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38
Chapter 40 Estimation of Oil and Gas Reserves Forrest A. Garb, SPE, H.J. Grt~y & Assocs. Inc.* Gerry L. Smith ,** H.J. Gruy 6i Asaoca. Inc. Estimating Reserves General Discussion Management’s decisions are dictated by the anticipated results from an investment. In the case of oil and gas, the petroleum engineer compares the estimated costs in terms of dollars for some investment opportunity vs. the cash flow resulting from production of barrels of oil or cubic feet of gas. This analysis may be used in formulat- ing policies for (1) exploring and developing oil and gas properties; (2) designing and constructing plants, gather- ing systems, and other surface facilities; (3) determining the division of ownership in unitized projects; (4) deter- mining the fair market value of a property to be bought or sold: (5) determining the collateral value of producing properties for loans; (6) establishing sales contracts, rates, and prices; and (7) obtaining Security and Exchange Com- mission (SEC) or other regulatory body approvals. Reserve estimates are just what they are called- estimates. As with any estimate, they can be no better than the available data on which they are based and are sub- ject to the experience of the estimator. Unfortunately, reliable reserve figures are most needed during the early stages of a project, when only a minimum amount of in- formation is available. Because the information base is cumulative during the life of a property, the reservoir en- gineer has an increasing amount of data to work with as a project matures, and this increase in data not only changes the procedures for estimating reserves but, cor- respondingly, improves the confidence in the estimates. Reserves are frequently estimated (1) before drilling or any subsurface development, (2) during the development drilling of the field, (3) after some performance data are available, and (4) after performance trends are well es- tablished. Fig. 40.1 demonstrates (I) the various periods in the life of an imaginary oil property, (2) the sequence of appropriate recovery estimating methods, (3) the im- pact on the range of recovery estimates that usually re- sults as a property ages and more data become available, (4) a hypothetical production profile, and (5) the relative risk in using the recovery estimates. Time is shown on the horizontal axis. No particular units are used in this chart, and it is not drawn to any specific scale. Note that while the ultimate recovery estimates may become ac- curate at some point in the late life of a reservoir, the reserve estimate at that time may still have significant risk. During the last week of production. if one projects a reserve of 1 bbl and 2 bbl are produced, the reserve esti- mate was 100% in error. Reserve estimating methods are usually categorized into three families: analogy, volumetric, and performance techniques. The performance-technique methods usually are subdivided into simulation studies, material-balance calculations, and decline-trend analyses. The relative peri- ods of application for these techniques are shown in Fig. 40.1. ‘.2 During Period AB, before any wells are drilled on the property, any recovery estimates will be of a very general nature based on experience from similar pools or wells in the same area. Thus, reserve estimates during this period are established by analogy to other produc- tion and usually are expressed in barrels per acre. The second period, Period BC, follows after one or more wells are drilled and found productive. The well logs provide subsurface information, which allows an acreage and thickness assignment or a geologic interpre- tation of the reservoir. The acre-foot volume considered to hold hydrocarbons, the calculated oil or gas in place per acre-foot, and a recovery factor allow closer limits for the recovery estimates than were possible by analogy alone. Data included in a volumetric analysis may include well logs, core analysis data, bottomhole sample infor- mation, and subsurface mapping. Interpretation of these
Transcript
  • Chapter 40

    Estimation of Oil and Gas Reserves Forrest A. Garb, SPE, H.J. Grt~y & Assocs. Inc.* Gerry L. Smith ,** H.J. Gruy 6i Asaoca. Inc.

    Estimating Reserves General Discussion Managements decisions are dictated by the anticipated results from an investment. In the case of oil and gas, the petroleum engineer compares the estimated costs in terms of dollars for some investment opportunity vs. the cash flow resulting from production of barrels of oil or cubic feet of gas. This analysis may be used in formulat- ing policies for (1) exploring and developing oil and gas properties; (2) designing and constructing plants, gather- ing systems, and other surface facilities; (3) determining the division of ownership in unitized projects; (4) deter- mining the fair market value of a property to be bought or sold: (5) determining the collateral value of producing properties for loans; (6) establishing sales contracts, rates, and prices; and (7) obtaining Security and Exchange Com- mission (SEC) or other regulatory body approvals.

    Reserve estimates are just what they are called- estimates. As with any estimate, they can be no better than the available data on which they are based and are sub- ject to the experience of the estimator. Unfortunately, reliable reserve figures are most needed during the early stages of a project, when only a minimum amount of in- formation is available. Because the information base is cumulative during the life of a property, the reservoir en- gineer has an increasing amount of data to work with as a project matures, and this increase in data not only changes the procedures for estimating reserves but, cor- respondingly, improves the confidence in the estimates. Reserves are frequently estimated (1) before drilling or any subsurface development, (2) during the development drilling of the field, (3) after some performance data are available, and (4) after performance trends are well es- tablished. Fig. 40.1 demonstrates (I) the various periods in the life of an imaginary oil property, (2) the sequence

    of appropriate recovery estimating methods, (3) the im- pact on the range of recovery estimates that usually re- sults as a property ages and more data become available, (4) a hypothetical production profile, and (5) the relative risk in using the recovery estimates. Time is shown on the horizontal axis. No particular units are used in this chart, and it is not drawn to any specific scale. Note that while the ultimate recovery estimates may become ac- curate at some point in the late life of a reservoir, the reserve estimate at that time may still have significant risk. During the last week of production. if one projects a reserve of 1 bbl and 2 bbl are produced, the reserve esti- mate was 100% in error.

    Reserve estimating methods are usually categorized into three families: analogy, volumetric, and performance techniques. The performance-technique methods usually are subdivided into simulation studies, material-balance calculations, and decline-trend analyses. The relative peri- ods of application for these techniques are shown in Fig. 40.1. .2 During Period AB, before any wells are drilled on the property, any recovery estimates will be of a very general nature based on experience from similar pools or wells in the same area. Thus, reserve estimates during this period are established by analogy to other produc- tion and usually are expressed in barrels per acre.

    The second period, Period BC, follows after one or more wells are drilled and found productive. The well logs provide subsurface information, which allows an acreage and thickness assignment or a geologic interpre- tation of the reservoir. The acre-foot volume considered to hold hydrocarbons, the calculated oil or gas in place per acre-foot, and a recovery factor allow closer limits for the recovery estimates than were possible by analogy alone. Data included in a volumetric analysis may include well logs, core analysis data, bottomhole sample infor- mation, and subsurface mapping. Interpretation of these

  • 40-2

    Fig. 4&l-Range in estimates of ultimate recovery during life of reservoir.

    data. along with observed pressure behavior during ear- ly production periods, may also indicate the type of producing mechanism to be expected for the reservoir.

    The third period, Period CD, represents the period af- ter delineation of the reservoir. At this time, performance data usually are adequate to allow derivation of reserve estimates by use of numerical simulation model studies. Model studies can yield very useful reserve estimates for a spectrum of operating options if sufficient information is available to describe the geometry of the reservoir, any spatial distribution of the rock and fluid characteristics, and the reservoir producing mechanism. Because numer- ical simulators depend on matching history for calibra- tion to ensure that the model is representative of the actual reservoir, numerical simulation models performed in the early life of a reservoir may not be considered to have high confidence.

    During Period DE, as performance data mature, the material-balance method may be implemented to check the previous estimates of hydrocarbons initially in place. The pressure behavior studied through the material- balance calculations may also offer valuable clues regard- ing the type of production mechanism existent in the reser- voir. Confidence in the material-balance calculations

    PETROLEUM ENGINEERING HANDBOOK

    depends on the precision of the reservoir pressures record- ed for the reservoir and the engineers ability to deter- mine the true average pressure at the dates of study. Frequent pressure surveys taken with precision instru- ments have enabled good calculations after no more than 5 or 6 % of the hydrocarbons in place have been produced.

    Reserve estimates based on extrapolation of established performance trends, such as during Period DEF, are con- sidered the estimates of highest confidence.

    In reviewing the histories of reserve estimates over an extended period of time in many different fields, it seems to be a common experience that the very prolific fields (such as East Texas, Oklahoma City, Yates, or Redwater) have been generally underestimated during the early barrels-per-acre-foot period compared with their later performance, while the poorer ones (such as West Ed- mond and Spraberry) usually are overestimated during their early stages.

    It should be emphasized that, as in all estimates, the accuracy of the results cannot be expected to exceed the limitations imposed by inaccuracies in the available ba- sic data. The better and more complete the available data, the more reliable will be the end result. In cases where property values are involved, additional investment in ac- quiring good basic data during the early stages pays off later. With good basic data available, the engineer making the estimate naturally feels more sure of his results and will be less inclined to the cautious conservatism that often creeps in when many of the basic parameters are based on guesswork only. Generally, all possible approaches should be explored in making reserve estimates and all applicable methods used. In doing this, the experience and judgment of the evaluator are an intangible quality, which is of great importance.

    The probable error in the total reserves estimated by experienced engineers for a number of properties dimin- ishes rapidly as the number of individual properties in- creases. Whereas substantial differences between independent estimates made by different estimators for a single property are not uncommon, chances are that the total of such estimates for a large group of properties or an entire company will be surprisingly close.

    Petroleum Reserves-Definitions and Nomenclature3 Definitions for three generally recognized reserve categories, proved, probable, and possible, which are used to reflect degrees of uncertainty in the reserve estimates, are listed as follows. The proved reserve definition was developed by a joint committee of the SPE, American Assn. of Petroleum Geologists (AAPG), and American Petroleum Inst. (API) members and is consistent with current DOE and SEC definitions. The joint committees proved reserve definitions, support- ing discussion, and glossary of terms, are quoted as fol- lows. The probable and possible reserve definitions enjoy no such official sanction at the present time but are be- lieved to reflect current industry usage correctly.

    Proved Reserves Definitions3 The following is reprinted from the Journal of Petrole- UM Technology (Nov. 1981, Pages 2113-14) proved reserve definitions, discussion, and glossary of terms.

  • ESTIMATION OF OIL AND GAS RESERVES 40-3

    Proved Reserves. Proved reserves of crude oil, natural gas, or natural gas liquids are estimated quantities that geological and engineering data demonstrate with reasona- ble certainty to be recoverable in the future from known reservoirs under existing economic conditions.*

    Discussion. Reservoirs are considered proved if economic producibility is supported by actual production or forma- tion tests or if core analysis and/or log interpretation dem- onstrates economic producibility with reasonable certainty. The area of a reservoir considered proved in- cludes (1) that portion delineated by drilling and defined by fluid contacts, if any, and (2) the adjoining portions not yet drilled that can be reasonably judged as economi- cally productive on the basis of available geological and engineering data. In the absence of data on fluid contacts, the lowest known structural occurrence of hydrocarbons controls the lower proved limit of the reservoir. Proved reserves are estimates of hydrocarbons to be recovered from a given date forward. They are expected to be re- vised as hydrocarbons are produced and additional data become available.

