Production Engineering Overview

Production Engineering Overview

Production Engineering Overview Presentation Outline:  Well Life Cycle  Production Engineering Roles  Production Engineering Duties  Goals of a Production Engineer  Capital Investment Programs – Artificial Lift, Completions, Recompletions, Facilities, and Pipeline

 Expense (Maintenance Capital) Programs – Well maintenance, optimization, chemical, power, automation, enhanced recovery

 Workover Operations

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Production Engineering Overview Presentation Outline:  Well Life Cycle  Production Engineering Roles  Production Engineering Duties  Goals of a Production Engineer  Capital Investment Programs – Artificial Lift, Completions, Recompletions, Infrastructure

 Expense (Maintenance Capital) Programs – Well maintenance, optimization, chemical, enhanced recovery

 Workover Operations

Well Life Cycle Well Life Cycle: •

Drilling: 15 to 60 days (depending on vertical or HZ and operator)

•

Completions: a few days to a month (depends on the company)

•

Production: 0 days to 100 years (depends on reservoir and recovery)

Drilling

Completion

Production

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Production Engineering Overview Presentation Outline:  Well Life Cycle  Production Engineering Roles  Production Engineering Duties  Goals of a Production Engineer  Capital Investment Programs – Artificial Lift, Completions, Recompletions, Infrastructure

 Expense (Maintenance Capital) Programs – Well maintenance, optimization, chemical, enhanced recovery

 Workover Operations

Production Engineering Roles

What does a Production Engineer do at Linn Energy? • Communication • Goals of a Production Engineer • Capital Program Creation and Implementation •

Artificial Lift Implementation: •

•

Completions: •

•

Selecting the artificial lift technique that optimizes production and maximizes cash flow Selection of tubing design using IPR curves and Nodal Analysis.

Recompletions: •

Work closely with Geology and Reservoir Engineers to test new zones and increase production in marginally commercial wells.

• Expense (Maintenance Capital) Program Optimization: •

Reviewing monthly operating costs for field of wells and minimize the costs required to operate wells at their peak DCF. •

Artificial lift optimization, Chemical, compression, downhole maintenance, etc…

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Production Engineering Roles

Communication for Production Engineer Regulatory Land / Legal Reservoir Well

Field Operations

Production Engineering Geology Supply Chain Accounting

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Goals of a Production Engineer

Maximize Production & Lower Cost Production

Cost

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Production Engineering Overview Presentation Outline:  Well Life Cycle  Production Engineering Roles  Production Engineering Duties  Goals of a Production Engineer  Capital Investment Programs – Artificial Lift, Completions, Recompletions, Infrastructure

 Expense (Maintenance Capital) Programs – Well maintenance, optimization, chemical, enhanced recovery

 Workover Operations

Production Engineering Roles

Capital Investment Program Creation & Implementation • Capital Program Creation •

Yearly Budgeting Process: •

Submit a budget with project types, number of projects, capital cost, type curve (uplift), economics

•

Inventory creation through well reviews

• Capital Program Implementation •

Artificial Lift Implementation: •

•

Completions: • •

•

Flowback design and choke size considerations Selection of tubing design using IPR curves and Nodal Analysis

Recompletions: •

•

Selecting the artificial lift technique that optimizes production and maximizes cash flow

Work closely with Geology and Reservoir Engineers to test new zones and increase production in marginally commercial wells

Infrastructure (Facilities, Water Management, & Pipeline): •

Assist in the design and implementation of infrastructure projects 10

Artificial Lift Overview  Why do we need artificial lift?  Reservoir’s contain Gas, Oil, & Water.  Initial reservoir pressure and high initial gas rates unload the fluid to surface. But overtime this pressure drop in the reservoir causes less production and a decrease in velocity inside the wellbore.

 Critical rate is key to unloading fluids. (gas and fluid velocity)

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Artificial Lift Overview  Critical rate:  Critical rate is the flowrate necessary to remain in mist flow  Primarily a function of pressure and tubing size

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Artificial Lift Overview  Mandhane Flow Pattern Diagram

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Artificial Lift Overview Liquid Loading- Loss of Gas Velocity Over Time Surface Condition

Stable Flow

Initial Production

Unstable Flow

Stable Flow

RATE

Well Dead

Decreasing Gas Rate with Decreasing Reservoir Pressure Highest Velocity

Gas Velocity

TIME Lowest Velocity 14

Artificial Lift Overview  Why do we need artificial lift?  Weight of fluid causing back pressure.  .433 lbs/ft.  Approx. 2,300 ft. = 1,000 lbs.

