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Society of Petroleum Engineers Distinguished Lecturer 2007-08 Lecture Season

A Hybrid Flow Unit Approach to Improved Reservoir Description & Production

Enhancement: A Case Study

Dr. Jude O. Amaefule COO Emerald Energy Resources Limited, Nigeria

Abstract: A case study is presented in which a Hybrid Flow Unit-Approach (deterministic, probabilistic and geostatistical) was employed to build a 3-D geocellular model of the reservoirs within the Chihuido De La Sierra Negra (CHSN) Field, Neuquen Province, Argentina. Reservoirs (Tr, Ag and Av) within the CHSN field were deposited in an Aeolian dune environment. This complex depositional environment has inherent microscopic heterogeneities that present significant challenges during field development and also during improved oil recovery by water flooding. An integrated field study was therefore initiated with the objective of producing a more detailed and representative model of the internal microscopic reservoir architecture including the pore throat size distribution. This paper describes the approach taken by a multidisciplinary team of engineers and geoscientists to develop a detailed 3D geologic Model populated with petrophysical attributes. Improvements in reservoir description have unraveled significant behind pipe potential, and improved reserves, within the CHSN Field. In addition, the Hybrid 3-D model has provided the opportunity for optimizing well placement, particularly during horizontal drilling, and for improved reservoir management of the water flood projects. The systematic multi-step Hybrid methodology has been used successfully in many clastic and carbonate environments to improve reserves and enhance field productivity. Biography: Dr. Jude Amaefule is Vice Chairman/Chief Operating Officer and Co-Founder of Emerald Energy Resources Limited, a Nigerian E&P company. He holds a BSc, MSc, and PhD degrees in Petroleum Engineering from the University of Southern California, Los Angeles. He has over 25 years of upstream oil industry experience in management, technology development and reservoir management. Prior to start-up of Emerald, Dr Amaefule was the President/CEO of VRMT International Inc., a leading-edge, technology-based, Petroleum Engineering Consultancy Company, that specializes in optimizing Oil and Gas Reservoir Management. He consulted globally for majors on formation damage control strategies, petrophysics, reserves audit, productivity enhancement and optimization of field development and reservoir management. As senior Vice President, R&D and Instruments Divisions of Core Laboratories, Division of Western Atlas International in Houston, Texas, Dr Amaefule managed the development of commercially profitable Core and Fluid Analysis technologies in Reservoir Description and Production optimization. Earlier in his career, Dr. Amaefule worked for Occidental Petroleum and British Petroleum (BP) as senior Petroleum Engineer responsible for field-wide well productivity improvement in California and Prudhoe Bay fields, Alaska, North Sea and Peru. He has authored and co-authored over 35 technical papers. A pioneer of Flow Unit-based 3D Petrophysics. Dr Amaefule has received several industry awards from many SPE sections in Nigeria, Argentina, Venezuela, Australia, Abu Dhabi, Malaysia, Canada and USA for contributions to Technology.


Implementing a Well Integrity Management System

Joe Anders BP Exploration (Alaska) Inc.

Abstract: Well integrity has received increasing attention from all aspects of the petroleum industry, from well design and construction to operations, maintenance and well abandonment. Several factors are driving this attention, including a desire to ensure wells remain viable in fields with long lives and the potential for litigation and personal civil and criminal liability. There is confusion regarding the definition of well integrity, making it difficult to create a holistic approach to implementing a management system. There is a general lack of industry standards, but several are under development regarding sustained casing pressure and barrier system requirements. This discussion presents the framework used by BP to develop well integrity programs. It reviews lessons learned from an implementation in Alaska. Included is a discussion of data management systems necessary to adequately monitor compliance with well integrity standards. Several case histories are discussed, including the Alaska A-22 surface casing failure and the Algeria BerKaoui cave creation, called by some to be the “Environmental disaster of the century”. Biography Joe Anders is a senior Well Integrity Coordinator for BP in Alaska. He holds a BSc (High Honors) in Geological Engineering and an MSc in Petroleum Engineering. Joe has 24 years of operational oilfield experience. Assignments include Operations Supervisor and Safety Engineer, onshore and offshore Gulf of Mexico, Offshore Operations Engineer and Production Engineer in Alaska. For the past 8 years, he has worked well integrity issues in Alaska and was a primary architect of Alaska’s well integrity management system. Joe holds a patent for an EOR process, has published several SPE papers and numerous articles on well integrity in BP's internal publishing system. He is an Alaska SPE Engineer of the Year and is a registered professional engineer. Revised: 9 Feb 2006


New Trends and Challenges on Fluid Design for Well Construction

Optimization in Ultra-Deep Waters

Átila F. L. Aragão PETROBRAS

Abstract: Drilling in ever greater water depths has resulted in new challenges for all the engineering disciplines involved. Innovative solutions have been required when conventional methods have fallen short of providing practical answers. Drilling build up and horizontal sections in a single step is an attractive design approach aimed at cost reduction and increased performance efficiency in offshore field development, including the reentry of old wells in mature fields – infill drilling. Most of the Petrobras high productivity wells in sandstone reservoir require sand control due to the poorly consolidated formations. Open hole gravel pack (OHGP) is still the most popular solution for sand control in offshore deepwater reservoirs. In spite of the industry’s effort to develop high performance water-based fluids, the use of synthetic fluids guarantees superior wellbore stability, lubricity, inhibition and drilling performance. Another challenge is to provide a reliable sand control technique in the horizontal section with operational safety and minimum formation damage. This presentation shows a new approach where a synthetic fluid is used for all steps of the well construction and completion. A discussion concerning the several aspects related to fluids design for this new approach is presented. The following key points are discussed: recent developments for drilling, completion and gravel carrier fluids with special focus in the use of non-aqueous fluid as the carrier medium to pack the gravel in a conventional alpha-beta wave deposition technique; gravel carrier fluid design optimization considering its rheological behavior; evaluation of alpha wave deposition heights and packing quality of different propants; minimum viscosity for a given density; fluid compatibility; formation damage; stability and gravel wettability.

Based on the new technologies available, improvements on the well design can be achieved in order to obtain substantial reduction on the well construction cost. Biography: Átila Fernando Lima Aragão is a Senior Advisor in Drilling, Completion and Stimulation Fluids for Petrobras and works for the Well Engineering Team at the Exploration and Production Services Unit, in Brazil. He has previously worked as a Professor at Petrobras University for 15 years. He holds a B.Sc degree in Chemical Engineering from the Federal University of Bahia and B.Sc degree in Mathematics Sciences from the Catholic University of Salvador. He has been involved in projects on advanced drilling and completion techniques and well design for offshore deep-water wells. He is a Drilling Fluid specialist with 25 years of professional experience, holding one patent in this area. He has authored or co-authored 23 technical papers, including 7 SPE papers.


Application of Low Viscosity Fluids To Hydraulic Fracturing

Larry K. Britt NSI Technologies, Inc.

Abstract: The use of low viscosity fluids for hydraulic fracturing has a history as long as hydraulic fracturing itself. In the last fifty years, as more viscous fluids gained in popularity the application of low viscosity fracturing fluids declined. Today, however, the application of low viscosity fracturing fluids, such as, treated water in hydraulic fracturing is seeing resurgence in the industry. This presentation will focus on Why this resurgence is occurring? Why use water as a fracturing fluid and why now? In addition to answering these questions, the presentation will address the inherent risks of low viscosity fracturing fluids and identify guidelines for their successful application by outlining risk mitigating tests and treatment designs. These guidelines were developed through extensive theoretical and numerical research and tested via numerous field applications throughout the world.

Finally, this presentation will site additional uses and benefits of thin fluids for both completion and reservoir engineering purposes. Such additional uses can play a significant role in the optimization, design, and field execution of a fracturing treatment to ensure maximum productivity and that the economic value of the resource is being maximized. Biography: Larry K. Britt, NSI Technologies, Inc., Tulsa, OK. Since joining NSI in early 1999, Larry has specialized in the development and application of solutions to hydraulic fracturing problems throughout the world and manages NSI’s Rock Mechanics Laboratory at Tulsa University. Britt’s experience includes the optimization, design, and execution of fracture stimulations and integrated field studies in the US, Canada, Mexico, Australia, Norway, Argentina, Trinidad, and the North Sea. Prior to joining NSI he worked for Amoco Production Company for nearly twenty years. During the last seven years with Amoco, he was fracturing team leader at Amoco’s Technology Center in Tulsa, Oklahoma, where he was charged with managing the development and application of fracturing technology for Amoco’s worldwide operations. Larry has served as an SPE Distinguished Lecturer, as a JPT editor, and on numerous SPE Forum Committees on Gas Reservoir Engineering and Hydraulic Fracturing. In addition, Larry has authored over twenty-five technical papers for the SPE on reservoir management, pressure transient analysis, and hydraulic fracturing. He is a graduate of the University of Missouri-Rolla.


Low-Cost, Non-Invasive, Remote Pipeline and Well Inspection Techniques

Alberto Di Lullo

EnTecnologie Abstract: The prevention and remediation of many Flow Assurance problems require timely knowledge about the internal deposition conditions of pipelines, sealines and tubings. This information plays an important role in the decision process for repair operations and in the optimization and monitoring of prevention technologies. Most inspection methods either imply the insertion in the pipe of special devices, with a significant intrinsic risk, or require moving along the inspected pipe, which may be difficult, expensive or time-consuming. Eni has developed and extensively applied a non-invasive technology for the inspection of pipes (wells and pipelines/sealines) which require access to only one end of the pipe and the ability to generate small flow rate transients, thus resulting in straightforward applicability and very low cost for most operational settings. The use of flow rate transients, though long known in principle, has been exploited only infrequently by the petroleum industry. Such techniques, carried out by measuring and analyzing pressure signals induced by fast flow rate changes, constitute an extremely flexible, sensitive and easily applied methodology. Examples of the applications include: rapid and effective localization of complete and partial obstructions in wells and pipelines, quantification of the profile distribution of deposits in oil wells, inspection of gas wells and pipelines to determine the presence and distribution of fluids, monitoring of the movement of pigs in sealines and the investigation of other characteristics of both pipes and the fluids transported. The basic principles of the method will be illustrated, together with case histories of onshore and offshore applications. Biography: Alberto Di Lullo leads several R&D Flow Assurance projects in EniTecnologie, the corporate R&D company of Eni, where he is currently responsible for the Physical-Chemical Laboratories Applied to Exploration, Drilling and Production of Hydrocarbons. He acquired laboratory and field experience in various upstream technologies such as: well production optimization; asphaltene, wax and emulsion issues; well and pipeline monitoring; deposits and obstructions localization techniques, water shut-off and knowledge management in production chemistry. He is co-author of several patents and publications. As a SPE member, he serves as the Membership Chairman of the Italian Section.


Wellbore Stability-Essentials in Well Planning and Well Optimization

Dr. Adewale Dosunmu UNIVERSITY OF PORT HARCOURT

Abstract: Well bore instability at different times in the life a well represents a major source of lost time and economic loss to the oil industry. Statistics show that over one billion dollars is lost annually due to well bore instability related incidences. With the increasing growth in operations in frontier areas such as the deep offshore and more complex well trajectories in well design the need for optimal well bore stability analysis as an integral part of well planning and well optimization One of the key parameters that can be used to maintain a stable well bore is the mud weight. However, the conventional use of mud weights that lie between the pore and fracture gradients have not been adequate in reducing well bore instability incidences. The current practice has been the use of failure criteria that consider rock geotechnical properties in determining safe mud weights. A holistic approach to well bore stability considering both the mechanical and chemical effects along with probabilistic methods as veritable tools for Quantitative risk analysis of instability management and prediction are presented in this study. It is hoped that better understanding of the subsurface environment in terms of the geomechanical and hydraulic interplay will reduce lost time and improve the economics of well delivery. Biography: Wale Dosunmu is a lecturer in the department of Petroleum and Gas Engineering at the University of Port Harcourt and also serves as a Petroleum Engineering Consultant to several E&P companies. He holds BSc(Hons ),MEng and PhD degrees in Petroleum Engineering. Dr Dosunmu is an author of 3 books, 8 monographs and several papers that have been published in International journals. He has also presented papers at several conferences seminars and workshops. He is a recipient of several service awards by the SPE Nigeria Council and SPE International. Dr Dosunmu has research interest in Drilling and Well Engineering, Petroleum Economics, Natural Gas Engineering as well as Environmental issues in Oil and Gas exploration and production. He is also a past program Chairman and Chairman of SPE Section 103, Port Harcourt, Faculty Sponsor, University of Port Harcourt Student Chapter of SPE, Member of Nigerian Society of Engineers and a registered professional Petroleum Engineer in Nigeria. `


Predicting Field Performance - Thriving with Uncertainty

Neil Dunlop Energy Scitech Ltd

Abstract: Making predictions was always part of the art of reservoir planning and management. Because a specific plan or investment in physical plant must be decided upon, the ability to make multiple predictions might seem to be a hindrance. In fact, we can make good use of an understanding of the range of possible future behavior during the planning process. Widespread access to detailed physical models and low cost high speed computing makes it possible to harness measures of uncertainty to the task of improving field development decisions of all types. Divestment or acquisition decisions are strongly affected, well location decisions can be improved and plant modifications or well workovers better chosen in scope and timing. As oil and gas resources are increasingly recovered from reservoirs whose characteristics and future behavior have considerable uncertainty, the need to measure that uncertainty and educate ourselves in ways to make use of the measurements is increasing. It is now possible to combine new approaches to history matching and multiple predictions into measures of uncertainty for less than the cost of obtaining a simple single history match five years ago. When uncertainty is quantified, both understanding and economic outcomes can be improved, eventually making more hydrocarbons accessible by lowering overall cost. The talk will illustrate the difficulties and pitfalls that can arise when history matching and prediction are performed deterministically using practical examples. An approach that avoids some of the major difficulties of current history matching practise will be discussed and illustrated, showing how it integrates into the process of corporate decision making under uncertainty. Biography: Neil Dunlop has over 32 years diverse experience in the international upstream oil & gas industry in consulting and the implementation of high technology. He is a board Director at Energy Scitech and a consultant conducting reservoir studies. Currently he works with clients worldwide, extending their use of simulation through the application of statistical techniques for history matching fields and predicting performance under uncertainty. Previously, he was for many years with SSI, conducting, delivering and managing multi-disciplinary studies of major oil and gas fields from reservoir characterization through to economic planning and 4D surveillance. Neil has an MSc in Petroleum Engineering from Imperial College and MA in Chemical Engineering from Cambridge University. He is a member of SPE, EI, PESGB and EAGE.


