Decline Curve Analysis Course

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Reservoir Engineering

Chapter 12 – Decline Curve Analysis Arron Singhe

2000 oil rate Expon. (oil rate)

Oil Rate

1500 y = 1784.5e-0.0503x 1000

500

0 0

10

Time

20

30

Introduction Decline Curve Analysis

INTRODUCTION

OUTLINE

BACKGROUND TYPES OF DECLINE CURVES

INTRODUCTION

APPLICATION OF DCA

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DECLINE CURVE ANALYSIS (DCA)

2

Introduction Decline Curve Analysis A Property Status

B Pre-drilling Period

INTRODUCTION

D

Well Completed

Study Method

E

F

Production Operations Abandonment

Development Period

BACKGROUND TYPES OF DECLINE CURVES

C 1st

Analog

Volumetric

Performance Simulation Studies Material Balance Studies Decline Trend Analyses

APPLICATION OF DCA

Range of Estimates

Ultimate Recovery

Actual Recovery Range of Recovery Estimates

Production Profile

Cumulative Production

Log Production Rate

Cumulative Rate

Time

Relative Risk

Risk

High

Low

3

A

B

C

D

E

F

Introduction Decline Curve Analysis

INTRODUCTION

INTRODUCTION

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

What is decline curve analysis?



Decline Curve Analysis (DCA) is a simple, graphical method that uses extrapolation of performance trends to obtain

• • •

the remaining oil reserves the ultimate oil recovery or the remaining production life of a well, field, etc.

2000 oil rate Expon. (oil rate)

Oil Rate

1500 y = 1784.5e-0.0503x 1000

500

0 0

4

10

Time

20

30

Introduction Decline Curve Analysis

INTRODUCTION

INTRODUCTION

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

What is decline curve analysis?

– – –

5

A curve fit of the past production performance is done using certain standard curves. This curve fit is then extrapolated to predict future performance and to estimate recoverable reserves Conventional Decline Curve Analysis can be used only when the production history is long enough that a trend can be identified.

Introduction Decline Curve Analysis

INTRODUCTION

THEORETICAL BACKGROUND

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

The basic assumption: – Whatever causes controlled the trend of a curve in the past will continue to govern its trend in the future in a uniform manner

– The extrapolation procedure is therefore of empirical nature – The reserve estimates obtained by DCA are limited to those recoverable under the existing conditions DCA cannot be applied across recovery phases – e.g. initiating a water-flood would definitely change the causes that controlled the trend of the curve too much

– DCA should be applied for reservoirs under boundary restricted flow conditions

6

Introduction Decline Curve Analysis

INTRODUCTION

THEORETICAL BACKGROUND

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

7

Restrictions – This method is not based on physical principles – It can only be applied as long as the mechanical conditions of the well (completions, production method, ...) are not changed – Assumes that the driving forces in the reservoir are not changed during the time.

Introduction Decline Curve Analysis

INTRODUCTION

THEORETICAL BACKGROUND

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

The instantaneous or current decline rate – which is a continuous function that is used in the mathematical derivation of the decline curve



it is the negative slope of the curve (log q) vs. time and hence defined as

D



8

d ln q dq / q  dt dt

D is the decline rate expressed in “% per year”.

Introduction Decline Curve Analysis

INTRODUCTION

TYPES OF DECLINE CURVES

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

Three types of curves have been identified: – Exponential – Hyperbolic – Harmonic It is implicitly assumed that the factors causing the decline continue, unchanged, during the forecast period. – Reservoir conditions – Operating conditions

9

Introduction Decline Curve Analysis

INTRODUCTION

TYPES OF DECLINE CURVES

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

Exponential Decline (Constant Percentage Decline) – the nominal decline rate D is a constant

D

d ln q dq / dt   const dt q

– which after integration leads to: t

q

0

qi

  Ddt   d ln q  Dt  ln q  ln qi q  qi e  Dt

– Plotting q versus log(time) will give a straight line with slope D

10

Introduction Decline Curve Analysis

INTRODUCTION

TYPES OF DECLINE CURVES

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

Harmonic Decline – the nominal decline rate D is proportional to the production rate (i.e. it is a special case of the hyperbolic decline where b = 1)

D

dq / dt  Kq q

– which after integration leads to: q

qi 1  Di t

– where Di is the initial nominal decline and K is a constant which can be determined under initial conditions

K

11

Di qi

Introduction Decline Curve Analysis

INTRODUCTION

TYPES OF DECLINE CURVES

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

Hyperbolic Decline – the nominal decline rate D is proportional to a fractional power b of the production rate

D

dq / dt  Kq b q

– which after integration leads to: q  qi 1  bDi t 

1/ b

– where Di is the initial nominal decline and K is a constant which can be determined under initial conditions.

