Reserves and reservoir
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Transcript of Reserves and reservoir
RESOURCES AND RESERVES
© 2012 INSTITUTE OF TECHNOLOGY PETRONAS SDN BHDAll rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner.
Presentation Contents
• Reservoir Engineering– Primary functions– Applications
• Resources– Key Elements– Discovered Vs. Undiscovered
• Reserves– Classification– Development and Production status– Levels of uncertainty– Estimation
Reservoir
RESERVOIR ROCK
• A substance body of rock having sufficient porosity and permeability to store and transmit fluids .
RESERVOIR ENGINEERING
• The phase of engineering which deals with the transfer of fluids to, from or through the reservoirs
• It is located at the heart of many of the activities acting as a central coordinating role.
THE PRIMARY FUNCTIONS OF A RESERVOIR ENGINEER
The estimation of hydrocarbons in place
The calculation of a recovery factor
The attachment of a time scale to the recovery
GOAL OF RESERVOIR ENGINEERING.
Set up development project
Optimize hydrocarbons recovery
Study on production forecasting
CALCULATION OF HYDROCARBON VOLUMES
• Initially filled with liquid oil.• The oil volume in the reservoir (oil in place) is:
OIP = Vφ (1− Swc )(res.vol.)
• V = the net bulk volume of the reservoir rock• φ = the porosity, or volume fraction of the rock which is porous• Swc = the connate or irreducible water saturation and is expressed
as afraction of the pore volume.
THE STOCK TANK OIL INITIALLY IN PLACE
• To express oil volumes at stock tank (surface) conditions:
STOIIP = n = Vφ (1− Swc ) /Boi
• Boi is the oil formation volume factor, reservoir barrels/stock tank barrel (rb/stb).
RESERVOIR ENGINEERING APPLICATION
Determine HC in place
• Volumetric Method
• Material balance
Determine Reserves
• Primary Recovery Phase
• Supplemental Recovery Phase
Determine Rates
• Number of wells
• Well potential
RESERVOIR ENGINEERING APPLICATION
• Determine HC in place
Volumetric Method Area Thickness Porosity Saturation
Material balance
Production Data Fluid Properties
Fig(1) Anticline Petroleum Trap
RESERVOIR ENGINEERING APPLICATION
• Determine Reserves Primary Recovery
Gas cap drive Water drive Gravity drainage Combination
Supplementary Recovery Phase
Secondary Recovery EOR
• Determine Rates
Number of wells Well potential
Fig (2) CO2 Injection
Resources
Total quantity of discovered and undiscovered
petroleum at a specific date in a given area.
GENERAL DEFINITION OF RESOURCES
Total Petroleum Initially In Place (TPIIP Total Resources)
Undiscovered PIIPDiscovered PIIP
Recoverable• Production • Reserves • Contingent resources
Unrecoverable
Recoverable• Prospective recourses
Unrecoverable
KEY ELEMENTS OF RESOURCES
• quantity of petroleum that is estimated to exist originally in naturally occurring accumulations
• Discovered or yet to be discovered (equivalent to “total resources”)
TOTAL PETROLEUM INITIALLY-IN-PLACE (TPIIP)
DISCOVERED (PIIP)
The total estimated in place quantities of petroleum at a specific date to be contained in known accumulations, plus those quantities already produced from there
UNDISCOVERED (PIIP)
Quantity of petroleum that is estimated, as of a given
date, to be contained in known accumulations yet to
be discovered
DISCOVERED VS UNDISCOVERED PIIP
DISCOVERED RESOURCES
PRODUCTION
Cumulative quantity of petroleum that has been recovered up to a given date
RESERVES = ?
CONTINGENT RESOURCES
To be potentially recoverable from known accumulations, but the applied projects are not yet considered mature enough for commercial development due to one or more contingencies
UNDISCOVERED
PROSPECTIVE RESOURCESQuantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development.
Reserves
Reserves
Reserves
Classification
Proved Reserves
Probable Reserves
Possible Reserves
Development and production status
Developed Reserves
Producing Non-producing
Undeveloped Reserves
Levels of uncertainty
General Classification Requirements
DEFINITION OF RESERVESGENERAL OVERVIEW OF RESERVES
DEFINITION OF RESERVES
Quantities of petroleum
Anticipated to be COMMERCIALLY
RECOVERED
from KNOWN ACCUMULATIONS
(already discovered).
from a given date forward (excluding
previously produced amounts)
CONDITION FOR TO BE CALLED RESERVES
Oil and gas must be physically and economically producible
Since reservoir is not produced and is inaccessible, reserves cannot be measured, they can only be estimated
Since reserves are remaining, there is a time line associated with each reserve estimated
RESERVES ESTIMATION
• Analysis of drilling, geological, geophysical, and engineering data
• The use of established technology• Specified economic conditions, which are generally accepted
as being reasonable, and shall be disclosed
RESERVES CATEGORY
Reserves are classified according to the degree of certainty associated with the estimates.
POSIBBLE
PROBABLE
PROVED
RESERVES CATEGORY
PROVED RESERVES
• Reserves estimated with a high degree of certainty to be recoverable• Likely situation : Actual remaining quantity > estimated proved results
PROBABLE RESERVES
• Additional reserves that are less certain to be recovered than proved reserves• sum of estimated proved + probable reserves<Actual remaining quantity<sum
of estimated proved + probable reserves
POSSIBLE RESERVES
• Less certain to be recovered• Likely situation : Actual remaining quantity <sum of estimated proved
reserves+ probable reserves + Possible reserves
FURTHER CLASSIFICATION
Each of the reserves categories (proved, probable, and possible) may be further divided into developed and undeveloped categories.