Wellbore Stability Issues in Shales or Hydrate Bearing Sediments

Reem Freij-Ayoub, Ph.D. CSIRO Petroleum

Abstract: Wellbore instability can be an immediate result of stress redistribution following the removal of the rock mass. Due to the fine-grained nature, low permeability and saturation with pore fluid, shales are susceptible to time-dependent wellbore instability. Processes related to transport of fluid, solutes and heat between the drilling fluid and the formation fluid can increase the formation pore pressure rendering the wellbore unstable. The proper design of the drilling fluid can counteract wellbore instability. Lower and upper bounds on mud weight are determined from mechanical stability criteria. Once the drilling fluid type and weight is decided, the pore pressure increase due to mud pressure penetration mechanism can be calculated. Manipulation of the chemical potential mechanism by knowing the membrane efficiency of the shale-mud system and utilizing the right salt concentration in the drilling fluid can suppress the pore pressure increase and stabilize the wellbore. Drilling in gas hydrate bearing sediments (HBS) presents an unquantified hazard to the safe and cost effective drilling in deep water particularly as the number of oil and gas fields being developed in deepwater and onshore arctic environments is increasing. Coupled numerical modeling supported by experimental data conducted on HBS can be used to assess the stability of a wellbore drilled in such sediments and to investigate the integrity of the casing due to circulating hot fluids. The presentation draws on the application of numerical modelling, laboratory rock testing and knowledge of the processes critical to shales and hydrate bearing sediments to provide predictive tools to the stability of wellbores drilled in these challenging formations. The presentation then touches on the application of geomechanical modeling and testing to the problem of sand production prediction, an area of major concern to the oil industry.

Biography: Dr. Freij-Ayoub is interested in wellbore stability in challenging formations like shales and hydrate bearing sediments. She is a Civil Engineer with MSC and a PhD in Geomechanics and Rock Mechanics from The University of Western Australia (1997). She joined CSIRO firstly to develop reactive transport models then pursued her interests in problems in Petroleum Geomechanics. Her multidisciplinary background, allowed her an in-depth knowledge of the physical processes that control time-dependent stability of wells drilled in shales where she was awarded the divisional innovation award for her achievements. Dr Freij-Ayoub is organizing a special issue of the International Journal of Engineering and Science about the oil and gas industry in Australia. She organized and chaired a session in wellbore stability in WCCMVI in China 2004.


New and Emerging Water and Gas Shut-off Techniques in Vertical and Horizontal Open-holes:

Challenges and Opportunities

Naz H. Gazi Halliburton Energy Services

Abstract: Unwanted water and gas production in producing wells negatively impacts the productive life of the wells and the reservoir itself. As more and more reservoirs are maturing, the urgency to develop methods to control unwanted fluid production, and thus to improve the recovery efficiency of the wells and the reservoirs is imperative. Many negative effects that occur during production such as high WOR and GOR, scaling, and skin damage can be pro-actively prevented during drilling by using new and emerging Conformance While Drilling (CWD) technology and thus can facilitate to shut off future water and gas influx. This presentation will focus on the new and emerging solutions to the challenging conformance problems using processes, chemical systems, techniques, tools, and real time predictive methods and software to derive successful water and gas shut-off solutions for both vertical and horizontal wells. Water shut-off problems and solutions for more challenging open-hole horizontal completions using the emerging chemical and swell packer systems and placement techniques based on the reservoir understanding of the problems will be discussed. Critical factors for developing a successful conformance solution and a water management strategy will be identified. Real life field case histories in deriving successful conformance solutions will be presented. Biography: Naz Gazi is the Sr. Technical Advisor for Halliburton. He has been working in the oil industry for over 31 years including last 26 years with Halliburton. He also worked for several operating companies and taught at the University of Oklahoma and Tinker US Air Force Base. Naz holds MS degree in Petroleum Engineering and MBA from University of Oklahoma. He authored and co-authored over 30 papers and served in many SPE committees. He was the Key Note Speaker on Water Handling for the December 2004 SPE Oil Field Chemistry ATW Meeting in Bahrain. He regularly gives presentations and seminars to different SPE chapters, oil and gas organizations and universities world wide on various topics including water shut-off, well testing and reservoir management, stimulation, production enhancement and optimization.


“Petroleum Reserves Estimates – Where we Have Been, Where we Are and Where we Appear to be Headed.”

Ronald Harrell

Ryder Scott Company

Abstract: Global events from Baghdad to Beijing and from The Hague to Houston over the recent past have ignited worldwide interest on oil and gas reserves. This renewed, expanded attention has clearly illustrated that the term “reserves” is widely misunderstood and abused – sometimes by individuals and/or organizations that should know better. This presentation clarifies what the term “oil and gas reserves” means in several contexts. Various parties and stakeholders – for example regulators, financiers and producers – have differing needs for reserves information. However, whatever the need, all reserves estimates must be based on a sound understanding of the prevailing definitions and adequate high-quality data. Trained, ethical and independent reserves evaluators must interpret and present these estimates. The term “independent” should apply to internal reserves staff as well as third-party reserves evaluators. The presentation will also direct attention toward an analysis of the impact of the US “Sarbanes-Oxley Act of 2002” on reserves estimation, verification and reporting as well as the impact of similar legislation in Canada and the U.K. The presentation will describe actions taken by several unidentified producers to ensure quality, integrity and transparency in their reserves estimating and reporting process.

Biography: Ron Harrell is chairman at Ryder Scott Company LP, which he joined in 1968. Mr. Harrell has managed reservoir engineering and geological studies worldwide, including property evaluations for acquisitions and divestitures, financing, and reservoir management. He graduated magna cum laude with a BS degree in petroleum engineering from Louisiana Tech University. At various national and international annual conferences, Mr. Harrell has delivered presentations on oil and gas appraisals, reserves definitions and classifications and differences in reserves estimates. He has led the way in exploring emerging issues on reserve reporting requirements with the U.S. Securities and Exchange Commission. Mr. Harrell is the past chairman of the Society of Petroleum Engineers Oil and Gas Reserves Committee. He chaired the four Society of Petroleum Evaluation Engineers forums that addressed SEC interpretive positions on petroleum reserves definitions. Mr. Harrell is a member of SPE, SPEE, API Houston Chapter and TIPRO as well as a registered professional engineer in Louisiana, Mississippi and Texas.

Society of Petroleum Engineers

Distinguished Lecturer 2007-08 Lecture Season

Pre-frac Reservoir Characterization from Perforation Inflow Diagnostic (PID) Testing.