K

12

Di qi

Introduction Decline Curve Analysis

INTRODUCTION BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

13

TYPES OF DECLINE CURVES

Introduction Decline Curve Analysis

INTRODUCTION

FLOW RATE COMPARISON

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

Relationships for production rates: – exponential decline (n = 0)

qt  qi e  Dt



hyperbolic decline (0<= n <= 1)

qt  qi 1  nDi t 

1 / n



harmonic decline (n = 1)

qt 

14

qi 1  Di t

Introduction Decline Curve Analysis

INTRODUCTION

CUMULATIVE PRODUCTION COMPARISON

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

Relationships for cumulative production with rate: – exponential decline (n = 0)

qi  qt Np  D



hyperbolic decline (0<= n <= 1) n 1     qi qi Np      1 n  1  Di  qt  



harmonic decline (n = 1)

 qi  qi Np   ln  Di  qt  15

Introduction Decline Curve Analysis

INTRODUCTION

PRINCIPAL EQUATIONS - OVERVIEW

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

Type n Rate

Hyperbolic

Harmonic

0

1

qt  qi 1  nDi t 

1 / n

qt  qi e  Dt

qt 

qi 1  Di t

Cum. Prod q  qt Np  i with rate D

 q  n 1  q  q qi Np    i   1 N p  i  ln i  Di n  1  Di  qt    qt 

Cum Prod q N p  i 1  e  Dt  D with time

Np 

Prod. time

16

Exponential

1 q t  ln i D  qt

  

qi n  1  Di

n 1  1  nDi t  n  1  

n  1  qi    t   1 nDi  qt   

Np 

t

qi  ln1  Di t  Di

1  qi       1 Di  qt  

Introduction Decline Curve Analysis

INTRODUCTION

APPLICATION OF DCA

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

DCA is mainly used for – production forecasting and – reserve estimation during primary production DCA can be applied to basically any well and any reservoir because – it is solely based on production data and – production data is the only data that is always available

17

Introduction Decline Curve Analysis

INTRODUCTION

APPLICATION OF DCA

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

– DCA has been used since the 1920s. Back then the evaluation was purely graphical. Nowadays DCA is applied with the help of – curve fitting tools in spreadsheet programs or – whole DCA modules in production database programs Advanced DCA features in today’s production databases greatly speed up the application – e.g. auto decline fitting Furthermore is it possible to evaluate multiple performance trends – e.g. oil production vs. time and water cut vs. cumulative production is extrapolated to a minimum oil rate and a maximum water cut, whichever is reached first

18

Introduction Decline Curve Analysis

INTRODUCTION

APPLICATION OF DCA

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

The two main types of curves used for DCA are: – rate vs. time – rate vs. cumulative production Other type of curves that are also applied, but mostly in a secondary manner (i.e. as a measure to determine when the economic limit is reached): – water cut vs. time – water cut vs. cumulative production – water rate vs. time etc.

19

Introduction Decline Curve Analysis

EXAMPLE 12.1

INTRODUCTION BACKGROUND

The following DCA has been fitted to the well production data – Oil rate in STB/d, cum. Oil in STB – Time in months

TYPES OF DECLINE CURVES APPLICATION OF DCA

0.6

10000

oil rate Expon. (oil rate) 0.5

0.4

Water Cut

Oil Rate

y = 1796.4e-0.0479x

y = 7E-05x - 1.6023

1000

0.3

0.2

0.1

0

100 0

5

10

15

20 Time

20

25

30

35

0

5000

10000

15000

20000

Cum ulative Oil Production

25000

30000

3500

Introduction Decline Curve Analysis

INTRODUCTION

EXAMPLE 12.1

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

1. What type of decline is it ? 2. What is the nominal decline D ? 3. When is the economic limit of 100 bbl/d reached ? 4. What is the estimated ultimate recovery for this economic limit ? 5. What is the estimated ultimate recovery if a water cut of 0.9 is used as the economic limit ?