    Proved natural gas reserves comprise nonassociated gas and associated/dissolved gas. An appropriate reduction in gas reserves is required for the expected removal of natural gas liquids and the exclusion of nonhydrocarbon

    Glossary of Terms Crude Oil Crude oil is defined technically as a mixture of hydrocar- bons that existed in the liquid phase in natural underground reservoirs and remains liquid at atmospheric pressure af- ter passing through surface separating facilities. For statistical purposes, volumes reported as crude oil include: (1) liquids technically defined as crude oil; (2) small amounts of hydrocarbons that existed in the gaseous phase in natural underground reservoirs but are liquid at at- mospheric pressure after being recovered from oilwell (casinghead) gas in lease separators*; and (3) small amounts of nonhydrocarbons produced with the oil.

    Natural Gas Natural gas is a mixture of hydrocarbons and varying quantities of nonhydrocarbons that exists either in the gaseous phase or in solution with crude oil in natural underground reservoirs. Natural gas may be subclassi- fied as follows.

    Associated Gas. Natural gas, commonly known as gas- cap gas, that overlies and is in contact with crude oil in the reservoir. **

    gases if they occur in significant quantities. Reserves that can be produced economically through

    Dissolved Gas. Natural gas that is in solution with crude oil in the reservoir.

    the application of established improved recovery tech- niques-are included in the proved classification when these qualifications are met: (1) successful testing by a pilot Nonassociated Gas. Natural gas in reservoirs that do not

    project or the operation of an installed program in that contain significant quantities of crude oil.

    reservoir or one with similar rock and fluid properties pro- Dissolved gas and associated gas may be produced con-

    vides support for the engineering analysis on which the currently from the same wellbore. In such situations, it

    project or program was based, and (2) it is reasonably is not feasible to measure the production of dissolved gas

    certain the project will proceed. and associated gas separately; therefore, production is

    Reserves to be recovered by improved recovery tech- reported under the heading of associated/dissolved or

    niques that have yet to be established through repeated casinghead gas. Reserves and productive capacity esti-

    economically successful applications will be included in mates for associated and dissolved gas also are reported

    the proved category only after successful testing by a pi- as totals for associated/dissolved gas combined.

    lot project or after-the operation of an installed-p&g&~ in the reservoir provides support for the engineering anal- Natural Gas Liquids ysis on which the project or program was based. Natural gas liquids (NGLs) are those portions of reser-

    Estimates of proved reserves do not include crude oil, voir gas that are liquefied at the surface in lease separa- natural gas, or natural gas liquids being held in under- tors, field facilities, or gas processing plants. NGLs ground storage. include but are not limited to ethane, propane, butanes,

    pentanes, natural gasoline, and condensate.

    Proved Developed Reserves. Proved developed reserves are a subcategory of proved reserves. They are those reserves that can be expected to be recovered through ex- isting wells (including reserves behind pipe) with proved equipment and operating methods. Improved recovery reserves can be considered developed only after an im- proved recovery project has been installed.

    Reservoir A reservoir is a porous and permeable underground for- mation containing an individual and separate natural ac- cumulation of producible hydrocarbons (oil and/or gas) that is confined by impermeable rock and/or water barri- ers and is characterized by a single natural pressure system.

    Proved Undeveloped Reserves. Proved undeveloped reserves are a subcategory of proved reserves. They are those additional proved reserves that are expected to be recovered from (I) future drilling of wells, (2) deepen- ing of existing wells to a different reservoir, or (3) the installation of an improved recovery project.

    From a technical standpoint, these hqulds are termed condensate, however, they are commmgled wth Ihe crude stream and it IS impractical to meawe and report their volumes separately All other condensate IS reported as either lease condensate or plant condensate and Included I natural gas l,q,ds

    . Where resewar cond,,,ons are such lhat the production of associated gas does not substantlallv affect the recwerv of crude 011 I the reser~oll. such aas rnav be reclassitledas nonassoclated gis by a regulatory agency In this w&t, res&es and producbon are reported I accordance wth the classlficatw used by the regulatory agency Most reserve,, engmeers add the expression considering current technology.

  • 40-4 PETROLEUM ENGINEERING HANDBOOK

    OIL-WATER CONTACT -7450

    Probable Reserves Probable reserves of crude oil, natural gas, or natural gas liquids are estimated quantities that geological and engi- neering data indicate are reasonably probable to be re- covered in the future from known reservoirs under existing economic conditions. Probable reserves have a

    0 higher degree of uncertainty with regard to extent, recoverability, or economic viability than do proved reserves.

    Possible Reserves Possible reserves of crude oil, natural gas, or natural gas liquids are estimated quantities that geological and engi- neering data indicate are reasonably possible to be recov-

    Fig. 40.2-Geological map on top (-) and base (-7) of reservoir. ered in the future from known reservoirs under existing economic conditions. Possible reserves have a higher degree of uncertainty than do proved or probable reserves.

    In most situations, reservoirs are classified as oil reser- voirs or as gas reservoirs by a regulatory agency. In the absence of a regulatory authority, the classification is based on the natural occurrence of the hydrocarbon in the reservoir as determined by the operator.

    Computation of Reservoir Volume4

    Improved Recovery Improved recovery includes all methods for supplement- ing natural reservoir forces and energy, or otherwise in- creasing ultimate recovery from a reservoir. Such recovery techniques include (1) pressure maintenance, (2) cycling, and (3) secondary recovery in its original sense (i.e., fluid injection applied relatively late in the produc- tive history of a reservoir for the purpose of stimulating production after recovery by primary methods of flow or artificial lift has approached an economic limit). Improved recovery also includes the enhanced recovery methods of thermal, chemical flooding, and the use of miscible and immiscible displacement fluids.

    When sufficient subsurface control is available, the oil- or gas-bearing net pay volume of a reservoir may be com- puted in several different ways.

    1. From the subsurface data a geological map (Fig. 40.2) is prepared, contoured on the subsea depth of the top of the sand (solid lines), and on the subsea depth of the base of the sand (dashed lines). The total area enclosed by each contour is then planimetered and plotted as ab- scissa on an acre-feet diagram (Fig. 40.3) vs. the corre- sponding subsea depth as the ordinate. Gas/oil contacts (GOCs) and water/oil contacts (WOCs) as determined from core, log, or test data are shown as horizontal lines.* After the observed points are connected, the combined gross volume of oil- and gas-bearing sand may be deter- mined by the following methods.

    lf working I Sl umls, the depths WIII be expressed in meters and the planlmetered areas enclosed by each contour w,ll be expressed I hectares The resultant hectare- meter plot can be treated exactly llke the following acre-foot example to yield reserw~ ~oI!mes m cubic meters. (1 ha, m = 10,000 m3 )

    GROSS GAS BEARING SAND VOLUME:

    [(0+8&42lt4(24)] ~2367 ACRE FEET

    GAS-OIL CONTACT

    GROSS OIL BEARING SAND VOLUME:

    y [W-42+ 378 -242)+4(209-1061]=m ACRE FEET

    OIL-WATER CONTACT

    100 200 300 400 500 600 AREA ENCLOSED BY CONTOUR

    Fig. 40.3-Acre-feet diagram

  • ESTIMATION OF OIL AND GAS RESERVES 40-5

    Fig. 40.4-lsopachous map-gas sand

    a. Planimetered from the acre-feet diagram. b. If the number of contour intervals is even, comput-

    ed by Simpsons rule:

    So/3[(0+136)+4(24+103)+2(46)]= 12,267 acre-ft.

    (The separate calculations of the volume of gross gas- bearing sand and gross oil-bearing sand by means of Simp- sons rule are shown in the diagram of Fig. 40.3.)

    r. With somewhat less accuracy, computed by the trapezoidal rule:

    SO[%(O+ 136)+(24+46+ 103)] = 12,050 acre-ft.

    d. Computed by means of the somewhat more compli- cated pyramidal rule:

    ss[(O+136)+2(24+46+ 103)+J24x88 +m

    +d5icEm-m-J]

    = 11,963 acre-ft.

    e. If the sand is ofuniform thickness, it will oftentimes suffice to multiply the average gross pay thickness h I by the area enclosed by the contour 1/2Z fi above the WOC.

    J If the area within the top contour is circular (area A, height Z), then the top volume is QrZ+ %AZ if treated as a segment of a sphere, and %AZ if treated as a cone.

    From a study of the individual well logs or core data, it is then determined what fraction of the gross sand sec- tion is expected to carry and to produce hydrocarbons.

    Multiplication of this net-pay fraction by the gross sand volume yields the net-pay volume. If, for example, in the case illustrated with Figs. 40.2 and 40.3, it is found that 15% of the gross section consisted of evenly distributed shale or dense impervious streaks, the net gas- and oil- bearing pay volumes may be computed as, respectively,

    0.85 x2,367=2,012 net acre-ft of gas pay

    and

    0.85x9,900=8,415 net acre-ft of oil pay.

    2. From individual well-log data, separate isopachous maps may be prepared for the net gas pay (Fig. 40.4) or for the net pay (Fig. 40.5) and the total net acre-feet of oil- or gas-bearing pay computed as under It&m la, b, or c.

    3. If the nature of the porosity varies substantially from well to well, and if good log and core-analysis data are

    Fig. 40.5-lsopachous map-oil sand

    available on many wells, it is sometimes justified to pre- pare an isopachous map of the number of porosity feet (porosity fraction times net pay in feet) and compute the total available void space in the net-pay section from such an isopachous map by the methods discussed under Item la, b, or c.

    Computation of Oil or Gas in Place Volumetric Method If the size of the reservoir, its lithologic characteristics, and the properties of the reservoir fluids are known, the amount of oil or gas initially in place may be calculated with the following formulas:

    Free Gas in Gas Reservoir or Gas Cap (no residual oil present). For standard cubic feet of free gas,

    GFj = 43,5601/,@(1 -Siw)

    , . (1) *,

    where V, = net pay volume of the free-gas-bearing

    portion of a reservoir, acre-ft, 4 = effective porosity, fraction,

    S;, = interstitial water saturation, fraction, B, = gas FVF, dimensionless, and

    43,560 = number of cubic feet per acre-foot.

    Values for the gas FVF or the reciprocal gas FVF, l/B,, may be estimated for various combinations of pres- sure, temperature, and gas gravity (see section on gas FVF).

    Oil in Reservoir (no free gas present in oil-saturated portion). For stock-tank barrels of oil,

    N= 7,758V,4(1 -S,,) , . . . . . . . . . B, (2)

    where N = reservoir oil initially in place, STB,

    V, = net pay volume of the oil-bearing portion of a reservoir, acre-ft,

    B, = oil FVF, dimensionless, and 7,758 = number of barrels per acre-foot.