“Measure Twice – Frac Once”

R.V. Hawkes BJ Services Company Canada

Abstract: In an effort to enhance the deliverability potential of a tight gas well, operators sometimes over look the “missing link” between stimulation design and the well’s post-frac production response. A review of the concept of the deliverability behavior for tight gas wells reveals the relationship between “flush” production and “stabilized” production. That is to say, the completion affects flush production where as the reservoir controls stabilized production. All of which affects the overall production behaviour. A successful stimulation treatment should be defined as one that maximizes production predicted by the design process. Hence, fracture stimulation design requires the knowledge of critical reservoir parameters that have the largest impact on the production performance obtained from any stimulation treatment. The most critical of these parameters are reservoir pressure, formation flow capacity (kh) and wellbore skin. Too often, it is not always clear with disappointing post-frac production if the poor results are of a poor reservoir or a poor completion. This presentation demonstrates that a properly designed and conducted closed chamber perforation inflow diagnostic (PID) test is a cost effective, safe and environmentally friendly method of obtaining critical pre-frac reservoir parameters. Biography: Robert. Hawkes is Team Leader of Reservoir Services for BJ Services Company Canada in Calgary Alberta. He began his career in with Esso Resources in their Calgary testing department. Since that time, he went on to establish himself as a specialist in well test analysis with Fekete Associates Inc. Robert is well published in both SPE and CIM and is a recognized expert in the field of pressure transient analysis, reservoir characterization and short-term pre-frac transient analysis. Robert graduated from the Southern Alberta Institute of Technology in 1979 with a diploma in Petroleum Engineering.


Integrated Reservoir Modeling – Challenges and Solutions

Dr. Mohan Kelkar Univerfsity of Tulsa

Abstract: Integrated reservoir modeling involves integration of geological, geophysical and engineering data to develop a comprehensive reservoir description. An appropriate application of the process involves several challenges. These include: scale and resolution of various data sources, quality and information content of information, qualitative observations and solutions of inverse models. The presentation will discuss various methods of overcoming these challenges. Through series of case studies, a work flow process will be discussed which will allow the development of multiple, history matched, reservoir descriptions which can quantify uncertainties in future performance. The proposed work flow is practical; at the same time, will overcome the drawbacks of conventional approaches. Biography: Dr. Mohan Kelkar is Williams Endowed Professor and Chairman of Petroleum Engineering Department at the University of Tulsa. His primary research interest is in reservoir characterization and integrated reservoir modeling. He has worked with various oil companies and government agencies in developing practical solutions to integration problems. As a consultant, he is also involved in many reservoir studies which involve integration of various sources of data. He is the author of a best-seller “Applied Geostatistics for Reservoir Characterization,” published by SPE. In addition, he has published numerous papers in various SPE publications.


Crude Oil Emulsions: Everything You Wanted to Know But Were Afraid to Ask

Sunil Kokal Saudi Aramco

Abstract: Formation of emulsions during oil production is a costly problem, both in terms of production losses and chemical costs. In these days of high oil prices and pressure to reduce production costs, there is an economic necessity to control, optimize or eliminate the problem by maximizing oil-water separation. This presentation provides a summary of why emulsions form during oil production, the types of emulsions encountered, what stabilizes them, and up-to-date methods for reducing emulsion related problems. It will address the questions: Do emulsions form in the reservoir? Can emulsions be responsible for productivity losses in oil wells? How do we appraise, and improve, the performance of gas-oil-water separation facilities? Reservoir, production and operation engineering aspects of oilfield emulsions that impact field performance will be covered. How to optimize chemical (demulsifier) usage will be discussed with examples of several field case studies. Biography: Sunil Kokal is a PVT/Reservoir Fluid Property Consultant at the R&D Center, Saudi Aramco, Dhahran, Saudi Arabia. He is an expert in the areas of hydrocarbon phase behavior, crude oil emulsions, and asphaltenes. He holds a BS degree from the Indian Institute of Technology (New Delhi) and a PhD degree from the University of Calgary (Canada), both in Chemical Engineering. He has written over 70 technical papers and has authored the chapters on Crude Oil Emulsions and Reservoir Fluid Sampling for the new revised edition of the SPE Petroleum Engineers Handbook (due out in 2006). He is a registered professional engineer in Alberta, Canada and is a member of the Society of Petroleum Engineers. He has served on many SPE committees, both at the local and international levels, and is currently a Technical Editor for the SPE Reservoir Evaluation and Engineering. He is also the Specialty Coordinator for the Facilities Design and Operation sub-committee of the 2006 SPE ATCE. E-mail address: [email protected].


Maximizing Oil Recovery Efficiency and Sequestration of CO2 with “Next Generation” CO2-EOR

Vello A. Kuuskraa Advanced Resources International

Abstract: Injection of CO2 into depleted and near-depleted oil reservoirs offers the potential for two mutually beneficial results - - increasing oil recovery while sequestering industrial emissions of carbon dioxide (CO2). This presentation examines how alternative technology designs and operating strategies may enable industry to significantly improve CO2-EOR oil recovery efficiencies from the traditional 8% to 12% of original oil in-place (OOIP) to potentially over 20% OOIP, while also significantly increasing the sequestration of CO2. The presentation draws on laboratory work, reservoir simulation and in depth assessments of significant CO2-EOR field tests that show promise for high oil recovery. The insights gained from these sources are combined to show how injecting larger volumes of CO2, integrating horizontal wells with close vertical well spacing, rigorously managing the CO2-EOR operation, and controlling the conformance of the CO2 flood could lead to increased oil recovery efficiencies from CO2-EOR. The presentation then examines how the sequestration of CO2 could be optimized both during and after completion of the oil recovery phase in mature oil reservoirs. Biography: Mr. Vello A. Kuuskraa, President of Advanced Resources International is a recognized industry expert on CO2 enhanced oil and gas recovery technologies and the adaptation of these technologies for cost-effective sequestration of CO2. He was the 1986/87 SPE Distinguished Lecturer on Enhanced Oil Recovery, serves as the Chairman of the Advisory Committee for the joint industry-government partnership called the Carbon Capture Project, and is the author of the recent series of “Basin Studies” that provide updated assessments of CO2-EOR performance and potential in U.S. oil basins. He holds a M.B.A., from the Wharton Graduate School of the University of Pennsylvania, and a B.S., in Applied Mathematics/ Economics from North Carolina State University. He is a recipient of the Ellis Island Medal of Honor that recognizes contributions made by individuals from America’s diverse cultural ancestry.


Assessment of Forecast Uncertainty in Mature Reservoirs

Jorge L. Landa Chevron

Abstract: Modern and efficient reservoir management is imperative, given the ever-increasing demand for oil. Making the right decision on reservoir development utilizing all available data in a timely manner is the key to successful operation. For mature reservoirs, this requires high-quality uncertainty assessment of long-term performance forecast estimations. The most difficult component of the total uncertainty in forecast is the one that stems from the implicit uncertainty in the geological and reservoir simulation model. In fact, regardless the amount of reservoir data that we collect, there is no way to define the reservoir model uniquely. This reality suggests that we use an integrated probabilistic framework and incorporate production data into the reservoir model to reduce the associated uncertainty in reservoir characterization and performance forecasting. The technical challenge is in obtaining probabilistic description of the reservoir models. For mature reservoirs, this implies finding not one, but a large number of reservoir models that are consistent not only with the geological data but also with the production data. Applying smart sampling techniques combined with Monte Carlo simulation within a probabilistic framework, and utilizing available high-performance computing resources, it is feasible to find multiple solutions to the history matching problem. These solutions, in turn, can be used to estimate uncertainty for making management decision in a realistic time frame. This presentation will demonstrate the practical approach to solve this critical problem using field examples. Biography: Jorge Landa is a senior advisor in reservoir engineering with Chevron Energy Technology Co. in San Ramon, CA. His work experince before joining Chevron includes 15 years with Halliburton. He holds MS and PhD degrees in Petroleum Engineering from Stanford U. and a Mechanical Engineering degree from Universidad de Buenos Aires. He has written 14 papers in the areas of history matching, uncertainty assesment, well testing and data integretation in reservoir characterization


