1/21/2021 Product Suite 1/21/2021 Classification of Unconventional Gas and Oil Advanced Processes & Thermal Simulator • Shale gas and oil Compositional & Unconventional Reservoir Simulator • Tight gas and oil Three-Phase, Black-Oil Reservoir Simulator • Natural gas from coal (NGC/CBM/CSG etc.) Sensitivity Analysis, History Matching, Optimization & Uncertainty Analysis Tool • Gas hydrates or Methane hydrates Integrated Production & Reservoir Simulation Intelligent Segmented Wells Phase Behaviour and Fluid Property Application Pre-Processing: Simulation Model Building Application Post-Processing: Visualization &Analysis Application Characterization of Tight Formations Introduction to Unconventional Reservoirs Source: Canadian Society for Unconventional Resources: http://www.csur.com/sites/default/files/Understanding_TightOil_FINAL.pdf 6 7 1/21/2021 1/21/2021 Unconventional Gas and Oil Development Simulating Unconventional Assets • As conventional gas and oil resources are becoming depleted, it has become a necessity to produce from unconventional resources in order to meet demand • From 2008 to 2018, production from tight and shale plays in the United States has increased 10 X • In today’s economy, with lower oil and gas prices it has become extremely important to be able make informed decisions with the greatest economic benefit • Strict cost control is an overriding concern in most operations, yet there are tangible economic benefits for operators who make the effort to model reservoir performance before they drill. • Spend a ½ day in the Library rather than waste $1mm in the field Simulating Unconventional Assets Example: Fracture Gap • Despite a current oversupply in the market, tight resources are still required to meet demand • Need to fully understand the underlying physics that governs the flow through tight formations. • Determine optimal well spacing and optimal fracture size & spacing. • Size fraces to avoid fracture hits • Crucial to identify the reservoir parameters that will have the most impact on project economics. $250k per frac stage, 6 to 20 stages per well $1.5MM to $5MM per well 0.8bcf * $3.00/mcf * 1,000,000 = $2.4MM lost SPE 119899 : 69% of 389 wells completed in the Barnett study have less than a 10% internal rate of return ! 400 ft gap 11 12 1/21/2021 1/21/2021 Shale Reservoir Properties • Generally Naturally Fractured ▪ Low permeability fractures • Matrix extremely low permeability ▪ Range from micro to nanodarcies • Pore Diameters are extremely small ▪ Range from micro to nanometres Reservoir Characteristics and Hydraulic Fracturing Conventional Gas Shale Gas Shale Gas Tight Oil • Natural Gas Stored in Organic rich rocks • Shale acts as both source / reservoir rock. • Gas in shales is found in two forms: ▪ Free Gas - Gas stored in matrix pore volume • Tight oil formations are heterogeneous and vary widely over relatively short distances. • The amount of oil recovered from single horizontal well may vary, as may recovery within a field or even between adjacent wells. • The API of oil in tight reservoirs can vary greatly from 20 to 50. ▪ Adsorbed Gas - Gas is attached or Adsorbed onto solid organic material in the shale • Tight reservoirs which contain oil with low gas solution sometimes cannot be economically produced • Drive mechanism is solution gas drive Shale Shaly Siltstone Shaly Sandstone 13 14 1/21/2021 1/21/2021 Hydraulic Fracture Treatments Pumping Phase Tight Oil Properties • Permeabilities range from less than 0.1 nD to 1 mD (SPE 167146) but are typically in the range of 1e-3 to 1mD for tight oil Hydraulic fracture resumes in SHmax direction at natural fracture tip • Tight Oil Reservoirs can be modelled as dual permeability or single porosity • Porosity-permeability cross plots show that in general permeability increases with porosity, but the relationship is not strong 10 N Reactivation of natural fractures 10 1 1 0.1 Trace of part of horizontal wellbore with perforation 0.1 0.01 0.01 0.001 0 0.05 0.1 0.15 0.2 0.25 0 0.02 0.04 0.06 0.08 0.1 J.F. Gale, UT, 2008 ~ 500 ft Developing an Unconventional Asset • Horizontal wells: To maximize contact area • Multi-stage fracturing: 10-30 fractures per well Modelling Unconventional Reservoirs and Hydraulic Fractures Physics to be Modelled 15 16 1/21/2021 1/21/2021 Modelling Unconventional Resources: Physics to be Modelled Modelling