    Refer ,oChaps. 20 through 25 for delaled coverage of 011. gas, condensate and watel properties. and correlalions.

  • 40-6

    B 0 1.0

    1.5

    2.0

    3.0

    PETROLEUM ENGINEERING HANDBOOK

    TABLE 40.1--BARRELS OF STOCK-TANK OIL IN PLACE PER ACRE-FT

    S iw 0.10 0.20 0.30 0.40 0.50 0.10 0.20 0 30 0.40 0.50 0.10 0 20 0.30 0.40 0.50 0.10 0.20 0.30 0.40 0.50

    0.05 0.10 0.15 0.20 0.25 0.30 0.35 349 698 1,047 1,396 1,746 2,095 2,444 310 621 931 1,241 1,552 1,862 2,172 272 543 615 1,066 1.358 1,629 1,901 233 465 698 931 1.164 1,396 1,629 194 388 582 776 970 1,164 1,358 233 465 698 931 1,164 1,396 1,629 206 411 617 822 1,028 1,234 1,439 182 365 547 729 912 1,094 1,276 155 310 465 621 776 931 1,086 128 256 384 512 640 768 896 175 349 524 698 873 1,047 1,222 155 310 465 621 776 931 1,086 136 272 407 543 679 815 950 116 233 349 465 582 698 815

    97 194 291 388 485 582 679 116 233 349 465 582 698 815 105 209 314 419 524 628 733

    89 178 268 357 446 535 625 78 155 233 310 388 465 543 66 132 198 264 330 396 462

    Table 40.1 shows the number of barrels of stock-tank oil per acre-foot for different values of porosity, 4, intersti- tial water saturation, S,,,., and the oil FVF, B,,

    Solution Gas in Oil Reservoir (no free gas present). For standard cubic feet of solution gas,

    Gs = 7,7581/,@(1 -s,,.)R.,

    . . (3) Bo

    where G, is the solution gas in place, in standard cubic feet, and R,T is the solution GOR, in standard cubic feet per stock-tank barrel.

    Material-Balance Method5-8 In the absence of reliable volumetric data or as an indepen- dent check on volumetric estimates, the amount of oil or gas in place in a reservoir may sometimes be computed by the material-balance method.5 This method is based on the premise that the PV of a reservoir remains con- stant or changes in a predictable manner with the reser- voir pressure when oil, gas, and/or water are produced. This makes it possible to equate the expansion of the reser- voir fluids upon pressure drop to the reservoir voidage caused by the withdrawal of oil, gas, and water minus the water influx. Successful application of this method re- quires an accurate history of the average pressure of the reservoir, as well as reliable oil-, gas-, and water- production data and PVT data on the reservoir fluids. Generally, from 5 to 10% of the oil or gas originally in place must be withdrawn before significant results can be expected. Without very accurate performance and PVT data the results from such a computation may be quite erratic, 6 especially when there are unknowns other than the amount of oil in place, such as the size of a free-gas cap, or when a water drive is present.

    When the number of available equations exceeds the number of such unknowns, the solution should prefera- bly be by means of the method of least squares. Be- cause of the sensitivity of the material-balance equation

    Porositv. d

    to small changes in the two-phase FVF, B,, an adjust- ment procedure, called the Y method, may be used for the pressure range immediately below the bubblepoint. The method consists of plotting values of

    y= (Ph-PRPoi pR(B,-B,,i) , . . . . . . . . . . . . . . .(4)

    where ph = bubblepoint pressure, psia, pR = reservoir pressure, psia, B, = two-phase FVF for oil, dimensionless, and

    Boi = initial oil FVF, dimensionless.

    vs. reservoir pressure, PR, and bringing a straight line through the plotted points, with particular weight given to the more accurate values away from the bubblepoint. This straight-line relationship is then used to correct the previous values for Y, from which the adjusted values for B, are computed. Values of B, computed with this method for pressures substantially below the bubblepoint should not be used if differential liberation is assumed to represent reservoir producing conditions.

    When an active water drive is present, the cumulative water influx, W,, should be expressed in terms of the known pressure/time history and a water drive constant, thus reducing this term to one unknown. A completely worked-out example of the use of material balance that uses this conversion and in which the amount of oil in place is determined for a partial water drive reservoir where 36 pressure points and equations were available at a time when about 9 % of the oil in place had been pro- duced is given in Ref. 7.

    The material-balance equation in its most general form reads

    N= N,,[B,+O.l7XIB,(R,~-R,,)I-(W,,-~,,)

    B,,, B,q B, rnB + B- -(m+ I) I -

    &RR(.,+S,,,,!)

    ,q, 0, 1 -s,,, II . . . . . . . . . . . . . . . . . . . . . . . ..~.... (5)

  • ESTIMATION OF OIL AND GAS RESERVES 40-7

    TABLE 40.2-CLASSIFICATION OF MATERIAL-BALANCE EQUATIONS

    Reservoir Type

    Oil reservoir with gas cap and active water drive

    Material-balance Equation Unknowns Equation

    Np]B, +0.1781B,(R, -R,,)]-(W, - WP) N= N, W,, m 6

    mB,,

    Oil reservoir with gas cap; no active water drive (W, = 0)

    Initially undersaturated oil reservoir with active water drive (m =0):

    1. Above bubblepoint

    2. Below bubblepoint

    lnltially undersaturated oil reservoir: no active water drive (m = 0), (W, = 0):

    1. Above bubblepoint

    2. Below bubblemint

    Gas reservoir with active water drive

    Gas reservoir; no active water drive

    we =O)

    Np[B, +0.1781B,(Rp -I?,,)]+ w, N= N. m 7

    ma,,

    N,U we-WP

    +APpRco) - ~

    N= B,, 1 (1 -S,,)

    APl(C, +c, -S,&, -c,)l

    N= Npl~,+0.f781B,(R,-R,,)1-(W,-W,)

    8, -60,

    N, W, 8

    9 N, W,

    N,(l +W&J- F (1 -St,) 01 1

    N= N 10 QJDR[c,+c,-S,,(c,-c,)l

    N= NJ!3, + O.l781B,(R, -R,,)]+ W,

    N 11 6, -go,

    G= G,B, -5.615(W, - WP) G W, 12

    B, --By

    G= G,B, +5.615W,

    G 13 6, -B,,

    where N,, = R,, = R.,, = w,, = w,, =

    Aj?R = B,pi =

    III =

    f =

    c,, =

    cumulative oil produced, STB, cumulative GOR, scf/STB. initial solution GOR. scf/STB, cumulative water influx, bbl, cumulative water produced, bbl, change in reservoir pressure, psi, initial gas FVF. res cu ftiscf, ratio of initial reservoir free-gas volume

    and initial reservoir-oil volume, compressibility of reservoir rock, change in

    PV per unit PV per psi, and compressibility of interstitial water, psi -

    When a free-gas cap is present, this equation may be simplified to Eq. 6 of Table 40.2 by neglecting the reser- voir formation compressibility cf and the interstitial water compressibility c,,..

    When such a reservoir has no active water drive (W,,=O), Eq. 7 results.

    For initially undersaturated reservoirs (m = 0) below the bubblepoint, Eqs. 6 and 7 reduce to Eqs. 9 and I I, de- pending on whether an active water drive is present.

    For initially undersaturated reservoirs (m=O) above the bubblepoint, no free gas is present (R,) -R,yi =O). while B, =Bo;+A~~c, (where c, is the compressibility of reservoir oil, volume per psi), so that general Eq. 5 reduces to Eqs. 8 and 10, depending on whether an ac- tive water drive is present.

    For gas reservoirs the material-balance equation takes the form of Eq. 12 or 13, depending on whether an ac- tive water drive is present. The numerator on the right side in each case represents the net reservoir voidage by production minus water influx, while the denominator is the gas-expansion factor (BR -B,;) for the reservoir.

  • 40-8 PETROLEUM ENGINEERING HANDBOOK

    TABLE 40.3-CONDITIONS FOR UNIT-RECOVERY EQUATION. DEPLETION-TYPE RESERVOIR

    Reservoir pressure Interstitial water, @SW, bbllacre-ft Free gas, &S,, bbllacre-ft Reservoir oil, bbllacre-ft

    Initial Conditions

    $58 0

    7,758 $41 -s,,)

    Ultimate Conditions

    7pp58 7,758

    7,758 $~(l - S,, -S,,)

    Stock-tank oil, bbl/acre-ft 1-S

    7,758 d2 BO,

    7,758 4 1 -s&v -s,, B w

    'SubstIMe 10 000 for the 7.758 constanf 11 c"b,c melers per hectare.mefer IS used.

    Saturated Depletion-Type Oil Reservoirs-Volumetric Methods

    General Discussion Pools without an active water drive that produce solely as the result of expansion of natural gas liberated from solution in the oil are said to produce under a depletion mechanism, also called an internal- or solution-gas drive. When a free-gas cap is present, this mechanism may be supplemented by an external or gas-cap drive (Page 40-13). When the reservoir permeability is sufficiently high and the oil viscosity low, and when the pay zone has sufficient dip or a high vertical permeability, the deple- tion mechanism may be followed or accompanied by gravity segregation (Page 40-14).

    When a depletion-type reservoir is first opened to pro- duction, its pores contain interstitial water and oil with gas in solution under pressure. No free gas is assumed to be present in the oil zone. The interstitial water is usual- ly not produced, and its shrinkage upon pressure reduc- tion is negligible compared with some of the other factors governing the depletion-type recovery.

    When this reservoir reaches the end of its primary producing life, and disregarding the possibility of gas-cap drive or gravity segregation, it will contain the same in- terstitial water as before, together with residual oil under low pressure. The void space vacated by the oil produced and by the shrinkage of the remaining oil is now filled with gas liberated from the oil. During the depletion proc- ess this gas space has increased gradually to a maximum value at abandonment time. The amount of gas space thus created is the key to the estimated ultimate recovery un- der a depletion mechanism. It is reached when the pro- duced free GOR in the reservoir, which changes according to the relative permeability ratio relationship and the vis- cosities of oil and gas involved, causes exhaustion of the available supply of gas in solution.

    Unit-Recovery Equation The unit-recovery factor is the theoretically possible ul- timate recovery in stock-tank barrels from a homogene- ous unit volume of 1 acre-t? of pay produced by a given mechanism under ideal conditions.

    The unit-recovery equation for a saturated depletion- type reservoir is equal to the stock-tank oil initially in place in barrels per acre-foot at initial pressure pi minus the residual stock-tank oil under abandonment pressure pi,, as shown in Table 40.3.