Bridging over Uncertainty: Past Performance into Forecasting

Dr. Sameh Macary IPR Group of Companies

Abstract: Engineers tend to be more deterministic. With the ever growing challenges of decision making and risk assessment associated with huge investments, the “need” to realize many (or even all) objectives of the business endeavor becomes crucial. Expecting probable outcomes of a future process yet to leave them comfortable in using just determinism. However, scientific/technical education drives us to spend more time and money to get closer to “The Answer”. This leads naturally to deterministic conservative estimates, possibly false precision and frequent surprises. This presentation aims to design the concept of modeling the existing data into visualized tools to help in predicting the future. Engineers should use the Monte Carlo Simulation, Decision Trees, Data Bases, Expert Systems, Linear Programming, Design of Experiments and all types of Artificial intelligence to state their uncertainties not as discrete values, but as continuous ranges. G&G, reserves estimates, development planes, operations, IPR, and economics are vast areas to apply these techniques. How high are the “highs” and how low are the “lows” and when they occur are difficult to predict. So let us put our past experience on an updated form to be an ongoing process to help currently in minimizing uncertainties and to include future knowledge. One of the already proved approaches to tackle uncertainty is the multidisciplinary team. However, members of this team have to unify first their views, thoughts, and sometimes even units!!! They’re also requested to use each available visualization tool experimenting sensitivity analysis to define the way for process optimization. Biography: Recently joined IPR Group of Companies. He worked for 8 years with GUPCO (the biggest Egyptian JV with AMOCO, then BP) and 3 years with Schlumberger as part-time consultant. Dr. Macary is the Production Department Head and Petroleum Engineering Professor in Egyptian Petroleum Research Institute (EPRI). Sameh was graduated 1981 Cairo University with Honor and then was appointed as instructor for two years in the Engineering Mathematics & Physics Department. Mr. Macary Has M. Sc. (1985) and Ph. D. (1988) in Pet. Eng. From Azerbaijanian Institute of Oil & Chemistry. Dr. Macary is the Tech. Prog. Chairman of the local Section and the representative of Egypt in the ME SPE Council. He has 10 SPE Papers, has served in Gas Technology, Reservoir Engineering and Reserve Estimates Committees of Different ATCEs and SPE Membership Committee.


Oilfield Scale – A New Integrated Approach to Tackle an Old Foe

Dr. Eric J. Mackay Heriot-Watt University

Abstract: Mineral scale formation in oilfield production systems has been a problem in the industry for almost 50 years – this “old foe” has been viewed very much as a “production” problem. Although oilfield scale is a long standing problem, we are constantly facing new challenges in managing it, such as those created by operating in deepwater and other harsh environments, or from the need to integrate scale management with other technical disciplines and perform appropriate economic evaluation. The key is to demonstrate that proper scale management adds value to a project, and the challenge we face is to develop a comprehensive scale management strategy as early as possible in project life to make best use of the novel and exciting technological options that are now available. Thus, scale management is becoming more proactive rather than reactive. Limited field data must be used optimally to make scale management decisions during the early stages of a project. We will describe how this is carried out making novel use of various reservoir simulation and thermodynamic scale prediction tools. These allow us to identify the severity of the potential scaling regime, and to quantify the impact of the scaling problem in the field. This in turn helps us to identify the various scale management options that are available practically, and the new (and conventional) technology that can be deployed. Thus we predict and preempt the problem by taking a wider “reservoir and fluid system” approach rather than simply seeing scale as a “production” problem. In effect, the reservoir produced brine compositions are “telling a story” and this is extremely valuable information when correctly interpreted using various modeling and prediction tools. However, the appropriate use of these predictive tools requires a thorough understanding of their potential and their limitations, and should always be validated by monitoring of appropriate field indicators once a field is under production. This lecture outlines the potential threats to production and safety that oilfield scale may present if not managed appropriately, and then discusses the criteria for analysing and selecting the optimum control strategy. The general approach is illustrated by several field examples from the North Sea, West Africa, the Gulf of Mexico and the Campos basin which the author has worked on in very close collaboration with a number of international oil companies. Biography: Dr Eric Mackay is a Research Fellow at the Heriot-Watt University Institute of Petroleum Engineering, where his research interests include the application of Reservoir Engineering principles and data to better understand production issues. For the past eight years he has worked on oilfield scale, developing and applying flow models to predict scale precipitation and to design squeeze treatments. He has over 60 publications related to scale management. In 2004 he was invited to make a keynote presentation at the SPE 6th International Symposium on Oilfield Scale, and he has been elected Programme Committee Chair for the 2006 SPE Oilfield Scale Symposium. He has prepared and co-presented SPE short courses on Oilfield Scale and is a Technical Editor for SPE Production and Facilities. As well as being responsible for software development, support and training within the Flow Assurance and Scale JIP at Heriot-Watt University, Eric has carried out both theoretical and field applied studies with many of the operating and service companies that support the JIP. Eric has led over 20 industrial training sessions in the use of software for oilfield scale management and he has taught practical Reservoir Simulation to the residential and distance learning MSc classes at the Institute of Petroleum Engineering at Heriot-Watt since 1990. He has also delivered the simulation course to the Heriot-Watt distance learning students in xxx in China. Eric holds a BSc in Physics from the University of Edinburgh and a PhD in Petroleum Engineering from Heriot-Watt University.

Society of Petroleum Engineers

Distinguished Lecturer 2007-08 Lecture Season

Smart Completions, Smart Wells and Now Smart Fields – Challenges Our Industry Face and How to Overcome Them

Shahab D. Mohaghegh

West Virginia University Abstract: The promise of fully automated and intelligent oil and gas fields is very tempting. Some envision turning reservoir management into an ultimate video game with engineers, scientists and managers sitting at their workstations in the office and guiding the hydrocarbon from the reservoir into the wellbore leaving almost nothing left behind. It all started with smart completions, and then came smart wells and now it has grown into the idea of smart fields. New hardware is manufactured and being improved routinely that can be placed downhole permanently and using fiber optics and wireless technology can send high frequency (almost real-time) data streams (pressure, temperature, flow rate, acoustic signals, …) into the office. This high frequency data is dumped into data warehouses at a rate of terabytes per day. What are the challenges that our industry face in turning this data into information and then knowledge that can be utilized to make decisions and consequently turn the decisions into action? This needs to be accomplished through a robust feedback system in almost real-time. Where are the bottlenecks? Where can we look for solutions? How can they be implemented? Are we the only industry that has faced or is facing such challenges? To overcome these challenges we have to use the technology that others such as aerospace industry and the financial market have used in order to solve similar problems, successfully. Biography: Shahab D. Mohaghegh is Professor of Petroleum and Natural gas engineering at West Virginia University, and the founder and president of Intelligent Solutions, Inc. (ISI), a consulting company with emphasis on application of Intelligent System technology in the E&P industry. He holds B.S., MS, and PhD degrees in petroleum engineering. He served as professor at West Virginia U. for over 14 years and Founded ISI in 1996. He has authored more than 90 technical papers, supervised more than 20 graduate theses, and carried out more than 30 projects many of them with major international companies regarding the use of intelligent systems to enhance oil and gas production. He has been featured in the Distinguished Author Series of SPE’s Journal of Petroleum Technology (JPT) four times.


