PetE 406-RESERVOIR ENGINEERING 1

King Arrielle J. Lina

August 13, 2020
RESERVOIR ENGINEERING 1

Course Rationale and Description

Reserves are those quantities of petroleum which are anticipated to be

commercially recovered from known accumulations from a given date forward. All reserve
estimates involve some degree of uncertainty. The uncertainty depends chiefly on the
amount of reliable geologic and engineering data available at the time of the estimate and
the interpretation of these data. The relative degree ofuncertainty may be conveyed by
placing reserves into one of two principal classifications, either proved or unproved.
Unproved reserves are less certain to be recovered than proved reserves and may be
furthersub-classified as probable and possible reserves to denote progressively
increasing uncertainty in their recoverability.

Intended Learning Outcomes

ILO 1- Understand the well testing and pressure analysis techniques, which are
probably the most important subjects in the whole of reservoir engineering.
ILO 2- Fundamentals of reservoir fluid behavior with an emphasis on the
classification of reservoir and reservoir fluids.
ILO 3- Examine how the different gas properties behave and focuses on presenting
the concept of relative permeability and its applications in fluid flow calculations.
ILO 4- To describe the principle of oil and gas well performance calculations.

Criteria for Assessment

Midterm Examination 25%
Final Examination 25%
Online Quiz 1 10%
Online Quiz 2 10%
Exercises 10%
Laboratory Work 20%
Module 1 INTRODUCTION TO
RESERVOIR ENGINEERING
Introduction
Reserves are those quantities of petroleum which are anticipated to be commercially
recovered from known accumulations from a given date forward. All reserve estimates
involve some degree of uncertainty. The uncertainty depends chiefly on the amount of
reliable geologic and engineering data available at the time of the estimate and the
interpretation of these data. The relative degree of uncertainty may be conveyed by
placing reserves into one of two principal classifications, either proved or unproved.
Unproved reserves are less certain to be recovered than proved reserves and may be
further sub-classified as probable and possible reserves to denote progressively
increasing uncertainty in their recoverability.

Topic Outcomes
1. Recognize and understand the basic concepts in reservoir engineering.
2. Learn to calculate the hydrocarbon volumes.
SOME BASIC CONCEPTS IN RESERVOIR ENGINEERING

Proved Reserves
Proved reserves are those quantities of petroleum which, by analysis of geological and
engineering data, can be estimated with reasonable certainty to be commercially
recoverable, from a given date forward, from known reservoirs and under current
economic conditions, operating methods, and government regulations. Proved reserves
can be categorized as developed or undeveloped.
Unproved Reserves
Unproved reserves are based on geologic and/or engineering data similar to that used in
estimates of proved reserves; but technical, contractual, economic, or regulatory
uncertainties preclude such reserves being classified as proved. Unproved reserves may
be further classified as probable reserves and possible reserves.
Unproved reserves may be estimated assuming future economic conditions different from
those prevailing at the time of the estimate. The effect of possible future improvements in
economic conditions and technological developments can be expressed by allocating
appropriate quantities of reserves to the probable and possible classifications.
Probable Reserves
Probable reserves are those unproved reserves which analysis of geological and
engineering data suggests are more likely than not to be recoverable.
Possible Reserves
Possible reserves are those unproved reserves which analysis of geological and
engineering data suggests are less likely to be recoverable than probable reserves.
Primary Functions of a Reservoir Engineer
 estimation of hydrocarbons in place
 calculation of a recovery factor
 attachment of a time scale to the recovery

The description of the calculation of oil in place concentrates largely on the determination
of fluid pressure regimes and the problem of locating fluid contacts in the reservoir.
Primary recovery is described in general terms by considering the significance of the
isothermal compressibilities of the reservoir fluids; while the determination of the recovery
factor and attachment of a time scale are illustrated by describing volumetric gas reservoir
engineering.

Calculation of Hydrocarbon Volumes

Consider a reservoir which is initially filled with liquid oil. The oil volume in the reservoir
(oil in place) is :

OIP = Vb Φ ( 1 – Swc ) res. Vol (1.1)

Where Vb = net bulk volume of the reservoir
Φ = porosity, or volume fraction of the rock which is porous
Swc = the connate or irreducible water saturation and is expressed as a fraction of
the pore volume.

The product VΦ is called the pore volume (PV) and is the total volume in the reservoir
which can be occupied by fluids. Similarly, the product VΦ (1 Swc) is called the
hydrocarbon pore volume (HCPV) and is the total reservoir volume which can be filled
with hydrocarbons either oil, gas or both.

