT)
process, provide a profitable alternative
to the environmentally damaging, and
wasteful, practice of flaring or venting
associated gas.
Introduction
Given the limitations of footprint,
weight, safety, cost, and other factors
for platform operations, the use of the
FT process for flared-gas conversion to
liquids is challenging. This study shows
that the best process uses a catalytic
partial-oxidation reformer, a unique wax-
free FT catalyst, and an advanced FT re-
actor to meet all platform criteria while
cutting traditional capital expenditures
(Capex) and operational expenditures
(Opex) in half.
Criteria for Platform Operations
The following criteria were consid-
ered for the selection of equipment on
a platform:
◗ Small footprint (space limitations)
◗ Low weight (weight limitations)
◗ Low pressure (safety
considerations)
◗ High gas hourly space velocity
(GHSV) (to enable small reactors)
This article, written by Special Publications Editor Adam Wilson, contains highlights
of paper SPE 177660, “New Syngas Reforming Solutions for Enhanced Gas-to-Diesel
Conversion,” by Conrad Ayasse and Rob Ayasse, Verdis Synthetic Fuels, prepared for
the 2015 Abu Dhabi International Petroleum Exhibition and Conference, Abu Dhabi,
9–12 November. The paper has not been peer reviewed.
◗ Low pressure drop at high GHSV
(reactor shape)
◗ High gas conversion (process
efficiency)
◗ High gas selectivity to carbon
monoxide (process efficiency)
◗ No water needed (simplicity)
◗ No pure oxygen needed (platform
requirement for safety)
◗ No feed-gas preheat needed
(simplicity)
◗ No reformer tail-gas heat exchanger
needed (simplicity)
At the heart of the list are footprint,
weight, and safety. From the safety per-
spective, temperature, pressure, and
oxygen concentration are important.
Equipment footprint and weight affect
the platform cost and the ability to add
equipment to existing platforms. This
means that the number of process-unit
operations must be kept at a minimum.
Reformer Selection
The following technology alternatives
are analyzed regarding the preceeding
platform criteria:
◗ Steam methane reformer (SMR)—
CH4+H2O=CO+3 H2
◗ Autothermal reformer (ATR)—
CH4+O2+H2O+CO2=CO+2 H2
(not balanced)
◗ Plasma autothermal reformer
(PAR)—Same as ATR, but without
catalyst
◗ Partial oxidation (POX)—
CH4+0.5 O2=CO+2 H2
◗ Catalytic partial oxidation (CPOX)—
same as POX
The SMR requires a large supply of
water, reformer feed preheating, the im-
portation of CO2, and external heat from
burning hydrocarbons, so it is not fea-
sible for use on a platform from a water,
footprint, and weight perspective.
The ATR and PAR, as well as
combined-process reformers, require a
water source as well as feed-gas pre-
heating. Except for the PAR, they also
require captured and recycled CO2. The
POX reformer cannot operate with air
because it would, like all platform pro-
cesses, have to use air as the oxygen
source. This process also suffers from
high-temperature operation (1400°C)
and the formation of soot, ammonia,
and hydrogen cyanide.
CPOX, like POX, requires the least
number of unit operations, and CPOX
has the additional advantages that it can
operate with air as the oxygen source
without byproduct formation. It oper-
ates at a lower temperature (<800°C)
and, being a nonequilibrium process,
uses microsecond gas-residence times,
which ensures high productivity with a
small size. The need for heat exchange
on the hot tail gas is eliminated by the
use of water quenching. The hot quench
water can be vented safely to the at-
mosphere, which takes care of disposal.
Electrical-power generation is possible
but not contemplated.
Fischer-Tropsch Catalyst
The product slate of traditional commer-
cial fixed-bed FT catalysts contains ap-
proximately 50–55% wax. The purpose
of making a high wax cut is to minimize
the formation of methane. The wax is
hydrocracked to mainly naphtha, diesel,
and lube oils. The traditional FT cata-
lyst of this process operates at elevated
pressures and temperatures (>300  psi,
230–240°C) in a very long and slim shell-
and-tube reactor, which is unsuitable
for platform applications because of its
shape and transportability. The shape
is dictated by the requirement to mini-

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

70 JPT • APRIL 2016

mize thermal stresses on the tube sheet. on offshore platforms. A thermoplate re-
The catalyst used here operates at ap- actor was considered optimum for this
proximately 150 psi and 210–220°C and application. Besides the lower cost and
produces no wax, so a hydrocracker is higher heat-transfer efficiency, benefits
not needed. include the removal of shape restrictions
(facilitating transportation) and the po-
FT Reactor tential to load and condition the cat-
As mentioned, the shell-and-tube reac- alyst on land, creating a “plug in and
tor design is not suitable for application run” scenario. 7–8June
7–8 June2016
2016 •• Calgary,
Calgary,Alberta,
Alberta,Canada
Canada
BMO Centre at Stampede Park
www.spe.org/events/choc/2016
Economics
Capex Distribution
a Comparing the plant layout for the
b 16,000-B/D land-based Shell Bintulu
Plant Section % of Total
GTL Plant and the platform-based
Oxygen plant 23
<5,000-B/D Verdis Flared Gas Mon- 2016 SPE
2016 SPE CANADA
CANADA EVENTS
EVENTS
Reforming 28 etization Plant, the design of the Ver- AND TRAINING
AND TRAINING COURSES
COURSES
c
FT synthesis 24 dis plant is made simpler than that of
Product upgrade 13 the Shell plant by the elimination of op- 14–16 March
14–16 March •• SPE
SPE Thermal
Thermal Completions
Completions
Power recovery 12 erating units for the smaller offshore and Workover
and Operations
Workover Operations
Total 100 plant: Only CPOX reformer and FT units Workshop
Workshop
Opex Distribution are needed. Met Centre,
Met Centre, Calgary
Calgary
Operating Cost % of Total In order to obtain an estimate of the 55 April
April •• SPE/CHOA
SPE/CHOA Slugging
Slugging itit Out
Out
Natural gas at USD 0.50/Mscf 14.9
percent reduction in Capex and Opex, BMO Centre,
BMO Centre, Calgary
Calgary
Operating labor 1.8
reference is made to Table 1. Assum-
ing a 20,000-B/D GTL, a capital cost of 7–8 June
7–8 June •• SPE
SPE Canada
Canada Heavy
Heavy Oil
Oil
d
Other operating costs 19.2
USD 2 billion is calculated. Using the dis- Technical Conference
Technical Conference
e
Capital charges at 20%/year 64.1
tribution of costs from Table 1 and the BMO Centre,
BMO Centre, Calgary
Calgary
Total 100.0
capital-cost annual charges, Table 2 is 99 June
June •• SPE
SPE Oilsands
Oilsands Well
Well Pad
Pad Life
Life
Cycle Workshop
Cycle Workshop
a

b
Basis: 20,000 B/D liquid product developed showing the itemized costs
c
Exclusive of port and other general facilities
in USD. BMO Centre,
BMO Centre, Calgary
Calgary
Including allocated portion of heat-exchange cost
d
Includes catalysts, cooling water, process water,
The authors’ conclusions are that the 20–21 September
20–21 September •• SPE
SPE Caprock
Caprock
plant maintenance, overhead, property taxes, Capex and Opex costs of a Verdis Offshore Integrity for
Integrity for Thermal
Thermal Applications
Applications
and insurance
e Platform Flared Gas Monetization Pro- Workshop
Workshop
A capital charge of 20%/year simple 5-year payout
is equal to approximately a 12% discount-cash-flow cess would be approximately half those of Calgary, Alberta
Calgary, Alberta
rate of return under the current US tax structure a traditional plant design because of the
28 November–1
28 November–1 December
December •• SPE
SPE
Table 1— Economics: Capital cost elimination of operating units through
Thermal Well Integrity & Design
Thermal Well Integrity & Design
distribution for traditional GTL plants. the use of new technologies. JPT
Symposium
Symposium
Banff Springs
Banff Springs Hotel,
Hotel, Banff
Banff

Capex
Upcoming Training
Upcoming Training Courses:
Courses:
Traditional GTL Verdis Offshore
(Million USD) (Million USD) Notes 5–6 April
5–6 April •• Screening
Screening and
and Field
Field Piloting
Piloting
Oxygen plant 460 0 Verdis uses air
for EOR
for EOR Project
Project Development
Development
Reforming 560 425 No heat exchanger Calgary, Alberta
Calgary, Alberta
FT synthesis 480 480 12–14 April
12–14 April •• Unconventional
Unconventional Resource
Resource
Product upgrade 260 0 No hydrocracker Assessment and
Assessment and Valuation
Valuation
Power recovery 240 0 No power generation Calgary, Alberta
Calgary, Alberta
Total 2,000 905
18–22 April
18–22 April •• Evaluation
Evaluation of
of Canadian
Canadian Oil
Oil
Opex and Gas
and Gas Properties
Properties
Natural gas at 93 0 Waste flare gas Calgary, Alberta
Calgary, Alberta
USD 0.50/Mscf
Operating labor 11 11
3–12 May
3–12 May •• Complex
Complex Well
Well Core
Core
Other operating costs 120 120 Competency
Competency
Capital charges 400 181 Calgary, Alberta
Calgary, Alberta
at 20%/year
Total 624 312 For more
For more information
information visit
visit www.spe.org/canada
www.spe.org/canada

Table 2 —Calculated traditional GTL and Verdis plant Capex and Opex.

