Technology for Production Enhancement (with case studies)

Abstract

Improved technology and, more importantly, the cross-discipline use of selected technologies has enhanced production in existing oilfields around the world.

Production enhancement is defined as improving Oil Company results versus corporate-level objectives such as increasing incremental production, decreasing production costs ($/barrel), and improving asset net present value (NPV).

Production enhancement succeeds when the Oil and Service Companies utilize aligned high-level goals and the correct technology to increase production with better cost efficiency. Production enhancement fails when cost-cutting is the only objective.

Cross-discipline technologies are defined as having value for more than a single user. For instance, both the stimulation and petrophysics departments may request a certain log be run a new well, or the drilling

and completion departments may work together to order the drilling fluids for the reservoir section.

It is the responsibility of the Service Company to ensure that the Oil Company knows about and properly uses the new technologies. Our research and development investment has concentrated on the multiple uses of technologies and teaching our personnel how to apply them. Our operations organization has been modified to improve the application of technology for our clients.

A very effective method for an Oil Company to increase technology integration and enhance production is to enter into a Risk-Reward contract with a Service Company. Risk-Reward contracts can be based solely upon either construction or production incentives, or upon a combination of both.

This presentation will use case studies to demonstrate cross-discipline technologies and to explain how Risk-Reward contracts are set up, managed, and evaluated.