Advanced Reservoir Management For Independent Oil And Gas Producers
Authors: Sgro Anthony G. , Kendall Richard P. , Kindel Joseph M. , Webster Robert B. , Whitney Earl M. 
Published: December 2007

Independent Oil & Gas operators are playing an increasingly important role in the production of hydrocarbons in the United States. Advanced reservoir management techniques, especially approaches based on advanced computer modeling, have been successfully applied by major producers to many oil and gas fields, but have not been particularly accessible to Independent operators. These tools are expensive and often technologically incomprehensible to the small operator. The Internet, which is revolutionizing the way business is conducted in many venues, may offer a way to surmount the problems associated with the cost and accessibility of reservoir management software. This paper will illustrate, through actual case studies involving Independent operators, a paradigm which brings together local consultants, software vendors, expert users (specialized consultants), and Independent operators using the World Wide Web (W3) to pursue low cost reservoir evaluation and planning. Moreover, it will demonstrate how meaningful geological and engineering modeling (reservoir simulation) access can be provided directly to Independent operators who are not modeling experts. This is accomplished by task-distributed computing, which allows computing and databases on individual computers to be managed by a central server. The principal conclusion is that it may be possible to bring the technology of advanced reservoir characterization, including stochastic modeling and reservoir simulation to bear on the problems relevant to Independent operators at significantly lower cost utilizing the W3. The first phase of this project is complete and in place on the W3. Success factors for this approach include: willingness of software vendors to restructure pricing algorithms, security on the W3, acceptance of W3 by local consultants and Independent operators, improvements in W3 communications bandwidth.

Introduction

Reservoir management technologies have the potential to increase oil recovery while simultaneously reducing production costs. These technologies were pioneered by major producers and are routinely used by them. Independent producers confront two problems adopting this approach: the high cost of acquiring these technologies and the high cost of using them even if they were available. Effective use of reservoir management tools requires, in general, the services of a professional (geoscientist or engineer) who is already familiar with the details of setting up, running, and interpreting computer models.

A previous paper described a project which alms to make reservoir management tools available to the Independent operator in a cost effective manner. The central feature of this approach exploits the potential of the World Wide Web (WWW) to deliver software access at low cost. The procedure of launching petrotechnical applications and retrieving results over the WWW, and the paradigm for the interaction between the independents, the petroleum service sector, and the government, were presented. It was emphasized that in contrast to the present situation, a non-expert Independent producer is able to make simple but meaningful changes to the simulation models, such as reconfiguring production or working over wells, in order to assess the effect of such strategies on oil recovery rates.

This paper will illustrate this paradigm in action through an actual case study involving an Independent operator. Local consultants, software vendors, expert users (specialized consultants), and independent operators are brought together by the WWW to pursue low cost reservoir management. Meaningful geological modeling and reservoir simulation access is provided directly to independent operators who are not modeling experts. P. 685