JPT • APRIL 2016

 TECHNOLOGY FOCUS

High-Pressure/High-Temperature Challenges
Mike Payne, SPE, Distinguished Adviser, BP

The engineering, design, qualifica- nent or system. The operating company
tion, and implementation of drilling, brings to this collaborative effort the
completion, production, and interven- specific information on environmental
tion equipment for high-pressure/high- conditions and the functional require-
temperature (HP/HT) developments pres- ments necessary for the equipment or
ent significant challenges in terms of system to meet project objectives. The
resources necessary to pursue and com- service or equipment provider brings
plete these wells successfully. Specialized specialized product and system know-
expertise is needed, and systematic and how on materials, design, optimization,
thorough engineering and testing pro- qualification, manufacturing, and qual-
grams must be followed. Material assur- ity assurance. Together, these parties
ance, manufacturing reliability, quality work to deliver HP/HT functional suc-
assurance, and inspection systems are also cesses addressing that operator’s need.
pivotal in underpinning a project’s success. A recent example of such collaboration
The industry has addressed these chal- involved the development of specialized
lenges successfully and established a track HP/HT logging-while-drilling services
record with decades of achievements capable of operating at downhole pres-
through numerous HP/HT developments. sures of 30,000 psi and temperatures of
This includes a range of basins globally 400°F. These new tools and services were
and has resulted in a strong foundation used successfully in more than 20 wells
of capability and technology to enable in a deep gas development in Southeast
further exploration and development of Asia. The systems improved drilling per-
resources in HP/HT reservoirs. Building formance for this offshore, shelf-based
on this established foundation, the indus- operation and enabled millions of dol-
try continues to enhance these HP/HT lars in project cost efficiencies.
capabilities further and has implemented A more sophisticated form of such
innovative collaborative means to do so. collaboration is “coopetition.” The term
A familiar form of collaboration occurs has been used before to capture the
when an operating company teams up dynamics of collaboration in select areas
with a service or equipment provider in while retaining other elements of indus-
order to support a focused development try competition. Specifically, there are
effort for a particular equipment compo- several significant industry projects in
Mike Payne, SPE, is a distinguished adviser and segment engi-
neering technical authority in BP’s upstream group. He has more
than 30 years of experience, including with drilling operations,
computing, technology, and consulting. Payne holds BS and PhD
degrees in mechanical engineering from Rice University, an MS
degree in petroleum engineering from the University of Houston,
and an executive business certificate from the University of
Chicago. He has extensive industry publications to his credit and
has held key leadership positions with the American Petroleum Institute and the
International Organization for Standardization. Payne has been an SPE Distinguished
Lecturer and received the SPE International Drilling Engineering Award in 2000. He
has been chairperson or cochairperson of several SPE Advanced Technology
Workshops and serves on the JPT Editorial Committee.
which operating companies are working
jointly with equipment or service provid-
ers to deliver new levels of HP/HT capa-
bilities. While cooperating within these
projects to develop these capabilities,
the operating companies remain com-
petitors with regard to leasing, explo-
ration, development, and operation of
their respective HP/HT developments.
Examples of this include agreements
targeting new HP/HT capabilities to
address deepwater development needs,
including 20,000-psi well pressures and
350°F well temperatures at the mudline.
These capabilities will enable develop-
ment of the Paleogene and Lower Tertia-
ry trends in the Gulf of Mexico and like-
ly will find applications in other basins
globally in the future.
Through a spectrum of collabora-
tion vehicles that encourages innova-
tion, enables rigorous engineering, and
improves efficiencies, our exploration
and production industry will continue its
long record of success in the delivery and
operation of safe and reliable wells, facil-
ities, and operations for HP/HT develop-
ments both in the US and abroad. JPT
Recommended additional reading
at OnePetro: www.onepetro.org.
SPE 175753 Dynamic Temperature
Modeling for High-Temperature-Well
Planning by Hendrik Suryadi, Schlumberger,
et al.
SPE 177854 Retrospective Study and
Multidisciplinary Optimization Work
Flow To Address Production Challenges
in Ultralow-Permeability, Tectonically
Active, HP/HT Dolomite Formation in
Northern Kuwait by Kousic Kanneganti,
Schlumberger, et al.
OTC 25808 A Methodological Approach
to System Design for Reliability for
HP/HT Environments by Asadullah Amanat,
Baker Hughes

