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THE ROBERT GORDON UNIVERSITY, ABERDEEN

School of Engineering

Operational Risks Associated with Wellbore Stability in Shale Formations

Author: Juan Ramos (0614451) Subject: Business Essentials Lecturer: John Bisset Period of Study: 2007 - 2008 Date of Submission: 29th Oct, 2007

TABLE OF CONTENTS

Pag.

1. Introduction 2. Operational Risks Associated with Wellbore Stability in Shale Formations 2.1. Problem Definition 2.2. Potential Hazards 2.3 Consequences 2.4. Probability of Occurrence 2.5. Mitigation 2.6. Risk Assessment 3. Conclusions 4. References

3 4 4 4 5 5 6 6 8 8

Juan Ramos (0614451)

Business Essentials (ENM203)

1. Introduction
The oil and gas industry involve diverse activities such as exploration, drilling, production, refining and commercialization. Every operation has a risk associated which represents big challenges from a technical, economical and security point of view. One of the most significant activities is the drilling operation, which encompasses around 30-40% of total costs of the well. The present report is focus on the operational risks associated with wellbore stability during drilling shale formations. This type of formation is commonly present in almost 70% of litology column to be drilled and generally results in 60-70% of the operational problems. The main concern is attributed to chemical interaction between drilling fluid and shale, as well as the predominant in situ stress regime, rock mechanical properties, thermal effect, among other factors which are related to mechanical failure in the borehole. The main objective of this report is outline the simplest way to evaluate the risks associated with wellbore stability in drilling operation, which can be applied as a preliminary model of risk management. To define these risks, a risk management methodology was implemented, stating the most essential steps such as definition of the problem, hazardous scenarios, main consequences, probability of occurrence, mitigation and a qualitative risk assessment.

Juan Ramos (0614451)

Business Essentials (ENM203)

2. Operational Risks Associated with Wellbore Stability in Shale Formations

To define the main operational risks associated with wellbore stability in shale formations, it is essential identify previously the key elements involved in risk management, which will help to understand how this hazard situations can be mitigated. These are outlined as: 2.1. Problem Definition

The wellbore stability in shale formation will depend on the type of shale, the in situ tress environment, thermal gradient and composition of drilling fluid. It is well known that shales are clay mineral with low permeability and represent over 70% of the drilled formations. Before drilling the wellbore, the stress are in an equilibrium condition, however, when the formation is removed the drilling fluid tend to replace it providing support to the wellbore. At this stage, shale formation and drilling fluid become in contact. The situation can become unstable when the mud density is lower than the necessary to avoid the mechanical failure or when the chemical interaction results in a reduction of effective stress around the wellbore. 2.2. Potential Hazards

The hazardous situations caused by shale instability involve approximately 60-70% of the wellbore problems. These are outlined as[1]: Hole Collapse Stuck Pipe Lost Circulation Hole Enlargement Well Kick Blowout The main causes of these are attributed to shear failure or tension failure in shale, as a result of inadequate mud density, poor hole cleaning, the time exposition as well as the type of mud used (water base or oil base). Water base mud is more critical than oil base mud, due to increase the chemical interaction (capillary pressure, osmosis effect, advection, swelling, pressure diffusion, fluid penetration). The Figure 1 show some of the hazardous scenarios related to wellbore instability in shale.

Juan Ramos (0614451)

Business Essentials (ENM203)

Hole Collapse

Stuck Pipe

Hole Enlargement

Lost Circulation

Figure 1. Potential Hazards Associated with Wellbore Stability in Shale 2.3. Consequences

The consequences of wellbore instability in shale can lead to lost of downhole tools and equipments (logging, BHA, motors, Rotary Steerable System, etc) which increase the NPT (Non-Productive Time) and the total cost of the well, affecting the original budget estimated. In addition, in the worst of the cases when well become uncontrolled (blowout), the situation can be quite hazardous; hence, both human and equipment could are subjected to catastrophic injure and damage. 2.4. Probability of Occurrence

In term of probability, it is no so straightforward defining the likelihood of occurrence of one particular hazard situation previously described. However, estimation can be carried out with historical report of the field or in a qualitative way. But, the situation can be difficult in the case of exploratory well or new field where the information is limited.

Juan Ramos (0614451)

Business Essentials (ENM203)

2.5.

Mitigation

The mitigation of these operational risks can be carried out with a borehole stability model, which predicts the suitable mud density window to avoid or control the stability in the wellbore. These are based on the analysis of operational events during drilling, rock mechanic properties and the in situ stress condition (magnitude and orientation). Another way to address these operational risks are the Real Time Analysis, which provide information at the same time the well is drilled[1]. Moreover, an effective Hole Cleaning help to reduce the hole collapse. Of course, it will depend on the hydraulic analysis. Regarding to the type of mud, Oil Base Mud can be an alternative to reduce the chemical interaction between shale and drilling fluid. Nevertheless, the environmental impact and higher cost have limited its applications. Therefore, Water Base Mud could be the most suitable option in this case, provided that an optimum concentration to be achieved (inhibitor system, bridge agents, etc). Generally, these risks must be mitigated or reduced As Low As Reasonably Practicable (ALARP), depending on the tolerability criteria of each company[2]. 2.6. Risk Assessment

Once identified the potential hazards, consequences, probability of occurrence and mitigation, a risk assessment is carried out to determine the impact of wellbore instability in shale. In this case, this was estimated using a qualitative risk assessment (Table 1). Table 1. Qualitative Risk Assessment

Hazard
Hole Collapse Stuck Pipe Lost Circulation Hole Enlargement Well Kick Blowout

Consequence
Significant Significant Severe Minor Significant Significant Severe Significant Sever Catastrophic

Probability
Probable Probable Possible Possible Probable Possible

The Table 2 shows a general matrix which indicate each region where can be located every hazard associated to wellbore instability in shale.

Juan Ramos (0614451)

Business Essentials (ENM203)

Table 2. Risk Assessment Matrix

A Catastrophic

H
Blowout

CONSEQUENCE

B Severe

M
Hole Enlargement

H
Well Kick Stuck Pipe

M C Significant L M
Hole Enlargement Lost Circulation

M
Well Kick Stuck Pipe Hole Collapse

D Minor

M
Lost Circulation

E Negligible

L 1 Highly Improbable

2 Improbable

3 Possible

4 Probable

5 Frequent

PROBABILITY OF OCCURRENCE

The High Region (H) is no operationally acceptable and must be re-evaluated, the Medium Region (M) represents the ALARP zone and the risk must be mitigated, while the Low Region (L) is tolerable and no require mitigation[2]. In this case, the majority of the hazards are in the medium region except the blowout, well kick and stuck pipe.

Juan Ramos (0614451)

Business Essentials (ENM203)

3. Conclusions
Risks associated with wellbore stability in shale formations always represent a main concern in drilling operations due to its complexity structural and chemical. The hazardous situation in shale formation identified in this case (hole collapse, stuck pipe, hole enlargement, lost circulation, well kick, blowout) can change as function of the type of drilling fluid implemented (water base mud or oil mud), well architecture (vertical, horizontal, extended reach), operational expertise and downhole conditions (temperature, shale anisotropy, in situ stress, rock mechanic properties, etc). The consequences associated with wellbore stability in shale formations can be minor or catastrophic involving irreversible damage downhole tools, lost of the whole well and the most critical case, injured person. In the majority of the cases, this represent around 60-70% of operational problems, increasing the NPT and the total costs. The probability of occurrence of these events is difficult to predict when there is no available statistic information. However, qualitative estimation can be developed. Applying an effective risk management methodology, these wellbore stability risks can be reduced or mitigated. Nevertheless, it is essential implement a more detailed assessment, including quantitative information that enable drilling engineer taking the most preventive decision.

4. References
[1]. MANOHAR, L., 1999. Shale Stability: Drilling Fluid Interaction and Shale Strength. SPE 54356, Annual Technical Conference and Exhibition held in Caracas, Venezuela, 21-23 April 1999. [2]. RGU, 2007. Risk Assessment for Major Hazards [online]. Available from: https://campus.rgu.ac.uk/sso/files/ttjeulggpsrigie/HSE15.pdf. [Accessed 16 Sep 2007].

Juan Ramos (0614451)

Business Essentials (ENM203)