2015 02

JOURNAL OF PETROLEUM TECHNOLOGY www.spe.
org/jpt
FEBRUARY 2015
F E B R U A R Y 2 0 1 5 V O L U M E 6 7, N U M B E R 2
JOURNAL OF PETROLEUM TECHNOLOGY
OFFSHORE
FACILITIES
DRILLING TECHNOLOGY
WELL TESTING
FORMATION DAMAGE
FEATURES
Implications of Lower Oil Prices

Multiphase Flow Modeling
Safe Disposal of Waste Water
Reassessing Uncertainty Assessment
Feb 15_JPT_Cover.indd 1
1/16/15 7:02 AM
Oilfield Review
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*Mark of Schlumberger. 2015 Schlumberger. Other company, product, and service names are the properties of their respective owners. 14-OR-0008
Volume 67 Number 2
20 G
UESTEDITORIALNEWPRICES,OPPORTUNITIES
INNEXTWAVEOFUNCONVENTIONALRESOURCE
DEVELOPMENT
The precipitous drop in global oil prices has added another key question
to the mix of economic sustainability: At what price do unconventional
plays cease to be economically sustainable? The industry can maximize
profitability by using brainpower rather than horsepower.
40 B
EYONDTHEHEADLINESCANWASTEWATERBE
DISPOSEDOFSAFELY?
The safe disposition of waste water is an industry priority especially

because of the widely reported past missteps in Pennsylvania. It is
completely feasible and, in fact, is being broadly practiced today.
49 B
ATTLEFOROILMARkETCONTROLCOULDHAVE
ALASTINGIMPACT
Cover: A wellhead desander installed
as part of a spar topside sandmanagement system on a dry-treeunit facility in the Kikeh field offshore
Malaysia. Solid-fines production
in this deepwater environment
necessitated the development
of a unique system to optimize
production. Photo courtesy of
eProcess Technologies.
Performance Indices
10
Regional Update
12
Company News
14
Presidents Column
18
Comments
24
Technology Applications
30
Technology Update
44
E&P Notes
133
SPE News
135
People
136
Professional Services
139
Advertisers Index
140
SPE Events
Printed in US. Copyright 2015, Society of Petroleum Engineers.
The decline in crude prices was caused by a large oversupply of oil that
could linger. OPEC leaders say they want to squeeze excess production
off the market, but US and Canadian companies are sticking with their
growthplans.
56 LOWOILPRICESMAkEINNOVATIONAPRIORITY
Low oil prices present opportunities for the oil and gas industry to
innovate and strengthen its base in preparation for the next phase of
industry development, panelists said at the International Petroleum
Technology Conference held in Kuala Lumpur.
62 THENEWPATHWAYSOFMULTIPHASEFLOWMODELING
The modeling technology that enabled the industry to safely and
economically build deepwater production facilities is being refined
to address hydrates and other challenges. Programs are also being
created to help design horizontal wells and optimize production from
shaledevelopments.
70 SAUDIARAMCOTAkESASMARTAPPROACH
The Saudi Arabian oil companys upstream strategy aims to implement

theintelligent field concept in all of its upstream operations by 20162017
so it can better understand reservoirs and improve efficiency.
72 M
ANAGEMENTINDUSTRYNEEDSRE-EDUCATION
INUNCERTAINTYASSESSMENT
The oil price slide has the potential to move industry performance
from below expectations to below profitability. If we do not change the
corporate culture and incentives regarding uncertainty assessment, chronic
underperformance will persist for decades.
An Official Publication of the Society of Petroleum Engineers.
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78 Drilling Technology
Mike Weatherl, SPE, Deepwater Consultant, Apache
79 Drilling of Multilateral Wells in Kuwait Aided With

GeochemicalAnalysis
84 Managed-Pressure-Drilling Technology in Offshore HP/HT

Gas/Condensate Fields
87 Unique System for Underbalanced Drilling Using Air in the

MarcellusShale
90 Advanced Technologies and Solutions for Challenging

DrillingApplications
Rhino RHE
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TECHNOLOGY
94 Offshore Facilities
Ian G. Ball, SPE, Technology Adviser and Project Manager, Intecsea
95 Mars-B Development: An Evolution of Traditional Well, Rig,

andFacility Design
100 Moorings Replacement and Hookup for a Damaged

North Sea FPSO
104 Upgrade of Spar Topside With Comprehensive

Sand-ManagementSystem
i-DRILL system design ensures

reamer placement does not interfere
with RSS directional capabilities.
108 Well Testing

Angel G. Guzmn-Garcia, SPE, Independent Energy Consultant
109 Modeling Transient Wellbore Temperature During Diagnostic

FractureInjection Tests
112 Creating Value With Permanent Downhole Gauges in Tight

GasAppraisal Wells
116 Tactics for Use of Diagnostic Fracture Injection Tests in
Dual-reamer system
enlarges rathole, avoids
arun, and saves 16 hours
on a deepwater rig.
Unconventional Reservoirs
120 Formation Damage

Niall Fleming, SPE, Leading Adviser, Well Productivity and
Stimulation, Statoil
121 Improving the Interpretation of Formation-Damage Laboratory Tests

126 Modeling Formation Damage and Completion Geometry in
theGydaReservoir
129 Fines Migration in Fractured Wells: Integrating Modeling With

Fieldand Laboratory Data
Read the case study at
slb.com/RhinoRHE
The complete SPE technical papers featured in this issue are available
free to SPE members for two months at www.spe.org/jpt.
ASSURING
WELL INTEGRITY
Saved by averting unnecessary remediation

The story behind the number
A Williston Basin client failed to meet top-of-cement regulations
in nine wells based on a low-frequency cement bond log.
We depoloyed the high-frequency UltraView technology, which
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SPE Bookstore
PERFORMANCE INDICES
wORlD CRuDE OIl PRODuCtION+
tHOuSAND BOPD
OP EC
2014 APR
MAY
JUN
JUL
AUG
SEP
Algeria
1420
1420
1420
1420
1420
1420
Angola
1770
1710
1690
1690
1740
1770
560
554
555
558
558
551
Iran
3230
3230
3230
3230
3230
3230
Iraq
3300
3325
3325
3195
3205
3515
Kuwait*
2650
2650
2650
2650
2650
2650
210
230
235
435
530
785
Nigeria
2420
2320
2470
2470
2520
2470
Qatar
1573
1573
1573
1583
1583
1583
Saudi Arabia*
9690
9690
9690
9840
9740
9640
uAE
2820
2820
2820
2820
2820
2820
Venezuela
2300
2300
2300
2300
2300
2300
31943
31822
31958
32191
32296
32734
Ecuador
libya
TOTAL
tHOuSAND BOPD
Available in Digital Version Only
Advances in Well Control
NON-OPEC
2014 APR
MAY
JUN
JUL
AUG
SEP
Argentina
515
528
530
525
529
540
Australia
340
328
369
356
350
338
837
872
852
845
840
834
Brazil
2146
2189
2246
2267
2326
2358
Canada
3476
3397
3457
3509
3447
3867
China
4132
4181
4259
4084
4118
4175
Colombia
935
950
1008
971
1028
992
Contents
Denmark
163
172
109
159
173
165
New kick etection techniques
Egypt
486
483
480
477
474
471
Kick-control proce ures
Eq. Guinea
248
248
248
248
248
248
A vancements in pressure control equipment
Gabon
240
240
240
240
240
240
This edition of the SPE reprint series focuses

on recent advances in well control over the last
few years and provides a comprehensive list of
technical studies covering a diverse category
of topics.
Azerbaijan
Deepwater operations
India
772
761
778
757
728
758
Blowout control an contingency planning
Indonesia
790
800
800
800
800
800
1644
1564
1517
1641
1646
1559
590
587
586
560
562
568
Mexico
2518
2530
2476
2427
2455
2430
Norway
The entire collection, which includes 35 papers,

provi es a well-balance combination of
technical stu ies an in ustry best practices
to be implemente in the el .
Visit our online bookstore at

www.spe.org/go/books to purchase.
Kazakhstan
Malaysia
1603
1376
1452
1605
1541
1548
Oman
924
936
957
957
953
958
Russia
10083
10083
10095
10003
10056
10079
Sudan
261
260
259
258
257
257
23
23
23
23
23
22
Syria
uK
uSA
820
869
753
706
468
747
8436
8586
8599
8650
8696
8864
Vietnam
301
297
305
288
304
288
Yemen
123
121
127
129
128
126
Other
2459
2480
2582
2517
2537
2527
Total
44865
44862
45106
45003
44927
45760
Total World
76808
76684
77064
77194
77224
78494
JPT FEBRUARY 2015
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PERFORMANCE INDICES
HENRy Hub GulF COASt NAtuRAl GAS SPOt PRICE*
6
5
Behind
every
winner
is a
great
nomination
4
3
uSD/Mil. btus
NOV
OCT
SEP
AUG
JUL
JUN
MAY
APR
MAR
FEB
2014
JAN
DEC
WORlD CRuDE OIl PRICES (uSD/bbl)

108.12
94.62
108.90
2014 JAN
109.54
107.48
FEB
102.18
111.80
MAY
97.09
100.82
105.79
87.43
SEP
107.76
MAR
106.77
JUN
93.21
100.80
APR
103.59
101.61
JUL
84.40
79.44
OCT
102.07
96.54
AUG
75.79
62.34
NOV
59.29
DEC
Brent
WTI
WORlD ROtARy RIG COuNt
Nominate a colleague for

outstanding work in the E&P industry.
Now until 15 February, the
Society of Petroleum Engineers is
accepting nominations for
outstanding work in the E&P industry.
Visit www.spe.org/go/NomAwards
for more information on nominating
a colleague today.
R EG I O N
2014
JUN
JUL
AUG
SEP
OCT
NOV
DEC
uS
1861
1876
1904
1930
1925
1925
1882
Canada
240
350
399
406
424
421
375
latin America
398
407
410
402
393
375
369
Europe
147
153
143
148
148
149
148
Middle East
425
432
406
396
390
403
403
Africa
123
137
125
117
125
142
138
Asia Pacific
251
253
255
260
252
255
255
3445
3608
3642
3659
3657
3670
3578
TOTAL
WORlD OIl SuPPly AND DEMAND 1

MIllION bOPD
2013
2014
4th
1st
2nd
3rd
SUPPLY
90.79
90.94
91.56
92.27
DEMAND
91.29
90.25
90.86
92.35
Quarter
INDICES KEY
+
*
Figures do not include NGLs and oil from nonconventional sources.

Includes approximately one-half of Neutral Zone production.
Includes crude oil, lease condensates, natural gas plant liquids, other hydrocarbons for refinery feedstocks, refinery
gains, alcohol, and liquids produced from nonconventional sources.
Source: Baker Hughes.
The US Dept. of Energy/Energy Information Administration discontinued its reporting of US Natural Gas Wellhead
Prices, replacing them with Henry Hub Gulf Coast Natural Gas Spot Prices.
Source: US Dept. of Energy/Energy Information Admin.
JPT FEBRUARY 2015
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Oil & Gas environments, Arlon 3000 XT has a Tg 35F
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In coin extrusion testing at 35 ksi and 550F (288C),
this innovative material outperformed both virgin and
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efcient and reliable operations in extreme conditions.
Coin Extrusion Test & Results: PEEK (left)/Arlon 3000 XT (right)

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REGIONAL UPDATE
AFRICA
Eni finished a production test on its
Minsala Marine 1 NFW well, located in
Marine XII block, 35 km offshore The
Republic of the Congo. During the test,
the well delivered natural flow in excess
of 5,000 B/D of 41 API crude and
14MMcf/D of natural gas from a 37-m
opened section of the discoverys 420-m
column. Eni (65%) is operator, with stateowned partner SNPC (25%), and New Age
(African Global Energy) Limited (10%).
ASIA
CNOOC started natural gas production
from the Panyu 34-1/35-1/35-2 project at
the Pearl River Mouth basin in the South
China Sea. Main production facilities
for the three gas fields include one
comprehensive platform, two sets of
underwater production systems, and 13
producing wells. Two wells are producing
a total of 21 MMcf/D of gas. The project
is expected to reach peak production of
150 MMcf/D. CNOOC is operator and holds
100% interest.
AuStRALIA
Santos discovered wet gas at its
Varanus South-1 well on PEL 513 of
Australias Cooper basin. The well was
drilled to a total depth of 3154 m, and
after preliminary interpretation of wireline
logs was found to contain an aggregate
best estimate of 18 m of net gas pay over a
gross interval of 365 m in the Patchawarra
formation. An additional net 9 m of
hydrocarbon pay was detected in the
Tirrawarra formation over a gross interval
of 37 m. Santos (60%) is the operator with
partner Drillsearch (40%).
tAG Oils Cheal-E-JV-6 well, located in

New Zealands Taranaki basin, intersected
a net 9 m of hydrocarbon-bearing sands
in the Mt. Messenger formation. The well
was drilled to a total depth of 1939 m and
is being cased and suspended for future
testing and possible production, pending
results. TAG (70%) is operator with partner
East West Petroleum (30%).
Logging data acquired during the

drilling of Origin Energys Speculant-1
exploration welllocated 3 km offshore
southern Victoria, in permit VIC/L1 of
10
the Otway basinindicated gas within

sands in the Waarre formation. Wireline
formation-pressure data confirmed the
presence of a gas column of approximately
145 m within the Waarre C formation.
Further evaluation of secondary targets is
under way. Origin is operator of the permit
and holds 100% interest.
OMV started producing oil from the

Maari Growth Project at Maari field,
80km offshore south New Zealand. The
campaign includes drilling of five wells
into producing and new reservoirs and will
represent a USD-205-million investment
by the time it reaches its conclusion in the
first half of 2015. The first well, MR-8A was
sidetracked out of an abandoned injection
well and drilled horizontally into the Moki
formation. It is estimated that MR-8A will
achieve a 4,500-B/D peak flow rate. OMV
(69%) operates the project with partners
todd Maari (16%), Horizontal Oil (10%),
and Cue taranaki (5%).
EuROPE
Palomar Natural Resources spudded
the Rawciz-12 appraisal well in Polands
southern Permian basin, in the Rawciz
concession. The well is targeting a
natural gas accumulation in the Permian
Rotliegendes sandstones and will be
drilled to a total depth of 1900 m. Palomar
(65%) operates the concession with
partner San Leon Energy (35%).
MIDDLE EASt
Marathon Oil KDVa wholly owned
subsidiary of Marathon Oildiscovered
multiple stacked oil- and gas-producing
zones at its Jisk-1 exploration well in the
Harir block of Iraqs Kurdistan region. The
well reached a total depth of 15,000ft
and encountered Jurassic and Triassic
reservoirs. Drillstem testing yielded
6,100B/D of oil and nonassociated gas
flowing at a rate of 1015 MMcf/D. The well
was cased and suspended as a potential
producer. Marathon (45%) operates the
block with partners total (35%) and the
Kurdistan Regional Government (20%).
NORtH AMERICA
Cuttings from Linc Energys Pata
1 exploration welllocated in Alaskas
Arckaringa basinshowed evidence
of oil in the Stuart Range formation,

starting below 1039 m. Fluorescence was
found in a siliceous siltstone with minor
fine-grained sandstone and increased
with depth from approximately 10% at
the top of the unit to 90% at the base
of unit. The cuttings were sent to a
laboratory in Brisbane, Australiawhere
the company is basedfor more testing.
Linc is operatorand holds 100% interest
in PEL121.
Chevron started producing oil and

natural gas from the Jack/St. Malo
project in the US Gulf of Mexico, which
is estimated to promise peak production
of 94,000 B/D and 21 MMcf/D. Oil and
gas from the Jack and St. Malo fields,
which lieapproximately 25 miles from
each other, are transported to an export
pipeline and then to the Green Canyon 19
Platform which connects with refineries on
the coast. Chevron operates the two fields
and the host facility. Statoil, MaerskOil,
Petrobras, Eni, and ExxonMobil each
participate at different levels within some
or all of the three jointventures.
SOutH AMERICA
Karoon Gas Australia detected
five separate oil-bearing zones at
its Kangaroo-2 well, offshore Brazil
in the Santos basin. Pay zones were
encounteredin Paleocene- and
Maastrichtian-aged formations, each
witha separate oil/water contact. The
gross oil column totals 250 m with no
gascap. Karoon will conduct wireline
logging and drill a possible sidetrack for
coring, depending on log results. Karoon
(65%) is operator of block S-M-1165 with
partner Pacific Rubiales(35%).
Ecopetrol discovered the presence of

oil at its Nueva Esperanza-1 exploratory
well in block CPO-9, Meta, Colombia.
Afterbeing drilled to a total depth of
12,056 ft, an eight-day flow test was
conducted using an electrical submersible
pump. The result was a stabilized daily
910 B/D of 8 API crude with less than
2% water cut. Nueva Esperanza-1 is the
second oil discovery by Talisman and
Ecopetrol in block CPO-9, following
the discovery of hydrocarbons in the
Akaciastructure. Ecopetrol (55%)
is operator withpartner talisman
Energy(45%). JPT
JPT FEBRUARY 2015
Vessel-based means
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FMC Technologies now ofers vesselbased deepwater Riserless Light Well

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intervention costs by 40 - 50%. Its all
part of our new emphasis on services
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substantial cost savings and increased
productivity for the life of the feld. Learn
more at www.FTOServices.com
Copyright FMC Technologies, Inc. All Rights Reserved.
www.fmctechnologies.com
COMPANY NEWS
MERGERS AND ACQUISITIONS
Bellatrix Exploration acquired assets
inthe Alder Flats area of west central
Alberta, Canada, from an unnamed
producer for approximately USD 118
million in cash. The acquisition increases
the buyers output by approximately
2,200BOEPD (80% natural gas, 20%
liquids). The transaction increases Bellatrixs
net working interest within the Mannville
formation by 57.3% (to approximately
96.9%) over 10 grosssections.
Southwestern Energy signed an

agreement to purchase oil and gas assets
in the Marcellus shale from WPX Energy
for USD 300 million. The deal includes
46,700 acres in northeast Pennsylvania,
with daily production of about 50 MMcf/D
from 63 operated gas wells. As part of the
transaction, Southwestern will assume
transportation capacity of 260 MMcf/D
of natural gas, predominantly on the
Millennium pipeline. The deal is expected
toclose in the first quarter of 2015.
Carnarvon Petroleum agreed to

sell its remaining 20% interest in assets
in Thailands Phetchabun basin to The
Berlanga Group for a cash consideration
of approximately USD 58.2 million, which
includes working capital of approximately
USD 8.2 million. The sale is expected to
close in the first quarter of 2015.
BG Group sold its wholly owned
Shell Petroleum Development

Company of Nigeria completed the sale
of its 30% interest in Oil Mining Lease
24 and related facilities in the East
Niger Delta to Newcross Exploration
and Production for a cash price of
approximately USD600million. The lease
covers an area of around 430 km2 and
includes the Awoba, Awoba Northwest,
andEukalama fields and facilities. The
divested infrastructure includes three oil
flow-stations and three gas-processing
plants, in addition to various oil and gas
pipelines. The divested fields produced
around 13,000 BOEPD during the first
half of 2014. Total E&P Nigeria (10%) and
Nigeria Agip Oil Company (5%) have also
sold their interests in the lease, ultimately
leaving Newcross with a 45% interest.
COMPANy MOvES
Oil and gas safety company Secorp
opened a new office in Hobbs, New Mexico.
The location will offer a wide range of
services, including H2S protection, gas
detection, confined space and highangle rescue equipment, fall protection,
emergency shower trailers, cooling trailers,
and safety training seminars. The office
will allow for dispatch of rapid-response
teams to clients operating in the northern
PermianBasin.
subsidiary QCLNG Pipeline to Australias

APA Group for USD 5 billion. QCLNG
Pipeline owns a 543-km underground
pipeline network that links BGs natural gas
fields in southern Queensland to a twotrain liquefied natural gas export facility
at Gladstone on Australias east coast. The
transaction is expected to close in the first
half of 2015.
Riser and conductor engineering firm

2H Offshore has relocated to larger office
spaces in Kuala Lumpur, Malaysia and
Perth, Australia. Both offices have improved
facilities, additional meeting rooms, and
enhanced conference rooms.
Apache sold its 13% stake in the
won an approximately USD-27-million

contract from BG Group to provide
3D electromagnetic data acquisition in
Uruguay. The services will be conducted
using the vessel EM Leader and are
expected to take 3.5 months to complete.
Wheatstone LNG terminal in Western

Australia and 50% interest in the Kitimat
liquefied natural gas (LNG) project in
northern British Columbia to Woodside
Petroleum for USD 2.75 billion. Under the
terms, Apache will sell its equity ownership
in Apache Julimar, through which it
owned the Wheatstone stake and a 65%
interest in WA-49-L block, which includes
the Julimar/Brunello fields off Western
Australia. Apache will also receive an
12
additional USD1billion to reimburse its net

expenditure in both projects.
CONTRACTS
Electromagnetic Geoservices
Icon Offshore Group was awarded

multiple contracts, with a combined
value of approximately USD 12.3 million,
to provide offshore support vessels in
Malaysia. Icon will supply a straight supply
vessel to EQ Petroleum Production

Malaysia and received contract extensions
to provide one utility supply vessel and
one anchor handling tug/supply vessel to
unnamed operators. The new contract has
a firm period of two years with option for a
one-year extension.
UK-based ground engineering specialist

Keller Group won a USD-177-million
contract to supply and install precast piles
in the Caspian region. Mobilization will start
immediately and the initial phase of work,
valued at USD 25 million, is scheduled to be
completed in the first half of 2015.
BP awarded a USD-750-million
contractto Wood Group PSN for
delivery of engineering, procurement,
and construction services to six UK
continental shelf offshore upstream assets
and the Forties Pipeline System onshore
midstream facilities in Grangemouth, UK.
The contract includes options for two,
one-yearextensions.
Ennsub was awarded a contract worth

USD 2 million by marine geotechnical
survey company Benthic to design and
build a portable launch and recovery
system for its remotely operated survey
vehicles. The system will feature active
heave compensation and 3000-m
deployment capability and will be
configured to allow the mobilization of
Benthics portable, remotely operated
drilling units on a wider range of vessels
than was previously possible. The
equipment is estimated to take around
eight months to design and build. It
will undergo detailed commissioning in
the second half of 2015 and commence
operations later in the year.
Bumi Armada Berhads wholly owned

subsidiary Bumi Aramada Offshore
Holdings was awarded a contract worth
about USD 1.18 billiontogether with joint
venturer Armada Gema Nusantarato
supply and operate a floating production,
storage, and offloading vessel for HuskyCNOOC Madura Limited. The vessel will be
used at the Madura BD field, approximately
10 miles south of Madura Island, offshore
Indonesia. The contract has a firm charter
period of 10 years with options for
fiveannual extensions. Operations are
expected to start in the fourth quarter
of2016.JPT
JPT FEBRUARY 2015
Mangrove
ENGINEERED STIMULATION DESIGN

IN THE PETREL PLATFORM
PetroChina Changqing beats previous-best

horizontal well production by more than 50%.
PetroChina Changqing used Mangrove* workow in the Petrel* E&P software platform to capture the complexities
of the Ordos basin. The engineered fracturing design helped improve reservoir-to-wellbore connectivity while
cutting fracturing uid consumption and pressure drawdown in half. Three months after the wells were completed,
sustained production rates were 50% higher than the previous-best ofset horizontal well.
Read the case study at
slb.com/Mangrove
ENERGY 360
SPE BOARD OF DIRECTORS

OFFICERS
Listening Loudly to Our

Members and Our Industry
Helge Hove Haldorsen, 2015 SPE President
2015 President
Helge Hove Haldorsen, Statoil
2014 President
Jeff Spath, Schlumberger
2016 President
Nathan Meehan, Baker Hughes
Vice President Finance
Janeen Judah, Chevron
REGIONAL DIRECTORS
SPE is unique by design. It is global, it is not-for-profit, it exists

for the benefit of its large and diverse membership of 143,000
and the technical content of SPEs programs is developed by its
members. Hence, SPE is an organization in which the primary beneficiariesthe workers and the customers are the same
peoplethe members! SPEs mission and vision (see boxes)
provide us with a world of opportunity to serve our members
and the exploration and production (E&P) industry as a whole.
At any time, there are hundreds of new initiatives that SPE could consider in delivering
an improved value proposition to our members and the E&P industry we serve.
The SPE Board of Directors, elected as global representatives of the members, allocates SPEs resources across a portfolio of member services in alignment with SPEs
approved strategic plan and the more specific strategic objectives. The Annual Technical Conference and Exhibition (ATCE) in October 2014 in Amsterdam gave us the opportunity to hear from two important groups: senior industry executives and young
professionals (YPs). We wanted to hear their ideas, desires, and concerns for improving SPEs value proposition from their vantage point.
Initiated about 7 years ago, the Industry Advisory Council (IAC) is an international group of senior E&P executives. The IAC meets annually during ATCE. The
Amsterdam venue allowed for greater participation by representatives of European
companies, along with US and Middle Eastern participants.
The IAC strongly recommends that SPE continues to focus on its core mission. In
doing so, SPE provides timely, objective E&P context for its members (e.g., E&P costs
are too high, the industrys competitiveness is being eroded, communities expect more
of us, our field forecasts are often too optimistic, and more than 80% of project risks
are nontechnical risks). The Society also provides sharing of the latest relevant technology, tools, and the best practices with members quickly to improve health, safety,
security, environmental, and social responsibility (HSSE-SR) practices and the industrys overall value creation.
The IAC also noted that if SPE continues to listen to our industrys and our members needs, the Societys sharing arenas and conferences will be preferred by the E&P
industry because of its spot-on relevance. The IAC
would further like to see more focus on the importance of the integration of disciplines and field
development teamwork through sessions with
more case study focus. I say: Let us make 2015
the year of massive cross-discipline collaboration. E&P value creation is a jigsaw puzzle
with many pieces to offer. The role of the
project integrator is to orchestrate ways
of getting great pieces (ideas) from all disciplines such that we end up with the best
looking field development picture we can
in terms of value creation and forecasts (of
AFRICA
Anthony Ogunkoya,
TBFF Upstream Oil and Gas Consulting
CANADIAN
Darcy Spady, Sanjel
EAStERN NORtH AMERICA
Bob Garland, Tetra Technologies
GulF COASt NORtH AMERICA
Bryant Mueller, Halliburton
MID-CONtINENt NORtH AMERICA
Michael tunstall, Halliburton
MIDDlE EASt
Fareed Abdulla, Abu Dhabi Co. Onshore Oil Opn
NORtH SEA
Carlos Chalbaud, GDF Suez E&P UK
NORtHERN ASIA PACIFIC
Ron Morris, Roc Oil (Bohai)/Roc Oil (China)
ROCky MOuNtAIN NORtH AMERICA
Mike Eberhard, Anadarko Petroleum
RuSSIA AND tHE CASPIAN
Anton Ablaev, Schlumberger
SOutH AMERICA AND CARIBBEAN
Anelise Quintao lara, Petrobras
SOutH ASIA
John Hoppe, Shell
SOutH, CENtRAl, AND EASt EuROPE
Matthias Meister, Baker Hughes
SOutHERN ASIA PACIFIC
Salis Aprilian, PT Pertamina
SOutHwEStERN NORtH AMERICA
libby Einhorn, Concho Oil & Gas
wEStERN NORtH AMERICA
tom walsh, Petrotechnical Resources of Alaska
TECHNICAL DIRECTORS
DRIllING AND COMPlEtIONS
David Curry, Baker Hughes
HEAltH, SAFEty, SECuRIty, ENVIRONMENt,
AND SOCIAl RESPONSIBIlIty
trey Shaffer, Environmental Resources Management
MANAGEMENt AND INFORMAtION
J.C. Cunha, Chevron
PRODuCtION AND OPERAtIONS
Shauna Noonan, ConocoPhillips
PROJECtS, FACIlItIES, AND CONStRuCtION
Howard Duhon, Gibson Applied Tech PF&C
RESERVOIR DESCRIPtION AND DyNAMICS
Olivier Houz, KAPPA Engineering
DIRECTOR FOR ACADEMIA

Dan Hill, Texas A&M
AT-LARGE DIRECTORS
khaled Al-Buraik, Saudi Aramco
To contact the SPE President, email president@spe.org.
14
liu Zhenwu, China National Petroleum Corporation
JPT FEBRUARY 2015
schedule, cost, production, reserves, and similar) actually resembling actuals. The industry needs better integrators or people with a good understanding and links to all parts of the business, thus making them understand the totality of the challenge
and opportunity. SPEs recent Leadership Academy is an early
response to this need. Further, if a persons competence profile
is a T and the stem of the T is a members core professional or
discipline competence, the IAC would like to see SPE increasingly help members develop the bar of the T, which represents
the various key nontechnical skills in the E&P industry, such as
HSSE-SR, project management, teamwork, decision analysis
and great communication skills.
The IAC appreciates the Societys continued focus on quality in everything we do and pointed out that growth does not always have to be our goal.
One particular area in which the IAC would like to see SPEs
role grow is public awareness: communicating facts about our industry to the public. While all agree that SPE should not be a lobbying organization, there are valuable things that SPE can do. As
regulation and government action are driven by public opinion,
the IAC suggested that a top priority for SPEs 143,000 members,
wherever they live, is to become E&P ambassadors. The Society
should provide its membership with clear, simple, factual, and
science-based messages to share with the public along the lines
of: This is how we help supply energy to 7.2 billion people every
day in a sustainable manner. We are a key part of the solution,
not the problem, and we are very proud of our achievements.
As the worlds population grows to 9 billion by 2040, all of the
above energy sources will be needed to supply the world with
the energy required (including the 1.3 billion people today without electricity) in a sustainable and affordable manner.
The final IAC recommendation was for SPE to really prioritize YPs as they are the future of the industry. Later, during
ATCE week in Amsterdam, we did just that.
Expanding our work on public awareness was part of
SPEs Strategic Plan (http://www.spe.org/about/strategicplan.
php). We already have launched a hydraulic fracturing website
with nontechnical information (http://www.energy4me.org/
hydraulicfracturing/), introduced a Beyond the Headlines
column in JPT, and are working on developing additional materials to equip our members to help us in educating the public.
On 30 October, following ATCE, a small group of Board and
staff members had the opportunity to meet with a very different constituency: a group of 22 YPs from around the globe. Recognizing that most of our Board members have been in the industry for 20 years or more, we wanted to get the views of YPs
on what they would like to see in SPE 2.0: The SPE of the Future.
We structured the days activities as an innovation event,
gathering ideas around things that SPE can or should do to address future trends and respond to the needs of our next generation energy professionals. During the first portion of the day,
the participants quickly generated nearly 300 individual ideas
for new SPE programs and services, and changes to existing
ones. Next, the participants looked for common themes among
JPT FEBRUARY 2015
the ideas and began focusing on the most valuable changes that
SPE could make from the viewpoint of YPs.
The group selected five areas it fleshed out in greater detail. They are:
Personalization (SPE4Me). YPs want a much more
personalized experience on the SPE website and in
communications that are tailored to their specific
interests and giving them a greater control over the
process.
Volunteerism. By better articulating volunteer
opportunities and recognizing those who do, SPE will
grow and be enhanced and gain company support for
members who want to volunteer. There was a clear
sentiment that SPE can better explain and convey
the amazing value proposition inherent in an SPE
membership, especially in the direction of potential
SPE members with nonpetroleum engineering
background in the geosciences, financial analysis, risk
analysis, project management, and HSSE-SR areas. In
the process, SPE could be creating a bigger tent and
create more cross-discipline collaboration as stressed
by the IAC.
Member Engagement and Loyalty. Concepts around
engaging our members throughout their career journey
from student through retirement and beyond.
Skill Development. To help YPs develop their skills, SPE
should offer nontechnical skill courses and technical
training. Competency management and assessment
(such as the new system launched at ATCE) is a valuable
resource to help YPs take charge of their own career.
Gender and Diversity. YPs perceive a gap in the
treatment of women, particularly those with children,
in the industry. The group worked on defining what
SPE could do with networking and other approaches to
support them.
SPEs Board committees will be taking the input received
during the YP innovation session and determine how we can
implement suggestions. In many cases, we can tweak an existing program. For those that require new initiatives, we will need
to evaluate how they fit with the other suite of possible programs and services that SPE could provide.
When asked about the challenges facing SPE and the industry in the next 5 to 10 years, YPs were a bit more attuned to
social media and the possibilities that new technology and increased connectivity offers (leading to new business models for
old businesses such as Uber and airbnb) than Board members
and the IAC might be. Generally, however, their major concerns
mirror those of others in the industry, such as:
Oil price instability
Rising development costs and the high break-even of
new barrels
Sufficiently rapid dissemination of tools, technology,
experience, and best practice
15
ENERGY 360
The competitiveness of oil and gas vs. other energy
sources
Generational shifts (the big crew change)
Regulations on carbon emissions
Maintaining quality and avoiding SPE mission creep
(SPE cannot be everything to everyone)
Operating safely, responsibly, and sustainably
The publics view of the industry and maintaining
the publics trust through strong, local stakeholder
engagement
SPEs Board welcomes the input of the membership as we
fulfill our obligations to determine how SPE should constantly
renew and adapt to stay fit in the view of its members and the
industry by allocating its available resources to programs and
services that will benefit them. We will systematically be reviewing our portfolio of offerings with a critical eye to member bang
for the buck while listening loudly for your input. When the famous Canadian hockey player Wayne Gretzky was asked why he
was so good he said, Because I go to where the puck is going to
be before it goes there. Henry Ford said, If I asked people what
they wanted, they would have said a faster horse. While SPE is
coming up with incrementally faster horses, we also need to
look for cars that can radically improve the SPE value proposition for our members utilizing the e-latest and e-greatest to better and more quickly and more precisely inform, communicate,
innovate, form arenas, networks and special interest groups.
As I write this column in January 2015, I believe we may
have a new normal both short and long term in the E&P industry. Brent and West Texas Intermediate oil prices are now at
or below USD 50/bbl (more than 50% less than the June 2014
price) and most analysts forecast that the oil oversupply situation (currently around 1.82 million BOEPD) could last for quite
a while and that oil prices as a consequence could stay lowish
most of 2015 and into 2016 as cutbacks and drilling and natural
decline reduce supply. Further barring geopolitical mega events
affecting oil supply, they do not see us returning to a USD100
125/bbl oil price band anytime soon. This outlook spells a need
for serious adaptation, creative deconstruction and cost reductions across the board for a margin business like E&P. Activist
SPE MISSION
To collect, disseminate, and exchange technical knowledge

concerning the exploration, development, and production of
oil and gas resources, and related technologies for the public benefit; and to provide opportunities for professionals to
enhance their technical and professional competence.
SPE VISION
Enable the global oil and gas exploration and production

industry to share technical knowledge needed to meet the
worlds energy needs in a safe and environmentally responsible manner.
16
investors say that E&P should stop thinking they are so specialyou should think of yourself as safely manufacturing oil
and gas in a low-cost manner, learning supply chain from other
manufacturing businesses. They also suggest we X-ray our companies for bad or nice to have costs (in departments we do not
really need) and become more competitive by cutting. CERA
Week 2014 concluded that 100 is the new 20 and now analysts see us having to make a satisfactory return for investors
with only USD 7580/bbl being the new 20. Remember though,
that the best cure for a low oil price is a low oil priceso we are
already taking the medicine. While I certainly cannot and will
not predict what oil prices will be as you read this in February
2015, I do believe it is important to discuss how SPE is addressing the low oil price situation. We will be listening loudly for
your input.
Last August, when prices were still above USD 100/bbl,
SPEs staff leadership team undertook a planning exercise on
how to respond should oil prices fall to USD 65/bbl. At the time,
no one knew how imminent such a situation might be. As the
staff team considered how lower oil prices would affect SPEs
business (e.g., reduced number of exhibits, fewer sponsorships,
less advertising, and reduced meeting attendance), it also proposed principles to guide SPEs reaction to a short-term (1- to
2-year) price drop:
We are here to serve the industry and our members,
whether the industry is doing well or not.
We are more concerned about helping our members
than preserving revenue or profit.
We will explore growth opportunities that may be
presented by a downturn (such as purchasing an event
from a commercial provider).
We will position ourselves for the recovery by taking
a long-term view, while also preparing in case the
downturn is prolonged.
SPE has healthy financial reserves that allow us to take a
long-term view. SPE staff and the SPE Board will be scrutinizing and prioritizing SPEs budget for its fiscal year 2016 (1 April
201531 March 2016). We believe that we do not have to take
immediate drastic actions beyond showing much more fiscal
discipline and restraint. I am pleased to be leading an organization that can establish guiding principles like those above, and
I know that SPE will be able to continue delivering value to its
members even if oil prices remain low for a while.
In my book, the best response to a downturn is to attend SPE
arenas to get fresh innovative ideas for boosting revenues and
smartly reducing bad costs rather than building a moat around
your company and staying away from all the good ideas you could
capture, adapt, and apply at home. Ask: Can we afford not to go
(and miss out on all the good ideas) rather than can we afford to
go! Just one great idea from an SPE meeting can mean millions
on the bottom line of your company when implemented at home.
For my part, the key is to continue to listen loudly to our members and the industry we serve, since we are in thistogether. JPT
JPT FEBRUARY 2015
TWO MILLION
CHALLENGING FEET
The AST is being used in an increasing number of applications:
STRINGERS
By September 2014, the patented Anti Stick-slip Tool (AST) from

Tomax passed its two million feet milestone. The AST is typically
used where the drilling is predicted to be challenging, and this is
what makes the two million feet mark particularly signicant. The
AST is a mechanical regulator placed downhole that simply saves
the drilling system from being overloaded if the drill-bit bites too
deep. By absorbing the excessive forces (torsional and/or axial),
the AST also acts as an energy store that automatically feeds its
energy back to the drill-bit if loading drops. The improved stability
provided by the AST allows the driller to put more power into the
system from surface, in order to increase the Rate of Penetration
(ROP) - without increasing the risk from vibrations. The expanded
operational window also permits use of more aggressive drill-bits
that can yield further ROP improvements.
ENLARGEMENT
Contact us:
Aberdeen:
Houston:
Stavanger:
Rio de Janeiro:
+44 1224 561313

+1 713 557-7542
+47 51 95 11 70
+21 3497-5083
PERFORMANCE INTERVENTION
Depth (ft)
6000
Agressive/Unlimited bit
8500
Conventional bits
10 000
11 500
13 000
14 500
5
The AST is a leading solution for bolt-on vibration mitigation

globally. The technology is in regular use by the largest global
ofshore operating companies, as well as lead shale play
operators. Learn more about the AST and how to deploy it at
tomax.no
ROUGH SEAS
10
Time (days)
15
20
Side-by-side progress curves from a recent well. A radical

improvement in ROP and reduced BHA runs deliver big
savings in hard carbonates.
COMMENTS
EDITORIAL COMMITTEE
Syed AliChairperson, Technical Advisor,
Schlumberger
Francisco J. Alhanati, Director, Exploration

& Production, C-FER Technologies
Just Another Cycle?

John Donnelly, JPT Editor
One question raised about the sharp slide in global crude oil
prices is whether this is just another cycle in a volatile business
that has certainly seen its share of ups and downs, or a more
significant shift in the relationship between producers, namely
OPEC, and consuming countries. The current situation has been
painted as a battle over market share between Saudi Arabia and
North American operators that have achieved enormous success
ramping up the output of unconventional supplies in places such
as North Dakota, Pennsylvania, and south Texas.
Similarities between the current state of the oil market and the mid-1980s cannot
be avoided. Then, Saudi Arabias oil policy change that was intended to keep or gain market share sent prices plummeting. It took approximately 2 decades for prices to recover,
which led to more streamlined operations by operators and a rash of major mergers and
acquisitions. It also led, in part, to a significant shift in how industry research and development and technology innovation occurred, as major operators ceded that function to
the large service companies, which became the chief drivers of innovation.
Since the 1990s, Saudi Arabia has been the industrys swing supplier, adding or
subtracting supplies to the market to keep supply/demand and prices in balance. For
OPEC members, heavily dependent on current and future oil revenue, a stable oil price
and surety of demand are paramount. Saudi Arabia Oil Minister Ali al-Naimi has said
that he believes that higher-cost non-OPEC production, including US tight oil, will be
driven out of the market if low oil prices persist. The effect of this is already occurring as oil prices have fallen by roughly half to around USD 50/bbl, and could go lower.
Wells have been shut in, rig counts are down sharply, and operators and service companies have announced layoffs.
What is untested is the ability of unconventional supplies to be quickly turned on
and off, a difference from the mid-1980s, and what the clear break-even price is, if there
is one. Tight oil has shorter lead times and cheaper initial costs than most conventional
development, which means it could become the new swing supplier in the global market, wresting that ability from OPEC members. Unconventional production, in projects such as the prolific Eagle Ford Shale, is also becoming more efficient and the price
decline promises to further increase efficiency. Analyst Wood Mackenzie predicts that
in the current environment, costs in the Eagle Ford will fall by 20% for drilling and 10%
for completions, making sub-USD 50/bbl viable. Also untested is the resolve of OPEC
members to stay together. While countries such as Saudi Arabia, Kuwait, and the UAE
have publicly pledged a commitment to the current policy of driving down global prices,
less wealthy OPEC members have tough days ahead with their oil revenues down by half.
For major producers such as Saudi Arabia, there are other things to worry about.
Higher oil prices drive interest in competitors to hydrocarbons such as alternative
fuels. As concerns about climate change become more widespread and a global UN climate change conference, whose objective is to achieve a legally binding and universal
agreement on climate from all nations, looms this year, some hydrocarbon producers fear additional regulations. Al-Naimi, a frequent attendee of global climate talks,
expressed fear about what may be on the horizon. All of these are good for humanity, he said about efforts to improve climate change policy, but they will be definitely
a threat to oil demand in the future.JPT
William Bailey, Principal Reservoir Engineer,

Schlumberger
Ian G. Ball, Technical Director, Intecsea (UK) Ltd
Luciane Bonet, Reservoir Engineering Manager,
Petrobras America Inc.
Robert B. Carpenter, Sr. Advisor Cementing,
Chevron ETC
Simon Chipperfield, Team Leader Central Gas Team/
Gas Exploitation, Eastern Australia Development,
Santos
Nicholas J. Clem, Engineering Manager, BakerHughes
Alex Crabtree, Senior Advisor, Hess Corporation
Jose C. Cunha, Technical Training Leader,
Chevron ETC
Alexandre Emerick, Reservoir Engineer,
Petrobras Research Center
Niall Fleming, Leading Advisor Well Productivity
& Stimulation, Statoil
Ted Frankiewicz, Engineering Advisor, SPEC Services
Emmanuel Garland, Special Advisor to the
HSE Vice President, Total
Reid Grigg, Senior Engineer/Section Head, Gas
Flooding Processes and Flow Heterogeneities, New
Mexico Petroleum Recovery Research Center
Omer M. Gurpinar, Technical Director, Enhanced Oil
Recovery, Schlumberger
A.G. Guzman-Garcia, Engineer Advisor,
ExxonMobil (retired)
Robert Harrison, Global Business Leader,
Reserves & Asset Evaluation, Senergy
Delores J. Hinkle, Director, Corporate Reserves,
Marathon Oil (retired)
John Hudson, Senior Production Engineer, Shell
Morten Iversen, Completion Team Leader, BG Group
Leonard Kalfayan, Global Production Engineering
Advisor, Hess Corporation
Tom Kelly, Systems Engineering, FMC Technologies
Gerd Kleemeyer, Head Integrated Geophysical
Services, Shell Global Solutions International BV
Jesse C. Lee, Chemistry Technology Manager,
Schlumberger
Casey McDonough, Drilling Engineer,
Chesapeake Energy
Cam Matthews, Director, New Technology Ventures,
C-FER Technologies
Badrul H Mohamed Jan, Lecturer/Researcher,
University of Malaya
Lee Morgenthaler, Staff Production Chemist, Shell
Alvaro F. Negrao, Senior Drilling Advisor,
Woodside Energy (USA)
Shauna G. Noonan, Staff Production Engineer,
ConocoPhillips
Karen E. Olson, Completion Expert,
Southwestern Energy
Michael L. Payne, Senior Advisor, BP plc
Mauricio P. Rebelo, Technical Services Manager,
Petrobras America
Jon Ruszka, Drilling Manager, Baker Hughes
(Africa Region)
Martin Rylance, Senior Advisor,
GWO Completions Engineering
Jacques B. Salies, Drilling Manager,
Queiroz Galvo E&P
Otto L. Santos, Snior Consultor, Petrobras
Luigi A. Saputelli, Senior Production Modeling
Advisor, Hess Corporation
Sally A. Thomas, Principal Engineer, Production
Technology, ConocoPhillips
Win Thornton, Global Projects Organization, BP plc
Erik Vikane, Manager Petroleum Technology, Statoil
Xiuli Wang, Director, Minerva Engineering
Mike Weatherl, Drilling Advisor, Hess Norge AS
Rodney Wetzel, Team Lead, SandFace Completions,
Chevron ETC
Scott Wilson, Senior Vice President,
Ryder Scott Company
Jonathan Wylde, Global Head Technology,
Clariant Oil Services
To contact JPTs editor, email jdonnelly@spe.org.