    By difference, the unit recovery by depletion or solution-gas drive is, in stock-tank barrels per acre-foot,

    1 - S,M - s,, ' .'." B

    (14) o(I

    where S,, is the residual free-gas saturation under reser- voir conditions at abandonment time, fraction, and B,, is the oil FVF at abandonment, dimensionless. The key to the computation of unit recovery by means of this equa- tion is an estimate of the residual free-gas saturation S,, at the ultimate time. If a sufficiently large number of ac- curate determinations of the oil and water saturation on freshly recovered core samples is available, an approxi- mation of S,, may be obtained by deducting the average total saturation of oil plus water from unity. This method is based on the assumption that the depletion process taking place within the core on reduction of pressure by bringing it to the surface is somewhat similar to the actu- al depletion process in the reservoir. Possible loss of liq- uids from the core before analysis may cause such a value for S,, to be too high. On the other hand, the smaller amount of gas in solution in the residual oil left after flush- ing by mud filtrate has a tendency to reduce the residual free-gas saturation. Those using this method hope that these two effects somewhat compensate for each other.

    A typical S,, value for average consolidated sand, a medium solution GOR of 400 to 500 cu ftibbl, and a crude-oil gravity of 30 to 4OAPI is 0.25.

    Either a high degree of cementation, a high shale con- tent of the sand, or a 50% reduction in solution GOR may cut this typical S,, value by about 0.05, while a complete lack of cementation or shaliness such as in clean, loose unconsolidated sands or a doubling of the solution GOR may increase the S,, value by as much as 0.10.

    At the same time, the crude-oil gravity generally in- creases or decreases the S,, value by about 0.01 for ev- ery 3API gravity.

    Example Problem 1. A cemented sandstone reservoir has a porosity $=0.13, an interstitial water content S,,,.=O.35, a solution GOR at bubblepoint conditions, /?,I, =300 cu ftibbl, an initial oil FVF B,,; = 1.20, an oil FVF at abandonment B,, = I .07, and a stock-tank oil gravity of 40API. Based on the above considerations, the higher-than-average oil gravity would just about off- set the effect of the somewhat lower-than-average GOR. and the residual free-gas saturation S,, after a 0.05 reduc- tion for the cementation can therefore be estimated at 0.20.

  • ESTIMATION OF OIL AND GAS RESERVES 40-9

    Solution. The unit recovery by depletion according to Eq. 14 would be

    N,, =(7.758)(0.13) l-0.35 l-O.35 -0.20

    1.07 >

    = 122 STBiacre-ft [I57 m3/ha.mj.

    where N,, is the unit recovery by depletion or solution- gas drive, STB.

    Muskats Method. 9 If the actual relationships between pressure and oil-FVF B,, gas-FVF B,, gas-solubility in oil (solution GOR) R, , oil viscosity p,), and gas viscosity ps are available from a PVT analysis of the reservoir fluids, and if the relationship between relative permea- bility ratio k,/k, and the total liquid saturation, S,, is known for the reservoir rock under consideration, the unit recovery by depletion can be arrived at by a stepwise com- putation of the desaturation history directly from the fol- lowing depletion equation in differential form:

    As,, -1 APR

    B, dR, S,,- +(I -s,, -s,,, )B,L!

    d(liB,s) PL,, k,., dB,,

    B,, kR -+s,,---

    dlR I-,? k,,, BdrR

    . ..t... .I..........,......... (15)

    where S, = oil or condensate saturation under reservoir

    conditions, fraction, PLO = reservoir oil viscosity, cp,

    PLK = reservoir gas viscosity, cp, k, = relative permeability to gas as a fraction of

    absolute permeability, and k, = relative permeability to oil as a fraction of

    absolute permeability.

    The individual computations are greatly facilitated by computing and preparing in advance in graphical form the following groups of terms, which are a function of pressure only,

    and the relative permeability ratio k,ik,,, which is a function of total liquid saturation S, only.

    The accuracy of this type of calculation on a desk cal- culator falls off rapidly if the pressure decrements chos- en are too large, particularly during the final stages when the GOR is increasingly rapidly.

    With modern electronic computers, however, it is pos- sible to use pressure decrements of IO psi or smaller, which makes a satisfactory accuracy possible.

    This stepwise solution of the depletion equation yields the reservoir oil saturation S,, as a function of reservoir pressure pR. The results may be converted into cumula- tive recovery per acre-foot. In stock-tank barrels per acre-foot,

    (16)

    The results may be converted into cumulative recovery as a fraction of the original oil in place (OOIP) by

    L+L) (?c), .,....,....... N

    (17)

    while the GOR history, in standard cubic feet gasistock- tank barrel, may be computed by

    (18)

    where R is the instantaneous producing GOR, in standard cubic feet per stock-tank barrel, and the relative produc- tion rate in barrels per day by

    k o Poi PR . . . (19)

    where 90 = kc, =

    km = Poi = 40; =

    oil-production rate, B/D, effective permeability to oil. md, initial effective permeability to oil. md, initial reservoir oil viscosity, cp, and initial oil-production rate, B/D.

    It should be stressed that this method is based on the assumption of uniform oil saturation in the whole reser- voir and that the solution will therefore break down when there is appreciable gas segregation in the formation. It is therefore applicable only when permeabilities are rela- tively low.

    Another limitation of this method as well as of the Tarn- er method, discussed hereafter, is that no condensation of liquids from the produced gas is assumed to take place in the tubing or in the surface extraction equipment. It should therefore not be applied to the high-temperature, high-GOR, and high-FVF volatile oil reservoirs to be discussed later.

    Tarners Method. Babson and Tarner have ad- vanced trial-and-error-type computation methods for the desaturation process that require a much smaller number of pressure increments and can therefore be more readi- ly handled by a desk calculator. Both methods are based on a simultaneous solution of the material-balance equa- tion (Eq. 11) and the instantaneous GOR (Eq. 18).

    Tarners method is the more straightforward of the two. The procedure for the stepwise calculation of the cumula- tive oil produced (N,,)I and the cumulative gas produced (Gp)* for a given pressure drop from p I to p, is as follows.

  • 40-l 0 PETROLEUM ENGINEERING HANDBOOK

    TABLE 40.4-COMPUTED DEPLETION RECOVERY IN STBIACRE-FTIPERCENT POROSITY FOR TYPICAL FORMATIONS

    Solution GOR

    (cu ftlbbl)

    cRsb)

    60

    200

    600

    1,000

    2,000

    Oil Gravity, (OAPI)

    -70

    ;z 50 15 30 50 15 30 50 30 50 50

    Unconsolidated

    7.2 12.0 19.2

    7.0 11.6 19.4

    7.6 10.5 15.0 12.3 12.0 10.6

    1. Assume that during the pressure drop from p , to pl the cumulative oil production increases from (N,) , to (N,,)* N, should be set equal to zero at bubblepoint.

    2. Compute the cumulative gas produced (G,,)z at pressure p2 by means of the material-balance equation (Eq. 111, which for this purpose-and assuming Wp =0-is rewritten in the following form:

    (G,,h =(N,h(R,,):!=N (R.7, -R,\)-5.615

    3. Compute the fractional total liquid saturation @,)I at pressure p2 by means of

    (s);=S;~+(l-s;,,J~[l-~]. .., . ..(21)

    4. Determine the k,lk,, ratio corresponding to the to- tal liquid saturation (S,), and compute the instantaneous GOR at p2 by means of

    R* =R,$ +ui15$+. . . . . . . (22) RPK ro

    5. Compute the cumulative gas produced at pressure p2 by means of

    RI +R, (G,)2=(Gp)1+ 2 ---[VP)2 -VP) 11, . (23)

    in which RI represents the instantaneous GOR comput- ed previously at pressure p, .

    Usually three judicious guesses are made for the value (N,) 2 and the corresponding values of (G,,) 2 computed by both Steps 2 and 5. When the values thus obtained for (G,) 2 are plotted vs. the assumed values for (N,) 2 , the intersection of the curve representing the results of Step 2 and the one representing Step 5 then indicates the cu- mulative gas and oil production that will satisfy both equa- tions. In actual application, the method is usually simplified further by equating the incremental gas pro- duction (Gp)z -(G,) I) rather than (G,)Z itself. This

    Sand or Sandstone Limestone, Dolomite or (S,, = 0.25) Chert (S,, =0.15)

    Consolidated Highly Cemented Vugular Fractured

    4.9 1.4 2.6 0.4 8.5 4.9 6.3 18

    13.9 9.5 11.8 5.1 4.6 1.8 2.6 0.5 7.9 4.4 5.8 1.5

    13.7 9.2 11.4 4.4 4.8 2.5 3.3 0.9 6.5 3.6 4.7 (1.2) 9.7 5.8 7.2 (2.1) 7.6 4.5 5.4 (1.6) 7.2 4.1 4.8 (1.2) 6.4 4.0 (4.3) (1.5)

    equality signifies that at each pressure step the cumula- tive gas, as determined by the volumetric balance, is the same as the quantity of gas produced from the reservoir, as controlled by the relative permeability ratio of the rock, which in turn depends on the total liquid saturation. Although the Tamer method was originally designed for graphical interpolation, it also lends itself well to auto- matic digital computers. The machine then calculates the quantity of gas produced for increasing oil withdrawals by both equations and subtracts the results of one from the other. When the difference becomes negative, the machine stops and the answer lies between the last and next to last oil withdrawals.

    Tarners method has been used occasionally to com- pute recoveries of reservoirs with a free-gas cap or to evaluate the possible results from injection of all or part of the produced gas. When a free-gas cap is present, or when produced gas is being reinjected, breakthrough of free gas into the oil-producing section of the reservoir is likely to occur sooner or later, thus invalidating the as- sumption of uniform oil saturation throughout the produc- ing portion of the reservoir, on which the method is based. Since such a breakthrough of free gas causes the instan- taneous GOR (Eq. 18) as well as the entire computation method to break down, the use of Tamers method in its original form for this type of work is not recommended. It should also be used with caution when appreciable gas segregation in an otherwise uniform reservoir is expected.

    Computed Depletion-Recovery Factors. Several investi- gators9, 12-14 have used the Muskat and Tarner methods to determine the effects of different variables on the ulti- mate recovery under a depletion mechanism. In one such attempt I2 the k,lk, relationships for five different types of reservoir rock representing a range of conditions for sands and sandstones and for limestones, dolomites, and cherts were developed. These five types of reservoir rock were assumed to be saturated under reservoir conditions with 25 % interstitial water for sands and sandstones and 15 % for the limestone group and with 12 synthetic crude- oil/gas mixtures representing a range of crude-oil gravi- ties from 15 to 5OAPI and gas solubilities from 60 to 2,000 cu ft/STB. Their production performance and recovery factors to an abandonment pressure equal to 10% of the bubblepoint pressure were then computed by means of depletion (Eq. 15).