72 JPT • APRIL 2016

Next-Generation HP/HT Subsea-Wellhead-
System-Design Challenges and Opportunities
M oving to higher-capacity
wellhead systems for high-
pressure and high-temperature
(HP/HT) environments will require
a larger mandrel and conductor-
casing size to accommodate the
high loads encountered during
drilling and production operations
for normal-, extreme-, and survival-
loading conditions. Numerous
analytical studies with 3D finite-
element analysis (FEA) and other
advanced tools have been performed
in an effort to determine the changes
needed, and an innovative solution is
presented for next-generation subsea-
wellhead equipment.
Introduction
The numerous functions that a wellhead
system performs are enabled by a large
number of parts and subassemblies with
complex geometries and interfaces and
complicated load paths. The only way to
have a true understanding of the well-
head and have confidence in the design
safety margin is by performing verifica-
tion analysis and validation testing of
rated, extreme, and survival capacities at
the system level, and not only at the com-
ponent and subassembly level. Testing
only at rated conditions is insufficient to
verify design margins and eliminate the
possibility of unexpected events that can
occur at higher load magnitudes.
Current industry standards that guide
the design of wellheads require some
general testing to be performed at rated
capacity for components and subassem-
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper OTC 25643, “Next-Generation HP/HT Subsea-Wellhead-System-Design
Challenges and Opportunities,” by Jim Kaculi, Dril-Quip, prepared for the 2015
Offshore Technology Conference, Houston, 4–7 May. The paper has not been
peer reviewed.
Copyright 2015 Offshore Technology Conference. Reproduced by permission.
The complete paper is available for purchase at OnePetro: www.onepetro.org.
JPT • APRIL 2016
blies. However, unlike the standards for
casing connectors below the mudline,
there are no requirements to test the
wellhead at a system level, nor to test
the system to the limits (yield capac-
ity) of the equipment, which would con-
firm the design margins. Casing connec-
tors are tested per requirements that
subject the connector to combined load
testing of tension, compression, internal
pressure, external pressure, and bend-
ing at ambient and elevated tempera-
tures. It is logical that testing similar to
casing-connector tests be performed on
wellhead systems.
New Wellhead-System
and Connector Design
The typical wellhead systems currently
used in the industry include mandrels
with 27- and 30-in. outer diameter (OD),
and conductor casings are as large as
36-in. OD. However, these configurations
may not be able to resist the high load
magnitudes and load combinations ex-
pected in HP/HT applications. Moving
to higher-capacity wellhead systems re-
quires larger mandrel and conductor-
casing sizes capable of enduring the high
loads encountered during various drill-
ing and production operations. A new
and advanced design concept of the well-
head connector and mandrel was devel-
oped to accommodate the HP/HT loads
and industry demands. A survey of op-
erators and contractors combined with
forecast load magnitudes obtained from
analysis studies on HP/HT applications
led to a 35-in. wellhead/mandrel design
Upper Body
Outer Body
Latch
Segments
Cam Ring
Gasket
35-in. High-
Pressure
Housing
Lower Body
Low-Pressure
Housing
Fig. 1—Design concept of new 35-in.
mandrel/wellhead system.
with sufficient structural capacity to
meet the industry needs for future de-
cades of drilling and production (this de-
sign is described in detail in the complete
paper). This mandrel and connector de-
sign concept is shown in Fig. 1.
The new connector and wellhead pro-
file from a proprietary design is engi-
neered for very high structural capacity
and fatigue resistance to provide extend-
ed service life during drilling and produc-
tion operations. Starting with the design
concept of the connector and using high-
ly sophisticated design tools, an exten-
sive, advanced FEA was carried out over
numerous design iterations to optimize
as many details of the connector pro-
file as possible. The design features are
closely examined in the pursuit of abso-
lute maximum fatigue performance. The
connector profile was optimized over nu-
merous analysis iterations to achieve the
most-uniform load distribution between
the engaged teeth at various load combi-
73
 nations and magnitudes. The optimized
profile contains high fatigue resistance
because of significant reduction of stress-
amplification factors at all the critical fa-
tigue locations within the profile, and is
used on the connector upper body, latch
segments, and wellhead/mandrel inter-
face. The overall connector design is a
“clamp-segment” type that behaves as a
simple hub-and-clamp arrangement. As
the segment latches onto the wellhead, it
simultaneously clamps to the connector
upper body to create a closed loop and
a near-straight load path between the
upper body and the wellhead.
FEA Modeling
FEA was used to evaluate the structur-
al integrity and fatigue performance of
the connector. The analysis was com-
pleted with an established commercial
software. Taking advantage of symme-
try, a one-half 3D FEA model was used
to evaluate the static strength of the
connector. The FEA models analyzed
the main components of the connec-
tor assembly. Eight-node brick-shaped
continuum elements were used to model
the 3D assembly. The entire FEA model
consisted of more than one-half-million
elements. This provided a mesh refine-
ment sufficient to accurately capture the
stresses throughout the areas of concern
in the assembly.
The analysis examined the stresses de-
veloped during the preload and loading
of the connector to normal-, extreme-,
and survival-loading conditions. The
connector assembly is first preloaded,
and subsequently subjected to a combi-
nation of incremental bending-moment,
tension, and pressure and associated-
pressure end loads until the capacity (al-
lowable stress) for normal, extreme, and
survival conditions is reached. Contact
elements were included for all interac-
tion surfaces. The interaction surfaces
were modeled with friction using surface-
to-surface interaction (hard contact) for-
mulation. Nonlinear geometry (large-
displacement) behavior was considered
in the analysis. Elastic and elastic/plastic
material behavior was used during the
design optimization of the connector.
Fatigue Performance
There are various methods considered
acceptable in the industry today for the
74
fatigue-performance evaluation of equip-
ment. The S-N (stress range vs. number
of cycles) method still remains a pre-
ferred method in the industry because of
its simplicity and historical precedent.
The two elements needed to perform
a fatigue analysis with the S-N method
are the geometry details for determin-
ing stress-amplification factors/stress-
concentration factors (SAFs/SCFs), and
the expected cyclic-load spectrum or fa-
tigue histograms. The S-N curves gener-
ally are taken from published industry
standards or may be generated from the
testing of components.
The geometry details of components
are needed to determine the connector
SAFs/SCFs; most of the time, this is con-
sidered proprietary information of man-
ufacturers. In such cases, the manufac-
turers are required to provide the SAF/
SCF of the connector. Too often, the SAF
and the SCF are interpreted incorrect-
ly as being the same thing and are used
interchangeably, when in fact the SAF
and the SCF represent two different phe-
nomena and produce entirely different
fatigue-life estimates. The definitions of
SAF and SCF are presented in the com-
plete paper.
Considerations should be given to the
effects of geometric tolerances and the
effect on the SAF/SCF values. When ap-
plicable, the effect of load sharing, pre-
load, and other relevant nonlinearities
on the SAF should be considered. In cer-
tain cases, the SAF at various load lev-
els for specific locations may be signifi-
cantly lower than the maximum SAF.
In these cases, the use of an SAF curve,
which provides SAF values for various
load magnitudes, may be more appro-
priate for comprehensive fatigue studies.
However, it is always conservative to per-
form the fatigue calculations with the
maximum SAF value.
Along with the SAF values, the appro-
priate fatigue curve must be specified.
If welds are present, the SAF and the
appropriate fatigue curve for the weld,
which is dependent on the weld type
and weld-finishing operations, should
be provided. Stress amplification caused
by geometric discontinuities/features
and by weld misalignment must be con-
sidered in fatigue-life calculations. SAF/
SCF information generated from fa-
tigue physical testing may be used, but
the same information generated from
analysis, including reference stress and
reference section dimensions, should
be provided.
Need for Standard Sets
of Fatigue Loads
Determining the fatigue performance of
subsea systems involves a lengthy and
comprehensive process because of the
large number of variable inputs required.
In most cases, when a subsea system
is developed, the operators are faced
with the challenge of specifying equip-
ment without knowing all the param-
eters. If the information becomes avail-
able, there is still a significant amount of
verification analysis and validation test-
ing required to evaluate the equipment
before it can be proved that it is fit for
intended service.
To help alleviate this problem, it is
recommended that the industry create
a standard set of input data that can be
used to qualify the equipment to a certain
performance level. These data should be
categorized for various geographical re-
gions of the world and for different water
depths, vessel types, metocean condi-
tions, operations (drilling, production,
pile driving), and soil types, and they
should encompass a range of load lev-
els, from benign to intermediate and
extreme/survival conditions. Consider-
ations should be given to the magnitude
of static loads, pressures, and thermal
loads, and to the effect of cement levels.
Conclusions
An 18¾-in.-bore and 35-in.-OD man-
drel/wellhead-system and connector-
design concept suitable for HP/HT appli-
cations has been developed and exhibits
sufficient structural capacity and fatigue
resistance to meet the industry needs for
future decades of drilling and produc-
tion. The connector has approximate-
ly twice the static capacity of a typical
15-ksi, 30-in.-OD mandrel design, and
it is rated for 20-ksi internal pressure.
With a 20-million-lbf-ft survival bend-
ing capacity, it can accommodate various
levels of external tension and compres-
sion loads. Doubling the static capacity
of the 35-in. connector is achieved with
only an approximately 25% increase in
overall weight of the connector com-
pared with a 30-in. connector. JPT
JPT • APRIL 2016
The HP/HT Completion Landscape
T he methods used for high-
pressure/high-temperature
(HP/HT) tool development are
evolving, and development cycles
are lengthening, particularly for
ultra-HP/HT applications (those
involving pressures greater than
15,000 psi or temperatures greater
than 350°F) in which materials
screening and stability assessments
are required. What can the industry
anticipate for future HP/HT wells
in terms of architecture, product
development, and regulatory
challenges? This paper identifies
current development paradigms and
discusses the future challenges in
well planning, product development,
and regulation.
HP/HT Completion
Technology Challenges
The technological challenges associat-
ed with the completion of wells at and
above HP/HT conditions are diverse and
continue to increase. Previous inves-
tigations into HP/HT projects identi-
fied technology gaps related to packers,
bridge plugs, liner hangers, subsurface
safety valves (SSSVs), tubing-to-packer
seals, and related products. (Please see
the complete paper for a comprehen-
sive list of challenges faced in HP/HT
environments, as well as a discussion
of the historical perspective in HP/HT
well development.)
In addition to the general challenge
of  materials design and testing for
HP/HT environments, several spe-
cific component-based challenges
also exist.
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper SPE 170919, “The HP/HT Completion Landscape—Yesterday, Today, and
Tomorrow,” by Douglas J. Lehr and Scott D. Collins, Baker Hughes, prepared for the
2014 SPE Annual Technical Conference and Exhibition, Amsterdam, 27–29 October.
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 2016
Packers. Packers and bridge plugs
have  been developed for service con-
ditions as challenging as 500°F and
25,000 psi, but the primary difficul-
ty in the development process today is
the availability of materials, both me-
tallic and nonmetallic, which are suit-
able for very high levels of stress and
strain and which possess the desired
corrosion resistance to achieve longev-
ity requirements.
SSSVs. SSSVs contain many dynamic
seals which must maintain their integri-
ty and operating characteristics over the
life of the completion. Also, the opera-
tor must have the capability to extend
the life of a malfunctioning safety valve
through the use of “insert valves.” These
are smaller-diameter wireline-conveyed
valves that can be run and inserted into
the bore of the tubing-mounted safety
valve so that production can continue
under fail-safe conditions.
Liner Hangers. Liner hangers with in-
tegral packoff capabilities (packer-type
expandable seals) have been developed
for HP/HT applications. Typically, these
tools are required to perform their seal-
ing role to a gas-tight requirement.
However, an industry specification tai-
lored for the operational role of liner
hangers does not yet exist.
Electronics. Conventional industri-
al and military electronic components
are typically rated only to 125°C, far
below the rating required for HT down-
hole electronics applications such
as measurement-while-drilling and
rotary-steerable systems in which they
are used. Despite this, the oldest and
largest consumer of electronics for HT
applications is the downhole oil and
gas industry.
Intelligent Monitoring and Produc-
tion Systems. For downhole monitor-
ing, electronic systems and fiber-optic
(FO) systems are available. Electronic
monitoring systems are marketed for
use at 150°C and 30,000 psi, at which
life expectancy is 10 years. Higher-
temperature versions are currently
marketed for use at downhole condi-
tions as high as 175°C and 30,000  psi.
At these conditions, life expectancy is
only 5 years. FO monitoring systems are
currently marketed for temperatures as
high as 536°F at 20,000  psi. An im-
portant feature of FO systems is that
they contain no electronic components;
hence, they can operate reliably at much
higher temperatures than electronic
systems, and for much longer periods
of time.
Intelligent production systems, some-
times referred to as intelligent-well sys-
tems, consist of flow-control valves,
gauges, chemical-injection valves,
and other components, and are used
to control zonal production and act as
platforms for monitoring systems. In
general, these systems have been up-
graded to “near-HP/HT” status. Com-
mercially available electric systems on
the market are rated for pressures up
to 15,000 psi, but for sub-HP/HT tem-
peratures, with life expectancy as high
as 20 years.
HP/HT Challenges Specific
to Well Intervention
Historically, discussions regarding
technology gaps and challenges tend to
focus on completion tools and systems.
However, there are also significant chal-
lenges in well intervention.
75
 Redundancy in Shoe-Track Isolation.
Several Gulf of Mexico (GOM) operators
have recently used advanced permanent
bridge plugs for standalone barrier ap-
plications in ultra-HP/HT conditions to
achieve redundancy in shoe-track integ-
rity. These advanced permanent bridge
plugs (sometimes referred to as iso-
lation plugs) combine bridge-plug and
production-packer technology to satis-
fy the need for ultra-HP/HT shoe-track
isolation and life-of-the-well longevity.
Tubing Cutters. A variety of tubing cut-
ters are available commercially. Some
are effective into the ultra-HP/HT re-
gion, but few are known to be consis-
tently effective in these applications. Jet
cutters use a shaped-charge explosive to
make the cut. A variety of charges can be
used, and these models will be subject to
(approximately) the same temperature
limitations as perforating guns.
Chemical cutters operate by spraying
a chemical through small ports in a tool
body. In HP environments, their effec-
tiveness is reduced by the backpressure
effect (high hydrostatic pressure) on the
chemical cutting fluid. At HP/HT condi-
tions, chemical-cutter efficiency is well
below 50%.
Radial torch cutters use energized
plasma to make a cut. They are current-
ly rated up to 500°F and 20,000 psi.
Mechanical cutters are limited by
temperature because of the electronics
and pressure owing to the housings that
carry the electronics. Current technolo-
gy can operate at 392°F and 20,000 psi.
Mechanical cutters provide a controlled
cut and generate only fine debris. The
cut is controlled at surface, with the
ability to modify the cut in real time.
Logging Tools and Electronics. Ser-
vice life for printer-circuit-board (PCB)
-based electronics packages at HP/HT
conditions is very limited; at temper-
atures greater than 150°C, PCB life is
measured in hours. A few new logging
tools use hybrid or multichip modules
and are rated at 175°C; their longevity
is measured in days. At temperatures
greater than 175°C, electronics usage is
76
currently limited to a few passive log-
ging tools, and longevity is measured in
hours. These tools are passively cooled,
which explains their short life span.
Miscellaneous Challenges. Several fur-
ther significant intervention challenges
exist in conveyance and fishing in HP/HT
conditions, including work-string limi-
tations, packer removal, temperature
limitations of positive-displacement
motors, and pressure and temperature
limitations of ballistic setting tools.
Well Planning
Systems-Integration Testing. Systems-
integration testing for many applica-
tions can prove challenging, but is criti-
cal to the success of the completion or
intervention. For example, an HP/HT
bridge plug, HP/HT nonballistic hydro-
static setting tool, and an HP/HT casing-
collar locator can each be validated sep-
arately, but integrating them and testing
them as a system at downhole condi-
tions is the so-called “acid test.”
Conveyance Methods. There are sev-
eral methods to convey tools into a well.
These methods include pipe, coiled tub-
ing, and wireline (slickline and electric
line). The decision to use one method
over another will depend on many fac-
tors and will determine how the rig
must be configured for the operation.
At greater depths, it is preferred, when
possible, to use wireline because this
can reduce rig time significantly.
Hazard and Operability (HAZOP)
Analysis. A HAZOP analysis is used to
identify hazards and operational prob-
lems that may occur during well op-
erations. Identifying potential hazards
and operational problems correctly
and having a plan in place and know-
ing the advantages and disadvantages
of various options can ultimately help
prevent loss of well control and can
save lives. In an HP/HT application, a
HAZOP analysis may prove useful in
identifying contingency tools that need
to be developed or tested before use
in a well.
The Regulatory Landscape
Regulatory requirements vary globally
and are beyond the scope of this paper.
Instead, this section describes some of
the Bureau of Safety and Environmental
Enforcement (BSEE) requirements for
US GOM waters.
Deepwater-Operations Plan (DWOP).
All HP/HT completions require a new-
technology (NT) DWOP (NTDWOP),
regardless of water depth. BSEE regu-
lators require that any NT that is tech-
nically complex, and that requires a
high degree of specialized knowledge,
be reviewed by an independent third
party. If the NT exceeds the limit of ex-
isting standards, industry experts and
the BSEE must discuss the matter and
achieve a high degree of convergence. If
the NT conflicts with existing engineer-
ing standards, the BSEE will not approve
its use.
NTDWOP Process for HP/HT Applica-
tions. The BSEE recommends that the
well operator contact the Technical As-
sessment Section of the BSEE as early
as possible concerning an HP/HT proj-
ect to receive up-to-date guidance. For
any NT, an NT Conceptual DWOP must
be submitted with a complete list of all
equipment and materials that will be
used in the HP/HT well along with the
proposed engineering standards that
will be used to evaluate materials se-
lection and design-verification analysis,
and perform validation testing. After
the development of the NT is complete,
the NT DWOP submittal must contain
all the analysis and test reports pro-
posed in the NT Conceptual DWOP (see
the complete paper for a description of
these elements).
Design Verification and Analysis.
The BSEE currently defaults to Ameri-
can Petroleum Institute (API) PER 15K
and API 17 TR8 for guidance on HP/HT
material selection, design-verification
analysis, and validation testing. How-
ever, the BSEE does not consider
these documents to be all-inclusive
or complete. JPT
JPT • APRIL 2016
Managed-Pressure-Drilling Technology
Delivers Challenging HP/HT Drilling Campaign