18
Pat York, Global Director, Well Engineering & Project

Management, Weatherford International
JPT FEBRUARY 2015
WELL INTERVENTION
UNCONVENTIONALS
MATURE FIELDS
SUBSURFACE INSIGHT
THROUGH COIL
REAL TIME DATA THROUGH FIBER OPTICS
Make booth 711 at the Coiled Tubing & Well Intervention Conference and Exhibition
your key stop for insights, input, and information. Halliburton Production Solutions,
an acknowledged industry leader in well intervention, will be showing how their
CoilComm SM Service provides real-time ber optic depth, pressure, and temperature data
from inside and outside the coil to optimize treatments and decrease the number of runs.
Plus, hear how greater efciencies and safer land operations can be achieved with
Halliburtons next-generation Enhanced QuikRig Coiled Tubing System.
See display models and engage with our team at Booth 711, March 24 and 25 at
The Woodlands Conference Center, Woodlands Tx.
Solving challenges.
2015 Halliburton. All rights reserved.
GUEST EDITORIAL
New Prices, Challenges, and Opportunities

in the Next Wave of Unconventional
Resource Development
Hans-Christian Freitag, Vice President of Integrated Technology, Baker Hughes
Hans-Christian
Freitag is vice
president of
integrated technology
in the Global Products
and Services
division at Baker
Hughes. He joined
Atlas Wireline Services in 1989 and has
worked in operations, geoscience, and
management positions around the world.
In 2002, he moved to Baker Hughes
INTEQ and oversaw the development and
market introduction of advanced logging
while drilling technology. From 2005 to
2008 he was responsible for formation
evaluation in North America. From 2008
to the end of 2013 he held a number
of senior and executive management
positions with Baker Hughes in the
Middle East and Asia Pacific. Before
assuming his current role, he was
vice president for the Unconventional
Resources Business Unit for the Eastern
Hemisphere. Freitag holds an MSc
degree in geophysics and a BSc degree
in physics from Technische Universitt
Berlin and Technische Universitt
Clausthal in Germany.
20
A few months ago, discussions about sustainability in the oil and gas industry focused
on the environmental effects of shale oil and gas development. While technology had
enabled the first wave of the unconventional resource revolution that swept North
America and propelled it toward energy independence, concerns about the usage of
water and chemicals and the environmental effect of large numbers of wells signaled
the need for new thinking to address these concerns.
How quickly times have changed! While safety and environmental sustainability remain at the top of operational considerations, the precipitous drop in global oil
prices has added another key question to the mix: At what price do unconventional
plays cease to be economically sustainable? Basin-related, break-even prices are now
top agenda items at planning and budgeting meetings. No longer are we discussing
efficient well delivery, improving completion effectiveness and fracturing designs, and
increasing estimated ultimate recovery as changes we should make. These are changes we now must make to boost production, ensure sustainable cash flow, and increase
booked reserves during the next wave of unconventional resource development.
The high oil prices of the past several years shielded the industry from inefficiencies that were built in to the first wave of unconventional development. Of the hundreds of thousands of shale wells that have been drilled and hydraulically fractured,
many have been significantly less productive than expected, delivering typical recovery factors below 10%. Despite these less-than-optimal recovery factors, efficiency
remained our industrys key focus of innovation in the unconventional plays. In fact,
factory drilling of a large number of wells and geometric fracturing along the lateral continues to represent the most popular approach to developing unconventional
assets. But with oil prices below USD 50/bbl, is drilling and stimulating more wells
at lower cost really the solution for long-term economic sustainability of unconventional plays?
As an industry, it is critical that we start thinking about these unconventional
assets differently. Large numbers of unconventional wells drilled in the past 5 to 7
years are now reaching the low end of the production curve and are ripe for rejuvenation. And the industry has already seen some positive results from rejuvenation efforts
including wellbore cleanup, installation of artificial lift, and restimulation. Many of
these projects have been effective at generating production rates that equal or even
exceed the wells initial production with less rapid decline rates.
But we can still do better. By using brainpower rather than horsepower.
Embracing an approach to unconventional rejuvenation that is grounded in
science and fact will let us drive production and efficiency simultaneously. The key
is developing a workflow that creates value through enhanced understanding of the
reservoir rock and the reasons behind poor well performance, and then executing on
thatworkflow.
With thousands of potential rejuvenation candidates in North America, we must
be able to rapidly and reliably identify the wells with the greatest production potential; diagnose each individual wells condition and specific rejuvenation needs; and
JPT FEBRUARY 2015
GUEST EDITORIAL
then prescribe and deliver the rejuvenation treatment efficiently and effectively to achieve the highest possible return
oninvestment.
Selecting the Best Candidates

The first step in this workflow is screening and selecting the best rejuvenation
candidates. Today, we have more data on
these wells than ever before. And, while
the sheer volume of datafrom well locations and completion types to proppant
volumes and production historiescan
sometimes seem overwhelming, modern
data-mining tools and techniques allow
us to quickly sort through large volumes
of information. This, in turn, facilitates
the development of new, efficient workflows to screen a large number of wells,
a focus on those capable of delivering the
most additional production, and avoiding those with limitedprospects.
Once we know which wells have production left to offer, we have to gain an
intimate understanding of the unconventional reservoir surrounding the well
and diagnose what is needed to unlock
its full potential. We also need to understand whether there are any factors in
the existing well that might compromise
our ability to implement a specific rejuvenation solution. This will necessitate
a deeper dive into the wells historical
record to review all available formation
evaluation data and production logging.
In some instances, it may be necessary
to gather additional data to fill any gaps.
Other activities in the diagnostics stage
include confirming the wells technical
integrity and cleaning up the wellbore
in advance of any rejuvenation efforts.
This data assessment and detailed understanding of the wells current state make
it possible to effectively forecast each
wells production potential.
Proper Rejuvenation Treatment

After we have identified the wells we
want to target and diagnosed what chal-
22
lenges need to be overcome, it is time to

determine the best rejuvenation solution for a specific well. In some cases,
we have seen that cleanouts alone have
proven effective at restoring production to levels at which no further rejuvenation efforts are required. In other
instances, a cleanout coupled with the
installation of artificial lift offers the
most cost-effective means of improving production. In recent years, many
North American operators have experienced good success with electrical submersible pumps (ESP) purpose-built
for the lower production rates commonly found in mature unconventional wells, boosting production by
more than 40% with lower operating
expenses compared with traditional
rod-liftoperations.
If the workflow determines that the
optimal solution for boosting production is additional stimulation, refracturing programs can be designed to
stimulate previously untreated zones,
restimulate underperforming intervals,
or re-establish wellbore connectivity
through pre-existing fractures. Because
this workflow has already investigated
the wells mechanical integrity, and formation evaluation data have been gathered, we can design an effective and efficient restimulation program that meets
the wells technical, production, and
economicobjectives.
Furthermore, if multiple wells in a
field are targeted for rejuvenation, then
microseismic and real-time downhole
pressure monitoring during the treatment, as well as post-refrac production analysis, are critical to refining and
enriching reservoir models for the next
restimulation operation. That is because
there are always new discoveries to be
made and more understanding to be
developed. As an industry, we are still
working to fully understand the physics of fracture propagation in tight rock
and the flow of fluids through fractures.
The acquisition of moreand better

subsurface data will drive that improved
understanding and enable more predictive, and more reliable, modeling
andsimulation.
Next Wave of Unconventional

Redevelopment
Proper targeting and techniques can
rejuvenate existing unconventional wells to drive meaningful additional
cash flow and improve ultimate recoveryand thus reservesby providing an avenue to economic sustainability. It simply requires a new, hard look
at what we thought were the truths
about unconventional plays and a willingness to embrace new concepts. For
the future, the pathway to success may
be refrac-ready wells based on learnings from current and upcoming rejuvenation projects. This next wave in the
development of unconventional reservoirs will be key to generating a higher
return on investment for a longer period of time.
In the end, it may be overly optimistic to say that the current oil price
situation is an opportunity in disguise,
but it does present both a warning and
an opportunity to the industry that we
must refocus our thinking from business as usual to new, more effective
and more sustainableways of developing unconventional resources.
With an approach leveraging new
workflows for rejuvenating existing
wells, the industry can achieve production and recovery levels needed to sustain unconventional plays in an environment of lower oil prices. We can
also achieve the efficiency we have been
seeking by drilling longer, cheaper
wells. In this instance, we are replacing
more wells with more productive wells.
We are replacing field experimentation
with analysis and planning.
We are replacing horsepower with
brainpower. JPT
JPT FEBRUARY 2015
PRESSURE PUMPING STIMULATION
Fracture with
100% produced water

and no fresh water.
Natural Produced Water

(Unfltered)
Natural Produced Water

(Filtered)
Fresh Water
Say goodbye to freshwater fracking.

Our WaterSure fuid system completely
eliminates fresh water from your operations.
With the WaterSure system, you can use produced
and frac fowback waterfltered or unflteredto
create low-residue stimulation fuids. Effective in a
variety of downhole conditions, WaterSure fuids imitate
the conductivity and permeability of fresh water and
protect against formation damage. So you can reuse
your wastewater and conserve our natural resources
without sacrifcing stimulation performance.
Visit us at the
SPE Hydraulic Fracturing
Technology Conference
at Booth #301
2015 Weatherford. All rights reserved.
Learn more about making your fracturing more effcient and

environmentally friendly at watersure@weatherford.com.
Formation Evaluation
Well Construction
Completion & Stimulation
Production
TECHNOLOGY APPLICATIONS
Chris Carpenter, JPT Technology Editor
Fluid-Control Valve
Flowrox introduced its slurry-knife-gate
product designed to enhance current
pipeline equipment and processes. The
new SKW (slurry knife wafer) valve was
developed for use where abrasive or corrosive slurries, powders, or coarse substances are processed. The main benefit of its full-bore design is that the
SKW valve itself becomes an integral
part of the pipe and allows it to process the same fluids in the harshest of
conditions. In addition to its strength
and resistance to aggressive slurries,
the SKW valve is designed as a full-port
fluid-control device that allows a moreefficient process, requiring less pumping
energy to operate. The SKW valve features a cast single-piece body that eliminates any potential leak paths from the
body and offers a versatile tower construction that will accept manual, electric, hydraulic, or pneumatic forms of
actuation (Fig. 1). When in the open position, the SKW valves rubber ring sleeves
are the only parts in contact with the
medium, as a way to reduce any potential corrosion or deterioration caused by
wear and tear from even the most abrasive slurries. The valve also features loaddistribution rings embedded into the
rubber ring sleeves, a feature that avoids
situations in which tight piping tolerances have caused the compression and
destruction of rubber sleeves.
For additional information, visit
www.flowrox.com.
High-Build RotarySteerable System

Baker Hughes released its AutoTrak
eXact high-build rotary-steerable system
designed to help operators drill complex
3D wells with improved directional control and superior borehole quality. The
AutoTrak eXact system combines high-
Fig. 1The SKW valve from Flowrox

features resistance to aggressive
slurries and reduced pumping-energy
requirements.
24
Fig. 2Baker Hughes AutoTrak eXact

high-build rotary-steerable system
is designed to help operators drill
complex 3D wells.
buildup-rate capability with advanced

logging-while-drilling (LWD) services,
enabling optimized completions, improving drilling efficiency, and maximizing
production potential. Using proprietary
and proven closed-loop steering control,
the AutoTrak eXact system delivers precise wellbore placement with high borehole quality in all applications for easier
casing runs (Fig. 2). The system has the
ability to drill shorter curve sections up
to 12/100 ft, compared with conventional systems that offer 56/100-ft build
rates. This maximizes reservoir exposure
and helps avoid costly directional work
in troublesome formations. Compatible
with the Baker Hughes advanced suite of
LWD services, the AutoTrak eXact system
also provides access to real-time formation evaluation and reservoir data to help
geosteer wells and optimize placement in
the reservoir.
www.bakerhughes.com.
Compliance-RequirementManagement Software
Designed and developed to eliminate
wide-ranging compliance-management
failures, ACS Engineerings Matrics
regulatory-management system offers
ease of learning, reduced workload, simplified user training, and streamlined
production efforts. The software uses a
simple system of implementation and
maintenance and addresses key sitespecific requirements such as air, water,
waste, and safety (including ongoing system maintenance) for a fixed monthly
fee with no added charges. Additionally, besides covering all typical scheduled
tasks, Matrics electronic functionality
includes unscheduled tasks that have
caused violations when not physically
checked. Submittal requirements accompany each specific task enumerated by the
software, eliminating guesswork about
processes. Converting requirements into
easily monitored action items can be performed easily by individually marking
Task or Checklist in the Matrics system.
JPT FEBRUARY 2015
The software keeps all requirements current, tracking changes daily and autoupdating new requirements, including
new wording, task revisions, and current
frequency. The scope of these updates
includes not only permits, plans, manuals, and contracts, but any items sometimes overlooked manually.
www.acsengineering.com.
Spill-Containment System
As regulations for spill management grow
increasingly stringent, oil and gas operators require new technologies that will
reduce contamination risks, improve onsite safety, and minimize overall project
costs. Newpark Mats and Integrated Services (NMIS) introduced the DURA-BASE
DEFENDER linerless spill-containment
system. The new system provides drilling
and completion crews with a faster and
more efficient way of achieving total site
containment of spills, adhering to environmental requirements while reducing
overall costs of operation. The DEFENDER system incorporates NMIS DURABASE mats into a fully integrated structure for total site containment (Fig.3). As
an all-in-one solution, DEFENDER protects the environment while eliminating the operator costs associated with
transport, repair, and disposal of liners.
The system features NMISs DX4 sealing
technology, a key component designed to
keep spills in check, limiting them to the
surface of mats for fast and easy cleanup. The DEFENDER systems enhanced
cellar-protection system, coupled with
DX4 sealing technology, reinforces the
critical cellar region with a third layer
of security. The proprietary cellarprotection system is custom-fitted for
any cellar, on any site. The fully inte-
Fig. 3Newparks DURA-BASE DEFENDER linerless spill-containment system.
grated wall berms and drive-over berms

improve work site safety by easing access
to the work platform, and minimize the
environmental impact to surrounding
areas with additional splash protection.
www.newpark.com.
High-Performance Motor
Scientific Drilling International (SDI) introduced the TiTAN22 high-performancemotor solution. The TiTAN22 is engineered to support the most demanding
drilling environments while delivering
reliability and durability across a wide
range of applications. The motor design
features SDIs Ti-Flex titanium flex
shaft, and supports the highest torque
power sections and highly robust bearing assemblies, providing optimal drilling performance in all sections of the
well (Fig. 4). The TiTAN22 delivers confidence and reliability through enhanced
weight-on-bit capacity for increased
rate of penetration, a rugged driveline
Power Section
for ultrahigh-torque applications, full

rotational capacity in any section of
the well, a short bit-to-bend for directional versatility, and a robust design
for optimal polycrystalline-diamond-bit
performance. The TiTAN22 is ideal for
drilling extended-reach laterals, for use
in laminated formations, and for factory
drilling in shale reservoirs.
www.scientificdrilling.com/TiTAN22.
Conductor-CementingSupport System
It has become increasingly common for
operators to install a jacket and batch
set the platform conductors so that the
topside can be installed at a later date.
The operator brings a rig over the jacket
and uses it to run a conductor and then
to hold the conductor in place while the
cement cures. Claxton Engineering Services has developed a new conductorcementing-support system (CCSS) that
has typically saved 12 to 18 hours of rig
Bearing Assembly
Ti-Flex
Titanium Flex Shaft
Fig. 4The TiTAN22 high-performance-motor solution from Scientific Drilling.
26
JPT FEBRUARY 2015
Breaking with
Conventional Practise
InterFrac
Provision of reservoir engineering:
- ensuring pin point fracturing design
- optimum production performance
Interventionless frac sleeve:
- improved reservoir recovery
- accelerated production
- operational efciency
- reduced well count
www.interwell.com
time per conductor waiting for cement
to cure. The Claxton CCSS secures the
conductor with a hydraulic jack-andclamp mechanism that holds the weight
of the conductor while the cement cures
(Fig.5). This means that the rig no longer has to hold each conductor and can
therefore move to the next slot and begin
running another conductor. The CCSS
has a holding capacity of 135160 t and is
suitable for conductor diameters of 24 to
30 in. However, the design can be scaled
to any conductor size on request and the
footprint and weight-handling capacity
tailored to specific slot or jacket configurations. The new system has a compact
design and can be repositioned easily
without a crane.
Fig. 5Claxtons CCSS saves rig time for operators and features custom-design
capabilities for size, footprint, and weight-handling capacity.

www.claxtonengineering.com.
Articulating Rotational Mast

STEP Energy Services introduced the
STEP-ARM articulating rotational mast,
designed as part of a new coiled-tubing
system. The unit was designed to reduce
on-site safety risks and increase the efficiency of coiled-tubing operations on
multiwell-pad locations, an increasingly
common drilling practice. The unit is able
to service multiple wells without having
to move any equipment, greatly reducing the amount of time required to move
from well to well (Fig. 6). It also provides increased safety for professionals
working on a job site. The reel trailer is
designed to carry a maximum payload of
coiled tubing on the road. High-strength
steel is used extensively in the unit to keep
weight down, for road restrictions and
regulatory requirements. The injector
features an auto-leveling system, and the
units dual-boom design features a control system that keeps the booms timed
and matched within 10 mm of one another at their tips. Once the three-piece system arrives on location, operators will
spot the reel trailer up to the wellhead
or multiple wellheads before setting up
the STEP-ARM, which passes the injector
unit from the back of the reel trailer to the
ARM. The ARM lands atop the wellhead.
Fig. 6The STEP-ARM rotational mast from STEP Energy Services allows the
servicing of multiple wells without the need to move equipment.
28

www.stepenergyservices.com.
JPT FEBRUARY 2015
FRACMAX
The power of CnF
right at your fngertips
Fig. 7Energy Recoverys VorTeq hydraulic-pumping system extends the life of

high-pressure pumps.
Flush-Joint Elevator
The Weatherford flush-joint elevator (FJE)
uses four slipstwo hydraulically actuated slips and two passive slipsto clamp
onto joints as they come into the veedoor. As each joint arrives at the vee-door,
rig personnel lift and secure the elevator
around the joint by triggering the actuated slips. The elevator then lifts the joint to
the derrick by topdrive, where it is made
up to the string. Once the joint is threaded
securely, the slips are deactivated and the
elevator can be opened easily to release
the joint and move on to the next section. Although this tool is similar in use
to a single-joint elevator, the FJE has additional capabilities. It enables operators to
run flush joints without threading lift nubbins in and out. The FJE also can be used
on strings with a mixture of standard and
flush joints, which helps operators avoid
switching between two elevators when
running in and out. By eliminating the
need for lift nubbins, the FJE enables rig
personnel to make up and run flush joints
as if they were standard-drillpipejoints.
www.weatherford.com.
Hydraulic-Pumping System
The maintenance challenges associated
with pumping large volumes of proppant
JPT FEBRUARY 2015
at high pressures and rates are anaccepted part of day-to-day operations. Energy Recovery introduced the VorTeq
hydraulic-pumping system, engineered
to increase run time and reduce maintenance costs by rerouting abrasive
fracturing fluid away from existing
hydraulic-fracturing pumps. VorTeq
reroutes proppant-filled fluid away
from high-pressure pumps on fracturing sites so these pumps process only
fresh water and therefore last significantly longer. VorTeq channels the
abrasive fluids and sends them down
the wellbore. The core of the VorTeq
system is Energy Recoverys pressureexchanger technology, which is already
in use in more than 15,000 desalination installations worldwide. The system handles up to 110 bbl/min, with a
treating pressure up to 15,000 psi.
The system is designed with only one
moving part, and made from tungsten
carbide, which is 1,000 times more
abrasion-resistant than steel (Fig. 7).
With VorTeq, hydraulic-horsepower
pumps will not be exposed to the
abrasive-slurry mixture of proppant
and water, the source of most maintenanceissues. JPT
www.energyrecovery.com.
Come experience FracMax

for yourself at the
2015 Hydraulic Fracturing
Booth 514
www.ftkfracmax.com
713.849.9911
TECHNOLOGY UPDATE
MPD Widens Offshore Drilling Capabilities

Don Hannegan, PE, SPE, Weatherford
The second of a two-part series, this

article presents an update on several
managed-pressure drilling (MPD)
technologies in use offshore.
Approximately one-half of all offshore
conventional oil and gas resources are
known or thought to be undrillable with
conventional, open-to-atmosphere circulating fluids systems for safety, economic,
and/or technical reasons. In deeper water,
pressure on exposed formations created by a tall column of annulus returns in
marine risers grossly overbalances many
reservoirs, resulting in a higher proportion of undrillableprospects.
Many offshore drilling programs
experience a slow rate of penetration and
instances of stuck pipe, kicks, and lost
circulation, which collectively account
for about one-third of all the nonproductive time on drilling projects. As
the elapsed time increases, so does the
cost per foot drilled and the probability of other things going wrong, creating a temptation for taking short cuts to
save time and money. If drilling difficulties lead to the use of excessive casing
strings, the result may be reaching total
depth with too small a hole for a productive well.
An inherent weakness associated with the hydraulics of conventional
circulating fluids systems has become
more troublesome. In the face of unexpected downhole pressure environments
and wellbore instability, the only way
to influence the wellbore pressure profile as drilling progresses is to change
the circulating rate (mud pump speed),
which influences the equivalent mud
weight (EMW). The only means of apply-
30
ing backpressure to increase the wellbore pressure profile is to close the blowout preventer (BOP). Consequently, the
primary well-control barrier is limited
to the hydrostatic pressure applied to
exposed formations.
The root concepts of the hydraulics
of conventional drilling were founded in
the Spindletop field in Beaumont, Texas,
circa 1901. The Spindletop gushers
were initially a time of celebration. However, resulting wasted resources, fires,
and lawsuits prompted a need to drill
into the reservoir without experiencing
a blowout. The solution was to drill with
weighted fluids, literally mud from a cattle pond at the time. Although drilling
fluids technology has come a long way,
conventional offshore drilling programs
still view the hydraulics of the circulating
fluids system essentially the same way
and we still commonly refer to drilling
fluid as mud.
The root concepts of managedpressure drilling (MPD) offer an alternative with several variations, each applicable to different types of challenges to
conventional drilling methods. They are
Constant bottomhole pressure
(CBHP) for drilling in narrow,
shifting, and/or relatively
unknown downhole pressure
environments
o Applied surface backpressure
with rotating control device
(RCD) and choke
o Continuous circulation
devices for maintaining
circulation during
connections
Pressurized mud cap drilling
(PMCD) for drilling in the
presence of severe to total

losscirculation zones
Dual gradient drilling (DGD)
forreducing annular fluids
column pressure on relatively
depleted formations and
simplifying casing programs
Returns flow control
(RFC-HSE), applicable on
otherwise conventional mud
programs for health, safety,
and environmental (HSE)
considerations only
This article addresses developments
associated with the practice of the CBHP,
PMCD, and RFC-HSE variations of MPD
on offshore rigs.
Offshore MPD
A state-of-the-art kit for practicing these
variations of MPD incorporates drillstring nonreturn valves, a programmable logic controlled (PLC) automatic choke system, and RCD designs that
enable a closed and pressurizable system on all types of offshore rigs. EMW
is maintained at a level greater than formation pressure by using a combination
of mud weight hydrostatic head pressure, circulating annular friction pressure, and surface backpressure. EMW,
rather than hydrostatic head pressure
alone, may be viewed as the primary
well-controlbarrier.
Beyond MPDs namesake of drilling in challenging downhole pressure environments to deeper depths,
including wells previously considered
undrillable, its practical operational
capabilities have grown to include an
impressive suite of drilling hazard mit-
JPT FEBRUARY 2015
suite results
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Honeywells Digital Suites for Oil and Gas increases production
performance by up to 5% while improving safety. By capturing,
managing, and analyzing the right data to make the right
decisions, youll get better productivity, higher uptime, and
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Discover Honeywell.
For more information about Honeywells intelligent solutions

for oil and gas, visit www.hwll.co/Digital
2014 Honeywell International, Inc. All rights reserved.
TECHNOLOGY UPDATE
Fig. 1A sample screen shot is used to validate calculated vs. measured friction losses for surface equipment on a
deepwater well, right, being drilled with managed-pressure methods. Image courtesy of Weatherford.
igation and optimization techniques.

These include
Early kick-loss detection by
means of precise mass flow in/out
measurements
Real-time quantification of
formation and fracture pressures
The ability to distinguish losses
from wellbore ballooning and
well flow from wellbore breathing
The ability to conduct dynamic
formation integrity tests and
leakoff tests more frequently
to verify and quantify pressure
containment capability
The ability to circulate out
an influx of known volume
and intensity, providing
under controlled/appropriate
circumstances a safer and more
efficient alternative to shutting
inand circulating out
Closed-loop cementing
32
Managed-pressure wellbore
strengthening
Mitigating the risk of a kick
advancing past the subsea BOP
into the riser on a deepwater rig
Facilitating the hazard
identification/hazard and
operability process with a wellspecific MPD operations matrix,
clearly defining the operational
limits and the point at which to
revert to conventional secondary
well control
This technology provides better control over the wellbores pressure profile and is progressing toward
standard procedure on challenging offshore wells in which the need to increase
recoverable reserves and operational safety is paramount. This is particularly true in deepwater and ultradeepwater. Nevertheless, the experience to
date has identified opportunities to further enhance PLC automated choke system softwarecapabilities.
New Microflux Software

Weatherford is introducing an enhanced
version of the Microflux PLC automated
choke system software. The new software platform merges engineering, operations, and reporting in a user-friendly
way, enabling increased productivity
with enhanced well control. Real-time
live well displays of the wellbore and
automated data analysis reduce the risk
of human error, contributing to the timeliness of well-control and drilling optimization decision making when practicing
MPD on complex wells. Onsite and offsite documentation of planned and unexpected occurrences is thereby enhanced.
By employing real-time models
such as hydraulic, well control, swab/
surge, and drilling optimization torque
JPT FEBRUARY 2015
ORR Safety_JPT 8-125 x 10-875_10-15-14.pdf 1 10/15/2014 3:44:18 PM
CM
MY
CY
CMY
TECHNOLOGY UPDATE
different well sections (e.g., open

hole, cased hole, and inside the
riser)?
How much of the kick content,
if any, is dissolved in the returns
path and if it is, what is the
bubble point pressure?
What are the expected pressures
at critical points through the well
(the casing shoe, the riser, and
known weak formations) and at
the surface?
What is the best well-control
method to apply, based on the
surface equipment, the casing
or formation limitations, and
is secondary well control best
implemented by closing the BOP
or circulating out the kick with
the MPD kit?
Fig. 2The continuous flow system offers wellbore protection and control in
challenging environments by means of a perpetual circulation of drilling fluids.
Image courtesy of Weatherford.
and drag, the system displays the information from different perspectives and
aids in understanding the real operational limits. Where prior systems have
focused on drilling hydraulics, this new
capability includes kick tolerance calculations updated at will, identification of
the weakest link in the circulating fluids
system, and suggestion of the most applicable well-control actions.
For example, although early kick
detection has been a hallmark capability of drilling with a state-of-the-art MPD
34
kit, the enhanced Microflux software

system and the visualization of critical
parameters can provide answers to the
very important questions that immediately follow detection, including
What is the kick volume on the
bottom vs. what it will be at
thesurface?
What is the kick fluid
composition?
What will be the length of
the kick column and the total
resultant pressure changes in
The system not only identifies events

and provides warnings in real time, but it
also can run what if simulations to
predict possible drilling optimization or
well-control consequences.
Visualization is an important feature
of the new software platform, improving the ability to make timely decisions
with minimum effort. Selected measurements, wellsite information transfer
specification data, and calculated data
are shown, as are time- or depth-based
graphs, on live well displays.
Other visualizations enabled are
Indications of excessive
overbalanced or underbalanced
conditions
The real-time flow paths of
dissimilar fluids, including kicks,
spacers, pills, lost circulation
materials, and fluids used
for wellbore strengthening
cementation, and certain
otherpurposes
Critical observation points with
key information
Taken together, the visualization
capabilities help the user to understand
more fully what is happening in the well.
Views can also be customized, including
2D, 3D, and zooming options.
JPT FEBRUARY 2015
EW
In addition, surface equipment visuals such as the screen shot shown in

Fig. 1 are provided to simplify routine
tasks such as inputting the system setup
information and entering maintenance
records and notices of approaching limitations of equipment. Piping and instrument drawings illustrate actual surface
equipment configurations and specifications. Related calculations, such as frictional loss or fluid velocity through each
component of the circulating fluids system, can be displayed at will.
Continuous Flow Sub System

A technology related to CBHP MPD is
Weatherfords recently introduced
SteadyState continuous flow system
(CFS) as shown in Fig. 2. Rotary drilling with jointed pipe requires stopping and restarting circulation of drilling fluid to make connections, resulting
in significant fluctuations in EMW and
mudrheology.
The implementation of CFS enables
continuous circulation that eliminates
connections-related pressure spikes,
keeps downhole tools cooler, and
decreases the risk of cuttings beds forming in long horizontals.
Early Kick and Loss Detection

Fairly significant rig modifications may
be required to accommodate a stateof-the-art MPD kit on offshore rigs.
For cases in which the only objective
is early detection of flow abnormalities,
Weatherford is introducing a system that
requires minimal rig modification.
On fixed offshore rigs, a fit-forpurpose RCD is configured within the
rigs existing marine diverter. Returns are
positively diverted to a flowmeter, and a
simplified mass flow-in vs. flow-out PLC
readout indicates or gives an alarm about
kicks or losses in real time. The system
is also useful when drilling with a closed
diverter system, as a means of prevent-
JPT FEBRUARY 2015
ing risks such as a shallow gas kick reaching the rig floor before the crew has time
(detection plus reaction) to implement
well-control procedures.
On floating rigs, a gyro accelerometer is added to measure rig heave
magnitude and frequency. The data from
these measurements calibrate flowmeter
output for heave swab/surge, enabling
the detection of kicks or losses of much
smaller quantities than the significant pit
gain that may be otherwise required. This
potentially can reduce the frequency of
false positive kick alarms.
Conclusion
A decade ago, most operators offshore
business units practiced MPD for the first
time on prospects thought or known to
be undrillable for safety, economic, and/
or technical reasons with a conventional circulating fluids system. The CBHP
and PMCD variations of MPD were mostly used to handle the types of drilling
hazards that each addresses, thereby
increasing recoverable reserves in the
process. To date, there have been no
reportable well-control incidents on such
challenging wells attributed to the technology itself or the failure of its specialized equipment.
Today, the technology is applied to
optimize operations safety and efficiency
on prospects that could be drilled with
conventional open-to-atmosphere systems. Where CBHP and PMCD variations
have been applied for drillability reasons,
it is anticipated that the RFC-HSE variation will see broader global application
in the future because it can more precisely manage the wellbore pressure profile on otherwise conventional fluid and
well construction programs. Early kick
detection and the associated benefit of
reducing the frequency of false positive
kick alarms will likely be primary drivers
for future applications of this variation
ofMPD.JPT
Carbon Dioxide Capture,

Utilization and Storage
(CCUS) Technical Section
SPE has formed a Technical Section to
give members the opportunity to focus on
Carbon Dioxide Capture, Utilization and
Storage (CCUS), an area of interest for
petroleum engineers worldwide. Industry
interest in CCUS as a way to reduce
emissions and for sequestering or storing
carbon dioxide, has increased over the
past decade. In response, SPE has stepped
up programming in this area.
Carbon dioxide capture, utilization and
storage (CCUS) involves capturing CO2
emissions from large point sources such
as power plants and either reutilizing or
storing the emissions to keep them from
entering the atmosphere.
Expanded Career Opportunities for

Petroleum Engineers
Possessing the know-how for evaluation,
selection, and monitoring of underground
storage sites garnered through decades
of experience in the elds of CO2enhanced oil recovery (EOR) and gas
storage operations, the E&P segment of
the oil and gas industry is anticipated to
play a major role in the advancement
of CCUS including broader application
of CO2-EOR.
Moreover, lessons learned in the
ongoing commercial activities within
the oil and gas disciplines of underground
gas storage and CO2-EOR are directly
transferrable to CCUS, thus expanding
career opportunities for petroleum
engineers.
Join the CCUS Technical Section

This SPE group seeks to bring the
above-mentioned activities together
in one place for those interested in
this developing subject. You will have
opportunities to deepen your learning
and share your insights through online
discussions, web events, virtual meetings,
forums, and workshops, and enjoy the
benets of at least one face-to-face
meeting a year.
Join now at connect.spe.org/ccusts.
TECHNOLOGY UPDATE
Directional Hybrid Drill Bit

Pushes Performance Standards
Alan Holliday, SPE, Baker Hughes
It is inspiring to look back to 1909 when

Howard Hughes Sr. and Walter Sharp
introduced the roller-cone bit. The
invention was the foundation for the discovery of vast amounts of oil in mediumand hard-rock formations, oil that many
drillers suspected was there but was
nearly impossible to reach with the bits
of that day.
The roller-cone bit changed the
industry, but we may forget why its
immediate predecessor, the fish-tail bit,
was such a burden on drillers as they
strived to probe deeper targets. Often 24
hours would not go by without a twist-off
occurring, and rig hands were constantly
changing bits and fishing parts out of
the hole. For drilling anything other than
loose formations near the surface, it had
proved impractical.
In a centurys time, the industry
has made tremendous progress. But the
limitations of physics continue to challenge the dynamic performance of the bit
and bottomhole assembly (BHA) in the
demanding downhole environments of
todays wells.
Tools come equipped with features
such as torque reducers, depth-of-cut controls, and more flexible assemblies, to
mention a few. The inherent problem of
controlling the reactive torque between the
bit and formation, while achieving optimal
performance to reduce the number of drilling days, has remained a challenge.
The introduction of the hybrid drill
bit in 2011, which combined roller cones
and fixed cutters, was a catalyst to revisit
these basic principles and better understand the benefits and efficacy of smooth
drilling. The bit excelled in controlling
torque fluctuations and exceeded the
36
durability of fixed-cutter bits and the

penetration rates of roller-cone bits.
The hybrid bit soon became the standard bit for drilling in hard and interbedded formations, such as those in certain
Oklahoma and Canadian plays, because
it enabled drillers to reduce the number
of curve runs needed. The use of the bit
expanded globally, helping to improve
drilling results in interbedded applications
that historically have met with mixed success when medium-set roller cone or fixedcutter bits have been used. As results continued to improve, interest in stretching
the capability of the technology increased.
directional drillers to maximize tool performance by increasing motor differential pressure. In some cases, operators
have increased the motor differential by
up to 1.5 times in a slide section, resulting in a near doubling of the rate of penetration (ROP).
The bit was initially tested in the
Wolfcamp formation of the Permian
Basin in Texas. Its use has since expanded to multiple basins across North America. To date, there have been 154 runs in
five basins, and operators continue to
expand and push the boundaries for the
use of these bits.
New Bit Design
Field Experience
Limitations were experienced in these

first-generation hybrids when drilling
carbonate, anhydrite, and salt formations. Although dynamics were excellent
compared with conventional polycrystalline diamond compact (PDC) bits, high
weight requirements limited the ultimate
performance of the drilling system.
This led to the introduction of the
Baker Hughes Kymera FSR hybrid drill
bit. With a frame designed for aggressive
drilling, the bit features lower back-rakes
and maximum cutter spacing for optimal efficiency, along with sharper rollercone structures. Combining these technologies in this form has enabled the new
bit to maintain smooth drilling ability
while yielding a far more efficient cutting
method in challenging carbonates, compared with five- and six-blade PDC bits.
The new bit displays a very low
change in aggressiveness through a range
of drilling parameters, compared with its
PDC bit counterparts. This translates into
lower reactive torque and has allowed the
An operator drilling curved wellbores

through the Eagle Ford Shale, Austin
chalk, and Anacacho formations continued to experience difficulty controlling
directional orientation and often experienced tool failure. The PDC bits created
high torque fluctuations that sent the BHA
off its planned trajectory, requiring at least
two trips and two bits to drill through the
curve. In addition, the high torque fluctuation forced the operator to reduce weight
on bit (WOB), limiting the potential ROP.
The operator used the Kymera FSR
directional hybrid drill bit for lower tool
face fluctuations and the ability to tolerate more WOB for faster drilling.
The directional bit was used to drill
curves in three wells with fast, singlebit curves achieved in each well over an
average curve distance of 789 ft (241 m)
as shown in Fig. 1. One well was drilled
in 22 hours at an average ROP of 36ft/hr
(11m/h), a speed record for the operator
for drilling the curve in that field. A subsequent well was drilled faster, reaching
JPT FEBRUARY 2015
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09/01/15 15:27
TECHNOLOGY UPDATE
11700
10
20
Time (hr)
30
40
lad
eP
DC
ad
11900
e
PD
TC
12100
DC
eP
C
PD
FS
12500
lad
a
er
e
ad
bl
6-
m
Ky
12300
5-b
Depth (ft)
60
50
Kymera FSR Well 1

Kymera FSR Well 2
Kymera FSR Well 3
Competitor Well 1
Competitor Well 2
6-b
bl
5-
12700
Fig. 1A comparison of drilling the curve with the Kymera FSR bit and
tungsten carbide insert (TCI) and polycrystalline diamond compact (PDC) bits
in the Eagle Ford Shale.
9000
9500
Depth In/Depth Out (ft)
total depth (TD) in 17 hours with an average ROP of more than 46 ft/hr (14 m/h).
The hybrid bit showed exceptional
tool face control and enabled more WOB
for the fastest drilling through the curve
achieved to date. The smooth drilling
also mitigated bit and motor failure. All
curve runs were completed with one bit,
which had not been achieved previously on this well pad. By using the bit, the
operator was able to reduce the cost per
foot in the curve by at least 36%.
In another case, an operator in the
Wolfcamp pay zone of the Permian Basin
wanted to optimize drilling operations
through the curve, a section that consistently proved very challenging because
of the formation rock. The curve passes through Wolfcamp shale sections and
the more challenging Third Bone Spring
sand, which has a rock strength that varies between 10,000 psi and 20,000 psi.
This section has proved difficult to drill
in the curve, typically requiring several
bits to reach TD.
Kymera FSR
10000
Offsets (Average)
10500
11000
11500
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38
12000
10
15
20
25
ROP (ft/hr)
30
35
40
45
Fig. 2The performance of the Kymera FSR bit in drilling the curve in the
Wolfcamp formation compared with curve drilling in offset wells.
When drilling the Wolfcamp field

with PDC bits, it is necessary to increase
the WOB to optimize ROP. This results in
increased reactive torque downhole and
leads to stick-slip and poor directional
control, which adversely affects ROP. The
vibration from the reactive torque also
causes downhole motor failures, borehole quality concerns, and subpar bit
performance. With these problems, several bit trips are often required to complete the curve.
To address the difficulties, the

Kymera FSR bit was used. The drilling effort achieved a consistent buildup rate of more than 14 per 100 ft on
a 2.12 adjustable kickoff and an ROP of
38.8 ft/hr (11.9 m/h), more than double
the field average, and finished the curve in
one run (Fig. 2). The reduction in torque
and smooth directional control of the
bit saved the operator 18 hours of drilling time, and it has consistently achieved
similar time savings in the field.JPT
JPT FEBRUARY 2015
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BEYOND THE HEADLINES
Can Waste Water Be Disposed of Safely?

