Sarah Tamilarasan

Reference - http://oilprice.com/Energy/Energy-General/Are-We-Nearing-A-Transition-Point-In-Oil-Production.html, “Are

We Nearing A Transition Point In Oil Production?” by Ron Patterson, Feb 09, 2016
 Reference - www.sundanceenergy.net

Even after payout – need to include Artificial lift costs $10-$15/barrel

Biggest variances - Chemicals, Workover, Maintenance, Failure of equipment
•  1. Cost of switcher or pumper to operate the wells. 
•  2. Cost of minor repair of pumps, tanks, etc. 
•  3. Grading existing roads.
•  4. Treat-o-lite and other materials and supplies consumed in operating the lease. 
•  5. Pulling sucker rods, pump, and cleaning the well. - Workover
•  6. Utilities. 
•  7. Taxes other than federal income taxes. 
•  8. Depreciation of equipment used on the lease. 
•  9. Rental of lease equipment. 
•  10. Salaries for painting and cleaning on the lease. 
•  11. Lease signs. 
•  12. Salaries of other operating personnel: farm boss, engineer, etc. 
•  13. Salt water disposal costs. 
•  14. Rental payments to mineral owner when not based on production. 
•  15. Allocable portion of overhead costs. 
•  16. Chemical costs
•  Cost - $6500/well (Materials),
Labor ($300/well), Pay back –
1.5 months, @$45/barrel
•  Production increase 5%
•  Automated the control valve to
keep Volume of Gas injection
steady
•  Optimum gas lift for Eagle Ford
350-500 mcf/d
•  Option to take an additional
step – Utilize Well Production
data to decipher optimum gas Poettmann, F.H. and Carpenter, P.G. 1952. The Multiphase Flow of
Gas, Oil and Water Through Vertical Flow Strings. Drilling & Prod.
injection for individual wells Prac. 257.
Blann, J.R. 2001. Gas Lift Optimization. Houston, Texas:J&L
Publishing.
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References - https://www.flowserve.com/sites/default/files/2016-07/Gas%20Lift%20White%20Paper.pdf. BRENT T.STEWART, BSChE, is oil and
gas industry manager, Flowserve Flow Control Division, Springville, UT. Reach him at bstewart@ flowserve.com. BRADFORD HAINES, BSME, is senior
project manager, Flowserve Flow Control Division, Springville, UT. Reach him at bbhaines@ flowserve.com.

This graph is from Angola, install cost was $47,000, (includes 8 hours of lost production),
revenue increase $23,420/day, ROI 2 days. Annual incremental revenue was 8M (article
was from 2010)
Cost of 24 hr downtime 2000 bopd @ $40/bbl, approx. $40K

Correlate the downhole pressure reading with the surface pressure to detect slugs (see
picture on next slide)

Once the differential pressure confirms the movement of a slug in the well, automated
choke would release/pinch back, alternating positions every hour, thus controlling the
flow of the well and eliminating the slug

Slugs are the primary cause for remote well shut ins as they overwhelm surface
separators.

When separators are flooded, you have oil or water crossing over to the gas stream,
which would interfere with the compressor operations or cause fire damage if passed
over to the flare line
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References - http://cas.ensmp.fr/~petit/papers/jpc12/main.pdf, Journal of Process Control - Stabilization of slugging in oil production
facilities with or without upstream pressure sensors Florent Di Meglioa,∗, Nicolas Petit a, Vidar Alstadb, Glenn-Ole Kaasa b a Centre
Automatique et systèmes, MINES ParisTech, 60 bd St-Michel, 75272 Paris Cedex 06, France b Statoil ASA, Research Center
Porsgrunn, Heroya Forskningspark, 3908 Porsgrunn, Norway
Lots of options to deliver quick returns through OPEX

Need to identify solution that fits each corporation

Collaboration with production engineers, team to implement

successfully

Take advantage of low price environment to bring innovative

solutions

Work hard, be persistent, make sacrifices to get the ROI for

your company
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