  • ESTIMATION OF OIL AND GAS RESERVES

    10.0

    z 2 1.0 e

    = P

    0.1

    0.01

    5 TOT PER

    Notes: interstitial water is assumed to be 30% of pore space and dead-

    oil viscosity at reservoir temperature to be 2 cp. Equilibrium gas saturation is assumed to be 5% of pore space. As here used ultimate oil recovery is realized when the reser-

    voir pressure has declined from the bubblepoint pressure to at- mospheric pressure.

    FVF units are reservoir barrels per barrel of residual oil. Solution GOR units are standard cubic feet per barrel of residual

    oil. Example 1: Required: Ultimate recovery from a system -having a bub-

    blepoint pressure = 2,250 psia, FVF = 1.6, and a solution GOR. Procedure: Starting at the left side of the chart, proceed

    horizontally along the 2,250-psi line to FVF = 1.6. Now rise verti- cally 10 the 1,300-scflbbl line. Then go horizontally and read an ultimate recovery of 23.8%. Example 2: F)eqoired: Convert the recovery figure determined in Exam-

    ple 1 to tank oil recovered. Data requirements: Differential liberation data given in Exam-

    ple 1. Flash liberation data: bubblepoint pressure = 2,250 psia, FVF = 1.485, FVF at atmospheric pressure = 1.080 for both flash and differential liberation.

    FORMATION VOLUME FACTOR

    Procedure: Calculate the oil saturation at atmospheric pres- sure by substituting differential liberation data in the equation as follows:

    Oil saturation at atmospheric pressure = 0.360. Next, substitute the calculated value of oil saturation and the

    flash liberation data into the previous equation and calculate the ultimate oil recovery as a percentage of tank oil originally in place.

    N,, (ultimate oil recovery)=29.3% of tank oil originally in place.

    Fig. 40.6-Chart for estimating ultimate recovery from solution gas-drive reservoirs.

    These theoretical depletion-recovery factors, expressed as barrels of stock-tank oil per percent porosity, will be found in Table 40.4 for the different types of reservoir rocks, oil gravities, and solution GORs assumed.

    In cases where no detailed data are available concern- ing the physical characteristics of the reservoir rock and its fluid content, Table 40.4 has been found helpful in es- timating the possible range of depletion-recovery factors. It may be noted that the k,lk, relationship of the reser- voir rock is apparently the most important single factor governing the recovery factor. Unconsolidated intergranu- lar material seems to be the most favorable, while in- creased cementation or consolidation tends to affect recoveries unfavorably. Next in importance is crude-oil gravity with viscosity as its corollary. Higher oil gravi-

    ties and lower viscosities appear to improve the recov- ery. The effect of GOR on recovery is less pronounced and shows no consistent pattern. Apparently the benefi- cial effects of lower viscosity and more effective gas sweep with higher GOR is in most cases offset by the higher oil FVFs.

    In general, these data seem to indicate a recovery range from the poorest combinations of 1 to 2 bbl/acre-fi for each percent porosity to the best combinations of 19 to 20 bbllacre-Mpercent porosity. An overall average seems to be around 10 bbliacre-ftlpercent porosity.

    It is also of interest to note that when the reservoir is about two-thirds depleted, the pressure has usually dropped to about one-half the value at bubblepoint.

  • 40-12 PETROLEUM ENGINEERING HANDBOOK

    In another attempt nine nomographs were developed, each for a given combination of the k, lk ,.(, curve, dead- oil viscosity, and interstitial water content. The nomo- graph for an average k,lk, relationship, an interstitial water content of 0.30. and a dead-oil viscosity of 2 cp is reproduced as Fig. 40.6. Instructions for its use are shown opposite the figure.

    The authors also introduced an interesting empirical relationship between the relative permeability ratio k,/k,, the equilibrium gas saturation S,,., the intersti- tial water saturation S,,., and the oil saturation S,:

    k ri: = i(O.0435 +0.4556E), k

    . (24) t-0

    where t;=(l -S,,.-S,, -S,)/(S, -0.25). A similar correlation I5 for sandstones that show a linear relation- ship between lip, (where p,.=critical pressure) and saturation is

    k rg (1 -S*)I[ 1 -@*)I] -= k ro

    (s*)4 , . (25)

    where effective saturation S*=S,I(l -Si,). This equa- tion represents a useful expression for calculating rela- tive permeability ratios in sandstone reservoirs for which an average water saturation has been obtained by either electrical log or core analysis.

    API Estimation of Oil and Gas Reserves In a statistical study of the actual performance of 80 so- lution gas-drive reservoirs, the API Subcommittee on Recovery Efficiency I6 developed the following equation for unit recovery (N,,) below the bubblepoint for solu- tion gas-drive reservoirs, in stock-tank barrels per acre-foot*:

    N,, =3,*44 [ 44;,y 1.6 x (2-J o.0979

    ( > 0.1741

    x(s, ,)O.3722x !k IM . . . . (26) Pa

    where k = absolute permeability, darcies,

    B ob = oil FVF at bubblepoint, RBLSTB, P,~ = oil viscosity at bubblepoint, cp, Pa = abandonment pressure, psig, and pb = bubblepoint pressure, psig.

    The permeability distribution in most reservoirs is usually sufficiently nonuniform in vertical and horizon- tal directions to cause the foregoing depletion calculations on average material to be fairly representative.

    However, when distinct layers of high and low perme- ability, separated by impervious strata, are known to be present, the depletion process may advance more rapidly in high-permeability strata than in low-permeability zones. In such cases separate performance calculations should

    be made for each permeability bank that is known to be continuous and the results converted into rate/time curves for each by combining Eqs. 16 and 19. The estimated ul- timate recovery will then be based on a superposition of such rate/time curves for the different zones.

    If there is a wide divergence in permeabilities, one may find that at a time when the combined rate for all zones has reached the economic limit the more permeable banks will be depleted and have yielded their full unit recovery while the pressure depletion and the recovery from the tighter zones are still incomplete.

    Undersaturated Oil Reservoirs Without Water Drive Above the Bubblepoint- Volumetric Method t7-19 With progressively deeper drilling, a number of oil reser- voirs have been encountered that, while lacking an ac- tive water drive, are in undersaturated condition. Because of the expansion of the reservoir fluids and the compac- tion of the reservoir rock upon pressure reduction, sub- stantial recoveries may sometimes be obtained before the bubblepoint pressure pb is reached and normal depletion sets in. Such recoveries may be computed as follows.

    The oil initially in place in stock-tank barrels per acre- foot at pressure pi is according to Eq. 2,

    . . 73758x4i(1-Siw) .

    Boi

    where 4; is initial porosity. By combining this expres- sion with the material-balance equation (Eq. 10). the recovery factor above the bubblepoint in stock-tank bar- rels per acre-foot may be expressed as

    Np= 7375Wi(Pi-Pb)[Co +Cf-Siw(cc~-~w)l

    Boi[lfco(Pi-Pb)l

    I (27)

    where c,,, is the compressibility of interstitial water in volume per volume per psi.

    Example Problem 2. Zone D-7 in the Ventura Avenue field, described by E.V. Watts, is an example of an undersaturated oil reservoir without water drive. Its reser- voir characteristics are

    pi = 8,300 psig at 9,200 ft, pb = 3,500 psig, #Ii = 0.17,

    s 1M = 0.40, B oh = 1.45, B o(1 = 1.15,

    70 = 32 to 33API, CO = 13x10-6, c w = 2.7~10-~, Cf = 1.4x10-6,

    S,, = 0.22, and Rsb = 900 cu ft/bbl.

    Solution. On the basis of these data, Watts computes the recovery by expansion above the bubblepoint at 47 bbliacre-ft and by a depletion mechanism below the bub- blepoint at 110 bbl/acre-ft (see Ref. 19 for details).

  • ESTIMATION OF OIL AND GAS RESERVES 40-13

    Volatile Oil Reservoirs- Volumetric Methods20-25 Deeper drilling, with accompanying increases in reser- voir temperatures and pressures, has also revealed a class of reservoir fluids with a phase behavior between that of ordinary black oil and that of gas or gas condensate. These intermediate fluids are referred to as high- shrinkage or volatile crude oils because of their rela- tively large percentage of ethane through decane compo- nents and resultant high volatility. Volatile-oil reservoirs are characterized by high formation temperatures (above 200F) and abnormally high solution GOR and FVF (above 2). The stock-tank gravity of these volatile crudes generally exceeds 45 API.

    The inherent differences in phase behavior of volatile oils are sufficiently significant to invalidate certain premises implicit in the conventional material-balance methods. In such conventional material-balance work it is assumed that all produced gas, whether solution gas or free gas, will remain in the vapor phase during the depletion process, with no liquid condensation on passage through the surface separation facilities. Furthermore, the produced oil and gas are treated as separate independent fluids, even though they are at all times in compositional equilibrium. Although these basic assumptions simplify the conventional material-balance calculations, highly in- accurate predictions of reservoir performance may result if they are applied to volatile-oil reservoirs.

    In highly volatile reservoirs, the stock-tank liquids re- covered by condensation from the gaseous phase may ac- tually equal or even exceed those from the associated liquid phase. This rather surprising occurrence is exem- plified in a paper by Woods,24 in which the case histo- ry of an almost depleted volatile-oil reservoir is presented.

    Example Problem 3. Woods reservoir data for this volatile-oil reservoir were

    pi = 5,000 psig, pb = 3,940 psig, TR = 250F,

    c$ = 0.198. k = 75 md,

    Sib,, = 0.25, R,,, = 3,200 scf/bbl, yoi = 44API, You = 62API, and B oh = 3.23.

    Solution. At 80% depletion when pR = 1,450 psig and R =23,000 scf/bbl, the percentage recovery was 2 1% of which 5% was from expansion above the bubblepoint, 9% from the depletion mechanism, and 7% from liquids con- densed out of the gas phase by conventional field separa- tion equipment (see Ref. 24 for details).

    In view of the increasing number and importance of volatile-oil reservoirs in recent years, appropriate tech- niques have been developed to provide realistic predic- tions of the anticipated production performance of these reservoirs. 2o-z5 The depletion processes are simulated by an incremental computation method, using multicompo- nent flash calculations and relative-permeability data, as indicated in the following stepwise sequence for a cho- sen pressure decrement:

    1. The change in composition of the in-place oil and gas is determined by a flash calculation.

    2. The total volume of fluids produced at bottomhole conditions is determined by a volumetric material balance.

    3. The relative volumes of oil and gas produced at bot- tomhole conditions are determined by a trial-and-error procedure that involves simultaneously satisfying the volu- metric material balance and the relative-permeability rela- tionship.

