2001 ASME/API Gas-Lift Workshop

Gas-Lift Future
An Extension of the Past,
or a Whole New World?
by

Cleon Dunham, Oilfield Automation Consulting

John Martinez, Production Associates

Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 1

Gas-Lift Future

Outline
• Is the past good enough?
• What are some "bright lights?"
• What can the future be?
• The challenge

Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 2

1
 Is the Past Good Enough?

The past has often been characterized by:

• For the Operating Companies
– Excessive use of gas
– Excessive production deferment
– Excessive CAPEX and OPEX
– Poor application of gas-
gas-lift equipment in some cases
– Many gas-
gas-lift experts have retired or left the company
– High staff turn-
turn-over
– Inadequate training programs and poorly trained staff
– Inadequate focus on the surveillance process
– Inadequate understanding of the problem and what to
do about it
Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 3

Is the Past Good Enough?

• For the Supply/Service Companies

– Little incentive to improve gas-
gas-lift products
– Little incentive to follow industry standards
– Little incentive to invest in R&D
– Limited competition

• For the Universities

– Few faculty trained to teach gas-
gas-lift
– Few students interested in gas-
gas-lift
– Limited funding for gas-
gas-lift programs, R&D

Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 4

2
 Is the Past Good Enough?

• For Others
– Variety of different programs and approaches
– Inconsistency among "consultants" advice

Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 5

What are some "Bright Lights?"

Some emerging "bright lights"

• Gas-
Gas-Lift Hardware
– Equipment standards
– Recommended practices
– Valve improvements
– Surface controlled gas-
gas-lift valves

• Gas-
Gas-Lift Processes
– Surveillance improvements
– Software improvements
– Training developments
– Integration with other forms of artificial lift
Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 6

3
 What are some "Bright Lights?"

• Information Sharing
– Gas-
Gas-lift workshops
– Focus on artificial lift R&D

Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 7

What can the Future Be?

The future can be characterized by:

• For the Operating Companies
– Optimum use of injection gas
– Optimum production, minimum unplanned deferment
– Optimum investment --- CAPEX, OPEX
– Effective selection and application of gas-
gas-lift equipment
– Effective surveillance of all gas-
gas- lift wells, all of the time
– Effective use of a well-
well-defined surveillance process
– Access to effective, on time, training and staff
development
– Clear choices --- optimum selection of artificial lift
method(s)
Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 8

4
 What can the Future Be?

The future can be characterized by:

• For the Operating Companies
– Use of high-
high-pressure injection gas coupled with single
point lift, which eliminates unloading valve problems
– Implementation of excellent dehydration facilities to
eliminate freezing and loss of production and to
eliminate gas distribution piping corrosion
– Use of various fluids for lift – nitrogen, CO2 – that can
also be used for reservoir pressure maintenance
– Early installation of gas lift system while wells have
highest production rates - quicker payout
– Promote high rate gas lift and reduce wells required for
field development
Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 9

What can the Future Be?

• For the Supply/Supply Companies

– Stronger incentives to build high quality equipment
– Higher rewards for high quality, innovative designs
– Higher market share to those that build to industry
standards

• For the Universities

– Renewed interest in gas-
gas-lift and artificial lift in general
– Expanded sources of interested faculty and students
– Better placement opportunities for qualified students
– Expanded interest in R&D programs

Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 10

5
 What can the Future Be?

• For Others
– Stronger demand for effective consulting, training

Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 11

The Challenge

How to move from the (undesirable) past to

the (desired) future
• By the Operating Companies
– Gain a clear understanding of the economics of both
"inaction" and "action"
– Pro-
Pro-actively seek to improve gas-
gas-lift operations,
optimization, surveillance, training, etc.

• By the Supply/Service Companies

– Pro-
Pro-actively work with Operating Companies to
understand real needs and the value in meeting them
– Aggressively develop required new capabilities
Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 12

6
 The Challenge

• By the Universities
– Pro-
Pro-actively develop enhanced gas-
gas-lift (and artificial lift)
programs to attract high quality faculty and students

• By Others
– Aggressively communicate the "value proposition" that
gas-
gas-lift can help create much more net value when it is
properly understood, implemented, and applied

Nov. 13, 2001 2001 Fall ASME/API Gas-Lift Workshop 13