This article, written by Senior Technology Editor Dennis Denney, contains highlights of paper SPE 150079, "Managing Fields Using Intelligent Surveillance, Production Optimization, and Collaboration," by Frans G. Van den Berg, SPE, Andrew Mabian, SPE, Ronald Knoppe, Edwin Van Donkelaar, Frans Terlaan, and Valentin Koldunov, SPE, Shell, and Rufina Lameda, Science Applications International Corporation, prepared for the 2012 SPE Intelligent Energy International, Utrecht, The Netherlands, 27-29 March. The paper has not been peer reviewed.
Technology Update - No abstract available.
Poor supply chain management can set the conditions for failures of catastrophic proportions, both economically and in terms of safety. It has been the root cause of several of the largest disasters in oil and gas history. Many professionals fail to recognize important gaps due to the complexity of the web of supply relationships and the number of critical interfaces that can be misaligned. Professionals from executive offices, HSE, procurement, logistics, operations, and risk management need to take four major steps to ensure a safe supply chain: 1) Establish governance & organization to ensure organizational accountability for governance and management of supply chain risk, by appointing a supply chain czar and engaging cross-functional stakeholders; 2) Adopt an internationally accepted top-level supply chain risk management framework and articulate first-level principles, including a policy on single sourcing; 3) Universally adopt formal "reinforcing?? metrics and measurement systems, including measurement of supply chain risk, Total Cost methodologies, and quantification of the cost of supplier non-compliance; and 4) Extend supply chain strategy and policies to suppliers by scanning for suppliers that excel in HSE, setting supplier expectations and targets, training suppliers, and establishing mechanisms to hold them accountable including periodic audits.
Classic View of Supply Chain Management
Supply chain management is often perceived as either a synonym for the logistics department, based on its origins 30 years ago, or as a process whose objective is to reduce operating cost and make sure supplies are available when they are needed. Either way its impact is often viewed as minor and incremental compared to much more visible activities in exploration, production, and mid and downstream operations, a perception that fails to acknowledge the significant and continuous evolution that the concept underwent since its origin 30 years ago.
Most typical supply chain challenges are economic, and come into play long after much more strategic decisions are made. Supply chain managers are responsible for avoiding cost overruns by paying suppliers the right amount - not too much, especially to sole source suppliers, and not too little, which could encourage suppliers to shift cost from one bucket to another and could jeopardize creativity and innovation. They must also make decisions that keep projects on schedule, and oil companies are even more concerned about schedule and availability than about price. In our survey (see Appendices A and B for the demographics and results of the survey, respectively), respondents cited the risk of unavailability (including schedule slippage, missed delivery deadlines, and regulatory delays) five times more frequently than price concerns.
Kennedy, Robert L. (Baker Hughes Inc.) | Gupta, Rajdeep (Baker Hughes Ltd.) | Kotov, Sergey Vasilyevich (Baker Hughes Inc.) | Burton, William Aaron (Baker Hughes Inc.) | Knecht, William N. (Energy International Corp.) | Ahmed, Usman (Baker Hughes Inc.)
During the past six years, the technology for shale gas/oil developments in North America has seen many improvements and optimizations as the industry experiences a sharp rise in the contribution of hydrocarbons from these resources. More recently, Europe and Australia have joined the US in expanding recoverable hydrocarbons from these unconventional resources, and initial activities are on the rise in Latin America, China, Saudi Arabia and India. Despite such improvements and optimizations, a closer look at the performance reveals that not all wells are producing commercially. In addition, the hydraulic fracture stages are not all contributing within the producing wells. This scenario potentially suggests that it is important to target the field's sweet spots while dealing with shale resources (like most other hydrocarbon-bearing formations). Hence, resource development based on the current concepts of geometric placement of hydraulic fracture stages (e.g., using fixed well/fracture spacing) may not be appropriate to develop such heterogeneous unconventional resource basins. In the discussion we illustrate certain well-defined criteria that can identify the sweet spot locations within a field/basin for the optimal well placement. We further document the vital formation/zone characteristics that define the locations for hydraulic fracture stages and thus move away from the arbitrary geometric placement.
The paper will discuss the well-placement optimization process and identify the required combination of proposed special petrophysical, geochemical, and geomechanical investigations (wireline, Logging While Drilling and cores). The hydraulic fracture stage placement analysis as presented, shoulders on the need to understand the existing natural fracture system. This understanding is achieved through geophysical log measurements and comprehensive analysis of the hydraulic fracture development pattern, as well as interaction of hydraulic fractures at each stage with the natural fractures. A naturally fractured reservoir can be drained more efficiently if a complex fracture network can be created by the hydraulic fracture stimulation. This begins by drilling the well in the direction of minimum principle horizontal stress in the area.
The paper concludes by presenting examples demonstrating the practical application of some of the specific aspects of the methodology discussed and with a number of specific conclusions. In summary, the three key points to Proper Placement of Wells and Hydraulic Fracture Stages, in order to maximize the net value of an operator's asset are:
1. Begin With a Complete Understanding of the Reservoir
2. Use a Multidiscipline and Integrated Approach Across Each Phase of the Life Cycle
3. Effectively Use Modern Technology