Unconventional Resources: Physics to be Modelled Reservoir Description • Matrix – intrinsic porosity & absolute permeability • Natural Fractures – dual permeability representation with effective fracture porosity & effective fracture permeability • Propped Fractures – explicitly modelled as part of matrix • Pore Volume Compaction/Dilation – via constant compressibility and/or compaction/dilation tables • Momentum Transfer – Darcy and Non-Darcy (Turbulent) Flow, the latter in the propped fractures PVT • Black Oil (IMEX) – for black oil and dry gas • EoS – for wet gas, gas condensates (lean and rich) and volatile oil Simulation Model Gridding • Logarithmically-Spaced, Locally-Refined, Dual Permeability (LS-LR-DK or Tartan) Grids surrounding the propped fractures ‒ For modelling transient multiphase fluid flow (and heat, if desired) from matrix to natural fractures & from matrix to propped fractures ‒ For modelling non-Darcy flow inside the propped fractures Simulation Model Initialization • Initializing the propped & natural fracture network with water ‒ For modelling flowback of injected fracture fluid Modelling Unconventional Resources: Physics to be Modelled Adsorbed components • Gas phase only – for mostly methane tight/shale gas • Multi-component – for multi-component gases (w/impurities) & liquids Modelling Unconventional Reservoirs and Hydraulic Fractures Diffusion • Multi-component gas • Miscible Gas Injection EOR Modelling Natural Fractures Rock Physics • Tight rock Rel Perm & Cap Press in matrix • Straight Line Rel Perm & no Cap Press for propped & natural fractures 17 18 1/21/2021 1/21/2021 Natural Fracture Modelling in CMG • Reservoir mainly made of low porosity rock called matrix • Natural fractures are high permeability flow channels that can contribute significantly to the flow • For simulation, each grid block will be composed of MATRIX part and a FRACTURE Modelling Unconventional Reservoirs and Hydraulic Fractures Hydraulic Fracture Modelling Natural Fracture Channel Matrix Natural Fracture Modelling in CMG Standard dual-porosity model Fracture Model Scenarios MINC model Dual-permeability model Subdomain partitioning 19 20 1/21/2021 Fracture Model Scenarios 1/21/2021 Modelling Hydraulic Fractures • In the reservoir, the hydraulic fractures have widths in the magnitude of a couple millimeters with very high intrinsic permeabilities • To model this, very fine gridding would be required • With more grid blocks, runtimes will become very large • To reduce the number of blocks and the runtime, the fracture can be pseudoized to a width of 2 ft • Permeability of the hydraulic fractures is replaced with an effective permeability • LS-LR-DK Method (SPE 132093) • Logarithmically Spaced, Locally Refined, Dual-Permeability CMG’s LS-LR-DK (i.e. TARTAN) Grids for Modelling Planar & Complex Geometry Propped Fractures Modelling Hydraulic Fractures • Conventional fractured reservoirs typically can be modelled using standard Dual Porosity/Permeability or MINC Models • Due to the extremely slow pressure transients in shales and other tight reservoirs, flow cannot be accurately described using these standard models • Hydraulic Fractures need to be explicitly modelled to model the flow behavior Planar fractures in SRV Complex fractures in SRV • To model the transients accurately 21 22 1/21/2021 Propped Frac Gridding 1/21/2021 Effective Hydraulic Fracture Perm Qoriginal=Qnew Create LS-LR-DK grids around fractures automatically (Kfwfhf/μ+Kmwmhm/μ)*(dP/dx)=Keffweffhf/μ*(dP/dx) Single Plane Geometry Kfwf+Kmwm=Keffweff Keff=Kfwf /weff+Km Complex Geometry Parameterizing Propped Frac Properties Local Refinement • To correctly capture the transient effects around the hydraulic fractures, fine gridding of the matrix is required Propped Frac Properties: Half-length, Width, Perm, Spacing, Height & Perm Gradient Stimulated Natural Frac Properties: Width, Perm • Local Refinement is used around the fractures to have more accuracy where it is needed • Evenly spaced gridding has too much accuracy far away from the fractures where it is not needed and not enough accuracy close to the fracture • Logarithmic Refinement solves this issue by having more refinement close to the fracture where it is needed and less refinement far away from the fracture SRV Size & Shape: # MS events per gridblock MS Moment Magnitude MS Confidence Value ? 23 24