Comparative Economics of Petroleum Production Optimization Techniques
Comparative Economics of Petroleum Production Optimization Techniques.
ABSTRACT
Hydrocarbon production in the petroleum industry is often constrained by reservoir heterogeneity, deliverability and capacity of surface facilities, also optimization technique in the petroleum industry requires the execution of several iterative runs by comparing various solutions until an optimum or satisfactory solution is found.
In this study, a comparative economic analysis to aid the optimization of petroleum production was done. Two key variables, tubing sizes and choke sizes were considered, their sensitivity to production was also determined.
A prudent approach to optimizing petroleum production is by statistical and sensitivity analysis, specifically, Nodal Analysis and @Risk software were used in this work.
The nodal analysis procedure consists of selecting a division point or node in the well, the system at that point was analyzed differently to optimize performance in the most economical manner, an integral analysis of the entire production system was also considered.
Using @Risk software (Monte Carlo simulation), risk analysis of the objective function was done. Monte Carlo simulation sampling is a traditional technique for using random or pseudo-random numbers to sample from a probability distribution.
TABLE OF CONTENTS
ABSTRACT ……………………………………………………………………………………………………….. iii
DEDICATION …………………………………………………………………………………………………….. v
LIST OF TABLES ………………………………………………………………………………………………. vi
LIST OF FIGURES ……………………………………………………………………………………………. vii
CHAPTER ONE: …………………………………………………………………………………………………. 1
1.1 Background of the Study …………………………………………………………………………….. 1
1.2 Statement of Problem ………………………………………………………………………………….. 3
1.3 Aim and Objective of the Thesis ………………………………………………………………….. 3
1.4 Organization of the Thesis …………………………………………………………………………… 3
CHAPTER TWO: ………………………………………………………………………………………………… 5
2.1 Overview of Petroleum Production Optimization Techniques. …………………………. 5
2.2 The Petroleum Production Optimization Techniques. ……………………………………… 5
2.3 Production Optimization Based on Surface Tubing ………………………………………… 7
2.4 Production Inflow Performance Relationship (IPR) ………………………………………… 8
2.4.1 Vogel’s Equation …………………………………………………………………………………. 8
2.5 Production Outflow Performance Relationship (OPR)…………………………………… 10
2.6 Chokes Performance in Production Optimization …………………………………………. 12
2.7 Tubing Performance in Production Optimization ………………………………………….. 14
CHAPTER THREE ……………………………………………………………………………………………. 16
3.0 Methodology ……………………………………………………………………………………………. 16
3.1 Introduction ……………………………………………………………………………………………… 16
3.2 Statistical and Sensitivity Analysis ……………………………………………………………… 16
3.2.1 Overview of Nodal Analysis ……………………………………………………………….. 17
3.2.2 @Risk Software ………………………………………………………………………………… 19
CHAPTER FOUR ………………………………………………………………………………………………. 21
4.1 Introduction ……………………………………………………………………………………………… 21
4.2 Gilbert’s Correlation for Selecting Choke Sizes ……………………………………………. 22
CHAPTER FIVE ……………………………………………………………………………………………….. 51
5.0 Conclusion and Recommendation ………………………………………………………………. 51
5.1 Conclusions ……………………………………………………………………………………………… 51
5.2 Recommendations …………………………………………………………………………………….. 51
REFERENCES ………………………………………………………………………………………………….. 52
APPENDIX ……………………………………………………………………………………………………….. 54
INTRODUCTION
Hydrocarbon production in the petroleum industry are often constrained by reservoir heterogeneity, deliverability and capacity of surface facilities.
As optimization algorithms and reservoir simulation techniques continue to develop and computing power continues to increase, upstream oil and gas facilities previously assumed not to be candidates for advanced control or optimization have being given new considerations (Clay et al., 1998).
An optimization technique is a procedure which is executed iteratively by comparing various solutions till an optimum or a satisfactory solution is found.
However, Wang (2003) addressed some problems associated with optimizing the production rates, lift gas rates, and well connections to flow lines subject to multiple flow rate and pressure constraints to achieve certain short-term operational goals.
This problem is being faced in many mature fields and is an important element to consider in planning the development of a new field.
REFERENCES
Abel Taher MD. Ibraham, “Optimization of Gas Lift System in Large Field,” (2007).
Ali, H. M., Batchelor, A.S.J., Beale, E.M.L., and Beasley, J.F, “Mathematical Models to Help Manage the Oil Resources of Kuwait,” unpublished manuscript,” (1983).
Aronofsky, J. S., and Lee, A. S. “A Linear Programming Model for Scheduling Crude Oil Production,” J. Petro. Tech,” (July 1958).
Attra, H. D., Wise, H. B., and Black, W. M. “Application of Optimizing Techniques for Studying Field Producing Operations,” J. Petro. Tech.,” (January 1961).
Boyun Guo, William C. Lyons, & Ali Ghalambor, “Petroleum Production Engineering, A Computer Assisted Approach,” (2007).
Charnes, A., and Cooper, W. W.: “Management Models and Industrial Applications of Linear Programming”, Vol. II, John Wiley & Sons, NY,” (1961).
Clay, R.M., Stoisits, R.F., Pritchett, M.D., Rood, R.C., and Cologgi, J.R., 1998. “An Approach to Real-Time Optimization of the Central Gas Facility at the Prudhoe
Bay Field”, paper SPE 49123 presented at the SPE Annual Technical Conference and Exhibition held in New Orleans, Louisiana, 27-30 September.
Fujii, Hikari and Home, Roland: “Multivariate Production Systems Optimization in Pipeline Networks,” MS report, Stanford U., Stanford, CA,” (1993).
G.V. Chilingarian, J.O. Robertson, S. Kumar, “Surface Operation in Petroleum Production, I,” (1975).
CSN Team.
