“supposing is good, but finding out is better.”pages.geo.wvu.edu/~tcarr/petroleum/lecture...
TRANSCRIPT
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Tim Carr - West Virginia University
“Supposing is good, but finding out is better.”
Mark Twain
“Annual income twenty pounds, annual expenditures nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought six, result misery.”
Mr. Micawber in David Copperfield
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Common Standards for Reserves & Resources Consistency, Transparency & Reliability Financial Stakeholders Regulatory Stakeholders Reporting Entities
Petroleum Resource Management System (PRMS) Developed by SPE, SPEE, WPC, AAPG Used by the US Securities and Exchange Commission
(SEC) Reserves, Contingent Resources, Prospective
Resources P10, P50, P90
Volumetrics Deterministic Determination Probabilistic Determination 2
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Exploration Strategy
1. Global Basin Analysis
2. Develop Play Concepts
3. Define Exploration
Play Areas
4. Evaluate Prospects
5. Identify Drillable
Prospects
6. Drill Exploration
Wells
Complete Basin Studies
Acquire New Exploration Licenses
Compile Full Lead &
Prospect Inventory
Drillable
Prospects/
Well proposals
Drill
Exploration
Wells
= New Reserves 3
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Rose, 2001 4
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Rose, 2001 5
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Project Success Project Potential Reality Check (10-90 Rules) Average Success Rate for Wells Drilled in Area
(History) Average Size (net pay, recovery per foot, areal
extent) Price Forecasts Costs (e.g., Drilling, Facilities, Seismic, Land) Production Rates
If you depart from past history, you better have good justification e.g., Better Technology, Lower Costs, Smarter
Show a Range of Possibilities 6
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Rose, 2001 7
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8 PRMS, 2011
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9 PRMS, 2011
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Proven
Probable or Possible ?
Probable or Possible ?
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11 PRMS, 2011
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Reservoir Rock Porosity & Permeability to Contain Extractable
Hydrocarbons
Contains Hydrocarbons
Controls Lithology
Maturity – Type of Hydrocarbon
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Volume of Reservoir Thickness of Reservoir Rock (h) & Areal Extent (A)
Porosity (𝝫)
Hydrocarbon Saturation (1-Sw)
𝑉ℎ = 𝐴ℎ𝝫 (1-Sw)
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Unit Equivalent in foot-units
SI Equivalent
1 Acre 43,560 ft2 4047 m2
1 barrel (bbl) 5.6154 ft3 159 liters
1 acre foot (oil) 1 acre foot (gas)
7758 bbls 43,560 ft3
1,233,522 liters (1,058 metric tons) 123.5 m3
𝑂𝑂𝐼𝑃 = 7758 𝐴ℎ𝝫 (1-Sw) bbl.
𝑂𝐺𝐼𝑃 = 43,560 𝐴ℎ𝝫 (1-Sw) ft3
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Net Pay (Net Sand): Thickness of permeable (clean), hydrocarbon-containing reservoir rock (h)
Gross Pay (Gross Sand): Thickness of reservoir irrespective if it is permeable (clean) or if it is hydrocarbon bearing,
Net to Gross Ratio: Measure of Reservoir Quality
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Reservoir Higher Temperatures and Pressures
Corrected for Compressibility of Oil and Gas Reservoir to Surface Conditions
Stock Tank (STOOIP & STOGIP)
Formation Volume Factors (FVF) Bo: Ratio of mass of oil in reservoir vs. surface
Bg: Ratio of volume of gas in reservoir vs. surface
𝑆𝑇𝑂𝑂𝐼𝑃 = (7758 𝐴ℎ𝝫 (1-Sw))/Bo bbl.
𝑆𝑇𝑂𝐺𝐼𝑃 = (43,560 𝐴ℎ𝝫 (1-Sw))/Bg ft3
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Area of Reservoir, A 2000 acres
Net Thickness, h 150 feet
Porosity, 𝝫 15%
Water Saturation, Sw 30%
Oil Formation vol. factor 1.4 RB/STB
𝑆𝑇𝑂𝑂𝐼𝑃 = (7758 𝐴ℎ𝝫 (1-Sw))/Bo bbl.
= (7758 ∗ 2000 ∗ 150 ∗ 0.15 ∗ (1-0.3))/1.4 bbl. = 174,555,000 = 174.6 mmbbl.
Why is Bo > 1?? 244.4 mmbbl without Bo 17
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Area of Reservoir, A 2000 acres
Net Thickness, h 150 feet
Porosity, 𝝫 15%
Water Saturation, Sw 30%
Oil Formation vol. factor 0.0035 RCF/STCF 𝑆𝑇𝑂𝐺𝐼𝑃 = (43,560 𝐴ℎ𝝫 (1-Sw))/Bg ft
3
= (43,560 ∗ 2000 ∗ 150 ∗ 0.15 ∗ (1-0.3))/0.0035 ft3 = 392,040,000,000 = 392.04 billion ft3 (Bcf)
Why is Bg << 1?? 1.372 Bcf without Bg 18
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Bo – Oil (Dead) 1.0 to 1.1 Bo – Gassy (Moderate) ~1.2 (Very) ~1.4 Boi = 1.05 + (GOR/100 * 0.05)
GOR: Gas Oil Ratio (cf/bbl)
Bg – Normal Pressure (Hydrostatic =0.433 psi/ft) Usually <10-3 for reservoirs > 1,000 psi Bg = 36.9/Depth ft. VERY GROSS ESTIMATE
Ex: At 5,000 ft. Bg = 36.9/5,000 ft = 0.00738
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Resources (In-Place)
Reserves (Economically Producible) OOIP*RF or OGIP*RF
Recovery Factor (RF) Reservoir Quality
Homogenous Fluid Movement (Larger Pore Throats)
Depth, Pressure, Temperature Fluid Properties Drive Mechanism Reservoir Management
Estimated Ultimate Recovery (EUR)
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Oil Poor Reservoir (Low Porosity-Permeability <10% Dual Porosity (Low Matrix to Fracture) ~20% Good Porosity-Permeability ~30% Excellent Reservoir (Good Water Support) ~40-50% Ideal (Reservoir Quality, Management) ~60-80%
Gas Shale Gas, Coalbed Methane ~10% Good Quality ~70% Excellent (Depletion & Management) ~90%
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Calculate Total Adsorbed Gas (not a function of porosity)
G = 1359.7 A h ρc Gc h = Thickness, feet G = Gas-in-Place, scf A = Reservoir Area, acres ρc = Average In-Situ Shale Density, g/cm3 GC = Average In-Situ Gas Content, scf/ton
Determine the free (conventional) gas Calculate the porosity responsible for holding
the conventional gas Sum Free and Conventional Gas
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23 PRMS, 2011
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24 PRMS, 2011
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25 PRMS, 2011
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Seismic Amplitude Monte Carlo Modeling
PRMS, 2011
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Near Offset Far Offset
PRMS, 2011
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Time 1
PRMS, 2011
Time 2
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29 PRMS, 2011
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30 PRMS, 2011
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31 PRMS, 2011
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Resources versus Reserves Uncertainty
Commerciality
Maturity
Volumetric Estimates Original Hydrocarbons in Place (OOIP, OGIP)
Reservoir Volumes vs. Surface Volumes
Recovery Factors
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“Professor may I be excused. My brain is full.”
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Assignments Reading for this week
Take a look at PRMS
http://geodc.aapg.org/PRMS_Guidelines_Nov2011.pdf or
http://www.spe.org (Need membership – Free as student)
Exercise – Picking Faults with 3D Seismic Due on Friday 4/17 (Get it In ASAP – Today_
Discuss Current Energy Events Read Today in Energy for Friday (4/21) at
http://www.eia.gov/
Be Prepared to Discuss in Class – Monday (4/20)
Discussion Leader – Jared Bailey
Last Quiz Wednesday 4/29 Open at 1:00pm – Close at 11:00 on 5/1