T he Shearwater field is a deep,

high-pressure/high-temperature
(HP/HT) reservoir located in the UK
drilled into the top of the Cromer Knoll
formation. 10×10¾-in. casing would
be set across this hole section, and an
◗

◗
Focus on MPD fingerprinting and
use of data
Focus on MPD well control and
Central Graben of the North Sea. 8½-in.-hole section would be drilled to training
A high level of reservoir depletion just above the top of the Kimmeridge
(greater than 8,000 psi) has resulted shale formation. A 7⅝-in. drill-in-liner MPD and Wellbore
in significant changes to the drilling system would then be used in conjunction Strengthening: Considerations
envelope that has added complexity with MPD and wellbore-strengthening When Combining Technologies
to the drilling practices required material to drill into the top of the Ful- The use of wellbore-strengthening mate-
to exploit the remaining reserves mar reservoir. The reservoir was planned rial, despite its appeal, does put a signifi-
successfully. Managed-pressure-drilling to be drilled with a 6½-in. hole size cant strain on surface equipment (e.g.,
(MPD) technology was implemented opened out to 7½ in., and the reservoir pumps, valves, strainers, and pipework)
in conjunction with drill-in liner and would be completed with a 7×5-in. pro- and, on the basis of the Shearwater ex-
wellbore-strengthening technologies duction liner. The MPD objectives by hole perience, renders float equipment (non-
to successfully deliver the first well in section are discussed in detail in the com- return valves) ineffective. The wellbore-
a redevelopment campaign and prove plete paper. strengthening material was also capable
the techniques required to prolong MPD was planned as an enabling of blocking the pressure-relief valves de-
field life. technology because of the tight fracture- spite their orientation being vertical and
pressure/pore-pressure wellbore-stability above the primary flowline.
Shearwater Overview window. Fig. 1 illustrates the planned Such a mixture, containing a wide
Shearwater is an HP/HT gas/conden- wellbore configuration and the expected range of sized particles, also creates a
sate field discovered in 1988. Primary pressure profiles. significant challenge for geologists to
production is from the Fulmar, a sand- retrieve formation cuttings, which may
stone reservoir with virgin pressure of The Case for MPD represent less than 1% of the solids re-
15,400  psi and temperatures greater In simple terms, MPD can be thought of covered from the shale shakers. Opera-
than 360°F. The field came on stream in as “virtual mud weight.” This means that tional experience from Shearwater led to
2001. The large field-pressure depletion the effective mud weight can be changed the development of several procedures to
resulted in compaction at the Fulmar for- instantaneously, without requiring a cir- cope with this solids-laden environment.
mation level and led to mechanical fail- culation or the actuation of blowout pre- In summary, the two technologies
ure of the production liners because of venters. This is typically achieved by con- worked well together, with no significant
shear deformation. trolling surface backpressure through challenges associated with MPD-choke
A drilling campaign to restore Fulmar a dedicated MPD choke-manifold and plugging. However, increased wear on
production was initiated in 2013. The pri- -control system. pumps and potential for plugging strain-
mary plan was to abandon the existing Keys to MPD implementation include ers and pipework must be considered.
reservoir sections of the wells and per- the following: In addition, floats or nonreturn valves
form shallow sidetracks from the 20-in. ◗ Focus on critical-path rig time and should not be relied upon.
casing. A 16-in. hole was planned to the interfaces
top of the Tor formation (above the pres- ◗ Focus on data acquisition and data MPD Cementing:
sure ramp), and a 12¼-in. hole was to be validation Challenges and Lessons
Some of the primary challenges with
cementing in MPD mode involve the in-
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
accuracy of modeling in tight annuli with
of paper SPE 175479, “MPD Technology Used To Deliver Challenging HP/HT Drilling
uncertain hole size (unless caliper logs
Campaign,” by Robert Graham, Martin Geddes, Tim Harris, Dominic Flaherty, are run), uncertain eccentricity, and mul-
Nigel Shuttleworth, Bruce McEwan, Noor Nordin, Michael Cadd, John O’Grady, tiple fluids with uncertain interfaces and
and Pete French, Shell, and Richard Sandell and Stuart Jeffries, Blade Energy associated rheology.
Partners, prepared for the 2015 SPE Offshore Europe Conference and Exhibition, Casing- and liner-cementing oper-
Aberdeen, 8–11 September. The paper has not been peer reviewed. ations are also conducted without the

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

JPT • APRIL 2016 77

 11,000
12,000
Tor
Depth (ft true vertical depth)
13,000
14,000
Hod
15,000
Cromer Knoll
Kimmeridge/Heather
16,000
Upper Fulmar
Lower Fulmar
17,000
0 2,000
Fig. 1—Well SW-09s1 planned casing profile and expected pressure gradients. ESD=equivalent static density.
benefit of downhole pressure measure-
ment, so maintaining constant bottom-
hole pressure (BHP) relies on modeling
and pump pressure as an indicator. In
addition, careful monitoring of volumes
is critical for identifying any changes
to wellbore behavior. This is particu-
larly important when downhole losses
are experienced.
One key learning was to maximize the
available pressure window by reducing
the mud weight. Because the drilling-
fluid density is typically hydrostatical-
ly underbalanced, surface backpressure
needs to be maintained at the end of the
cement job. Therefore, provision needs
to be made to provide backpressure con-
trol in the drillpipe without the benefit
of floats or nonreturn valves in the event
that there is a desire to reverse strip
stands above the liner top before circu-
lating bottoms-up.
Well SW-09s3—Case Study
The results of two other case studies are
detailed in the complete paper. It should
be noted that numerous equipment mod-
ifications and upgrades, described in de-
tail in the complete paper, have been
made throughout operations to date.
78
13⅜-in. Shoe
10-in. Shoe
7⅝-in. Shoe
5-in. Shoe
4,000 6,000 8,000 10,000
Pressure
For this well, the wellbore was side-
tracked by cased-hole whipstock from
the 10-in. casing in the Tor. The major
change in configuration from other wells
was the plan to drill the 5-in. drill-in liner
to total depth (TD) in the top of the Lower
Fulmar instead of stopping at the top of
the Upper Fulmar. This would also pro-
vide the optimum completion as per the
base case with the deep-set 10-in. casing
planned in Well SW-09s1.
An 8½×9½-in. hole was first drilled
to the top of the Cromer Knoll, where
a 7⅝-in. liner was run and cemented
with MPD assistance. Static mud densi-
ty was reduced from 16.0 to 15.7 lbm/gal
to maximize the operating window for
loss-free circulation.
A dynamic pore-pressure test and a
dynamic formation-integrity test were
conducted as TD was approached in this
hole section. This confirmed a pore-
pressure gradient in the Hod of ap-
proximately 16.6 lbm/gal and a fracture
gradient at the base chalk of at least
16.9  lbm/gal. However, losses persist-
ed even as the equivalent mud weight
was lowered to 16.5 lbm/gal. Losses
were eventually cured by pumping a
lost-circulation-material pill with the bit
Expected Pore Pressure
Expected Fracture Pressure
ESD
ECD
12,000 14,000 16,000 18,000
above the loss zone. Formation strength
of 17.0 lbm/gal was established before
displacing to 16.7-lbm/gal weighting-
agent-reduction-particle (WARP) mud
and tripping out of hole to pick up the
7⅝-in. liner.
After running in the 7⅝-in. liner, the
16.7-lbm/gal WARP mud was displaced
with 15.4-lbm/gal mud before conduct-
ing an MPD-assisted cement job—main-
taining a constant BHP of 16.7-lbm/gal
equivalent circulating density (ECD).
Displacement started at 50 gal/min. Be-
fore the lighter mud entered the annu-
lus, an increase in standpipe pressure
was experienced at 1,900 hours after an
attempt to rotate the liner. The liner was
unable to be rotated (stalled on torque
limit), and the increase in pump pres-
sure remained, indicating some restric-
tion in the annulus. A total of 24 bbl was
lost during the displacement despite an
indication from the MPD model that the
equivalent mud weight decreased during
the circulation.
Prejob MPD fingerprinting was per-
formed at circulating rates of 1, 2, and
3  bbl/min while waiting on batch mix-
ing of cement to determine operating
parameters (surface backpressure and
JPT • APRIL 2016
pump pressure). This was undertaken
to ensure that the window was suffi-
cient for displacement to be performed
at a constant loss-free circulating rate
using pump pressure as a guiding pres-
sure. On the basis of this fingerprinting,
the displacement rate was reduced from
3 to 2 bbl/min before spacer entered
the annulus.
Following successful loss-free cemen-
tation of the 7⅝-in. liner, the shoe was
drilled out and was inflow tested suc-
cessfully. The well was then drilled with
a 6½-in. bit to just above the Kimmer-
idge shale with 15.4-lbm/gal mud and an
ECD of 16.7 lbm/gal with MPD. Before
tripping for the drill-in liner, a dynamic
flow check was performed to determine
the required mud weight. The hydro-
static mud weight was then increased to
16.2 lbm/gal, and the drilling assembly
was tripped out of hole. After running
back in hole with the 5-in. drill-in liner
(with a 6½-in. drillable polycrystalline-
diamond bit), the mud weight was re-
duced to 15.4 lbm/gal, and the mud was
treated with wellbore-strengthening ma-
terial. The drill-in liner was then drilled
successfully to TD while maintaining a
constant BHP of 16.7-lbm/gal ECD with
MPD. No losses or background gas was
encountered during this phase.
This 5-in.-drilling-liner operation is
currently the longest drill-in-liner length
achieved in the North Sea, despite
being drilled through a highly depleted
HP/HT reservoir.
Upon reaching TD, the drill-in liner
was cemented under MPD condi-
tions, maintaining a constant BHP of
16.7-lbm/gal ECD. The plug did not bump
in Well SW-09s3. The mechanism of
failure is still under investigation.
The major change in the cement-
ing plan for the 5-in. drill-in liner for
Well SW-09s3 was to increase the ce-
ment volume to improve the probability
of good cement coverage over the Ful-
mar in the event that the plug did not
bump. Because of the use of wellbore-
strengthening material, the floats in the
drill-in liner failed to hold. No losses
were incurred during the cementing op-
erations, and, after waiting on cement,
the pressure was bled off and bottoms-up
circulation yielded no background gas.
The well was completed successfully and
is currently on production. JPT

JPT • APRIL 2016 79

 TECHNOLOGY FOCUS

History Matching and Forecasting

Alexandre Emerick, SPE, Reservoir Engineer, Petrobras

Throughout my career, I have witnessed History matching should not process that involves several disciplines
some funny moments concerning res- working together toward the same goal,
ervoir modeling and history matching. be seen as a sealed task. answering questions about the reservoir
Here, I will talk about two of them. The History matching is only to be able to make useful forecasts and
first one is an adaptation of something
one part of something more aid decision making.
I read: “History matching is the process Last year, we had a nice collection
of torturing a model until it confesses.” comprehensive—reservoir of papers presented at SPE conferences
Despite the obvious anecdotal nature, modeling, a process that about history matching and forecasting.
this sentence is actually an interesting There are three points I will mention.
analogy. Torture makes the victim say involves several disciplines First, there is a clear trend in the field
anything you want to hear, even if it is not working together toward the applications of moving away from histo-
the truth. Please, do not get me wrong. I ry matching a single model and adopting
am not suggesting that history matching
same goal ... . forecasts on the basis of multiple realiza-
is a despicable practice comparable with tions. Second, there are some interesting
torture. The analogy is more subtle. What the coffee break, I overheard a colleague, papers on integrated reservoir studies. I
I mean is that there is a scrupulous limit probably upset with the talk, paraphras- selected one for the additional-reading
for history matching; if it starts looking ing with “Geological Modeling: 30 Years list. Finally, I noticed a significant num-
like you are “torturing” the model, then of Failure.” The geologist was unhappy ber of interesting papers on proxy and
you went too far. Stop there and rethink with history matching because, in his data-driven models for production fore-
the process. You are not going to get reli- past experience, that was the excuse for cast. I am not sure that this is a current
able information from this model anyway. the engineer to distort his model. The trend, but I selected two papers for this
The second incident occurred in a engineer, on the other hand, blames the month’s feature. (One is summarized in
workshop I attended last year. At some geological models that are not able to the main selection, and the other is in
point, a geologist made a presentation reproduce the observed production. That the additional-reading list.) Of course,
about history matching a field problem. brings me exactly to the point I want to you can find many other interesting
He started the talk with the message make. History matching should not be papers at onepetro.org. I hope you enjoy
“History Matching: 30 Years of Failure.” seen as a sealed task. History match- the reading. JPT
At first, I found it somewhat funny, but ing is only one part of something more
at the same time a little troubling. During comprehensive—reservoir modeling, a
Recommended additional reading
Alexandre Emerick, SPE, is a reservoir engineer at Petrobras at OnePetro: www.onepetro.org.
Research Center in Rio de Janeiro. He has 13 years of experience SPE 172594 Integration of Reservoir-
in applied research in reservoir engineering. Emerick’s research Performance and Geoscience Studies in
interests include reservoir simulation, history matching, uncer- the History Match of a Complex Carbonate
tainty quantification, and optimization. At Petrobras, he has Reservoir—A Case Study From the Magwa
Marrat Reservoir, Kuwait by Menayer Al
worked as principal researcher and coordinator of projects on
Jadi, Kuwait Oil Company, et al.
time-lapse seismic, smart fields, optimal well placement, history
matching, and closed-loop reservoir management. Emerick SPE 173206 Physics-Based and
holds BS and MS degrees in civil engineering from the University of Brasilia, Brazil, Data-Driven Surrogates for Production
and a PhD degree in petroleum engineering from The University of Tulsa. He is the Forecasting by Hector Klie, ConocoPhillips
author or coauthor of 22 technical papers, most about history matching. Emerick SPE 174310 Seismic Assisted History
received the Outstanding Service Award as an SPE Journal technical editor in 2013 Matching Using Binary Image Matching
and 2014. He is a member of the JPT Editorial Committee and can be reached at by Dennis Obidegwu, Heriot-Watt
emerick@petrobras.com.br. University, et al.

80 JPT • APRIL 2016

A Data-Driven Model
for History Matching and Prediction

I n this paper, the authors derive and

implement an interwell numerical
sufficiently well that, when INSIM is
used for history matching, the result-
2

simulation model (INSIM) that ing history-matched model can be en- (Ti,2 ,Vp,i,2) (Ti,1 ,Vp,i,1)
can be used as a calculation tool to tered into INSIM to provide reasonable
approximate the performance of a future predictions and provide informa-
reservoir under waterflooding. In tion on the flow dynamics of the res-
INSIM, the reservoir is characterized ervoir. It is hoped that the model and
1
as a coarse model consisting of a methodology presented here will prove i
number of interwell control units, useful for monitoring and understand-
and each unit has two specific
parameters: transmissibility and
ing waterflooding operations conducted
on a black-oil reservoir and that INSIM
(Ti,3 ,Vp,i,3)
3
control pore volume. INSIM is will ultimately be useful for waterflood-
applied to perform history matching ing optimization. Fig. 1—Illustration of modeling
for parameter estimation and to Models based on the statistical cor- of volume-flow-unit connections
infer interwell connectivity and relation or the connectivity between in- between wells. Ti=transmissibility
of Node i.
geological characteristics. jectors and producers estimated from
flow-rate data have been used previ-
Introduction ously to characterize reservoirs for the to injectors. At the same time, INSIM
History matching with a reservoir simu- purpose of waterflooding management. retains the computational efficien-
lator is the most common way to con- Unlike previous correlation-based mod- cy of previous correlation-based mod-
dition rock-property fields to produc- els, INSIM is able to effectively predict els that incur far less computational
tion data. However, production data are the water cut and oil-production rate cost than a traditional numerical reser-
never sufficient to resolve the reservoir and hence can be used as the forward voir simulator.
properties (e.g., gridblock permeabili- model for assisted history matching of
ties), and few assisted-history-matching these data. Specifically, the model can INSIM
tools exist in commercial reservoir sim- be used in automatic history match- In INSIM, the reservoir is first con-
ulators. Consequently, when a reservoir ing. Moreover, the model is derived di- sidered as a network model consist-
simulator is used as the forward model rectly from the correct two-phase-flow ing of a series of units connecting well
when history matching, the number of mass-balance equations, and thus the pairs. Unlike correlation-based models,
reservoir parameters is often reduced transmissibilities derived from histo- INSIM allows not only for injector/pro-
to a small number on the basis of com- ry matching reflect an average trans- ducer connections but also for injector/
putational experiments and physical missibility between wells. In addition, injector and producer/producer connec-
insight. Although the INSIM method- because INSIM is based on simulation tions. Thus, it is expected that INSIM
ology introduced here does limit the flow equations, it can incorporate large can better resolve the flow that occurs
number of history-matching parame- changes in flow rates, flow directions, in the region between pairs of wells of
ters, the primary objective of INSIM is and injector allocation factors—the the same type.
to provide a fast, simplified simulation interaction between pairs of produc- As shown in Fig. 1, Well Node i is as-
model to calculate flow and transport ers and the conversion of producers signed a volume denoted by Vp,i depict-
ed by the dashed red circle. At present,
This article, written by JPT Technology Editor Chris Carpenter, contains highlights only fully penetrating vertical wells and
2D flow are considered; thus, in Fig. 1,
of paper SPE 173213, “INSIM: A Data-Driven Model for History Matching and
Vp,i is the cylindrical volume enclosed
Prediction for Waterflooding Monitoring and Management With a Field Application,”
by the red-dashed circle extended over
by Hui Zhao, SPE, Yangtze University; Zhijiang Kang, China Petroleum and Chemical the reservoir thickness. Flow in the in-
Corporation; Xiansong Zhang, China National Offshore Oil Corporation; Haitao Sun terwell area between Well i and its con-
and Lin Cao, Yangtze University; and Albert C. Reynolds, The University of Tulsa, nected well nodes is modeled as flow
prepared for the 2015 SPE Reservoir Simulation Symposium, The Woodlands, Texas, within a region characterized by two
USA, 23–25 February. The paper has not been peer reviewed. parameters, transmissibility and a con-

