Computer Project

Design

Concepts

What should I learn today?

What is sound computer project design?

What are the sources of expertise on a
project team?
How do we use field data?
Why do we use reservoir models?
What is the role of production operations?
How do we evaluate economics?

Computer project design

A program of evaluation, projecting, and

implementation that begins at discovery
and continues throughout life of field

When does project design apply?

Discovery
Exploration

Delineation
Development

Abandonment
Primary
Production
Tertiary
Production
After SPE 22350 (1992)

Secondary
Production

What is the benefit?

Opportunities for enhancing economic

recovery of hydrocarbons

Current conditions

Accelerations in geophysics, geology,

petrophysics, production, reservoir
engineering
Explosion in computing power:
mainframes, PCs, workstations
Development of integrated life-cycle
database management systems

Computer project design

40
Computer Project Design
30
Dwindling Reserves
20
10

1975

After SPE 22350, 1992

1985

1995

Recovery Efficiency by using Computer Project Design

Computer Project Design

Recovery Efficiency

Primary

Secondary

Reservoir Life
After SPE 22350, 1992

Tertiary

Goal

Use of available resources (human,

technological, financial) to maximize
profits from a reservoir by optimizing
recovery while minimizing capital
investments and operating expenses

Base and computer development cases

Computer case
Rate

Base case
Time

Project Team
Revising project

Evaluating

Monitoring

Goal setting

Projecting

Implementing

Project Multidisciplinary Team?

Land
Legal
Environment
Service

Management
Geology and Geophysics
Reservoir Engineering
Economics

Research and Development

Gas and Chemical Engineering

Drilling Engineering
Design and Construction Engineering

Production and Operation Engineering

After SPE 22350, 1992

Synergetic effect

More effective results from team working

together than from parts working alone
Reservoir engineering = 1 part
Reservoir geology = 1 part
Project Team
> 2 parts

Integration is both horizontal and

vertical

Conventional Organization
Facilities
Production
Engineer

Operations
Manager

Facilities
Engineer

Production
Manager
Reservoir
Engineer
Geologist

Reservoir

Production

Multidisciplinary Team System

Asset Manager

Production
Engineer

Reservoir
Engineer

Geologist

Operations
Manager

Facilities
Engineer

Who makes the decisions?

Team defines goals,
prepares project

Team members
follow project
more willingly
because it is their
project

Production manager
provides feedback

Team modifies,
publishes project

Integration different items

Management
Seismic
Geological
Seismic
Interpretation
Tomography
Geoscientists
Geophysical
Geologic

Data Acquisition
Engineers
Engineering
Geostatistics
Logging/Coring
Land/Legal
Financial
Engineering
Completions and
Facilities
Field
Drilling and
Completions
Geologic
Modeling
Financial
Pressure
Transient
Enhanced
Oil Recovery
Fracturing
Environmental
Reservoir Simulators
Computer
Enhanced Oil Recovery

Computer Software and

Hardware

Data collection
Geological
Seismic
Exploration
Seismologists
Geophysicists
Drillers

Cores
Wireline logs
Fluid properties Well testing
Discovery,
Formation
Development
Evaluation

Well testing,
production &
test data

Geologists
Engineers

Reservoir,
drilling,
production
engineers

Geologists
Petrophysics
Engineers

Production

Data Integration
Rock

Lithology, depositional origin, reservoir rock types

Framework

Structure, continuity, gross thickness trends

Reservoir Quality

Quality profiles, zonation, net thickness trends

Fluid Flow

Pore volume, transmissibility

After SPE 22350 (1992)

Core
analysis
Log analysis
Pressure
production
history match

Integration Acceleration

Computer technology enhances

integration of multidisciplinary skills
Supercomputers add value to 3D seismic
3D seismic, digital logs, core analyses lead
to 3D digital maps

3D maps, other data generate improved

strategies for depletion, development
Integration requires interdisciplinary teams

Computers

Supercomputers make work faster, more

accurate
Networks permit effective communication
and coordination among several offices
Workstations linked by networks

allow iterative (not batch) data access and

use engineering and geoscience's software
interactively

Production
problems
Casing Leak
Corrosive Water Sand
Mechanical Devices
Packer Failure

Cement Failure
Extraneous Water Production

Production Profile

Injection Profile

Assisted Recovery
Natural Encroachment

Thief Zone

Water coning Gas

Oil
Water

Perforations
Plugged
Too Few
Too Shallow
Placed Out of Zone

1. Supercomputers make work faster, more accurate

2. Networks permit effective communication and
coordination among several offices
3. Workstations linked by networks allow iterative data
access and use engineering and geoscience's software
interactively

Economical model
PAYOUT
Profit
Index

Set
economic
objective

Collect data

Formulate
scenario

Make economic
analysis
Make risk
analysis

Choose optimal
operation

Productions
Investments
Operating
Expenses
Oil/Gas Prices

Project economics
Rate of return
Abandonment

0
Cumulative
Net Present Value

Payout time
Time