    4. This total well-stream fluid is then flashed to actual surface conditions to obtain the producing GOR and the volume of stock-tank liquid corresponding to the select- ed pressure decrement.

    When this calculation procedure is repeated for succes- sive pressure decrements, the resultant tabulations rep- resent the entire reservoir depletion and recovery processes. Since these stepwise calculations are rather tedious and time-consuming, the use of digital computers is recommended.

    This method of reservoir analysis provides composi- tional data on all fluid phases, including the total well- stream. This information is then readily available for sepa- rator, crude-stabilization, gasoline-plant, or related studies at any desired stage of depletion.

    In the case of small reservoirs with relatively limited reserves, such lengthy laboratory work and phase- behavior calculations may not be justified. An empirical correlation was developed24 for prediction of the ultimate recovery in such cases, based only on the initial produc- ing GOR, R, the reservoir temperature, TR, and the ini- tial stock-tank oil gravity, yO;.

    143.50 N,, = -0.070719+-

    R +O.O001208OT,

    +O.O011807y~i, . . . . (28)

    where N,, =ultimate oil production from saturation pres- sure ph to 500 psi, in stock-tank volume per reservoir volume of hydrocarbon pore space.

    It is claimed that this correlation will give values with- in 10% of those calculated by the more rigorous proce- dure previously outlined.

    Oil Reservoirs With Gas-Cap Drive- Volumetric Unit Recovery Computed by Frontal-Drive MethodZ628 The Buckley-Leverett frontal-drive method may be used in calculating oil recovery when the pressure is kept con- stant by injection of gas in a gas cap but is also applica- ble to a gas-cap drive mechanism without gas injection when the pressure variation is relatively small so that changes in gas density, solubility, or the reservoir volume factor may be neglected. A reservoir with a very large gas-cap volume as compared with the oil volume can sometimes be considered to meet these qualifications even though no gas is being injected.

    The two basic equations, Eqs. 29a and b, refer to a linear reservoir under constant pressure with a constant cross-sectional area exposed to fluid flow and with the free gas moving in at one end of the reservoir and fluids being produced at a constant rate at the other end. Inter- stitial water is considered as an immobile phase.

  • 40-14 PETROLEUM ENGINEERING HANDBOOK

    s? I I I lbfil I VE A

    0 I I I -Al !I --i

    0= I I I 0 0.10 0.20 0.30

    &O 0.50 0.60 0.70

    S&GAS SATURATION, FRACTION OF HYDROCARBON FILLED PORE SPACE

    Fig. 40.7-Frontal-drive method in gas-cap drive

    If the capillary-pressure forces are neglected. the fractional-flow equation of gas is

    (294

    E= k sin @A@,--pR)

    . . . 36%.,qr

    (29b)

    where fX = fractional flow of gas, E = parameter, 8 = dip angle, degrees, A = area of cross-section normal to bedding

    plane, sq ft, PO = density of reservoir oil, g/cm3,

    ph = density of reservoir gas, g/cm3. and q, = total flow rate, reservoir cu ft/D.

    Since the ratio of k,lk, is a function of gas satura- tion, and all other factors are constant, j$ can be deter- mined by Eq. 29a as a function of gas saturation (see Fig. 40.7, Curve A).

    The rate-of-frontal-advance equation may be rearranged to give the time in days for a given displacing-phase satu- ration to reach the outlet face of the linear sand body as a function of the slope of the fractional flow vs. satura- tion curve (Fig. 40.7, Curve B) as follows:

    5.615NB, t= q,(df,,dS;) . . (30)

    Note: Sk as used in this section is gas saturation as a fraction of the hydrocarbon-filled pore space. When N is in cubic meters, q1 is in cubic meters per day.

    The calculation procedure is first to calculate the fractional-flow curve (Fig. 40.7, Curve A). The average gas saturation in the swept area at breakthrough, which is equivalent to the fraction of oil in place recovered, may then be obtained from the fractional-flow curve by con- structing a straight line tangent to the curve through the origin and reading Sk at fR = 1 .O. The time of break- through at the outlet face may be computed from the slope of the curve at the point of tangency. The subsequent per- formance history after breakthrough may then be calcu- lated by constructing tangents at successively higher values of Sk and obtaining Sh in a similar manner.

    Example Problem 4. Welge2s presents a typical calcu- lation of gas-cap drive performance for the Mile Six Pool in Peru.

    Given:

    Reservoir volume= 1,902 X lo6 cu ft, distance from original GOC to average

    withdrawal point = 1,540 ft,

    average cross-sectional area = 1,902x IO6

    1,540 =1.235x106 sq ft,

    k, = 300 md, 8 = 17.50,

    ps = 0.0134 cp, Po = 1.32 cp, q, = 64,000 res cu ft!D [I8 125 res m/d],

    B,, = 1.25, B, = 0.0141

    N = 44~ lo6 STB [6.996x106 m], R,, = 400 cu ft/bbl [71.245 m/mJ, PO = 0.78 g/cm, and Ph = 0.08 g/cm 3

    Solution. The performance history calculations are given in Table 40.5 in a slightly simplified form.

    Oil Reservoirs Under Gravity Drainage 29-37 Occurrence of Gravity Drainage Gravity drainage is the self-propulsion of oil downward in the reservoir rock. Under favorable conditions it has been found to effect recoveries of 60% of the oil in place, which is comparable with or exceeding the recoveries nor- mally obtained by water drive. Gravity is an ever-present force in oil fields that will drain oil from reservoir rock from higher to lower levels wherever it is not overcome by encroaching edge water or expanding gas.

    Gravity drainage will be most effective if a reservoir is produced under conditions that allow flow of oil only or counterflow of oil and gas. This may be attained un- der pressure maintenance by crestal-gas injection, which keeps the gas in solution, or it may be attained by a gradual reduction in pressure, so that the oil and gas can segregate continuously by counterflow. It also may be obtained by

  • ESTIMATION OF OIL AND GAS RESERVES 40-15

    first producing the reservoir under a depletion-type mech- anism until the gas has been practically exhausted, then by gravity drainage. A thorough discussion of the many aspects of gravity drainage will be found in the classic paper by Lewis.32

    y(, =22.5API, N,, for Jan. 1, 1957=44.6 million bbl of oil; estimated ultimate 47 million bbl or I, 124 bbliacre- ft, corresponding to 63% of the initial oil in place.

    Several investigators 33m36 have attempted to formulate gravity drainage analytically, but the relationships are quite complicated and not readily adaptable to practical field problems. Most studies agree, however, that the oc- currence of gravity drainage of oil will be promoted by low viscosities, p,, , high relative permeability to oil, k,, high formation dips or lack of stratification, and high den- sity gradients (p, -p,). Thick sections of unconsolidat- ed sand with minimal surface area, large pore sizes, low interstitial water saturation, and consequently high k, ap- pear to be especially favorable.

    During the first 20 years the oil level in the field receded almost exactly in proportion to the amount of oil produced, just as in a tank.

    2. Okluhoma City Wilcox Reservoir, OK. 29~32 The dis- covery well, Mary Sudik No. I, blew out in March 1930, and flowed wild for 11 days.

    The segregation of gas and development of gravity drainage began to be important in 1934, when the aver- age pressure became less than 750 psig, and was virtual- ly complete by 1936, when the average pressure had dropped to 50 psig.

    These factors usually are combined in a rate-of-flow equation. which states that such flow must be proportional to (k,,lp,)(p,, -p,) sin 8, in which 8 represents the an- gle of dip of the stratum. Smithj7 compared the values of this term for a dozen reservoirs, some of which had strong gravity-drainage characteristics and some of which lacked such characteristics.

    Water influx played an effective role until 1936, when it came to a halt after invading the bottom 40% of the reservoir. Gravity has been the dominant mechanism since. The Wilcox sand consists of typical round frosted sand grains, clean and poorly cemented.

    When expressing k,,, in millidarcies, p,, in centipoises, and p,, and pI: in g/cm, it was found that for reservoirs exhibiting strong gravity-drainage characteristics the value of the term (k,,ip,)(p, -P,~) sin 0 ranged from 10 to 203 and that in reservoirs where gravity-drainage effects were not apparent, this function showed values between 0.15 and 3.4.

    The average depth is 6,500 ft; the formation dip is 5 to 15; 884 wells have been drilled on a total area of 7,080 acres. The net pay thickness is 220 ft. The 890,000 net acre-ft of Wilcox pay contained originally 1,083 million bbl of stock-tank oil, as confirmed by material balance.

    Reservoir data for this reservoir are pi =ph = 2,670 psi at minus 5,260 ft, TR= 132F, $=0.22, k ranges from 200 to 3,000 md, S;,.=O.O3 (oil wet), Rt,, =735 cu ft/bbl, B,;=l.361, y,i=40APl, yoci=38 tO 39API.

    Case Histories of Gravity Drainage After Pressure Depletion

    The most spectacular cases of gravity drainage have been of this kind. Following are the two best known.

    According to Katz, z9 oil saturations found in the gas zone were between 1 and 26%, while saturations between 53 and 93% were found in the oil-saturated zone below the GOC. The oil saturation below the WOC has been estimated at 43%, showing gravity to be more effective than water displacement in this reservoir.

    1. Lukeview Pool in Kern County, CA. 3~32 The dis- covery well in the Lakewood gusher area blew out in March 1910, flowed wild for 544 days, and ultimately produced 8% million bbl of oil, depleting the reservoir pressure. Gravity drainage thereafter controlled this reser- voir. There was no appreciable water influx. The sand is relatively clean and poorly cemented. The average depth is 2,875 ft. The formation dip is IS to 45. There are I26 producing wells on 588 acres. The net sand thick- ness averages 7 1 ft, the height of the oil column is 1,285 ft. and there are 41,798 net acre-ft of pay.

    Cumulative production, N,, for Jan. 1, 1958, is esti- mated at 525 million bbl and the ultimate recovery at 550 million bbl. After an estimated 189 million bbl displaced by the water influx is deducted, the upper 60% of the Wil- cox reservoir will yield under gravity drainage ultimate- ly 361 million bbl or 696 bbliacre-ft, corresponding to 57% of the oil in place.