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

JPT • APRIL 2016 81

 trol pore volume, where the transmissi-
bility controls flow between Well j and
Well i in the interwell volume. For Fig. 1,
j=1,2,3, but there is no limit to how
many wells can be connected to Well i.
However, the connections have to be de-
fined before any computations can be
performed. For each single Well Node
i, there is a well-controlled pore vol-
ume such that the summation of all Vp,i
should be equal to the pore volume of
the reservoir. Practically, one can gen-
erally use the area enclosed by link-
ing all the middle points between Well i
and its connected adjacent wells to de-
fine Well i’s controlled area and hence
define Vp,i.
The connections between wells must
be specified a priori in INSIM. The com-
plete paper contains a discussion of the
material-balance equation and the pres-
sure calculation.
Saturation Tracking and Well-
Dynamic-Data Prediction. Because the
reservoir is modeled as a series of con-
trol units between well pairs, the satu-
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82
ration tracking for each control unit can
be viewed as a 1D problem. For oil/water
two-phase flow, Buckley-Leverett theo-
ry provides a relationship between the
cumulative water injected and the loca-
tion of the flood front. In the tradition-
al way, Buckley-Leverett theory is used
for saturation tracking from injector to
producer. In the computation of the sat-
uration distribution in INSIM, standard
Buckley-Leverett theory is applied if the
flow direction along a connection be-
tween a well pair does not change. How-
ever, for the case where flow reversal
occurs—for example, because of con-
version of a producer to an injector—
the Buckley-Leverett computations are
applied in an ad hoc manner to track the
flow of injected water. Buckley-Leverett
theory is also used to track flow from
producer to producer. This last option is
useful when two producers (P-a and P-b)
are connected, but only one of these
producers—say, P-a—is connected to
a certain water injector, I-a. In this sce-
nario, injected water flows along the
connection from I-a to P-a until break-
through. After breakthrough, if all of
the water cannot be produced by P-a,
in the INSIM model, some of this water
will flow along the connection from P-a
to P-b if the pressure at P-b is lower than
the pressure of P-a.
Well-Rate-Allocation Factors. Results
from INSIM can be used to calculate
the allocation factor for the fluid rate
between each injector/producer well
pair by use of the same basic proce-
dure used in correlation-based mod-
els. However, unlike the results from
correlation-based methods, the alloca-
tion factor changes with time and thus
reflects the dynamic interactions be-
tween wells. For an injector/producer
pair, the allocation factor of the liquid-
flow rate from Injector i is defined as
the liquid flow from Injector i to the pro-
ducer divided by the total injection rate
of the injector.
History Matching Phase-Rate
or Water-Cut Data
Predictions with INSIM depend on
the sets of the two parameters defined
for each connected well pair. In histo-
ry matching the phase-rate or water-
cut data at producers, these parame-
ters represent the reservoir parameters
(optimization parameters or history-
matching parameters). In general, the
inverse problem is ill-posed and some
regularization is required. However, be-
cause of the limited number of con-
nections used to date, the authors have
been able to generate reasonable results
without regularization.
Because the computational time re-
quired to run INSIM is small, the au-
thors simply use a gradient-based op-
timization algorithm with derivatives
computed by the finite-difference meth-
od to optimize the objective function.
The algorithm used is an interior-point
method from commercially available
optimization tools. In the complete
paper, the authors investigate the vi-
ability of INSIM by considering two
examples, a synthetic example and a
field example.
Conclusions
Despite the ad hoc computation of satu-
ration at well nodes after flow-direction
reversals, the computational results
suggest that INSIM is a simple, compu-
tationally efficient forward model that
can replace a reservoir simulator when
history matching phase-rate data or
water-cut data obtained during water-
flooding operations. Although the re-
sults illustrate the validity of the INSIM
model, it may be possible to improve
this model significantly by adding a
more rigorous front-tracking computa-
tion and by the use of the parameters of
power-law relative permeability curves
as history-matching parameters.
The INSIM process for solving for
pressure and saturation is fast and sta-
ble. History-matched results obtained
by the combination of INSIM with an
optimization algorithm allow one to de-
termine the formation characteristics
between well pairs, the rate allocation
factors for each injector (the fraction
of injected water that flows to each pro-
ducer connected to the injector), and
the principal directions of the flow of
water from each injection well. Unlike
correlation-based models, INSIM can
produce reasonably accurate phase-flow
rates and water cut and handle chang-
es in flow directions caused by closing
wells or by the conversion of producers
to injectors. JPT
JPT • APRIL 2016
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 Streamline-Based History Matching for
Multicomponent Compositional Systems

S treamline-based history-matching
techniques have provided
significant capabilities in integrating
from a given set of static and dynamic
conditions. This process is outlined in
detail in the complete paper.
matching of the production data. It is
important to note that the computation
of the optimal travel-time shift is car-
field-scale water-cut and tracer data ried out as post-processing of the data at
into high-resolution geologic models. Amplitude, Travel-Time, and each well after the production response
However, application of the streamline- Generalized Travel-Time is computed.
based approach for simultaneous Inversion (GTTI) Methods The sensitivity of the GTTI method
integration of water cut and bottomhole The approach to minimizing the objec- is also found by travel-time inversion.
pressure (BHP) has been rather limited. tive function through all the observed The GTTI method is desirable when ob-
In this paper, the authors introduce a points and simulation results is defined served data show monotonic trends and
novel semianalytic approach to compute as amplitude inversion. The travel-time a large number of data points are avail-
the sensitivity of the BHP data with inversion, instead, attempts to match able. Amplitude matching is appropri-
respect to gridblock properties. single reference times such as water- ate when data are nonmonotonic with
breakthrough point or peak tracer re- few sampling points. In other words,
Introduction sponse. The amplitude matching is GTTI is often used to integrate water
The streamline-based method has many general in terms of reduction of the cut or gas/oil ratio (GOR), while com-
advantages in terms of computational objective function, because while the position information is integrated by
efficiency and applicability. The main travel-time inversion reduces the objec- amplitude inversion.
advantage of the streamline-based tive function at only a single point, the
method is that it is able to calculate pa- amplitude matching can cover all the Pressure-Drop Sensitivity
rameter sensitivity with a single stream- data points. However, the travel-time- The authors propose a new approach to
line simulation or post-processing of based approach is often used because integrating pressure data by calculating
the grid-based finite-difference simula- amplitude inversion is a highly nonlin- analytical sensitivity of the pressure or
tion results. The calculated sensitivity is ear problem and presents difficulties in pressure drop along streamlines with
comparable with the sensitivities com- computational cost and in reducing the respect to reservoir parameters.
puted from numerical perturbation or objective function when there is a large The streamlines are traced with a pres-
with adjoint-based sensitivities. It is pos- amount of wells and data points. sure gradient generated from an injec-
sible to calculate the parameter sensitiv- An alternative approach to combine tor or a producer. Normally, pressure
ity from a commercial finite-difference the advantages of amplitude inversion is solved on a 3D grid by an implicit-
simulator by use of streamlines traced and travel-time inversion is the GTTI pressure/explicit-saturation solver or is
using the flux field. This allows account- method. The objective is to find an opti- obtained from a commercial simulator.
ing for detailed physics by means of mal time shift that provides good agree- However, it is also possible to construct
finite-difference simulation while taking ment with an arbitrary number of ob- the pressure equation along a streamline,
advantage of the power of the stream- served and calculated data points. In assuming that there is no interaction
lines for sensitivity computations. other words, the objective of the GTTI outside of the 1D coordinate. The over-
method is to maximize the coefficient all idea of the proposed approach is to
Streamline and of determination of observed and cal- construct the pressure equation along a
Parameter Sensitivity culated data points. The GTTI method streamline with the given boundary con-
Streamline-based history matching retains the desirable properties of the ditions and take a derivative with respect
starts with the tracing of streamlines travel-time inversion and the amplitude to reservoir static properties. This con-
cept is described in detail in the complete
paper with respect to continuous space,
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
discretized space, and BHP sensitivity.
of paper SPE 174750, “Streamline-Based History Matching of Arrival Times and
Bottomhole-Pressure Data for Multicomponent Compositional Systems,” by Shusei Objective-Function-
Tanaka, Dongjae Kam, Akhil Datta-Gupta, and Michael J. King, Texas A&M Minimization Formulation
University, prepared for the 2015 SPE Annual Technical Conference and Exhibition, The objective function of this study is
Houston, 28–30 September. The paper has not been peer reviewed. the production-data and BHP misfit of

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

84 JPT • APRIL 2016

the rate-constrained wells. Once a ma-
trix is constructed, an iterative sparse
matrix solver is used for solving the
system of equations. Because the orig-
inal minimization equations often
lead to an unstable solution, the ad-
ditional regularization term is added
to improve both convergence and
final solution.
It is possible to smooth the solu-
tion by adding a symmetric stencil,
or to give  some prior information as
a covariance type of matrix. Once the
change  of the static variable is calcu-
lated, then the parameters are updat-
ed and  the  flow simulation is conduct-
ed again. The history-matching process
continues until the residual reaches a
certain tolerance or a given maximum
iteration number.
Verification of Pressure and
Arrival-Time Sensitivity
The model is tested by a synthetic case to
verify the proposed pressure-sensitivity
equation (results are discussed in de-
tail in the complete paper). Because the
developed formulation is applicable
for multiphase corner-point geometry,
all the cases are tested on the basis of
the three-phase water- or gas-injection
problem with capillarity and gravity.
Here, the tested geometry for sensitiv-
ity verification is 1D corner point and a
2D areal model.
The first test of sensitivity verifica-
tion is conducted with 1D corner-point
geometry. The geometry has a zigzag
shape with an uphill trend in the verti-
cal direction, as shown in Fig. 1. Three
cases of different boundary conditions
are tested: single producer at center,
single injector at center, and rate con-
straint of both injector and producer lo-
cated at the edge of the model.
The permeability is given as heteroge-
neous, ranging from 10 to 1,000 md and
distributed randomly. The analytical
sensitivity calculated by the proposed
method is verified by the adjoint-based
method implemented in a commer-
cial simulator and by the numerical-
perturbation method. Among these
three methods, the perturbation meth-
od is sensitive to the magnitude of the
perturbation of the static value and is
not reliable in finding accurate param-
eter sensitivity. Because of this inac-
JPT • APRIL 2016
2,850
Depth (ft)
2,900
2,950
3,000
400
3,050 200
0
x
y
1,000 3,000 5,000 7,000 9,000 11,000 13,000
x
Fig. 1—Corner-point geometry used for 1D pressure-sensitivity test.
curacy of the numerical-perturbation
method, the adjoint-based sensitivity
is displayed for the verification of the
pressure sensitivity.
Application to
History Matching
As streamline sensitivity of pres-
sure and arrival time is verified, a de-
veloped algorithm is applied to the
history-matching problem. All of the
cases include matching of BHP in addi-
tion to the breakthrough of the injection
fluid, which is water cut for the water-
injection problem and GOR and carbon
dioxide composition for the gas-injection
scenario. The results of the applica-
tion are discussed in detail in the com-
plete paper.
Conclusions
A novel streamline-based data-
integration method is proposed, and its
effectiveness is demonstrated by com-
parisons of parameter-sensitivity cal-
culations and history-matching scenar-
ios. Although the approach relies on
streamline-based sensitivity calcula-
tions to relate pressure and saturation
responses to the reservoir parameters,
it can be applied with either stream-
line simulators or conventional finite-
difference simulators. The conclusions
from the work can be summarized
as follows.
◗ We have proposed a novel
methodology for streamline-based
analytic approaches to compute
BHP sensitivity with respect to
1,000
800
600
x (ft)
Time of Flight
the permeability. Although several
assumptions are made during
the process of the derivation, the
results of the parameter-sensitivity
calculations show good agreement
with results from the adjoint-based
method.
◗ The proposed pressure-sensitivity
equation can be applied with a
single injector or producer, thus
generalizing the streamline-based
data integration, such as matching
of pressure data during the primary
drainage process.
◗ Previous work on streamline-
based history matching required
well-breakthrough information.
The results here show the
applicability of the streamline-
based approach without
breakthrough information by
including pressure information.
◗ The effectiveness of the streamline-
based data-integration approach
to multimillion-cell problems
was demonstrated. The proposed
approach also showed the
applicability of matching modular-
formation-dynamics-tester
pressure data, which provides
change of permeability in fine
scale, particularly with respect
to depth.
◗ The GTTI method to integrate
GOR and water cut and the use of
amplitude-matching techniques
to integrate pressure and
production mole fraction have
been demonstrated. JPT
85
 Bayesian-Style History Matching: Another
Way To Underestimate Forecast Uncertainty?