CO2 Enhanced Oil Recovery and Storage, the Weyburn Story —Industrial and Governmental Perspectives

Michael J. Monea, P. Geo, P. Eng Petroleum Technology Research Centre

Abstract: Industry’s drive to understand and utilize the EOR benefits of CO2 injection in depleted oil reservoirs has propelled CO2 storage research to new levels. The Weyburn Project, located in Western Canada, is the world’s largest commercial CO2 pilot project and continues to demonstrate the importance of conducting research in real world situations. The Project’s industrial scale CO2 injection has allowed scientists to identify and follow the CO2 within very thin reservoirs. In addition, new models are currently being developed to predict the effects of the EOR process, and Risk Assessment models will be used to predict a formation’s suitability to safely retain the CO2 over thousands of years. The Weyburn Project’s benchmark dataset and models will be accessible to governments around the world and will serve as the basis for building regulation and policy procedures for future CO2 EOR and storage projects. Biography: Michael Monea was appointed Executive Director of the Petroleum Technology Research Centre, a research institution located in Regina Saskatchewan in 2003. He is a geologist by trade and has spent the bulk of his professional life in the oil and gas industry. Mr. Monea’s oil and gas expertise was practiced in both the United States and Canada in all aspects of downstream oil and gas ventures. He has been President of several companies and most recently sold Flatland Exploration Ltd. in 2002. He still holds chair positions in various companies. Mr. Monea’s background with industry networking combined with his extensive history of interest in Research should enable laboratory experimentation and research to be field tested and delivered to Canada’s oil and gas industry.


Downhole Fluid Analysis, The Key to Unraveling the Complexities of Reservoirs and Their Contained Fluids

Oliver C. Mullins

Schlumberger

Abstract: In recent years, there has been a growing realization that improper treatment of hydrocarbon fluid complexities commonly leads to gross inefficiencies in facilities design and production strategies. A common but incorrect working model is that hydrocarbon fluids are homogeneous in contrast to the lithofacies which are correctly treated as being heterogeneous. Downhole Fluid Analysis (DFA), a new technology, is shown to reveal compositional variations thereby enabling proper modeling. A second common but incorrect working model is that pressure communication between different permeable zones implies flow communication. This model is often in gross error; pressure communication can be established on a geological time frame (10 million years) while production mandates a 10 year time frame. These technical shortcomings have made compartmentalization one of the biggest problems in Exploration / Appraisal. DFA coupled with compositional gradients are now routinely uncovering compartmentalization. In addition DFA is shown to be essential to characterize reserves in tight carbonates in Development. Many field examples will be shown which prove the efficiency and applicability of this new technology towards major these production issues. Finally, the proof of proper sample handling from downhole to laboratory reports is embodied in the Chain of Custody, soon to be implemented by Schlumberger. The future of petroleum analysis – Petroleomics will be mentioned. Biography: Dr. Oliver C. Mullins, a Scientific Advisor, is the originator of Downhole Fluid Analysis, a commercial service for which he has awarded three Gold Medals, two from Schlumberger and one from the State of Connecticut. His current position, Reservoir Domain Champion for Wireline Headquarters reflects his contributions in this area. Dr. Mullins, a chemist, also leads an active research group in asphaltene and petroleum science. His work on asphaltenes has helped resolved long-standing controversies in the field. He has co-edited three books on asphaltenes, the third in press. He has published 60 articles in refereed journals, 30 in oilfield journals, and has coauthored 26 US patents. His hobbies include skiing, scuba, biking and blues saxophone.


A Journey Through the Evolution of Deepwater Drilling in Campos Basin

Emmanuel Franco Nogueira Petrobras - Petroleo Brasileiro SA

Abstract: Since 1970 the Campos Basin, has been a big research area for the drilling and production activities. During these years, a lot of know-how and information have been acquired. The huge experience obtained enabled and pushed the test of a number of technologies without losses to the company or to the environment. Among these projects Petrobras implemented: the Single Drilling Guide Base, Slender Well Technology, Offshore Near Balance Drilling, Multilateral wells, Torpedo Anchors and the recent Torpedo Base. For the near future Petrobras is preparing operations such as Deepwater Underbalance Operations, Micro Flux System applications and Surface BOP drilling and completion for deepwater units. All these technologies have the target of optimizing and reducing the well cost. Exemplifying this goal the Torpedo Base project has shown its importance by reducing the well time by one and a half day. This technology allows the installation of the conductor casing employing an anchor handling vessel saving important rig time. Another advantage was the fact that the installation method provides a better foundation since no soil is removed during this process. Thus enhancing the lateral friction with the conductor casing. Today more than 12 torpedo bases have been installed with complete success in the fields of Albacora East, Albacora, Espadarte and Marlim and throughout 2006 some other torpedo bases will be installed in Roncador and Marlim Sul. Finally a twenty six years experience overview in drilling experience and technology implementation will be presented. Biography: M.Sc. Emmanuel Franco Nogueira is a Senior Petroleum Engineer for Petrobras. Today he works as Senior Consultant for the Well Engineering and New Technologies Group at the Rio de Janeiro Petrobras Headquarters, in Brazil. He has previously worked as a Company man, Special Operations and Mud Logging Engineer. He holds a B.Sc degree in Mechanical Engineering from Brasilia University and M.Sc in Subsea Engineering from Cranfield University/UK. He has been involved in projects on deep and ultra deepwater, well design for offshore deep-water wells. He is a subsea equipment specialist with 25 years of professional experience. He has authored or co-authored 10 technical papers, in conferences such as OTC, DOT, Offshore West Africa, Rio Oil & Gas and Colaper. He holds two international patents (Single Drilling Guide Base and Torpedo Base) on subsea equipment for drilling applications. Also has given courses on deepwater drilling in Nigeria and Colombia and teaches deepwater drilling at Petrobras and Federal University of Rio de Janeiro.


Selection and Design Criteria for Sand Control Screens

William K. (Bill) Ott, P.E. Well Completion Technology

Abstract: This presentation involves the critical evaluation of sand control screen selection, design and performance. The proliferation of new screens and screen types has raised legitimate questions about how to select the proper sand control screen or other device for a particular formation and type of completion. Included will be a review of modern techniques and currently available sand control devices, using sieve analysis data, various sieve analysis techniques, and example applications of various sand control programs. The issue of slot width and true micron rating for the various screen types - wire-wrapped, pre-packed, shrouded metal mesh, expandable, and other - will be explored. Biography: William K. (Bill) Ott is an independent petroleum consultant based in Houston, Texas and founder of Well Completion Technology, an international engineering consulting and petroleum industry-training firm established in 1986. Before consulting and teaching, Mr. Ott was division engineer for Halliburton’s Far East region based in Singapore. Previously he was a research field coordinator for Halliburton in Duncan, Oklahoma. Mr. Ott received his BS Degree in Chemical Engineering from the University of Missouri, is a registered professional engineer in Texas, and a 32-year member of SPE. He works regularly as a consulting engineer around the world. He conducts technical petroleum industry courses worldwide and has written numerous technical papers relating to well completion and workover operations, including co-authoring the popular Modern Sandface Completion Practices Handbook (1st Ed. and 2nd Ed.) as well as the Mature Oil & Gas Wells: Downhole Remediation Handbook.