    Oil Reservoirs With Water Drive- Volumetric Method9 General Discussion

    Reservoir data for this reservoir are pi =P/, = 1,285 psi& PR on Jan. I, l957=35 psig, r,= 115F. 4=0.33, k ranges up to 4,800 md and averages 3.600 md (70% of samples above 100 md, 37% above 1,000 md), S,,, =0.235, R,,,=200 cu ftibbl, Boi= 1.106,

    Natural-water influx into oil reservoirs is usually from the edge inward parallel to the bedding planes (edgewater drive) or upward from below (bottomwater drive). Bot- tomwater drive occurs only when the reservoir thickness exceeds the thickness of the oil column, so that the oil/water interface underlies the entire oil reservoir. It is

    TABLE 40.5~PERFORMANCE-HISTORY CALCULATION

    s: = Flowing GOR = S near

    Outget Face Recover; Fraction If,41 -01(&/Q

    ro krok,, k f, df,lds; k of Oil in Place x5. l+R, I?? 0.30 0.197 0.715 0.496 - - - a 35 0.140 0.364 0.642 -

    0.395 0.102 0.210 0.739 1 .a7 7.1 0.534 1.808 0.40 0.097 0.200 0.752 1.81 7.3 0.535 1.908 0.45 0.067 0.118 0.829 1 .25 10.6 0.586 2.811 0.50 0.045 0.0715 0.885 0.94 14.1 0.622 4.227

  • 40-16 PETROLEUM ENGINEERING HANDBOOK

    TABLE 40X-CONDITIONS FOR UNIT-RECOVERY EQUATION, WATER-DRIVE RESERVOIR

    ration as found by ordinary core analysis after multiply- ing with the oil FVF at abandonment, B,)O, as the residual oil saturation in the reservoir to be expected from flood- ing with water. This is based on the assumption that water from the drilling mud invades the pay section just ahead of the core bit in a manner similar to the water displace- ment process in the reservoir itself.

    Reservoir pressure Interstitial water,

    bbllacre-ft Reservoir oil,

    bbllacre-ft Stock-tank oil,

    bbllacre-ft

    Ultimate Initial Conditions Conditions

    Pi Pa

    7,75848,, 7,75&S,,

    7.756@(1 -S,,) 7,758@,,

    7,7584(1 - S,,)IB,, 7,75&S~B,,

    further possible only when vertical permeabilities are high and there is little or no horizontal stratification with im- pervious shale laminations.

    In either case, water as the displacing medium moves into the oil-bearing section and replaces part of the oil originally present. The key to a volumetric estimate of recovery by water drive is in the amount of oil that is not removed by the displacing medium. This residual oil satu- ration (ROS) after water drive, S,,, plays a role similar to the final (residual) gas saturation, S,, , in the depletion- type reservoirs.

    To determine the unit-recovery factor, which is the the- oretically possible ultimate recovery in stock-tank barrels from a homogeneous unit volume of 1 acre-ft of pay pro- duced by complete waterflooding, the amount of intersti- tial water and oil with dissolved gas initially present will be compared with the condition at abandonment time, when the same interstitial water is still present but only the residual or nonfloodable oil is left. The remainder of the original oil has at that time been removed by water displacement.

    Unit-Recovery Equation The unit recovery for a water-drive reservoir is equal to the stock-tank oil originally in place in barrels per acre- foot minus the residual stock-tank oil at abandonment time (Table 40.6).

    By difference, the unit recovery by water drive, in stock-tank barrels per acre-foot, is

    .(31)

    where N,,. is the unit recovery by water drive, in stock- tank barrels, and S,, is the residual oil saturation, frac- tion. The ROS at abandonment time may be found by ac- tually submitting cores in the laboratory under simulated reservoir conditions to flooding by water (flood-pot tests). Another method commonly used is to consider the oil satu-

    Recovery-Efficiency Factor

    The unit recovery should be multiplied by a permeability- distribution factor and a lateral-sweep factor before it may be applied to the computation of the ultimate recovery for an entire water-drive reservoir.

    These two factors usually are combined in a recovery- efficiency factor. Baucum and Steinle3 have determined this recovery-efficiency factor for five water-drive reser- voirs in Illinois. Table 40.7 lists the recovery efficien- cies for these reservoirs, together with some other pertinent data.

    Average Recovery Factor From Correlation of Statistical Data In 1945, Craze and Buckley,39,40 in connection with a special API study on well spacing, collected a large amount of statistical data on the performance of 103 oil reservoirs in the U.S. Some 70 of these reservoirs pro- duced wholly or partially under water-drive conditions. Fig, 40.8 shows the correlation between the calculated ROS under reservoir conditions and the reservoir oil vis- cosities for these water-drive reservoirs. The deviation of the ROS from the average trend in Fig. 40.8, vs. per- meability, is given by the average trend in Fig. 40.9. The deviation of the ROS from the average trend in Fig. 40.8, vs. reservoir pressure decline, is given by the average trend in Fig. 40.10.

    Example Problem 5. In a case where the porosity, 4=0.20, the average permeability, k=400 md, the in- terstitial water content, Si,=O.25, the initial oil FVF, B,, = 1.30, the oil FVF under abandonment conditions, B, = 1.25, the initial reservoir oil viscosity, pLo = 1 .O cp, and the abandonment pressure, pu =90% of the initial pressure, pi, determine the average ROS.

    Solution. S,, may be estimated as 0.35+0.03-0.04= 0.34 and the average water-drive recovery factor from Eq. 31 is

    l-O.25 0.34 N,,.=(7,758)(0.20)

    >

    =473 STBlacre-ft

    TABLE 40.7-RECOVERY-EFFICIENCY FOR WATER-DRIVE RESERVOIR

    Unit-Recovery Actual Reservoir

    Recovery Factor Recovery Efficiency

    Number $I S,, B, S,, (bbl/acre-ft) (bbllacre-ft) (O/o) 1 0.179 0.400 1.036 0.20 526 429 82 2 0.170 0.340 1.017 0.20 592 430 73 3 0.153 0.265 1.176 0.20 504 428 85 4 0.192 0.370 1.176 0.20 500 400 80 5 0.196 0.360 1.017 0.20 653 482 74

    From flood-pot tests

    Average = 79

  • ESTIMATION OF OIL AND GAS RESERVES 40-17

    0 0.2 0.4 06 I 2 4 6 IO 20 40 60 100 EC0

    OIL VISCOSITY AT RESERVOIR CONDITIONS; CENTIPOISES

    Fig. 40.8-Effect of oil viscosity on ROS water-drive sand fields.

    In another statistical study of the Craze and Buckley data and other actual water-drive recovery data on a total of 70 sand and sandstone reservoirs, the API Subcom- mittee on Recovery Efficiency t6 developed Eq. 32 for unit recovery for water-drive reservoirs, N,,. In stock- tank barrels per acre-foot,*

    -0.2159

    , . . . (32)

    where symbols and units are as previously defined ex- cept permeability, k, is in darcies, and pressure, p, is in psig.

    Example Problem 6. For the same water-drive reser- voir used previously and assuming pwi =O.S cp, the API statistical equation yields the following unit recovery factor:

    N,, =4,259 (0.20)(1-0.25) .0422

    1.30 1

    1.0 ( > -0.2159

    x- 0.9

    = 504 STB/acre-ft

    Because data were arrived at by comparing indicated recoveries from various reservoirs with the known pa- rameters from each reservoir, the estimated residual oil and the average recovery factor based on these correla- tions allows for a recovery-efficiency factor (permeability- distribution factor times lateral-sweep factor) that is not present in the unit-recovery factor based on actual residual oil as found by flood-pot tests or in the cores. because Eq 32 IS empirlcally darned, conversion to metric units jmJ/ha.m) requires mulbpl~cark?m of Nup by 1.2899

    Fig. 40.10--Relation between deviation of ROS from average trend in Fig. 40.8 and pressure-decline water-drive sand flelds.

    l o.30 . .

    5, F :: *a20 Lsk 3a LiL

    1 8 l O.O 02 20 ?I+ 0 OIL hi0

    g 6 -o .,o & L 4

    EE

    2 -0.20

    g

    -0.30 20 40 100 200 400 lcco EOW 4oM) Io.ow

    AVERAGE PERMEABILITY OF RESERVOIR; MILLIDARCIES

    Fig. 40.9-Relation between deviation of ROS from average trend in Fig. 40.8 and permeability water-drive sand fields.

    Water-Drive Unit Recovery Computed by Frontal-Drive Method26-28 The advance of a linear flood front can be calculated by two equations derived by Buckley and Leverettz6 and simplified by Welge** and by Pirson. These are known as the fractional-flow equation and the rate-of-frontal- advance equation. This method assumes that (1) a flood bank exists, (2) no water moves ahead of this front, (3) oil and water move behind the front, and (4) the relative movement of oil and water behind the front is a function of the relative permeability of the two phases.

    If the throughput is constant and the capillary-pressure gradient and gravity effects are neglected, the fractional- flow equation can be written as follows:

    1 fw =

    1 +(k,lk,,,,)(pJp,) . . (33)

    0 20 40 60 SO 100 RESERWR PRESSURE DECLINE: PER CENT

  • 40-18 PETROLEUM ENGINEERING HANDBOOK

    3 1.0

    5 0.9

    2 k-~ 0.8

    d 5 0.7 I- z - 0.6 ii? : 0.5

    1.0 5

    Iv.. I .2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

    WATER SATURATION, S,,

    FRACTION OF PORE SPACE TIME YEARS +

    Fig. 40.11-Fraction of water flowing in total stream f, and slope off, curve df,/dS,, vs. water saturation S,, (example: frontal-water-drive problem).

    Fig. 40.12-Example of frontal-drive problem, unit-recovery fac- tor, and WOR vs. time.

    wheref,, is the fraction of water flowing in the reservoir at a given point, k,. is the water relative permeability, fraction, and pn, is the reservoir water viscosity, cp. Since k,,lk,. is a function of water saturation, f,+, can be determined by Eq. 33 as a function of water satura- tion for a given water/oil viscosity ratio (see Fig. 40.11, Curve A).

    The Buckley-Leverett rate-of-frontal-advance equation may be rearranged to give the time in days for a given displacing phase saturation to reach the outlet face of the linear sand body as a function of the slope of the frac- tional flow vs. saturation curve (Fig. 40.1 I, Curve B) as follows:

    5.615 NB, t= qr(df,,,dSi,*,) ( . . . . (34)

    where df,ldS,,. is the slope of thef, vs. Si, curve; the time, t, is in days; and the total liquid flow rate, qr, is in reservoir cubic feet per day.

    The average water saturation behind the flood front at breakthrough, and therefore the oil recovery, may be ob- tained from the fractional-flow curve by constructing a straight line tangent to the curve through S;, atf,=O, and reading S ;,, at f, = 1 .O. The time of breakthrough at the producing well may be computed from the slope of the curve at the point of tangency. The subsequent per- formance history after breakthrough may be calculated by constructing tangents at successively higher values of S;, and obtaining Si, in a similar manner.

    Table 40.8 illustrates the calculation procedure for a water drive at constant pressure in a homogeneous reser- voir and with a water-influx rate equal to the production rate.

    Fig. 40.12 is a plot of the results of the performance- history calculation from Table 40.8. If the economic limit is taken to be a WOR of 50, then it can be noted from Fig. 40.12 that the unit-recovery factor will be 575 bbllacre-ft to be recovered in 20.7 years.

