2008 Modeling and optimizing the offshore production of oil and gas under uncertainty: Presentation...

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    Modeling and optimizing theoffshore production of oil and gasunder uncertainty

    Steinar M. Elgster - October 14, 2008

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    Thesis introduction

    supervised by Professor Tor Arne Johansen (NTNU)and Dr.Ing Olav Slupphaug (ABB),

    funded by ABB, Norsk Hydro (later StatoilHydro) andthe Norwegian Research Council,

    work conducted in the period 2005-2008,

    three conference papers presented,

    two journal papers submitted, one patent application submitted.

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    slow dynamics on the timescalesof months and years

    fast dynamics on the timescalesof hours and days

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    production

    disturbance

    decision variables

    measured output:profits and capacities

    production optimization timescale:hours and days

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    Model-based productionoptimization

    Production

    DisturbancesDecisionVariables(valves)

    Measured output(Profits and capacityutilization)

    Production constraints(capacities) and object function(profit measure)

    Productionoptimization

    Production Model

    Model parameters:

    Watercut,GOR,well potential etc.

    current practice: an engineering approach to modelingdetailed physical modelsemprical relations for closurecommerical simulators

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    Challenges of current practice

    1. challenging production modeling complexity of systems considered

    multiphase flow

    measurement difficulties (such as multiphase flow meters)

    disturbances (reservoir depletion)

    2. model updating (high update frequency, laborious)

    3. numerical and optimization issuses (numerical

    stability,identifiability,convexity,run-time)

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    Part I: A data-driven approachto production modeling andmodel updating

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    production datacontainsinformation thatcan be exploitedin optimization

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    A data-driven approach to production modelingand model updating

    Production

    disturbancesdecisionvariables

    (valves)

    measured output(Profits and capacity

    utilization)

    Parameter andstate

    estimation

    fitted

    parameters andstates

    Productionmodel

    -

    Difference (residual)

    model parameters

    Production constraints(capacities) and object function(profit measure)

    Production optimization

    Production Model

    A closed loop

    modeledoutput

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    Challenge

    data describing normaloperations are usually not

    sufficiently informative,models fitted to data aresubject to parameteruncertainty

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    Part II: Methods foruncertainty analysis and

    uncertainty handling

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    Quantifying

    uncertainty bootstrapping

    multiple-model

    computational

    based on data-setresampling

    models locally valid

    simple performance

    curves

    motivated by conceptsof system identification

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    realizedpotential

    Uncertaintydue to lowinformationcontent in data

    max

    current

    ?

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    Experiments

    Optimization

    Eliminating uncertainty is not apractical option

    Cost

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    An approach for structured

    uncertainty handlingmy thesis proposes a five-element strategy for

    optimization with uncertain models

    1. result analysis

    2. excitation planning

    3. active decision variables

    4. operational strategy

    5. iterative implementation and model updating

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    1.Result analysis

    realizedpotential

    uncertainty

    due to lowinformationcontent in data

    max

    current1

    Different simulated plausible outcomes

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    1

    2. Excitationplanning

    realizedpotential

    uncertainty

    due to lowinformationcontent in data

    current2Experiment

    Cost

    Simulated plausible outcomesof optimization without exictation

    Simulated outcome of excitation

    Simulated plausible outcomesof optimization with exictation

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    3. Active decision variables

    realizedpotential

    uncertaintydue to lowinformationcontent in data

    current1

    Simulated change in all decision variablesSimulated change in active decision variables

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    4. Operational strategy

    When models are uncertain,a target setpoint can beinfeasble when implemented

    An opertational strategy isan iterative implementationof setpoint change whilemonitoring profits and

    constraints

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    4. Operational strategy...

    Production

    DecisionVariables

    Measured

    output

    Parameter andstate

    estimation

    Fitted parametersand states

    Production

    optimization

    Operational

    strategy

    Target

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    realizedpotential

    uncertaintydue to lowinformationcontent in data

    max

    current

    1

    2

    3

    5.Iterative implementation andmodel updating

    4

    optimize

    update modeland re-optimizeupdate model

    and re-optimize

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    Perform excitation

    planning

    Perform productionoptimization

    Optionally: selectactive decision

    variables

    Implement setpoint

    change suggested

    by production

    optimizationaccording to

    operational strategy

    Is the cost/benefittradeoff of any

    planned excitationfavorable?

    Implement

    plannedexcitation

    Yes

    Update model:

    Estimate parametersand parameter

    uncertainty

    Is result analysisfavorable?

    No

    Yes

    Wait until new databecomes avialable

    No

    Perform result

    analysis

    Combined the elements providea framework for optimizing oil

    and gas production withuncertain models

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    Results

    Methods applied to two sets of real-world productiondata from North Sea oil fields

    Simulations indicate:

    promising active decision variable candidates found in simulations 30-80% of potential profits were realized using

    uncertain models in combination with the suggested framework

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    Results: Active decision

    variables(1)

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    Results: Active decision

    variables(2)

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    Discussion and Conclusions

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    I. Data-driven modeling and

    model updating adresses weaknesses of current practice:

    models easy to design

    models updated with less effort this may increase frequency at which production optmization can run

    models are less prone to issues of convexity, numerical stability,identifiability and computational effort.

    models especially well suited for iterative optimization (eachiteration reveals information)

    challenge requires measurement maintenance and may be prone to issues of

    low information content in data

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    II. Framework for optimizingproduction with uncertain

    models a method that can exploit current real-world data

    as a starting point

    iterative approach ideal for combination with low-maintenace data-driven models

    analog to the current approach but: decision support based on objective analysis at every

    step of decision-making process

    relationship between current manner ofoperation, uncertainty and productionoptimization is made explicit

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    Further work

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    A low-hanging fruit for

    practicioners perform a proof of concept experiment

    implement setpoint change according to active decision variablesmethod

    an experiment that will be profitable with high confidence

    validates the control approach of this thesis

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    Thank you for your attention