Economic Optimization of Horizontal-Well Completions in Unconventional Reservoirs
- Robert D. Barree (Barree & Associates) | Stuart A. Cox (PetroEdge Energy III LLC) | Jennifer L. Miskimins (Barree & Associates) | John V. Gilbert (Barree & Associates) | Michael W, Conway (Core Laboratories)
- Document ID
- Society of Petroleum Engineers
- SPE Production & Operations
- Publication Date
- November 2015
- Document Type
- Journal Paper
- 293 - 311
- 2015.Society of Petroleum Engineers
- Production forecasting, Design optimization, Horizontal wells, Hydraulic fracturing
- 20 in the last 30 days
- 1,655 since 2007
- Show more detail
- View rights & permissions
|SPE Member Price:||USD 12.00|
|SPE Non-Member Price:||USD 35.00|
Extrapolation of conventional paradigms to unconventional reservoirs can lead to disappointment and poor performance. Careful analysis of the reservoir and application of the correct stimulation design are critical when dealing with marginally economic developments. This approach includes adequate characterization of the reservoir and an understanding of the factors that control flow capacity and deliverability.
One of the biggest practical problems with unconventional-stimulation-design optimization is estimating post-fracture rate, production decline, and ultimate recovery. Without a realistic prediction of the decline resulting from a given completion, it is impossible to assign value to one design over another and equally impossible to optimize the treatment for whichever goal is sought, either acceleration of recovery or increase in reserves.
It is often the first--inadequate reservoir characterization--that leads to the second--unrealistic post-treatment predictions. For instance, assuming core-derived permeability fully represents the reservoir’s total flow capacity or that stimulated reservoir volumes represent the effective producing volumes, can lead to incorrect diagnosis of the reservoir capability and, consequently, can lead to an inefficient treatment design.
This paper presents methods for production forecasting that give reasonable post-treatment predictions that have been found useful for economic planning. The proposed methodology, backed by field observations and laboratory work, provides an economically viable plan for optimizing lateral length, fracture spacing, and treatment design. The methodology focuses on the post-stimulation effective reservoir volume. Results show that increasing apparent fracture length rarely impacts long-term recovery. Likewise, adding more fractures within the same reservoir volume may increase early-time production rate (initial production) and decline rate, without contacting more reservoir volume or adding to long-term recovery. Such practices lead to acceleration of reserves recovery, which has economic value and should be considered in the design process, but does not increase ultimate recovery of the well once a sufficient number of contributing fractures are in place. The economically preferred completion designs may be more driven by the net present value derived in the first 5 years of production rather than the ultimate recovery of the well. This early 5-year period represents most of the useful economic life of the well, can be estimated more accurately from early performance, and is a good benchmark for completion optimization.
|File Size||1 MB||Number of Pages||19|
Anderson, D.M., Nobakht, M., Moghadam, S. et al. 2010. Analysis of Production Data from Fractured Shale Gas Wells. Presented at the SPE Unconventional Gas Conference, Pittsburgh, Pennsylvania, 23–25 February. SPE-131787-MS. http://dx.doi.org/10.2118/131787-MS.
Arévalo-Villagrán, J.A., Wattenbarger, R.A., and Samaneigo-Verduzco, F. 2006. Some History Cases of Long-Term Linear Flow in Tight Gas Wells. J. Can. Pet. Technol 45 (3): 31–37. PETSOC-06-03-01. http://dx.doi.org/10.2118/06-03-01.
Arévalo-Villagrán, J.A., Wattenbarger, R.A., Samaniego-Verduzco, F. et al. 2001. Some History Cases of Long-Term Linear Flow in Tight Gas Wells. Presented at the Canadian International Petroleum Conference, Calgary, 12–14 June. PETSOC-2001-015. http://dx.doi.org/10.2118/2001-015.
Arps, J.J., 1956. Estimation of Primary Oil Reserves. In Transactions of the American Institute of Mining, Metallurgical, and Petroleum Engineers, Vol. 207, pp. 182–191. New York: AIME Petroleum Branch. SPE-627-G. https://www.onepetro.org/general/SPE-627-G.
Barree, R.D. 2004. Verification of Production Forecasting with Eclipse. Stim-Lab Proppant Consortium Report 1.6, Mesa, Arizona, February (unpublished industry consortium report).
Barree, R.D., Barree, V.L., and Craig, D.P. 2009. Holistic Fracture Diagnostics. SPE Prod & Oper 24 (3): 396–406. SPE-107877-PA. http://dx.doi.org/10.2118/107877-PA.
Barree, R.D. and Conway, M.W. 2001. Proppant Holdup, Bridging, and Screenout Behavior in Naturally Fractured Reservoirs. Presented at the SPE Production and Operations Symposium, Oklahoma City, Oklahoma, 24–27 March. SPE-67298-MS. http://dx.doi.org/10.2118/67298-MS.