C urrent theoretical formulations

of assisted-history-matching
(AHM) problems within the Bayesian
framework [e.g., ensemble-Kalman-
filter (EnKF) and randomized-
maximum-likelihood (RML) problems]
are typically based on the assumption
that simulation models can reproduce
field data accurately within the
measurement error. However, this
assumption does not hold for AHM
problems of real assets. This paper
critically investigates the impact of using
realistic, inaccurate simulation models.
In particular, it demonstrates the risk
of underestimating uncertainty when
conditioning real-life models to large
numbers of field data.
Introduction
Improved simulation and history-
matching techniques have still not cured
the chronic ailment of systematically un-
derestimating uncertainty in forecast re-
sults. This is because it is very easy to for-
get or ignore uncertain factors or model
assumptions; also, the method used to
constrain a model to historical data may
excessively reduce uncertainties.
In this paper, the authors highlight
the fact that stochastic, Bayesian-style
history-matching methods can very eas-
ily lead to unrealistically reduced un-
certainty ranges in forecast results. The
complete paper discusses Bayesian-style
history matching and uncertainty quan-
tification in detail.
Large-Data Danger
Stochastic history matching has two con-
trasting stages. First, one identifies a
This article, written by JPT Technology Editor Chris Carpenter, contains highlights of
paper SPE 175121, “Bayesian-Style History Matching: Another Way To Underestimate
Forecast Uncertainty?” by Jeroen C. Vink, Guohua Gao, and Chaohui Chen, Shell,
prepared for the 2015 SPE Annual Technical Conference and Exhibition, Houston,
28–30 September. The paper has not been peer reviewed.
large number of uncertain model param-
eters in order to be confident that future
field-production results will be contained
within the range of forecast results asso-
ciated with the prior model uncertainty.
Second, when actual field data have be-
come available, one uses large quantities
of data to reduce this prior uncertainty.
The reservoir engineer must decide not
only which model parameters and field
data to use, but also how many. The effect
of increasing the number of uncertain
model parameters is intuitively clear:
Every parameter that has an impact on a
specific forecast result will add to the un-
certainty of this result.
The Bayesian version of stochastic his-
tory matching uses the data mismatch in
the likelihood weighting term to deter-
mine the ensemble of parameter values
used to run forecast simulations. Even
after optimally tuning model parameters,
it is clear that there will be a residual
mismatch between almost all field-data
values and simulated values. Therefore,
it will always be the case that the sum of
squared data mismatches will grow pro-
portionally to the number of data. Hence,
using a very large number of data has dra-
matic implications: If the data mismatch
is used to filter acceptable sets of param-
eters, it will become increasingly diffi-
cult to find parameters for which the total
data mismatch has a reasonably small
value. For the Bayesian approach, it im-
plies that only parameter values for which
the data mismatch is at or very near its
lowest possible value will end up in the
posterior ensemble. If parameters devi-
ate even slightly, there are so many terms
in the data mismatch that it becomes very
large and hence the likelihood very quick-
ly becomes exponentially smaller. There-
fore, the posterior uncertainty distribu-
tion will become increasingly narrow
simply by adding more and more data.
Mitigating the
Large-Data Danger
The spurious uncertainty reduction is
caused by the increase of the data mis-
match when the number of data increas-
es, roughly proportionally to the num-
ber of data that is used. This increase of
the total data mismatch is unavoidable
when the simplified form of the data
mismatch is used. However, it should be
clear also that the danger can be miti-
gated by changing the normalization of
the data mismatch. This approach will
indeed avoid the large-data danger; how-
ever, it could be overkill, because this ef-
fectively lumps all data into a single con-
straint on the model. Alternatively, and
more in line with the Bayesian approach,
one can revert to the nonsimplified data-
mismatch term that includes the effect of
data correlations.
Application to a Real Field Case
Model Description. The field under
consideration is a deepwater channel-
ized reservoir previously used to inves-
tigate novel AHM work flows by use of
the pluriprincipal-component-analysis
reparameterization technique. Because
the authors wished to use the model
not only for history matching but also
to investigate the uncertainty range for
forecast results, they chose to ignore
the historical data and generated syn-
thetic data with the best-match model.
To mimic a fairly common history-
matching challenge, the base-case model
uses a P50 geological realization, which
is different from the truth case. To his-
tory match this model, the authors intro-
duced 15 typical model parameters that
are deemed uncertain. However, these