The oil volume calculated using equ. (1.1) is expressed as a reservoir volume. Since all
oils, at the high prevailing pressures and temperatures in reservoirs, contain different
amounts of dissolved gas per unit volume, it is more meaningful to express oil volumes
at stock tank (surface) conditions, at which the oil and gas will have separated. Thus the
stock tank oil initially in place is :

STOIIP or Nt = vb Φ ( 1 – Swc ) / Boi STB (1.2)

where Boi is the oil formation volume factor, under initial conditions, and has the units
reservoir volume/stock tank volume, usually, reservoir barrels/stock tank barrel (rb/stb).
Volumetric Method of estimating hydrocarbon reserves
Dependent on quality of reservoir description. Reserves estimates often high because
this method does not consider problems of reservoir heterogeneity.

Example :
The following data is given in an Oilfield :
Area = 26700 acres
Net productive thickness = 49 ft
Porosity = 8%
Average Sw = 45%
Boi = 1.68 bbl / STB
Calculate the STOIIP

Solution
Vb = 7758 x A x h = 7758 x 26700 x 49 = 10.15 MMM bbl
10.15 x 109 (0.08) (1 – 0.45)
𝑁𝑡 = = 266𝑀𝑀 𝑆𝑇𝐵
1.68

Problem 1
The following data is given in Hout Oilfield:
Area = 16468 acres
Thickness = 72 ft
Porosity = 9%
So = 59%
Boi = 1.33 bbl / STB
Calculate the STOIIP
Problem 2
The following data is given in Lora’s Oilfield :
Boi = 1.57 bbl / STB
Porosity = 8%
Sw = 30%
Thickness = 69 ft
Nt = 300MM STB
Calculate the area of the reservoir
And pore volume.

Calculating the GIIP (Gas Initially In Place)

𝑉𝑏 𝛷 ( 1 − 𝑆𝑤)
𝐺𝑡 = 𝑆𝐶𝐹
𝐵𝑔

Where :
Gt = gas in place
Vb = bulk reservoir volume, ft3
Φ = porosity
Sw = water saturation
Bg = gas formation volume factor

Example
The following data is given for the Bell Gas Oilfield :
Area = 160 acres
Thickness = 40 ft
Porosity = 22%
Sw = 23%
Bg = 0.00533 ft3 / SCF
Calculate the GIIP

Solution :

Vb = 43560 x A x h = 43560 x 160 x40 = 278.784 MM ft 3

278.784 𝑥106 (0.22)( 1 − 0.23 )

𝐺𝑡 = = 8860 𝑀𝑀 𝑆𝐶𝐹
0.00533

Problem 1
The following data is given in an oilfield :
Area = 175 acres
Thickness = 43 ft
Porosity = 20%
Gas saturation = 70%
Bg = 0.00611 ft3 / SCF
Calculate the GIIP

Oil In Place after Volumetric Depletion

𝑉𝑏 𝛷 (1 − 𝑆𝑤)
𝑁=
𝐵𝑜
Oil In Place after Water Invasion

𝑉𝑏 𝛷 𝑆𝑜𝑟
𝑁=
𝐵𝑜
Recovery Factor

𝑂𝑖𝑙 𝑟𝑒𝑐𝑜𝑣𝑒𝑟𝑒𝑑
𝑅𝐹 =
𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝑜𝑖𝑙 𝑖𝑛 𝑝𝑙𝑎𝑐𝑒

Example:
The following data are given for the Hout Oil Field:
Area = 26,700 acres
Net productive thickness = 49 ft
Porosity = 8%
Average Sw = 45%
Initial reservoir pressure, pi = 2980 psia
Abandonment pressure, pa = 300 psia
Bo at pi = 1.68 bbl/STB
Bo at pa = 1.15 bbl/STB
Sg at pa = 34%
Sor after water invasion = 20%
Calculate the following:
1) Initial oil in place
2) Oil in place after volumetric depletion to abandonment pressure
3) Oil in place after water invasion at initial pressure
4) Oil reserve by volumetric depletion to abandonment pressure and recovery
factor
5) Oil reserve by full water and recovery factor
Gas In Place after Volumetric Depletion
𝑉𝑏 𝛷 ( 1 − 𝑆𝑤)
𝐺= 𝑆𝐶𝐹
𝐵𝑔

