Six Steps to Greater Profits

To survive and thrive in the long term, a business must be profitable. But just how can an oil company improve its bottom line? By producing more oil with fewer wells.

Here’s what we mean by that:

• More Oil: Accelerating cash flow from existing assets.
• Place wells in the “sweet spots” of the reservoir.
• Use highly deviated or horizontal wells for very high flow rates.
• Produce more hydrocarbons in the same time period for higher cash flows with the same overhead.

• Fewer Wells (costs): Produce the field with fewer, more productive wells.
• Reduce wells by as much as 30% through accurate siting.
• Decrease drilling expenditures.
• Increase your development program effectiveness.

Fugro-Jason will help you achieve this.

Step 1: Bring together your well log and seismic data to create the best view of your field.

What does it mean to “bring together your well log and seismic data”?
To some geophysicists, it means that Sonic and Density logs have been tied to the seismic in time, with the well log events corresponding to the seismic events, shown here.

This is NOT what we mean.

Sometimes managers think that a 3D visualization of the seismic data with the well tracks is a way to bring the well log data and seismic together.
Taking this approach, wells will be drilled to penetrate the high amplitude locations on the seismic data in the upper reservoir zone in the section shown below.

This is still NOT what we mean.

Here the Sonic and Density from the well are combined to make a rock property—acoustic impedance—that is then tied to the seismic data. The Jason Workbench then converts the seismic data to the same rock property—acoustic impedance.

Bringing together your well log and seismic data means that you are looking at the same kind of data—the acoustic impedance of the rock layers—measured with two different tools (well logs and seismic data). This can be extended to the shear impedance and density as well in a pre-stack seismic case.

Only by getting the well data and seismic data in the same rock property domain can you make meaningful, quantitative measurements about the reservoir continuity, geometry, porosity, lithology, and other properties between the wells.

This is what we mean.

Step 2: Perform full data QC.

Once you have both well log and seismic data in a truly comparable form, you can identify inconsistencies and quality issues. By highlighting inconsistencies in well, interpretation, velocity and seismic data, you can map areas of poor data quality where there will be greater uncertainty.

This level of quality control in your reservoir characterization is critical to successful field development. Because you brought together the seismic well log data in Step 1, this task is greatly simplified and far more accurate.

Step 3: Characterize the reservoir using the Fugro-Jason method.

You do not need to set up a new department or add staff to utilize the Fugro-Jason method. In addition to the algorithms themselves, a key reason people are successful with this process is because it forces asset teams to look at their data as a whole.

For most companies, having Fugro-Jason’s experts do the processing and QC of the data makes the most sense because the Fugro-Jason team becomes an extension of your asset team, and you will participate in peer reviews and client reviews throughout the project. By the time the project is finished, you will already have a good idea what you are going to get.

However, if you are a large company or one that wants in-house control over all the data and processing, you can purchase the software and apply it yourself. Our services staff uses the same software that is sold commercially.

Step 4: Review the field as a whole, not as a series of wells.

After you receive the results, you will be looking at your reservoir in a new light. Your asset team will decide if there is enough clarity of detail in the results that they can design a horizontal drilling program to intersect the thickest, sweetest parts of the reservoir to dramatically increase production rates per well. They will be able to determine the compartmentalization of the reservoir more accurately to avoid drilling more wells than necessary into each compartment, and to make sure there are no missed compartments. They will sleep better at night knowing the locations they recommend are going to become productive wells.

Step 5: Drill the best combination of horizontal and conventional wells.

A clear picture of your reservoirs' geometry will allow you to take advantage of the latest drilling technologies more often. Technologies like horizontal and geo-steered wells are possible where you have a clear picture of the reservoir and can tell where you are with LWD tools (or where your reservoirs are thick enough that accuracy doesn't matter—increasingly a rarity). The more you can utilize these advanced drilling methods, the more you reduce total drilling costs, accelerate cash flow, increase total recovery, and increase profits.

Step 6: Build a better understanding of the dynamic behavior of the field.

There is additional opportunity for greater profit once the field is reaching maturity. By using Fugro-Jason to characterize the field, you will improve your reservoir simulation model. You will be able to better analyze and understand the impact of heterogeneities on flow. Likewise, inversion results will help forecast sweep efficiency for both new and existing wells.
Overall, a better understanding of the reservoir leads to more efficient enhanced recovery methods. For example, there may be improvements possible in water flooding and infill drilling. A successful reservoir characterization will help determine the most profitable recovery program.

Conclusion

The profit equation is simple and so are the steps to getting there. By taking a truly integrated approach to reservoir characterization and the team that analyzes results, you will dramatically improve the information upon which critical decisions are made. The Jason Workbench and our services staff are founded upon this approach and will serve you well in your quest for greater profit.