There are a number of ways in which production decline data can be shown graphically.

In Figure 1 , we
see the production rate, q, plotted against time.

The rate is constant during the early life of the well, when either proration or maximum efficient rate limits
are placed on it. Thereafter, as the reservoir pressure is reduced, the rate begins to decline.
In Figure 2 , we see the production rate, q, plotted against the cumulative oil production, N p.

As expected the profiles of the curves in Figure 1 and Figure 2 are somewhat similar, with the production
rate declining as more fluids are produced from the reservoir.
We will often plot the percentage of oil or water-cut versus cumulative production in situations where the
ultimate production rate is controlled by the amount of water production we can handle on the lease. In
Figure 3 , we have plotted the percentage oil production versus cumulative production.

When the value of the oil produced becomes equal to the cost of disposing of the produced water, we
have reached the point of abandonment.
In bottom-water drive fields, we might plot the location of the oil-water contact in the formation against
cumulative oil production. As the contact reaches the top of the sand, we know that we have recovered
the crude reserves for this well. A typical plot is shown in Figure 4 .

In a similar manner, we might plot the cumulative gas produced, G p, versus the cumulative oil produced,
Np ( Figure 5 ). This plot is particularly useful in cases where we know the expected total gas to be
produced. This information provides an indication as to when the well will reach its abandonment point.

One of the more important plots which is incorporated into our estimation of reserves is that of the
average reservoir pressure, pavg, versus time ( Figure 6 ). Either pressure build-up tests or observation
well data are used for this plot.

Finally, we should remember that for fixed volume gas reservoirs, the average reservoir pressure, p avg,
over the compressibility factor, z, will plot as a declining straight line function of the cumulative gas
produced on linear coordinate paper. This relationship is shown in Figure 7 and follows from the
application of the gas law to a fixed volume container.

Production rate is by far the most popular dependent variable used in projecting future performance of
wells and reservoirs. It has the advantage of being readily available and easily recorded. When no major
changes in operating procedures are made and no stimulation treatments are applied, the production rate
curves normally show a fairly smoothly declining trend over extended periods. This trend lends itself to
extrapolation.
This smoothness of decline is one important requirement for extrapolation. A second requirement is that
there be a known end point; that is, a production rate at which a well or field begins to lose money if
production continues. This point is referred to as the economic limit production rate. If we incorporate this
value into our rate versus time and rate versus cumulative production curves, we can extrapolate each
trend line to this cut-off point. Thereby, we can determine, for the first curve, the number of years the well
or field will produce profitably prior to abandonment ( Figure 8 ), and for the second curve, the cumulative
production at the time of abandonment.

The end point may also be a minimum oil-cut. In this case, we use the oil-cut versus cumulative
production curve in order to calculate the total production at the time of abandonment ( Figure 9 ).

Likewise, if the known end point is the movement of the oil-water contact to the top of the oil sand, then
we would use a plot of the oil-water contact elevation versus cumulative oil production to find the total
production prior to abandonment ( Figure 10 ).

If the total expected gas production has been calculated with a degree of accuracy and serves as our cutoff point, we would plot the cumulative gas production versus the cumulative oil production in order to find
the total oil to be produced ( Figure 11 ).

Finally, for a gas well or field, the minimum producing rate is determined by the back-pressure imposed
on the well with or without surface compression. When the value or this limiting back-pressure is
converted to a value or average reservoir pressure, pavg, divided by z and plotted against cumulative
production, an estimate of the ultimate predicable gas reserves may be obtained ( Figure 12 ).

But a word of caution. There are two important limitations on our projections. First, the total reserves that
are estimated to be produced must be reasonable; and second, the total time during which those reserves
are to be produced must also be reasonable. if the projected total reserves greatly exceed the volumetric
estimates, then we have made an error in our calculations. We may be producing from a much larger
drainage area than the drainage area or normal spacing. if this is the case, it will not be long before an
offset well is drilled, thereby diminishing the reserve estimates and shortening the life or the well.

CONSTANT PERCENTAGE DECLINE

The nominal production decline rate equation shows the change in production rate per unit of time as a
function of the production rate.

(1.1)
With constant percentage decline, the change in production rate per unit of time is a constant function of
the production rate, q. This means that the decline rate, D, is constant. A negative sign is added to the
right side of the equation so that D will have a positive value. If the variables of this relationship are
separated, and integration takes place between the appropriate limits of flow rate and time, we obtain the
rate-time relationship for the constant percentage decline curve.
qt = qie-Dt (1.2)
This is the rate-time relationship for the constant percentage or exponential decline curve.

To obtain the rate-cumulative production relationship, we must integrate the flow rate, q t, over the time
period, t.

(1.3)
qi is the initial production rate and qt is the production rate at some later time, perhaps at the time of
abandonment if we are estimating future production. Note that D is a fraction and not a percentage. This
is the rate-cumulative production equation for constant percentage or exponential decline curves.
As mentioned above, the decline rate is constant for constant percentage decline. For convenience, we
state that:
D = K (1.4)

HYPERBOLIC AND HARMONIC DECLINE

For hyperbolic decline, the decline rate is proportional to a fractional power of q. This may be expressed
as:
D = Kqn (1.5)
n lies between zero and one, (0<n<l).
For harmonic decline, the decline rate is proportional to q. This may be expressed as:
D = Kq (1.6)
We see, then, that the harmonic decline and constant percentage decline are special cases of the
hyperbolic decline; that is, n is equal to 1 for the harmonic decline, and to 0 for constant percentage
decline. On a more practical basis, we note that for both hyperbolic and harmonic decline curves, the
decline rate will be highest initially and will decrease as the production rate decreases.
Each of the last two relationships may be integrated. We start with the hyperbolic decline relationship:

(1.7)
Integrating this relationship between the appropriate limits of time and flow rate, we obtain the rate-time
relationship.
qt=qi(1+nDit)(-1/n) (1.8)
We note that, in order to calculate a flow rate at any time, q t, we must know the value of n and have
calculated a value for Di. We shall show how this is done shortly. With one more integration we may
calculate the rate-cumulative production relationship.

(1.9)
With this relationship and known values for qi, qt, n and Di, it is an easy task to calculate the cumulative
production, Np. In order to develop equivalent relationships for harmonic decline, we begin again with a
decline rate relationship, in this case:

(1.10)
To integrate, we separate variables and integrate between the appropriate limits of time and flow rate.
This gives us the rate-time relationship.
qt= qi(1 + Dit)-1 (1.11)
In this case, we see that the constant n no longer appears (it is equal to 1). We also see that we must
know both the initial flow rate, qi, and the decline rate at the initial flow rate, Di, in order to calculate the
flow rate, qt.
Once again, if we integrate the flow rate, qt, with respect to time, we obtain the rate-cumulative production
relationship.

(1.12)
It becomes clear that our calculation procedures are sequential; that is, we must first determine the initial
decline rate Di, the initial production rate qi, and, in the case of hyperbolic decline, a value for n. With
these values, we use the rate-time relationship to calculate qt and, then, knowing qt, we use the ratecumulative production relationship to calculate a value for N p. With these relationships, then, we can
calculate the flow rate and cumulative production at any given time.

THE GRAPHICAL REPRESENTATION OF DECLINE CURVES

Using the mathematical relationships which apply to the three types of decline curves, we may look at
how each one plots in different types of coordinates and then see what conclusions we can draw. The two
types of relationships to consider are the rate-time and rate-cumulative production expressions. On a
preliminary basis, we see in Figure 1 how, for a constant initial production rate, the plots differ in linear
coordinates for different values of n.

In Figure 2 , we see how they differ when plotted on natural log/linear scales.

Remember that when n=l, we have harmonic decline; when n = 0, we have exponential decline; and
between the two we have hyperbolic decline.
Now we should see how they plot in linear, semi-log and log-log coordinates. We shall plot three
mathematical relationships on each set of coordinates: one for constant percentage decline (labeled as I);
one for hyperbolic decline (labeled as II); and one for harmonic decline (labeled as III). In order to obtain
these curves, the following specific values for N and D have been assumed:
n

D or Di

Curve I

0.03

Curve II

0.5

0.10

Curve III

1.0

0.30

In linear coordinates ( Figure 3 and Figure 4 ),

we see that the production rate decreases with both time and cumulative production.

We also note that the decline rate is greater for curve III than for curve II, and that curve II, in turn,
declines more rapidly than curve I. We also note that, as a result of the more rapid decline rate, curve III
gives the least value for cumulative production. Curve II provides a higher cumulative production rate, and
curve I has the highest cumulative production rate. The differences in cumulative production values are
rather substantial.
The most important observation to be made is that curve I, the constant percentage decline curve, is a
straight line when rate versus cumulative production is plotted. Note that the decline rate D is equal to:

(1.13)
This, in turn, is equal to:

Where is the counterclockwise angle between the horizontal and the straight line (or the tangent to the
decline curve).
If we look at the same curves in semi-log coordinates ( Figure 5 and Figure 6 ),

we see that the curves tend to be located in the same place relative to each other.

This is as it should be. But now we make a second important observation: we note that rate-time curve I,
the constant percentage decline curve, is a straight line. This reinforces our understanding as to why the
constant percentage decline curve is so popular. The rate-time curve is a straight line in semi-log
coordinates and the rate-cumulative production curve is a straight line in linear coordinates. The fact that
they are both straight lines allows for easy extrapolation.
Notice that rate-cumulative production curve III, the harmonic decline curve, is a semilog straight line.
With this knowledge and a known value for the initial production rate, we can calculate the initial decline
rate, Di.
We also note that on the rate-time plot, a value for the decline rate D in curve I can be obtained from the
slope of the straight line and by multiplying it by -1. This estimation can be compared to the value
obtained using the slope of the rate-cumulative production curve which is a straight line in linear
coordinates ( Figure 4 ).
Now we should see how the three curves plot in log-log coordinates. We see the results in Figure 7 ,

Figure 8 ,

and Figure 9 .

Note that the curves have shifted to the upper right portion of the diagrams and that none of the curves is
a straight line. The hyperbolic decline curves (curve II), however, for both the rate-time and the ratecumulative production relationships, can be straightened. Using appropriate shifting procedures (see, for
example, Campbell (1959)), these curves become straight lines in log-log coordinates ( Figure 8 ). The
straight line allows for easier analysis. In addition to the extra work involved in applying this shifting
procedure, the log-log plot has the further disadvantage of crowding the horizontal scale at the point
where the answer is sought ( Figure 9 ).

APPLICATIONS OF CONSTANT PERCENTAGE DECLINE CURVES

The production rate versus time and the production rate versus cumulative production relationships are
given by these two expressions:
qt=qie-Dt

D is referred to as the continuous decline rate and has the dimensions of 1/t. The units for D and those for
t must be the same. Likewise, the production rates should be given in the same time dimensions. Thus, if
the production rate, q, is in barrels per month, t should be in months and D in units of 1/months.
Sample Problem: We may use these equations to solve the following sample problem: we are given that
the initial production rate at the onset of decline is 6,000 bbl/month. A plot of the early production history
indicates that the decline constant, D, is equal to 0.025 and has units of 1/month. The economic limit

production rate for the well has been calculated to be 75 bbl/month. We are asked to estimate the
production rate after 3 years of decline, the total reserves, and the time to abandonment. We may
calculate the production rate after 3 years of decline by solving our rate-time equation with t equal to 36
months.
q36 = 6000e-0.025(36) = 2439 bbl/month
In solving the second part of the problem (that is, the total reserves), we use the rate-cumulative
production equation and the given data to yield:

In order to calculate the time in months to abandonment, we use our production rate versus time
equation, the economic limit production rate and the decline rate D.
75 = 6,000e-0.025t
t = 175 months = 14.6 years
We should check these values against our volumetric and local performance estimates and should quite
likely find them to be reasonable. It should be pointed out that the data just calculated using mathematical
expressions could have been estimated just as easily by using constant percentage graphical projections.
The procedures are equivalent.
Decline Rates

We are often asked to quote the decline rate of a well on an annual rather than a daily or monthly basis.
This can be done if we make several observations about our production rate-time equation.
qt = qie-Dt
We will begin by assuming that time, t, is in years and that the constant, D, is in units of 1/years. This
means that the product, Dt, is dimensionless. Units for production rate for this equation may be given in
barrels per day or barrels per month. The only limitation is that the consistency of units must be
maintained between D and t in the exponent.
With our basic equation, it can be shown that the ratio of production rates on the first day of the year in
successive years is a constant equal to e-D.

This ratio is often written as:

e-D = 1 - d
The constant, d, is often referred to as the annual production decline rate, and should be distinguished
from D, which is the continuous decline rate.
Sample Problem: Let us use these definitions to solve the following problem. We are given that the
production rate on the first day of year 1 is 1,000 bbl/day, and on the first day of year 2 is 750 bbl/day. The
ratio of these two production rates is equal to 1-d.

The value of d is then found to be equal to 0.25, meaning that there is an annual production decline rate
of 25% . It can be shown that the monthly decline rate, dm, is related to the annual decline rate, d, by the
expression:
(1 - dm)12 = (1 - d)
An annual decline rate of 25% equals a monthly decline rate of 2.35%.
(1 - dm)12 = (.75)
dm = 0.0235
As you can see, the calculations are quite direct.
An annual decline rate, d, equal to 25%, is equivalent to a continuous decline rate, D, of:
(1 - d) = e-D
(1 - .25) = e-D
D = 0.2876 / year
If we divide this value by 12, we get .02397 per month. Each of these has its respective percentage
values. Often you will hear the continuous decline rate, D, referred to as the nominal decline rate and the

annual decline rate, d, referred to as the effective decline rate. The former is what occurs continuously on
a smooth curve; the latter is based on values of production at discrete points in time, for example, from
the first day of the first year to the first day of the second year. Because production data are usually
reported on a discrete basis (that is, daily or monthly), we often make use of the effective as opposed to
the nominal decline rate.
One definition that we should provide you with before continuing is that of the loss-ratio. It is defined as
the inverse of the nominal decline rate or:

The loss-ratio is often applied to tabulated production data to see how the ratio trends with time. For
constant percentage or exponential decline, the loss-ratio is constant.

COLLECTION, ANALYSIS AND SMOOTHING OF PRODUCTION DATA

Because decline curves are intended to represent the behavior of the reservoir, the data used in
developing them should not include wellbore interference, lifting equipment failure, or temporary operating
practices.
An accurate decline curve will not result from data projected into the future that reflect, for example, a
poorly operating pump that will soon be repaired, a damaged formation that will soon be stimulated, or the
low production period during a well workover. It is the engineers job to review the raw production data in
order to distinguish reservoir performance from that caused by transient operating practices. Also, by
practicing good judgment, the engineer should restate the data for decline curve analysis. Once this is
done, the data should accurately reflect the performance of the reservoir for this well or field.
Our second concern is the way in which raw data are handled. Let us use the raw production data shown
in Table 1 below to analyze the decline performance of a particular well over a six-month period of time.
Table 1: Production Data for a Six-Month Period

Month

Production Rate

15,000 B/D

9500 B/D

16,200 B/D

8700 B/D

10,900 B/D

6500 B/D

Because wells are seldom produced in the same way each day or month, the plot of rate versus time for
these discrete points shows some scatter ( Figure 1 ).

If we join the points together we obtain a saw-toothed line. In order to obtain a single straight line on semilog paper that we expect for the rate-time curve, we have three choices:

We may "eyeball" the datathat is, on a somewhat arbitrary basis, draw the best
straight line that we see through the points. Although somewhat inaccurate, this procedure is
often used.
Alternatively, we may smooth the data by using a method of averages.
Or we may use one of several methods to find the equation of the straight line that fits
the given data points. (We should also note that if we have pressure data available, we could
plot p/q vs. time to eliminate this scatter of points.)
The method of eyeballing is one that everyone understands, so we will move directly to the other two
options: the ways in which data may be smoothed or, alternatively, how a best straight line fit is
calculated.

Data Smoothing
We may begin with the methods for smoothing data. One way of smoothing the data provided to us is to
add the production for a three-month period, that is, quarterly, and then plot the three-month production at
the mid-point of the quarter ( Figure 2 ).

The plot point for the first three months, then, would be at the middle of the second month; the plot point
for the second quarter would be at the middle of the fifth month; and so on. A straight line is then drawn
through the points and, by dividing the quarterly production rate by three for any given month, we have an
average value of the monthly production rate.
There is a second method for averaging data which is even more widely used. It is referred to as the
moving average. In this method, we must first select the number of points over which we would like to
carry out a moving average.
In looking at our sample data points, we observe that they appear to be cyclical with a period of about
three months. We assume, then, a three-point moving average. The procedure is quite straight forward.
We add the production for the first, second, and third months, divide the sum by three, and plot the
resulting value at the second month. Then we add the production for the second, third, and fourth months,
divide by three, and plot the resulting average at the third month. This procedure is continued until we no
longer have three-month periods of production straddling the plot point. For our sample well, our final plot
point would be at the fifth month. With these new data points, we have smoothed the original data and
can now draw a single straight line through the average values ( Figure 3 ). In doing so, we remember
that the best fit is one where the area above the line that we draw is equal to the area below the line.

The number of points to include in a moving average procedure depends on the nature of the data. It
should be recognized, however, that the more points included, the less evident small variations will
become.

Straight Line Relationships

The third method for obtaining the required decline curve through the scattered points uses methods of
graphical mechanics to find a straight line equation.
In order of increasing complexity, these methods include: (1) slope-intercept, (2) selected points, (3) the
method of averages, (4) the method of moments, and (5) the method of least squares. We shall discuss
below all but the fourth method.
The Method of Slopes and Intercepts
In the method of slopes and intercepts, the data points are plotted on the coordinate paper which is
expected to give a straight line relationship. A person entering the data then "eyeballs" the best straight
line through the points. By noting the point of intersection of this line with the vertical axis and by
measuring the slope of the line, the two constants needed for the straight line relationship may be
determined. Shown in Figure 4 , are the underlying equations, graphical procedures, and equation of the
straight line for linear, semi-log, and log-log data plots.

Note that they are drawn for a declining slope as we would have for decline curves. The limitation of this
method is that the straight line drawn through the data points is not unique -- it is subject to the attitude
and "eyes" of the person doing the work.
The Method of Selected Points

In using the method of selected points, we would again plot the data in the appropriate coordinate system
and "eyeball" the best straight line through the points. We then select two points on the line, preferably
toward each end of the line, and use the values at those points, plus the general form of the underlying
equation, to calculate the two unknown constants of the equation. Each point gives an equation and the
two equations will provide the equation of the line.
The Method of Averages

We know that our basic rate-time equation is a straight line on semi-log paper. Note that this could be
rewritten further as:

This is again a straight line. We shall proceed using the natural-log form. In order to obtain the equation
for a unique line, we must calculate values for the two unknown constants by writing and solving two
equations. To do this using the method of averages, we divide the given data points into two sets, usually
3 to 6 points each. The data sets are selected at each end of the range of information provided. The data
set at one end provides the first equation; the data set at the other end provides the second equation. If,
for example, we have six months of data, each set will consist of three months: Set 1 will consist of the
first three months, and Set 2, the second three months. If we write the equation for each month and sum
the three points for each set, we obtain the two equations shown here:

Set 1: ln qt = -Dt + n (ln qi)

Set 2: ln qt = -Dt + n (ln qi)
This allows us to solve for qi and D and then to write our specific equation for qt in terms of time, t. It is this
specific equation, then, that we use to extrapolate our data into the future.
The Method of Least Squares
The method of least squares is considered to provide a "best fit" equation to a series of data points in the
sense that it is founded on the following relationship: that the sum of squares (of the differences between
the actual data points and the points calculated from the "best fit" straight line) has a minimum value. If
our best-fit criterion is applied to the variable on the vertical axis (the usual case), then we have:
(y - yc)2 = a minimum
where y is the value of the given data at point n, and y c is the value calculated using the empirical
equation at point x. The summation is made over all data points (assuming there are no "outliers" that
should be discarded as being non-representative). The procedure for satisfying the "minimum" criterion is
straightforward. We first substitute the equation for the expected straight line for y c into Eq 1.17. This
gives us an equation with two unknowns, for example, a and b. The values of these constants must be
found so that a minimum is obtained. For this to occur, the derivative of the relationship (first with respect
to a, and then with respect to b) must be equal to zero. This gives us the two equations with which we
may solve for the two unknowns. As an example, lets assume that y c will be the equation of a straight
line in linear coordinate coordinates:
yc = ax + b
Substituting, we get:
(y - ax + b)2 = a minimum
Taking the derivative (first with respect to a, and then with respect to b) and setting the results equal to
zero gives the following two equations:
(y - ax - b) = 0
and
- 2x (y - ax - b) = 0.
This gives the two "least squares" equations
ya x + nb
and
xy = a x2 + b x
where n is the number of data points.

Incorporating Changes in Operating Practice

We know that we must analyze production data before accepting Its validity, and that valid data points
must be smoothed before calculating the best straight line. We should also say a few words about how to
incorporate changes in operating practices into our decline curve analysis. We shall do this by looking at
a few specific examples.
The addition of new wells will cause an increase in monthly production for a lease and will add an upward
swing In our decline curve for the total lease ( Figure 1 ). The best way to incorporate this effect is to plot
production rate on a per-well basis for the lease.

Well stimulation should also cause an increase in production rate, but it will not necessarily affect the
ultimate reserves that are to be produced from the well ( Figure 2 ). An increase in production rate early in
the life of the field can significantly influence the decline rate and the overall economics.

The addition or artificial lift to an oil well will cause an increase in production rate for a period of time, and
an increase in predicable reserves over those realized from natural flow alone ( Figure 3 ).

The introduction of enhanced recovery methods, such as waterflooding or CO 2 injection to a reservoir,

should increase the ultimate predictable reserves. The production rate will also be increased until the
displacement front reaches the producing well ( Figure 4 ). These effects should be incorporated into the
decline curve, but guidance should be sought from suitable reservoir engineering studies.

A change in product value or operating costs will change the economic limit of production and, thus, the
crude reserves ( Figure 5 ). A review of the economic limit, then, should be made annually.

Fractured reservoirs provide a special problem for decline curve analysis. During the early stages of
production in these reservoirs, a well will produce at a reasonably high rate while the fracture zones are
being depleted ( Figure 6 ).

The production rate will drop off substantially as the rate of production from the tighter matrix into the
open fractures begins to control production rate. The time at which the production will drop from one level
to another, and the rate of production after the drop has occurred, are usually not known. Estimating
production from fractured reservoirs during the early stages of production, then, is similar to the problem
of estimating future production from a well which is being restrained at a constant production level by
proration or engineering limits. Well tests are often helpful, but most experienced engineers will look to
nearby wells or to comparable fields in order to obtain an estimate of what the ultimate decline rate might
be.
There are many other examples where care must be taken during the extrapolation of decline curves. You
have probably already thought of some.