6. What is the estimated ultimate recovery if both economic limits are considered ?

21

Introduction Decline Curve Analysis

INTRODUCTION

EXAMPLE - ANSWERS

BACKGROUND TYPES OF DECLINE CURVES

1. What type of decline is it ? exponential decline

APPLICATION OF DCA

2. What is the nominal decline D ? the nominal decline is given from the decline curve, D = 0.0479 or 4.8 % per month

3. When is the economic limit of 100 bbl/d reached ? q  1796.4e0.0479t t

22

1  100  ln    60.3 months  0.0479  1796.4 

Introduction Decline Curve Analysis

INTRODUCTION

EXAMPLE - ANSWERS

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

4. What is the estimated ultimate recovery for this economic limit ? qi  q 1796.4  100   30.417  1077220bbl D 0.0479 5. What is the estimated ultimate recovery if a water cut of 0.9 is used as the economic limit ? the curve fit gave the following equation N p max 

watercut  7 105 (cum.oil )  1.6023

N p max 

0.9  1.6023 7 10

5

 35747 bbl

6. What is the estimated ultimate recovery if both economic limits are considered ? It is the smaller one of the two, therefore Npmax = 35747 bbl

23

Introduction Decline Curve Analysis

INTRODUCTION

EXAMPLE 12.2

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

24

Given the following production history

– –

What type of decline is this? Estimate D and b!

Time [Months]

Rate [STB/day]

0

350

1

345

2

340

3

335

4

330

5

325

6

320

7

315

8

310

9

306

10

301

11

297

12

292

13

288

14

284

Introduction Decline Curve Analysis

INTRODUCTION

EXAMPLE 12.3

BACKGROUND TYPES OF DECLINE CURVES



A well with an exponential decline of 0.01 [1/month] produces at 150 STB/day

APPLICATION OF DCA

– – –

25

What will the production rate be in 2 years? What will the cumulative production be in those 2 years? How long will it take to reach the economic limit of 10 STB/day?

Introduction Decline Curve Analysis

INTRODUCTION

EXAMPLE 12.4

BACKGROUND TYPES OF DECLINE CURVES



A well with a harmonic decline of 0.01 [1/month] produces at 150 STB/day

APPLICATION OF DCA

– – –

26

What will the production rate be in 2 years? What will the cumulative production be in those 2 years? How long will it take to reach the economic limit of 10 STB/day?

Introduction Decline Curve Analysis

INTRODUCTION

EXAMPLE 12.5

BACKGROUND TYPES OF DECLINE CURVES



A well with a hyperbolic decline of 0.01 [1/month] and n = 0.6 produces at 150 STB/day

APPLICATION OF DCA

– – –

27

What will the production rate be in 2 years? What will the cumulative production be in those 2 years? How long will it take to reach the economic limit of 10 STB/day?

Introduction Decline Curve Analysis

INTRODUCTION

EXAMPLE 12.6

BACKGROUND TYPES OF DECLINE CURVES



APPLICATION OF DCA

– – –

28

The AX-1 reservoir has been producing oil for over 30 years from the Bartlesville (Oklahoma) sands at a depth of 300 - 400 m. Between 1985 and 1988, 42 wells were on production. The field can be operated economically as long as production is in excess of 1 m3/day per well. Eight in-fill wells were drilled in early 1989, and another 25 wells were stimulated with acid. This resulted in an increase in oil production. The following table is a record of the daily production from the reservoir between January 1985 and December 1989. Determine what the incremental cumulative production would be at reservoir abandonment following the drilling of the in-fill wells and the stimulation of the others.

Introduction Decline Curve Analysis

INTRODUCTION

EXAMPLE 12.6

BACKGROUND TYPES OF DECLINE CURVES APPLICATION OF DCA

1985-Jan. April July Oct. 1986-Jan. April July Oct. 1987-Jan. April July Oct. 1988-Jan. April July Oct. 1989-Jan. April July Oct. Dec. 29

Time [Months] 0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60

Wells on production 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 50 50 50 50 50

Oil rate [m 3 /day] 210 198 187 177 167 157 149 141 133 125 118 112 106 100 94 89 150 136 124 113 103

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