Barree, R.D. and Conway, M.W. 2009. Multiphase Non-Darcy Flow in Proppant Packs. SPE Prod & Oper 24 (2): 257–268. SPE-109561-PA. http://dx.doi.org/10.2118/109561-PA.
Barree, R.D., Cox, S.A., Barree, V.L. et al. 2003. Realistic Assessment of Proppant Pack Conductivity for Material Selection. Presented at the SPE Annual Technical Conference and Exhibition, Denver, 5–8 October. SPE-84306-MS. http://dx.doi.org/10.2118/84306-MS.
Barree, R.D., Cox, S.A., Gilbert, J.V. et al. 2005. Closing the Gap: Fracture Half Length from Design, Buildup, and Production Analysis. SPE Prod & Oper 20 (4): 274–285. SPE-84491-PA. http://dx.doi.org/10.2118/84491-PA.
Cox, S.A., Gilbert, J.V. Sutton, R.P. et al. 2002. Reserve Analysis for Tight Gas. Presented at the SPE Eastern Regional Meeting, Lexington, Kentucky, 23–26 October. SPE-78695-MS. http://dx.doi.org/10.2118/78695-MS.
Cox, S.A., Stoltz, R.P, Wilson, A.S. et al. 2003. Reserve Analysis for Multilayered Tight Gas Reservoirs. Presented at the SPE Eastern Regional Meeting, Pittsburgh, Pennsylvania, 6–10 September. SPE-84814-MS. http://dx.doi.org/10.2118/84814-MS.
Craft, B.C. and Hawkins, M.F. 1959. Applied Petroleum Reservoir Engineering, p283. Upper Saddle River, New Jersey: Prentice-Hall, Inc.
Fetkovich, M.J. 1973. Decline Curve Analysis Using Type Curves. Presented at the 48th Annual Fall Meeting of the Society of Petroleum Engineers of AIME, Las Vegas, Nevada, 20 September–3 October.
Fetkovich, M.J. 1980. Decline Curve Analysis Using Type Curves. J Pet Technol 32 (06): 1065–1077. SPE-4629-PA. http://dx.doi.org/10.2118/4629-PA.
Gilbert, J.V. and Barree, R.D. 2009. Production Analysis of Multiply Fractured Horizontal Wells. Presented at the SPE Rocky Mountain Petroleum Technology Conference, Denver, Colorado, 14–16 April. SPE-123342-MS. http://dx.doi.org/10.2118/123342-MS.
Ibrahim, M. and Wattenbarger, R.A. 2006. Analysis of Rate Dependence in Transient Linear Flow in Tight Gas Wells. Presented at the 2006 Abu Dhabi International Petroleum Exhibition and Conference, Abu Dhabi, 5–8 November. SPE-100836-MS. http://dx.doi.org/10.2118/100836-MS.
Ilk, D., Jenkins, C.D. and Blasingame, T.A. 2011. Production Analysis in Unconventional Reservoirs – Diagnostics, Challenges, and Methodologies. Presented at the SPE North American Unconventional Gas Conference and Exhibition, The Woodlands, Texas, 14–16 June. SPE-144376-MS. http://dx.doi.org/10.2118/144376-MS.
Liang, P., Mattar, L. and Moghadam, S. 2011. Analyzing Variable Rate/Pressure Data in Transient Linear Flow in Unconventional Gas Reservoirs. Presented at the Canadian Unconventional Resources Conference, Calgary, 15–17 November. CSUG/SPE-149472-MS. http://dx.doi.org/10.2118/149472-MS.
Liu, Z., Chen, F. and Conway, M. 2012. Vertical Dewatering Model Development Issues. Stim-Lab Proppant Consortium Report 6.2, Canonsburg, PA, July (unpublished).
Mayerhofer, M.J., Lolon, E.P., Warpinski, N. et al. 2010. What is Stimulated Reservoir Volume? SPE Prod & Oper 25 (1): 89–98. SPE-119890-PA. http://dx.doi.org/10.2118/119890-PA.
Mayerhofer, M.J., Lolon, E.P., Youngblood, J.E. et al. 2006. Integration of Microseismic Fracture Mapping Results with Numerical Fracture Network Production Modeling in the Barnett Shale. Presented at the SPE Annual Technical Conference and Exhibition, San Antonio, Texas, 24–27 September. SPE-102103-MS. http://dx.doi.org/10.2118/102103-MS.
Paleontological Research Institution, Museum of the Earth. 2011. Jointing and Fracturing in the Marcellus Shale. Marcellus Shale Issue No. 5, August 2011. http://www.museumoftheearth.org/marcellusshale (accessed December 2011).
Wattenbarger, R.A., El-Banbi, A.H., Villegas, M.E. et al. 1998. Production Analysis of Linear Flow Into Fractured Tight Gas Wells. Presented at the SPE Rocky Mountain Regional/Low-Permeability Reservoirs Symposium, Denver, 5–8 April 1998. SPE-39931-MS. http://dx.doi.org/10.2118/39931-MS.