Gas in Place after Water Invasion

𝑉𝑏 𝛷 𝑆𝑜𝑟
𝑁=
𝐵𝑜

Recovery Factor
𝐺𝑎𝑠 𝑟𝑒𝑐𝑜𝑣𝑒𝑟𝑒𝑑
𝑅𝐹 =
𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝑔𝑎𝑠 𝑖𝑛 𝑝𝑙𝑎𝑐𝑒
Example :
The following data are given for the Bell Gas Field:
Area = 160 acres
Net productive thickness = 40 ft
Initial reservoir pressure = 3250 psia
Porosity = 22%
Connate water = 23%
Initial gas FVF = 0.00533 ft3/SCF
Gas FVF at 2500 psia = 0.00667 ft3/SCF
Gas FVF at 500 psia = 0.03623 ft3/SCF
Sgr after water invasion = 34%

Find the following:

1) Initial gas in place
2) Gas in place after volumetric depletion to 2500 psia
3) Gas in place after volumetric depletion to 500 psia
4) Gas in place after water invasion at 3250 psia
5) Gas in place after water invasion at 2500 psia
6) Gas in place after water invasion at 500 psia
7) Gas reserve by volumetric depletion to 500 psia
8) Gas reserve by full water drive; i.e. at 3250 psia
9) Gas reserve by partial water drive; i.e. at 2500 psi
Material Balance Equation
It seems no longer fashionable to apply the concept of material balance to oilfields, the
belief being that it has now been superseded by the application of the more modern
technique of numerical simulation modelling.
Material balance equation can be solved by defining an average pressure decline trend
for a reservoir, which is always possible, irrespective of any lack of pressure equilibrium,
then material balance can be applied using simply the production and pressure histories
together with the fluid PVT properties. No geometrical considerations (geological models)
are involved, hence the material balance can be used to calculate the hydrocarbons in
place and define the drive mechanisms. In this respect, it is the safest technique in the
business since it is the minimum assumption route through the subject of reservoir
engineering. Conversely, the mere act of construction of a simulation model, using the
geological maps and petrophysically determined formation properties implies that the
STOIIP is "known". Therefore, history matching by simulation can hardly be regarded as
an investigative technique but one that merely reflects the input assumptions of the
engineer performing the study.
Material balance is excellent at history matching production performance but has
considerable disadvantages when it comes to prediction, which is the domain of
numerical simulation modelling.
A general material balance equation that can be applied to all reservoir types was first
developed by Schilthuis in 1936. Although it is a tank model equation, it can provide great
insight for the practicing reservoir engineer. It is written from start of production to any
time (t) as follows:
Material Balance Equation as a Straight Line
Normally, when using the material balance equation, each pressure and the
corresponding production data is considered as being a separate point from other
pressure values. From each separate point, a calculation is made and the results of these
calculations are averaged. However, a method is required to make use of all data points
with the requirement that these points must yield solutions to the material balance
equation that behave linearly to obtain values of the independent variable. The straight-
line method begins with the material balance written as:
Defining the ratio of the initial gas cap volume to the initial oil volume as:

and plugging into the equation yields:

Let:
Thus we obtain:

Let:

Dividing through by D, we get:

Which is written as y = b + x. This would suggest that a plot of F/D as the y coordinate
and W e/D as the x coordinate would yield a straight line with slope equal to 1 and intercept
equal to N.

Drive Indexes from the Material Balance Equation

The three major driving mechanisms are: 1) depletion drive (oil zone oil expansion), 2)
segregation drive (gas zone gas expansion), and 3) water drive (water zone water influx).
To determine the relative magnitude of each of these driving mechanisms, the
compressibility term in the material balance equation is neglected and the equation is
rearranged as follows:

Dividing through by the right hand side of the equation yields:

The terms on the left hand side of equation (3) represent the depletion drive index (DDI),
the segregation drive index (SDI), and the water drive index (WDI) respectively. Thus,
using Pirson's abbreviations, we write:

Sample Problem
Given the following data for an oilfield
Initial reservoir pressure = 2710 psia
Water formation volume factor = 1.022 bbl / STB
Oil recovered during interval = 22 MM STB
Volume of bulk oil zone = 112,000 acre-ft
Average produced gas-oil ratio = 700 SCF / STB
Reservoir pressure at the end of interval = 2000psia
Initial dissolved gas-oil ratio = 562 SCF / STB
Volume of water produced = 1.05 MM STB
Volume of bulk gas zone = 19600 acre-ft
Initial oil formation volume factor = 1.300 bbl / STB
Initial gas formation volume factor = 0.006266 ft3 /SCF
Two-phase formation volume factor = 1.4934 bbl / STB
Volume of water encroached = 11.58 MM STB
Gas formation volume factor = 0.008479 ft3 / STB
Calculate:
a. Stock tank oil initially in place
b. driving indexes.