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

86 JPT • APRIL 2016


parameters were of course insufficient
to convert the base-case model into the
truth-case model, because this model
has a different layout of facies. Hence,
the authors mimicked the real-life situa-
tion of trying to match data with a model
that suffers from undermodeling.
The model has one gas (disposal) injec-
tor in the flank and seven producer wells
in the crest. For history matching, the
authors imposed a liquid-rate constraint
(taken from the truth-case model) and
attempted to match the water and gas
rates of the producer wells.
A Practical History-Matching Work
Flow. A second objective of this paper
is to demonstrate the value of a practi-
cal work flow that allows for an efficient
implementation of the three-step large-
data-danger-mitigation strategy.
1. Select a wide range or a relevant
uncertain parameter—any number be-
tween, say, 10 and 1,000 would be accept-
able. Provide realistic minimum and max-
imum (or P10 and P90) values for these
parameters as well as a defensible choice
for their prior uncertainty distribution.
2. Find the region in this large parame-
ter space where the posterior probability
density is maximal [the Maximum A pos-
terior probability (MAP) point].
3. Construct a simple proxy (response-
surface model) to quickly compute rea-
sonable values for all observables in the
vicinity of the MAP point.
4. Use the familiar Box-Muller
method to generate a large number
(say, 200–2,000) of model realiza-
tions with parameters drawn in an un-
biased way from the Gaussian posterior
parameter distribution.
5. Simulate all cases to obtain an unbi-
ased sample of forecast results, and use
these results to generate cumulative distri-
butions for key performance indicators.
6. Make adjustments to the weighting
factors, the standard deviations, in the
data mismatch term.
Uncertainty Quantification
for Forecast Results
The authors then obtain a credible as-
sessment of forecast uncertainty. They
use the Bayesian approach with a simpli-
fied form for the data-likelihood term.
Cross-checks have been performed with
a likelihood function in which the ob-
JPT • APRIL 2016
Cumulative Oil, Cumulative Water (liquid volume)
1.0 1.0
Cumulative Gas (gas volume)
0.8 0.8
0.6 0.6
0.4 0.4
0.2 0.2
0.0 0.0
2009-06-01 2014-06-01 2019-06-02 2024-06-01 2030-06-01
Time (years)
Fig. 1—Forecast results for the cumulative production of oil (red), gas
(green), and water (blue) in ad hoc units. The bands of curves are a cluster
of 512 forecasts sampled from the posterior distribution with adjusted data
constraint. The dark dashed curves are the truth-case results.
servables are approximated by use of sec- constrained. The spread in results was
ond-order polynomials, which gave re- much larger, as can be seen in Fig. 1. The
sults qualitatively similar to those found band of 512 equally probable forecast re-
with linear proxies. Because the previ- sults now encompassed the truth-case re-
ous parameter-uncertainty-distribution sults, although these results were in the
function is also taken to be Gaussian, it is roughly P10 region of the band.
straightforward to generate an ensemble
of 512 model realizations with param- Conclusion
eters that are sampled in an unbiased Unless the cause of mismatch is recog-
manner from the Gaussian posterior. nized, the Bayesian-style posterior dis-
First, the straightforward approach is tribution can easily produce an un-
followed, in which all available data are certainty band of forecast results that
used with estimated values for the ex- is determined by the number of data
pected data mismatch. Note that there is used—more data leading to lower uncer-
an abundance of historical data to con- tainty. Data mismatches caused by model
strain the model; hence, a large reduction error and undermodeling typically domi-
of the prior uncertainty is expected when nate mismatches caused by data noise;
all data are used to constrain the posteri- however, model error does not reduce or
or uncertainty. The posterior uncertain- cancel out when large numbers of data
ty is unrealistically small, and the truth- are used. Thus, it is required that data
case results are far outside the band of mismatches no longer be treated as in-
512 equally probable forecast results. dependent, but be lumped into a small
Following the mitigation strategy to number of fully correlated data groups.
counter the spurious narrowing of poste- The dominance of model error over
rior uncertainty, the authors investigated data noise also implies that the customary
how many parameters had a significant form for the likelihood—exponential of
effect on the data mismatch. Investiga- a sum of squared data mismatches—can
tion revealed that the first three param- no longer be taken for granted. The au-
eters had a significant effect, after which thors propose to use the ensuing freedom
the effect declined and became very small in choice of likelihood to adopt a Gaussian
after the eighth parameter. likelihood function obtained by lineariz-
On the basis of the residual values of ing data response in the MAP point.
the maximal data mismatch in the MAP The results presented in the com-
point, the margin for data mismatch plete paper show that the practical
caused by undermodeling was adjusted work flow using a Gaussian form for
by increasing the initially estimated val- the data likelihood and adjusted values
ues by a factor of two. An ensemble of 512 for the data-mismatch standard devia-
forecast models was generated in which tions leads to credible results for fore-
parameter values were significantly less cast uncertainties. JPT
87
 PEOPLE
BEHROOZ FATTAHI, 2010 SPE President
and 2014 American Institute of Mining,
Metallurgical, and Petroleum Engineers
(AIME) President, was honored with the Or-
ange County Engineering Council Presi-
dent’s Award. He is the president of Ener-
Train Institute, which provides heavy oil
recovery training and consulting. He has more than 37 years of
experience in the industry and mostly recently worked for Aera
Energy as heavy oil development coordinator and retired as
learning adviser in 2014. Before joining the petroleum industry,
he conducted research for the National Aeronautics and Space
Administration and the National Science Foundation. Before
becoming SPE president, he had served on the SPE Board in
other roles and was a member of several committees, including
chairman of the SPE Continuing Education Committee, member
of the President’s Learning Initiative Task Force, and executive
editor of the SPE Reservoir Evaluation & Engineering journal.
He holds PhD degrees in aerospace engineering and mechanical
engineering from Iowa State University.
MIKE JARDON, SPE, has been appointed
as chief executive officer at Expro. He has
been chief operating officer at Expro since
2011. Before being president of North Amer-
ica at Vallourec and Mannesmann from
2008 to 2011, Jardon held several senior
roles at Schlumberger in wireline, comple-
tions, well testing, and subsea businesses, and has been vice
president well testing and subsea responsible for North and
South America. Jardon holds a BS degree in mechanical engi-
neering and mathematics from Colorado School of Mines.
POE LEGGETTE, SPE, has been named
managing partner of BakerHostetler’s Den-
ver office. Leggette joined the law firm in
2014 and will continue to colead the energy
team in addition to managing his energy
practice. Before joining BakerHostetler,
Leggette led Norton Rose Fulbright’s Denver
and Pittsburg offices and was the regional head of the firm’s
Americas energy practice. He has been Chambers Global and
Chambers USA ranked in energy (oil and gas combined) for 10
years and is a former assistant solicitor for the US Department
of Interior. Leggette holds a JD from the University of Virginia
and a BA from Tufts University.
MELODY MEYER, SPE, will retire from
Chevron as president of Asia Pacific explo-
ration and production effective 1 June, after
a 37-year career with the company. She will
be succeeded by STEPHEN GREEN. In her
recent years with Chevron, Meyer played an
88
important role in advancing the company’s Gorgon and Wheat-
stone projects in Australia, the Chuandongbei project in China,
and the Bibiyana expansion in Bangladesh. Meyer was previ-
ously president of Chevron Energy Technology Company until
2011, responsible for research and development and technol-
ogy services. She has held several leadership roles for Chevron
globally, including manager of operations engineering in Ka-
zakhstan, offshore production manager in Angola, vice presi-
dent of the US onshore midcontinent/Alaska business unit, and
vice president of the Gulf of Mexico business unit. Meyer holds
a BS degree in mechanical engineering from Trinity University,
San Antonio, Texas.
JAMES PEARSON, SPE, retired as chair-
man of the board of directors from Mill-
er and Lents after 42 years with the firm.
Pearson holds an MS in petroleum engi-
neering from the University of Houston and
is a registered professional engineer in the
Pearson state of Texas. Replacing Pearson as chair-
man of the board is ROBERT OBERST,
SPE. Oberst joined the company in 2000
and has held various positions of increas-
ing responsibilities, including vice presi-
dent, senior vice president, and president
in 2013. Oberst holds a BS in geologic en-
gineering from the University of North Da-
Oberst
kota and an MS in petroleum engineering
from the University of Oklahoma. ROY
“LEE” COMER, SPE, replaced Oberst as
president. He was previously senior vice
president. He worked for Amoco and BP
before joining Miller and Lents. Comer
holds a BS in chemical engineering from
Comer the Ohio State University.
GANESH THAKUR, 2012
SPE President, and
KENT THOMAS, SPE,
were elected to the Na-
tional Academy of Engi-
neering. Thakur is presi-
Thakur Thomas dent of Thakur Services.
He was elected for his
leadership in the implementation of integrated reservoir man-
agement techniques. His work is well-recognized in the emer-
gence of reservoir management as an interdisciplinary prac-
tice. He is widely published and has served as ambassador of
technology to national oil companies and government minis-
tries. Before becoming SPE president in 2012, Thakur served as
SPE technical director for the Reservoir Description and Dy-
namics discipline. He has been the chairman of the SPE Reprint
Series Committee, and member of the Forum Series and edito-
JPT • APRIL 2016
rial review committees. He holds a BS in petroleum engineer-
ing from the Indian School of Mines; MS and PhD degrees in
petroleum and natural gas engineering, and an MA degree in
mathematics from Pennsylvania State University; and an MBA
from Houston Baptist University.
Thomas, an independent consultant, was elected for his con-
tributions to the development and application of reservoir sim-
ulators to enhance production from complex reservoirs. He has
authored several papers on this topic. Thomas retired from the
reservoir simulation development branch of the upstream tech-
nology division at ConocoPhillips in 2006. He has served on
more than 40 SPE committees and has been the chair of several
of them. He received the Robert Earll McConnell Award in 2002
from AIME, the ConocoPhillips Technology Innovation Award
in 2007, and the SPE DeGolyer Distinguished Service Medal in
2009. Thomas holds a BS degree from the University of Oklaho-
ma, and MSE and PhD degrees from the University of Michigan,
all in chemical engineering.
Member Deaths
James A. Cox, Spring, Texas, USA
Edward L. Ebbs, The Woodlands, Texas, USA
Wesley W. Eckles Jr., West Fork, Arkansas, USA
Tennyson Jagai, La Romain, Trinidad and Tobago
Angus G. Marshall, Javea, Spain
James Nash, Wichita Falls, Texas, USA
George Allan Warne, Calgary, Alberta, Canada

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 SPE EVENTS
WORKSHOPS
13–14 April ◗ Dubai—SPE Petroleum
Economics: Planning for Profitability
through Oil and Gas Price Cycles
18–19 April ◗ Dubai—SPE Drilling Best
Practices—Delivering More Wells in a
Challenging Environment
18–19 April ◗ Abu Dhabi—SPE Petroleum
Reserves and Resources Estimation
25–26 April ◗ Kuala Lumpur—SPE Sand
Management—Meeting the Industry’s
Immediate and Long-term Needs
28–29 April ◗ Almaty—Revitalisation of
Mature Fields’ Development: Revealing
Hidden Opportunities
2–4 May ◗ Dubai—EAGE/SPE Subsalt
Imaging: Challenges of Subsalt Imaging
and Exploration
9–10 May ◗ Dubai—SPE Formation Damage
Control and Mitigation: Innovation—The
Key to Success
10–12 May ◗ Austin—SPE Tight Oil and
Liquids-Rich Gas: Adapting to Survive in a
New Price Environment
10–12 May ◗ Manama—SPE
Characterisation and Management of
Naturally Fractured Carbonate Reservoirs
23–24 May ◗ Abu Dhabi—SPE Global
Integrated Workshop Series: Managing
Well Integrity in a Low Cost Oil
Environment
25–26 May ◗ Dubai—SPE Coiled Tubing:
Taking the Lead with Coiled Tubing
Technologies in a Challenging Oil Market
9 June ◗ Calgary—SPE Oilsands:
Competitive Strategies for In-Situ Well Pad
Development
19–21 July ◗ Colorado Springs—SPE
Distributed Fiber-Optic Sensing for Wells,
Reservoir, and Facilities Management
CONFERENCES
9–13 April ◗ Tulsa—SPE Improved Oil
Recovery Conference
11–13 April ◗ Stavanger—SPE International
Conference and Exhibition on Health,
Find complete listings of upcoming SPE workshops, conferences, symposiums, and forums at www.spe.org/events.
92
Safety, Security, Environment, and
Social Responsibility: Sustaining
Our Future Through Innovation and
Collaboration
12–13 April ◗ Galveston—SPE/
IADC Managed Pressure Drilling and
Underbalanced Operations Conference
and Exhibition
20 April ◗ Bergen—SPE Bergen One-Day
Seminar
2–5 May ◗ Houston—Offshore Technology
Conference
9–10 May ◗ Aberdeen—SPE Oilfield
Corrosion Conference
11–12 May ◗ Aberdeen—SPE Oilfield Scale
Conference
23–26 May ◗ Anchorage—SPE Western
Regional Meeting
30 May–2 June ◗ Vienna—SPE Europec
Featured at 78th EAGE Conference and
Exhibition
7–8 June ◗ Calgary—SPE Canada Heavy Oil
Technical Conference
13–15 June ◗ Port of Spain—SPE Trinidad
and Tobago Section Energy Resources
Conference
14 June ◗ London—SPE London Annual
Conference: Adapting to a Challenging Oil
Price Environment
1–3 August ◗ San Antonio—SPE/AAPG/
SEG Unconventional Resources Technology
Conference
2–4 August ◗ Lagos—SPE Nigeria Annual
International Conference and Exhibition
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25–28 April ◗ Dhahran—SPE/SAS Annual
Technical Symposium and Exhibition
5–6 May ◗ Denver—SPE Low Permeability
17–18 May ◗ Houston—SPE/IAEE
Hydrocarbon Economics and Evaluation
1–3 June ◗ Buenos Aires—SPE Argentina
Exploration and Production of
Unconventional Resources
29 November–1 December ◗ Banff—SPE
Thermal Well Integrity and Design
FORUMS
22–24 May ◗ Kuala Lumpur—SPE: The Role
of Geomechanics in Conventional and
Unconventional Reservoir Performance
and Management
12–16 June ◗ San Antonio—SPE Processing
Facilities of the Future
12–17 June ◗ San Antonio—SPE Key
Factors for Success in Unconventional
Reservoir Development
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Construction Fluids 2025: Meeting the
Challenges
CALL FOR PAPERS
SPE International Heavy Oil Conference
and Exhibition ◗ Kuwait City
Deadline: 3 May
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Symposium ◗ Banff
Deadline: 18 April
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◗ Montgomery
Deadline: 18 April
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and Exhibition ◗ Manama
Deadline: 21 April
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Exhibition & Conference ◗ Abu Dhabi
Deadline: 21 April
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Environment, and Social Responsibility
Conference and Exhibition ◗ Accra
Deadline: 27 April
SPE Middle East Oil & Gas Show and
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SPE Hydraulic Fracturing Technology
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JPT • APRIL 2016
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