Reserves, Non Producing

Test Your Knowledge

Quiz: Reserves, Non-Producing

Instructions: Choose the best answer for each question.

1. Which of the following is NOT a subcategory of "Reserves, Non-Producing"?

a) Shut-in Reserves b) Proven Reserves c) Behind-Pipe Reserves d) Completion Intervals

2. What is the primary reason for shutting in a well due to "Market Conditions"?

a) Equipment failure b) Low oil prices c) Lack of pipeline infrastructure d) All of the above

3. What is the significance of "Behind-Pipe Reserves"?

a) They are already producing and contribute to current production. b) They represent untapped potential that can be accessed with additional investment. c) They are difficult to access and have no commercial value. d) They are used for environmental monitoring purposes.

4. What is a key benefit of having "Reserves, Non-Producing" in an oil and gas field?

a) They ensure consistent production regardless of market fluctuations. b) They eliminate the need for additional investment in field development. c) They provide flexibility to adjust production levels based on market conditions. d) They reduce environmental impact by limiting production.

5. Which of the following is NOT a factor to consider when developing "Reserves, Non-Producing"?

a) Environmental impact b) Oil prices and production costs c) Market demand for oil and gas d) Technological advancements in drilling techniques

Exercise: Analyzing Non-Producing Reserves

Scenario: An oil and gas company has a field with 100 million barrels of proven reserves. Currently, 50 million barrels are being produced, leaving 50 million barrels as "Reserves, Non-Producing." 30 million barrels are shut-in due to market conditions, and 20 million barrels are behind-pipe reserves.

Task:

1. Calculate the percentage of "Reserves, Non-Producing" in relation to the total proven reserves.
2. Identify the potential benefits of bringing the shut-in reserves online in the future.
3. Discuss the potential challenges associated with developing the behind-pipe reserves.

Exercise Correction:

Techniques

Chapter 1: Techniques for Assessing and Developing Non-Producing Reserves

This chapter focuses on the practical techniques employed to identify, evaluate, and subsequently develop non-producing reserves in oil and gas fields. These techniques span various disciplines, from geological interpretation to reservoir engineering and drilling technology.

1.1 Identifying Non-Producing Reserves:

• Seismic Surveys: Advanced seismic imaging techniques, such as 3D and 4D seismic, help identify potential behind-pipe reserves by providing detailed subsurface images of reservoir structures and fluid distribution. 4D seismic, in particular, monitors changes in reservoir pressure and saturation over time, indicating areas with untapped potential.
• Well Logging: Detailed analysis of well logs, including gamma ray, resistivity, and neutron porosity logs, provides crucial information about reservoir properties and the presence of hydrocarbons in existing wells, aiding in the identification of behind-pipe reserves.
• Reservoir Simulation: Sophisticated reservoir simulation models are used to predict the performance of different development scenarios, including the development of behind-pipe reserves. These models consider factors like reservoir geometry, fluid properties, and well placement.

1.2 Evaluating the Economic Viability of Development:

• Production Forecasting: Accurately predicting future oil and gas production from non-producing reserves is critical for economic evaluation. This involves using reservoir simulation models, along with estimations of operating costs, and future oil and gas prices.
• Cost Estimation: Detailed cost estimations are essential, encompassing drilling costs, completion costs, equipment, and infrastructure upgrades needed to access behind-pipe reserves or bring shut-in wells back online. This includes assessing the potential need for enhanced oil recovery (EOR) techniques.
• Sensitivity Analysis: Conducting a sensitivity analysis helps assess the impact of various factors (e.g., oil price fluctuations, operating costs) on the overall profitability of developing non-producing reserves.

1.3 Developing Non-Producing Reserves:

• Horizontal and Multilateral Drilling: These advanced drilling techniques are crucial for accessing behind-pipe reserves efficiently, maximizing contact with the reservoir and improving recovery rates.
• Enhanced Oil Recovery (EOR): Techniques like waterflooding, polymer flooding, and gas injection can improve the recovery factor of existing reservoirs, making previously uneconomical behind-pipe reserves commercially viable.
• Well Intervention: For shut-in reserves due to mechanical issues, well intervention techniques such as coiled tubing operations or wireline logging can be used to diagnose and rectify problems, allowing for the resumption of production.

Chapter 2: Models for Non-Producing Reserves Quantification and Management

This chapter explores the various models used to quantify and manage non-producing reserves, emphasizing the importance of robust data and accurate predictions.