ESTIMATING GAS WELL RESERVES

We know that for a fixed volume gas reservoir (that is, where there is no water encroachment), the plot of
divided by z (the gas compressability factor at that pressure) versus G p (the cumulative gas produced)
yields a straight line in linear coordinates. This follows from the gas law. As we see in Figure 1 , the end
points of the line are the original reservoir pressure, p i, divided by its compressibility factor at zero
cumulative production, and the other end represents the original gas-in-place.

A gas well will stop flowing when the average reservoir pressure drops to a value where it is equal to the
pressure in the wellbore imposed by the back-pressure. The wellbore back-pressure, p wf ( Figure 2a ) is
the sum of the back-pressure imposed by the sales line at the surface, plus the pressure losses that occur
in the gathering system and the tubing.

Thus, for example, if the sales line back-pressure is 600 psi, the gathering system pressure loss 25 psi,
and the tubing pressure loss 50 psi, the wellbore pressure imposed by the accumulation of these three
values will be 675 psi. When the average reservoir pressure falls to this value, no further flow will occur.
This "No Flow" point should not be confused with the economic limit production rate.
If, for this example, the original reservoir pressure had been 1,700 psi, with z = 0.87, then the end point of
the curve, as shown in Figure 3a , would have been 1954.

The other end point would have been the original gas-in-place. In this case, we are told that it is 10.5
BCF. To determine the cumulative production at a "No Flow" average reservoir pressure of 675 psi, we
divide this value or pressure, by its z value (in this case, 0.92) and obtain a value on the vertical axis of
733.7. Moving horizontally to the inventory line and then down, we see that the reserves that could be
produced at this terminal pressure would be 6.54 BCF ( Figure 3b ).

If we were to install a compressor ( Figure 2b ) at the point of sale with a 4:1 compression ratio, the
minimum suction pressure would be about 150 psi.

If, to this suction pressure, we add the gathering system pressure loss and the tubing pressure loss, we
would obtain a "No Flow" wellbore pressure of 225 psi.
Referring once again to our inventory curve, we find that the "No Flow" condition would occur, in this
case, at a point on the vertical axis equal to 225 divided by its z value, 0.96, or 234.4. This yields
predictable reserves of 9.24 BCF ( Figure 3c ).

The difference between the two cumulative production values, approximately 2.7 BCF, is obtained by the
installation of compression. An economic analysis would have to be made to determine whether the value
of the additional reserves produced exceeds the capital and operating costs of the compressor.
The economic limit production rate is the rate at which the value of production is equal to the cost of
producing the well. Once we know this flow rate, we may use the deliverability curves of the well and the
flowing wellbore pressure (imposed back-pressure) to determine the average reservoir pressure at the
economic limit. It is a simple matter, then, to find the value for this average reservoir pressure. Then, by
using the inventory curve, we may estimate the total reserves that would be produced at the economic
limit.

Which of these plots represents a useful application of production decline curves?

(D) A, B and C

2
Which of these quantities, when plotted against cumulative gas production in a volumetric
gas reservoir, would plot as a declining straight line function?
(B) Average reservoir pressure divided by gas compressibility factor

3
The constant percentage decline relationship is a special case of harmonic decline where the
exponent n is equal to _____.
(D) 0

4
The use of a constant percentage decline rate results in a ___________ declining plot of
production rate versus time.
(B) exponential

5
Which of the following decline curve models is represented by a straight line when flow rate
is plotted against cumulative production in linear coordinates?
(A) Exponential

6
Which of these statements is FALSE?
(A) The annual production decline rate is numerically equivalent to the continuous
decline rate.

7
The Method of Least Squares is a tool for _____________________.
(C) determining a straight line equation that fits the recorded production data

8
Which of these operating changes is least likely to increase ultimate reserves?
(A) An acid stimulation program for producing wells.