Vikram Rao, Executive Director, Research Triangle Energy Consortium
Editors note: Professionals in the oil

and gas industry often receive questions
about how industry operations affect
public health, the environment, and
the communities in which they operate.
Of particular concern today is the
impact of hydraulic fracturing on
the environment. In this new column,
JPT is inviting energy experts to put
those questions and concerns about
industry operations into perspective.
Additional information about the oil
and gas industry, how it affects society,
and how to explain industry operations
and practices to the general public is
available on SPEs Energy4me website
at www.energy4me.org.
Shale oil and gas wells use a lot of water
in fracturing operations. Each well may
use up to 8 million gallons, and as much
as 35% of this can return as flowback
water. Safe disposition of this waste
water is an industry priority especially
because of the widely reported past missteps in Pennsylvania. Safe disposition is
completely feasible and, in fact, is being
broadly practiced today.
The Nature of Flowback Water

Even if fresh water is used as the base
fracturing fluid, what returns to the surface is salty. This is because the water
found in association with hydrocarbons has high salinity. Shale oil and gas
flowback water salinity typically range
from 16,000 parts per million (ppm) to
more than 300,000 in some instances.
For comparison, sea water runs around
35,000 ppm. The chemicals introduced
into the fracturing fluid will also be present in some proportion. These will be low
40
in concentration because even the original fracturing fluid contains only up to

about 0.5% chemicals.
Finally, one could also encounter
species present in subterranean rock.
These could include aromatic compounds (such as benzene) and radioactive species. Some state regulations,
such as the ones pending in North Carolina, prohibit the use of aromatics in
fracturing fluid so, if present, they could
only have come from the subsurface.
The same holds for radioactive species.
In most instances, subterrestrial bacteria will also be present. All of these
render the flowback water unsuited for
directdischarge.
Re-use of Flowback Water

Flowback water may be reused to formulate fracturing fluid for the next operation. But since only about a third of
injected water returns, additional water
is needed (makeup water). In the early
going, reuse was rendered costly due to
the need to desalinate down to fresh
water. However, more recently, all service companies have announced that
they can tolerate salinities in excess of
250,000ppm.
To accomplish this they had to
invent substitutes for certain chemicals.
In particular, these were the cross-linkers (for thickening the gel in the fluid to
fracture the rock more effectively) and
the breakers (the chemical that breaks
down the cross-linked gel to thin it for
removal at the end of the operation).
This salt tolerance suggests that even the

makeup water could be a salty water of
convenience rather than fresh. Brackish
water is ubiquitous in shale oil and gas
operations and yet few companies use
it. Not using fresh water would go a long
way toward community acceptance of
theoperations.
While salinity per se may not be a
bar to reuse, some treatment may be
required. The operator may choose to
remove divalent ions. These tend to form
scale and radioactive elements, and tend
to concentrate in the scale even though
the concentrations in the water may
be too low to be a concern for personnel safety. Manual descaling operations
could constitute an operational hazard if
radioactive elements were present. Most
operators would also attempt to remove
the bacteria in some way. But these operations are straightforward. Divalent ion
removal is known as water softening,
found in many homes using well water.
Deep Discharge of Waste Water

One of the most cost-effective methods
for disposal of wastewater is discharge
into selected subsurface zones. This is
done in wells specified by the EPA and
known as UIC Class II injection wells.
They are further monitored by state environmental protection agencies. In the
best situations the cost can be as low as
$0.25 per barrel. The costs can be higher and some geologies are unsuited for
this type of activity. Most of the Marcellus and Utica falls in this category. In
such areas reuse is the dominant practice. However, at some point disposal is
needed and in these areas the wastewater
can be trucked considerable distances for
JPT FEBRUARY 2015
disposal in available UIC Class II wells,

sometimes in a neighboring state.
While an effective disposal in UIC
Class II wells have been associated with
earthquakes, with the right measures
the earthquakes are avoidable. However,
these measures are as yet not in place in
the regulatoryscheme.
Treating for Discharge

One of the errors reportedly made in the
Marcellus was the dispatching of flowback water to municipal water treatment
facilities. These facilities rely on beneficial bacteria to do the cleanup of municipal wastewater. These bacteria do not
survive in high salinity. Consequently,
operations were affected. Desalination is
a key step toward anydisposition.
The workhorse method for desalination is reverse osmosis, commonly
abbreviated RO. The salty and fresh sides
are separated by a specially designed
membrane that allows only small molecules such as water to go through. Ordinarily, osmotic pressure will cause the
fresh water to migrate across to the
salty side. This is because water on the
fresh side is in a higher energy state and
wants to migrate to a lower energy state,
much as water flows downhill. This is not
the desirable outcome because we are
attempting to produce fresh water from
the salty side. This is accomplished in RO
by applying pressure up to 1200 psi. The
pressurized salty side now has water at
a higher energy state and so water molecules migrate through the membrane to
the fresh side.
This migration of water due to
induced pressure has limits. Above a
certain pressure the energy expended is
not economical. Consequently, it is not
cost effective to continue to desalinate
after the salty side concentrates to about
80,000 ppm. This residual brine has to
be disposed of. In areas near the ocean
where seawater is being desalinated
the brine is distributed into the ocean,
although that is meeting some resistance
when coral are present. An important
outcome of this limitation on RO is that
it cannot be used for the vast majority of
JPT FEBRUARY 2015
flowback water in areas such as the Marcellus, where the starting point is often
in excess of 50,000 ppm. However, for
lower salinity produced waters this is
still the technique of interest. In such
situations, there are two outcomes for
the reject brine. One is to directly inject

into UIC Class II wells. The other is to
treat it a bit before doing so. This can be
accomplished by evaporating some of
the water. The residual brine is targeted
to be in the vicinity of 200,000 ppm and
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41
SPE/CSUR
Unconventional
Resources
Conference
Call for
Abstracts!
The program committee for the

SPE/CSUR Unconventional
Resources Conference, held
2022 October 2015 at the
BMO Centre in Calgary,
invites you to submit an
abstract and contribute to this
renowned event.
Visit www.spe.org/go/urcjpt
for abstract submission
deadline, instructions, and
general guidelines.
Additional speaking
opportunities are available
for this conference. To be
considered for an invited
presenter spot, please contact
us at info@csur.com for
more information.
BEYOND THE HEADLINES
can now be deep injected. Where deep

injection is not feasible, some opera
tors choose to evaporate the water to
the point of crystallizing the salts. These
salts are sometimes used for road deic
ing in winter.
Forward osmosis (FO) is a newer
technique. The freshwater side of the
membrane has a constituent added that
reduces the energy of the water por
tion. The water molecules on the salty
side now migrate across to a perceived
lower energy state. Eventually the spe
cial constituent is removed in some fash
ion, leaving behind fresh water. Finally,
one of the newest technologies is that of
membrane distillation. Here the mem
brane is designed to allow only vapor to
get across. Heat is applied to the salty
side and water vapor traverses the mem
brane on to the fresh side. One feature
is that waste heat can be used to effect
thetransfer.
Aside from desalination, waste

water may have to be treated for remov
al of other constituents depending upon
the final purpose. Standard processes
are available for the removal of volatile
organic compounds, heavy metals, radio
active elements, and bacteria. Generally
these functions, as well as the desalina
tion, will be performed in special treat
ment facilities permitted for the purpose,
not municipal water facilities.
Conclusion
Flowback water and other produced
water can be disposed of in an environ
mentally secure fashion. Flowback water
is most advantageously reused for frac
turing because doing so is cost effective
and reduces the need for fresh water.
Unusable waste water can be disposed of
safely in deep injection wells. It can also
readily be treated for surface discharge
or some other purpose.JPT
Vikram Rao is executive director of the Research Triangle

Energy Consortium (www.rtecrtp.org), a nonprofit founded by
Duke University, North Carolina State University, RTI
International, and the University of North Carolina at Chapel
Hill. Its mission is to illuminate US national energy priorities,
and those of the world by extension, and to catalyze research to
address these priorities.
Rao advises the nonprofit RTI International, venture
capitalist Energy Ventures AS, and firms BioLargo Inc., Global Energy Talent
Ltd., and Integro Earth Fuels Inc. and serves on the Science Council of Royal
Dutch Shell. He retired as senior vice president and chief technology officer of
Halliburton in 2008. He also serves as chairman of the North Carolina Mining and
Energy Commission. His book, Shale Gas: the Promise and the Peril, was released
in 2012 by RTI Press and can be found at www.rti.org/shalegasbook. Written for
general audiences, it is intended to inform the debate on fracturing for shale gas.
Rao holds a bachelors degree in engineering from the Indian Institute of
Technology in Madras, India, and a masters degree and doctorate in engineering
from Stanford University. He is the author of more than 50 publications and has
been awarded 40 US patents and foreign analogs.
JPT FEBRUARY 2015
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2014 Baker Hughes Incorporated. All Rights Reserved. 42129 10/2014
E&P NOTES
The Gravity of Oil and Gas Exploration

Trent Jacobs, JPT Technology Writer
A Cold War technology invented to

stealthily guide the United States Navys
nuclear submarine fleet is now serving a
much more peaceful purpose: aiding in
the search for oil and gas deposits. Far
removed from the ocean depths, gravity gradiometry has evolved to become
an increasingly sophisticated aerial technology that has been used to rapidly analyze the subsurface of every continent in
the world.
Since its introduction to the oil and
gas industry in the 1990s, airborne gravity gradiometer (AGG) technology has
become an increasingly popular greenfield exploration tool because of its ability to analyze wide areas onboard airplanes for a fraction of the cost of 2D
and 3D seismic surveys. The Falcon system from geoscience firm CGG has been
improved so it can be used with helicopters which provides higher resolu-
tion data by bringing the unit closer to

theground.
Late last year, CGG wrapped up a
28,000 km2 (10,810 sq mile) survey
in an unexplored region of Papua New
Guinea using its latest gravity gradiometer technology called Falcon AGG. The
company, which acquired the technology from Fugro in 2012, said that the Falcon AGG delivers the highest resolution
and lowest noise/data ratio of any such
system in use today.
AGG works by measuring the differences in the gravitational pull of nearby
geological formations. Denser rocks will
have a higher pull than those that are less
dense and aerial surveys give explorers
the ability to interpret the density variations as they relate to hydrocarbons.
With that, it will help you understand
the rock types, structures, and any other
anomalous material, be it a sinkhole or
The latest advancement in aerial gravity gradiometer technology allows it to

be attached to a helicopter so it can be flown close to the ground to generate
high-resolution subsurface imagery. Photo courtesy of CGG.
44
oil, said Chris van Galder, an AGG adviser at CGG.

The geologic structural information
collected by AGG aids operators in the
interpretation of the 2D target area and
fills in other gaps. It can also be used to
locate optimal shot points and receiver
points for a 3D seismic survey.
Compared with 2D or 3D seismic
surveys, van Galder said AGG surveys are
an order of cheaper and faster magnitude
and can optimize 2D or 3D survey operations by giving exploration companies a
better idea of where to look for oil and
gas. If we can help them carve out areas
where there is no need to [acquire] seismic data, not only have they gotten a better picture of the overall area, they have
saved significant costs in their exploration budget, he said.
Exploration companies deploy
this technology to remote places such
as Papua New Guinea, where the terrain is rough and covered by dense vegetation, because ground-based surveying
technology would be next to impossible to actually acquire any data, said
vanGalder.
In the 1970s, the gravity gradiometer was once a secret technology developed for the Navys most sophisticated
nuclear submarines as a silent alternative to sonar navigation. It became
declassified and later commercialized,
when the technology was unwittingly
thrown into the public domain through
its reference in the classic Cold War
film, The Hunt for RedOctober.
Van Galder said the Falcon AGG
differs from other AGG systems in that
it was designed to greatly diminish the
effect of turbulence, which has resulted in lower-level noise being intro-
JPT FEBRUARY 2015
Images of geologic data acquired through the use of aerial gravity

gradiometry can be used to complement 2D and 3D seismic surveying
operations and identify potential hydrocarbon resources rapidly and cheaply.
Image courtesy of CGG.
duced into the data. The new digital

version is smaller than previous analog
designs, allowing it to be used in a twinengine helicopter. Most other AGG systems are adapted from the early submarine-based technology and because of
their size can only be flown on a fixedwingedaircraft.
Dubbed HeliFalcon, it offers the
advantage of being able to closely follow
JPT FEBRUARY 2015
rugged terrain while maintaining quality

signal acquisition, CGG said. The company has two HeliFalcon units and is
expecting the delivery of a third later
this year.
Van Galder said the propeller turbine airplanes that CGG uses for the
larger analog systems operate at ranges between 80 m and 500 m compared
with the helicopter-based units that fly
between ranges of 35 m and 150 m. Also

important is the helicopters ability to fly
slower. With the slower speeds, you get
more data, he said.
For each operation, CGG develops a flight plan that outlines the altitude and spacing needed to get the
best results. The flight paths are gridded, meaning that the helicopter will
fly in tightly spaced lines in one direction and then fly perpendicular to those
lines with wider spaced lines that provide control points, which help level
the survey data together. Once the helicopter touches down and the data is
downloaded, the gravitational numbers
are interpreted.
CGG said much of its focus for the
future development of this technology is on improving the resolution and
the interpretation software. In addition to oil and gas, AGG technology is
used to find minerals, diamonds, and
faultstructures.JPT
45
E&P NOTES
Mexico Receives a Cautious Endorsement for Investment

Jack Betz, JPT Staff Writer
Despite shallow-water, conventional
areas being some of Mexicos most promising plays for international operators in
the short term, the economic factors surrounding them are not robust, even at
higher oil prices.
During a December presentation at
the Petroleum Club in Houston, Alan Cunningham, technical director at Gaffney,
Cline & Associates, said that assuming an
oil price of USD 80/bbl and a 50/50 production-sharing agreement with the Mexican government, the firms pro forma
model projected that a generic, shallowwater, light oil discovery of 50 million bbl
would yield a 12.4% return. Even at the
models designated oil price, which is significantly higher than the current price,
Cunningham stated that a 10% swing in
any of its variables could destroy economic viability.
Despite the models marginal projections, conventional plays in general are
likely to contain impressive finds, Cunningham said. We are so far along the
maturity curve in the US versus where
Mexico is that the size of prospects in the
conventional areas is going to be attractive to investors, he said. And because
Mexicos national oil company Pemex has
operated in onshore and offshore conventional plays for decades, the pipeline
in place could drive shorter lead times,
depending on the location.
Deepwater and unconventional
agreements resulted in not far-off rates of
return; each was below 12% when modeled. However, less work has been done
in these plays by Pemex, making them
harder to gauge. Blocks in the Chicon-
tepec area offer little access to pipelines

and there is none in Mexicos Eagle Ford
or deepwater blocks.
While each of these three play types
was projected to produce only modest returns, Cunningham reminded the
audience that Mexicos roughly 75%
take in these models is not an unheard
of amount internationally. In countries
such as Indonesia, the government often
enjoys an 85% after-tax take, which is
even higher without cost recovery, a practice in which a contractor is reimbursed
by its government partner for some
operationalexpenses.
The key variables that operators will
have to grapple with when negotiating
contracts will be the agreed upon minimum investment and profit split. Favorable negotiations on these two factors
could give operators more leverage and
security. That economic bid variable is
where you are going to win it or lose it,
said Cunningham.
Contract challenges aside, companies
that choose to enter Mexico face an overall favorable environment, according to
the consulting firm. The three determining factors are resource potential, fiscal
regime, and nontechnical risk.
Resource potential comes first in
determining value. Thats something you
cant change with smart business strategy
or good negotiating tactics, Cunningham said. The firm scored Mexico positively in this area, citing the 120 billion
bbl in crude reserves that Mexico claims
as an attractive enough number to merit
interest. It places Mexico in fifth place in
the Americas, ranking below only the US,
Canada, Brazil, and Venezuela, all countries known for robustreserves.

Aside from reserves, the other part
of evaluating resource potential is how
easy or difficult it is to participate in
auctions and understand how to place
competitive bids on the kinds of acreage that oil companies are interested in
developing. Mexico receives good marks
here,too.
The fiscal regime in Mexico, as it
applies to international operators, is
so far untested. However, Cunningham
said that the Mexican government has
demonstrated transparency and that tax
structure, land fees, and royalties should
be familiar to operators. The government has pledged to release model contracts that will help familiarize operators
with the blocks available for bidding in
RoundOne.
The last factor is nontechnical risk,
or cultural and environmental factors specific to operating within the border of a
particular nation. The firm rated 10 possible risk factors as red, yellow, or green
for high, medium, or low concern. Half
of them were marked green; experience/
capacity, regulator gaps, service company
presence, and water/infrastructure limitations were yellow; and internal security
was red.
Cunningham said that many of the
yellow areas are of marginal concern and
stand a good chance of turning green after
more experience on the part of the Mexican government and companies operating
in the region. Security remains a serious
issue in some parts of Mexico, especially
in the Eagle Ford Shalearea.JPT
Steel Pipe May Offer A Window Into Reservoirs

Stephen Rassenfoss, JPT Emerging Technology Senior Editor
Add a new possible use for downhole casing: It can serve as broadcast antennae.
Saudi Aramco recently reported that it
has successfully tested a method for mapping oil and water underground using
46
electromagnetic waves generated by running an electrical current through the

steel casing in a well (IPTC 17845).
The method could represent a
cost-saving step forward for the Saudi
Arabian national oil companys longterm effort to monitor changing fluid

flows in its reservoirs with electromagnetic energy to study how water
injected into its fields is sweeping
JPT FEBRUARY 2015
Transmitter
Borehole
with Casing
(a)
Counter
electrode
at the
surface
Distant counter
electrode
Distant counter
electrode
Wireline to
downhole
electrode
Distant counter
electrode
Distant counter
electrode
Transmitter
connected directly
to the borehole casing
Path of
electric
current flow
within the
Earth (typ.)
Source
electrode
at depth
(b)
Paths of
electric
current flow
within the
Earth (typ.)
(c)
Paths of
electric
current flow
within the
Earth (typ.)
Saudi Aramco researchers have tried three approaches to creating electromagnetic images by running a current from an
electrode in the well to a second on the surface. The first two, (a) and (b), require putting an electrode at the bottom
of the well, which sends a current to an electrode on the surface. The company is now testing a method of creating the
electromagnetic field by running a current through the casing (c). Graphics courtesy of Saudi Aramco.
out the remaining oil, and see what it

is missing.
Previously, Saudi Aramco created
the electromagnetic field needed for this
imaging method by using electrodes deep
in the well to send an electrical current to
electrodes on the surface. Arrays of up to
1,000 field sensors as far as 4 km away
from the well gather data on how fluids in
the reservoir respond to the energy field.
JPT FEBRUARY 2015
Water and oil respond differently

when stimulated by an electromagnetic
field. The high salinity water in Saudi reservoirs is an electric conductor, while oil
is not. The difference in resistivity shows
up in images, which also note differences
in induced polarization caused by electromagnetic energy.
The goal is to map fluid distribution
and how it changes over time to iden-
tify and describe zones of hydrocarbons

bypassed by water injection. This could
be used to increase recovery factors and
avoid premature water breakthrough,
said Alberto Marsala, a petroleum engineering specialist for Saudi Aramco production research and development. He
presented the paper at the recent International Petroleum Technology Conference in Kuala Lumpur.
47
E&P NOTES
Using methods and equipment
from two US companies, GroundMetrics
and Berkeley Geophysics Associates, the
new method creates a similar electromagnetic field by running a relatively
low electric current from a connection
to the casing at the surface, avoiding the
need to insert an electrode in the well.
The approach is promising because
this allows a similar way to convey electromagnetic signals with a big advantage on cost, Marsala said.
If this method proves able to produce useful images, it could reduce the
cost and production interruptions associated with inserting equipment into a
well, thus enabling the wider use of the
method, which has been used in Russia
and China. Using a casing to create an
electromagnetic field is also easier to do

in horizontal wells where tractors must
be used to pull devices to the bottom of
the hole.
Recent tests did not reveal any
practical barriers to the new method.
The tests of the casing-based method found that the 40 Amp current used
creates a voltage that appears predominantly at the surface electrodes. Marsala said it is safe to hold the casing
duringtransmission.
While electric currents can speed
corrosion, shortening the life of the
pipe, the test concluded that this application would cause only minor metal
loss, allowing long-term monitoring.
As for imaging, the paper said the
top-hole casing method, like the previ-
ously development approaches, has the

potential to detect fluid movements in
hydrocarbon reservoirs using sensors
deployed on the surface.
A large-scale field test was planned
for early this year, Marsala said. Electromagnetic testing would add to the
data sources used by Saudi Aramco for
reservoir modeling. The company is
working on others, including a seismic
method for tracking fluid flows, and
downhole gravity measures that are sensitive enough to distinguish the difference between oil and water. The barrier to in-well gravity testing is creating
an affordable tool that is slim enough
to fit into wells and perform reliably
in hot places where it is likely to be
bangedaround.JPT
ExxonMobil Report Sees North America as Net Exporter

of Oil and Gas in 5 Years
North America is expected be a net
exporter of both oil and natural gas
by 2020, according to ExxonMobils
Outlook for Energy: A View to 2040
report, which was released in December.
The report sees Latin America, Africa, Russia, and the Middle East joining
the US as net oil exporters while Europe
and Asia will remain net importers. By
2040, unconventional sources will provide approximately 45% of oil and liquids production around the world. Tight
oil will make up the largest share of
unconventionally sourced liquids, followed by oil sands.
As North America achieves gas
exporter status, Russia, the Middle
East, and Africa will remain net exporters. Latin America will fall short of
being a net exporter by 2020 as gas
demand in the region increases by
48%. Europe and Asia will continue
to import gas. In North America and
Asia, unconventional natural gas production will grow, while conventional
sources continue yielding the majority
of the remaining worlds gas according
48
to the report, a widely watched industry benchmark.

ExxonMobil projects that global
energy demand will rise by 35% between
2010 and 2040, a figure which assumes a
significant increase in energy efficiency.
Without accounting for worldwide progress on efficiency, the report projects
that energy demand would increase by as
much as 140%. The increase translates
to a roughly 28% growth in oil demand
and a 63% growth in natural gas from
2010 to 2040.
Consumption will be driven by what
the Brookings Institution sees as a more
than a doubling of the worlds middle
class population, from 2 billion starting in 2010 to almost 5 billion in 2030.
Gains in income in non-Organization
of Economic Cooperation and Development (OCED) nations will drive further
electrification, improved infrastructure,
and more personal transportation, all of
which bring an increased expenditure
ofenergy.
The global fuel mix will shift slightly
from 2010 numbers, but by 2040, oil, gas,
and coal will still continue to dominate as

the top three preferred fuels. Oil and coal
will both lose market share to natural gas
as it becomes the second most-used fuel.
Although natural gas usage (26% of total
energy by 2040) is expected to outstrip
coal (19% of total), ExxonMobil projects
that demand for coal will stay strong in
developing countries such as China until
2025, after more industrialization has
taken place and the country embraces a
cleaner fuel mix as many OECD members
have done historically.
Transportation demand for natural
gas increases sevenfold between 2010
and 2040, yet gas will only increase its
market share in this category from 1%
to 5%. Oils transportation market share
falls from 93% in 2010 to 88% in 2040,
but worldwide demand for oil increasesby 28%, the outlook said.
Renewable power generation methods other than hydroelectricity and wind
will have nearly doubled their market
share to 7%, but will still remain far
behind nuclear which triples its 2010
share of 5% by 2040. JPT
JPT FEBRUARY 2015
GLOBAL OIL PRICES
Battle for Oil Market Control

Could Have a Lasting Impact
Stephen Rassenfoss, JPT Emerging Technology Senior Editor
Expectations of continued USD 100/bbl

of oil were shattered by a sharp price
drop last year that eventually halved the
prices of benchmark crudes. Prices were
still sinking at the start of the year to lows
not seen since 2009 due to a global oversupply of oil.
The US has gone from the worlds
best import market for oil to a market
moving producer, and a large and growing exporter of refined products. Total
US output rose from 5 million B/D in
2008 to 9.2 million B/D in December,
according to the US Energy Information
Administration (EIA), which predicts
9.3millionB/D by the end of this year.
While the magnitude of the drop
rivals the one in 2009, the cause of it
resembles the longer-lasting downturn
that began in the 1980s, after a run of
high prices rapidly expanded oil supplies,
creating a glut.
The rise of oil flowing from US shale
formations has sparked a battle for control of the market with OPEC, which
has been unwilling to reduce its production to prop up prices because that
would further erode its share of a market where production outside OPEC rose
by 2 million B/D in 2014, according to
the EIA, which said demand was up by
900,000B/D.
OPECs goal is to
ultimately
reduce production by forcing output reductions by what Saudi A
rabian
Minister of Petroleum and Mineral
Resources Ali al-Naimi has described as
inefficientproducers.
The strategy, which allowed the
price of a barrel of oil to drop to less
than USD 50 early this year, appears
aimed at the independent companies
producing millions of barrels a day
from tight, unconventional formations,
where the cost of extracting oil is far
more expensive than Saudi Arabias
world-classreservoirs.
So far the news suggests this could
be a slow-moving process. The large,
public US producers have announced significant reductions in planned exploration and production (E&P) budgets, but
still predict greater production in the
year ahead.
In mid-December, when al-Naimi

was asked if OPEC would act to
reduce supplies, he said, As a policy
for OPECand I convinced OPEC of
this...it is not in the interest of OPEC
producers to cut their production, whatever the price. Whether it goes down to
USD 20, USD 40, USD 50, USD 60, it
isirrelevant.
Around the time that comment was
reported from a conference in the Middle East, a story from Bloomberg quoted
Harold Hamm, chief executive officer of
Continental Resources, as saying that US
producers can lower their price of production more than OPEC countries can,
and calling the organization a toothless tiger.
Both sides have reason for tough
talkmany US independents like Continental have staked their future on shale,
and OPEC countries see that growth
reducing their export income and ability
to influence oil prices.
Armed with world-class reservoirs
and a deep cash reserve, Saudi Arabia
can afford to live on less. The EIA pre-
Dollars per barrel
200
150
100
50
0
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Cushing, OK WTI Spot Price FOB

After the mid-1980s energy bust, the price of the benchmark US crude (West Texas Intermediate) remained relatively
steady until the year 2000. This is the second sharp price drop in less than 10 years. Source: Thomson Reuters/EIA
JPT FEBRUARY 2015
49
GLOBAL OIL PRICES
Million barrels per day
2.0
US ImportS ShrInk
The United States is importing
less, and exporting more fuel
and chemicals made from locally
produced hydrocarbons. The result
is a rapid decline in net imports.
Forecast
1.5
1.0
0.5
0.0
0.5
1.0
1.5
2013
OPEC countries
2014
North America
2015
Russia and Caspian Sea
Latin America
North Sea
Other Non-OPEC
Year
Quarter
Net Oil and

Liquids
2013
1
2
3
4
6.56
6.64
6.46
5.30
2014
1
2
3
4
5.38
5.18
4.98
4.18
2015
1
2
3
4
4.11
4.27
4.30
3.59
Oil production changes by region. Source: EIA
dicts oil at USD 68 would mean a 35%

reduction in OPEC oil export revenues,
and oil prices have dropped significantly from there. The Saudis face pushback
from OPEC members, such as Venezuela, which lack the low-cost production
and cash reserves. They have asked for
an emergency OPEC meeting to consider production cuts, but Saudi Arabia has
blocked any meeting before the next regularly scheduled one in June.
Moves by OPEC to raise prices would
reduce the pressure on unconventional
producers, who are feeding a boom in US
refinery construction, which could further increase exports, reducing demand
from refineries around the world for
OPEC crude.
And to make matters worse, China,
the worlds largest importer, is working
to limit its future demand. Wood Mack-
enzies recent global outlook said, Chinas economy is evolving and the nature
of its energy demand growth is changing. A more rapid than expected shift
to consumption-led growth could slow
energydemand.
For independents, discussions of
how long they can hold out in this test of
wills commonly comes back to the question: What is the break-even price for
US shale producers? The goal is a price
where the losses will force them to shut
in wells.
So far that question has remained
unanswered. Based on statements from
US companies and analysts, lower prices will slow the growth of US shale plays
and be a severe financial stress test for
E&P and oilfield service companies.
Aggressive cost reduction moves have
already begun, including layoffs, and
Source: US Energy Information Administration
bankruptcies and forced sales of weaker companies are expected in a business

that grew by borrowing hundreds of billions of dollars.
Forcing US producers to significantly cut production could require years of
low prices. A study of production from
North Dakotas Bakken formation found
that if the price paid to producers there
drops to USD 35about USD 5 below the
price paid in the state in early January
production will slow by July to 1.03 mil-
1,000
900
Billion USD (real, 2013)
800
USD 703
700
600
500
USD 446
400
300
December
Short-Term
Energy Outlook
forecast
200
100
0
1975
1980
1985
1990
1995
2000
2005
2010
2015
OPEC has had declining export revenues because of declining volumes, and revenue is expected to drop further with
falling oil prices. This prediction assumes oil at USD 68/bbl. Source: EIA.
50
JPT FEBRUARY 2015
Consistent frac placement makes optmizaton possible.
The most efcient feld frac network

starts with predictable frac spacing and
predictable propped volume.
Predictable: Multstage Unlimited casing sleeves
Unpredictable: plug-and-perf
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with cemented casing sleeves to deliver predictable, verifable frac spacing
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ncsmultstage.com
2015, NCS Multistage, LLC. All rights reserved. Multistage Unlimited and The Technology are trademarks of NCS Multistage, LLC.
GLOBAL OIL PRICES
Oil sands grOwth

The output from the Canadian oil
sands is expected to rise as projects
under construction come on line. But
new projects will not begin until oil
prices rebound.
Year
Oil Sands Production

(1,000 B/D)
2005
974
2006
1,119
2007
1,190
2008
1,201
2009
1,340
2010
1,470
2011
1,619
2012
1,797
2013
1,945
2014
2,106
2015
2,272
*Actual and projected amounts from a June

2014 report
Source: Canadian Association of Petroleum
Producers
lion B/D from 1.2 million B/D, according

to the North Dakota Department of Mineral Resources. If that price persists until
mid-2017, the loss is expected to be less
than 500,000 B/D.
For the last 3 months, I have left
every meeting with an international
company or US company telling them I
wouldnt make a business decision based
on US production being less important
from an oil standpoint in the future, said
R.T. Dukes, senior analyst at the energy
research firm of Wood Mackenzie.
More for Less

The answer to the widely asked question
about the break-even price for US shale
production is that it varies widely and
is likely to change over time. Those who
follow unconventional producers say the
cost of producing a barrel of oil from
shale differs from play to play, company
to company, and well to well. And the
number will likely change this year as
unconventional producers push hard to
cut costs and increase productivity.
52
We have seen almost across-theboard cuts in E&P spending, but companies continue to project growing output,
Dukes said. If they succeed, oil prices at
USD 75 in 2015 might provide the same
opportunities at USD 90 in 2014 as companies lower costs and hone in on the
best areas.
While the growth rate will slow, drilling new wells to more than replace rapidly declining output from old ones is going
to require aggressive cost reductions.
Everything we see is operators cutting budgets. Some 20% to 50%, some
60%. The norm is in the 20% to 30%
range, said Christopher Robart, director
of Energy Insights at the energy information firm IHS. At the same time, most
operators are currently forecasting single-digit growth in production for 2015.
In the short run, operators can focus
on prime prospects in areas where they
have learned how to optimize production. Keeping production rising over the
longer haul will ultimately require investment in new areas with higher costs during early development periods.
Low prices are expected to limit
future growth in the Canadian oil sands
where producers are expected to complete announced expansion projects,
increasing the output of the tarlike bitumen to 2.27 million B/D in 2015, up from
1.95 million B/D in 2013, according to the
Canadian Association of Petroleum Producers 2014 annual forecast.
Oil production in Canada has more
than doubled over the past decade and
is expected to rise, even with lower
oilprices.
The price challenge is magnified
because heavy oil sands crude sells at
a discount due to higher shipping and
refining costs. But that is not likely to
shut down current operations, or construction in progress, said Andrew
Leach, a professor at the University of
Alberta. With oil sands, existing production is fairly robust. Some have operating and sustaining capital costs under
USD 20/bbl. But the new stuff is whats
at risk, Leach said. Unlike a shale
play, you would not need the same
level of reinvestment to keep produc-
tion constant (in an oil sands project),

but youd need a lot of investment to
growproduction.
This could slow oil sands growth
because proposed projects cannot meet
the profit threshold required for financing a project when prices are down. I
think its likely that, unless things get
a lot worse, youll see most of the projects under construction completed, but
I doubt anyones going to announce new
capacity beyond that, Leach said.
Shale developments do not carry the
enormous up-front costs of an oil sands
project, but it takes significant money
and time to lease acreage and to figure out how to profitably produce oil in
anarea.
Until now, bankers and investors
have been willing to lend money, often in
the form of high-risk debt known as junk
bonds, and buy stock to help companies
through this period of negative cash flow.
The big drop in the value of E&P stocks
and bonds suggests that those sources of
funding are going to be tough to come by
for some time.
The Big If
This year, unconventional producers,
such as Continental Resources, will need
to prove they can produce considerably
more oil for significantly less cost. It
added to the pressure to do so by closing out its hedging positions last fall,
which had previously locked in higher
prices for oil sold, even as the markets
declined. The widely publicized move
paid it USD433 million, but exposed Continental to the risk of falling prices.
Reducing the companys break-even
costs will require a combination of loweroperating and materials costs, as well as
more productive wells.
For example, Continental released
a revised 2015 E&P budget in December, chopping its expected spending
to USD 2.7 billion, which is 10% less
than it spent last year and far less than
its original 2015 budget. It predicted
that production would rise from 16%
to 20%.
On the cost-reduction side, its budget called for a 15% reduction, lower-
JPT FEBRUARY 2015
Million barrels per day
3.0
Saudi Arabia
Kuwait
Iraq
Nigeria
Libya
Iran
2.5
2.0
1.5
1.0
0.5
0.0
Jan 2011
Jul 2011
Jan 2012
Jul 2012
Jan 2013
Jul 2013
Jan 2014
Jul 2014
A significant variable in global oil supplies is the large amount of OPEC

production that cannot be exported. For example, Libya and Iran may produce
more or less oil, depending on whether their problems become better or
worse. Source: Short-Term Energy Outlook, December 2014.
ing the number of drilling rigs running

from 50 to 31 as it focuses on its best
acreage in the Bakken, and to a lesser
extent on newer plays in western Oklahoma. On the production side, the company said it planned to rapidly apply what
it has learned from field tests last year
that indicated it could increase its estimated ultimate recoveries (EUR) from
approximately 600,000 BOE per well to
800,000 BOE.
In its second quarter earnings
report last year, Continental said that it
had been able to achieve increases on
that scale by varying its fracturing fluids
with formulas using little or no gel. That
approach is a break from what had been
common practice in the Bakken. It also
reported promising results from using
two and three times as much proppant
injected using shorter stages. It is also
testing whether to add fracturing stages, from 30 to 40 per well, and the ideal
spacing for them.
But those projections were made
when oil at more than USD 70/bbl was
still a fresh memory, and few were predicting it would go down to less than
USD 50.
With oil prices so volatile, projections of spending and production from
unconventional formations have been
in flux. Some producers had not offered
E&P spending budgets in December
because of the level of price uncertainty
while others put out revisions.
Benchmark prices near USD 50/bbl
have altered price perceptions. On a
JPT FEBRUARY 2015
day when the West Texas Intermediate price was flirting with USD 55/bbl,
Robart said US shale exploration companies would be ecstatic at USD 70 to
USD 80.
The Bakken Test

Bakken production this year could be a
telling indicator. Among the three biggest US shale plays, which also include
the Eagle Ford and the Permian Basin
in Texas, it is said to be the toughest case.
Break-even prices there are generally considered higher because the formation requires relatively deep wells,
which cost more to drill. Also, the price
paid has consistently been lower than
the benchmark because shipping the
oil is more expensive as much of it
must be shipped by rail due to limited
pipelinecapacity.
It is an example of how hard it is to
find a break-even price in an enormous
play. People want us to say the Bakken
is economic or not, Dukes said. It is
not great is some areas in the Bakken
and really good in others, and the same
is true in all the other plays.
North Dakota drilling rig counts
began declining in December, and that is
just the start. The rig count in the Williston Basin, which includes the Bakken, is
set to fall rapidly during the first quarter of 2015, according to the monthly
newsletter from Lynn Helms, director of
the North Dakota Department of Mineral Resources, which regulates the indus-
try. Break-even levels in 12 areas of North

Dakota ranged from USD 29 to USD 77,
according to the department. The lowest
were reported in three areas clustered
in southwestern North Dakota where
the break-even ranged from USD 29 to
USD 41. (Break-even is defined as a price
allowing a 20% internal rate of return).
Drilling fewer wells in formations
known for rapid production declines
would seem to guarantee a lower output, but in 2009, during the last oil price
swoon, that did not happen. Back then,
the Baker Hughes rig count in North
Dakota sunk from 89 rigs in November
2008 to an average of 35 in May 2009.
While Bakken production slipped early in
2009, by December it was up 45% from
the same month in 2008.
That showed how companies can
improve young technologies. But back
then, prices and the rig count were
recovering by years end, which may not
be the case this time around. Also this
When oil prices plunged in late

2008 the number of rigs drilling
dropped, but production continued
to rise. The average number of rigs
working in North Dakota dropped
from 68 in 2008 to 50 in 2009.
North
Dakota
Rigs
Working
B/D
Year
Month
2008
July
Aug.
Sept.
Oct.
Nov.
Dec.
69
73
74
78
89
83
76,424
83,072
94,287
109,929
122,054
112,784
2009
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
68
63
50
43
35
36
41
44
47
51
56
62
100,904
106,040
111,219
114,106
123,427
132,882
146,783
151,522
157,970
161,239
165,719
164,578
Sources: Baker Hughes and North Dakota

Department of Mineral Resources.
53
GLOBAL OIL PRICES

time, far more barrels a day need to be
added to sustain more than 1 million B/D
ofproduction.
Difficult Conversations
A sharp drop in prices and the number
of rigs working should speed the transition to new rigs able to drill wells faster,
and allow operators to choose from the
best remaining workers. Companies will
focus on well-known areas where they
have learned how to produce most efficiently and have paid for the infrastructure to do so. Customers have already
begun squeezing service providers for
costconcessions.
I have been forwarded a number of
pricing decreases from operators seeking discounts from providers from 20%
across the board to 30% requests, from
companies doing completions, Robart
said, adding, those are just a starting point for negotiations. We expect
price concession for hydraulic fracturing services in the range of 5% to 10%

for2015.
Based on what he observed while
gathering data about the hydraulic fracturing sector for PacWest Consulting,
which was acquired in November by IHS,
many pressure pumping companies may
have little to give. Making money in shale
oil production has required a constant
effort to grind down costs.
There is a lot of equipment that
has been worked really hard and needs
to be replaced. A lot of it has been working past its recommended life cycle, he
said, adding, As prices fall, some companies are really struggling. In the next 3
to 6 months I expect some consolidation
and some fire-sale acquisitions of smaller players.
Although some acquisitions and layoffs have been announced, it is still early
in the process.
One big acquisition occurred early,

when Halliburton agreed to take over Baker
Hughes. While the two companies work
through the long process to close the deal,
Halliburton has been readying itself for a
slowdown, with 1,000 layoffs announced
in its Eastern Hemisphere operation, and
more are expected thisyear.
More deals are expected as financially strong companies seek out lowpriced reserves or equipment in the takeover market. But it is hard to get two
sides to agree on a deal when the expected future price of oil covers a wide range.
Acquisitions are not expected to
begin until later this year, when the oil
markets are less volatile and it is possible to better predict future prices. Sellers do not want to sell based on USD70
oil, and buyers do not want to buy
assuming USD 90, Dukes said. Usually it takes more time for both sides to
get more comfortable with prices.JPT
Low Oil Prices and Stiff Competition

Causes of Anxiety for Graduates
The largest-ever class of petroleum engineering students in the US is graduating into a job market that was weakening
under its weight even before oil prices fell
below USD 90/bbl in early October.
Since the mid2000s, enthusiasm
about shale and
increased production in the US has
flooded universities
with students drawn
hill
by the promise of
high-paying jobs. Now that the number
of students pursuing these degrees in the
US has exceeded the record levels of 1982
and oil prices have fallen sharply, competition for jobs has increased, according to Dan Hill, head of the department
of petroleum engineering at Texas A&M
University and SPE Director of Academia.
54
While many Texas A&M students

receive job offers by the end of their final
fall semester as a result of internships,
there is normally 15% to 20% of the class
still looking for permanent employment
in the spring. The rest of the class that
is left without a job is certainly facing a
more challenging job market than a year
ago, said Hill.
Texas A&M SPE Student Chapter
President Jennifer Wisler noticed a slowdown in recruitment in September, during a job fair, months before the oil price
decline accelerated.
I think that there
were a few companies that started
to predict the fall in
prices, said Wisler.
And when we had
WiSlER
our career fair,
there were way more internships being

offered than full-timepositions.
Twenty-eight companies attended the chapters fall career fair, and
nine of them, or less than a third, made
full-time job offers, which was a significant drop compared with previous
years, Wisler said. Many of the companies that offered full-time jobs only
had one or two positions open, and to
make matters worse, some offers were
laterretracted.
Wisler said that a dire need for more
recruiting led the chapter to organize a
second job fair, which will be held in February. Normally, the chapter holds one
job fair per year, in addition to the universitys general engineering job fair.
Aziz Rajan, president of the SPE student chapter at the University of Houston
(UH), also noticed a lack of recruitment at
JPT FEBRUARY 2015
RESOURCES
his universitys job
fair and said that oil
prices are only part
of the problem. I
think a major problem for not only
University of HousRAJAN
ton, but other universities as well, is our size, said Rajan.
Despite being only 5 years old, UHs
petroleum engineering program already
has more than 900 students.
In the months before the slide in
prices, Rajan noted that more UH petroleum engineering alumni were taking
jobs further away from the wellhead. We
see it now with new graduates. Theyre
not necessarily practicing petroleum
engineering. Many are going into less
technical careers, like sales, he said.
The Way Ahead

While the current job market is affecting students around the world, Hill said
graduates in the United States will likely
be hit the hardest for two reasons.
Firstly, it is less complicated for US
operators to slow down in many of the
countrys key plays than it is for operators in other locations. For many places
overseas, oil and gas developments are
very large, long-term projects, for example, deepwater activities offshore Brazil,
he said. And these types of things cant
be turned on and off nearly as easily as
drilling wells in the Permian Basin.
Secondly, national oil companies,
which are prevalent outside the US, offer
cushioning for some countries graduates
because they are less likely to lay off large
numbers of workers when oil prices drop.
In order to improve their chances of
finding jobs, Cindy Reece, SPE Technical
Director for Management and Information from 2012 to 2014, suggested that
students keep their career options open
and have flexible goals, especially dur-
JPT FEBRUARY 2015
ing slower periods. For example, even

though many students may have their
sights set on jobs with operators, there
are significant benefits to taking more
hands-on positions, such as those with
service providers, she said.
At the operator level, you are doing
more design and oversight of work, said
Reece. And you miss a lot if you dont go
through that hands-on stage. By doing
so, you know what youre asking people
to do and how best to do it.
Student chapters also play an
important role in boosting graduate
placement, which students seem to be
recognizing, said Wisler and Rajan, who
both reported an uptick in chapter activity during the fall 2014 semester. J.C.
Cunha, SPE Technical Director for Management and Information, stressed the
importance of student members taking advantage of technical talks, Distinguished Lecturer visits, and chapter events, which provide visibility and
networkingopportunities.
In the long term, SPE is constantly taking steps to improve student preparedness and consequently enhance
their job attractiveness to employers.
For example, the 2020 Foresight
Ensuring Educational Excellence for
Upstream Engineering Resources
forum, which was chaired by Reece in
2013, allowed SPE leaders to discuss
with members of academia the kinds of
skills that petroleum engineering graduates need to achieve success.
One major obstacle to preparing
graduates for their careers is the increasingly unbalanced student-to-professor
ratio, which Reece said is becoming so
critical in some places that it threatens
to take a toll on the quality of education.
To alleviate the problem, SPE continues
to offer awards and grants to encourage
more engineers to become professors
and academic researchers. JPT
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CONFERENCE REVIEW
Low Oil Prices Make Innovation a Priority

Stephen Rassenfoss, JPT Emerging Technology Senior Editor, and Abdelghani Henni, JPT Middle East Editor
A sharp decline in oil prices is pushing oil and gas companies to innovate to
increase efficiency and prepare to meet
the worlds long-term energy needs, panelists said at the International Petroleum
Technology Conference (IPTC) held in
Kuala Lumpur, Malaysia, in December.
Under the theme of Innovation and
Collaboration: Keys to Affordable Energy, the IPTC attracted an attendance
record 10,318 industry professionals
from 68 countries. Hosted by Malaysian

state oil company Petronas and cohosted by Shell and Schlumberger, the conference featured a ministerial session,
high-level plenary and panel sessions, a
comprehensive multidisciplinary technical program, an exhibition, a young professionals workshop, and various educational activities.
The 3-day conference was opened
by Dato Sri Abdul Wahid Omar, a min-
ister in the Office of the Prime Minister of Malaysia, who delivered the keynote speech about the paradox of energy
affordability. One side is positive, with
more affordable prices for those buying oil and gas, thus aiding consumers
and the economy. The other side is negative for oil producing countries such as
Malaysia, whose collections on production represent more than half of government revenues.
Dato Sri Abdul Wahid Omar, a minister in the Office of the Malaysian Prime Minister, spoke at the opening ceremony of
the eighth International Petroleum Technology Conference.
56
JPT FEBRUARY 2015
Energy correspondent Eithne Treanor, left, moderated the Executive Plenary Session. Matthias Bichsel, formerly of Royal
Dutch Shell, center, and Raoul Jacquand, executive vice president at CGG, right, were two of thepanelists.
Against the backdrop of weaker oil

prices, companies are becoming cautious.
Expenditures are cut as they optimize
costs. It raises question about the viability of certain high-cost projects, he said.
A development slowdown could
magnify the impact of lower prices on
the economy of oil producing countries.
It is the only industry where a change in
the business environment carries a great
impact not only on individual companies, but also on entire countries, Abdul
Wahid said, noting that advanced exploration and production (E&P) methods
in places such as North America have
added production that he said is flooding themarket.
In Malaysia, Petronas has begun
reducing spending on projects to expand
production, which is a decision being
faced by producing countries around
the world that have seen oil prices drop
approximately by half from more than
USD 100/bbl.
The daunting task facing oil producers is ensuring that energy output is
JPT FEBRUARY 2015
continued, Abdul Wahid said during his

opening address. He talked about how
the Malaysian government has worked
to diversify its economy, allowing it to
ride out the current disruption in oil
prices without disrupting its economic
programs to raise the living standards of
its people.
At an international meeting highlighting the accomplishments of Malaysias energy sector, the elephant in the
room is the oil price, said Dato Wee Yiaw
Hin, executive vice president and chief
executive officer of upstream at Petronas.
After 4 to 5 years of stable oil prices, it is a
pity we are facing these problems again.
Wee said the major disruption in
prices will lead the industry to look at
how innovation and technology can help
us face this challenge. More efficient
operations can sustain long-term projects that will be needed to supply a world
in which the growing population and rising living standards will ultimately create
the demand that will boost prices again,
he said.
Do Not Panic
Meanwhile, the consensus among panelists at the Executive Plenary Session
was that the industry should not panic
because of lower oil prices and should
take the opportunity to strengthen its
base to prepare for the next phase of oil
and gas industry development.
Speakers at the panel agreed that
companies need to learn from past
price declines, which showed the value
of spending on continued research and
development and to hold on to staffers
with valuable skills.
Matthias Bichsel, former director of projects and technology at Royal
Dutch Shell, said that lower oil prices
are not something to panic about, referring to his long experience in the industry, during which he has witnessed a
lot of panic. Our industry is a cyclic
industry, and this cyclicity of the business needs to be managed through collaboration and innovation, he said.
Low prices are a great opportunity to
worktogether.
57
CONFERENCE REVIEW
At the opening session of the International Petroleum Technology Conference

Dato Wee Yiaw Hin, executive vice president and chief executive officer of
upstream at Petronas, said falling oil prices had become the elephant in
theroom.
Because of the nature of the business, the industry seems to be worried

about the ups and downs rather than
looking for ways to deal with the cycles.
Instead of panicking, we should have
thought of how to manage this business
through the cycle. How can we create
and narrow the band within which we
can operate through innovation and collaboration? Bichsel said. This period
is a great opportunity for the industry
to work better and reshape its way of
doingbusiness.
The leaders of oil companies need
to realize that even in a difficult environment, innovation can be the most affordable option. Affordable means within
the boundaries that oil companies will
operate, which also means a wakeup call
for us to work on game-changing technologies that will allow us to go through
this challenging period, said Raoul Jacquand, executive vice president at CGG.
Cost overruns were a problem
before commodity prices dropped. Over
the past 10 years, capital expenditures
are up 400% while production is up
15%, said Jeff Spath, vice president of
industrial affairs at Schlumberger and
58
2014 SPE President. Cost escalation is

one of the most widely acknowledged
issues facing upstream today, he said.
It was clear that the problem was
coming, said Patrick Schorn, president
of operations and integration at Schlumberger. The lower oil price makes things
a bit acute, which means there is a lot we
need to do as an industry. And, with a
low oil price, we need to do this faster.
Among the things the industry
needs to do is develop newer technologies, which may include extra costs. But,
Schorn said, companies need to think
about these technologies as an efficiency driver. There are many technologies
that have been developed recently focusing mainly on how we can operate efficiently, he said. If we look at the failure rate of our industry, which could be
due to tools or procedures, there is a lot
more that we can do to improve this.
Technology is supposed to lower
overall costs, but the opposite can happen. Tan Sri Dato Seri Shahril Shamsuddin, president and group chief executive officer of SapuraKencana, said,
We should set ourselves a benchmark
of prices, which will allow us to innovate
in terms of services, business model, and

also our own financial situation.
That raises the question of who sets
the price. As oil prices increased, different participants decided to take a cut,
which pushed prices higher, he said. The
solution is to set the target in a low-cost
environment, and certain technologies
need to be commoditized, he said.
Technology developers at the session did not agree on the idea of commoditizing oil and gas technology. New
technology has a higher price because
people need it. If they dont need it, it will
be cheap, Schorn said.
Shamsuddin said that commoditizing oil and gas technology is possible
given that the top four innovative companies right now are technology companies. Why not in the oil and gas sector?
he said.
Meanwhile, Bichsel said that prices are set by expectations in the market,
and he urged the industry to collaborate
and be more transparent about the basis
for costs. Lowering cost is essential,
he said.
Datuk Mohd Anuar Taib, senior vice
president of upstream Malaysia at Petronas, said that a lot of innovation comes
from competition. Collaboration needs
to have a sort of competition so the business environment can flourish, he said.
Time to Experiment
Falling oil prices offer an opportunity
for companies to look for new ways to
slash costs. This reversal represents a
shift in what looks risky. When oil was
selling for more than USD 100/bbl, the
fear was that something might fail and
reduce returns. However, when profits
take a hit, there is a hunger for trying
something better, particularly if it can
lower costs.
In my 35 years in the industry,
I have seen innovation acceptance go
through cycles, said Rustom Mody, vice
president of technology at Baker Hughes.
The introduction of new technology is
quite different for the unconventional
market and conventional market.
Independent companies with limited resources in the middle of the cost-
JPT FEBRUARY 2015
ly process of figuring out difficult shale

formations are willing to try new things,
he said. But, in conventional formations,
particularly in deepwater markets, it
is like pushing a rope when prices are
good. Sharply lower prices could change
that complacent attitude.
Our role is not to regulate the oil
price or second-guess it but to adjust our
operations to it, said Zied Ben Hamad,
vice president of the Marketing and Technology Production Group at Schlumberger. It is a competitive business. There are
always losers and winners.
Lower prices, which he sees lingering for months or perhaps years, highlight a problem that did not just pop up
late in the year. Costs were too high when
the price of oil was pretty high, he said.
In the spring, he was hearing complaints
about rising costs and rising onshore production making deepwater development
uneconomical. Now, technology needs
to make it economical, hesaid.
A chart of the cost of projects by

Total showed that cost inflation over the
past decade roughly doubled the cost
of projects. The companys responses to
that include an effort to make R&D a
weapon in the fight against rising prices.
We reshaped our research and
development activities, said Daniel Plathey, vice president of technologies for E&P at Total. The company has
narrowed the focus on current developments, reduced its research partnerships based on the most productive
ones, and is now measuring the readiness of the technology it is investing in
to increase the odds of a relatively short
trip to market.
Still, the goal is developing technology that offers significant gains. The
downside is the risk that they will never
be used. That makes research vulnerable
during downturns.
The first inclination is let us cut
research. Research is looked on as a lux-
ury, Plathey said. He explained, Investment in research is not like a light switch.
You cannot turn it off and come back 9
months later and turn it back on.
Convincing operators that they need
to make a significant change requires
getting their feedback and involvement
with technology development. Mody said
innovation is understanding the need,
looking systematically for the best solution, and tying it all together to create
tangible rewards.
For national oil companies in Saudi
Arabia and China, research efforts are
critical because they are aimed at the
unique challenges in countries where
there are powerful social and economic motivations to maximize the amount
of oil and gas produced. Saudi Aramcos
expansive work includes partnerships
with research institutions and service
companies, such as Schlumberger and
Baker Hughesboth tenants in a Saudi
Arabian research park established to
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CONFERENCE REVIEW
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Those projects put Saudi Aramco
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Deep diagnostic methods giving

it an unprecedented view of
rocks and fluids in the ground
between wells and how they
change over time
Pore-scale physics to analyze
oilproduction on the most
basiclevel
We are seeking new technology
for advancement from the bottom up,
said Abdulaziz Al-Kaabi, manager of
Saudi Aramcos Exploration and Petroleum Engineering Centers Advanced
ResearchCenter.
China is also working on ways
to image reservoirs so it can see even
thin pockets of remaining oil and use
enhanced oil recovery methods to
increase output.
It is not an easy job for us. Most reservoirs in China are either marginal or come
into high water cut, said Liu Yuzhang,
vice president at the China National Petroleum Corporations Research Institute of
Petroleum Exploration and Development
(RIPED). The company has a research
budget exceeding USD 1 billion a year and
employs about 3,000 researchers.
Its other major research goal is economically producing oil and gas from
extremely tight reservoirs. The challenges include formations in mountainous,
highly populated places that are far more
complex than US shale gas and oil reservoirs. Liu said he visits the sites regularly
to monitor the progress in a place that he
described as beautiful but difficult.
Unconventionals (in China) are
now at the beginning stage, he said.
Radical innovation is needed.
Drawing Lessons From US Shale
As the industry is facing a challenging

time, conventional oil and gas producers
have to draw lessons from success stories
in the US shale and apply them to their
conventional oil fields because of the
similarities, according to panelists at the
session titled Whats So Unconventional
About Unconventional Oil and Gas?
Speakers said that the oil and
gas industry has to build efficiency in
operations through technology appli1/16/15 8:49 AM
JPT FEBRUARY 2015
cations and good project and supply

chainmanagement.
Matt Vanderfeen, vice president of
petroleum consulting at Weatherford, said
the industry has failed to do things differently during the downturn, where he
urged the industry to draw lessons from
the US shale market. The surge of production in the US from unconventional
resources has demonstrated that alternatives to conventional plays do exist and it is
time to apply the lessons learned from the
North America shale market not only to
other shale basins around the world, but
also to more conventional wells, he said.
While there are many differences
between conventional and unconventional oil and gas in terms of geology, tectonics, and many other aspects, there are several similarities between the two. When
it comes to well construction, production,
and operations, the challenges are the
same, he said. We have to understand
the stress regime, how to minimize no
productive time to mitigate risk, and how
to effectively drill hole section to eliminate
or reduce the incidents. All these things
are part of the normal process of unconventional wells and conventional wells as
well that we need to tackle, he said.
Vanderfeen called on the industry to
apply shale exploitation learnings to conventional fields to drive efficiency and
gain a better understanding the subsurface. Also, lower drilling and completion
costs through process improvement and
hazard avoidance, as well as through the
application of best practices for services
and logistics management, he said.
Bernard Montaron, technical director for Asia at Schlumberger, said half
of the unconventional wells drilled in
the US are uneconomic. Almost 50%
of the wells drilled between 2010 and
2013 are uneconomic either because they
were drilled in wrong place, or landed
in wrong zone or poorly completed, he
said. (Approximately) 40% of perforations in the US shale dont produce.
Montaron said that while geology is
important, decisions also matter because
companies need to get the subsurface
team ahead of operations through technology and training. Be effective by mak-
JPT FEBRUARY 2015
ing data-driven decisions, maximizing the

production outcome from every dollar
spent, he said. Apply disciplined, integrated process to appraisal, maximizing
risk, and accelerating firstproduction.
Overall, every play requires different technical solutions. Simply cutting
costs to improve economics has a limit,

and every operator knows how to do
that, he said. True differentiation is in
maximizing well productivity through
optimum use of technology, and that can
have a much greater and long-lasting
impact on economics, he added. JPT
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MULTIPHASE FLOW
The New Pathways of Multiphase

Flow Modeling
Trent Jacobs, JPT Technology Writer
In the realm of enabling technologies,

multiphase flow modeling has proven to
be one of the most important to the oil
and gas industry. Without it, nearly all
subsea wells would be too costly or dangerous to develop. While working to finetune its offshore capabilities, developers
are also busy expanding the technologys
application areas to include shale field
development, hydrate remediation, and
heavy oil extraction.
In the 1960s, when the industry
began studying how to model multiphase flow, which is the science of how
liquid and gas interact inside wellbores
and pipelines, little was known about the
complex physics involved. Back then, an
engineers ability to predict flow behavior was strictly limited to what could be
observed at the wellhead.
Over the years, the industry invented devices that could accurately calculate
flow rates, velocities, and volume fractions, along with downhole temperatures
and pressures. Armed with these tools,
engineers and scientists had the measurements they needed to marry computational science and fluid dynamics.
More than anything else, this advancement is what has allowed offshore operators to extend their reach beyond the
shallow-water fields and into those thousands of feet deep.

What we have done is to make it
possible for the industry to live with
the complex multiphase flow problems
that face them on a daily basis, said
James Brill, a multiphase flow expert who
recently retired as a research professor
of petroleum engineering at the University of Tulsa. When the industry first
moved offshore, they were afraid to go
with multiphase flow pipelines because
they did not know what was happening
inside of them, or what kind of facilities
they would have to have at the outlet end
in order to handle the fluctuating rivals of
gas and liquid.
In lieu of a complete understanding of multiphase flow, Mack Shippen, a
product champion for one of Schlumbergers top multiphase modeling programs,
said early offshore explorers were forced
to make conservative design decisions
when building a productionplatform.
That meant using larger than needed processing equipment and pipelines
to compensate for what they did not
know about the behavior of the multiphase flow. So yes, you had a safe
design but you did not have one that in
todays world would be economic, he
The separation of the oil and water phases is shown in the tail of a
hydrodynamic slug. The modeling fluid and gas behavior in wellbores and
pipelines is one of the chief technologies that has expanded the industrys
capability to produce oil and gas. Photo courtesy of Schlumberger.
62
said, explaining that, if it is overdesigned, then essentially money has been

wasted on equipment that is more than
what is necessary. If an operator can
reduce the diameter of a subsea pipeline
by just 1 in. or 2 in., the difference can
be on the scale of millions of dollars in
capital investment, he said.
On the other hand, Shippen, who is
also involved in the scientific research of
multiphase flow with universities in the
United States and the United Kingdom,
said there have been offshore projects
where companies selected separation
equipment, pumps, and compressors
that were undersized, which prevented
them from realizing the fields potential
production volume and value.
Modeling the Shale Revolution
One of the new directions for multiphase

flow modeling appears to be into the prolific shale fields of Texas, North Dakota,
and beyond. With this technology, producers could better manage their shale
fields that are developed at a much faster
pace than conventional reservoirs. In the
US, tens of thousands of new shale wells
have been brought on line each of the
past few years.
A downside of the shale operators
continuous efforts to reduce the time it
takes to drill and complete the wells, is
that it has in many cases outpaced their
transportation networks ability to move
the product. Oftentimes, when a well
comes on stream, the pressure from it
and neighboring wells can be too much
for the pipeline network to handle.
If you are bringing on newer, stronger wells, then you may have to choke
those back to allow the older wells to
JPT FEBRUARY 2015
Using a steady-state multiphase flow modeling program such as Pipesim,

operators can build virtual pipelines and facilities on a computerized map
that takes into account elevation data that might affect the flow of oil or gas.
Image courtesy of Schlumberger.
produce, which can prevent the fields

overall production from increasing, Shippen said.
With Schlumbergers steady-state
multiphase flow simulator, Pipesim,
Shippen said operators are able to identify the pipeline bottlenecks on a computer
screen and then relieve them by using a
precise calculation that shows how much
production needs to be choked back from
new wells. This allows the operator to
ensure the optimization of production
throughout the production network.
Steady-state models produce a snapshot in time of a proposed or operating production system based on different design scenarios. The technology
enables companies to plan for the life of a
field before they invest much capital and
then manage it once it is online.
When operators are looking at
designing production systems, and this
includes the well itself and essentially
the entire flow path from the reservoir,
they need to be designed to ensure the
production system is able to deliver what
the reservoir is capable of producing,
explained Shippen.
JPT FEBRUARY 2015
In many shale fields, operators control only the wells and not the transportation network, which is often why
pipeline capacity increases at a slow-
er rate than production growth. So

Shippen suggested that steady-state
modeling could be used between the
operator and a midstream company to accurately predict the future line
needs of the field before the bottlenecks form.
Many unconventional shale oil
wells must go on pump a year or so after
first production and steady-state modeling can be used for these events as well.
Schlumberger has developed Pipesim to
allow producers to compare the wellbore hydraulics of different artificial lift
systems and determine the one likely to
offer the best performance for a particular well, which may sometimes include
multiple options.
We are seeing cases where different lift systems are used at different points in the life of a well, Shippen said. For example, you may use
an electrical submersible pump (ESP)
that can be operated with a variable
speed drive for a certain range of production, and when the production
declines to the lower end of that range,
oftentimes that ESP is replaced with a
rod pump.
The Mother of Flow Assurance

The non-Newtonian phenomena involved in multiphase flow can render many
people in the industry a bit glassy-eyed. And even for petroleum engineers,
well-versed in advanced mathematics, multiphase flow modeling can be a
bit of a mystery. Much of it is beyond the scope of what you can teach in an
undergraduate class in petroleum engineering. It is too complicated, said James
Brill, a recently retired research professor from the University of Tulsa.
Nevertheless, as younger engineers are tasked with managing complex oil
and gas fields reaching deeper into the cold oceans and involving the tying
together of multiple wellstreams into a single pipeline, he believes it is more
important than ever that they have a greater understanding of the theories and
technologies in use today.
Brill and a former graduate student-turned-professor at the University
of Kuwait are trying to simplify the topic for the next crop of undergraduate
engineering students with a new textbook on multiphase flow and flow
assurance in oil and gas production. The book is being published by SPE
and will debut at the Annual Technical Conference and Exhibition in Houston
inSeptember.
Borrowing a phrase from a colleague at Chevron, Brill said he wants
production engineers to realize that multiphase flow is the mother science of
flow assurance. You really cannot address the flow assurance issue unless you
have a pretty good knowledge of how multiphase flow works in pipes.
63
MULTIPHASE FLOW
Plenty of Room for

Improvement
The University of Tulsas Fluid Flow Project was founded by James Brill in 1973
and is regarded as one of the leading facilities for the study of multiphase flow
in pipelines. Photo courtesy of James Brill.
One area for general improvement with

the modeling and simulation of large
unconventional developments involves
the behavior of fluids entering the wellstream. Brill said that many current
models he has worked with are not that
good when it comes to predicting production in unconventional wells. Part
of the problem is that for most of the
50-year history of multiphase flow modeling technology, when it comes to wellbores, developers have focused largely
on vertical and directional holes.
While fluid behavior in a conventional vertical well has been understood
and studied for some time, unconventional wells and their long lateral sections present different conditions that
have not been scrutinized for nearly as
long. As liquid and gas enter a lateral section, which are a mile or more in
length in many cases, the temperature
PipeFractionalFlow is among the newest multiphase flow models to be developed for the oil and gas industry. It is
targeting a wide array of applications including high-pressure/high-temperature production and horizontal shale wells.
Image courtesy of Anand Nagoo.
64
JPT FEBRUARY 2015
can remain about the same while the

flow rates increase with each perforated section from the toe of the well to
the heel.
Once the liquids and gases reach
the vertical section, Brill explained,
they begin to behave as they would in a
conventional well, where temperatures
and pressures begin to drop as fluids
make their way to the surface. Tying
this series of events together is what
researchers still need time to perfect.
We know what has to be done, but you
have to have some experimental data to
know that the models are working properly, Brill said, adding that, We are not
there yet.
On the other side of the spectrum is
heavy oil. The issue with modeling the
production of this type of crude is that
the process is so different from conventional light oil production. Heavy oil
wells involve smaller volumetric flow
rates, higher pressure drops, and different flow patterns because of the high
viscosity, and a significantly more difficult separation process.
You use the models developed
for lighter oils and try to get them to
work on heavy oils and it does not take
long before you realize that there are
some significant problems involved,
Brill said. The flow patterns look different, there is less gas trapped in
liquid slugs, and the fluids are what
we quite often call non-Newtonian
in behavior.
The upside for developers to invest
their time and money in heavy oil modeling is the large amount of reserves
found all over the world. When reliable modeling technology is developed for heavy oil, Brill said it would
be a very welcomed development for
itsproducers.
New Kid on the Modeling Block

Before he founded his startup multiphase
flow modeling company, Pipe Fractional
Flow, Anand Nagoo teamed up with his
professors at the University of Texas
at Austin to build from the ground up
an entirely new multiphase flow model.
JPT FEBRUARY 2015
The program, which shares the name of

the company PipeFractionalFlow, began
as a research project more than 7 years
ago when Nagoo was an undergraduate student studying simple-to-compute
analytical multiphase flow principles
that could connect and unify past and
current observations. The program is in
the final stages of being commercialized
and will be available later this year for
use bycompanies.
His quest to develop a new multiphase flow theory began with the analytical fractional flow theory used in reservoir modeling, based largely on basic
laws of physics. Applying this highly tested theory to a pipe made perfect sense to
Nagoo. The media does not matter, what
matters is the conservation laws that you
are imposing on the media, he said.
The conservation of mass, momentum,
and energy.
Nagoo then set out on a research
mission to study the multiphase flow
theories produced by various industries including mining, chemical, nuclear power, geothermal, aerospace, and
of course, petroleum production. After
forming a theory, Nagoo said he validated it against published control experiments from these industries. The outcome of the effort is the worlds largest
searchable database of published data
relating to multiphase flow modeling,
which he named Anna.
Unlike previous work in multiphase
flow modeling, Nagoo said his development efforts focused on how to simplify and connect the forces and concepts
involved with flow vs. breaking each
apart, which complicates the existing
models. What we were doing differently was we were looking not at the individual specific problems, such as bubble flow or stratified flow, he said. We
were looking at the interrelationships
between phenomena, the connectivity
between differentthings.
The resulting body of work, he said,
represents the first unified analytical and
mathematical theory of multiphase flow.
Called pipe fractional flow theory, Nagoo
said it has been tested and validated
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Thought
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your interests.
MULTIPHASE FLOW
Olga: A Subsea Evolution

Created by the Institute for Energy
Technology in Norway in 1979, Olga was
the oil and gas industrys first transient
multiphase flow model. A source of national
pride, the program has been declared one of
the countrys most important innovations in
recent decades. Transient models simulate
what may happen to a production system
over any given length of time, be it minutes,
days, or years. This allows operators to plan
for events, such as shutdowns and restarts,
for nearly the whole life of an offshore
facility. Olga is also used in engineering
design, operator training, and real-time
productionmonitoring.
Dag Biberg, a Schlumberger advisor
who works on the Olga modeling program,
Schlumbergers Olga multiphase flow model was partly developed
estimated the model has been used on
based on experiments carried out at the the Multiphase Flow
thousands of pipelines and offshore wells.
Laboratory at Tiller, Norway that features a main flow line loop and
60m high riser tower. Image courtesy of SINTEF (The Foundation for
Olga is credited as a key enabler for the
Scientific and Industrial Research).
economic development of many fields,
including the Shell-operated Ormen Lange
Schlumberger has also launched an initiative to meld
subsea gas field, where the wellstream is transported over
its modeling technologies into a single stream, whereby
uneven and steeply inclined terrain by two pipelines to an
engineers can look at how fluids move from the reservoir
onshore processing facility inNorway.
all the way through the end of the production system to
Biberg said the development of Olga, acquired by
identify a host of potential problems as early as possible.
Schlumberger in 2012, has come through many small steps
Every once in a while, developers will find discrepancies
spanning decades of research and development. Only
between what Olga predicts and the field and lab data. To
occasionally do we have real step changes, he said.
fix these problems, they launched the Olga Verification and
One example, he said, occurred more than 20 years ago
Improvement Project (OVIP), which Schlumberger said often
when the technology advanced from modeling two phases
(oil and water combined, plus gas) to being able to model all leads to improvements in the models reliability. Several
major oil companies have partnered to form OVIP and many
three phases of the production stream. Another crucial leap
of the investigations are decided by a vote between those
forward for offshore operators, which happened about 20
member companies.
years ago and continues to be developed, was slug tracking.
Currently, the joint venture group is focusing on
This allows operators to simulate what would happen to
gas condensate flows and liquid accumulation points
their production systems as the slugs of gas and liquid
and Schlumberger said the work has already yielded
move through their system.
improvements in Olga.
Modeling technology for managing liquid slugs in gas
Among the improvements accomplished through
condensate pipelines is especially critical. When these liquid
OVIP are
buildups occur and move through a pipeline, operators
Gas/condensate pipelines (19981999 and
rely on large tanks known as slug catchers located at the
20072008)
receiving end of the pipeline. By using a transient model
Heavy oil slug flow (1998 and 20092012)
such as Olga, operators can simulate these liquid slugs or
Slug lengths and frequencies (19992003)
surges over a given period of time during pigging of the
Pressure drop in slug flow (19992003)
pipeline or increases in production to prevent a separator to
Oil and water holdups in three-phase slug flow (2000)
be operated without flooding the slug catcher.
Downward inclined flow (20012002)
Our most recent step change is the introduction of
Vertical annular flow (20022003)
the high-definition stratified flow model, said Biberg. He
Riser slugs (20022006)
explained that this latest advancement allows engineers
Slug flow correlations (20072009)
and operators to use the improved predictions associated
Oil and water accumulation in gravity-dominated flows
with a 3D flow description without suffering a serious
(20102012)
penalty in execution time.
66
JPT FEBRUARY 2015
using recent data and data dating back

to the 1940s.
A special application area for PipeFractionalFlow involves well planning for
horizontal wells. Nagoo believes his program will be the first of its kind to enable
companies to make informed decisions
on wellbore trajectory for shale drilling.
He said one of the biggest problems with
other multiphase flow models is their
inability to tell a driller or a petroleum
engineer what degree of inclination or
declination should be for the horizontal section of an unconventional well,
otherwise known as drilling toe-up or
toe-down.
What is missing in the most popularly used models, he said, is the
accountability for the role that frictional pressure and volume fraction play
in a horizontal well section that trends
downward. Nagoo said he compared his
model with others and then used empirical evidence from the field, industry
reports, and published lab data to confirm his finding that his model worked
better in this regard.
It just takes a very slight downward decline for the gas to be held up
and a very sharp change in your volume
fraction gradient, and therefore, your
pressure gradient, he said. A slightly
inclined phenomena in multiphase flow
directly impacts the production capability of horizontal wells in the real world via
the sole effect of inclination.
The modeling program has found
that under certain conditions it only
takes 0.2 to 0.5 of sloping in a horizontal well to alter the holdup behavior of
fluids and create a choke point, Nagoo
said. He noted that the key to solving this
problem will be getting oil and gas companies to open up the lines of communication between the various disciplines of
unconventional field development and
integrate more modeling into well design
to improve well performance.
How you decide to drill your wells
has a profound effect on the rest of the
events that are to follow, namely, completions and production, and then artificial lift down the road, he said. That
JPT FEBRUARY 2015
is not how we as industry work now; we

are compartmentalized and partitioned.
Hydrates are Hard

At the Colorado School of Mines,
researchers are in the early stages of
developing a new multiphase flow mod-
eling specifically designed to understand the effect of the formation of gas

hydrates on multiphase flow in production lines. Hydrates are essentially bits of frozen water that contain
light gases such as methane, ethane,
propane, or carbon dioxide. They not
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MULTIPHASE FLOW
only constrain flow; if they build up

too much, they put a pipeline at risk
of rupturing.
[Hydrate formation] is the main
issue that all offshore companies deal
with on a daily basis, but as they go
into even harsher environments, it will
of course be more prominent, said Amadeu Sum, an associate professor and the
leader of this research project. If you are
going to live with hydrates, you need to
know how they are forming, where they
are, how much you have, and how they
are affecting the flow, he said.
To live with the problem thus far
the industry has developed numerous
technologies to remediate hydrate formation inside flowlines and pipelines,
such as pipe insulation and expensive
hydrate-inhibiting chemicals. But Sum
said that there has been less emphasis placed on developing models to figure out the nature of hydrate formation,
which happens in nearly all subsea flowlines and places onshore such as Alaska,
where much of the production comes
from north of the Arctic Circle. The simple reason hydrate modeling has not
been a major focus for multiphase modeling research because it is very complex
and hard to do.
Sum compared hydrate modeling
with modeling sand in pipes, which has
been successfully done, to illustrate why
it is so difficult. Hydrates are quite different from sand, especially in terms of
the density and in that hydrates aggregate, whereas sand will just either remain
dispersed in the fluid or depending on
the flow rate, settle, he said. In other
words, where sand can flow through a

production system or form small deposits, hydrates can form and accumulate
at a much higher and, therefore, dangerous rate.
To take the research further, Sum
said he is working to establish a firstof-its-kind experimental laboratory that
can test his teams multiphase flow and
hydrate models at the same time. He said
he knows of no lab in the world that currently can do both in the same experiment. The current research is partially funded by a hydrate consortium at
the Colorado School of Mines; Sum said
more funding will be needed to continue the progress. Details of the research
project will be presented at the Offshore
Technology Conference in Houston
inMay.JPT
Faculty Position in Petroleum Engineering

School of Chemical Engineering Oklahoma State University
The Petroleum Engineering Program seeks nominations and applications for a tenure-track Assistant/Associate/Full Professor. Candidates shall
have an earned doctorate in Petroleum Engineering or closely related area and display a strong interest in undergraduate and graduate education.
The successful applicant is expected to build a sustainable research program in an area that augments the OSU research portfolio and has strong
potential to attract extramural funding.Industrial experience is considered an asset.The primary areas of interest are reservoir engineering, well
completions including fracturing and rock mechanics, and midstream operations, but strong candidates in other petroleum areas will be considered.
Applicants seeking a position of Associate or Full Professor must have a record of achievement that merits appointment at that level.
The Petroleum Engineering Program at OSU has grown quickly based on strong support from industry and the central administration. Four
petroleum engineering positions have been flled in the past three years. Three hold endowed chairs. There are four other endowed energy
chairs held by chemical engineering faculty. At present, the combined petroleum and chemical engineering faculty totals 14. The strategic plan
for the college calls for an increase to 20 over the next 2-3 years.
Based on industry input, we offer an undergraduate petroleum engineering minor to enhance the preparation of traditional engineering disciplines
to work in the oil & gas industry. The petroleum minor requires traditional core petroleum engineering and petroleum geology courses. There are
currently 100 students in the program with substantial growth expected. We have established an interdisciplinary petroleum engineering research
program with research at the M.S. and Ph.D. level being performed. The process of establishing a M.S. degree in Petroleum Engineering is
underway with subsequent plans to create a Ph.D. degree in Petroleum Engineering.
Oklahoma State University is geographically well positioned in one of the most active exploration areas in the country. The college has strong
support from local and national oil and gas companies. There are many opportunities for collaboration and funding from our industrial partners.
Formal applications must be submitted online at https://jobs.okstate.edu. Search for Chemical Engineering Faculty Requisition/Listing 11216.
Screening of applicants will begin as applications arrive and continue until the position is flled, contingent on available funding.
To accelerate the screening process, applicants are encouraged to email the following materials directly to the Search Committee Chair
(i) a one-page cover letter, (ii) a curriculum vita, (iii) a statement of teaching interests and goals, (iv) a statement of research interests and goals,
and (v) contact information of fve references. Questions may be addressed to:
Dr. Peter Clark, Chair, Petroleum Faculty Search Committee,
Phone: (405) 744-5280, E-Mail: peter.clark@okstate.edu
Oklahoma State University is an AA/EEO/E-verify employer committed to diversity. All qualifed applicants will receive consideration for employment
and will not be discriminated against based on race, color, religion, sex, national origin, disability or protected veteran status. OSU-Stillwater is a
tobacco-free campus.
68
JPT FEBRUARY 2015
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PUMPS & STIMULATION EQUIPMENT RIGS TANKS & TRAILERS SURFACE PRODUCTION EQUIPMENT & LPG TANKS
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INTELLIGENT FIELDS
Saudi Aramco Takes a Smart Approach

Abdelghani Henni, Middle East Editor
Saudi Aramcos upstream strategy aims

to implement the intelligent field concept in all of its upstream operations by
20162017 so it can better understand
reservoirs and improve efficiency.
Going by the names of intelligent oil
field, smart oil field, and digital oil field,
the concept is an array of interactive
and complementary technologies that
enable companies to gather and analyze data throughout the job site. Intelligent wells provide constant data through
fiber-optic sensors in the drilling apparatus about the well and its environment,
which enables operators to respond to
changing circumstances in real time. The
intelligent field is where operators, partners, and service companies seek to take
advantage of improved data and knowledge management, enhanced analytical
real-time systems, and more efficient
business models.
In the Middle East, Saudi Aramco currently has 19 intelligent fields in
operation, which enables the company to
monitor reservoirs and intervene immediately in case of any damage because of
the real-time monitoring system.
Saudi Aramcos first use of intelligent fields started with its Haradh III
Increment project, which included multilateral wells, all equipped with smart
completions and real-time data. Haradh
I was developed exclusively with vertical wells, whereas horizontal completions provided the primary configuration for producers/injectors in Haradh
II. Haradh III was developed by relying mainly on smart maximum reservoir contact (MRC) completions within an intelligent field framework.
Total Haradh production capacity is
900,000 B/D, with equal contributions
70
from the three respective subsegments

of I, II, and III.
The Haradh III development at the
southern tip of the Ghawar oil field, completed in 2006, has been portrayed by
Saudi Aramco as the turning point in the
battle between geological adversity and
engineering prowess. The poorest reservoir rock in Ghawar has succumbed
to the latest in well and drilling technology. Aided by 3D seismic images showing
fracture locations, wellsites were optimized and drills were guided by remote
control from Dhahran.
MRCs were fitted with monitoring
electronics and valves on individual laterals so they could be throttled back as
needed to minimize water encroachment.
Testing was done, adjustments were
made as needed, and everything rolled
out ahead of schedule. Goals for individual well productivity of 10,000B/D were
met, and projections indicated a smooth
sailing for 10 years or more.
Haradh III became the first Saudi
Aramco development project to be developed exclusively with MRC wells with
downhole inflow control valves for flow
control. Average well production rates
were targeted at 10,000 B/D, compared with 3,000 B/D and 6,000 B/D
for Haradh I and II, respectively. Smart
completions were necessary to ensure
production sustainability in the face of
premature water encroachment through
fault/fracture systems. Saudi Aramco
said that the well requirements and relative unit costs would have been considerably higher had vertical or conventional single-horizontal wells been selected
instead of MRC wells for Haradh III.
After the Haradh field development, all incremental developments
became smart fields including Abqiq and

Khurais, which is the largest increment
in the world with production capacity of
1.2 million B/D.
For example, at the Manifa field, the
company receives the data of the pressure before it put the wells in production.
Manifa contains the largest number
of extended-reach wells (ERW) as twothirds of the wells in the field are ERWs
by industry standards, some with a total
depth of 37,000 ft, departing beyond
26,000 ft from surface locations, said
Shadi Hanbzazah, supervisor at the
Manifa production engineering unit.
After seeing the benefits from
Haradh, company management decided
to set up an intelligent field center for
real-time operations, which was followed
by the establishment of the drilling operations center. Then, the company started a
geosteering center. The role of geosteering as an enabling technology became
more pronounced at Haradh III because
accurate placement of multilaterals within the Arab-D reservoir (and integrity of
hole trajectories) was necessary to achieve
desired target rates of 10,000 B/D.
Greenfields and Brownfields

Saudi Aramco now plans to have all fields
using smart technology by 2017. The
development of several fields, including
the Abu Hadriya, Fadhili, and Khursaniyah fields, involve transforming mature
and remote fields into state-of-the-art
intelligent fields, equipped with proper
handling facilities for oil, water, and gas.
The three oil fields had been mothballed but were revitalized after extensive
drilling workover programs. The latest
downhole production technologies were
installed in all oil production and water
JPT FEBRUARY 2015
injection wells. Furthermore, the project

called for the construction of new oil and
gas processing and water injection facilities, all linked to their respective wells via
an elaborate fiber optic communication
network for optimum control and surveillance capabilities in real-time mode.
The production and injection strategies
were further optimized making use of
permanent downhole monitoring systems, smart well completion multiphase
flowmeters, single phase flowmeters,
pressure and temperature sensors with
specialty tailored monitoring, and simulation software.
In the Southern Reservoir Area,
which includes brownfields such as
Ghawar, Khurais, and Abqiq, the implementation of intelligent field technology
required a strategic surveillance program
different from that used in greenfields.
For example, Ghawar, the largest field,
JPT FEBRUARY 2015
has approximately 5,000 wells with

some of them already depleted. The team
working on the field had to find a strategic location to measure the health of
thereservoir.
The technologies used in these
fields allowed the company to remotely control key parameters and monitor vital equipment in real time to optimize the flow of hydrocarbons from
the fields to processing facilities. It also
minimized human interaction associated with field operations in a sour crude
producingenvironment.
The implementation of the smart
field concept in the Khurais increment
project, the worlds largest oil increment
development, has proven to be a necessity rather than an upgrade, as it enabled
a higher level of control over the reservoir and precision in achieving reservoir
management targets. JPT
For Further Reading

Al-Mulhim, W.A., Al-Faddagh, H.A.,
Al-Shehab, M.A., et al. 2010. Mega I-Field
Application in the World. Paper SPE
128837 presented at the SPE Intelligent
Energy Conference and Exhibition,
Utrecht, the Netherlands, 23-25 March.
http://dx.doi.org/10.2118/128837-MS
Al-Khamis, M.N., Al-Hamzani, H.J., and
Al-Adel, M.F. 2009. Revamping Old Fields
Using I-Field Technologies. Paper SPE
123540 presented at SPE Annual Technical
Conference and Exhibition, New Orleans,
Louisiana, 4-7 October. http://dx.doi.
org/10.2118/123540-MS
71
MANAGEMENT
Industry Needs Re-Education

in Uncertainty Assessment
Duane McVay, Professor, Texas A&M University
It is clear the oil and gas industry recognizes the large uncertainty in which
it operates. A search in the OnePetro
technical paper database using the keywords uncertainty or risk returns
more than 53,000 conference and journal papers. Yet, it is also clear that the
industry does not know how to reliably
assess uncertainty and that this inability
negatively affects industry performance.
Capen (1976) described the difficulty
of assessing uncertainty. He pointed to
massive capital overruns and low industry returns due to an almost universal
tendency to underestimate uncertainty.
Brashear et al. (2001) and Rose (2004)
later documented the dismal performance of the industry in the last 10 to 20
years of the 20th century due to chronic
bias and evaluation methods that do not
account for the full uncertainty.
Although industry profitability
may have improved in the past decade
because of high oil prices, Neeraj Nandurdikar in an October 2014 JPT article,
Wanted: A New Type of Business Leader
to Fix E&P Asset Developments, showed

that the oil and gas industry continues
to perform significantly below estimations and expectations. He cited three
ways that assets erode value, all of which
relate to unreliable assessments of uncertainty: (1) production and reserves estimates are overestimated, (2) capital costs
are underestimated, and (3) development
times are underestimated. And these do
not include price estimations; the surprising oil price slide at the time of this
writing has the potential to move industry performance from below expectations to below profitability.
While project evaluations can be
affected by many different types of biases, these can be reduced fundamentally
to two primary biases: overconfidence
and directional bias.
Overconfidence is underestimation
of uncertainty; i.e., our estimated distributions of uncertain quantities, such
as reserves, are too narrow. They are
too narrow because we do not consider all the possible outcomes. There is
considerable evidence in the literature,

both inside and outside the petroleum
industry, of our general human tendency
foroverconfidence.
Directional bias results when the
subset of possible outcomes considered
is shifted in either the optimistic or pessimistic direction. There is also evidence
that we are usually optimistic in our overconfidence; i.e., we fail to consider some
possible negative outcomes, or we give
greater weight to possible positive outcomes than possible negative outcomes.
As a result of the two primary biases, we
make decisions with incorrect estimated
distributions rather than true distributions (Fig. 1).
Unreliable estimation of uncertainty has serious consequences. Portfolio
modeling by McVay and Dossary (2014)
indicated that moderate, typical levels
of overconfidence and optimism can
result in average portfolio disappointment (estimated net present value (NPV)
minus actual NPV) of 30% to 35% of estimated NPV. Greater amounts of overcon-
Observed Frequency
1.0
0.8
0.6
0.4
0.2
0
0.2
0.4
0.8
0.6
1.0
Assessed Probability
Fig. 1An incorrect estimated distribution due to

overconfidence and optimism.
72
Fig. 2A calibration chart for a set of forecasts that are

both overconfident and optimistic (red).
JPT FEBRUARY 2015
fidence, optimism, and disappointment

have been experienced in the industry,
e.g., throughout the 1990s. Nandurdikar (2014) indicated that over the past
15 years, the average exploration and
production (E&P) development delivered only 60% of the value promised
atsanction.
Lookbacks and Calibration

Key to Solution
Persistence of unreliable uncertainty
assessment over several decades indicates that we need a step change in the
way we assess uncertainty. Improved
project evaluation methods can go only
so far in correcting the problem. This is
because a primary contributor to overconfidence and optimism is unknown
unknownsthose unknowns we dont
even think to include in our evaluations.
The only way to measure overconfidence
and optimism and account for unknown
unknowns is to perform lookbacks and
calibration, i.e., keep track of probabilistic forecasts and compare actual results
with the forecasts over time.
Reliability of probabilistic forecasts
can be represented in a calibration chart
in which the frequency of outcomes is
plotted against the assessed probability
of outcomes (Fig. 2). Reliable probabilistic forecasts that quantify the true
uncertainty will fall on the unit-slope
line; e.g., the actual value is less than the
P10 estimate 10% of the time and the
actual value is less than the P90 estimate
90% of the time (for a cumulative distribution function convention in which
the P10 is the low number and the P90
is the high number). Fig. 2 shows the
calibration for a set of forecasts that are
both overconfident (slope less than 1)
and optimistic (shifted upward). Note
that this figure applies to value-based
forecasts; optimistic cost-based forecasts
would be shifted downward.
A knowledge of overconfidence and
optimism from calibration charts can
then be used to improve future assessments. Estimated distributions of uncertain quantities can be adjusted as needed
to eliminate overconfidence and opti-
JPT FEBRUARY 2015
mism, which will widen the distributions

and shift them in the appropriate direction. Tracking of forecasts, comparing
them with actual results, and using them
to improve future forecasts should be a
continuous process over time.
Re-Education Needed
Persistence of unreliable uncertainty
assessment also indicates that we need
to change the way we educate engineers
about uncertainty, and it needs to start
no later than their undergraduate education. Most formal education is focused
on getting the right answer. Undergraduate engineering students traditionally have been taught to solve problems
deterministically, and traditionally have
been motivated, through grades, to get
the single right answer. I teach senior
design courses in which there is commonly no single correct answer, and students are often noticeably uncomfortable when I cannot tell them the single
correctanswer.
It is the same when students are
asked to quantify the uncertainty in
their knowledge about a topic. They
are uncomfortable because quantifying
uncertainty is an alien concept to them.
We are all subject to many biases and
quantifying ones uncertainty does not
come naturally, which is why humans
are poor at it. Assessing uncertainty, i.e.,
assessing how much you know about
something, is a different skill, separate
from petroleum engineering or other
knowledge areas.
Accordingly, the ability to assess
uncertainty in a particular area does not
necessarily come with increased knowledge in that area. Evidence in the literature suggests that despite their advanced
knowledge, experts can be just as poor
at assessing uncertainty as nonexperts.
Although assessing uncertainty is a different skill, it can be taught and learned.
Teaching Uncertainty
Assessment
We consider uncertainty assessment to
be a vitally important skill for students in
the Petroleum Engineering Department
at Texas A&M University. So much so that,

in addition to the 11 Accreditation Board
for Engineering and Technology student
outcomes (a-k) for which we are required
to document achievement by our bachelor of science graduates for accreditation, we added a 12th student outcome
specific to uncertaintyassessment.
We have two required undergraduate courses that have significant content related to uncertainty. The first is
Petroleum Project Evaluation, which
includes uncertainty quantification in
project evaluation and investment decision making under uncertainty. The second is Integrated Reservoir Modeling,
which includes geostatistical modeling
and quantifying uncertainty in dynamic
reservoir simulation.
We do not believe uncertainty
assessment should be isolated only in
courses focused on uncertainty quantification and decision analysis. Biases and
uncertainty pervade all aspects of petroleum engineering, so they should be
addressed throughout the curriculum.
Probabilistic assessments can often be
easily incorporated into existing assignments, projects, or exams. Assessments
can be requested for either continuous
distributions (e.g., provide P10, P50,
and P90 values on a distribution for x)
or discrete distributions (e.g., provide
probabilities for the choices in a multiple-choice question rather than selecting one answer). We include uncertainty assessment in several other courses,
including the capstone design course,
but we still have work to do in the rest of
thecurriculum.
To be truly effective, however, uncertainty has to be more than just taught; it
must be experienced by students. You
can teach students about biases and how
to do probabilistic assessments, e.g., geostatistics and Monte Carlo simulation.
However, you do not address the fundamental problems of unknown unknowns,
overconfidence, and optimism until you
force students to assess their own uncertainty and demonstrate their overconfidence to them. Because uncertainty
assessment is a separate skill indepen-
73
MANAGEMENT
dent of knowledge area, the ability to

assess uncertainty can be assessed with
general knowledge questions or forecasts
in addition to questions related to petroleum engineering.
Furthermore, just as overconfidence and optimism can be measured
and corrected only with lookbacks in
industry, students can learn to recognize
and correct their biases only by obtaining feedback on the calibration of their
probabilistic estimations and forecasts.
I regularly request a variety of engineering-related and general knowledge probabilistic assessments, including weekly football game score predictions, and
provide feedback on students calibration throughout the semester. The vast
majority of students exhibit typical high
amounts of overconfidence early in the
semester and many learn to widen their
ranges with the feedback they receive
over the semester.
It is my observation that student
interest and improvement in uncertainty
assessment increases significantly when
there is something riding on it. The primary motivator for students is grades,
which can affect job offers and future
income. It is possible to grade probabilistic multiple-choice questions with
scoring rules that measure both knowledge of the subject area and the students
ability to assess his or her uncertainty in
the subject area. Overconfidence exhibited by assigning too-high probabilities
to incorrect answers can result in significant grade penalties. When grades are
affected, most (but not all) students learn
to be less overconfident over time.
Provide Continuing Education

Improvements in undergraduate and
graduate education in uncertainty quantification are necessary, but insufficient,
to correct the industrys persistent problems with overconfidence and optimism.
Education in uncertainty quantification
needs to continue beyond formal education for several reasons.
Firstly, many, if not most, currently practicing professionals do not know
how to reliably quantify uncertainty. Sec-
74
ondly, reliable quantification of uncertainty is not easy, as evidenced by several

decades of industry underperformance.
If it was easy, more would have mastered it. Based on observations of students, treatment in higher education
will be a good start but will not yield
mastery for life. Thirdly, the fields we
develop, the technology we use, and the
world in which we operate change with
time. Thus, the uncertainties we will face
change with time as well. Learning to
quantify uncertainty reliably is a lifelong
learning process.
Continuing education on uncertainty quantification can be accomplished
through participation in conferences,
workshops, and short courses. A coverage of topics such as debiasing, probabilistic modeling, and decision analysis
can be quite helpful. However, the key to
reliable uncertainty assessment is lookbacks and calibration, so this should be
a primary emphasis in continuing education. The full uncertainty will never
be assessed, regardless of the sophistication of the probabilistic methodology,
if unknown unknowns are not included in the assessments. Simpler probabilistic methods combined with reliable
assessments of uncertainty derived from
lookbacks and calibration will be superior to sophisticated probabilistic methods combined with overconfident and
optimistic uncertainty assessments that
apparently are the norm today.
While coverage of these concepts
in formal continuing education efforts
will be valuable, the most important
education may be self-education that
comes through simply keeping track of
ones predictions and comparing them
with actual results over time. This is
not a new concept; it was suggested by
Capen(1976).
Call for Change in Incentives

Disappointment and industry underperformance have persisted for decades
because lookbacks and calibration, and
the learning and subsequent forecast
improvements that derive from these
calibrations, are rarely practiced. There
are a few pockets of practice, but they are

apparently the exception. Of the thousands of SPE publications that mention
uncertainty or risk, very few mention
lookbacks and calibration. Why is this?
There is a host of reasons.
Firstly, many companies still use
deterministic methods. Although these
methods do not strictly preclude the
use of lookbacks and calibration, their
potential value is reduced significantly if
forecasts are not probabilistic. Secondly,
until recently, there has been little quantitative evidence in the literature to show
that the cost of chronic overconfidence
and optimism is high, which has likely
contributed to the lack of appreciation
for the importance of lookbacks and calibration. Thirdly, many of the forecasts
made in the oil and gas industry are long
term; it can take years and sometimes
decades to obtain the actual values needed to compare with the forecasts in order
to check calibration. Finally, there is a
lack of tools for tracking and calibrating
forecasts over time. These are significant
challenges, but they are surmountable.
The biggest reason, however, has to
do with incentives. In most companies,
employees are not incentivized to generate estimates and forecasts that are
well calibrated probabilistically. They
are incentivized to do the opposite. In
order to win bids, compete for budget,
get projects approved, avoid disappointing superiors by telling them the project
will take longer and cost morei.e., in
order to do things that get attention and
rewardpeople are naturally encouraged and incentivized to be overconfident and optimistic.
To compound the problem, there
is virtually no accountability for project failures and consistent underperformance, as pointed out by Nandurdikar
(2014). Often, the analysts and decision makers have moved on by the time
the problems are realized. Even when
they are still around, there is often little consequence. Because lookbacks and
calibration are seldom performed, the
problems are attributed to unforeseen
circumstances rather than overconfi-
JPT FEBRUARY 2015
MANAGEMENT
dent and optimistic forecasts. Incentives

in the wrong direction plus no accountability for unreliable forecasts make a
recipe for chronic overconfidence, optimism, disappointment, and underperformance. No wonder these problems
have persisted for decades.
If you want to change human behavior, you have to change their incentives. If
you want employees to generate well-calibrated probabilistic forecasts in order to
maximize profitability, then you have to
incentivize employees to generate wellcalibrated probabilistic forecasts. This
means you must have a systematic process for tracking forecasts and subsequent actual values and for generating
calibration reports. This should be done
at all levels: individual, group, division,
and corporate. Then there needs to be
appropriate accountability. You cannot
judge the reliability of a single probabilistic forecast because of the uncertainty
in outcomes, which can include both success and failure. You can judge the reliability of only a group of probabilistic
forecasts. Thus, the accountability has to
be provided at some frequency less than
on a per-project basis.
If accountability is provided on a
single-project basis, analysts may be
overly conservative to avoid failure,
which can result in missed opportunities.
Tracking should include as many probabilistic forecasts as possible for statistical significance. These should obviously
include the more significant forecasts,
e.g., reserves, time to first production,
initial rate, development costs, and oil
prices. They can also include business
forecasts, e.g., quarterly earnings, and
less significant forecasts, e.g., time estimate to produce a report for the boss,
both to generate sufficient numbers for
statistical significance and to instill a
corporate culture of reliably quantifying
uncertainty in virtually everything.
Just as students are more motivated to reliably quantify uncertainty when
their grades are affected, professionals
76
will become more motivated to produce

reliable probabilistic forecasts if something is riding on the quality of their
probabilistic calibration. If you want to
really change incentives and behavior,
include probabilistic calibration in annual performance reviews at all levels, and
make it a factor in deciding compensation, bonuses, promotions, and the like.
Nothing short of this is likely to have
much of an impact.
In addition to providing accountability, a system for tracking and calibrating forecasts can be used to educate both analysts and decision makers
and improve probabilistic forecast quality and business performance over time.
Some engineers complain that decision
makers prefer to make decisions based
on gut or instinct because they are either
overconfident or do not understand
probabilistic analyses. However, it may
also be possible that decision makers do
not trust analysts probabilistic forecasts
because they suspect, from experience,
that the forecasts are unreliable.
Calibration feedback over time
can help analysts improve their forecast quality by either internally adjusting their methodology or by externally modifying forecasts made using the
same methodology. If it can be shown
to decision makers that analysts forecasts are probabilistically reliable, decision makers can learn to trust and use
analysts forecasts in decision making. If
decision makers have evidence that ana-
lysts forecasts are not well calibrated,

they can use calibration results to externally adjust the forecasts themselves to
improve forecastreliability.
Decision making and profitability
will be optimal in the long run only when
probabilistic forecasts are well calibrated: P10s are true P10s, and P90s are true
P90s, and so forth. Changing corporate
culture to produce well-calibrated probabilistic forecasts will require educating
the current workforce and the next generation of engineers on the importance
of lookbacks and calibration, as well as
changing business processes and incentive structures.
If we do not change corporate
culture and incentives regarding uncertainty assessment, overconfidence and
optimism and consequent chronic
under-performance will persist for severalmoredecades. JPT
References
Capen, E.C. 1976. The Difficulty of Assessing
Uncertainty. J. Pet Technol 28 (8): 843850.
Rose, P.R. 2004. Delivering on Our E&P
Promises. Leading Edge 23 (2): 165168.
Brashear, J.P., Becker, A.B., and Faulder, D.D.
2001. Where Have All the Profits Gone?
J. Pet Technol 53 (6): 2023, 7073.
Nandurdikar, N. 2014. Wanted: A New Type of
Business Leader to Fix E&P Asset Developments. J. Pet Technol 66 (10): 1519.
McVay, D.A. and Dossary, M. 2014. The Value
of Assessing Uncertainty. SPE Econ & Mgmt
6 (2): 100110.
Duane A. McVay is the Rob L. Adams 40 Professor in the

Department of Petroleum Engineering at Texas A&M University.
His primary research focus is on uncertainty quantification,
particularly in production forecasting and reserves estimation in
oil and gas reservoirs. He joined Texas A&M in 1999, after
spending 16 years with S.A. Holditch & Associates, a petroleum
engineering consulting firm. McVay is a Distinguished Member
of SPE and will serve as an SPE Distinguished Lecturer in 2015-16. He received BS,
MS, and PhD degrees in petroleum engineering from Texas A&M University.
JPT FEBRUARY 2015
TECHNOLOGY
Mike Weatherl,
SPE, is a deepwater
consultant for
Apache. He holds a
degree in petroleum
engineering from
The University of
Tulsa. Weatherl started his career as a
production engineer with Chevron in
New Orleans. Over the next 25 years,
his career with Chevron included a
variety of positions in production
and drilling. Since 2004, Weatherl
has worked primarily on deepwater
projects, first as a drilling adviser
at Chevron before moving over to
Hess Corporation in November 2007.
He is a board-certified professional
engineer in Texas and a 25-year SPE
member. Weatherl has authored
several papers and has served as a
technical editor for SPE Drilling &
Completion. He is a member of the
JPTEditorialCommittee.
Recommended additional reading
at OnePetro: www.onepetro.org.
SPE 166456 Newtonian Fluid in
Cementing Operations in Deepwater
Wells: Friend or Foe? by Polina Khalilova,
Schlumberger, et al.
SPE 166166 Casing While Drilling
UsingRotary-Steerable Technology
in theStag FieldOffshore Australia
by Kyle S. Graves, Apache, et al.
OTC 24189 Taking the Proper Action to
Gas Influx During Constant-BottomholePressure Technique of Managed-Pressure
Drilling by Ali Karimi, The University of
Tulsa, et al.
SPE/IADC 170550 Novel Lubricant/
Bridging-Agent Combination Cures
Differential-Sticking Problems in
High-Pressured North Kuwait Wells
by M.S. Al-Muhailan, Kuwait Oil Company,
et al.
78
DRILLING
TECHNOLOGY
I have been a witness to the evolution of drilling technology during the past 33 years,
and being part of this industry has been a great privilege and an adventure. Nowhere
else are these new and evolving technologies more accessible or better documented
than in SPE media. In this Drilling Technology feature, a few example papers from
recent industry events have been selected to highlight new ways extreme challenges
are being addressed and solutions are being applied to deliver game-changing breakthroughs in the way wells are being delivered.
Geosteering of multilateral wellbores in mature reservoirs in Kuwait using geochemical analysis is an example of the kind of cross-discipline interaction that has
become a hallmark of successful well delivery. Drilling engineers are dedicated as a
part of the core team early in the project-planning phase. Here, Earth scientists and
engineers develop effective communication and working relationships and become
fluent in the languages of other disciplines.
As is often said, all of the easy reserves have been produced. Long gone are the
days when low-risk, low-cost wells were drilled, completed, and put on production for
a quick payout. Today, to extract value from complex reservoirs with ever-increasing
cost and risk, using innovative techniques and new ideas is the name of the game.
Seamless, multidiscipline work flows and imbedded integrated teams continue to
present significant opportunities within the industry and will for many years to come.
The application of managed-pressure drilling (MPD) and underbalanced drilling
(UBD) has evolved across the spectrum of offshore, onshore, new-field, and mature
developments in recent years. Experienced teams report with increasing frequency
that they were able to deliver wells and reserves using MPD/UBD that otherwise would
have been undrillable. Considering the narrowing pore-pressure and fracture-gradient
windows over the life of the field, with increasing depletion and reinjection, applications for these technologies are expected to continue to expand. Two related articles
are featured showing dramatic geographic and well-type diversity: MPD offshore Vietnam and high-pressure/high-temperature UBD onshore US in the Marcellus shale. Two
very different case histories share a common element: a departure from conventional
drilling fluid, well control, and overbalanced drilling. A review of recent SPE papers and
presentations at industry events indicates applications of MPD/UBD technologies are
widespread. On the other hand, looking at the fields where these strategies have not yet
been implemented, one gets the feeling that perhaps these are still early days.
Finally, evolution in drillstring design is detailed in a paper addressing recent technology advancements and practical considerations associated with extreme deepwater
drilling applications. Once again, ever-increasing well complexity, depths, pressures,
and temperatures demand new materials, new procedures, and aggressive innovation.
Mechanical integrity and reliability under extreme static and dynamic loads will continue to dictate systematic design, manufacturing, and testing to deliver well objectives.
These are but a small sample of the many excellent papers recently generated.JPT
JPT FEBRUARY 2015
Drilling of Multilateral Wells in Kuwait

Aided With Geochemical Analysis
he Burgan reservoir consists

of vertically stacked channel
sands along with a fault network
connected tothe aquifer and contains
highly viscous reservoir fluid. This
dramatically enhances the water
mobility and results in severe
premature water breakthrough,
bypassing zones of oil. This paper
describes the use of real-time
geochemical analysis to support
geosteering of a smart multilateral well
located in one of the highest-potentialflow areas of Kuwait.
Introduction
The Minagish field in Kuwait was discovered in 1959 and is located in the
southwestern part of the country. It
contains several reservoir intervals in
its stratigraphic column, varying from
Early Jurassic to Late Cretaceous. The
field is situated 12 km northwest of
the west Umm Gudair field. The field
has been penetrated by more than 180
wells, to contact not only the middle
and lower Minagish reservoirs of the
Lower Cretaceous but also other shallow reservoirs such as the Mishrif/
Rumaila carbonates and the Wara/Burgan sandstone. The Minagish field structure of the Wara and Burgan formations
is a closed elongated asymmetrical anticline oriented in a north/south direction. The top of the Burgan structure is
Oil production with

no evidence of water
at the heel of the
horizontal section
(no faults)
Oil associated with

water production
through faults connected
to the aquifer
Fig. 1Seismic coherence map along a horizontal section of a Burgan producer

is used to locate areas of faulting. The coherent beige areas in the cross
section show no faulting. All other colors (incoherent areas) show faulted
areas ranging through dark blue, yellow, orange, and red colors (less faulting
to more faulting, respectively).
located at approximately 5,500-ft true

vertical depthsubsea.
Burgan Reservoir. This reservoir is
informally divided into the upper and
lower Burgan sections. Lower Burgan
sands are more extensive and blocky
in nature, with few variations in their
properties. The lower Burgan reservoir
section lies above the oil/water contact (OWC) and is of significance from
a hydrocarbon-bearing perspective.
Upper Burgan sands are mainly in the
form of channel sands, ranging in thickness from a few feet to nearly 45 ft,
and they have extensive lateral facies
variation. The lower part of the Burgan
has active bottomwater drive, whereas
This article, written by JPT Technology Editor Chris Carpenter, contains highlights of
paper IPTC 16617, Drilling of Multilateral Wells Aided With Geochemical Analysis,
Kuwait, by Taher El Gezeery, Abdul Aziz Ismail, Khalaf Al Anezi, Monirah Al
Jeaan, Jeevan Kumar Silambuchelvan, and G.S. Padhy, Kuwait Oil, and Atul Wasnik
and Ahmed Al Shoeibi, Geolog International, prepared for the 2013 International
Petroleum Technology Conference, Beijing, 2628 March. The paper has not been
peerreviewed.
Copyright 2014 International Petroleum Technology Conference. Reproduced by
permission.
the upper part of the reservoir has an

edgewater-drive system. The reservoir
contains high-permeability sands on the
order of a few darcies associated with
active faults and has highly viscous reservoir fluid (approximately 40 cp at reservoir conditions). This heterogeneous
nature of the reservoir accelerates water
movement inside the reservoir and results in premature water breakthrough
in the existing vertical wells and in horizontal wells, in spite of maintaining the
highest standoff from the OWC.
Scope of Work. Located in the crestal part of the Minagish field, the Burgan reservoir offers limited surface locations for drilling many vertical wells
to deplete the reservoir effectively. Because of the nature of the reservoir and
its oil quality, horizontal wells or multilateral wells are viable options. The
upper part of the Burgan reservoir consists of complex laminated thin channel
sand, and interchannel silts and shale
that are associated with fault networks
pose several drilling and geosteering
challenges (Figs. 1 and 2). Also, geosteering in the upper Burgan sand, with
lateral facies changes associated with
For a limited time, the complete paper is free to SPE members at www.spe.org/jpt.
JPT FEBRUARY 2015
79
the reservoir contact. The authors present the details of an integrated interpretation based on a real-time data set
for the LAT-0 and LAT-1 sections of Well
MN-A (multilateral).
Fig. 2The production log shows incoherent areas on seismic having a very
high potential for water coning. This zone is interpreted as a fault zone
connected with the aquifer. The water coning is mainly caused by a very high
mobility ratio and oil-wet reservoir characteristics.
faulting and with deformation or drag,

is a major challenge. The multilateral
well was drilled by integrating loggingwhile-drilling and X-ray-fluorescence
(XRF) data and petrophysical interpretations in real time to geosteer the horizontal well successfully in the zone of interest with maximum possible reservoir
contact. However, in the current paper,
only the XRF component of Well MN-A
(multilateral) is highlighted. After successful implementation of the work flow
in the lower lateral (LAT-0) placed in the
lower Burgan, the same work flow was
used to geosteer the upper lateral (LAT-1)
in the upperBurgan.
In the current work scope, the prejob modeling consisted of a geochemical model based on XRF analysis of
core chips from offset wells. For a discussion of prejob modeling, including
geochemical and petrographic analysis
and an offset-well study, please see the
completepaper.
Multilateral-Well-Location
Optimization
The well locations for smart multilateral
wells are optimized by integrating data
from multiple disciplines, from the macroscale (seismic) through the microscale
(petrography). Furthermore, data from
seismic, geology, petrophysics, reservoir
engineering, and well surveillance were
incorporated into the predrill characterization program. The lower lateral,
LAT-0 (main bore) of the smart multilateral well, is placed in the lower Burgan,
consisting of a braided river system with
80
stacked sand bodies. The sediment ranges from fine to coarse grain sizes, with
the porosity ranging from 20 to 30% and
with permeability values on the order of a
few darcies. The bottom part of the massive, thick sand bodies is connected directly to the bottom aquifer.
The upper lateral, LAT-1 of the
smart multilateral well, is targeted in
the upper Burgan reservoir, which ranges from silt to medium sands. The porosity is relatively low (between 15 and
18%), and the permeability values are
on the order of 100 md because the
reservoir still retains its fluvial-sand
character. Shaly sediments between the
lower and upper Burgan can act as a permeability barrier or baffle for vertical
migration of fluids. This complex channel geometry makes these reservoirs
very challenging for implementation of
smart multilateral wells.
Real-Time Geosteering Aided

With Geochemical Analysis
High-resolution 3D-seismic-data interpretation has enabled refining of the geological model in terms of faults and reservoir boundaries. Real-time geosteering
is performed by use of advanced and
innovative technologies, including highresolution XRF geochemical analysis, to
identify geochemical proxies and to
allow geochemical steering. In the present scope of work, near-real-time XRF
geochemical analysis complemented
with log-based petrophysical evaluation
was used to better geosteer the wellbore
in the zone of interest and to maximize
Multilateral-Junction Considerations.
A crucial aspect in designing the smart
multilateral well was the selection of an
appropriate multilateral junction. After
a complete screening of various multilateral junctions, the Level-4 junction
was selected. During the well-trajectory
optimization, the multilateral-junction
depth was selected across excellent compact shale at the base of Wara layers to
ensure junction stability during drilling and well completion, and to ensure
junction integrity during long-term production. The high-resolution-XRF analysis shows a high-argillaceous siliciclastic
zone on the basis of chemical behavior.
XRF-Aided Chemosteering in Lower
Burgan Sand (LAT-0). The geochemical
model built with offset-well data guided
the chemosteering of the well, in integration with other information. In the
absence of resistivity data, XRF-analysis
data identified a fault at 7,340ft, which
was not observed by the near-bit gamma
ray log. Elemental changes, supplemented with lithological changes, confirm
the faults encountered at 7,490, 7,950,
8,450, and 8,700 ft. Cl could be used
as a good marker before encountering
the fault. The findings of XRF analysis
are further confirmed, while drilling,
from interpretation of azimuthal density images. Chemosteering thus aided
in changing the well path on the basis of
elemental analysis, helping to maximize
the reservoir contact.
Identification of Faults/Fractures. Azimuthal lithodensity images were interpreted while drilling not only to understand the formation dip but, more
importantly, to identify clusters of fractures/faults. Four fault zones were identified through the LAT-0 section of Well
A, and these were quite evident from
XRF analysis. Though the real-time density images were not of high confidence,
they still were able to provide information about formation dip and helped
guide the geosteering process in the
upper and lower Burgan reservoirs.
JPT FEBRUARY 2015
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Areas of concern
Fault
7,940 ft
Landing
Fault
8,450 ft
Fig. 3Superimposed seismic section with key elemental markers.
During geosteering, in the LAT-0 of

Well A in the lower Burgan reservoir unit,
increments of K, Al, Ti, and Zr are observed, indicating dirty sands. The target
is to keep these elements at a minimum
to ensure contacting good sand, thereby retaining a higher value of silica (Si).
XRF geochemical analysis showed a clean
sand/sandstone over the drilled interval,
with Si values between 18 and 35% and
minimum concentrations of Al, Fe, K, Ti,
S, Zr, Co, and arsenic.
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82
XRF-Aided Chemosteering in the

Upper Burgan Sand (LAT-1). During
landing of the well at the top of the
upper Burgan sand, XRF geochemical
analysis based on elemental signature
showed a sharp positive increment of Si;
heavy minerals Ti, Zr, Al, Fe, and K had
a downward trend, with other elements,
such as Cl, Mo, Cr, Ag, Co, and Sn reaching zero values at the top of the Burgan sand. These proxies are considered
excellent markers and had very good
correlation with the offset well MN-X.
The Si values decreased after displacing
the oil-based mud (OBM) with calcium
carbonate mud because of the contamination and high percentage of Ca. The
correlation with MN-X degraded, and
other elements were selected for correlation. There are 10 proxies with elemental signatures in clean-sand lobes
of the upper Burgan. While geosteering
in the sweet zone, an increase in heavymineral contents (Ti and Zr), particularly
in the middle part of the main clean-sand
channel, then an increase in Mg content, has been noticed while penetrating downstructure, followed by Fe and
Al maximum elevated values while moving further down at the lowest part of the
Burgan, indicating dirty sand and shaly
sections. The evidence of faulting in the
upper lateral (LAT-1) showed elemental
changes, supplemented with lithological changes, very similar to the faults encountered in the Lower Burgan lateral
section (LAT-0). The pilot XRF model
and offset Well MN-X were used with
high confidence to steer the well on the
basis of clear geochemical fingerprints
and markers associated with Burgan sub-
layers. This technique has resulted in

successful chemosteering in the cleansand lobe with less than 10-ft thickness
and has maximized the reservoir contact, even with the structural complexity associated with faults and significant
dipchanges.
Collaborative Work Flow:

A Key to Success
The current work scope was a success
because of the merger of independent
data sets from different analyses through
a collaborative approach, extracting the
right information at the right time. The
first data to be gathered were seismic
data, providing a vital reference frameworksuch as identifying the most likely faulted sections and the type of dislocation they can cause. The seismic image in
Fig. 3 shows the horizontal-well section
superimposed by an abundance of main
elemental markers obtained through
XRF analysis. Clear changes in the abundance of these elements are associated
with the main features of the well section. Al also provided an early indication
of the approaching fault, showing an increase at the start of the disturbed section at 7,836 ft.
Similarly, elemental markers are
also matched with the measuring-whiledrilling azimuthal-tool response. Al
began to increase with the first minor
fault and peaked at 7,940 ft. It remained
high until 8,100 ft, where its values lowered. Ti had similar behavior, with the
difference that it appeared significantly
only when the main fault was encountered at 7,940 ft. The indication from
Al is particularly important because it
came as an early sign of the fault. The
azimuthal information arrived later and
confirmed that a fault had dislocated the
well trajectory, which was corrected as
aconsequence.
However, the use of chemical elements measured in real time with highdensity points is not the only application of this technology. In fact, the same
data can be used during the production
phase to isolate the faulted interval. In
the case outlined in the complete paper,
Al concentration was used as a proxy
along with permeability measurements
to mark and isolate zones of potential
trouble that would be very detrimental
for waterproduction. JPT
JPT FEBRUARY 2015
Long-term scale inhibition:

now built into every fracture.
SCALEGUARD proppant-delivered scale inhibition

SCALEGUARD technology is an encapsulated ceramic proppant infused with scale-inhibiting
chemicals to maintain optimum production and recovery rates from scale-prone wells, while
reducing well costs and chemical usage.
SCALEGUARD technology features an engineered internal porosity and can be blended
with any product from our high quality proppant portfolio, without compromising the high
conductivity of the proppant pack. Scale-inhibiting chemicals infused within the proppant
are released into the fracture only on contact with water to deliver highly efcient production
assurance.
Now long-term scale prevention is available throughout your entire production system from
a single, simple treatment while you frac.
carboceramics.com/scaleguard
Managed-Pressure-Drilling Technology
in Offshore HP/HT Gas/Condensate Fields
he paper discusses two gas/

condensate-development
projectsoffshore Vietnam that
deploy managed-pressure-drilling
(MPD) technology. Bien Dong POC
in 2010 commenced planning for
the Bien Dong1 high-pressure/hightemperature (HP/HT) gas/condensatedevelopment project. The Bien Dong
1 development is a complex HP/HT
project ranking as one of the most
difficult and challenging projects of
its kind in the Asia Pacific region. The
second project covered by this paper
is the gas-condensate development for
CuuLong JOC.
Introduction
The Bien Dong drilling team decided
to deploy MPD technology in the planning phase of the development drilling
and mobilized it for the first well drilled
in the project. This decision was made
because of the very low kick-and-loss
margin and potential for ballooning and
kick events, given the very high pore
pressure. The frequency of well-control
incidents can be higher in HP/HT wells;
MPD enables easier control of kicks with
the automated choke manifold.
A semisubmersible tender assist rig
is being used to drill all the current development wells; it is the largest of its
type in the world and incorporates a
quad mast. The MPD equipment was in-
tegrated into the rig on a flexible plugand-play basis.

The Cuu Long JOC wells, drilled
from a cantilever jack-up over the platform, had somewhat different drivers,
given that a number of wells in this
field had previously encountered challenges that MPD could mitigate. These
included low rates of penetration and
fracture-induced losses because of the
equivalent-circulating-density (ECD)
effect. Managing the ECD became the
main driver as experience was gained
with MPD.
Implementation of MPD
in Bien Dong POC Well 1
MPD with early kick detection was deployed in five Bien Dong wells. The
major objective of using MPD was to ensure that the wells could be drilled safely without encountering any unplanned
well-control events. Ballooning events
were identified by the MPD system during pump-off periods, which had induced microfractures in the overpressured formation, and the return drilling
fluid was flowed back into the wellbore
as the fractures closed. The resultant
flowback can often be confused with
influx. Failure to recognize ballooning
vs. well control is a common mistake
made in drilling operations. While drilling, the entire MPD system was able
to detect a number of gas-at-surface
events. Moreover, the events were eas-
This article, written by JPT Technology Editor Chris Carpenter, contains highlights
of paper SPE 171429, The Deployment of Managed-Pressure-Drilling Technology
To Assist in the Development of Offshore HP/HT Gas/Condensate Fields in Vietnam:
Planning, Engineering, and Implementation, by Ben Gedge, Tan Chai Yong, Jordan
Rao, Harpreet Kaur Dalgit Singh, Joseph Oracion, and Bao Ta Quoc, Weatherford;
Nguyen Viet Bot, PVD Well Services; Nam Hong Tran, Tri Le Tran Minh, Richard
Buitenhuis, and Lich Tran Dai, Bien Dong POC; and Alan E. Wittry, Peter Malpas,
Aldric Beaugeois, Nhieu Nguyen Huu, and Nguyen Van Que, Cuu Long JOC,
prepared for the 2014 SPE Asia Pacific Oil and Gas Conference and Exhibition,
Adelaide, Australia, 1416 October. The paper has not been peer reviewed.
ily identified when the MPD system

was used.
Challenges were encountered on the
Bien Dong wells with rotating-controldevice (RCD) rubber-element-life duration because of drillstring-alignment issues and high temperature (up to 85C
on the return flow) when the mud cooler
was not in operation. The hydrogenated
nitrile rubber elements, which rigorous testing had indicated were the best
choice for high temperatures and oilbased mud, proved to be inadequate in
the field and thus were exchanged for
natural rubber for a trial well.
Figs. 1 through 4 illustrate equipment rig up for this project.
Planning and Prejob

Engineering of MPD
in Bien Dong POC Well 2
MPD with constant-bottomholepressure (CBHP) drilling and early
kick detection by use of a proprietary control system was deployed.
The main objective for using MPD for
this well was to eliminate the risk associated with drilling this complex
HP/HT formation.
With the MPD system, wellbore
pressure fluctuations can be identified
quickly in both static and dynamic conditions; in response, annular backpressure can be manipulated precisely to offset downhole pressure variations and to
stay within the drilling window. Having
the MPD system in place allows fingerprint pressure behavior during connections and pipe movements, to determine
whether a kick is being swabbed in or if
the well is statically underbalanced.
HP/HT Transients. Mud weight should
always be a few pressure points above
the pore pressure to account for both
temperature and potential swab effects.
This makes it more complicated to design the mud gradient in HP/HT wells
84
JPT FEBRUARY 2015
Fig. 1MPD choke manifold rigged up on the main deck.
where there usually is a very small porepressure/fracture-pressure margin. On

the basis of the modeled temperature
plots for drilling the 12-in. section
from the 14-in.-casing shoe to section total depth (TD), drilling with lower
pump rates reduces the effective heat
transfer between formation and drilling fluid.
The effect of temperature on mud

weight in static conditions (pump off) is
significantly higher compared with dynamic conditions. The mud weight seen
at surface will not be the same as the mud
weight at TD in the wellbore because the
geothermal temperature increases as the
well drills deeper; thus, a more pronounced
reduction in mud weight will be seen.
Fig. 3RCD stack installed on the surface BOP.
JPT FEBRUARY 2015
Fig. 2RCD and accessory valves hooked up on the

surface blowout preventer (BOP).
The computation of equivalent static density (ESD), when the drilling fluid
is not circulated in the wellbore and no
surface backpressure (SBP) is being held,
indicates that the selected mud weight
would lead to a statically underbalanced
condition. SBP is recommended to be applied to compensate for the loss of annular friction in static conditions.
Fig. 4BOP-stack arrangement and work platform.
85
ECD/ESD-Management Plan for MPD

Operations. The flow behavior during
MPD/CBHP application was simulated
to define the circulating parameters that
will be used while drilling. These parameters will maintain the dynamic downhole pressure within the operational
window, which is bounded by the formation pore pressure and the fluid-loss
fracture pressure. This will be evaluated as the drilling progresses by adjusting the pressure on surface by using the
MPD choke.
Preliminary analysis of the information reveals that the well can be
drilled safely by walking the line just
above the pore-pressure values. From
the hydraulic model, it can be seen that
with MPD, stopping the pumps during
connections will not prevent maintaining a CBHP marginally greater than the
pore pressure while not fracturing the
formation. This is achieved by holding
a backpressure while circulating across
the well with the MPD choke.
MPD in Cuu Long JOC Wells:

CBHP Drilling in an HP/HT
Overpressured Formation
Three initial wells for Cuu Long JOC
were drilled successfully with the proprietary control system, an automated
choke manifold. The fourth well, which
was recently concluded, used a semiautomatic choke manifold. The decision
to change from the automated choke
system to a semiautomatic choke system
was made mainly because the well profiles were already known and there was
already much confidence in the drilling team to drill the well with a simplified MPD system. In the last well, SBP
being applied every time the circulation
stopped was the main driver of having
the MPD system installed. In this way,
the ECD could be managed as needed.
The main objective of installing the MPD
is to drill the 8- and 6-in.-hole sections by applying SBP to maintain CBHP
when pumps are off as well as during cementing operations.
On the fourth well with MPD application, the most interesting section
where MPD has been mostly applied
is the 8-in.-hole section, where the
86
highest formation pressure was encountered. This hole section was drilled
from 3505-m measured depth (MD) to
4594-m MD and has a formation pressure ranging from 10.2 to 13.7 lbm/gal
in the upper part of the section, then reducing from 13.7 to 12.8 lbm/gal and finally to 11.8 lbm/gal at TD.
With the use of MPD, the hole section can be drilled to TD with a single mud
weight. In the hydraulics simulation performed, the ECD of 12.8 lbm/gal and flow
rate of between 500 and 600 gal/min
are sufficient to stay overbalanced at the
highest anticipated pore pressure. However, when pumps are stopped for a connection, 750- to 800-psi SBP is required
with the MPD choke manifold to replace
the frictional losses while circulating. By
choosing the highest pressure in the hole
section as the pivot point for the MPD
application, the entire hole section can
be drilled successfully and safely with a
single mudweight.
Operations. The MPD equipment was
rigged up after the 13-in. casing was
set and cemented. After the rig up was
completed, the MPD system was pressure tested to check the integrity of
the whole system. The MPD fingerprinting exercise was then conducted before
drilling the 12-in.-hole section. The
RCD bearing assembly was initially installed at 3145-m MD to drill through
the first pressure-ramp zone to 3505-m
MD TD.
For the 8-in.-hole section, the
MPD application started with performing the fingerprinting exercises.
For the first 500 m (3505 to 4004-m
MD), the RCD bearing assembly was installed but SBP was not applied. Drilling of the remaining 8-in.-hole section from 4004-m MD to section TD
of 4594-m MD continued, applying up
to a maximum of 800-psi SBP during
connections, to maintain an equivalent
mud weight of 14.0 lbm/gal; 150-psi
SBP during back reaming after drilling standdown; and 150-psi SBP during
measurement-while-drilling downlinking. After circulating the hole clean,
the mud in the hole was displaced to
14.1 lbm/gal with no losses noted dur-
ing circulation. With a maximum ECD

of 15.03 lbm/gal, the option to conduct
MPD cementing was no longer required.
To mitigate the risk of swabbing gas during pulling out of hole (POOH) of the
8-in. bottomhole assembly, SBP of
170psi was applied. The 7-in. liner was
run in hole and cemented with the 7-in.liner shoe set at 4591-m MD.
For the 6-in.-hole section, the
RCD was installed during drilling, but
with no SBP applied. SBP was applied
only during back reaming after drilling
standdown and a wiper trip to the shoe
to mitigate swabbing. The biggest advantage of having the MPD system installed for this hole section was during
the well-control situation. The RCD was
used to strip back to the bottom of the
hole in order to control the kick and circulate it out. Stripping into the hole with
a casing pressure averaging 1,200psi for
3250 m proved very successful and mitigated the use of the rigs annular blowout preventer.
MPD Cementing. As previously mentioned, MPD cementing has become part
of the contingency planning for wells
drilled in this HP/HT field. It was implemented successfully in one of the four
wells drilled previously, where losses
were encountered during the running of
the 7-in. liner with 13.9-lbm/gal mud in
the hole. Before cementing operations,
the mud in the hole was reduced by
0.3lbm/gal to reduce the ECD and thereby mitigate the losses. While the pump
was shut down after the spacer was displaced, a 150-psi SBP was applied to
compensate for frictional losses. The
150-psi SBP was maintained until the
cement slurry was completely pumped,
and was released when the rig started to
pump fluid to displace the cement slurry. When the top plug was completely
bumped and circulation stopped, the
SBP was then increased to 150 psi and
was held at this value until the liner
packer was set successfully.
For a discussion of applied SBP during POOH and the wiper trip, and stripping through the RCD during a wellcontrol event for this project, please see
the complete paper. JPT
JPT FEBRUARY 2015
Unique System for Underbalanced Drilling

Using Air in the Marcellus Shale
Introduction
While seeking alternatives to increase
ROP and reduce drilling costs, a few operators in the northeastern US implemented batch-drilling practices from pad
locations. This provides an attractive alternative by allowing multiple wells to
share the same surface location, effectively reducing footprint and environmental impact. Common well design uses
streamlined well construction, where
low-cost rigs can drill the tophole sections and larger, more-expensive rigs
drill the curve and lateral sections. The
typical well plan incorporates surface,
intermediate, curve, and lateral sections
that, combined, may exceed 18,000 ft.
The lateral sections are the most critical
and range between 2,000 and 8,000 ft,
depending on formation and well geometry. The goal for close-proximity-well design is to minimize well-to-well interference and maximize reservoir exposure.
Single-Phase
Fluid-System Type
ir drilling has become popular

in the Marcellus and Utica shale
reservoirs because of its higher rate of
penetration (ROP) and less resulting
formation damage. A unique drilling
system incorporating the use of
downhole mud motors, electromagnetic
(EM) measurement-while-drilling
(MWD), and air hammers has been
specifically designed and ruggedized
toaddress downhole shock and
vibration encountered in air drilling.
Use of this system has resulted in
significant reduction of nonproductive
time (NPT).
Two-Phase
Foam
Gas/Mist
2.5
7.5
10
12.5
Pore-Pressure Gradient (kPa/m)
Fig. 1Types of fluids used to address various pore-pressure regimes.
Air drilling provides a significant

decrease in hydrostatic pressure over
common mud types, resulting in an increased ROP. Additionally, significantly
better hole cleaning can be achieved because of the high air velocities used to
drill the well. Finally, mud- and cuttingshandling costs can be reduced because
there are no chemicals to absorb and no
cuttings-cleaning requirements on virgin
formations. Early tests of this application proved it to be a viable option for the
Marcellus and the Utica fields. Initially,
hammer bits were used for air drilling,
but significant challenges involving directional control emerged as well-plan
trajectories became more advanced. The
development of ruggedized mud motors
and MWD tools capable of handling these
challenges, and the use of specialized
fluid-control systems, eventually allowed
more-conventional bottomhole assemblies (BHAs) to be successful when used
for air drilling.
of paper SPE 171024, Unique System for Underbalanced Drilling by Use of Air in the
Marcellus Shale, by Chris Maranuk, SPE, Ali Rodriguez, SPE, Joe Trapasso, SPE,
and Joshua Watson, SPE, Weatherford, prepared for the 2014 SPE Eastern Regional
Meeting, Charleston, West Virginia, USA, 2123 October. The paper has not been
peerreviewed.
Types of Fluid Regimes

Drilling fluid and its circulation system
are used to clean the borehole, stabilize rock, control pressures, and enhance
drilling rates in all phases of a drilling
program. Drilling fluids allow for sufficient cooling, lubrication, cuttings removal, and adequate transference of
hydraulic energy to the bit and other
downhole tools. Though rheology varies, circulation systems focus on operating under specific pressure ranges in
relation to formation and reservoir pore
pressures. Fig. 1 illustrates how various
fluid systems are applied over the range
of formation-pore-pressure gradients.
Types of fluid regimes include the following, and are discussed in greater detail in
the complete paper:
1. Overbalanced drilling
2. Managed-pressure drilling
3. Underbalanced drilling
4. Two-phase and foam drilling
5. Misting and dry-air drilling
Why Use an Air-Drilling

System?
Directional drilling in a dry-air application is widely used in the northeastern US for tophole sections of wells.
The benefits previously discussed become compounded as the batch-drilling
JPT FEBRUARY 2015
87
process becomes more commonplace.

The reduction in drilling days, drillingfluid costs, and cuttings-handling expenses makes batch drilling with air economically moreviable.
The simplest application of conventional air drilling is used for nondirectional applications and involves nothing
more than a tricone or polycrystallinediamond-cutter (PDC) bit. Other straighthole or nondirectional applications
use downhole air hammers or straighthousing air motors. These nondirectional assemblies can be run in several different BHA configurations, ranging from a
semistabilized to a fully stabilized or slick
configuration. The most common method of straight-hole air drilling is to stack
the BHA with additional drill collars to
create a heavy vertical hanging effect that
helps maintain a verticalwellbore.
A motorized air-hammer BHA configuration is not used as widely but is
equally effective. This configuration consists of an air hammer positioned at the
end of a bent air motor. This BHA is run
with an EM MWD tool and a shock sub.
An air-bypass sub is used in this configuration to divert a certain percentage
of air above the motor, preventing overspinning. This added governor aids in
hammer control and increases the longevity of a hammer bit. While directional
control is possible in this configuration,
care must be taken when selecting not
only the bit-to-bend distance but also the
bend angle of the motor. Too much angle
does inhibit the flat-striking impact of
the hammer and can cause damage to the
hammer bit, shortening its life. In addition to maintaining a vertical hole, the
heavy BHA mentioned previously maintains a downward impact of the air hammer, preventing the BHA from bouncing.
The most-common and -reliable air
directional BHA is a bent-housing air
motor with a tricone or PDC bit. This
BHA is used with an EM MWD system set
above the motor, with a shock sub set between it and the motor.
Air-Drilling System
An EM MWD telemetry system offers
several advantages over standard mudpulse-telemetry systems and is the preferred method of transmitting data from
a downhole tool to surface during underbalanced operations. The key advan-
88
tage over mud-pulse tools is that the EM

MWD system can be used with compressible fluids such as aerated liquids or air.
However, the use of air as a drilling fluid
is particularly challenging for any MWD
tool or mud motor because of the extreme levels of axial and crossaxial vibrations generated by the lack of a liquid
fluid regime.
A few operators recognized the potential benefit of drilling with dry air
to increase ROP in the area. But because of congested pads with a great
number of wells, the need for directional measurement and control was recognized. Unfortunately, these early
adaptors experienced a high number of failures when drilling with MWD
and mud motors because of the harsh
air-drillingenvironment.
To mitigate damaging vibration effects, studies were conducted to identify
BHA changes and operational practices
to improve reliability of the air-drilling
system. A number of common operational practices were identified as exacerbating lateral shocks and vibration. Implemented procedures limited off-bottom
rotation, initiated staging compressors,
and stopped the practice of drilling off
weight on bit. While differences were
seen between BHA configurations, it became best practice to remove all string
stabilizers and use a -in. undergauge
stabilizer on a bent-housing motor with
a bend setting no greater than 1.5. Unfortunately, the effect on service reliability was not as substantial as anticipated. As such, a new system was required
to withstand these conditions and operate without failures downhole. This upgrade included a modified air-drilling
motor, a ruggedized EM MWD tool, a
shock sub, and, in certain instances, a
fluid-bypasssub.
The EM MWD tool was ruggedized
by introducing more-robust electronics and alternatively designed shock absorbers, to mitigate vibration. The MWD
mounting technique was converted to
hold the tool in tension while using redesigned centralizers that allowed other
parts of the tool to move with the vibration instead of trying to eliminate it. The
placement of the centralizers was modeled and engineered to eliminate drilling harmonics that could cause damage
to the MWD tool. The antenna of the EM
tool was re-engineered to withstand the

high levels of vibration generated by the
air injection. The overall length was increased by a factor greater than four to
dampen damaging vibration successfully
and prevent vibration concentration on
critical, small-cross-section parts. The
high-rate lithium batteries were laboratory tested extensively and then modified
to operate in this environment.
The drilling motor was modified for
the air environment by making modifications that successfully reduced the necessary lubrication for the bearing pack.
With the changes, the motor requires
only 5 gal/hr of oil to extend its operating
life successfully. Additionally, a series of
self-lubricating dynamic sleeves was incorporated to support side loading and
reinforce the bearing pack, leading to
added longevity and better performance.
A shock sub was designed and used
as a vibration dampener within the
BHA. The new design is able to absorb
a large quantity of both axial and lateral vibrations generated by the mud
motor. The tool successfully dampens
high-frequency vibration that induces
excessive shock to the MWD electronics
andsensors.
When air hammers are employed,
a bypass sub is used to minimize the
amount of air pumped through the BHA.
This bypass sub helps protect the hammer bits, which are sensitive to the higher air-flow rates required for successful
hole cleaning.
Once the engineering phase of the
project was completed, field trials were
initiated. The new system has since
drilled more than 400,000 ft with a success rate exceeding 98%.
Early Case Study

An operator was drilling a series of wells
near Washington County in southwestern Pennsylvania. The target reservoir
was the Marcellus shale. Because this is a
populated area, drilling surface locations
have to be as small as possible. In order
to make drilling economical, as many
wells as possible needed to be drilled
on a single pad. The case-study pad was
designed to drill up to nine complex 3D
wells (seeFig. 2).
A typical well plan includes drilling from the surface to approximately
800ft and setting 13-in. casing. From
JPT FEBRUARY 2015
50
25
70% of build section

completed with dry air
North Offset (ft)
WCS Training Centers

Home Office Rig or Job Location
25
2
3
-LEARNING
DRILLING
50
75
75
50
25
25
50
75
East Offset (US ft) (Scale: 25 US ft/in.)
Last Chance to Complete

IADC WellCAP
Certification
All Drilling Levels
Fig. 2Spider plot of the case-study pad near Washington County in

southwestern Pennsylvania.
Course Must Be Completed

By March 31, 2015
surface casing, a hammer bit without directional measurements is used to drill to

approximately 4,500 ft. The directional
air-drilling system is used to drill from
approximately 4,500 ft to approximately
7,000 ft. Finally, a rotary-steerable tool is
used to drill the curve and lateral. Wells
typically reach total depth at approximately 14,500 ft.
The first five wells were drilled
with a low-angle nudge up to approximately 30. The significance of Well 6
is that this well used the directional airdrilling system to drill a complex 3D well
from 4,600 ft to approximately 7,200ft
with an inclination greater than 62. Almost 70% of the curve was drilled with
the directional air-drilling system. That
would not have been possible in an air
environment without the use of this system. Previously, the customer would use
an expensive rotary-steerable system
(RSS) to drill this intermediate section.
IADC is discontinuing WellCAP

certification through e-learning
platforms for all drilling levels. Future
certifications must be completed in
instructor-led classes.
Once they picked up the RSS, they had to

change to a liquid-based drilling system,
which increased mud cost and reduced
ROPsignificantly.
Well 6 was drilled with air at a rate
of 3,800 scf/m while injecting 22 gal/min
of water. The 2,565-ft section was drilled
in 34.33 hours. The profile of this well
kicked off from 0 at approximately 4,600 ft (measured depth), built a
30 tangent at a 60 azimuth, and then
turned to a 340 azimuth while building
the curve to 62. Through this section, the
MWD tool was able to remain in its lowest
power-transmission setting, maximizing
tool-battery life and the potential time
the tool can remain downhole. Achieving
this amount of build while drilling with
air reduced the time spent drilling the
curve to less than 12 hours. The average
drilling time to build a curve section by
use of conventional methods in the Marcellus is between 21 and 26 hours. JPT
Check our Web site for new and

improved e-learning courses.
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JPT FEBRUARY 2015
Advanced Technologies and Solutions

for Challenging Drilling Applications
Third-Generation
Double-Shoulder Connection
Since the introduction of the secondgeneration double-shoulder connection
(DSC), the industry trend has continued
toward deeper and longer-reach wells,
which has dictated the need for drillpipe connections with enhanced mechanical and dimensional characteristics coupled with improved makeup/
breakoutspeeds.
Consequently, a project was commissioned to design, analyze, laboratory test, and field trial the industrys first
third-generation DSC. A key objective
of the project was to improve connection makeup/breakout speeds significantly. Mechanical and hydraulic gains
were also dictated on the basis of the industrys trend toward deeper and longerreach wells.
Thread 1
Second-generation
DSC-57
Third-generation
DSC-585
his paper provides a review of

recent technology advancements
and addresses practical considerations
associated with drillpipe and drillstem
components for extreme drilling
applications. Recent developments
and enhancements in these connection
designs, including new higher-strength
materials, advanced thread forms, and
associated improvements in torsional
strength and fatigue performance, are
presented. The paper discusses the
engineering solutions implemented to
overcome the high forces, slip-crushing
concerns, and material-strength and
toughness considerations for these
critical applications.
Thread 2
Approximately 4 revolutions
Approximately 13 revolutions
Fig. 1Illustration comparing scale figures of a third-generation DSC and a

second-generation DSC. The double-start-thread form reduces revolutions
from stab to makeup by 50%. Changes in thread taper and pitch further reduce
revolutions in total from 13 to 4.
Design Philosophy. One of the primary philosophies underlying the development of third-generation DSCs was the
concept that one design does not fit all.
This philosophy suggests that a thread
form optimized for 6-in. drillpipe may
not be optimal for 2-in. drillpipe. In
fact, optimized thread forms for each of
these sizes differ substantially.
5- to 5-in. drillpipe sizes represent common sizes for offshore, deepwater, and higher-profile programs such
as extended-reach drilling. Connection
designs focused on speed of makeup and
more-streamlined connections for increased hydraulic performance.
For the large 6-in. drillpipe size
commonly run in elevated-spread-rate
projects such as deep and ultradeep
water, speed of makeup is a primary
paper SPE 170566, Advanced Technologies and Practical Solutions for Challenging
Drilling Applications, by M.J. Jellison, SPE, NOV Grant Prideco, and A. Chan,
Workstrings International, prepared for the 2014 SPE Asia Pacific Drilling Technology
Conference and Exhibition, Bangkok, Thailand, 2527 August. The paper has not been
peer reviewed.
design objective. In addition, makeup

torques can be excessive, at times surpassing the capacity of the rig equipment. Design parameters must be balanced to reduce the makeup torque and
improve hydraulic performance.
Connection Design. Third-generation
DSCs differ from first- and secondgeneration DSCs in several ways. One of
the primary differences is the addition
of a dual-start, twin-lead, or double-start
thread (Fig. 1). The design components
listed in this subsection are discussed in
greater detail in the complete paper. In
addition to double-start threads, these
include the following:
1.Dual-Radius Thread
Form. Thread-root radius
is lengthenedand radically
improved with the dual-radius
thread form in third-generation
DSCs.
2.Optimized Taper. Taper
definesthe cross-sectional
area at the secondary shoulder
providing the improved
torsional strength and controls
90
JPT FEBRUARY 2015
landing-string assembly is required

(Fig.2).
Reduced tool-joint diameter for

reduced makeup-torque
requirements
Extended-length, thicker-wall slip section for
increased slip-crushing capacity
Internal and external upset
Doublediameter-box
tool joint
Increased elevator
diameter for increased
hoisting requirements
Tungsten-carbide-free
hardbanding to protect
riser/casing
High-strength-grade
tube of reduced wall
thickness
Pin-wall thickness to provide
connection tensile capacity
Fig. 2Components of a state-of-the-art landing string.
the stabbing depth of the pin to

the box, affecting makeup and
tripping speeds.
3.Material Strength. American
Petroleum Institute (API)
tool joints are produced with
specified minimum yield
strength (SMYS) of 120,000psi.
During development of thirdgeneration DSCs, a program
was commissioned to develop
130,000-psi-SMYS tool
joints to meet the stringent
toughness requirements of many
proprietary manufacturing
specifications.
Primary benefits of third-generation
DSCs include time and cost savings, increased torque capacity, larger equivalent hydraulic inner diameters, improved
clearance and fishing ability, reduced
failure risk, and extended life.
Landing-String Development
Deepwater- and ultradeepwater-well

designs continue to drive the requirement for higher-tension-capacity landing strings. Water depth and total depth
are increasing, and stepouts are being
extended. This, combined with the often
narrow margin between pore pressure,
mud weight, and fracture gradient, is
causing well designers to set more intermediate casing strings and in turn is
pushing large-diameter, heavy casing
strings to deeper setting depths in order
92
to maintain hole size and reach the intended hydrocarbon targets.

Initially, casing, liners, and offshore
casing strings set in subsea wellheads
were simply run on the drillpipe that
was used to drill the well. As setting
loads increased, however, initial fit-forpurpose solutions were developed with
increased load capacities targeted toward anticipated running loads for specific areas or projects. During this period, landing strings built from casing
were also used. It quickly became apparent that drillpipe landing strings offered
significantadvantages:
Rotary-shoulder connections are
rugged and robust.
Conventional drillpipe-handling
equipment can be used.
A drillpipe landing string can
incorporate connections with
tensile capacity that exceeds that
of the pipe body.
As ultrahigh-capacity landing
strings were developed, slip crushing was
quickly identified as a major design and
manufacturing obstacle. With the slips
currently available, the slip-crushing resistance for the pipe body is less than
its axial tensile capacity. To address this
issue, a special thick-walled section was
provided in the slip-gripping area. Dualdiameter tool joints were used to increase
elevator capacity.
To achieve a lifting capacity of
2.5 million lbm, a state-of-the-art
Pipe Body
The tensile capacity of the pipe body

is defined as the pipe-body yield at the
SMYS, or grade, times the pipe-body
cross-sectional area. There is benefit
from matching the landing-string-pipe
diameter to the drillpipe diameter used
on the rig, where possible.
Early landing-string-pipe bodies
were commonly produced from material of S-135 grade. Now, there are proven
high-strength proprietary grades available with SMYS of 140, 150, and 165 ksi.
Use of these grades provides increased
lifting capacity of up to 22%.
For 6-in.-diameter V-150 pipe,
1.125-in. wall thickness is required for
the pipe-body tensile rating at 90%
remaining-body-wall to meet the
2.5
millionlbm rating. By using a
165,000-psi-SMYS pipe, the wall thickness can be reduced to 1.000 in., resulting in a 5% decrease in string weight.
Development of UD-165. A drillpipe
grade with minimum yield strength
of 165 ksi was developed to meet the
needs of both high-capacity landing
strings and high-capacity drillstrings
required for drilling ultradeep wells,
and the needs of high-strength-toweight drillstrings required to reduce
tensile and drag load in ultraextendedreach wells.
Heavy-Walled Slip Section (HWSS).
Slip-crushing capacity can be the primary design factor for landing strings
because it is less than the tube tensile capacity. In the deepwater Gulf of Mexico,
some slip-crushing failures have resulted in catastrophic events involving the
loss of casing strings to the seafloor. One
way to increase slip-crushing capacity is
through the pipe design. The HWSS provides a thicker wall in the slip-contact
area (Fig. 3).
Weld Strength. For the 2.5-million-lbm
landing string, the expected weld yield
strength would be 125,000 psi or higher. The required weld yield strength calculates to 122,657 psi, which is below
the 125,000-psi minimum and is
thereforeacceptable.
JPT FEBRUARY 2015
Thick-Walled Slip-Proof Section

Fig. 3The HWSS provides increased wall thickness in the slip-contact area for
increased slip-crushing resistance.
Design of a safe and functional

2.5-million-lbm landing string was accomplished, although it pushed manufacturing capabilities to their limits.
First Fully Sulfide-StressCracking-Resistant System

As the severity of sour-drilling applications has increased, the need for drillstem materials resistant to sulfide stress
cracking (SSC) has become acute. Sourservice drillpipe has been available for
some time, and though the metallurgy
is not specifically controlled by National Association of Corrosion Engineers
International standards, these tubulars
and tool joints are often evaluated in
accordance with those standards. The
friction welds joining the upset tubulars and tool joints were not resistant
to SSC and were not evaluated. This has
been acceptable for many sour-drilling
applications because the weld is not
the mostly highly stressed region of the
drillpipe joint and because the operator has a certain degree of control over
the environment through the drillingfluid properties and additives. As moresevere environments with higher hydrogen sulfide (H2S) concentrations were
identified for exploration and development, it became apparent that a fully
SSC-resistant drillpipe system, including the friction welds, wasnecessary.
Sour-Service Drillpipe
SSC caused by the presence of H2S gas
in downhole drilling environments
has led to the development of sourservice drillpipe, which is engineered
to have resistance to SSC. The weld area
of sour-service drillpipe has not been
SSC tested in the past, and there have
been no documented SSC failures in
the weld zone of sour-service drillpipe.
There are several factors that make an
SSC failure in the weld zone of sourservice drillpipe unlikely. The region on
JPT FEBRUARY 2015
both sides of the weld has a cross section much larger (1.5 to 2.0 times) than
that of the tube. This larger weld-area
cross-section means that the stress experienced in that area is less by the
same proportion. Also, it is generally
possible during drilling operations to
control the well environment and help
prevent SSC failure of the drillpipe and
weld zone.
On the other hand, the operating
environment for some critical sour applications cannot always be controlled,
and direct and prolonged exposure to
H2S can occur. Consequently, it became
apparent that an SSC-resistant friction weld was required for these critical
sourapplications.
Friction-Type Welds
and SSC Resistance
During friction welding, heat is generated by mechanical friction between a rotating tool joint and a stationary upset
tube. At forging temperatures, a lateral force is applied to displace and fuse
the components plastically. The weld
area is effectively forged, resulting in a
high-strength weld. The weld area is then
austenitized, quenched, and tempered
to produce a final tempered martensite microstructure. Careful weld-process
control and heat treatment are required
to produce weld-area SSC resistance in
friction-type welds.
For a discussion of SSC-testing parameters, as well as tensile-test and
bend-testing results, please see the complete paper.
Downhole-Heating Failures
Downhole-friction-generated-heating
failures are another problem experienced in a number of deepwater drilling applications. Directional drilling followed by long, potentially high-angle,
deviated sections can create conditions
conducive to downhole heating.
The consequences of downhole

heating can be severe, often resulting in
axial separation of the drillstring, creating potential well-control safety issues
and need for costly fishing jobs and other
remedial efforts.
Three conditions are required for
the production of friction heating: side
loading, rotation, and a sufficient coefficient of friction between the surfaces.
These conditions are met in several ways,
including, but not limited to, rotating in
an excessively severe dog-leg, continued
rotation while in a stuck situation, drilling in an interval that has a high number
of wellbore-trajectory corrections, and
drilling when there is formation sloughing or insufficient mud flow that fails to
remove cuttings (packing off).
Identification Features. Field observation assisted by magnetic-particle inspection, if available, can identify downhole heating as a likely failure cause.
Metallographic- and microscopic-image
analyses are not possible in the field;
however, they are necessary to determine conclusively that failure was the
result of downhole heating. Below is a
checklist, for use in the field during a
failure analysis, of the main features of
downhole-heating failure:
1.Smooth, shiny surfaces from
friction wear.
2.Blackened and charred inner
surfaces near the location of the
failure or thick blackened sludge
formed by burning of drilling
fluids.
3.Exaggerated necking and
elongated necking of the region
near the failure.
4.Flat fracture faces.
Downhole-overheating failures
typically occur in or near the transition
area between the tool joint and drillpipe
upset or heavyweight-drillpipe tube (18
or 35 shoulder area) because this area
can be caught by a ledge, key seat, or
other wellbore obstruction during drilling operations.
A case history involving an extreme example of downhole-frictiongenerated heating in 5-in. 19.50-lbm/ft
Z-140 drillpipe is covered in the
completepaper. JPT
93
TECHNOLOGY
Ian G. Ball, SPE,

is technology
adviser and project
manager with
Intecsea, focusing
primarily on
deepwater subsea
field development and technology
application. Previously, he was with
Reliance Industries as senior adviser
for deepwater challenges in opening
the Krishna Godavari basin off the
east coast of India. For most of his
career, Ball was with Shell, where he
specialized in deepwater subsea and
floater-based field development, with
assignments in Brunei, Norway, UK,
and the US Gulf of Mexico. He holds
a BS degree from the University of
Manchester Institute of Science and
Technology. Ball was co-chairperson
of the 2008 and 2009 SPE Annual
Technical Conference and Exhibition
Program Committees and serves on
the JPT Editorial Committee. He is also
chairperson of the editorial committee
for Oil and Gas Facilities.

OTC 25354 Espirito Santo: Operational
Feedback on the Use of Steel Risers on a
Turret-Moored FPSO by Andrew Newport,
SBM Offshore, et al.
OTC 24834 Concept Evaluation of
Concrete Floating Liquefied Natural Gas
by A. Nezamian, WorleyParsons, et al.
SPE 170696 Upstream-OffshoreFacility Weight-Growth Study by Ray Rui,
Independent Project Analysis, et al.
94
offshore facilities
Last years Offshore Facilities Technology Focus (February 2014) highlighted the slowdown of new-project approvals that the inflated cost of doing business in the oil and
gas sector had already brought about. That slowdown has continued throughout the
past year, although the high cost of goods and services has been replaced as the driver
by the much lower revenues now attainable from the oil and gas produced. In many
cases, the currently required capital investment cannot be justified.
Of course, the cost of goods and services will gradually moderate as the demand
from operators temporarily wanes, but the project activity will really pick up again
only when the value of the hydrocarbons recovers to a point where confidence in
longer-term economic viability is restored. Meanwhile, we risk witnessing yet another
cycle of layoffs and redundancies, even while the wailing over resource shortages for
the tasks ahead still echoes around the upstream corridors of power.
One of the phenomena examined in this years feature is the destabilizing escalation in weight, and hence cost, of offshore facilities that has been an increasingly common feature of our industry after project sanction at a given commitment level. This
is clearly something the industry has to get a proper grip on before confidence can be
restored fully.
We also continue to highlight a theme that has appeared in each of the last four
editions of the Offshore Facilities feature, namely the critical importance and benefits
of effective collaboration at all levels and between sectors of our industry in honing the
efficiency with which development objectives are achieved.
Availability and application of new ways of tackling tough development challenges remain key components of this collaborative quest for ever-better operational efficiency. We delve into several recent examples of how this has been achieved,
using new technologies, methods, and materials. It is hoped that these might serve
as a timely reminder to avoid temporary layoffs by encouraging instead a redeployment of resources temporarily liberated by the current lull in field-development
activity. Many of these could, and perhaps should, be tasked with qualifying the next
tranche of new approaches that will benefit the eventual resumption of unfettered
field-developmentactivity.
Innovation is the life-blood of any high-tech industry, and the operators are the
primary beneficiaries of its application. If we do not take advantage of opportunities
such as those currently presented, to focus liberated resources onto developing and
qualifying the innovations needed for enabling the next set of challenges to be overcome, then we will have only our collective selves to blame.JPT
JPT FEBRUARY 2015
Mars-B Development: An Evolution of

Traditional Well, Rig, and Facility Design
he Mars-B project is the operators

sixth Gulf of Mexico (GOM) tensionleg-platform (TLP) development. The
Mars-B project is aiming to unlock
resources over the next 50 years through
the deployment of a new 24-slot TLP
structure [the Olympus direct-verticalaccess (DVA) TLP] and additional subsea
infrastructure for the west Boreas and
south Deimos fields. The Olympus rig
is a novel platform drilling rig designed
specifically to meet the execution
requirements of complex well designs.
A high-level overview of the design
challenges and the resulting surfaceequipment requirements of this project
is discussed in this paper.
Olympus
West
Mars A
East
Salt
Salt
Deimos
Development
(Deep Mars)
Fig. 1Seismic cross section of the Mars and Deimos reservoirs.
Introduction
The operator discovered the Mars field
in the Mississippi Canyon Area Block 763
in 1989, located 130 miles southeast of
New Orleans in approximately 3,000 ft
of water. The Mars-B project made its
final investment decision in September
2010 to expand the existing Mars operation with a new 24-slot TLP structure and
additional subsea infrastructure for the
west Boreas and south Deimos fields. The
Olympus TLP is located approximately 1 mile southwest of the existing Mars
TLP and represents the first brownfield
development of a deepwater field in the
GOM. It will enable production of an additional 1.1 billion BOE over the approximately 700 million BOE that has been
produced today with the Mars TLP.
The Mars and Deimos reservoirs are

located at depths ranging from 10,500to 25,000-ft true vertical depth (TVD)
and are predominantly Upper Miocene in
age, with only the shallowest parts of this
succession extending into the Pliocene.
These reservoirs have typically culminated in the construction of slope aprons
and fans, the deposits of which now form
the more than 50 stacked reservoir targets for the Olympus-TLP wells.
The Olympus DVA wells are categorized into two pressure regimes dependent on the depth of the reservoirs: the
shallower Mars sediment sands and the
deeper subsalt Deimos sands. The Mars
sediment targets have a shut-in surface
pressure of approximately 7,000 psi, and
the deeper Deimos discoveries have a
of paper OTC 25437, Mars-B Development: Well Challenges and SolutionsAn
Evolution of Traditional Well, Rig, and Facility Design, by Arno L.M. van den Haak,
Wylie J. Cameron, Lisa S. Grant, Nor Janiah H. Japar, and Deandre R. Reagins,
Shell, prepared for the 2014 Offshore Technology Conference, Houston, 58 May. The
paper has not been peer reviewed.
Copyright 2014 Offshore Technology Conference. Reproduced by permission.
higher shut-in surface pressure of approximately 11,000 psi. The well trajectories range from near-vertical to highangle extended reach, through sediments
and through salt penetrations. See Fig. 1
for a seismic cross section. Modifications
to the traditional TLP and DVA rig design
practices are essential for successful execution of these complex DVA-well designs. The traditional approach of fitting
well designs within the limit of a conventional/available rig is no longer viable because of the complex nature of the Olympus well designs.
Olympus Host-Platform
Drilling Requirements
The Olympus topside facilities are configured into four main modules: drilling
module, power module, process module,
and living quarters. The drilling module consists of the DVA-rig structure,
the bridge structure, and the drillingsupport module (DSM), with an estimated dead-weight load of 5,115 tons (Figs.2
and 3).
The DSMs incorporate five submodules (i.e., the electrical, mud-pump,
mud-mixing, and mud-tank modules and
The complete paper is available for purchase at OnePetro: www.onepetro.org.

JPT FEBRUARY 2015
95
Basic Layout of the DVA Rig

Facility and Slot Configuration
Platform North
True North
Drilling Module
Bridge Module
DSM
Fig. 2General arrangement of the drilling module (DVA-rig structure, bridge
structure, and DSM).
the bulk/cement module). The designs

were based on the requirement that normal drilling and completion activities
are performed at 70% or less of max-
imum equipment ratings. Historically,

operating equipment near or at 100% of
equipment ratings increases rig-related
nonproductive-time events.
The DVA rig has the ability to skid over

all 24 slots and can be made storm-safe
to withstand a 1,000-year storm. The
bridge module incorporates both a riser
and a general catwalk on the upper level.
The upper level of the bridge module incorporates the horizontal bucking machine where tubulars will be staged to be
lifted to the drill floor. The bucking machine is designed to handle tubular sizes
from 3 to 18 in. and deliver a maximum torque of 160,000 ft-lb. Tubulars
can be staged and prebucked into 90-ft
stand lengths and moved to the rig floor.
The same bridge can handle 21-in. riser
joints up to 65 ft in length.
The lower level of the bridge module
acts as the linkage between the DVA-rig
structure and the fixed DSM and TLP facility through a series of mechanical junctions. These junctions tie the DSM support functions to the DVA-rig structure in
different skid configurations. Each of the
24 slots has a dedicated set of valves and
connectors assigned.
The subsea template is not an exact
mirror of the surface slot layout. The
mudline locations have been spaced as
far apart as possible without introducing
significant bending moments on the risers and wellheads.
The newly designed wellheads were
chosen for size and pressure rating as
well as a fatigue-life-design requirement that exceeds the 50-year field life.
The installation of the 24 Olympus top
holes was performed riserless and had
to be completed before the arrival of the
TLPstructure.
The slots are designed to be interchangeable to allow for future flexibility;
however, the current development plan
estimates that only approximately onethird of the wells require designs to be
rated in excess of 10,000 psi. Currently,
the Deimos high-pressure wells have limited placement options and are required
to be in the outer slots of the subsea template. This limitation is imposed by the
size of the existing 15,000-psi-rated capping stack and is not a consequence of
drilling restrictions or preference.
Derrick Design
Fig. 3Bridge structure connecting the DVA rig to the DSM.
96
The derrick is almost 200 ft tall with a

maximum static hookload of up to 2 mil-
JPT FEBRUARY 2015
lion lbf, almost doubling the hookload of

the existing Mars TLP rig. This allows for
the installation of deep, long, heavy cap
and containment strings. Normal drilling loads are anticipated to be close to
1.2 million lbf. The requirement of handling the weight of heavier cap and containment strings on existing TLP facilities leads to riskier installation methods
such as casing floating or liner-tieback
configurations because of limited capacity. The availability of a greater overpull
capacity on the Olympus DVA rig reduces
the number of one-way trips. It also increases the probability of initiating rotation of casing and liners. This is viewed
as a critical requirement for the success of landing strings at planned depth
and achieving successful zonal isolation
through novel cementation techniques.
Fluids Management
and Solids Control
Because of the various formation types to
be encountered and the requirement for
specialty fluids during cementation, multiple complete-well displacements are
anticipated. Active and reserve pits were
designed to work either in parallel or in

series, allowing for ultimate flexibility in
managing the surface volumes while optimizing available storage space.
Four slugging pits with 100-bbl capacity each were also specified as a requirement to ensure sufficient volume
capacity and to provide the capability to
mix a variety of lost-circulation material
(LCM). Because of different levels of depletion in the Mars reservoirs, use of a
variety of LCMs is anticipated.
The shakers are configured to have
the flexibility to be operated in parallel or
in series. Flexibility exists to bypass units
from the primary solids-removal flow
stream. The specialty design and configuration allow for one of the shakers to
be used as a scalper in the LCM-recovery
process. This is essential to maintain the
high levels of LCM that are foreseen for
drilling the highly depleted sections.
Managed-Pressure-Drilling
(MPD) -System Configuration
MPD will be used on the majority of hole
sections in order to manage wellbore
stability by reducing the number of bot-
tomhole stress cycles that are traditionally induced when making conventional
connections. On connections and other
pumpoff events, the bottomhole pressure is kept near the same pressure as
when circulating by accurately applying
annular pressure. To streamline MPD
operations and take best advantage of
the technology, the Olympus DVA design has incorporated a dedicated MPD
choke manifold into the rig design. System modifications were made to the traditional MPD piping design, size, and
choke configuration, reducing the expected surface losses to 20 to 30 psi at
rates greater than 1,000 gal/min. An
MPD rotating head with an 18-in.inner-diameter (ID) pass through was
designed to match the drift of the
blowout-preventer (BOP)system.
Pressure-Control Systems
Surface BOP. The well systems are designed to operate with a surface-BOP
system. The surface BOP is an 18-in.
BOP with four rams rated to a 15,000-psi
working pressure. The BOP contains two
doubles, each with a shear-ram/variable-
MARIETTA COLLEGE
DEPARTMENT CHAIR, PETROLEUM ENGINEERING AND GEOLOGY
Marietta College invites applications for the position of Chair of the Department of Petroleum Engineering and Geology at
Marietta College. The Petroleum Engineering program at Marietta is accredited by the EAC of ABET. The full-time faculty of
the Department consists of seven engineers and five geologists. Marietta College admits approximately 90 undergraduate
petroleum engineering students per year. The class of students offered admission for the 2015-16 academic year has an
average incoming high school GPA of 3.94 and an average composite ACT of 29.7. The Department also offers two different
minors in the area of energy systems. There are approximately 380 undergraduate students in the program and a total of
1,250 undergraduate students on campus. The Geology program has approximately 60 majors as well. Graduate degrees
are not offered in Petroleum Engineering or Geology.
Job Description: Marietta College seeks an experienced educator who is dynamic, enthusiastic, and has a proven record of
collaboration and excellence in Petroleum Engineering education. Responsibilities of this position include department
organization and administration; accreditation maintenance; continuous program improvement; fiscal management; budget
and grant development; mentorship and evaluation of faculty; scholarly activities; coordination of the Departments Industry
Advisory Committee; work with industry to facilitate placement of students in internships and permanent jobs; and service to
the college and community. The Department Chair reports directly to the Provost of the College. This is a full-time (9- month),
tenure track position with an additional stipend paid for Chair duties and modest summer duties.
Requirements: Applicants must be a graduate of an accredited petroleum engineering program and preferably hold a PhD
degree or a masters degree, professional registration, and significant industry experience. Teaching experience, an
understanding of the ABET accreditation process, and involvement in SPE activities are highly desired.
Interested applicants should submit a CV, cover letter and contact information for three professional references via the online
application process by March 1, 2015. We regret that we are unable to accept application material via any other venue than
the online option. Please visit the Marietta College website and click on Jobs to apply.
JPT FEBRUARY 2015
97
Register
Now!
bore-ram (VBR) pair. Shear rams, VBRs,

closing pressure, and accumulator size
were chosen on the basis of the proposed
drilling-pipe program and required shutin pressures for both drilling and completions. Drillpipe in the different proposed weights, sizes, and grades was
actually sheared for validation. The highest estimated shearing pressures calculated were for a 6-in. 50-lbm/ft S135
drillpipe. The large ID allows subsea-
wellhead hangers to pass through the
surface BOP, which reduces the requirement to abandon the well temporarily before such activities.
Dual-Bore Drilling-Riser System. This
system has three main components:
21-in. high-pressure drilling
riser
16-in. high-pressure inner
drilling riser
14-in. high-pressure inner
drilling riser
SPE Digital Energy

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Exchanging Ideas on
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35 March 2015
The Woodlands, Texas, USA
The Waterway Marriott Hotel
www.spe.org/go/regDEC
With the support of the

SPE Digital Energy Technical Section
and the SPE Gulf Coast Section
The choice of configuration is dependent on whether there are hydrocarbons present with flow potential, on the
drift required through the riser, and on
the exposed-formation shut-in pressure
with a full hydrocarbon column.
The 21-in. outer high-pressure
drilling riser is deployed for drilling intervals well above known hydrocarbon
zones with flow potential, and a second
high-pressure inner riser will be used
when flow-potential hydrocarbon zones
are expected. This provides two barriers
once hydrocarbons with flow potential
are exposed.
Hopping of 21-in. High-Pressure
Drilling Riser. The Olympus drilling
riser is designed to be suspended below
the skid platform, enabling the rig to
move off the slot without pulling the
drilling-riser systems. This functionality allows for riser parking and riser
hopping rather than having to recover
the riser once the drilling phase has been
completed. Riser parking does not allow

for unlimited access to all the slots from
one central location, but rather access
to all slots in a six-slot quadrant because
the drilling riser is suspended from a
central slot within this quadrant.
Subsea Wellhead and Connector. The
21-in. high-pressure riser seals on
the connector. This is the same connection that is used by a subsea-BOP low-
pressure marine-riser configuration.
Both inner risers seal within the 18in.
wellhead. The addition of the inner riser
provides two true independent mechanical barriers at the mudline. If the connection to the 21-in. high-pressure
riser were to leak or become disconnected, the high-pressure inner riser would
remain in place, maintaining a conduit
to the surface. When the inner and outer
drilling risers are both installed, the risers function as pressure barriers.
In a single-bore-riser system, a leak
in the riser could result in the reduction of bottomhole pressure to a level
lower than formation pressures because
of a drop in the weighted fluid column
as well as loss of the pressure conduit.
Thus, the dual-bore-riser system is considered to be a true two-independentbarrier system.
Fatigue-Design Considerations. The
inner and outer risers have to be designed for fatigue because riser pipe
is subject to movement in the water
column. Replacement of joints in the
21in. high-pressure riser is considered to be less frequent, so the fatiguelife requirements for the design are
significantly more stringent in comparison with those for the 16- and 14-in.
inner drilling risers. The 21-in. high-
pressure riser is designed for a 20-year
service life and a 200-year minimum fatigue life.
For a description of the projects
production-riser systems, please see the
complete paper. JPT
JPT FEBRUARY 2015
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Moorings Replacement and Hookup

for a Damaged North Sea FPSO
n a North Sea storm during February

2011, the Gryphon Alpha floating
production, storage, and offloading
(FPSO) unit broke four of its 10 mooring
lines and moved partially off station,
resulting in damage to subsea assets.
Following the incident, the FPSO was
taken to dry dock for replacement of
the damaged subsea infrastructure
and moorings. This paper describes
the measures put in place so that the
mooring system could be replaced
and the FPSO reconnected on an
efficientschedule.
The FPSO
In September of 1993, the Gryphon Alpha
became the first purpose-built longterm-moored FPSO to be installed in the
North Sea. The unit is located 175 miles
northeast of Aberdeen in a water depth
of 112 m. Gryphon has a somewhat unusual layout in that the turret is located
forward of midships (Fig. 1). Five fully
azimuthing thrusterstwo forward and
three aftare used to provide heading
control. Each mooring line has its own
windlass and azimuth swiveling-gypsywheel assemblies provided at the base
of the turret. It is therefore relatively
easy to adjust mooring-line tensions and
lengths compared with other turret designs. A drag chain is provided for fluid
transfer from the wells. This means rotation of the FPSO is limited to 270, either
clockwise or counterclockwise from the
vessels neutral heading of 225. During
the original installation, the FPSO was

provided with 10 all-chain mooring lines
consisting of 84-mm studded chain attached to 35-t drag-embedment anchors.
Background to the Event

Gryphon sustained damage in a severe
storm on 4 February 2011 when one
mooring line failed and the vessel lost
heading control, causing it to turn partially beam-on to the weather, resulting
in failure of a further three mooring lines.
The FPSOs partial movement off station
caused considerable damage to the subsea architecture.
Because of the length of time required to reinstate the subsea equipment,
it was decided that the FPSO should be
removed from the field for shipyard work
that would involve inspections; repairs;
and upgrades of the structure, vessel
equipment, and process equipment.
New-Mooring-System Design
and Fabrication
A number of potential mooring-linedesign solutions were considered; from
these, it became evident that using a
weighted section of chain in the mooring
line reduced the dynamic tensions. The
new design was optimized further to provide installation and maintenance preferences (e.g., a change was made from
the original 84-mm studded to 84-mm
studless chain). For the weighted-chain
section, 120-mm studless chain was used
to allow the chain to be supported by
a number of available anchor-handling
of paper OTC 25322, Gryphon Alpha FPSO: Experience Gained During Moorings
Replacement and Hookup, by Fred J. Toal and John G. Martin, Maersk Oil, and
Martin G. Brown, Ian M. Lindsay, and Robert Sinclair, GL Noble Denton, prepared
for the 2014 Offshore Technology Conference, Houston, 58 May. The paper has not
been peer reviewed.
vessels (AHVs) working in the North Sea.

The inclusion of 6.6-m-long, 120-mmchain tails enabled support of the trisection during installation when connecting
the 84-mm chain.
With an outline design selected, a
dynamic frequency-domain analysis
was carried out for all the intact and
single-line-failure cases required. The
thruster-failure cases were matched with
a review of the overall station-keeping
ability added to the intention to operate
the switchboard on an open bus, giving
three independent thruster groups and
hence triple redundancy on power loss to
all thrusters. Time-domain analysis was
carried out to confirm the results of the
frequency-domain analysis.
Only a few manufacturers could
meet the companys time-frame and quality requirements for the chain and accessories. One of the requirements was the
use of advanced ultrasonic technology to
find defects within the core of the chain.
Traceability of the chain was improved
by adding radio-frequency-identification
tags to the chain-locker-studded chain
lengths and to each of the accessories.
Additional mechanical tests across the
weld area were also a requirement to
quantify grain size, hardness, and tensile
properties. In parallel, structural analysis
of the windlasses, fairleads, turret bearing, and turret was carried out.
For details about the complex multidisciplinary planning, coordination, and
storage involved in the project, please see
the complete paper.
Mobilization for
New-Moorings Prelay
Preparations for FPSO-moorings prelay commenced during the last quarter of 2011. An important element in
the preparation of the mooring was the
makeup of the trichains, which involved
careful chain selection and placement.
Placing the shortest chain in each tri-

100
JPT FEBRUARY 2015
Fig. 1Gryphon Alpha: Schematic showing the turret forward of midships.
chain at the center provided the best

assurance that each trichain would remain horizontal when tensioned up to
operatingtension.
Stage 1: Moorings Load Out and Prelay. Load out of the single 120-mm and
84-mm chain was carried out from
the quayside into the AHV chain lockers, and the anchors were landed on
deck (Fig. 2). The prelay comprised a
35-t anchor, 250120-mm chain, and
58784-mm chain. Before connection
to the trichain, it proved necessary to
carry out the prelay operation in two
stages. In addition, space constraints on
the AHVs limited the number of anchors
and chains to three per vessel, requiring
two trips for the two AHVs to prelay and
perform test tensioning on the Stage-1
components of all 10 moorings.
The first stage of the prelay operation involved a survey-equipped workclass remotely operated vehicle (WROV)
monitoring and recording setdown of
each anchor. This was followed by the
lay of the 250120-mm chain and the
58784-mm chain within carefully defined corridors before applying an embedment pull of 200 t followed by test
tensioning each anchor to 430 t for 15
minutes. Once the test-tension exercise
was approved by the attending surveyor,
the end of the 58784-mm chain was set
down on the seabed using a grommet,
which was maintained above the seafloor
by a subsurface spring buoy to facilitate
later recovery. A seabed survey was car-
JPT FEBRUARY 2015
Fig. 2Anchors on deck (Stage 1).
ried out before prelay to check for obstructions and seabed features.
Applying a classification-societyspecified test-tension load of 430 t to
each anchor for 15 minutes was beyond
the bollard pull capability of a single
AHV, so it required the use of two AHVs
in formation. A lesson learned from this
operation was that, because of apparent
variations in seabed density and vessel
motions during test tensioning, the dynamic load applied to the anchors varied
fairly significantly around the required
mean value. This resulted in all anchors
dragging in to some extent and a few anchors becoming deeply embedded (the
deepest of which was measured to have
embedded approximately 14 m below
thesurface).
Stage 2: Trichain Load Out and Prelay.

Because the trichain sections (approximately 100-t weight per trichain) were
fully assembled onshore, it was not possible to locker the trichains, so one trichain was spooled directly onto the AHV
working drum (Fig. 3); a further two trichains were stored on deck and drawn to
the side so as not to impede the deployment of the first trichain.
Even though the selected AHVs
are among the latest-generation models, with large-capacity winches and
aft deck gantries (Fig. 4), certain modifications were required to make the
trichain-spooling operation possible
(see the complete paper for details).
Once the trichains were loaded, the
vessels sailed for the Gryphon location
101
Fig. 3Trichain loading (manual spooling) onto the AHV.
Fig. 4Gantry available to traverse the complete aft deck of the AHV.
Connected trichain and 84-mm single chain over the stern roller.
to recover from the seabed a selected

84-mm chain end installed in Stage 1.
Once the chain was recovered and on
deck, its length was adjusted to take account of the anchor position followed
by connection to the trichain section
spooled onto the work winch. Deployment of the trichain section was controlled by the work winch; however, before laying the trichain on the seabed,
it was necessary to induce a lay-back
bight into the 84-mm mooring chain.
It should be noted that the entire subsea infrastructure had been installed
before the installation of the moorings.
Once the required lay-back had been
achieved, the trichain was set down in
a designated corridor and the inner tail
chain was fitted with a grommet and
subsea spring buoy for later recovery
when connecting to the FPSO moorings.
102
For a discussion of the preparation and execution of the FPSO sailaway from Rotterdam, please see the
completepaper.
Prelaid-Moorings Connection
to the FPSO
On arrival at the location, the FPSO connected to four dynamic-positioning
Class-2 AHVs in a star-shaped formation. Once all four vessels were connected, station-keeping trials took place, and
there was a short delay while waiting on
the requisite weather window. The FPSO
was then moved into position over the
field turret center (FTC) by the four AHVs
and was maintained at FTC (with an average accuracy of 5 m) for the entirety of
the mooring-connection operation.
Once the FPSO was at FTC and station keeping was being maintained to the
required degree of accuracy, mooringconnection operations commenced with

the lowering of a selected feeder chain
from the FPSO. On two mooring lines, it
was found that, with minimum weight
on the outboard chain tail, debris that
had gathered at the bottom of the hawse
pipe during the transit was sufficient for
the chain not to pay out freely as expected. This was overcome by paying out and
heaving in on the winch a few times until
the debris was displaced and the chain
could be lowered.
Moorings connection involved lowering a 26-mm nonrotational wire fitted
with a 40-t ROV hook that was grasped
by the manipulator of the WROV and engaged into the end link of the lowered
feeder chain, which was then recovered
onboard the AHV while being paid out
from the FPSO.
Once onboard the AHV, the
30084-mm mooring-chain section was
connected to the FPSO feeder chain by
use of a slimline 84-mm link, which enabled passing through the FPSO fairleader wheel. The connected chain was paid
out while the AHV maneuvered above the
trichain location on the seabed. The trichain was recovered on deck by means
of an 84-mm work chain connected
into a 640-t pennant fitted with an ROV
hook. Once the trichain tail chain was
engaged, it was connected into the FPSO
30084-mm mooring chain by means
of a 120-mm/84-mm H-link (Fig. 4). On
completion of the connection, the mooring chain was lowered to the seabed while
the FPSO recovered the mooring chain.
Once all 10 moorings were connected, the next stage in the operation was to
tension the moorings to the design operating tension of 85 t at the ballast draft.
Correct pretension was achieved by adjusting the payout on the windlasses until
the touchdown points and the elevation
of the delta plate were at predetermined
positions. The presence of a naval architect ensured that all moorings were tensioned acuurately, with the FPSO in the
correct position.
No safety-related incidents or injuries occurred during the entire
mooring-reconnection operation, despite the operation being carried out
during the end of September, when
less-favorable weather conditions are
typicallyexperienced. JPT
JPT FEBRUARY 2015
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Upgrade of Spar Topside With

Comprehensive Sand-Management System
deepwater field located offshore

Sabah, east Malaysia, features a
spar dry-tree unit (DTU) and multiple
subsea-hub tiebacks to a floating
production, storage, and offloading
vessel (FPSO). In early 2011, several of
the wells began producing solid fines
that affected production. It was decided
that a long-term solution would be
to recomplete the affected wells with
enhanced downhole sand control on
the lower completions. The short-term
solution consisted of installing a topside
sand-management system on the spar
and sand-sparging equipment on the
FPSO separators.
Project Overview
The Kikeh field is located 120 km northwest of the island of Labuan at approximately 1300-m water depth. The field
was developed using a standalone facility, with hydrocarbons being produced
from both subsea and dry-tree wells from
a spar/DTU facility. The oil is processed,
stored, and exported from an FPSO.
Fig.1 shows the layout of the field.
In December 2008, the Kikeh field
began to produce solids at varying rates,
and by January 2010, after the failure
of a sand-screen completion on one of
the wells, the process facilities on the
FPSO started to receive approximately
1 t/d of sand. Once it became apparent
that solids production would be experienced throughout the life of the field, a
program had to be developed to address
the challenge.
Fig. 1Photograph of Kikeh field surface layout showing the Seadrill West
Menang semitender contracted for well workover in the left foreground, the
Murphy Kikeh spar DTU in the right foreground, and the Kikeh FPSO in the
background.
The project goal was to install wellhead desanders on the DTU immediately
downstream of the wellheads, which provide protection for the DTU choke valves,
production headers, fluid-transfer lines
(FTLs), and FPSO swivel and manifolds,
and lessen the accumulation of solids in
the FPSO process vessels. The objective
was to remove to the highest possible degree (and as soon as practicable) the produced solids that reached the surface in
the process flowlines.
By March 2011, the solidsproduction problems became worse, resulting in some of the wells being shut in.
The situation led to a proposal to install
five individual wellhead-desander units
of paper OTC 24705, Upgrade of Spar Topside With Comprehensive Facilities SandManagement System, by Y. Loong, Murphy Sabah Oil, and H. Rawlins and D. Goo,
eProcess Technologies, prepared for the 2014 Offshore Technology Conference Asia,
Kuala Lumpur, 2528 March. The paper has not been peer reviewed.
on the DTU solids-producing wells. The

fast-track project took approximately 30
weeks to complete, with an additional five wellhead desanders installed at a
subsequent stage.
Once the solids have been separated from the wellhead desander and collected from the accumulator unit, subsequent solids handling is required for
further processing. This project was executed in two phases. Phase 1 initially consisted of a rudimentary solids-handling
system for onshore disposal, and Phase
2 included the installation of a sandcleaning system for overboard disposal.
The first five wellhead desanders
were coupled initially with the solidshandling system because of the urgency
of the situation. The solids-handling system in this initial phase took collected
solids from the accumulator units, which
were periodically dumped into pipe
headers with continuous flow of water,
and transferred the slurry to a liquiddecanted container and solids bag. This
specially designed permeable solids bag

104
JPT FEBRUARY 2015
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1/12/2015 6:23:30 PM
Clean
well fluids
Wellhead
Solids-laden
well fluids
Wellhead
desander
Solids
accumulator
Solids
discharge
Fig. 2Schematic of wellheaddesander installation, showing

primary vessels and valves.
drains off the liquid, and a diaphragm

pump transfers the decanted liquid to
the open-drain sump tank. The permeable bag and liquid-decant container are
located at the lay-down area where they
are accessible by platform crane, and the
solids are transferred to shore in containers for disposal.
Kikeh Sand Production

Sand-Control Options. The recommended location for surface solids removal is before the choke, which allows
protection of all downstream equipment.
Solids upstream of the choke are at the
highest temperature of the facility and
uncontaminated by most production
chemicals, rendering these solids easiest to clean once separated before the
choke. With specific regard to compact
separation devices, solids are most easily removed from multiphase streams as
the increased gas-void fraction (GVF) reduces the continuous phase viscosity and
density, permitting increased separating
velocity of the solids. A separating device
upstream of the choke also relieves the
pressure-drop burden on the choke bean,
lessening erosion and converting that
pressure into usable separation energy.
106
Cyclonic Technology for Multiphase

Flow. Cyclonic technology covers a class
of unit-process devices designed for
compact phase separation. Each device
converts the potential, or pressure, energy of a fluid into rotating kinetic energy using only the shape of the device to partition two or more phases in
that fluid into the respective number
of concentrated outlet streams. The advantage of cyclonic technology is that
it has the highest throughput/size ratio
of any partitioning device. Thus, for a
given flow rate, cyclonic technology will
have the smallest size and weight of any
deviceavailable.
The wellhead, or multiphase, desander is a cyclonic device applied upstream of the choke to remove solids
from raw well flow. As with all cyclonic
devices, pressure energy is converted
to radial and tangential acceleration to
impart centrifugal forces to the contained fluids. The increased forces accelerate the separation of phases with
different densities. In the case of a multiphase desander, solids are separated
from the gas/liquid mixture. The separated solids collect in an accumulator chamber for periodic isolation and
batch discharge while the well fluids
maintain continuous flow. Wellhead desanders find use as service tools during
well-testing or workover operations and
as production tools for ongoing facilities
sandmanagement.
Fig. 2 shows a schematic of the typical production wellhead-desander design. The system and its operation are
discussed in detail in the complete paper.
Wellhead-Desander-System Design.
Each wellhead-desander system is designed for full shut-in and flowing conditions of the producing wells. (Please see
the complete paper for a detailed discussion of the wellhead-desander system
used in the Kikeh field.) The wellheaddesander system is made up of three
main components: a desander unit, double block and bleed-gate valves, and a
solids-accumulator unit. The accumulator is supported by a foundation and
bracing, while a structural side support
is installed to secure the desander vessel.
A number of piping headers connects the
individual wellhead-desander units. The
piping headers are installed at the well-
bay area and are integrated with each desander system.