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Artificial Lift Overview  Example: @ 60#, CR = 230 MCFD

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Artificial Lift Overview  Example:

Plunger Lift Install

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Artificial Lift Overview  How do we prevent liquid loading?  Remove the liquid – “We are in the liquids removal business” Scott Clinton

 How do we remove liquids from a well to reduce flowing bottom hole pressure: Artificial Lift  Rod Pumps  Plunger Lift  Gas Lift  Wellhead Compression  ESPs  Jet Pumps  Progressive Cavity Pumps

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Artificial Lift Overview  Artificial lift Techniques: Surface and Downhole

SPE 52157 Selection of Artificial Lift James F. Lea and Henry V. Nickens--Amoco EPTG/RPM

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Artificial Lift Overview  Artificial lift Techniques: Advantages and Restrictions Rod Lift

PCP

Gas Lift

Plunger Lift

Hydraulic Lift

Hydraulic Jet

ESP

Capillary Technologies

Maximum operating depth, TVD (ft/m )

16,000 4,878

12,000 3,658

18,000 4,572

19,000 5,791

17,000 5,182

15,000 4,572

15,000 4,572

22,000 6,705

Maximum operating volume (BFPD)

6,000

4,500

50,000

200

8,000

20,000

60,000

500

Maximum operating temperature (°F/°C )

550° 288°

250° 121°

450° 232°

550° 288°

550° 288°

550° 288°

400° 204 °

400° 204 °

Corrosion handling

Good to excellent

Fair

Good to excellent

Excellent

Good

Excellent

Good

Excellent

Gas handling

Fair to good

Good

Excellent

Excellent

Fair

Good

Fair

Excellent

Solids handling

Fair to good

Excellent

Good

Fair

Fair

Good

Fair

Good

>8°

<40°

>15°

>15°

>8°

>8°

>10°

>8

Workover or pulling rig

Wireline or workover rig

Wellhead catcher or wireline

Workover or pulling rig

Capillary unit

Gas or electric Gas or electric

Compressor

Well's natural energy

Form of lift

Fluid gravity (°API) Servicing Prime mover Offshore application System efficiency

Hydraulic or wireline

o

Multicylinder or Multicylinder or Well's natural Electric motor electric electric energy

Limited

Limited

Excellent

N/A

Good

Excellent

Excellent

Good

45% to 60%

50% to 75%

10% to 30%

N/A

45% to 55%

10% to 30%

35% to 60%

N/A

Values represent typical characteristics and ranges for each form of artificial lift. Parameters will vary according to well situations and requirements and must be evaluated on a well-by-well basis.

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Artificial Lift Overview  Rod Pump  Mechanic lift Application  Down hole pump and rods lift fluid to surface through tubing  Rod pump makes up 82% of the artificial lift in the United States

http:// www.youtube.com/watch?v=mezztZpaFQM&featu

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Artificial Lift Overview  Down Hole Pump:  There are many different types and variations of down hole pumps. But the physics behind the mechanical application are very similar.

Traveling Valve

Standing Valve 22

Artificial Lift Overview  Rod Pumping Parts  Rod Sizes: 1-1/8”, 1”, 7/8”, 3/4” 5/8”

Threads

Couplings

Rod String

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Artificial Lift Overview  Rod Pumping  Production profile: – Erratic oil production that relates to pump cycles (SPM, and POC) – Gas production is up the annulus and is fairly consistent but is related to the unloading of fluid from the annulus to increase inflow Evans, AO #10-5715 1/13/2015 10:56:10 to 4/13/2015 11:56:10 300 250 200 150 100 50 0 15 Thu 22 Thu Jan 2015

1 Sun 8 Sun 15 Sun 22 Sun 1 Sun 8 Sun 15 Sun 22 Sun

1 Wed 8 Wed 15 Wed 24

Artificial Lift Overview  Rod Pumping  Advantages: – Simple system design – Efficient – Low BHP (bottom hole pressure) – Transferable units – Flexible production rates – Handles high temperatures – Gas or electric power

 Disadvantages: – High initial capital cost – Trouble handling solids – Friction on deviated wells – Depth limited – Large surface footprint – Limited on casing size

– Handles corrosion and scale 25

Artificial Lift Overview  Plunger Lift  Hydraulic lift application  Reservoir and casing pressure applies the force to lift the plunger and fluid to surface

http:// www.youtube.com/watch?feature=player_embedded&

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Artificial Lift Overview  Plunger Lift

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Artificial Lift Overview  Plunger Lift Equipment Bottom Hole Assembly

Pad plunger

Brush plunger

Solid plunger

Bypass plunger

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Artificial Lift Overview  Plunger Lift • Production profile  Erratic production due to the number of plunger trips per day  Casing and tubing pressure build and fall as the plunger cycles

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Artificial Lift Overview  Plunger Lift  Advantages: – Very inexpensive – Low operating cost – Wire line retrievable – Keeps tubing clean (combats scale) – Small surface footprint – Can be used in conjunction with gas lift

 Disadvantages: – Needs high GLR (gas to liquid ratio) – Cant handle high volumes of fluid – Requires constant surveillance to adjust the shut in times, casing pressure, or after flow periods – Danger in plunger reaching to high of velocity causing surface damage

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Artificial Lift Overview  Gas Lift  Velocity lift application  A mixture of gas velocity in the tubing and a decrease in the hydrostatic weight of your tubing column results in a decrease of your bottom hole flow pressure and an increase in production.