Methods to Evaluate and Select the Best Way to Dispose of Drilling Wastes

P. W. Page

BP Exploration

Abstract: There is considerable pressure on the industry, to manage, and to be seen to be managing, the environment effects associated with E&P operations. One of the key aspects under scrutiny is the disposal of drill cuttings. Concern over this issue is being driven by changes in legislation and company policies. Several options are available for the treatment and/or disposal of cuttings and there are a variety of environmental effects associated with each of these options. For offshore operations there is re-injection, or skip and shipment to shore followed by thermal treatment or bioremediation. For onshore operations there are also chemical fixation/stabilisation methods, with the ultimate disposal of inert residual solid waste to landfill, or use elsewhere (e.g. in road construction or brick manufacture). The range of environmental effects associated with each of these options: includes: impacts to the sea; impacts to land; gaseous emissions; energy use; socio-economic effects and public acceptability. In addition, the severity and characteristics of actual or potential impacts arising from any option, may vary from site to site, and region to region, depending on the drilling location, the specifications of the drilling programme, and the concerns of external stakeholders. This presentation will discuss the methods currently available to assess and rank drilling waste disposal options together with the relative strengths and weaknesses of each approach. Biography: P. W. Page is a Senior Drilling Environmental and Waste Management Advisor for BP Exploration. He has held this position since 1990, having previously worked in various technology roles within BP Minerals and BP Solar. He joined BP in 1984 with a BSc (Hons.) in Chemistry with Geochemistry and MSc, and PhD degrees in Metallurgical Engineering from the Royal School of Mines at Imperial College, London. He is a member of the SPE HSE Advisory Committeee and has authored papers on Total Fluids Management, cuttings recycling and drilling waste treatment technologies.


Current Practices and Challenges in Gravel Packing Open Holes with Reactive Shales

Mehmet Parlar

Schlumberger Oilfield Services

Abstract: Many of the recently discovered deepwater oilfields require sand control. Openhole gravel packing is one of the two most preferred sand control techniques by the operators in such environments, the other being frac-packing. Many of these reservoirs contain reactive shales, which introduce significant challenges in installation of sand control screens to target depth and/or achieving a complete gravel pack in open hole environments. This presentation will discuss the recent developments and current challenges in gravel packing of open holes in reactive shale environments, and highlight relevant field case histories as well as laboratory and large scale experimental data, with emphasis on wells drilled with oil-based fluids. Biography: Based in Rosharon, Texas, Mehmet Parlar is a Technical Advisor at Schlumberger. He holds a BS degree from Istanbul Technical University, MS and PhD degrees from the University of Southern California, all in petroleum engineering. He has over 16 years of industry experience, with 7 years in product development and remainder in sand management services technical support. He has authored more than 40 papers and holds 12 US patents. He was a distinguished author in 2000, and served in various organizing committees for SPE ATWs, forums and conferences.


Innovation in the Oil Field -- YOU can do it!

Phiroze Patel Aera Energy LLC

Abstract: Huge capital costs, operating costs and environmental exposure make the upstream oil and gas business a naturally conservative system. Innovation is recognized as necessary but how does one fit these creative and "random" activities into the overarching conservative backdrop? Recognizing this incongruity is the first step and Systems Thinking is useful to provide the context for innovation in an upstream oil and gas company. Construction of an innovation process, database and measures is essential, not only to manage such activities but also to communicate progress to senior management and validate innovative efforts. A simple process and its execution will be discussed using an example project. A method to involve producing asset staff will be described. Examples that illustrate proper and improper fit of innovation projects in one medium-size oil company's portfolio are quite educational and lessons learned can be translated to foster innovation in your company, be it small or large. Biography: Phiroze Patel is Innovation Director for Aera Energy LLC, a stand-alone company jointly owned by affiliates of Shell and ExxonMobil. He holds Bachelor's and Master's degrees in Aeronautics and Astronautics and a Ph.D. in Nuclear Engineering. Phiroze started his 28-year upstream oil production career in Shell's research laboratory and has held many engineering and management positions in water, CO2 and steam flood operations. For the last six years he has participated in Aera's Innovation Team, including the design and implementation of Aera's Innovation Process. Phiroze has served on technical committees of SPE conferences and is a technical editor of a SPE journal.


Underbalanced Drilling; Remedy for Formation Damage, Lost Circulation, & Other Related Conventional Drilling Problems

Hani H. Qutob

Weatherford International Ltd. Abstract: In almost every drilling operation, there is a potential source of damage to well productivity, lost circulation, differential sticking and other related conventional drilling problems. The key damage mechanisms are re-visited providing a broad overview on how they occur during various oilfield operations, and their effect on well productivity. Also, lost circulation or fluid invasion potential in high permeability zones, large open fractures, heterogeneous carbonates with massive interconnected vugular porosity, or pressure depleted zones would be a major issue of concern during conventional drilling condition. The worst-case scenario would be a combination of one of these high permeability features with significant pressure depletion. In order to overcome the above problems while drilling, the industry developed Underbalanced Drilling Technology to drill with a bottom hole pressure below the pore pressure thereby permitting reservoir fluids to be produced while drilling. Underbalanced Drilling Technology can add value and in some cases reduce development cost as the majority of hydrocarbons being exploited today are found in existing pressure depleted or complex and lower quality reservoirs with significant conventional drilling problems. Several case histories and real results are reviewed highlighting the advantages of Underbalanced Drilling Technology in reducing formation damage, lost circulation and improving well productivity. Biography: Hani H. Qutob is the Chief Reservoir Engineer for Weatherford Underbalanced Systems and Testing Services in the Middle East and North Africa. He has 28 years of diversified international experience with Abu Dhabi National Oil Company-ADNOC, ADCO, Exxon-Mobil, Shell and Weatherford in Reservoir Engineering management, simulation & Integrated Reservoir Modeling, Formation Damage analysis and evaluating the reservoirs risked probability of being successfully exploited with Underbalanced Drilling Technology. He Holds a B.Sc. and M.S. degrees in Petroleum Engineering. He is a very active SPE member on the section, region and international levels. He has authored more than 20 technical papers and carried out more than 50 reservoir studies world wide. Hani has been the recipient of many awards including the SPE Regional Service Award in March 2001-Bahrain, September 2004-Houston and the SPE distinguished member Award in October 2005-Dallas.


GameChanger: Enabling Global Innovation in E&P

L.P. Roodhart Shell international

Abstract: GameChanger has been successfully enabling innovators and entrepreneurs in the Shell E&P technology centers to rapidly develop revolutionary ideas that are not a part of traditional incremental technology development. Radical innovation leads to technological advantage and a strong competitive position, leveraging the gain from our own internal innovation talent. This presentation demonstrates how innovators throughout the Shell E&P business have transformed our subsurface technology capability since the start of GameChanger in 1996. GameChanger has been successful. Over five hundred ideas have been submitted since inception and many of these have progressed to deliver value to the business. A high proportion (80 %) of these ideas have been aimed at enhancing our subsurface technology capability. Successful projects that have emerged include many elements of the Smart Wells technology, signal-to-noise improvement in sub-salt seismic data, and Light Touch as an exploration tool. This presentation will highlight: • Examples of breakthrough subsurface technologies that received seed funding through the

GameChanger process. • Mechanisms the GameChanger team utilizes to involve more staff as innovators (in the same way

that the knowledge sharing networks currently successfully operate throughout the World). • Examples of focused, breakthrough idea-generation workshops within operating units. • How you can get beyond “SMART with Subsurface” technology through innovation Biography: Leo Roodhart is Manager Strategic Innovation in Shell GameChanger. GameChanger is Shell’s Cross-Business Innovation programme, which executes and directs Shell’s innovation strategy utilising the creativity of all Shell people. His background in Production Engineering where he published a large number of papers in the area of Well stimulation and Water management. Leo Roodhart is an associate fellow of Templeton College, University of Oxford, holds an MSc in chemistry and a PhD in Mathematics and Physics from the University of Amsterdam. He works 24 years for Shell in various functions including research and development, exploration and production, business development and innovation in The Netherlands, Canada and the UK.


Wellbore Cementing Challenges Present and Future

David A. Ross BJ Services Company

Abstract: Regardless of the vast amount of work that has been performed over the years to better understand wellbore cementing requirements, obtaining effective long term zonal isolation still remains one of the biggest problems facing the oil and gas industry today. Over the last decade a considerable amount of research has been performed to better understand the forces imposed on a cement sheath during the life of a well and the mechanical parameters required from the cementing materials to withstand these forces. As a result of this work engineering tools, cementing materials and methodologies have been developed which allow engineers to design fit for purpose cementing designs that can indeed provide long term wellbore isolation if executed properly. Despite the advances that have been made the challenge remains for the cementing service providers to re-educate the industry about the new methodologies pertaining to wellbore cementing design, and to snuff out the beliefs in old cementing paradigms that are still the norm rather than the exception. This re-education process combined with the search for improved cementing materials that can perform in increasingly extreme environments will continue to pose additional challenges for cement design engineers. This presentation will address in detail the aforementioned challenges facing the industry. Biography: David Ross obtained a BS degree in Petroleum Engineering from the University of Texas in 1982. He currently holds the position of Director of Applied Technology for BJ Services Company. During his 23 year career with BJ Services, David has gained a broad range of experience in the engineering disciplines of Hydraulic Fracturing, Well Cementing, Matrix Acidizing, Sand Control, Completion Fluids and Coiled Tubing Services. During his career he has been fortunate to work in a wide range of geographical environments that span the globe including, Alaska, Europe / North Sea, South America South East Asia, Russia, the Middle East, Canada as well as South & West Texas. During his career David has been active in the SPE and has authored or co-authored eight technical papers pertaining to cement slurry designs, completion techniques, sandstone acidizing systems, personnel training and QHSE management systems. He was also the principal co-author of the BJ technical manuals “Understanding Formation Damage” and “Clear Brine Completion Fluids”.


The Physics of Steam Injection in Fractured Carbonate Reservoirs: Engineering Development Options that Minimize Risk

Dr Gordon T Shahin Jr.

Shell International E &P- Technlogy Abstract: Naturally fractured carbonate reservoirs hold over 20 billion barrels of heavy oil worldwide. Thermally Assisted Gas-Oil-Gravity-Drainage is a novel thermal EOR technique which has applicability in selected reservoirs. In conventional GOGD, vertical fractures cause the gas-oil contact in the fracture system to advance ahead of the gas-oil contact within the matrix blocks causing the oil in these blocks to become mobile. The addition of heat in the fractures generates additional hydrocarbon gas cap, lowers the viscosity of the oil, and accelerates GOGD, as seen in the 220 cp heavy-oil Qarn Alam field in Oman. Pilot results in the Qarn Alam field support the commerciality of this process, and a first-of-it ’s-kind steam injection project is being implemented. The economic success of the project depends on the ability to credibly predict steam requirements and oil production for various fracture realization scenarios. To this end, it is important to quantify the areal density of the fracture system, and to use this information to accurately model new steam process mechanisms. Two key mechanisms are heat transport through the fractures and into the matrix, and subsequent gas cap generation due to thermal volatilization of the oil. To understand these factors, deterministic fracture studies were undertaken. From these studies, fracture permeability and spacing map realizations were created for direct input into reservoir simulations. The process mechanisms involved in TA-GOGD were validated by history matching laboratory experiments, while the field forecast model results were validated by history matching pilot performance data. A new fully integrated workflow of fracture characterization, integrated reservoir physics, and static and dynamic modeling has enabled uncertainties and risks to be managed in a scenario based development approach. Biography: Gordon Thomas Shahin Jr. is a Senior Staff Reservoir Engineer at Shell’s International E&P Technology Organization in Houston, Texas. He holds BS (Honors), MS and PhD degrees in Chemical and Bio Chemical Engineering. Dr. Shahin joined Shell’s Bellaire Research Center and worked in the Chemical Flooding Group for 6 years. Field assignments took him to New Orleans, as the technical lead for implementation of two successful pilots involving polymer and Enhanced Alkaline Flooding (ASP) technologies. During the early 90's, he implemented conventional and light oil steam injection projects in California, while part of the Advanced Thermal Technology Group. As Technical Operations Supervisor, he oversaw the operations and analysis of results from two of Shell’s Thermal Conduction Oil Shale Pilots. He is currently a Senior Technical Leader in Shell’s Integrated Field Study Group, focusing on global application of EOR techniques. Dr. Shahin holds over 60 patents in thermal recovery and related technologies, and has authored numerous papers in his 20-year career with Shell.


Integrated Uncertainty and Decision Analysis of Petroleum Projects: Work-flows and Tools

Tarald Svanes

Statoil Abstract: With Excel systems is meant in-house fit-for-purpose generated Excel files or templates containing user developed macros and functions combined with standard Excel functions, being linked to commercial Excel plug-ins for Monte Carlo simulation, statistical analysis, decision tree analysis etc. The lectures will through introduction to basic Excel possibilities, on-line development of a few simple examples (involving the audience), and more thorough presentation of real case studies, discuss advantages and dis-advantages in using such systems. It is a fact that Excel plays a central role in several evaluation activities. Excel is also a tool that the majority of the technical personnel involved in such evaluations are familiar with. Therefore, the goal with this lecture is not to promote Excel, but rather to present hints and opportunities, discuss pit-falls, and give examples of how Excel is applied in various contexts ranging from risking of plays and prospects, volume estimation, simple and advanced production profile generators, utilizing sensitivities from 3D flow simulations through experimental design and regression analysis, combining the production profiles with cost profiles generating discounted cash-flows with uncertainty, and finally linking these to the decision process. Hence, the integrated uncertainty treatment process will intuitively be presented. Biography: Tarald Svanes is adviser in sub-surface uncertainty treatment in Statoil. He holds a MS degree in physics from the Norwegian Technical Inst. in Tronheim (1990) and a Master in Petroleum Business Engineering from Delft Univ. of Technology (2005). He joined Statoil in 1991, and has worked on several extensive reservoir modelling and simulation projects in Norway and Venezuela, being involved in research and development of geo-statistical modelling tools. His main interest is cross-disciplinary integrated reservoir studies utilising advanced tools in evaluating effect of uncertainties on economics and decisions. In 1995 Tarald was honoured recipient of the SPE Society’s C. K. Ferguson Medal (recognising “significant contributions to the permanent technical literature of the profession by a member of Society under age 33”), and in 2001 the "SPE Stavanger Section Young Engineer of the Year Award".

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