2.1 Volumetric Models: These models estimate reserves based on geological data, including reservoir geometry, porosity, and hydrocarbon saturation. They are commonly used for initial estimates of behind-pipe reserves, but require careful consideration of uncertainties.

2.2 Material Balance Models: These models track the changes in reservoir pressure and fluid volumes over time to estimate the remaining reserves. They are particularly useful for monitoring the performance of existing wells and predicting the potential production from behind-pipe reserves once developed.

2.3 Decline Curve Analysis: This technique uses historical production data to predict future production rates. While primarily used for producing reserves, it can be adapted to estimate the potential production from shut-in wells once brought back online.

2.4 Reservoir Simulation Models: These sophisticated models integrate geological, petrophysical, and engineering data to simulate the behavior of a reservoir under various development scenarios. They are crucial for evaluating the potential of behind-pipe reserves and optimizing development plans.

Chapter 3: Software Applications for Non-Producing Reserves Management

This chapter reviews the software commonly used in the oil and gas industry for managing non-producing reserves. These tools are essential for data analysis, reservoir modeling, and economic evaluation.

3.1 Reservoir Simulation Software: Packages like Eclipse (Schlumberger), CMG (Computer Modelling Group), and INTERSECT (Roxar) are industry-standard tools used for simulating reservoir performance and evaluating different development strategies for non-producing reserves. These softwares allow for complex modelling considering factors like fluid flow, pressure changes, and well performance.

3.2 Data Management and Visualization Software: Software like Petrel (Schlumberger) and Kingdom (IHS Markit) provides platforms for managing large datasets, visualizing geological models, and integrating data from various sources. This is critical for analyzing seismic data, well logs, and production history to assess non-producing reserves.

3.3 Economic Evaluation Software: Specialized software packages are used to perform economic evaluations of various development scenarios, considering factors like capital costs, operating costs, and future oil and gas prices. These tools help determine the economic viability of developing non-producing reserves.

3.4 Specialized Plugins and Add-ons: Various plugins and add-ons enhance the capabilities of the base software packages, providing specialized functionalities for specific tasks, such as automated interpretation of seismic data or optimization of well placement for behind-pipe reserve development.

Chapter 4: Best Practices for Non-Producing Reserves Management

This chapter outlines best practices for effective management of non-producing reserves, emphasizing integrated approaches and proactive strategies.

4.1 Data Integration and Quality Control: Maintaining accurate and consistent data is crucial. This includes rigorous quality control procedures for all data sources (seismic, well logs, production data) to ensure reliable reservoir models and economic evaluations.

4.2 Integrated Reservoir Management: An integrated approach that considers geological, engineering, and economic factors is essential for optimal decision-making. This involves close collaboration between geologists, reservoir engineers, and economists.

4.3 Risk Management: Thorough risk assessment is vital, considering uncertainties associated with geological data, reservoir performance, and market conditions. This involves identifying potential risks and developing mitigation strategies.

4.4 Regulatory Compliance: All activities related to the development of non-producing reserves must comply with relevant environmental regulations and safety standards.

4.5 Technology Adoption: Embracing advanced technologies, such as advanced seismic imaging, horizontal drilling, and EOR techniques, can significantly improve the efficiency and effectiveness of developing non-producing reserves.

Chapter 5: Case Studies of Non-Producing Reserves Development

This chapter presents real-world case studies illustrating the successful development of non-producing reserves, highlighting the techniques and strategies employed. Specific examples will be provided showcasing successful implementation of different methods and the challenges overcome. (Note: Specific case studies would require detailed research and access to proprietary information. Placeholders for case studies are provided below).

5.1 Case Study 1: [Company Name] – [Field Name]: This case study will detail the successful development of behind-pipe reserves using horizontal drilling and EOR techniques. The challenges faced, solutions implemented, and overall economic benefits will be highlighted.

5.2 Case Study 2: [Company Name] – [Field Name]: This case study will focus on the reactivation of shut-in wells due to mechanical issues. The diagnostic process, repair methods, and resulting increase in production will be analyzed.

5.3 Case Study 3: [Company Name] – [Field Name]: This case study will examine the strategic decision-making process involved in prioritizing the development of non-producing reserves based on economic and operational factors. The approach taken and resulting outcomes will be discussed.

These chapters provide a comprehensive overview of the complexities involved in managing non-producing reserves in the oil and gas industry. The integration of advanced techniques, robust models, and sophisticated software, coupled with best practices, is crucial for maximizing the economic potential and ensuring sustainable operations.