DEVELOPED• expected to be recovered from
existing wells and installed facilities• Or if facilities have not been
installed, that would involve a low expenditure to put on production
RESERVESUNDEVELOPEDexpected to be recovered from known accumulations where a significant expenditure is required to render them capable of production.
DEVELOPED PRODUCING• expected to be recovered from
completion intervals open at the time of the estimate (Currently producing)
• If well is shut in, the date of resumption of production is known
DEVELOPED NON-PRODUCING• Is not put on production yet• produced before, but currently shut
in (date of resumption of production is unknown
LEVELS OF CERTAINTY IN REPORTED RESERVES
Reported reserves should target the following levels of certainty under a specific set of economic conditions:
POSIBBLE
PROBABLE
PROVED
Actual remaining reserves
LEVELS OF CERTAINTY IN REPORTED RESERVES
At least a 90 percent probability that the quantities actually recovered will equal or exceed the estimated proved reserves
POSIBBLE
PROBABLE
PROVED
Quantities actually
recovered
At least 90 percent probability
LEVELS OF CERTAINTY IN REPORTED RESERVES
At least a 50 percent probability that the quantities actually recovered will equal or exceed the sum of the estimated proved + probable reserves,
POSIBBLE
PROBABLE
PROVED
Quantities actually
recovered
At least 50 percent probability
LEVELS OF CERTAINTY IN REPORTED RESERVES
At least a 10 percent probability that the quantities actually recovered will equal or exceed the sum of the estimated proved + probable + possible reserves.
POSIBBLE
PROBABLE
PROVED
Quantities actually
recovered
At least 10 percent probability
RESERVE ESTIMATION – RECOVERY FACTOR
We can never recover 100% oil and gas reserves at any given reservoir
How much hydrocarbons can be recovered and the recovery factor are dependent on: Properties of the reservoir rock and its variation
throughout the reservoir Properties of hydrocarbons Properties of the displacing substance Shape and extent of the reservoir
RESERVE ESTIMATION – RECOVERY FACTOR
• Ultimate Recovery (UR) - the sum of the proven reserves at a specific time and the cumulative production up to that time
UR = HCIIP x Recovery Factor (RF)
Reserves = UR – Cumulative Production
WORLDWIDE END-OF-YEAR PROVED OIL RESERVES
PROVEN OIL RESERVES DISTRIBUTION
RELATION BETWEEN RESOURCES AND RESERVES
RISKS RELATED TO RESOURCES
What is ‘Chance of commerciality’? The likelihood that a project will achieve commerciality
Reserves: To be classified as reserves, estimated recoverable quantities must be associated with a project(s) that has demonstrated commercial viability.
CHANCE OF COMMERCIALITY
Contingent Resources: Not all technically feasible development plans will be commercial. The commercial viability of a development project is dependent on the forecast of fiscal conditions over the life of the project.
CHANCE OF DISCOVERY
Prospective Resources: The chance that an exploration project will result in the discovery of petroleum is referred to as the “chance of discovery.”
Chance of commerciality = chance of discovery x chance of development
RECOURCES CLASSIFICATION FRAMEWORK
Current Resources
General requirements for classification of reservoirs
Classification Requirements
Ownership
Drilling
Testing
RegulatoryInfrastructure
and market conditions
Timing of production
and development
Economic requirements
Procedure for reserve estimation
Volumetric Method Material Balance
Production Decline Analysis
Future Drilling and Planned Enhanced Recovery Projects
Volumetric Method
• Early stage of reservoir development• Geology, Geophysics, Rock and Fluid properties• Recovery Factor (RF) assigned arbitrarily• No time dependency, No Production data
Material Balance
• Involve the analysis of pressure behavior as reservoir fluids are withdrawn
• A = Increase in HCPV due to the expansion of the oil phase (oil + dissolved gas).• B = Increase in HCPV due to the expansion of the gas phase (free gas in the gas cap).• C = decrease in HCPV due to the combined effects of the expansion of the connate water and the reduction in reservoir pore volume.• D = decrease in HCPV due to water encroachment (from aquifer)
Underground withdrawal(oil + gas + water) = Expansion of oil + dissolved gas (A)+ Expansion of gas-cap gas (B)+ Reduction in HCPV (C)+ Cumulative water influx (D)
Production Decline Analysis
• Involves the analysis of production behavior as reservoir fluids are withdrawn.
• Later stage of development, when production rate undergoes natural decline.
• Mostly Production data• Time dependent
Future Drilling and Planned Enhanced Recovery Projects
Additional Reserves Related to Future Drillingfactors to be considered in classifying reserves estimates associated with future drilling as proved, probable, or possible:• whether the proposed location directly offsets existing wells or acreage with proved or
probable reserves assigned,• the expected degree of geological continuity within the reservoir unit containing the reserves,• the likelihood that the location will be drilled.
Reserves Related to Planned Enhanced Recovery Projectsfactors to be considered in classifying reserves estimates associated with future drilling as proved, probable, or possible:• Repeated commercial success of the enhanced recovery process has been demonstrated in
reservoirs in the area with analogous rock and fluid properties.• The project is highly likely to be carried out in the near future. This may be demonstrated by
factors such as the commitment of project funding.• Where required, either regulatory approvals have been obtained or no regulatory impediments
are expected, as clearly demonstrated by the approval of analogous projects.
Validation of reserves estimates
Through periodic reserves reconciliation of both entity and aggregate estimates. The tests described below should be applied to the same entities or groups of entities over time, excluding revisions due to differing economic assumptions:
• Revisions to proved reserves estimates should generally be positive as new information becomes available.
• Revisions to proved + probable reserves estimates should generally be neutral as new information becomes available.
• Revisions to proved + probable + possible reserves estimates should generally be negative as new information becomes available.
THANK YOU© 2013 INSTITUTE OF TECHNOLOGY PETRONAS SDN BHDAll rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner.