Chapter 1 - Introduction To Production Technology

Curtin University of Technology
Department of Petroleum Engineering
Master of Petroleum / Petroleum Well Engineering

Production Technology
Chapter 1 Introduction to Production Technology

Table of Contents
1.1
Scope ................................................................................................. 1-1
1.2
Contribution to Oil Company Operations ....................................... 1-2
1.3
Time Scale of Involvement............................................................... 1-3
1.4
Key Subject Areas in Production Technology ............................... 1-3
1.4.1
Primary Reservoir Energy............................................................ 1-4
1.4.2
Well Productivity .......................................................................... 1-7
1.4.3
Well Completion .......................................................................... 1-8
1.4.4
Well Stimulation ......................................................................... 1-11
1.4.5
Associated Production Problems ............................................... 1-12
1.4.6
Remedial and Workover Techniques......................................... 1-13
1.4.7
Surface Processing.................................................................... 1-14
1.5
The Composite Production System .............................................. 1-15
1.5.1
General Description ................................................................... 1-15
1.5.2
Utilisation of Reservoir Pressure ............................................... 1-16
1.6
Supplementing Reservoir Energy ................................................. 1-18
1.6.1
Fluid Injection into the Reservoir ............................................... 1-20
1.6.2
Supplementing the Vertical Lift Process .................................... 1-21
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Introduction

CHAPTER 1
Introduction



Chapter 1 Introduction to Production Technology

The role of the Production Technologist is extremely broad. However currently
within the operating companies in the petroleum industry, the role and
responsibility of a Production Technologist does vary between companies, but
can be broadly said to be responsible for the production system.
1.1
Scope
The production system is a composite term describing the entire production

process and includes the principal components as follows: (1)
The reservoir its productive capacity and production characteristics.
(2)
The wellbore the production interval, the sump and the fluids in the
wellbore.
(3)
Production Conduit comprising the tubing and the tubing components.
(4)
Wellhead, Xmas Tree and Flow Lines.
(5)
Treatment Facilities.
From the above definition it can be seen that the responsibilities of Production
Technology cover primarily downhole aspects of the system but they also
extend to some of the surface facilities and treatment capabilities.
Production Technology is so defined as to be a blend of engineering and
chemistry. The role of the Production Technologist is one of achieving
optimum performance from a production system and to achieve this the
technologist must understand fully the chemical and physical characteristics of
the fluids which he or she seeks to produce and also the engineering systems
which he or she will utilise to control the production/injection of fluids, efficiently
and safely. The importance of the production chemistry input has only recently
been widely acknowledged. It is clear that the physical chemical processes,
which take place in the production of fluids can have a tremendous impact on
project economics in addition to the production capacity and safety of the well.
The main topics covered by a production technologist can be identified as:
(1)
Production Engineering:
(2)
Fluid Flow.
Reservoir Dynamics.
Equipment Design, Installation, Operation, and Fault Diagnosis.
Chemistry:
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Introduction
The Fluids produced, injected and treatment fluids.

The Rock mineral, mineralogy, physical chemical properties
and rock response.
Page 1-1

1.2

Contribution to Oil Company Operations
Production Technology contributes substantially as one of the major technical

functions within an operating company. As with any commercial venture, the
overall incentive will be to maximise profitability at the sharp end of project
economics and it is this area of operations that involves the production
technologist. The modern requirement for high level technology, which enables
zonal isolation, production of multiple zones from the same wellbore, very high
production rates, isolation of water production, multiple wellbores within a
single well etc., costs a substantial amount of money and that requires careful
planning and execution. The wells must be optimally designed to suit the
purpose and meet the objectives of the well and the field. The production
technologists involvement should start during the drilling of the well in
minimising formation damage and setting the necessary casing strings to meet
the objectives of the completion string and hence those of the well. The main
objectives normally encountered in an oil company operation could be broadly
classified as: (1)
Cash flow
To maximise both cashflow and recoverable reserves in the shortest
time possible, this will normally require the maintenance of the wells in
an operational state with:
(2)
Maximum production rates

Maximum life
Minimum down time
Costs
The costs associated with the completion and production of a well can
be split into two categories namely, fixed and direct costs and both
these need to be minimised. The fixed costs being those associated
with conducting the operation and the direct or variable costs being
associated with the level of production and the nature of the operation.
The latter costs are therefore defined in terms of cost per barrel of oil
produced. On this basis the production technologist would seek to
minimise the overall variable costs through minimising:
Capital costs
Production costs
Fluid treatment costs
Well workover costs
Well abandonment costs
From the above, it can be seen that the bulk of the operations for which
the production technologist is responsible or has major inputs into, is
crucial in ensuring that the companies operations are safe, efficient and
profitable.
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1.3

Time Scale of Involvement
The trend within operating companies currently is to assign specialist task

teams to individual fields or groups of wells. The team consists of specialists
from all relevant disciplines. This ensures that there is a forward looking plan
for continuous improvement and optimised production.
The production technologist is involved in the initial well design and will have
interests in the drilling operation from the time that the reservoir is penetrated,
continuing on throughout the production life of the well, to ultimate
abandonment. Thus the production technologist will contribute to the company
operations on a well from the initial planning stage to final abandonment. The
inputs in chronological order to the development and the operation of the well
are listed below:
PHASE
INPUT/ROLE
Drilling
Completion
Production
Workover/Recompletion
Casing string design, Drilling fluid Selection

Design/installation of completion string
Monitoring well and Completion performance
Diagnosis/Recommendation/Installation of new
or improved production systems
Identify candidates and procedures
Abandonment
1.4
Key Subject Areas in Production Technology
Production Technology is both a diverse and complex area. With the ongoing
rapid development of the Petroleum Industry, as a result of the spiralling oil
prices seen in recent times, the scope of the technological activities continues
to expand and as always increases in depth, complexity and cost. There are
several key subject areas that encompass production technology and these
are listed below:
-
Understanding of Primary Reservoir Energy

Well Productivity
Well Completion
Well Stimulation
Associated Production Problems
Remedial and Workover Techniques
Surface Processing
Production Optimisation
Each area listed above will be considered briefly in this chapter with the
assumption that the production technologist will have a sound knowledge of
reservoir engineering fundamentals.
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1.4.1

Primary Reservoir Energy
A reservoir rock will produce naturally as a consequence of the fluid which it

contains, existing at high pressure within the reservoir rock that is in a state of
compaction. Thus the reservoir as such contains an enormous amount of
energy in the form of compressive energy which can be utilised to allow fluid to
be produced from the reservoir, through expansion, into a well and then on to
surface and finally into treatment facilities.
The response of the reservoir to the pressure depletion process, which occurs
during production, will be dynamic and the fluid remaining in the reservoir will
change both in terms of its volume, composition, pressure and other rock and
fluid properties. The manner in which the reservoir system responds to the
depletion process will be naturally governed by the drive mechanism inherent
in the reservoir. The long-term production capacity of the reservoir will be
dependent on the dominant drive mechanism present within the reservoir. The
depletion effects can be supplemented by the injection of a fluid, either water
or gas back into the reservoir depending on the hydrocarbon fluid properties.
Once the reservoir delivers fluid to the wellbore, sufficient pressure energy
needs to exist to lift the fluid to surface if the well is to operate on natural flow.
In the event that insufficient energy exists to allow production to occur at an
economic rate, the well may require assistance by the application of an
artificial lift technique.
The production of a reservoir fluid under its own energy is dependent on the
reservoir pressure being sufficient to counteract the hydrostatic head (from
surface) generated by the fluids, the frictional pressure drop generated by the
flowing fluid in the production tubing and the minimum wellhead pressure that
will be required to feed the production separator. The removal of fluids from
the reservoir will cause the pressure in the reservoir to drop and this loss of
energy is compensated to a degree by one or more of the following
mechanisms:
(1)
(2)
(3)
(a)
(b)
(c)
(d)
Compaction of the reservoir rock matrix.

Expansion of the connate water.
Expansion of hydrocarbon phases present in the reservoir:
If the reservoir is above the bubble point then expansion of the oil until
the bubble point is reached.
If the reservoir is below the bubble point then expansion of the oil and
gas phases.
Expansion of any overlying gas cap.
Expansion of an underlying aquifer resulting in water influxing into the
portion of the reservoir that was vacated by the produced fluids. The
strength of the aquifer will determine the pressure support provided.
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In most cases, as oil is produced, the system cannot maintain its pressure and
the overall pressure in the reservoir will decline. The pressure stored in the
reservoir in the form of compressed fluids and rock represents the significant
natural energy available for the production of fluids from the reservoir to
surface.
The mechanism by which a reservoir produces its fluids and compensates for
the production is termed the reservoir drive mechanism and refers to the
method by which the reservoir provides the energy during production. There
are a number of drive mechanisms (listed below) and a reservoir may be under
the influence of one or more of these mechanisms simultaneously.
(a)
Solution Gas Drive

If oil is found initially in the reservoir above its bubble point, the loss of
reservoir energy due to the removal of the produced oil will be
compensated for by an expansion of the oil left in place within the
reservoir until the bubble point is reached. This will by necessity lead to a
reduction in pressure and eventually the pressure within the reservoir will
drop below the bubble point. Gas will then come out of solution and any
subsequent production of fluids will lead to an expansion of both the oil
and gas phases within the reservoir. A reservoir found above its bubble
point is referred to as a saturated reservoir as no more gas can be
absorbed by the oil at that pressure.
The fields producing gas/oil ratio rises quickly as the bubbles link up and
begin to flow, and may increase to as much as ten times its initial value.
Oil production rates fall quickly once the gas/oil ratio begins to rise. Wells
must be placed on artificial lift early in their life. Initially, little or no water is
produced. As the reservoir pressure continues to fall, the cumulative gas
production eventually reaches a point where a significant portion of
solution gas liberated in the reservoir is produced to surface and oil
production diminishes.
(b)
Gas Cap Expansion Drive

If a reservoir is found at its bubble point, it may have a gas cap containing
a free gas column above the oil leg. Drive energy in a gas cap drive
reservoir is provided by the expansion of the initial gas cap combined with
the energy provided by the solution gas released from the oil. Reservoir
pressure drops more gradually than in a solution gas drive due to the
pressure support provided by the gas cap.
The field gas/oil ratio rises continuously as the expanding gas cap
reaches the wells situated higher up on the structure.
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(c)

Water Drive
Drive energy in a water drive reservoir is provided primarily by water
influx from an aquifer in pressure communication with the oil zone. In
strong water drives, reservoir pressures are maintained and the field
gas/oil ratio remains low as water moves in to replace the produced
fluids.
In a water drive reservoir, the oil zone is in communication with an aquifer
providing the bulk of the reservoirs drive energy. As oil is produced, the
water in the aquifer expands and moves into the reservoir, displacing oil.
Depending on the aquifers strength, additional energy may be provided
by solution gas expansion. Much less significant contributions are
provided by the expansion of the reservoir rock and its associated water.
Recoveries from this type of reservoir will be the highest if the mobility of
the oil is greater than that of the water.
(d)
Combination Drive
Drive energy in a combination drive reservoir is provided by a
combination of two or more drive mechanisms. The production trends
reflect the characteristics of the dominant drive mechanism, which may
change with time. The recovery may be high or low, depending on which
drive mechanisms dominate.
(e)
Gravity Drainage
Gravity drainage, which is a special case of combination drive, is a driving
force created by the density difference between oil and gas, causing a
downward flow of oil. Gravity drainage occurs only in combination with
one or more of the primary oil reservoir drive mechanisms and typically
occurs in steeply dipping reservoirs. Gravity drainage is a secondary drive
mechanism usually associated with an expanding primary or secondary
gas cap. Gravity drainage reservoir performance depends on the
maximum gravity drainage rate and is reflected in the reservoir pressure,
GOR, and recovery trends.
The primary disadvantage of gravity drainage is that the oil is recovered
over a long time. Ultimate recovery from gravity drainage reservoirs
varies depending on the fraction of the recovery attributable to gravity
drainage.
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Figure (1.1) illustrates the reservoir performance for the three major primary
drive mechanisms.
100
5
Water Drive
Gas Oil Ratio (GOR) - MCF / BBL
Reservoir Pressure - % of Original
Gas Cap
Drive
80
60
Gas Cap Drive

40
20
Solution Gas Drive

10
20
Water Drive
0
0
Solution Gas
Drive
30
40
50
60
Oil Produced - % of Oil initially in place
70
80
10
20
30
40
50
60
70
80
Oil Produced - % of Oil initially in place
Figure (1.1) (a) Reservoir Pressure Trends (b) GOR Trends

1.4.2
Well Productivity
An oil or gas reservoir contains highly compressible hydrocarbon fluids at an

elevated pressure and temperature and as such, the fluid stores up within itself
considerable energy of compression. The efficient production of fluids from a
reservoir requires the effective dissipation of this energy through the
production system. Optimum utilisation of this energy is an essential part of a
successful completion.
The productivity of the system is dependent on the pressure loss, which occurs
in several areas of the flow system namely:
The reservoir
The wellbore
The tubing
The choke
The flow line
The separator
The optimum distribution of energy between these various areas has a major
bearing on the production effectiveness of a well completion. The selection of
the appropriate completion string is fit for purpose components which will
control the cost effectiveness.
The pressure drop, which occurs across the reservoir, is defined as the inflow
performance relationship or IPR. The pressure drop in the tubing and wellbore,
post perforations, is that which occurs in lifting the fluids from the reservoir to
the surface and it is known as the vertical lift performance (VLP), or the tubing
performance relationship (TPR). This is a frictional pressure drop caused by
the flow of fluids through the casing and production tubing to the wellhead. In
addition to overcoming the frictional pressure drop it is also necessary to have
sufficient energy in the reservoir fluid to overcome the hydrostatic head
required for the fluid to reach the surface from reservoir depth and to maintain
the stipulated wellhead pressure which is required to feed the reservoir fluids
into the production phase separator at its optimum operating pressure.
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The pressure drop across the reservoir, the tubing and in fact across the choke
is rate dependant and these relationships therefore define the means by which
we can optimise the production of the fluid from the reservoir.
In some cases these will impose significant limitations on the extent to which
we can utilise and optimise the dissipation of this energy. These are discussed
below:
(1)
Limited Reservoir Pressure in cases where the reservoir pressure is

limited, it may not be feasible to achieve a significant and economic
production rate from the well. In such cases it may be necessary to
either assist in maintaining reservoir pressure or arrest the production
decline by the use of gas or water injection for re-pressurisation.
Alternatively, the use of some artificial lift technique to offset some of
the vertical lift pressure requirements and thus increase the production
capacity of the system may be implemented. Pressure drop across the
wellbore can be reduced substantially by having a horizontal section in
the wellbore. This basically increases the length of formation available
for production, hence increasing the productivity index, PI, of the well.
(2)
Minimum Surface Pressure on arrival at the surface, the

hydrocarbon fluids are fed down a pipeline through a choke and a
production manifold to the production separator, where phase
separation is allowed to take place. The production rates of oil, gas and
water are measured here prior to the separate phases, oil, gas and
water, being sent to various treatment facilities for further processing.
To be able to allow the fluids to be driven through the initial separation
process and in fact to provide some of the energy required for the
process itself and to maximise the production rate, it will be necessary
to have the minimum possible wellhead pressure that will be greater
than the sum of the frictional pressure drop between the wellhead and
the separator and the operating pressure of the separator itself
(normally, 100 to 200 psig).
1.4.3
Well Completion
Historically, the major portion of production technology activities is associated

with the engineering and installation of the downhole completion equipment.
The completion string is a critical component of the production system and to
be effective it must be efficiently designed, installed and maintained.
Increasingly, with moves to higher reservoir pressures and more hostile
environments, the actual capital cost of the completion string is becoming a
significant proportion of the well cost and thus worthy of greater technical
consideration and optimisation.
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The completion process can be split into several key areas, which need to be
defined before the commencement of the designing process. Some of these
are highlighted in the following text.
The fluid, which will be used to fill the wellbore during the completion process,
referred to as the completion fluid, must be identified and this requires that the
function of the fluid and the required properties be specified.
The completion must consider and specify how the reservoir fluids will enter
the wellbore from the formation i.e., whether in fact the well will be open or
whether a casing string will be run which will need to be subsequently
perforated to allow a limited number of entry points for fluid to flow from the
reservoir into the wellbore. This is necessary to maintain the mechanical
integrity of the well. It is also possible that special sand production prevention
equipment may be required as a consequence of the quality of the formation
resulting in increased pressure drop across the wellbore.
Conductor Pipe
Surface Casing
Production Casing
Production Tubing
Protective
Casing
Liner
a. Hydro-Pressured Wells
b. Geo-Pressured Wells
Figure (1.2) Typical Casing Configurations
The design of the completion string itself must provide the required
containment capability to allow fluids to flow safely to the surface with minimal
loss in pressure. In addition however, it is crucial that the string be able to
perform several other functions, which may be related to safety, control,
monitoring, etc. The completion string must consider what contingencies are
available in the event of changing fluid production characteristics and how
minor servicing operations could be conducted, for example, replacement of
valve etc. All equipment in the wellbore and the wellhead itself must be
designed to stand the operating conditions and the specified pressure ratings.
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Figure (1.2) depicts a typical casing string design and a typical well completion
string is shown in Figure (1.3). A basic wellhead assembly is displayed in
Figure (1.4).
Controller
Control Line
Circulating Device
Safety Valve
Production Packer
Circulating Device
Flow Coupling
Selective Landing Nipple for Flow Control
Casing
Blast Joint
Tubing
Selective Landing Nipple for Flow Controls
Production Packer
Side Pocket Mandrel
Circulating Device
Flow Coupling
Selective Landing Nipple
for Flow Controls
Blast Joint
Sliding Sleeve
Selective Landing Nipple for

Flow controls
Hydraulic Set
Packer
Production Packer
No-Go Landing Nipple
Landing Nipple
PE-500 Pump Out Plug
Figure (1.3) Typical Well Completion
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Single String Completion
Figure (1.4) Basic Wellhead Assembly

1.4.4
Well Stimulation
The productivity of a well naturally arises from the compressed state of the
fluids, their mobility and the flow properties of the rock, primarily in terms of
permeability. In some cases reservoirs may contain substantial reserves of
hydrocarbons but the degree of inter-connection of the pore space and low
permeability may substantially reduce the recovery even if sufficient natural
reservoir energy is available. In such circumstances, it may be beneficial to
stimulate (increase permeability) the production capacity of the well. The
stimulation techniques are intended to:
Improve the degree of inter-connection between the pores.
Remove impediments to flow, such as fines blocking the pore throats.
Provide a large conductive hydraulic channel, which will allow the

wellbore to communicate with a larger conductive area of the reservoir.
In a nutshell the permeability, which is the property of the rock that dictates the
ease with which a fluid can move through a porous medium, needs to be
increased. In general there are three principal techniques used in well
stimulation operations, namely, Fracturing, Acidisation and Acid Fracturing.
Fracturing this technique is used in very tight reservoirs where the matrix
permeability is extremely low. Fractures are created in the reservoir rock by
pumping fluids, quite often with propants at high pressure and high flowrate
into the formation. The injection pressure at the wellbore must exceed the
overburden pressure. This breaks down the reservoir rock and cracks begin to
appear within the reservoir. This technique increases the effective well bore
radius of the well and hence the effective permeability (Figure (1.5)). The
propants are used to keep the fractures open after the pressure at surface is
released at the end of the fracturing (fraccing) process.
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Vugs

M atrix
Fracture
Fractures
Actual Reservoir
Matrix
Model Reservoir
Figure (1.5) Idealisation of a Fractured Reservoir
Acidisation this process can be conducted at pressures either above or

below the formation break down gradient (fracture gradient) and requires the
injection of an acid into the reservoir to either dissolve the rock matrix and/or
dissolve contaminants which have invaded the rock pore space during drilling
or completion operations. The main objective of acidisation, as with all
stimulation operations, is to increase the permeability of the rock.
Acid Fracturing here, the acid is injected at a pressure above the formation
breakdown gradient to create a fracture while dissolving unwanted debris
lodged in the pores or simply to dissolve part of the rock itself. The acid then
etches flow channels on the surface of the fracture, which on closure will
provide deep conductive flow channels.
A number of other chemical treatments are available for specific situations.
1.4.5
Associated Production Problems
The ongoing process of hydrocarbon production from a well is a dynamic

process and this is often evidenced in terms of changes in the rock or fluid
production characteristics. These are frequently caused by:
Reduction of the well productivity index, PI, due to multiphase flow.

Once water breaks through into a wellbore, due to relative permeability
issues the PI of the well will drop from that evidenced during a 100%
(single phase) oil flow.
Physio-chemical changes may occur as produced fluids experience a

reduction in the temperature and pressure as a result of flow through
the reservoir and through the casing and tubing up to the wellhead. This
can result in a deposition of heavy hydrocarbon materials such as
asphaltenes and waxes on the wall and inside of the production tubing.
This depends on the pour point of the crude oil. The higher the pour
point, the greater the chance of wax deposition. Also, movement of
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fines within the reservoir could cause blockage of the pore throats
resulting in the reduction of the permeability.
Incompatibility between reservoir fluids and external fluids introduced

into the wellbore may result in formation damage induced by scale
deposits and the formation of liquid emulsions. This is a common
occurrence, if not understood at the planning stages, with water-flooding
operations.
Mechanical collapse or breakdown of the formation may give rise to the

production of individual grains of formation sand with the produced
fluids causing tubing and surface pipeline erosion and separator
blockage. This is a common problem with unconsolidated formations.
Corrosion due to the inherent corrosive nature of some of the

components contained in the hydrocarbon system, for example, the
presence of H2S and/or CO2.
Other processing problems can be caused by the appearance of

radioactive scales, foams, heavy metal deposits, etc.
1.4.6
Remedial and Workover Techniques
The production technologist is responsible for monitoring and ensuring the

ongoing safe and optimal operation of all the wells under his/her jurisdiction.
As such, the responsibilities include the prevention, identification and
resolution of problems that may occur with the production system. This area of
work is critical to the ongoing economic viability of the field and can be
subdivided into a number of areas, namely: (1)
Identification of problems and their source: this is normally

conducted on the basis of surface information, which indicates changes
in production characteristics such as rate, pressures and increasing
water/oil and gas/oil ratios. In addition, downhole investigations through
well surveillance will give information on the cause of the problems.
Techniques such as production logging and pressure transient testing
can help to identify the location of the problems and the reasons for the
changes.
(2)
Planning of the required corrective action: this requires considerable

attention to detail and will necessitate:
(a) Identifying the necessary equipment, manpower and other
support required.
(b) Identification and assessment of the unknowns / uncertainties.
(c) Identification and evaluation of the key safety points and
milestones.
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(3)
The assessment of the probability of technical and economic success.
(4)
Identification of the required skilled personnel and their supervision.
(5)
Attention to detail and careful planning are essential when it is

necessary to workover a well. In addition to well control and other safety
aspects, one must also be careful not to inflict further damage to the
wells current productivity.
1.4.7
Surface Processing
In some cases surface processing falls within the domain of production

technology but in most cases it is the responsibility of a production department
involving process engineers. The surface processing operations consist of:
(1)
Separation: To effectively separate oil, gas and water. This could be

done by a single stage or a multi-stage process.
(2)
Dehydration: Removing water droplets or BS&W (Basic Sediments and

Water) from the crude oil and gas.
(3)
Desalting: Reduction of the salt content of the crude oil by diluting the
entrained/emulsified water before dehydrating.
(4)
Sweetening: Removal of H2S and other Sulphur compounds.
(5)
Stabilisation: Removal of the most volatile components of the crude oil

to reduce the Reid Vapour Pressure (RVP) or if more correctly stated,
the reduction of the bubble point pressure. That is, the removal of
dissolved natural gas to a limit that is necessary for the crude oil to be
safely transported and stored.
(6)
Water Processing: Removal of oil droplets and oil-in-water emulsions

from the produced water, satisfying the threshold limits set, before
disposal. The threshold limit for offshore Australia is 30 ppm oil in water.
(7)
Sand Removal: Any sand and other solids gathered in any of the
processing equipment, such as the separator, production manifold and
flowlines, must be removed.
The selection and operation of surface production facilities, obviously, depend

very strongly on the volume processed and the characteristics of the streams
being produced at the wellhead. In every situation the actual processing
scheme depends not only on the wellhead stream, but also on product quality
and deliverability specifications. A typical oil field processing system is shown
in Figure (1.6).
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Gas
Flare System
Pipeline
Compression
Gas
Dehydration
System
Gas Liquids
Recovery
System
Gas Lift
Compression
Gas
Gathering
System
Reservoir
Separation
System
Oil
Gas Re-Injection
Oil Treatment
System
Storage
System
Pumping
System
Pipeline
Tanker
Water
Oil
Oily-Water
Separation
System
Filtration
System
Deaeration
System
Water
Sea
Pumping
System
Water
Injection
System
Figure (1.6) Surface Processing
1.5
The Composite Production System
The composite production system is comprised of the production casing, the

subsurface well completion, the wellhead, the choke and the flowlines to the
production separator, the production separation process itself and the facilities
used for transferring the produced fluids to their intended destinations.
1.5.1 General Description
The energy stored within the reservoir is available to cause the fluids to flow
from the reservoir to the wellbore and then to the surface. The design of a
producing system that efficiently uses this available energy to maximise the
production from the reservoir to the wellhead is fundamental to efficient well
completion design and the responsibility rests with the production technologist.
During the production of oil from the reservoir to a storage tank, the oil has to
flow through a variety of restrictions that will consume some of the energy
stored within the compressed fluids and controlled by their pressure and
temperature. The combined system of the reservoir, the wellbore and the
surface treatment facilities is generally referred to as the composite production
system (Figure (1.7)).
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Well Head
Choke
Conductor Pipe
Gas
Surface Casing
Tubing
Oil String
Oil
Packer
Water
Perforations
Casing Shoe
Figure (1.7) Composite Production System

1.5.2
Utilisation of Reservoir Pressure
In the development of a hydrocarbon reservoir, the energy stored up within the

compressed state of the reservoir fluids has to, in the majority of cases,
overcome the total pressure loss in the producing system. Based upon a fixed
operating pressure for the separator, we can formulate the pressure loss
distribution as follows:
p RES p RES pWB p PT p SURF pCHOKE p SEP
(1.1)
where,
pRES is the initial or average pressure within the well drainage area in the
reservoir.
pRES is the pressure loss caused by the flow of fluid within the
reservoir to the wellbore.
pWB is the total pressure loss generated by the design of the fluid entry
into the wellbore, i.e., the bottom hole completion details (perforations,
gravel pack, pre-packed screens etc.).
pPT is the pressure loss caused by fluid flowing up the production
tubing string.
pSURF is the pressure loss generated in the Xmas tree, production

manifold and surface flowlines.
CHAPTER 1
Introduction
Page 1-16


pCHOKE is the pressure loss across the choke.

pSEP is the required operating pressure for the separator.
The pressure drop required to bring the fluids from the wellbore to the
wellhead can be calculated from the following equation:
p PT p F p H
(1.2)
where,
pF is the frictional pressure drop in the production tubing which is a

function of the fluid velocity.
pH is the hydrostatic head between the wellbore and the wellhead
which is dependent on the density of the fluids present in the tubing, the
vertical distance between the wellbore and the wellhead and gravity.
p H hg
Equation (1.1) can be rearranged to give,

( p RES p SEP ) p RES pWB p PT p SURF pCHOKE
(1.3)
Where, (pRES pSEP) is the pressure drop available for the production system
and hence will determine the rate at which the fluids can be produced to the
surface.
All the pressure drop terms in equation (1.3) are rate dependent and hence the
total system pressure drop can be calculated as:
pTOTAL p RES pWB p PT p SURF pCHOKE Q
(1.4)
Thus, each of the pressure drops can be minimised either individually or

collectively to give the maximum production rate for the available pressure
drop. This is known as production system optimisation.
The following text introduces the techniques normally used to minimise these
pressure drops to provide a maximum potential production rate.
To reduce the pressure loss due to flow in the reservoir, it is necessary to
reduce the resistance to flow. This can be accomplished either by reducing the
formation rock resistance, e.g., increasing the permeability by acidisation or
fracturing or by reducing the resistance to flow due to the fluid properties, e.g.,
viscosity by utilising thermal recovery techniques. These alternatives are
normally too costly to be readily applicable except in specific situations, e.g.,
chalk reservoirs or with very heavy crude oil reservoirs and may involve
considerable technical risk.
CHAPTER 1
Introduction
Page 1-17


The pressure loss due to the bottom hole completion method has to be
specified as part of the completion design and, as such, is a major area for
production optimisation. It is likely that detailed consideration given to some
aspects in this area such as perforation shot density and length of perforated
interval could be very beneficial to maximising the production capacity of the
system. Consideration must also be given to the possible use of a horizontal
well instead of a vertical or a deviated well. In some cases, multi-lateral wells
may be looked at.
Again, as with the bottom hole completion pressure loss, the vertical lift
pressure loss in the production tubing is a major area for optimisation, as not
only does the engineer have to specify the length and diameters of all sections
of the tubing string but also all the specific completion components used in the
string. Careful design in this area should provide significant productive
capacity.
The surface flowline pressure loss is relatively less important in that it is easily
controllable even after the event. The diameter of the flowlines can be
increased to compensate for the number of bends and valves used in the
system. Also, the length of the flowline can be shortened through innovative
facilities design of the surface production facilities and layout. Even if mistakes
were made during the initial design, facilities can be upgraded without having
to outlay too much capital.
Little flexibility exists to minimise choke size as it is required to give a specific
pressure drop for a known flowrate to provide stability to the production
separator.
1.6
Supplementing Reservoir Energy
The effective utilisation of reservoir energy with respect to reservoir production

system optimisation was covered elsewhere in the course. It is clear that the
increased production rate could be attained by supplementing the natural
reservoir energy through either;
(a)
Increasing the reservoir pressure.
(b)
Providing more energy for the vertical lift process.
or
Increasing the reservoir pressure above its initial value is difficult to conceive
for two reasons:
(1)
In any reservoir development, to achieve any noticeable increase in

reservoir pressure would require fluid to be injected into the reservoir
over a considerable period of time and this would normally preclude any
significant production taking place in view of the consequent depletion
of the hydrocarbon volume and pressure which would be associated
with it.
CHAPTER 1
Introduction
Page 1-18


Firstly, the oil has to flow through the reservoir rock to reach the
wellbore and, in doing so, a loss in pressure will occur within the
reservoir and across the wellbore. The pressure drop across the
wellbore, commonly referred to as the drawdown, is principally
dependent upon the reservoir rock and fluid characteristics.
Once inside the wellbore, the fluid has to flow up the production tubing
string passing through various sizes of tubing and through restrictions
caused by other completion string components. This pressure loss
comprises three principal sources of pressure loss, namely:
Frictional pressure loss, i.e., loss associated with viscous drag and
proportional to the fluid velocity.
Hydrostatic head pressure loss due to the density of the fluid column in
the production tubing.
A kinetic energy loss due to expansion and contraction in the fluid flow
area and the associated acceleration/deceleration of the fluid as it flows
through various restrictions.
The sum of these three pressure losses is termed the vertical lift
pressure loss. It is possible to separate the pressure losses due to
individual tubing components, such as downhole valves, from the total
vertical lift pressure loss to allow optimisation in terms of specific
component sizing.
When the fluid arrives at the surface, it passes through the surface
equipment and flowline, giving rise to further pressure losses. The fluid
will then have to pass through the choke into the production separator.
The choke is designed to cause a significant amount of pressure drop to
provide stability to downstream separation operations.
The separator is designed to separate out the liquid and gas phases
continuously to provide produced gas and oil for shipment and water for
disposal. The separator is maintained at its optimum operating
pressure.
(2)
The volume of fluid to be injected into the reservoir to provide an

increase in pressure would be dependent upon the overall
compressibility of the reservoir rock and the fluid system. For reservoirs
of commercial size, the volume of fluid would be considerable and may
be uneconomic depending on the properties of the oil. In a reservoir
with an ideal mobility ratio of M =< 1, the injection water requirement will
be minimal, however, if M > 1, many pore volumes of water will have to
be injected because of very high surface water production. In such
situations, the alternative methods available may need to be applied to
increase fluid production rates.
CHAPTER 1
Introduction
Page 1-19

1.6.1

Fluid Injection into the Reservoir
The potential use of fluid injection into the reservoir to arrest reservoir pressure
decline will help maintain the desired production rates and could improve oil
recovery through immiscible displacement.
From the material balance concept applied to hydrocarbon reservoirs, it is
clear that unless the underground fluid withdrawal from the reservoir can be
compensated for by an equal volume of fluid flow into the reservoir from, say, a
very large aquifer or another external source, then the reservoir pressure will
fall. When the average pressure in the reservoir declines, then the available
energy for production declines and as a result the oil production rate will drop.
AVERAGE RESERVOIR PRESSURE - psia
Thus, the principal application of fluid injection into the reservoir is to try and
balance the reservoir underground fluid volume withdrawn to that injected to
maintain reservoir pressure. If this is accomplished, it will not increase the
maximum production rate attainable but it will restrict the rate of production
decline. Also through immiscible displacement under favourable conditions this
will increase the recovery of oil. Figure (1.8) illustrates the benefits of water
injection.
pavg
3000
With Water Injection
2500
Cumulative Oil Production

with Water Injection
No Water Injection
2000
Cumulative Oil Production

without Water Injection
1500
1000
TIME - YEARS
Figure (1.8) Benefit of Water Injection Sustain Natural Production
The decision as to whether water or gas should be injected is influenced by

fluid availability and characteristics. Water injection is of particular importance
since water is usually available either as produced water or seawater in an
offshore situation or from another formation, preferably, deeper in the vicinity
of the oil-producing reservoir. If surface water is used, then it needs to be
treated and pumped. Water is, however, only slightly compressible and as
such is not an ideal fluid for compression energy storage, but alternatively,
compression costs are low. Injection of water can improve oil recovery
dramatically through displacement if the oils mobility is greater than that of the
water.
CHAPTER 1
Introduction
Page 1-20


Gas, however, is more compressible and hence more suitable as an injected

fluid for pressure maintenance, however, it requires considerable compression
to allow its injection into the reservoir. Furthermore, gas injection can cause
premature free gas breakthrough and reduce oil recovery. The supply of gas
would be a predominant factor when deciding to use gas injection as a means
for pressure maintenance. In most cases its commercial value is of primary
importance and this might preclude its use for reinjection unless no means of
export is available as flaring is prohibited in most countries. Either way, if gas
is produced in large quantities and there is minimal aquifer support, the gas
should be reinjected into the reservoir to preserve energy. A schematic of a
water injection set up is shown in Figure (1.9).
Scale Inhibitor
Bacteriocide
Pump
Filtration
Deaeration
Holding Tank
Corrosion Inhibitor
Pump
Formation
Seawater
Figure (1.9) Typical Injection Water Treatment Facility
1.6.2
Supplementing the Vertical Lift Process
There are several methods available to assist in lifting the produced liquids to
the surface and these are collectively referred to as Artificial Lift Techniques.
These processes are widely applied worldwide in enhancing oil production
rates. In some cases, they are essential to the initial economic development of
a hydrocarbon reservoir whilst in other cases they are implemented later in the
life of the field to maintain production at economic levels. This might be
necessitated by high water production or declining reservoir pressure in a
solution gas drive reservoir. The various techniques can be further classified
into those which simply provide additional energy to assist the lift process, and
those that provide some reduction in the vertical lift pressure gradient through
fluid density reduction. Some of the artificial lift techniques applied in the oil
industry are explored below.
CHAPTER 1
Introduction
Page 1-21


1. Gas Lift
The gas lift process involves the injection of gas normally into the annulus
between the production tubing and the casing. The injected gas is
subsequently allowed to enter the flowstream within the production tubing at
some specific depth (Figure (1.10)) through a gas lift (injection) valve. The
injection of gas into the production tubing provides a stepwise increase in the
gas liquid ratio of the fluids flowing in the tubing at that depth and throughout
the tubing above the injection point up to the wellhead. To be able to enter the
tubing, the pressure of the gas in the annulus at the valve depth must be
greater than the pressure of the fluids in the tubing at the corresponding depth.
A gas lift set up is shown in Figure (1.10).
Oil level has moved
downwards, each valve has
closed as gas entered next
lower valve.
Oil
and
Gas
Surface
Oil
and
gas
Gas
Gas
Oil
level
Tubing
Gas-lift
valves
1st valve open gas

entering tubing oil level
in casing/tubing
annulus moving
downwards
Gas
entering
foot of
tubing
Casing
Oil
(a) Well dead
(b) Commencing gas lift
(c) Normal gas lift
Producing
formation
Figure (1.10) Gas Lifted Well
By injecting gas, the Gas Liquid Ratio (GLR) of the flowing fluid is increased,
i.e., its effective flowing density is reduced and hence, the hydrostatic head is
lowered. As a consequence, the bottomhole flowing pressure is reduced and
hence the production rate is increased as long as the PI does not change. The
compressibility of the gas will assist in the lift process. However, as the gas
rises up with the liquid it will expand causing an increase in the frictional
pressure losses negating some of the advantage gained through the reduced
hydrostatic head. With increasing gas injection volume, the hydrostatic head
will continue to decline but the benefits in reduced density may incrementally
be eroded, whilst the additional frictional pressure loss caused by gas
expansion continues to increase. Therefore, an optimum gas injection rate will
need to be selected for the specific situation. This requires the estimation of
the optimum gas injection rate and the positioning of the gas lift valve at the
correct depth. Multiple gas injection valves can also be used.
CHAPTER 1
Introduction
Page 1-22


Gas lift is a very effective method of increasing the production rate, provided
that the gas is efficiently dispersed within the flowing fluid column and the
optimum injection rate is not exceeded. It is also cheaper than all the other
available lift techniques and has no moving parts in the equipment used
downstream of the compressor and hence the production downtime is minimal.
2. Downhole Pumping
Referring to equation (1.1), if a pump system is used, then an additional term
is introduced to reflect the supplementary energy provided by the pump,
ppump, which will allow a higher production rate to be attained:
p RES p pump p RES pWB p PT p SURF pCHOKE p SEP
(1.5)
There are four principal methods available for pumping as follows:

(a) Electric Submersible Pumps (ESP)
This consists of a multi stage centrifugal pump located at some position
downhole as an integral part of the tubing string (Figure (1.11)). The
ESP consists of three major components, namely, the multi-stage
centrifugal pump at the top of the pump assembly, the seal section in
the middle and the pump electric motor at the base. The requirement for
the pump suction to be flooded with liquid will dictate the pump setting
depth in the well. The liquid level in the well, however, will be dependent
on the reservoir pressure. An electric cable installed on the outside of
the production tubing supplies the power from surface to the downhole
motor.
This type of pump is ideally suited for high rate production and in low
permeability reservoirs. In situations where there is an appreciable
amount of free gas produced, downhole gas-liquid separation
equipment will need to be considered, otherwise the pump will cavitate.
The ESPs can be installed to run at a fixed speed or, with the use of a
Variable Speed Drive (VSD), the pump can be run at variable speeds.
CHAPTER 1
Introduction
Page 1-23


Figure (1.11) Electric Submersible Pump Assembly
(b) Hydraulic Downhole Pumps

This type of pump is again run at the tail end of the tubing string and it
normally utilises hydraulic fluid power fed down a separate small bore
tubing parallel to the tubing string (Figure (1.12)). Alternatively, the fluid
can be injected via the casing tubing annulus. Fluid pumped down the
line at high pressure powers the drive unit of the downhole pump. The
hydraulic fluid then joins the flowing well fluid in the tubing and returns
to surface.
CHAPTER 1
Introduction
Page 1-24


Figure (1.12) Downhole Hydraulic Pump Assembly

(Kermit Brown, Vol 2a p359)
(c) Sucker Rod Pumping

In this system, a plunger, cylinder and a standing valve system are
located downhole as part of the tubing string and connected by steel
rods to a vertical reciprocation system at surface (Figure (1.13)). The
surface reciprocation system is referred to as a nodding donkey. This
type of system is suitable for very low to medium production rates.
CHAPTER 1
Introduction
Page 1-25


Figure (1.13) Sucker Rod Pump Assembly
(d) Jet Pumping

The subsurface jet pumps are a special class of hydraulic pumps but
with no moving parts in the assembly. In jet pumping (Figure (1.14)), the
power fluid (oil or water) is pumped down the tubing/casing annulus to
the fluid entry point. The power fluid thus entering the jet pump is
allowed to expand through an orifice that, using the venturi concept,
creates suction at the base of the pump. This suction allows the
reservoir fluids to enter the pump and both the power and the reservoir
fluids are pumped to the surface. This is achieved through momentum
transfer between the power fluid and the produced fluid.
CHAPTER 1
Introduction
Page 1-26


Figure (1.14) Type A - Jet Pump (Kermit Brown, Vol 2a p453)
Several other pumping systems are available in the market. The type of
artificial lift system selected will be dependent on the well requirement and
capabilities and the availability of the resources to drive the pump lift
mechanisms such as, electricity, gas, power fluids etc.
CHAPTER 1
Introduction
Page 1-27

Chapter 1 - Introduction To Production Technology

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Chapter 1 - Introduction To Production Technology

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Curtin University of Technology

Department of Petroleum Engineering

Master of Petroleum / Petroleum Well Engineering