http:// www.youtube.com/watch?v=ryvl1jgnxDs&feature=player

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Artificial Lift Overview  Gas Lift Design

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Artificial Lift Overview  Gas Lift Equipment  Compressor  Gas Lift Mandrel

Compressor: 50 psi. to 1100 psi. 33

Linn Energy – Gas Lift Review  Gas Lift  Production Profile: – Fairly consistent gas and oil production based upon injection rate and casing pressure (casing pressure is important to monitor)

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Artificial Lift Overview  Gas lift  Advantages: – Inexpensive – Handles high volumes of fluid – Handles solids – Deviated wells – No obstruction for wire line – Small footprint

 Disadvantages: – Higher operating cost – Supply gas required – Cannot produce to abandonment – Difficult to lift viscous fluids – Not as efficient as other artificial lift applications

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Artificial Lift Overview  Electric Submersible Pump (ESP)  Mechanical lift application  Centrifugal pump  Down hole electric pump supplies lift force to push fluid to the surface

http://wn.com/electrical_submersible_pump#/videos 36

Artificial Lift Overview  ESP Design

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Artificial Lift Overview  ESP Internal Framework  Centrifugal pump – similar to a inboard boat/jet ski motor and impeller

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Artificial Lift Overview  ESP  Production Profile: – Consistent oil and water production – Gas production (if there is any) is dependent on the unloading of the annular space 1000

25

900 800

20

700 600

Water Production (bbls/day)

15

500

Oil Production (bbls/day)

400

10

300 200

5

100 0 1/1/2015

1/21/2015

2/10/2015

3/2/2015

3/22/2015

0

Date 39

Artificial Lift Overview  ESP  Advantages: – Large fluid volumes (60,000 bbl/d in shallow wells) – Small footprint – Works in deviated wells – Simple daily operations

 Disadvantages: – Must have electricity on location – Solids – Gas Interference – Expensive to change application – High initial capital cost – Cables on tubing – Depth limitations

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Artificial Lift Overview  Advantages

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Artificial Lift Overview  Disadvantages

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Completions Overview  Production Engineer Roles in Completions:  Flowback design – Flowback iron, manifolds, sand separator, flowback tanks, etc…

 Facilities design – Separator sizing, flow pipe sizing, tank size and quantity, etc…

 Choke management: – Choke size selection: determining the rate and pressure of flowback – From experience choking the well is a good thing

 Selection of tubing design using IPR curves and Nodal Analysis – From experience if you are between size always go with the smaller size (longer life application)

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Production Engineering Overview Presentation Outline:  Well Life Cycle  Production Engineering Roles  Production Engineering Duties  Goals of a Production Engineer  Capital Investment Programs – Artificial Lift, Completions, Recompletions, Infrastructure

 Expense (Maintenance Capital) Programs – Well maintenance, optimization, chemical, enhanced recovery

 Workover Operations

Production Engineering Roles

Expense (Maintenance Capital) Program • Expense (LOE) Program Details •

Well maintenance and repairs (wellbore intervention): •

Downhole failures: tubing leak, rod part, downhole pump failure, downhole plugs, stuck plungers, failed gas lift valves, ESP cable shorts, etc…

• Expense Program Goals •

Decrease costs: •

•

Run economic sensitivities to determine if the expense capital is worth expenditure on wells

Optimization: • • • • • •

Increase efficiencies for artificial lift systems (operating at optimum) Review of chemical effectiveness and cost Ensure that the surface facilities are optimized and there are no pressure restrictions Review and evaluate methods for automation (POC’s, SCADA, etc…) Evaluate the cost and effectiveness of slickline and swab activities Always trying to enhance the recovery of hydrocarbons from the wells/reservoirs 45

Production Engineering Overview Presentation Outline:  Well Life Cycle  Production Engineering Roles  Production Engineering Duties  Goals of a Production Engineer  Capital Investment Programs – Artificial Lift, Completions, Recompletions, Infrastructure

 Expense (Maintenance Capital) Programs – Well maintenance, optimization, chemical, enhanced recovery

 Workover Operations

Production Engineering Roles

Workover Operations • Workover Rig: •

400 to 500 HP

•

Running tubing

•

Running rods and pump

•

Drilling out plugs

•

Repair casing leaks

•

Any remediation work to a well

Derrick

Finger Boards

Traveling Blocks Engine

Pipe Racks 47

Production Engineering Roles

Workover Operations • Slickline Unit: •

Installing plunger lift equipment

•

TD check

•

Flowing gradient

•

Fish lost tools

•

Broach the tubing

•

Perforating

•

Logging

Slickline Lubricator

Wellhead

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Production Engineering Roles

Workover Operations • Swabbing Unit: •

The swabbing unit is used to remove fluids from the tubing of a well

•

Swab cups

Swab Line

Lubricator

Wellhead 49

LINN Energy’s mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets.

Questions?