During operation, the fluids from
each well flow into the corresponding
wellhead-desander system. The incoming fluids are directed to the inlet nozzle of the wellhead-desander vessel,
then into the cyclonic insert. The insert geometry and design, as well as
inlet pressure, accelerate the flow to
spin within the cyclonic insert. The vortex flow pattern accelerates the heavier sand particles to the insert inner
wall, where they spin down and out of
the insert apex opening. The solids fall
through the apex, through the wellheaddesander-vessel integral-accumulation
chamber, through the double block and
bleed (DBB) valves, and into the solidsaccumulator vessel. The water in the accumulator vessel is displaced back to
the wellhead-desander vessel to report
to the clean-fluid outlet. The incoming fluids discharge through the insert
vortex finder and then the wellheaddesander-vessel outlet. These fluids are
then directed to the chokevalve.
Once the accumulator vessel becomes full of sand, the DBB valves are
closed. The accumulator is vented to atmospheric pressure, and then the slurrydischarge valve is opened. Clean water is
introduced into the top of the accumulator to push the slurry from the accumulator and into the slurry-transport header. The slurry discharge is then closed,
and the accumulator is filled with clean
water. The accumulator is first repressurized with a 25-mm line connecting
the top of the accumulator to the side of
the wellhead-desander vessel. The DBB
valves are then opened to reintroduce
the accumulator to the process flow.
During the accumulator isolation-vent
flush/fill cycle, which takes an average of 1520 minutes to complete, the
wellhead-desander vessel has sufficient
holdup volume beneath the insert to
hold the separated sand. In this manner,
the separation is continuous, with batch
discharge of the solids.
Project Detailed Engineering

The DTU platform had very little space
in the well-bay area, and the challenge
was to install not only up to 10 separate wellhead-desander assemblies, but
to do so upstream of the chokes. With
JPT FEBRUARY 2015
the help of facility modeling and careful

planning, a feasible and flexible solution
wasreached.
The wellhead desander was installed
into the flowline immediately downstream of the flexible jumper. This location minimized the flowline portion
vulnerable to sand erosion and had a
sufficient footprint area for the customized desander components. The flowline
was cut and connected to the wellhead
desanders with a removable spool-andbypass line that was installed once the
equipment was no longer required
forproduction.
For a discussion of cyclonicinsert-size selection, please see the
completepaper.
Collected-Solids-Handling System.
Each sand accumulator is designed to
store approximately 1000 kg of sand.
The accumulated sand is discharged at
approximately 4- to 6-hour intervals into
a common-slurry header, which transports the slurry to a central dewatering
and bagging station. Primary dewatering
is accomplished with urethane desilting
hydrocyclones, with the removed water
captured to the open drain system. The
concentrated slurry receives final dewatering through reusable 1.0-m3 oleophobic rapid-weep sand-filter bags, with
the filtrate sent to the closed drain system. The dewatered sand is transported
in the filter bags to a transport skip, and
the skip is used to send the sand onshore
for landfill disposal.
Operation and Maintenance

The wellhead-desander operation is
relatively labor intensive and requires
dedicated manpower to flush the unit
frequently because of the high solids
loadings. The accumulator is usually
flushed one to four times in a shift and
before the vessel is half-filled. The flushing frequency depends on the rate of
produced solids, while backflushing is
undertaken if the vessel is tightly packed.

This is an issue in the Kikeh field because
of the high concentration of clay-like
particles in the solids load.
Unexpected high sand concentration (in the 25% range) at some wells
led to premature insert failures. At one
well, the insert was eroded in less than 2
weeks because of very high sand concentrations. Different types of high-wear insert material are now being used to overcome this issue, to prolong the life of the
insert in these unusual conditions. After
a short shut-in period, an insert is easily
replaced. A well also can be choked back
to reduce flow and subsequently reduce
the sand volume.
Under the Patronage of
His Royal Highness
Prince Khalifa bin Salman Al Khalifa

Prime Minister of
the Kingdom of Bahrain
Equipment Performance
Three aspects of equipment performance
were analyzed to determine the efficiency
of the system. The first was measurement
of separation size through sampling, the
second was the net effect on hydrocarbon
production, and the third was the lifetime
of cyclonic inserts in regard to material
selection. Of these three criteriaall discussed in detail in the completepaper
the net effect on production is the most
critical, because it determines the return on investment for the facilitiesmodification work. The primary goal
of each wellhead-desander system is to
reduce the incoming solids loading to
<0.05% solids content.
The net operating effect of installing wellhead desanders on six of the
wells was dramatic. Hydrocarbon production is increased because the wellhead desander allows for opening of the
choke until the 0.05% sediment value
is reached. The total net oil increase is
an average of 1,000 B/D per well. The
amount of sand produced by each well
has a wide range, both within a single
well and across multiple wells. These values range from 130 to 1137 kg/d, with a
total sand production ranging from 400
to 2741 kg/d for these six wells. JPT
19th Middle East Oil & Gas

Show and Conference
BAHRAIN INTERNATIONAL EXHIBITION
AND CONVENTION CENTRE
CONFERENCE:
8-11 March 2015
EXHIBITION:
9-11 March 2015
CONFERENCE
ORGANISERS
EXHIBITION
ORGANISERS
fawzi@aemallworld.com
dubprog@spe.org
WORLDWIDE
COORDINATORS
FAR EAST
meos@oesallworld.com
gerald@iemallworld.com
www.meos2015.com
JPT FEBRUARY 2015
COORDINATORS
TECHNOLOGY
Angel G. GuzmnGarcia, SPE, is

an independent
energy consultant.
He holds a PhD
degree in chemical
engineering
from Tulane University. GuzmnGarcia spent more than 23 years with
ExxonMobil, where he held a variety of
positions: conducting research on the
response of resistivity tools in shaly
sands; investigating nuclear-magneticresonance petrophysical applications;
conducting and interpreting production
logging; designing fluid-sampling
collection and pressure/volume/
temperature analyses; and designing,
executing, and interpreting well tests
in both siliciclastic and carbonate
environments. He is an instructor in
well testing, production logging, and
petrophysics and is a member of the
JPT Editorial Committee.

OTC 25207 Innovative Positioning of
Downhole Pressure Gauges Close to
Perforations in HP/HT Slim Well During
a Drillstem Test by AbdulHakim Al-Nahdi,
Saudi Aramco, et al.
SPE 171686 Successful DST
Methodology Adopted in Highly Deviated
Deep, Sour, and HP/HT Exploratory Well:
A Case Study by Abdulla Al-Ibrahim,
Kuwait Oil Company, et al.
well testing
With the success of hydraulic fracturing in the US shale-gas plays, why are more operating companies not using energized fluids to minimize the use of water, decrease the
amount of proppant required, and (theoretically) enhance long-term productivity? It
appears that Canadians have been somewhat more receptive to the idea and are more
willing to use energized fluids, with apparently positive results. Perhaps it is too early
in the game to convince operators in the US to take another look at this technology
with an open mind. Allow me to start a dialogue in this area.
The perception that using energized fluids is more expensive to achieve the same
goal could be one hurdle keeping operators from using them. Nonetheless, let us take
a step back and think of some of the more obvious, readily understood benefits: minimizing the use of water and decreasing the amount of proppant. Every operator knows
the vast quantities of water required in hydraulic fracturing. This is a commodity that
appears to be readily available, but it is not. And this problem will only be exacerbated with time. One of the insidious issues is that not all the water used during fracturing is recovered when flowing back the well, and whatever water is recovered cannot
be used in subsequent fracturing stages. Hence, there are huge costs associated with
water alone. Proppant, the nice, homogeneous sand grains that keep the fractures
open and permeable, is also costly. Decreasing the amount required per stage is equivalent to more money in the operators pockets. When one realizes that many countries
with enormous shale-gas plays do not have vast resources of readily available water,
then the game changes. This may even result in an excellent public relations opportunity when the general public realizes that oil companies care about the environment
and the precious resources.
For this issue of JPT, it was quite difficult to select three articles because there
were so many excellent papers. I have attempted to narrow down the many papers
to three that provide a broad perspective and the astute use of well-test data to be
insightful to all readers. The interested reader will find many good articles on this subject in the OnePetro library.JPT
IPTC 16427 Mini-DST To Characterize

Formation Deliverability in
Unconventional Reservoirs
by B. Kurtoglu, Marathon, et al.
108
JPT FEBRUARY 2015
Modeling Transient Wellbore Temperature

During Diagnostic Fracture Injection Tests
iagnostic fracture injection

tests (DFITs) have gained
widespread usage in the evaluation of
unconventional reservoirs. In typical
field operations, pressure is measured
at the wellhead, not at the bottom of
the hole. The bottomhole pressure
(BHP) is obtained by adding a constant
hydrostatic head of the water column
to the wellhead pressure (WHP) at
each timestep. One can question the
soundness of this practice because of
significant changes in temperature
that occur in the wellbore, leading to
changes in density and compressibility
throughout the fluid column. This paper
offers an analytical model for estimating
the transient temperature at a given
depth and timestep, for computing
theBHP.
Temperature Model
During Pressure-Falloff Test
After a well is shut in at the surface, afterflow at the sandface is negligible because
of low formation permeability. Upon cessation of injection, the cold injection
water begins to gain heat from the surroundings. Heat transfer during flowing
and shut-in conditions has been modeled
with an energy-balance equation, accounting for various resistances to heat
transfer. The resulting differential equations are solved numerically. However,
with robust assumptions, an analytical
expression can be developed for transient fluid temperature during falloff.
The heat flow from the formation into the
wellbore raises the internal energy of the

fluid and of the composite tubing/casing/
cement material. Please see the complete
paper for the quantitativeexpression.
rected pressures begins to diminish

with time because the change in density or expansivity is counteracted by the
fluidscompressibility.
Field Example
Analysis of Pressure and Temperature

Transients During Falloff Test. Fig. 4
exhibits the pre- and post-closure responses, where the fracture-closure time
of 13 hours is indicated. This plot comparing the BHP and WHP responses suggests that the pressure-conversion issue
becomes moot for the problem at hand
because the two curves converge well before the closure time.
The analysis of temperature transients also suggests the dominance of
linear flow because of the slow thermaldiffusion process. A fracture-closure
time of 12 hours is estimated from the
diagnostic plot, which is in good agreement with its pressure counterpart. The
authors surmised that the upward shift
in the temperature derivative near the
0.8-hour mark is a manifestation of nonidealized fracture geometry. However, the
smooth transition from the higher elevation appears to be a reflection of the
fractureclosure.
Modeling Temperature Transient

During Falloff Test. The pressurecomputation algorithm entails two
steps. First, the temperature is evaluated as a function of time at various depths
throughout the wellbore. As expected,
the temperature at well bottom will exhibit the largest excursion. Second, the
fluid properties of density and compressibility are evaluated at each depth step
corresponding to the temperature profile, leading to the BHP estimation at a
giventimestep.
Fig. 1 presents the falloff data measured during a test. The rapid rise in temperature over the first 10 hours suggests
potentially large changes in compressibility and density of water. Therefore,
if the fracture closure occurs within this
time period, uncertainty in BHP estimation may affect analysis. Fig. 2 shows the
quality of match obtained for temperature data with the square-root-of-time
model presented by the equations found
in the complete paper.
Establishing time-dependent temperature profiles with the equations
is a first step toward computing BHP
from WHP. Thereafter, the fluids expansivity and compressibility are estimated. Fig. 3 displays the temperature
and density profiles. Note that the error
between the corrected and the uncor-
This article, written by Special Publications Editor Adam Wilson, contains highlights
of paper SPE 166120, Modeling Wellbore Transient Fluid Temperature and Pressure
During Diagnostic Fracture Injection Testing in Unconventional Reservoirs, by
B.Nojabaei, SPE, The Pennsylvania State University, A.R. Hasan, SPE, Texas A&M
University, and C.S. Kabir, SPE, Hess, prepared for the 2013 SPE Annual Technical
Conference and Exhibition, New Orleans, 30 September2 October. The paper has not
been peer reviewed.
Analysis of Injection Pressure With

Modified Hall Method. Analysis of injection data has faced uncertainty because of complex mechanisms of fracture initiation and propagation, variable
fluid loss, and fluid efficiency that are
all in play over a short period of time.
The modified Hall approach can be used
to establish the formation-breakdown
pressure with injection data. The numerical derivative is a good way to arrive
at the breakdown pressure. The breakover point agrees closely with that of
the numerical derivative. As expected,
neither the radial-flow model nor the
log-time derivative show any point of
inflection. Despite the new semianalytical formulation with linear flow, the
JPT FEBRUARY 2015
109
6,000
BHP
230
220
220
210
210
200
200
190
4,000
180
2,000
WHP
170
160
160
150
150
0
Fig. 1BHP, bottomhole-temperature (BHT), and WHP

data gathered during a falloff test.
66.0
150
65.5
T, 24 hours
T, 0.5 hours
100
Initial T
0
2,000
4,000
65.0
, 24 hours
6,000
8,000
64.5
64.0
10,000
Well Depth (ft)

Fig. 3Time-dependent temperature gradient affects
wellbore-fluid density. T=temperature, r=density.
numerical derivative provides a clearer

picture of the breakdown pressure and
is, therefore,recommended.
Another interesting observation
emerges when the same modified-Hallmethod data are graphed on the log-log
plot. The expected half-slope response
emerges after the fracture breakdown occurs but over a very short time span. The
earlier unit-slope line suggests that the
wellbore was being loaded with the injection water, which may be construed as
wellbore storage, used in the context of
transient-pressure testing.
The authors note that the degree of
separation between the derivative of the
Hall-integral curve and the Hall-integral
curve is a measure of fracture conductivity in conventional formations. However, such separation cannot provide
clues about the pressure behavior during the shut-in period. In fact, analysis
of injection data of several wells from
reservoirs of diverse geomechanical and
fluid-efficiency considerations suggested
110
1,000
Density (lbm/ft3)
T (F)
200
50
75
Time (hours)
25
100
Fig. 2Good agreement between the model and

temperature data.
66.5
, 0.5 hours
50
180
50
100
Shut-in Time (hours)
250
Data
Model
190
170
Pressure Derivative (psi)
BHT (F)
8,000
230
BHT (F)
WHP, BHP (psig)
10,000
-slope
After-Closure
Linear Flow
-slope
Preclosure
Linear Flow
100
-slope
Radial Flow
WHP
Fracture-Closure Time=13 hours

Closure Pressure=8,485 psig
10
WHP
1
0
10
100
Shut-in Time (hours)
1,000
Fig. 4Estimating fracture-closure pressure and time.
that the short-duration linear flow followed by the unit-slope response is the
norm. The authors speculate that the
dominance of the late-time unit-slope response, preceded by the half-slope signature, suggests that the fluid has not had
time to diffuse into the formation given
the high-rate injection over a short time
span in a very tight formation.
Discussion
The transient-temperature model and
the computational approach presented in the complete paper are primarily intended for the falloff test run in
any DFIT in an unconventional setting
to account for large changes in fluid
temperature at early times. As expected, the early-time injection data for the
modified Hall formulation also require
the linear-flow treatment in micro- and
nanodarcyformations.
Questions arise when downhole
pressure measurements become a necessity to avoid any uncertainty arising
from the potential transient-temperature

issue. Using Fig. 4 as a guide, one can surmise that, if the fracture closure occurs
within the first log cycle (110 hours) or
earlier, one needs to consider running
a downhole gauge. Otherwise, wellhead
measurements suffice. To that end, this
study provides practical guidelines on
pressure measurements.
Although the conventional modifiedHall-method plot diagnoses the fracturebreakdown pressure quite well, graphing the same data on a log-log plot is
even more illuminating because it clearly delineates both the early-time unitslope and the late-time half-slope responses. The half-slope response is in
accord with linear flow. However, the
derivative of the modified Hall formulation on a log-log plot suggests that the
half-slope period is short-lived. The subsequent development of the unit-slope
response is speculative in that it may
be associated with fluid storage within
thefracture. JPT
JPT FEBRUARY 2015
Creating Value With Permanent Downhole

Gauges in Tight Gas Appraisal Wells
ownhole instrumentation of the

Khazzan tight gas appraisal wells
provides a rare opportunity to quantify
reservoir pressure and temperature
dynamics. Several appraisal wells
were tested initially for 34 weeks and
subsequently shut in for approximately
1 year. The continuous downhole-gauge
recordings of the resulting pressure
buildups were then analyzed to
quantify understanding of stimulation
effectiveness, reservoir quality away
from the wellbore, total producible
connected gas, geomechanics, and
wellbore hydraulics. This paper
examines the pressure-transient
analysis (PTA) of one representative
well in thefield.
Value of Permanent Downhole

Gauges in Tight Gas
Dual permanent downhole gauges
(PDHGs) were spaced approximately
100 m apart in the upper-completion
design, close to the perforations, to fulfill various surveillance requirements
and provide the ability to measure gradients in the wellbore in real time. The
completion could be tested with PDHGs
and surface gauges. A considerable effort was made to ensure that the completions could withstand multiple highpressure fracture-stimulation jobs. This
included installing polished-bore packers and special-thickness tubulars. Preplanning of fracture designs using a
variety of friction factors and likely fracture gradients was performed to narrow
options and design the completions.
Monobore completions were planned to

enable running various plugs to isolate
the pay intervals as required and to ease
the running of logs, tools, and coiled
tubing into the wellbore. The size of the
completions was optimized for fracturing, not for fluid flow.
Monitoring Hydraulic-Fracturing-Job
Performance. PDHGs have proved to be
of considerable value in real-time monitoring of downhole treating pressure
in stimulation jobs. For example, early
detection of screenout events (before
any indication of pressure problems was
identified on the surface) has been demonstrated. In one case, a job was altered
while pumping and proppant injection
was halted before the wellbore actually
screened out (Fig. 1). The surface pressure data did not reveal the pending
screenout. Only a very small amount of
proppant remained in the wellbore after
halting pumping operations.
Monitoring Well-Cleanup Performance. The main objectives of the various well tests are to determine the initial
flow rate after fracturing the reservoir,
to evaluate the efficiency of the fracture job quickly, to obtain pressure/
volume/temperature (PVT) fluid samples
for full-field development planning, and
to clean up the well to enable the flow to
be placed into the extended-well-testing
facility, which has limited fluid-handling
capacity. A critical piece of surveillance
technology has been the installation
of two permanent downhole pressure/
temperature gauges. One of the more
This article, written by Special Publications Editor Adam Wilson, contains highlights
of paper SPE 164039, Creating Value Through Permanent Downhole Gauges in Oman
Block A Tight Gas Appraisal, by Badar Al Busafi, SPE, Robert A. Clark Jr., SPE, and
Imtiaz Adil, SPE, BP, prepared for the 2013 SPE Middle East Unconventional Gas
Conference and Exhibition, Muscat, Oman, 2830 January. The paper has not been
peer reviewed.
valuable pieces of data is analysis of the

pressure gradient between the gauges.
The information from the gauges helps to
optimize the fracture job and well cleanup. A typical flow test would be that following the Well-B Barik fracture job. This
well was opened to flow on a small choke
immediately after fracture closure. The
wellbore fluid, with entrained bauxite,
was produced through a pair of cyclone
sand separators until the flow was clean
enough to pass through a test separator.
The choke was opened further to increase
the gas-flow rate and lift fracturing water
out of the wellbore. However, as the well
was placed on a new choke size, the flow
was diverted to the separator, resulting in
loss of flowing test data.
To determine the maximum deliverability of the well, the choke was opened
progressively, checking for sand production, until a 1-in. choke was achieved.
Flow was again diverted to the separator. Gas and fluid samples were taken,
and the well was shut in for a short pressure survey. Because a pair of permanent
downhole gauges are part of the completion, estimates of permeability-thickness
product, skin, bottomhole pressure, and
other parameters were obtained quickly. The well was opened for a longer test
period with a multirate-flow test being
used to evaluate a likely stabilized flow
rate. Further PVT sampling was conducted at the various rates to see if there was
any rate dependency on condensate/gas
ratio and to evaluate longer-term flow
for evaluation of the fracture job and
possible futuredeliverability.
Analyzing Long-Term Pressure Buildups. It is unusual for an operator to
shut in a well for more than a year while
monitoring bottomhole pressure and
temperature. The opportunity to obtain
such long-term shut-in data in this tight
gas block is almost unique. Operators
typically cannot shut in a tight gas well
112
JPT FEBRUARY 2015
Certified Performance
Without The Wait
150
200
250
Slurry Concentration (lbm/gal)
16.0
12.0
8.0
4.0
0.0
Slurry Rate (bbl/min)
40.0
30.0
100
10.0
20.0
50
0.0
20,000
15,000
5,000
0
Treating Pressure (psi)
10,000
Bottomhole Pressure (psi)
PDHG indicates imminent screenout

changed proppant schedule, called flush
avoided burst tubing, cut RA tracer
still maximized sand volume
300
Time (minutes)
Fig. 1Example of a typical fracture-treatment surveillance illustrating a screenout being prevented by timely shutdown.
long enough to observe pseudoradial

flow on well tests because of commercial constraints, particularly in view of
the low flow rates and rapid production
declines exhibited by such reservoirs.
Critical objectives of PTA are reservoir permeability, reservoir pressure, boundaries, faults, layering/dual
porosity, fracture-stimulation performance (skin), fracture length, and fracture conductivity. These objectives also
apply in tight gas reservoirs and appraisal projects, but the value tends to
be more important because of narrow
economicmargins.
The use of PDHGs has proved valuable in providing information about
connectivity over an area exceeding
20 km2 around the wellbore. PTA of
pressure-buildup (PBU) data obtained
during 300 days of shut-in has demonstrated that the fracture-stimulation
jobs have been highly effective.
PTA illustrates that a long period of
PBU was required to reach pseudoradial
flow. The time required to reach pseudoradial flow depends on the matrix per-
114
meability, with tight gas reservoirs often

never achieving this condition because
of the long times needed.
Reducing Uncertainties in PTA. Installation of PDHGs has played a critical role
in reducing uncertainties in PTA for tight
gas tests. Permeability in some polygons of the block considered here can
be as low as 0.05 md. Because the sampling points (a result of well spacing) are
very sparse during appraisal, there is a
very high chance that the 2800-km2 appraised area is not a simple tank, with
the chance that there are subseismic isolated blocks. Therefore, initial pressure
in each test has to be confirmed by the
well test itself and not rely entirely on a
well 510 km away.
The test of Well-A provides a classic
example on the range of uncertainty that
can be related to the duration of data collected from PDHGs. Ultimately, this well
was tested with a PBU duration greater
than 1 year. If wireline gauges were used
instead, the duration of data would rely
on many factors, such as gauge stor-
age capacity (which is also related to

sampling frequency), the requirement
for removing wellbore obstructions to
subsequent operations, the temperature
limitation of the gauges, and the timing at which the data are required to
beanalyzed.
Bottomhole-Pressure (BHP) vs.
Tubinghead-Pressure (THP) Interpretations. It is very common in the
oil industry to use THP data to derive
BHP if this latter set is absent. This is
usually done to save cost because THP
is much less costly to acquire than BHP.
Such practice is problematical, especially in complicated wellbores and with
multiphase flow. For simplicity, BHP is
derived with a single gradient to the
desired depth. This can be approximately correct in single-phase flow with a
known gradient.
Well-B illustrates the risk in interpretations that can result from such
practice. This well has been tested for a
long time, and the gradient is very constant. If BHP data from this well were
JPT FEBRUARY 2015
absent, it would be derived with the

readily available THP data. The THP
derivatives are very noisy compared to
BHP derivatives. Such noise may not be
observed in the pressure data. Interpretations using THP data show different
features in derivatives (e.g., a boundary)
that BHP data did not show. It is vital to
think about the consequences of such
interpretations during field appraisal
and development.
Recommendations
Decisions related to the

installation of PDHGs should
be made early in the appraisal
stage. PDHGs have proved
to be useful in a surprisingly
wide variety of surveillance
applications.
It is recommended to use
different vendors offering
different types of gauges to
testtheir performance in
the early stage of appraisal.
Such early tests help vendors
refine their suggestions if a
decision is taken to use PDHGs
in somewells for full-field

development.
Installation of dual PDHGs in
completion designs must be
planned carefully to decide
how far apart the PDHGs
should be and how close to
the perforations these gauges
should be. Separating the
gauges by 100200 m is ideal
for measuring intrawellbore
gradients that will help
during the well-fracturing and
-cleaning processes. The gauges
proximity to the perforated
area is a function of the gauges
temperature limitations.
Duration of cleanup and PBU
must be planned carefully
to maximize the value of the
data. Limited data in tight
gas environments can be
costly. Experience shows that
hydraulically fractured wells in
a 1- to 0.06-md environment
require 34 weeks of cleanup
and 618 months of PBU
data. The gradient between
gauges can be used to assess

how cleanthe flow is before
shuttingin thewell. Enough
volume must beextracted
to maximize the radius of
investigation. The effect of PBU
duration on PTA can be largely
reduced if the initial pressure is
constrained.
Not every well in a full-field
development must have PDHGs.
Early appraisal data can be
used to build a comprehensive
database to facilitate THP-toBHP conversion. Such data must
be a function of condensate/gas
ratio, water/gas ratio, and flow
rates.
THP data cannot always
substitute for BHP data.
This paper demonstrated
that completely different
interpretations can result from
THP and BHP data. It is critical
to think about the consequences
of such interpretations during
the appraisal and development
phases. JPT
Extrusion Process Engineer

Seeking Faculty Applications
The Petroleum Engineering Program in the Chemical and Biomolecular
Engineering Department at the University of Houston invites applications for
two tenured/tenure-track faculty positions. We are seeking faculty candidates
with superior skills for effective teaching and pioneering research. The
successful candidates will lead an externally funded research program, mentor
graduate and undergraduate research, teach petroleum engineering courses, and
serve UH, the Houston community, and the petroleum engineering profession.
Application is open for candidates with any petroleum engineering research
interest. Special needs of the program include: drilling and well completions;
production engineering; and applications of novel technologies in petroleum
recovery and production operations, especially in deep water or for ultra-low
permeability reservoirs.
Appointment to our faculty requires a Ph.D. in Engineering, Physical Sciences
or a related field. Candidates at the Professor level must have demonstrated
records of scholarship.
You will need to provide your Curriculum Vitae, a detailed description of
research interests (not to exceed 10 pages), a teaching philosophy statement (2
pages), and the names and email addresses of three references whom we may
contact.
Applications should be submitted online via the following links:
1. Assistant/Associate/Full Professor: apply at
http://jobs.uh.edu/postings/23170
2. Assistant Professor: apply at http://jobs.uh.edu/postings/23160
Please direct inquiries for additional information to Thomas K. Holley, Ph.D.,
Director of the Petroleum Engineering Program, at tkholley@.uh.edu
The University of Houston is an Equal Opportunity/Affirmative Action employer.
Minorities, women, veterans, and persons with disabilities are encouraged to apply.
JPT FEBRUARY 2015
Crafted Plastics, Inc, located in Sheboygan WI is seeking

an Engineer with strong background in extrusion
processing & plastic profile extrusion tooling design.
Primary responsibilities will include design and tuning of
profile extrusion tooling including extrusion dies,
calibration tooling and other required downstream tooling
and fixturing. Engineer must be resourceful, familiar with
wide variety of materials, be able to solve complex
processing problems and communicate solutions; will also
perform general managing tasks and communicate with
customers; and manage multiple projects simultaneously.
Requirements: BS/MS degree in Mechanical Engineering
or related disciple from accredited university, would
consider 4+ years of profile extrusion tooling design and
tuning experience in lieu of degree. Exp. & courses related
to plastics extrusion tooling design, extrusion processing
and mechanics of materials. Strong computer aptitude
with working knowledge of CAD and Office software,
experience with flow simulation software a plus. Excellent
verbal and written communication skills and able to work
within a small company in a dynamic team environment.
Must be willing to submit to a background check as part of
the selection process.
Submit resume, salary and plastic related work history
via email: applicant@crafted.com
No phone calls please
115
Tactics for Use of Diagnostic Fracture

Injection Tests in Unconventional Reservoirs
o achieve optimal production from

unconventional reservoirs, it is
useful to determine the permeability,
pore pressure, and state of stress of
rock strata. An effective way to derive
this information is to conduct in-situ
pressure-transient tests. Because
injecting fluid into or withdrawing
fluid from the pore network of tight
rock is difficult, diagnostic fracture
injection tests (DFITs) have been used
to create an analyzable pressure-decline
response and to derive the minimum
horizontal stress through fractureclosureidentification.
Breakdown
pressure
Stop
injection
3
4
Pressure
Injection
rate
Fracture
Pseudolinear flow
1
5
Fracture closure pressure
Well testing is the technique of establishing fluid flow in the reservoir by e ither
producing from or injecting into a well
and then changing or terminating the
flow rate to create a transient event, usually by shutting in the well at the surface. The resulting wellbore-pressure
response is then evaluated to derive reservoir properties, such as transmissibility and initial reservoir pressure.
Creating a hydraulic fracture bypasses wellbore damage and near-
wellbore stress concentrations and connects the wellbore to a significant portion
of the reservoir-layer thickness, enabling
a representative investigation of reservoir properties.
A typical DFIT sequence is shown
in Fig. 1.
Initially, the well is filled with water,
with care taken to purge the fluid column
of entrained air and gas.
Well
Pseudoradial flow
6
Instantaneous
shut-in pressure
Time
Introduction
Fracture
Shut-in Period
Fig. 1Typical DFIT pressure response.
A surface pump establishes an

injection rate with water, and
the wellbore fluid is compressed.
The time of compression is a
function of wellbore volume,
injection rate, and breakdown
pressure. In low-permeability
reservoirs, little if any of the
injected fluid flows into the
reservoir during this time.
Eventually, formationbreakdown, or breakover,
pressure is reached, signifying
that a hydraulic fracture is being
propagated into the reservoir
rock.
Water injection at the surface
is continued until wellhead
pressure stabilizes.
Then, surface injection is
stopped, resulting in an
This article, written by Special Publications Editor Adam Wilson, contains

highlights of paper SPE 163863, Diagnostic-Fracture-Injection-Testing Tactics
in Unconventional Reservoirs, by D.D. Cramer, SPE, and D.H. Nguyen, SPE,
ConocoPhillips, prepared for the 2013 SPE Hydraulic Fracturing Technology
Conference, The Woodlands, Texas, USA, 46 February. The paper has not been peer
reviewed.
instantaneous shut-in pressure,

which is the net of wellbore and
near-wellbore friction pressures,
from which net pressure at shutin can eventually be determined.
The shut-in well pressure is then
monitored for signs of fracture
closure.
The after-closure period is
evaluated for pseudolinear- and
pseudoradial-flow signatures.
Radial-flow solution methods are
used to derive transmissibility
and initial reservoir pressure.
Linear flow also can be evaluated
for reservoir pressure.
Test Planning and Strategies
Selecting Injection Rates and Volumes. For DFITs in low-permeability

rock, minimizing fracture length is important to shorten the time to fracture
closure and then to pseudoradial flow,
the flow regime required to derive transmissibility and pore pressure.
Tactic. Minimizing the injection
volume and rate will hasten fracture closure, reduce fracture length, and minimize residual fracture width at the onset
116
JPT FEBRUARY 2015
of closure, also speeding the arrival of

pseudoradial flow.
Shut-In Methods for Hastening Fracture Closure and Radial-Flow-Regime
Development. The two primary shutin techniques are surface shut-in and
downhole shut-in.
With surface shut-in, the wellhead
is isolated by closing the valve connecting it to the injection-pump lines; the
entire wellbore volume is in communication with the perforations and formation. There are two methods to collect
data: either through a surface/wellhead
gauge or through a downhole (typically
wireline-conveyed) gauge. The surfacegauge data will be valid only if pressure at the top of the wellhead or wireline lubricator (if applicable) is greater
than zero. If the reservoir is subpressured, meaning that the pore pressure
is less than the fluid pressure exerted
by the wellbore hydrostatic column, the
use of a surface gauge will be limited.
Eventually the wellhead pressure will
reduce to zero; in this case, a downhole
gauge is useful in obtaining accurate
bottomhole-pressure information.
For downhole shut-in, the well is
isolated downhole with a bridge plug
or other device. In comparing the two
shut-in methods, the downhole shut-in
will have a smaller wellbore volume than
the surface shut-in. With subpressured
reservoirs, downhole is the preferred
shut-in method. As long as the downhole shut-in device is placed at a depth
where the hydrostatic head is less than
the reservoir pressure, then the only
pressure-falloff mechanism will be depressurization, resulting in a much
smaller wellbore-storage coefficient
and afterflow contribution. The smaller
the wellbore volume, the more rapidly
depressurization will occur.
Tactic. Downhole shut-in is advantageous for all reservoirs. It is often a requirement in applications with subpressured reservoirs.
Vertical vs. Horizontal Wells. For
many unconventional plays, reservoir
development is based on multistagefracture-stimulated horizontal wells.
This presents an opportunity to perform a DFIT on the first-stage perforations/ports before fracture stimulation.
JPT FEBRUARY 2015
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It is possible to acquire additional information on the reservoir from these

horizontal-well DFITs; however, they
must be set up properly to acquire useful

data results. In addition, there are advantages to planning vertical-well DFITs
in these same reservoirs.
The following are horizontal-well
considerations:
Usually, there is a limitation
ofone test interval per well.
There is little to no control in
lithology selection.
With multiple perforation
clusters, questions arise on the
variability of the lithologies
being tested and number of
fractures being propagated. It is
beneficial to conduct the DFIT
through a single perforation
cluster.
There is test-height uncertainty
because of the inability to
measure fracture-height growth.
Fracture-plane orientation is
uncertain.
DFITs in horizontal wells are
prone to complex hydraulicfracture initiation, with
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118
longitudinal and transverse

components. Consequently, the
pressure-falloff response can
becomplicated.
Maintaining an overbalance
pressure during the time
between perforating and
conducting the DFIT may
bedifficult.
Using pressure-activated toe
valves can facilitate the DFIT.
Annular isolation may be
lacking, sometimes by design
(e.g., openhole completions
withsleeves).
In openhole/sleeve applications,
DFIT results are generally
improved by restricting the
potential flow area in the
annulus. This is achieved
by installing and activating
openhole packers on each side
and within several feet of the
sleeve ports.
The following are vertical-well
considerations:
Multiple potential pay targets
can be evaluated to compare
stress and permeability
characteristics.
Specific layers/lithologies can
betargeted.
Bounding rock layers can be
evaluated to assess fractureheight-growth potential
throughout the gross interval.
Fracture geometry is less
complex and more certain
compared with that of
horizontal wells, with a lengthier
wellbore-to-primary-fracture
connection and less nearwellbore flow-path tortuosity.
Fracture-height determination
ispossible, though difficult.
Tactic. For horizontal-well DFITs,
understand and plan to deal with the issues. Do not limit well selection to horizontal wells only. The significant advantages of DFITs in vertical wells mean they
should be considered as part of the wellplanning and data-collectionprocess.
Multiple-Interval Projects. In vertical
wells, multiple intervals can be tested to evaluate a variety of pay zones
and the overburden/underburden.

The DFITs can be conducted in series
orsimultaneously.
Tactic. Multi-interval tests with retrievable bridge plugs significantly reduce the time required for acquiring
results from multiple low-permeability
intervals that require long shut-in times
for achieving pseudoradial flow and
sometimes even fracture closure.
Understanding Test Height. The
height of the test interval is often uncertain. The following are methods to obtain a better understanding of the thickness of the interval under investigation.
Fracture Modeling. Fracture modeling can be used to estimate fractureheight growth and as an aid in selecting
test height for improved characterization of reservoir permeability.
Radioactive Tracers. Adding radioactive tracers to the DFIT injection water, and then performing a
gamma ray spectroscopy survey by use
of slickline or wireline at the conclusion of the testing, has been used to estimate test height and confirm fracturemodelingresults.
Temperature Surveys. Temperature surveys performed in conjunction
with DFITs can be useful for estimating test height and confirming fracturemodeling results.
Hydraulic-Fracture Modeling
Hydraulic-fracture modeling is applied

primarily in planning and optimizing
large-scale hydraulic-fracture treatments. It is rarely considered as an aid
in designing small-scale injection treatments such as DFITs. However, this philosophy has changed recently. Because
DFIT results have had an effect on welldevelopment planning in several unconventional plays, hydraulic-fracture modeling of the DFIT process is now being
used to provide insight into fracturepropagation characteristics of reservoir,
overburden, and underburden intervals
before, during, and after testexecution.
Hydraulic-fracture modeling first
starts with the evaluation of openhole and cased-hole logs. Analyzing
log data will lead to characterization of
rock properties and fluid saturations
of the reservoir and bounding lithologic intervals, leading to the develop-
JPT FEBRUARY 2015
ment of a geologic/stress model for the

hydraulic-fracturemodel.
When the formations of interest are
identified, then preliminary perforation
height, injection rate, and injection volumes can be selected.
Procedure/Execution
There are operational considerations to

address to ensure that the well is properly set up and conditioned for a DFIT.
Evaluating Cement-Bond Quality.
Final perforation location should be
contingent on cement-bond quality. It
will be necessary to plan for alternative
perforation intervals as a contingency in
case the selected interval does not have
adequate cement-bond quality.
Preparation for Low Ambient Temperature. Frigid weather can result in ice
in wellhead and injection lines and inaccurate surface-pressure-gaugereadings.
Well Circulation. Before the DFIT, it is
common for the well to be circulated
with water as part of hole-cleanout and
well-conditioning operations. In these
cases, it is best to wait at least 24 hours
before starting DFIT injection to ensure
that temperatures in the well return to
the geothermal gradient.
Air/Gas Purging. All air or gas needs to
be purged to ensure that the wellbore
and peripherals, such as the wireline
lubricator, are completely filled with
water/test liquid.
Pressure Testing. Generally, the pressure test for the maximum operating
pressure for the wellbore and wellhead
doubles for the pressure test of the DFIT.
It is advisable to conduct a second pressure test at a reduced pressure, if applicable, for evaluation of the rate of pressure falloff at the expected DFIT shut-in
pressure condition.
Wellhead Management. For DFITs,
separate pressure gauges are used for
the wellhead and the injection pump.
Both data sets should be available in
JPT FEBRUARY 2015
order to evaluate the validity of the

testdata.
Overbalanced Perforating. Overbalanced perforating is recommended for
preventing gas influx into the wellbore
before the DFIT injection.
Dynamic Downhole Shut-In. A best
practice usually is to shut in the well
dynamically to avoid changing the
wellbore-storage coefficient during the
shut-in period.
DFIT Termination, Surface Shut-In.
After shutting in the well for the required time, each surface shut-in test
should be concluded with a short bleedback of wellbore fluid to check the fluid
content and check for the presence of
gas at the top of the wellhead.
Spotting Hydrochloric Acid To Facilitate Breakdown. Occasionally, the
maximum allowable surface pressure is
reached during DFIT injection without
achieving breakdown and a stable injection rate. Hydrochloric acid is effective
in lowering breakdown pressure.
Conclusion
The guiding principles for implementing DFIT tactics are

Understanding the fundamentals
of project planning
Understanding the fundamentals
of test concepts
Having available the necessary
reference points/data
Preparing and executing with
attention to detail
Organizing data and recognizing
patterns/anomalies through
multiple tests
Letting the data lead the analysis
With continued tests and analysis,
the data may corroborate past findings
or put into question prior conclusions.
With an open mind, DFIT tactics in unconventional reservoirs can be open
to revision and modification; thus, understanding of various phenomena and
anomalies continues to be refined. JPT
TECHNOLOGY
Niall Fleming,
SPE, is the leading
adviser for well
productivity and
stimulation with
Statoil in Bergen,
Norway. He has
previously worked as a production
geologist, chemist, and engineer.
Flemings main interest is within the
area of formation damage from drilling
and completion fluids and from wells
in production. He holds a PhD degree
in geology from Imperial College
London. Fleming has authored several
SPE papers, is an associate editor for
SPE Production & Operations, serves
on the JPT Editorial Committee, and
has been a member of the organizing
committees for several SPE conferences
and workshops.

SPE 165092 Case-Study Analysis of
Formation Damage Induced by Brine
Workover Fluid on Burcioaia Reservoir
(Romania) and Research on DamageRemoval Methods by A. Dragomir,
OMV Petrom, et al.
SPE 165169 Formation Damage and the
Importance of a Rigorous Diagnostic:
A Case History in Nigerian Deep Water
byJean-Nol Furgier, Total, et al.
SPE 169435 Integrated Analysis
ToIdentify and Prevent Formation
Damage Caused by Completion Brines:
AColombian Field Application
by M.G. Jaimes, Ecopetrol, et al.
120
formation damage
Brant Bennion, in the Journal of Canadian Petroleum Technology Distinguished
Authors series, titled his 1999 article on formation damage The Impairment of the
Invisible by the Inevitable and Uncontrollable, Resulting in an Indeterminate Reduction in the Unquantifiable. This is a brilliant definition of formation damage because
it reflects very well the lack of relevant data (in particular, permeability data) that
are essential for adequate design of drilling and completion fluids. In addition, the
opening sentence in Bennions article is as relevant today as it was in 1999: Formation damage is a hot topic these dayswith justifiable reason as we move to the
exploitation of more challenging oil and gas reservoirs in tighter, deeper, and more
depletedconditions.
In order to avoid some of the detrimental effects of formation damage, a key
aspect is laboratory testing of representative core material under representative
downhole conditions. Thin sections, dry scanning electron microscopy (SEM), cryogenic SEM, and X-ray diffraction have been used for a number of years to identify
the main damage mechanisms, mechanical or liquid, contributing to the observed
returned permeability measurement from coreflooding. High-resolution images can
be obtained from dry and cryogenic SEM, but they offer only a limited view at any one
time. One technique that has been applied recently to identify and quantify potential
formation damage is that of microcomputed tomography (CT). This provides highresolution scans of whole plugs and allows, for example, the identification of changes
in pore structure because of fines mobilization, and the visualization of the filter cake
after cleanup, depth of mud solids, and filtrate invasion. The combination of microCT with techniques previously used for formation-damage analysis is providing new
understandings in the interaction of drilling and completion fluids with core material.
One of the more frustrating aspects of coreflooding has been how to relate the
results obtained to potential well-inflow performance. Computational fluid dynamics
is one technique that appears to have bridged this gap. This technique incorporates
the data obtained from coreflooding into a model that recreates the actual well geometry, depth of formation damage, mud thickness, and distribution of restrictions in
the tubing, such as safety valves. With this approach, production rates can be obtained
that provide useful insights into selecting appropriate drilling and completion fluids,
for example.
Enjoy the papers selected. Formation damage is still a hot topic.JPT
JPT FEBRUARY 2015
Improving the Interpretation

of Formation-Damage Laboratory Tests
he paper presents a new approach

that uses X-ray-microcomputedtomography (micro-CT) scanning
to produce high-resolution data of
entire core samples. The images of
core produced are superior to those
produced by commonly used medical
scanners and give insight into core
properties as well as issues such as
drilling-mud-constituent infiltration,
mudcake structure and thickness, and
alterations in the pore network. Through
a technique that the authors refer to as
difference mapping, data sets captured
before and after laboratory testing are
compared to reveal the distribution of
changes within samples.
Introduction
Formation-damage laboratory studies

aid in risk reduction when making important well-design decisions, so reducing uncertainty surrounding test results
is an important effort.
The major areas in which laboratory testing can be influenced to provide the most meaningful (and therefore more valuable) information include
thefollowing:
Performing tests at reservoir
conditions of temperature
and pressure by use of
reservoir overbalance and
underbalance pressures and
real/representative fluids and
exposure periods
Ensuring that the equipment and
procedures used have minimal
or no effect on the results of

testing
Understanding test results
through interpretive analysis
toput laboratory-test results
into a field context
For a discussion of current techniques used to aid in core-sample interpretation, such as scanning electron microscopy (SEM), thin-section
analysis, X-ray diffraction (XRD), and
computed-tomography scanning, please
see the complete paper.
Micro-CT Scanning
Micro-CT scanning uses a class of scanner that can rapidly capture a series of
scans at high resolution; these scans can
be reconstructed with software to create
a 3D model of the object scanned. Resolution of significantly less than 1 m can
be achieved on smaller subsamples, reducing as the sample size and length increases. The time taken to capture a data
set also decreases as the resolution lowers, so the selection of operational settings is a balance of resolution vs. sampling times and data-set sizes. For scans
of intact core samples, a maximum resolution of 1015 m is achievable after
taking into account sample size and sampling time.
While micro-CT scanning provides
high resolution, to analyze entire core
samples nondestructively it does not
approach the resolution seen in thin-
section analysis or SEM. Although offering a higher resolution, these techniques
of paper SPE 165110, Use of Micro-CT-Scanning Visualizations To Improve
Interpretation of Formation-Damage Laboratory Tests Including a Case Study
From the South Morecambe Field, by Justin Green, Ruaridh Cameron, and Ian
Patey, Corex, and Vishal Nagassar and Mark Quine, Centrica, prepared for the
2013 SPE European Formation Damage Conference and Exhibition, Noordwijk, The
Netherlands, 57 June. The paper has not been peer reviewed.
require a representative untested sample

to be used as a base for comparison with
the post-test sample. Various fragments
of the tested sample are then analyzed
and compared with the untested sample. This approach has been highly successful, but two main limitations must
berecognized:
Experienced analysts and
databases of sample imagery
allow reliable interpretations
to be made, but when subtle
or scattered changes are seen,
there can be differences of
opinion on the significance
ofmechanisms.
To perform the analysis in
a timely and cost-effective
manner, a limited volume of
the core sample (typically
less than 5%) is selected to
undergo analysis. If damaging
mechanisms are distributed
unevenly, there is clearly an
element of chance introduced in
terms of whether all damaging
mechanisms are captured
duringsubsampling.
Difference-Mapping Technique
Micro-CT scanning, in combination with

software manipulation of the data sets,
offers an alternative approach. While individual slices do not offer the resolution
of SEM or thin-section analysis as previously mentioned, the data set as a whole
captures a huge amount of information
on the nature (density) of the sample.
If all the data captured before and after
testing can be compared directly, then it
should be possible to visualize the differences between the data sets, both in 2D
planes and in 3D space. This visualization has been achieved by the difference-
mapping technique. In simple terms,
data are captured before the sample undergoes testing (before=B) and then
again after a test sequence (after=A).
JPT FEBRUARY 2015
121
Unchanged
=
Changed
Fig. 1Example of the difference-mapping technique applied to a 2D 55 grid.
Fig. 2Example of the difference-mapping technique applied to a tested core

sample. The post-test image (A) shows a mudcake attached at the top, which
is not present in the pretest image (B). Image B is subtracted from Image A,
leaving behind the change (C).
The data are then loaded into modeling

software, which, after alignment of the
two data sets, compares each point and
determines the difference: A-B=change
(C). Fig. 1 gives a binary example of this
technique: the left-hand image is the endpoint (A), the middle image shows the
start point (B), and the right-hand image
shows the result of difference mapping in
terms of changed and unchanged (C). On
this 2D plane, the differences between
the two images can be seen clearly in a
visual and unambiguous format. It is also
worth noting that the technique removes
the variable of the analyst. In the simple
images of Fig. 1, the human eye might
tend to exaggerate differences; for example, the top end and the bottom-left
quadrant of the after image could seem
more different than they actually are.
The simple example in Fig. 1 has
only 25 points to compare, but each slice
122
of micro-CT-scan data has tens of thousands of points, which means that to examine an entire core sample in three dimensions, there will be many millions,
and potentially billions, to compare. The
visualization of differences within coresample data sets will therefore be more
complex and will require powerful computers and software to produce good
data in a reasonable time. Fig. 2 shows
an example of real data and the result of
mapping the differences. Again, the lefthand image is data captured after the
test sequence, the middle image is the
same area of the sample before testing,
and the right-hand image is the map of
the differences between the two. Here,
those points that are the same are in
black, with a grayscale showing intensity
of difference. Here, the greatest change
is where the mudcake has developed,
in the first 12 mm into the core sam-
ple; deeper in, there are scattered areas

ofdifference.
Micro-CT scanning in combination with software can therefore be used
to visualize changes in the samples following a test sequence. The 2D difference maps are a useful way of visualizing snapshots of differences at different
points: essentially thin sections of the
samples at lower resolution but with
vastly improved qualification of change.
The difference-mapping technique becomes most powerful, however, when
the differences are viewed in three dimensions rather than as a series of 2D
slices. The difference maps provide a
qualitative and visual indication of the
changes within core samples, but, because of the nature of the technique, do
not identify what has caused the changes. Micro-CT-scanning data provide
the distribution of mechanisms without the resolution or ability to visualize
specific mechanisms, while techniques
such as SEM provide the resolution and
means to visualize what has caused
the changes. Currently used techniques
and the difference-mapping technique
can therefore be used to complement
each other.
Case Study: Morecambe Bay

For an upcoming well in the south Morecambe offshore gas field in the east
Irish Sea, testing was required to look at
drilling-related damage. The well would
implement a cased-and-perforated completion, so the drilling mud was to be designed to control both fluid and solid infiltration, to avoid deeper invasion and
damage. Understanding the distribution
of damaging mechanisms was therefore
of great interest, and the study was an
ideal opportunity to use micro-CT scanning to augment the coreflood-test data
and geological techniques that could not
answer these questions fully. An additional aim was to use the laboratory-test
information to understand field responses. In the well, an openhole drillstem test (DST) would be carried out,
so the operator wanted to use the information to subjectively calibrate in terms
of the amount of near-wellbore damage that would be likely with the chosen
drilling-mud system and evaluate the
impact of near-wellbore damage on rate
and the interpretation of that DST.
JPT FEBRUARY 2015
Microseismic_Monitoring-JPT-Interim-Press Ready-righthand X-1A.pdf
1/8/15
10:21 AM
(a)
(b)
100X
200 m
(c)
(d)
500X
50 m
500X
50 m
Fig. 3Further interpretive information gathered from currently used

techniques. Incomplete cleanup of the mudcake is seen in (a); shallow depth
of invasion in a cross section in from the wellbore face (marked as W) (b);
scattered drilling-mud constituents (c); and filtrate retention seen as an
increased saturation on grain surfaces (d).
The study used representative core

samples (cleaned and prepared to a baseline saturation) of low (approximately
8md), medium (approximately 300 md),
and high (approximately 7,000 md) permeability. After preparation, initial permeabilities were measured, and drillingmud tests were carried out by building
up a mudcake and then producing gas
and measuring additional permeabilities.
The drilling muds examined were two
candidate 10.5-lbm/gal water-based-mud
(WBM) formulations that varied in their
base brines. The first used a mixed sodium and potassium brine, with the second using a saturated sodium chloride
(NaCl) brine. Samples were loaded to
reservoir temperature and pressure in a
coreflood-test rig, and the drilling mud
was applied by flowing it dynamically
past the wellbore face of the core samples at 200-psi overbalance pressure for
48 hours. Following the dynamic application, the drilling mud was exposed to
the core at 200-psi static overbalance for
48 hours; during the dynamic- and staticapplication periods, filtrate-loss volumes
were recorded. Following drilling-mud
application, production was simulat-
Chair Petroleum Engineering Department

The Petroleum Institute (PI)
Abu Dhabi, United Arab Emirates

The Pet oleum Enginee ing Depa tment at The Pet oleum Institute invites applications/nominations fo the position of Depa tment Chai , sta ting Fall
Semeste 2015 o Sp ing semeste 2016. The Chai of Pet oleum Enginee ing se ves as the academic and administ ative leade of the Depa tment.
Conside ation will be given to only those who me it appointment at the ank of Full P ofesso and have a eco d of distinguished esea ch and
educational achievements.

The successful candidate will be expected to wo k closely with the Pet oleum Enginee ing faculty to develop a vision of the long-te m evolution of the
p og am and implement a st ategy to execute that vision. The Chai takes esponsibility fo the academic, esea ch, facilities and financial affai s of the
Depa tment; p ovides effective leade ship and di ection fo the Depa tment th ough a p ocess of sha ed gove nance; st ategic planning; management
of human, financial and physical esou ces, and supe vision of the P og ams compliance with national (UAE) and inte national (ABET) acc editation
standa ds; att acts potential candidates fo the depa tment in the ank of distinguished/full p ofesso positions; assists the Dean of the College of
Enginee ing in ensu ing the continuous g owth, development and imp ovement of the College.
Requi ed qualifications of the candidate include: (1) PhD deg ee in Pet oleum Enginee ing o closely elated field suppo ted by elevant pet oleum
enginee ing academic o indust y expe ience; (2) Excellent eco d of teaching and schola ly achievement; advanced inte pe sonal ve bal and w itten
communication skills; and (3) Demonst ated ability to lead and successfully manage p ofessionals in an academic o ganization.
The position of Depa tment Chai offe s highly competitive compensation and benefits. The total compensation package includes a tax-f ee 12-month
base sala y, and a benefits allowance that cove s elocation, housing, initial fu nishings, utilities, t anspo tation (inte est-f ee automobile pu chase
loan), health insu ance, child( en) education, end-of-se vice benefit, confe ence t avel and annual leave t avel.
Inte ested candidates should submit all mate ials online with a cove lette stating administ ative, esea ch, and teaching expe ience, a cu iculum
vitae, a detailed desc iption of esea ch and teaching inte ests, and names and contact info mation fo five efe ences. Review of applications will begin
immediately and will continue until the position is filled. The deadline fo applications is 2 March 2 15. Only sho tlisted applicants will be notified.
Kindly apply di ectly to: https://ca ee .pi.ac.ae
124
JPT FEBRUARY 2015
ed by flowing humidified nitrogen gas

at increasing differential pressures, recording flow rate, and measuring permeability at specific points. Permeability
measurements after mudcake removal
and spin down gave an indication of the
impact of the mudcake attachment and
fluid trapped within the sample.
Test results showed low filtrate-loss
volumes in all rock types, indicating that
the drilling mud was controlling losses
successfully. Very significant reductions
in permeability (greater than 80%) were
seen in all samples tested, with slight
improvements noted as the drawdown
pressure increased. After the final drawdown, permeabilities were reduced by
7090%. Removing the mudcake led to
very large improvements in permeability (1045% increase), and centrifuging
the samples removed mud filtrate and
again improved permeability significantly (1545% increase). Final permeability
measurements did not show significant
reductions in permeability, but these are
best-case measurements and the earlier data indicated that the nature of the
mudcakes after drawdown was impairing productivity significantly. The two
drilling muds gave similar results, although the pure-NaCl-based drilling mud
showed slightly lower reductions at the
final permeability stage.
Micro-CT scanning was carried out
to see the distribution of permeability
change. Two micro-CT-scan data sets
were captured per sample: the first after
the sample had been prepared to a representative baseline saturation, and the
second after final drawdown but before
any removal of the mudcake. These data
sets were aligned, and the differences between the two sets analyzed and visualized. In all samples, the differences were
seen to be concentrated in the region
very near the wellbore, with scattered
change throughout the remainder of the
sample length. The change at the wellbore faces was concentrated in the mudcake attachments and the first few pores
into the samples; significant change was
not seen more than a few millimeters into
the samples. Some variation was seen
between samples, including the thickness/nature of the remnant mudcakes
and some evidence of flow channelizing
along higher-permeability streaks within
core samples.
Be a part of the
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JPT FEBRUARY 2015
SEM, cryogenic SEM, and thin-

section analysis were performed and targeted to the areas of interest and change
in the micro-CT-scan data. They showed
that pores were blocked at the wellbore
faces because of incomplete drillingmud cleanup (Fig. 3a), shallow depth
of drilling-mud-constituent infiltration
(Fig. 3b and 3c), some fines migration,
and some retention of drilling-mud filtrate (Fig.3d).
Combining the coreflood-test data
with current interpretive techniques, and
augmenting with micro-CT scanning,
helped reach the following conclusions:
The drilling mud caused
significant reductions in
permeability.
These reductions were
concentrated (but not
solely)inthe region very
nearthe wellbore; if
perforationtunnels can
penetrate this 1- to 2-mm
zone,then the matrix is
relatively undamaged.
Base-brine selection did not
have a significant effect on
permeability. JPT
OHIO STATE UNIVERSITYS WILLIAM G. LOWRIE

DEPARTMENT OF CHEMICAL & BIOMOLECULAR
ENGINEERING invites applicants for a CLINICAL
FACULTY position to support the departments
efforts to introduce a PETROLEUM ENGINEERING
minor. Viable candidates will ideally have industrial
experience in the petroleum industry. The successful
candidate will be able to develop, maintain, and teach
courses for Chemical and Biomolecular Engineering
majors. Desired qualifcations: Ph.D. in Chemical
Engineering, a record of outstanding research
accomplishments, and a commitment to teaching
excellence. Join us in our brand new, state-of-the-art
facilities on the campus of The Ohio State University in
Columbus, Ohio, which offers a high quality of life with
affordable housing, vibrant neighborhoods, excellent
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University is an equal opportunity employer. All qualifed
applicants will receive consideration for employment
without regard to race, color, religion, sex, sexual
orientation, gender identity, national origin, disability
status, or protected veteran status. EEO/AA employer.
Please send application materials electronically to Bill
Cory, HR Manager, at cory.8@osu.edu. Please visit
https://cbe.osu.edu/ for more information. Application
deadline: June 1, 2015.
125
Modeling Formation Damage and

Completion Geometry in the Gyda Reservoir
his study concerns the mature

Gyda reservoir, where some
recent production wells have
underperformed relative to equivalent
initial wells. In particular, a sidetrack
to an early successful well had very
poor performance on initial startup.
Subsequently, the geometry of both
the original well and the sidetrack
was simulated. In the original well,
an attempted hydraulic fracture was
assumed to have failed. This assumption
was challenged in the model. The model
has enabled evaluation of old wells and,
more importantly, design of new wells
inthis mature-reservoir development.
Introduction
Gyda is a mature oil development in

the Norwegian sector of the North Sea.
The first production wells were drilled
more than 20 years ago. Some recently drilled Gyda wells have not fulfilled
production objectives. A numerical 3D
model was proposed in order to investigate and understand the flow dynamics
and the production potential from the
Gyda A19 and A19A wells. This modeling
process includes a detailed numerical 3D
fluid-flow simulator based on computational fluid dynamics (CFD), which captures the reservoir, well, and completion
geometrycomplexity.
The CFD simulations are used to determine potential explanations for the
wells performance and lead to stimulation options and development of optimum drilling and completion for future
wells. Because Well A-19 is very similar to
Well A19A, some conclusions may be derived from the present study that could
support the understanding of the productivity behavior of Well A19A.
To achieve the objective, one CFD
model of both wells was constructed. Different completion options were provided, including the case of the hydraulically
fractured well. Several sensitivity analyses were carried out in order to depict the
well potential.
CFD Modeling
CFD is the science of predicting fluid

flow, heat and mass transfer, chemical
reactions, and related phenomena by numerically solving the sets of governing
mathematical equations (i.e., conservation of mass, momentum, and energy).
Solvers used are based on the finitevolume method:
Domain is discretized into a finite
set of control volumes (cells).
General conservation (transport
equations for mass, momentum,
and energy) is solved for each of
these control volumes.
Partial-differential equations
are discretized into a system of
algebraic equations.
All algebraic equations are then
solved numerically to render the solution
field. The modeling process includes several basic phases, outlined in the following subsections.
Problem Identification and Preprocessing Phase. This phase comprises
the following steps:
of paper SPE 165113, Modeling Formation Damage and Completion Geometry in an
Old Well Enables Better Planning for New Wells: Gyda Development Case Study, by
M. Byrne, SPE, and E. Rojas, SPE, Synergy, and V.B. Holst, SPE, Talisman Energy,
prepared for the 2013 SPE European Formation Damage Conference and Exhibition,
Noordwijk, The Netherlands, 57 June. The paper has not been peer reviewed.
1. Define modeling goals.

2. Identify the domain to model.
3.Design and create the grid. Steps
for a general model creation are
listed:
(a)Geometry creation: Creation
of basic 2D or 3D models on
the basis of actual dimensions.
(b)Mesh generation: Involves
mesh setting for different
domains under consideration.
(c)Mesh-quality examination:
Ensures mesh consistency
across domains.
(d)Boundary-zone assignment:
Assigns boundary types for
domains in terms of pressure
inlet (matrix)/outlet (well) and
defines continuum in terms of
solids/fluids.
Solver-Execution Phase. The more important steps in this phase include the
following:
1.Select appropriate physical
model.
2.Define material properties:
density, viscosity, fluid/ solid,
inertial resistance coefficient,
and permeability.
3.Define boundary conditions at
all boundary-zone assignments.
Define pressure at the inlet and
outlet.
4.Provide an initial solution
(usually zero).
5.Set up solver controls:
convergence criteria.
6.Set up convergence monitors:
continuity and velocities.
7.Compute and monitor the
solution (iterations that are
required to reach a convergence
solution). Convergence is
reached when changes in
solution variables from one
interaction to the next are
negligible.
126
JPT FEBRUARY 2015
Fracture
Well
Fig. 1Full-model geometry.
8.Consider revisions of the model:

Are physical models appropriate?
Are boundary conditions correct?
Is mesh adequate?
Post-Processing Phase. In this phase,
the results are examined in order to review the solution and extract useful data.
Assumptions
In order to construct the predictive
model, several assumptions were made.
As mentioned previously, two different
wells, A19 and A19A, were simulated;
however, these wells were located very
close to each other, so only one base
CFD model was built to represent both
wells, with different completion options
included. The CFD 3D numerical models used can incorporate a level of detail that extends to the perforation-size
level (diameter and length). However,
because of the excessive number of cells
that would result, it is not possible to
generate a model that includes the entire formation thickness and all perforations. In order to evaluate the productivity of the perforation case, two small
models (1-ft thickness) were constructed to determine a productivity ratio between the well completed as an open
hole and the well completed as cased
and perforated.
The entire model (total net sand)
was built as an open hole consisting of
an undamaged reservoir zone, the well,
JPT FEBRUARY 2015
layers that represent the permeability

variability (whose thickness and permeability were taken from the Well A19
completion report), and a damaged zone
(Fig.1). The ratio representing the damage induced by the perforations was included. A hydraulic fracture was included, and sensitivity to the fracture size and
position was evaluated.
The reservoir data input used to
build the CFD model, and the assumptions made for the hydraulic-fracture
geometry and conductivity, are provided

in Tables 1 and 2 of the complete paper.
Results
Several sensitivity analyses were run in
order to evaluate real-well performance.
The sensitivities included scenarios with
and without fractures and the crushed
zone around the perforation, as well as
different drawdown conditions. Table 1
depicts the results of the sensitivities
for the different cases evaluated, while
Cases
Rate (STB/D)
No Fracture
Openhole (no damage) at 110 drawdown
1,641
Openhole (no damage) at 300 drawdown
5,416
Cased and perforated (no damage) at 110 drawdown
1,639
Cased and perforated (no damage) at 300 drawdown
5,412
Simulation of Well A19A with perforations, crushed

zone, and perforations filled with mudcake
Effectively no flow
Cased and perforated + crushed zone at 110 drawdown

Crushed-zone permeability = 10% of original
1,038
Cased and perforated + crushed zone at 330 drawdown

Crushed-zone permeability = 10% of original
2,427
Fracture (No Damage)

168-m fracture length at 110 bar
5,123
17,567
3,839
46-m fracture length at 300 bar (upper zone)
8,973
46-m fracture length at 300 bar (middle zone)
13,161
46-m fracture length at 300 bar (lower zone)
12,448
Table 1Results of sensitivities.
127
a fracture, it is apparent that the position of the fracture relative to the higher-
permeability layers has a significant effect on wellproductivity.
Production in B/D
Drawdown=110 bar
6,000
Oil-Flow Rate (B/D)
5,000
Measured and Simulated

Production-Log-Test (PLT)
Comparison
4,000
3,000
2,000
1,000
0
C&P (Damage)
C&P (No Damage)
Fracture (46 m)
Fracture (168 m)
Fig. 2Production rates at 110-bar drawdown. C&P=cased and perforated.
Production in B/D
Drawdown=300 bar
20,000
18,000
Oil-Flow Rate (B/D)
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Conclusions
C&P
C&P
(Damage) (No Damage)
Fracture
(46 m
Top)
Fracture
(46 m
Middle)
Fracture
(46 m
Bottom)
Fracture
(168 m)
Fig. 3Production rates at 300-bar drawdown.
Figs.2 and 3 display the plots of the production for each scenario evaluated.
The openhole and perforated cases
were run at the same drawdown conditions; the results were almost identical.
The openhole case considers the entire
open interval, whereas the perforated
case considers only the zones that were
perforated. The cases with the crushed
zone around the perforations indicate
that this zone will have a significant effect on production, and underbalanced
perforation (in which the crushed zone
can be interpreted to be reduced) should
be beneficial. The crushed zone was observed to result in a reduction in flow rate
of more than 35%.
The case using a fracture length of
168 m is a hypothetical case, but it does
enable comparison with the other case
128
A PLT was performed in January 1998

in Well A19. The results showed that
most (82%) of the production came from
4480- to 4486-m measured depth below
rotary table, which is the lowermost perforation and the only perforation of the
A sand in the well. The top zone, B2, contributes 18%.
The simulated inflow profile, which
corresponds to the case of a 46-m fracture length, 300-bar drawdown and fracture located in the middle zone, shows
good agreement with the measured PLT.
The flow rate obtained was 13,161 STB/D.
Most production (76%) came from the
perforations of the A sand, and the top
zone B sand contributes 24%. The relative distribution between the zones
(2080%) is maintained. This represents an excellent match between the
initial oil production and distribution of
flow in the well.
(46-m fracture length). As expected, the

longer the fracture is, the more oil the
well will produce, which indicates that
the fracture length has a significant effect
on well productivity.
The case with the perforations damaged with drilling fluid did not show
effective flow. This is the case used to
simulate the expected intial condition of
WellA19A, which was perforated at overbalance in mud and then further surged
with mud into the perforations. The authors interpretation is that the perforations will be filled with a very-lowpermeability mudcake, and the model
does not predict any initial flow. With
time, this oil-based-mud filter cake is
likely to degrade.
On the basis of the results obtained
from the different cases evaluated with
The model shows that the productivity

in Well A19 can be achieved only if a hydraulic fracture is connected to the well.
According to the model results, it appears that the flow rate from Well A19
came from the matrix as well as the fracture. The case with the perforations damaged with drilling fluid (Well A19A initial
conditions) did not show effective flow.
The productivity is almost identical for
the openhole-completion option and the
cased-and-perforated option.
The crushed zone around the perforations had a significant effect on production. CFD has been used effectively
to model productivity behavior of past
Gyda wells and to help define future stimulation and completion strategies. The
authors suggest that the modeling performed also can be used to evaluate
The effect on productivity of
underbalanced drilling and
underbalanced perforation
Multiple fractures in the same
well
Horizontal wells JPT
JPT FEBRUARY 2015
Fines Migration in Fractured Wells: Integrating

Modeling With Field and Laboratory Data
0.06
Rate
roduction and drawdown data from

10 subsea deepwater fractured wells
have been modeled with an analytical
model for unsteady-state flow with fines
migration. The simulation results and
the field data indicated a good match,
within 5%. This paper describes the
methodology used to integrate the
modeling predictions with field and
laboratory data to identify probable
causes for increasing skins and declining
productivity-index (PI) values.
0.04
Fines migration is a complex phenomenon that can challenge the economic

viability of a project because of wellproductivity decline, lower-than-expected
hydrocarbon recoveries per well, large
capital expenditures to drill and complete additional wells, and high operating costs from suboptimal facility designs. Excessive fines production may
also result in equipment erosion and
corrosion, formation of hard-to-break
emulsions, and plugging of flowlines and
surface facilities, all leading to potential
hazardoussituations.
This paper describes a multidisciplinary approach in which finesmigration modeling has been integrated
with field and laboratory data to ascertain whether fines migration may be associated with rapidly increasing skins
and declining PI values observed in a
subset of deepwater fractured wells.
Laboratory studies exhibit fines release and migration during coreflooding and stress testing; the field well-
0.01
0.02
0.03
0.04
0.05
0.07
0.06
Time
(a)
40
20
Model
Field
Introduction
Model
Field
0.02
Drawdown
0.01
0.02
0.03
(b)
0.04
0.05
0.06
0.07
Time
Fig. 1Simulation results for Well 2 with an analytical model for well
productivity with fines migration. Blue stars correspond to well data. The
model match is shown in hollow black circles.
productivity data are well-matched with

the mathematicalmodeling.
Fines-Migration Modeling
The traditional mathematical model
for fines migration assumes release intensity to be proportional to differences between the current and critical values of velocity, salinity, pH, and stress.
The shortcomings of the classical model
for fines migration have been discussed
in the literature. Another approach to
fines-mobilization modeling is use of the
maximum-retention function. This approach was adopted in the current work.
Steady-state and quasisteady-state regimes of flow toward wells are described
by analytical modeling. In the current
work, the analytical model was developed for unsteady-state fines lifting, migration, and straining in fractured wells.
paper SPE 165108, Fines Migration in Fractured Wells: Integrating Modeling With
Field and Laboratory Data, by M. Marquez, W. Williams, and M. Knobles, Chevron,
and P. Bedrikovetsky, SPE, and Z. You, SPE, University of Adelaide, prepared for the
2013 SPE European Formation Damage Conference and Exhibition, Noordwijk, The
Netherlands, 57 June. The paper has not been peer reviewed.
Treatment of Well Data

Production and drawdown data from 10
subsea deepwater fractured wells were
modeled with an analytical model for
unsteady-state flow with fines migration.
The simulation results and the field data
showed a good match, within 5%. Figs.1
through 3 show the time dependency of
rate and drawdown for Wells 2, 4, and 6,
respectively. These wells have been selected for discussion on the basis of their
completion and production history.
Well 2 is the best producer in the
field with zero water cut and negative
skin. The frac-pack completion was executed with precision, achieving a hard
tip screenout (TSO) with more than
600-psi net pressure increase after TSO.
As shown in Fig. 1, there is a good match
between the model and the well data
(R2=0.996). Moreover, it is important to
note that the well drawdown (Fig. 1b) has
a small impact on the flow rate under current conditions (Fig. 1a). This signature
response was also observed for Wells 1,
9, and 10. The good quality of the completion (i.e., wider, more-densely-packed
fractures, and full annular packs) may be
the reason that this set of wells is able to
JPT FEBRUARY 2015
129
0.05
Model
Rate
Field
0
0
0.005
0.01
0.015
0.02
Drawdown
(a)
0.025
Time
0.03
0.035
0.04
0.045
0.05
Model
200
Field
100
0
0
0.005
0.01
0.015
0.02
(b)
0.025
Time
0.03
0.035
0.04
0.045
0.05
Rate
Laboratory Assessment
of Fines Production
Model
0.03
Field
0.02
Drawdown
0.01
0
(a)
100
0.005
0.01
0.015
0.02
Time
0.025
0.03
0.035
0.04
Model
Field
50
0
0
0.005
0.01
0.015
(b)
0.02
Time
0.025
0.03
0.035
0.04
withstand higher drawdowns and the effects of reservoir depletion.

As seen in Fig. 2, Well 4 experienced
a rapid decline in productivity since the
start of production. Well 6 also undergoes a fairly rapid drop in rate when
the dimensionless time T equals 0.02
(Fig. 3a), which coincides with a decision
to increase the well drawdown to arrest
production decline (notice the change in
slope in Fig. 3b at T=0.02).
As illustrated in Figs. 1 through 3,
the fines-migration model discussed here
adequately captures the well data, except for a relatively small time interval at
the end of the production period where
the modeling slightly underestimates the
well drawdown. This can be explained
by the reduced flow rate and the time
dependency of fines transport from the
reservoir to the wellbore. Although the
analytical model accounts for rate de-
130
of the well half-length. With this premise,

the radius of the fines-mobilization zone
was estimated to be in the range of 314 to
578 m, which also exceeds the fracture
half-length and validates the assumption
of axisymmetric flow. Another assumption of the analytical model is the condition of oil incompressibility in the drainage zone, which is reasonable given the
negligible effect of oil compressibility on
fines migration.
For a discussion of the sensitivity
analysis carried out to determine the impact of the model matching parameters,
please see the complete paper.
crease in the flow equation, it calculates

the initial areal distribution of released
fines from an average well rate; therefore, those particles lifted by higher rates
early in the production history effectively arrive at the near-wellbore region later
than predicted, causing an additional
pressure drawdown over time.
Given the good match achieved between the well data and the model output, the analytical model can be used for
long-term prediction of well productivity
on the basis of the matched production
history. Moreover, a 2D numerical model
may be applied to history match the well
data on the basis of the assumption of radial axisymmetric flow because the fracture half-lengths (18.0 to 29.4 m) are
significantly smaller than the drainage
radius (1500 m). Henceforth, the flow toward the fracture can be assumed radial,
with the effective well radius equal to half
Laboratory experiments were conducted to assess the potential for fines production and permeability impairment
caused by reservoir depletion and nearwellbore stresses at various flow conditions. It is important to note that conventional critical-velocity tests performed
on core material before field development did not show evidence of fines migration. Those results were supported by
X-ray-diffraction data and thin-section
images of the core material, showing relatively low clay content and good cementation by tight grain-to-grain contacts.
One limitation of conventional
critical-velocity tests is that they do not
capture flow conditions in fractured
wells adequately, in particular the effect of multiple operational shutdowns/
restarts and pressure-buildup tests,
which can induce stress cycling and frictional forces capable of breaking and
crushing in the formation and the proppant pack, and releasing fine particulate
material therefrom. Changes in reservoir
stresses with depletion can intensify this
effect further, increasing the potential for
fines production, skin increase, and productivity loss through the life of the well.
To address this gap, alternative methods
to test fines migration in the laboratory
were considered in this study.
The first set of tests involved
single-phase-flow experiments with
surging steps to simulate the effect of
multiple shut-ins and restarts of production. A two-phase coreflow experiment
was also conducted with coinjection of
synthetic formation brine and treated
kerosene, starting with kerosene at irre-
JPT FEBRUARY 2015
JPT FEBRUARY 2015
Permeability to Liquid (md)
200
10 mL/min
160
120
k/k initial =52%
at 30,000 PV
80
40
kair =283 md
0
(a) 0
6,000
12,000
18,000
24,000
30,000
36,000
42,000
Cumulative Fluid Injected (PV)

160
140
Permeability to Liquid (md)
100 mL/min
120
100
k/k initial =48%
at 30,000 PV
80
60
40
kair =294 md
20
0
(b)
40,000
80,000
120,000
160,000
200,000
Fig. 4Single-phase coreflow tests with surging and constant flow rate.
Permeability to liquid vs. cumulative injected fluid in PV: (a) 10 mL/min; (b)
100 mL/min. k=permeability; kair=air permeability; kinitial=initial permeability.
1.000
Relative Permeability (fraction)
ducible water saturation (Swi), and progressively increasing the water-cut ratio
(oil/water ratios of 90:10, 75:25, 50:50)
to 100% synthetic formation brine. For
a discussion of the procedure for conducting single-phase and two-phase
coreflow experiments, please see the
completepaper.
Permeability to brine vs. cumulative injected fluid in pore volumes (PV)
is plotted for each sample in Fig. 4. As
seen in the figure, approximately 50% of
the initial permeability for each sample is
lost after 30,000PV of cumulative injection, regardless of flow rate.
Unlike conventional critical-velocity
tests, in which fines production and permeability impairment are correlated
to a critical velocity for mobilization of
fines, the results in Fig. 4 suggest that the
amount of damage may be correlated to
a critical cumulative volume of fluid injected through the sample, in this case
30,000 PV.
A possible reason that a number of
conventional critical-velocity tests do not
show evidence of fines migration, despite
field evidence in support of it, is that
these tests often flow a limited volume of
fluid through the sample (e.g., a few hundred PV).
To assess the impact of multiphase
flow and increasing water cuts on fines
production in the vicinity of the fracture face and the annular packa region subjected to large volumes of fluid
flowan extended two-phase coreflow
experiment was conducted by coinjecting synthetic formation brine and treated kerosene, starting with kerosene at Swi
and progressively increasing the water
cut (oil/water-injection ratio=90:10,
75:25, 50:50) until synthetic formation
brine at irreducible oil saturation (Sor)
was reached, as illustrated in Fig. 5. Care
was taken to remove drilling-fluid filtrate
from the sample while preserving the native wettability of the sample.
Steady-state relative permeability
vs. water-saturation data for an extracted sample, and a wettability-restored
sample, are shown in Figs. 6a and
6b,respectively.
Direct comparison of Figs. 5 and 6
reveals a significantly-more-damaged
sample from the two-phase extendedflow test (Fig. 5). For instance, the relative permeabilities to oil (Ko) at 75:25
ko at Swi
Synthetic Formation Brine

Treated Kerosene
ko at Swi
0.100
90:10
75:25
kw at Sor
0.010
50:50
kair =301 md
0.001
0
3,500
7,000
10,500 14,000 17,500 21,000 24,500 28,000 31,500 35,000

Fig. 5Relative permeability vs. cumulative fluid injected in PV for steadystate, native-state sample (extended two-phase coreflow test). kair=air
permeability; ko=oil permeability; kw=water permeability.
131
EW
N
SPE has formed a Technical Section

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solutions in Drilling Performance
Simulation and Prediction. This new
section seeks to promote awareness
of key industry challenges, work
with relevant SPE groups to develop
necessary training initiatives, identify
areas for collaborative problem-solving,
and address gaps between operators
requirements and available solutions.
Deepen your learning and share
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Enjoy the convenience of online
collaboration and the benets of at
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Learn more and join today at

connect.spe.org/dpsp.
1
38:62
kw at Sor
0.1
97:3
krw
75:25
kor
0.01
Extrapolated
50:50
kair=266 md
0.001
0.0
(a)
0.2
0.4
0.6
0.8
1.0
Water Saturation (fraction)
1
38:62
Drilling
Performance
Simulation and
Prediction
(DPSP)
Technical
Section
kw at Sor
0.1
97:3
75:25
krw
kor
Extrapolated
50:50
0.01
kair=266 md
0.001
0.0
(b)
0.2
0.4
0.6
0.8
1.0
Water Saturation (fraction)
Fig. 6Steady-state relative permeability vs. water saturation for (a) extracted
sample and (b) wettability-restored sample.
oil/water-injection ratio are 0.3 for the

extracted sample in Fig. 6a and 0.4 for the
wettability-restored sample in Fig. 6b,
but only 0.1 for the sample subjected to
extended flow (Fig. 5). At 50:50 injection ratios, Ko ranges from 0.2 to 0.25
for the extracted and the restored samples, respectively, but it drops to 0.035
for the sample in Fig. 5. The permeability to brine at Sor ranged between
0.25 and 0.45 for the extracted and the
wettability-restored samples (Figs. 6a
and 6b, respectively), but it was less than
0.05 in Fig. 5an order of magnitude less
than the samples tested by conventional
relative permeability experiments. From
these results, it is evident that the sample subjected to extended flow (greater
than 30,000 PV) experienced some sort
of mechanical damage beyond the damage normally associated with relative per-
meability changes. As in the single-phase

coreflow tests (Fig. 4), the cumulative
fluid injected through the sample appears
to be a critical variable when it comes to
assessing fines-production potential and
permeability impairment in the laboratory. For a discussion of triaxial-stress tests,
please see the complete paper.
The integrated approach to evaluating fines production discussed in this
study offers an advantage over conventional critical-velocity experiments
in that it evaluates the impact of rock
stresses and various flow conditions, including extended flow periods, thus addressing potential fines migration from
both native (i.e., movable silty/clayey particles present within the rock fabric) and
nonindigenous particulates generated by
the crushing and shearing of proppant
and formation-sand grains. JPT
JPT FEBRUARY 2015
SPE NEWS
Saudi Aramco Recognized for SPE

Certification Exam Scores
A group of 233 Saudi Aramco engineers
were recognized at a luncheon in October for achieving passing scores on the
SPE Petroleum Engineering Certification Exam, earning Aramco an 85% pass
rate since it began prepping employees
for the exam in 2010. The ceremony was
held at Saudi Aramcos Upstream Professional Development Center (UPDC)
in Dhahran, Saudi Arabia, and was led
by Saudi Aramcos senior vice president of upstream, Amin H. Nasser,

and other members of the upstream
managementteam.
Preparation courses for the SPE
certification program are a collaborative effort between the SPE Saudi Arabia Section, Saudi Aramco Upstream,
and UPDC. Classes review problems
under examination conditions and
help engineers improve test strategies,

time management, and critical thinking skills required to receive a passing
grade. This is combined with a set of
continuing education courses to maintain critical knowledge after an engineer
is certified.
The UPDC has four courses scheduled for 2015 to prepare another 100
engineers for certification.
Saudi Aramco employees stand outside the Upstream Professional Development Center in Dhahran, Saudi Arabia after a
ceremony recognizing their performance on the SPE Petroleum Engineering Certification Exam.
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SPE NEWS
Jeff Spath (center), 2014 SPE President, and Andrey Gladkov (behind Spath), SPE Russia and Caspian regional director,
met recently with students and faculty at Tyumen State Oil and Gas University in Tyumen, Russia. Spath; Gladkov; SPE
vice president of sales and marketing, Roberto Chiarotti; and SPE Moscow office director, Claudia Rodinova, took a
weeklong tour of Russias oil and gas sector in September. Stops included Tyumen, Moscow, Sakhalin, and Samara.
Three Student Members Honored with Nico van Wingen Fellowships

In November, Bahareh Nojabaei, PhD
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Colorado School of Mines; and Vahid
Dokhani, PhD student and teaching/
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Nico van Wingen worked as an evaluation engineer, consultant, and then as
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Permian Basin Study Group Hosts High School Students

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Norris Conference Center in Houston,
Texas. The luncheon was led by Texas
A&M drilling professor and retired Exx-
134
onMobil chief drilling engineer Fred

Dupriest, who gave a presentation titled,
What We Need From This Generation,
and Steps to Help Them Achieve It.
Dupriest spoke to more than 50
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more than 20 students from Seven Lakes

High Schoolboth located in the Houston areaabout the role of future generations in the oil and gas industry. The
sections community services group
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PEOPLE
Jon olson, SPE, has been appointed
chair of the University of Texas at Austins
Department of Petroleum and Geosystems
Engineering within the universitys Cockrell School of Engineering. Olson has been
a faculty member at the school for 20 years
and worked as a research engineer at Mobil
Oil prior to his academic career. His work currently focuses on
production optimization and environmental impact issues related to hydraulic fracturing and unconventional oil and gas
development. Olson holds BS degrees in civil engineering and
Earth sciences from the University of Notre Dame and a PhD
in applied Earth sciences from Stanford University.
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UNITED STATES
&
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D.F. NORTH AND ASSOCIATES, INC.
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THE
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ADVERTISERS IN THIS ISSUE

Archer
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JPT FEBRUARY 2015
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Rock Flow Dynamics
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JOURNAL OF PETROLEUM TECHNOLOGY

Implications of Lower Oil Prices

Everything we know. Everywhere you go.

Find out more at

The safe disposition of waste water is an industry priority especially

Cover: A wellhead desander installed

Printed in US. Copyright 2015, Society of Petroleum Engineers.

The Saudi Arabian oil companys upstream strategy aims to implement

An Official Publication of the Society of Petroleum Engineers.

MTM cementing Port

TAM Big Packers for Deepwater Operations:

DRILLING & COMPLETIONS

79 Drilling of Multilateral Wells in Kuwait Aided With

84 Managed-Pressure-Drilling Technology in Offshore HP/HT

87 Unique System for Underbalanced Drilling Using Air in the

90 Advanced Technologies and Solutions for Challenging

hino RHE is a mark of Schlumberger. 2015 Schlumberger. 14-DT-0171

95 Mars-B Development: An Evolution of Traditional Well, Rig,

100 Moorings Replacement and Hookup for a Damaged

104 Upgrade of Spar Topside With Comprehensive

i-DRILL system design ensures

108 Well Testing

109 Modeling Transient Wellbore Temperature During Diagnostic

112 Creating Value With Permanent Downhole Gauges in Tight

116 Tactics for Use of Diagnostic Fracture Injection Tests in

120 Formation Damage

121 Improving the Interpretation of Formation-Damage Laboratory Tests

129 Fines Migration in Fractured Wells: Integrating Modeling With

Read the case study at

Saved by averting unnecessary remediation

We have many more well integrity stories to share.

new kind of partnership

can help build a more secure well.

Completion & Stimulation

ONE STOP FOR EVERYTHING JPT

TECHNICAL PAPER DOWNLOADS

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Advances in Well Control

New kick etection techniques

Kick-control proce ures

A vancements in pressure control equipment

This edition of the SPE reprint series focuses

Blowout control an contingency planning

The entire collection, which includes 35 papers,

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JPT FEBRUARY 2015

WORlD CRuDE OIl PRICES (uSD/bbl)

WORlD ROtARy RIG COuNt

Nominate a colleague for

WORlD OIl SuPPly AND DEMAND 1

Figures do not include NGLs and oil from nonconventional sources.

JPT FEBRUARY 2015

EnAblinG NEXT GENErATION

Arlon 3000 XT Delivers Reliability and Safety

Coin Extrusion Test & Results: PEEK (left)/Arlon 3000 XT (right)

Visit www.arlon3000xt.com to see how our portfolio

Arlon 3000 XT by Greene, Tweed based on VESTAKEEP,

Greene, Tweed | Oilfeld | +1.281.765.4500 | www.arlon3000xt.com

tAG Oils Cheal-E-JV-6 well, located in

Logging data acquired during the

the Otway basinindicated gas within