    Effect of Permeability Distribution t41-44 In some reservoirs there may be distinct layers of higher and lower permeabilities separated by impervious strata. which appear to be more or less continuous across the reservoir. In such a case, water and oil will advance much more rapidly through the higher-permeability streaks than through the tighter zones, and therefore the recovery at the economic limit will be less than that indicated by the unit-recovery factor.

    Methods for computing waterflood recoveries that take into account the permeability distribution were proposed by Dykstra and Parsons,4 Muskat. and Stiles.43

    In the Dykstra-Parsons paper4 it is assumed that in- dividual zones of permeability are continuous from well to well, and a computation procedure as well as charts are presented for the coverage or fraction of the total volume of a linear system flooded with water for given values of (1) the mobility ratio knvpolkropw, (2) the pro- duced WOR, and (3) the permeability variance.

    This permeability variance is a statistical parameter that characterizes the type of permeability distribution. It is obtained by plotting the percentage of samples larger than the sample being plotted vs. the logarithm of per- meability for that sample on log-probability graph paper and then dividing the difference between the median or 50% permeability and the 84. I % permeability by the me- dian permeability. Although the Dykstra-Parsons method

  • ESTIMATION OF OIL AND GAS RESERVES 40-l 9

    TABLE 40.8-WATER-DRIVE PERFORMANCE-HISTORY CALCULATION*

    Time Residual Oil Unit-Recovery Saturation Factor WOR =

    s S,, w df,JdS,w 1w ~ f (years) (1 -S,,) (bbl/acre-ft) f,/l -f, 0.545 0.619 0.800 2.70 3.94 0.381 441 4.0 0.581 0.655 0.875 1.69 6.29 0.345 484 7.0 0.605 0.675 0.910 1.29 8.24 0.325 507 10.1 0.634 0.697 0.940 0.95 11.19 0.303 534 15.7 0.673 0.720 0.970 0.64 16.61 0.280 561 32.3 0.718 0.748 0.990 0.33 32.21 0.252 594 99.0

    N = 597,000 STB, ao, = 1 30, o=o 20. S,, =0 25, and qr = 200 E/D x 5 615 cu ftlbbl = > ,222 ,esewow cu fl/D

    does not allow for variations in porosity, interstitial water. and floodable oil in the different permeability groups, it has apparently been used extensively and successfully on close-spaced waterfloods. mainly in California.

    Johnson4 in 1956 published a simplification of this method and presented a series of charts showing the frac- tional recovery of oil in place at a given produced WOR for a given permeability variance, mobility ratio, and water saturation. Reznik er al. 4s published an extension to the Dykstra-Parsons method that provides a discrete analytical solution to the permeability stratification prob- lem on a real-time basis.

    In the Stiles method4 it again is assumed that individu- al zones of permeability are continuous from well to well and that the distance of penetration of the flood front in a linear system is proportional to the average permeabil- ity of each layer. Instead of representing the entire per- meability distribution by one statistical parameter, Stiles tabulates the available samples in descending order of per- meability and plots the results in terms of dimensionless permeability and cumulative capacity fraction as a func- tion of cumulative thickness. From these data, Stiles com- putes the produced water cut of the entire system as the watering out progresses through the various layers, start- ing with those of the highest permeability. Stiles then as- sumes that at a given time each layer that has not had breakthrough will have been flooded out in proportion to the ratio of its average permeability to the permeability of the last zone that had just had breakthrough, and then constructs a recovery vs. thickness relationship. This then is combined with previous results to yield a recovery vs. water-cut graph. The Stiles method is used extensively and successfully, mainly in the midcontinent and Texas, for close-spaced waterfloods. It does not make allowance for the difference in mobility existing in the formation ahead of and behind the flood front. which the Dykstra- Parsons method allows for. It also does not provide for differences in porosity, interstitial water, and floodable oil in the various permeable layers.

    Arps introduced in 1956 a variation of the Stiles meth- od, called the permeability-block method. This method handles the computations by means of a straightforward tabulation and does make allowance for the differences in porosity, interstitial water, and floodable oil existing in the various permeable layers. Since it is designed primarily for the computation of recoveries from water- drive fields above their bubblepoint. no free-gas satura-

    tion is assumed. The method further assumes that (I) no oil moves behind the front, (2) no water moves ahead of the front, (3) watering out progresses in order from zones of higher to zones of lower permeability. and (4) the ad- vance of the flood front in a particular permeability streak is proportional to the average permeability.

    This method, applied to a hypothetical pay section 100 ft thick, is illustrated in Table 40.9, which is based on data from a Tensleep sand reservoir in Wyoming where good statistical averages of more than 3,000 core analy- ses were available. Part of these cores were taken with water-base mud that yielded the residual-oil figures on Line 6. Another portion was taken with oil-base mud and yielded the interstitial-water figures of Line 7. An oil/water viscosity ratio of 12.5 was used in calculating the WOR of Line 13.

    In Group I the recovery of 61.7 bbliacre-ft for WOR= 15.5 is the product of the fraction of samples in the group and the unit-recovery factor. In all other groups for WOR = 15.5 the full recovery is reduced in the propor- tion of its average permeability to 100 md. The total recovery at WOR= 15.5 is shown as 175.6 bbliacre-ft. The cumulative recoveries for WORs of 35.9, 76.5, 307.7, and infinity are calculated in a similar manner. Fig. 40.13 is a plot of WOR vs. recovery factor. From Fig. 40.13 it can be seen that, if the economic limit is taken to be a WOR of 50, the recovery factor would be 297 bbliacre-ft.

    It should be stressed that the permeability-block method is applicable only when the zones of different permeabil- ity are continuous across the reservoir, or between the source of the water and the producing wells. When the waterfront has to travel over large distances, nonunifor- mity of permeability distribution in lateral directions be- gins to dominate, and recoveries will approach those obtainable if the formation were entirely uniform (per- meability distribution factor= 1). In such a case, an esti- mate based on the permeability-block method may be considered as conservative, except for the fact that one of the basic assumptions of this method is that the WOC, or front, moves in pistonlike fashion through each per- meability streak, sweeping clean all recoverable oil. In reality, part of this oil will be recovered over an extend- ed period after the initial breakthrough, which may tend to make the estimate optimistic. Those using the permeability-block method hope that these two effects are more or less compensating.

  • 40-20 PETROLEUM ENGINEERING HANDBOOK

    TABLE 40.9-WATER DRIVE PERMEABILITY-BLOCK

    Group

    (1) Permeability range, mud (2) Percent of samples in group (3) Average permeability, md (4) Capacity, darcy-ft (2) x (3) + 1,000 (5) Average porosity fraction $ (6) Average residual-oil fraction Sgr (7) Average interstitial-water fractron S,, (8) Relative water permeabrlity behind front k (9) Relative oil permeability ahead of front k,,

    (10) Unit-recovery factor (B,, = 1.07) (11) Cumulative wet capacity, E(4) (12) Cumulative clean oil capacity, 3.241 - (11) (13) Water-oil ratio WOR= (~00~c)(8/9)(1 l/12) (14) Cumulative recovery at WOR = 15.5 bbllacre-ft

    Min k wei =I00 md (15) Cumulative recovery at WOR = 35.9 bbllacre-ft

    Min k,,, =50 md (16) Cumulative recovery at WOR = 76.5 bbl/acre-ft

    Min k we, = 25 md (17) Cumulative recovery at WOR = 307.7 bbllacre-ft

    Min k we, =lO md (18) Cumulative recovery at WOR = mbbllacre-ft

    Min k wer =0 md

    Effect of Buoyancy and Imbibition In limestone pools producing under a bottomwater drive, such as certain of the vugular D-3 reef reservoirs in Al- berta, one finds an extreme range in the permeabilities, often running from microdarcies on up into the darcy range. Under those conditions the modified Stiles method heretofore described yields results that are decidedly too

    400, I I I I r f n

    /

    200. 1

    0 G.-- ~100

    I I I I I I I I

    g 80- 1 I I

    - ECONOMIC , .9 !

    5 50 60kIMIT WOR=5Ojmi

    -T---q---

    5 40

    20 RECOVERY FACTOR =297 BBL/ACRE-

    , FT@ WOR =50

    lOI 31 , , I 0 200 400 600

    RECOVERY FACTOR, BBL/ACRE-FT

    Fig. 40.13-Example of modified Stiles permeability-block method WOR vs. recovery factor.

    >lOO 8.5

    181.3 1.541 0.159 0.173 0.185 0.65

    0.475 726

    1.541 1.700 15.5 61.7

    2

    50 to 100 10.9 69.0

    0.752 0.150 0.195 0.154 0.63 0.53 693

    2.293 0.948 35.9 52.1

    CALCULATIONS

    3

    25 to 50 14.5 34.4

    0.499 0.152 0.200 0.131 0.60 0.61 722

    2.792 0.449 76.5 36.0

    61.7 75.5 72.0

    61.7 75.5 104.7

    61.7 75.5 104.7

    61.7 75.5 104.7

    4 5

    10 to 25 0 to 10 21.2 44.9 16.1 2.4

    0.341 0.108 0.130 0.099 0.217 0.222 0.107 0.185 0.56 0.54 0.66 0.47 623 415

    3.133 3.241 0.108 0 307.7 21.3 4op5

    42.5 8.9

    85.1 17.9

    132.1 44.7

    132.1 186.3

    Total

    100.0

    3.241

    175.6

    260.6

    344.9

    418.7

    560.3

    low. The reason is that, in pools like the Redwater D-3, there is a substantial density difference between the ris- ing salt water and the oil. While the water rises and ad- vances through the highly permeable vugular material, it may at first bypass the low-permeability matrix mate- rial, leaving oil trapped therein. However, as soon as such bypassing occurs, a buoyancy gradient is set up across this tight material, which tends to drive the trapped oil out vertically into the vugular material and fractures. In the case of Redwater D-3, where the density difference between salt water and oil is 0.26, while the vertical per- meabilities for matrix material are only a fraction of the horizontal permeabilities, a simple calculation based on Darcys law applied to a vertical tube shows that during the anticipated lifetime of the field very substantial addi- tional oil recovery may be obtained because of this so- called buoyancy effect.

    To calculate the recovery under a buoyancy mechanism it is necessary first to determine by statistical analysis of a large number of cores the average interval between high- permeability zones or fractures. A separate computation is then made for each of the permeability ranges to deter- mine what percentage of the matrix oil contained in a the- oretical tube of such average length may be driven out during the producing life of the reservoir under the ef- fect of the buoyancy phenomenon.

    Surprisingly improved recoveries are sometimes indi- cated by this method over what one would ex


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