Decline Curve Analysis Figure: A production record of an abandoned well and the causes of changes in production rate DCA Principle • The principle of the decline curve method is to find a mathematical relationship that fits the observed rate-time graph and then to apply this relationship to extrapolate the graph in the future and thus make predictions. • Extrapolating the apparent trend until the economic limit assumes that whatever causes controlled the trend of a curve in the past will continue to govern its trend in the future in a uniform manner. • This extrapolation procedure is therefore strictly of an empirical nature and a mathematical expression of the trend based on physical considerations of the reservoir can be set up only for a few simple cases. Purpose of Decline Curve Analysis (DCA) Using Decline Curve Analysis (DCA) method, the followings can be determinedGIIP (matured field) Prediction of Oil and Gas recovery Reserves of a well with the economic analysis, Economic production rate, Remaining productive life of a well or the entire field. Individual well flowing characteristics such as formation permeability, skin Traditional DCA Analysis • Production decline analysis is a traditional means of identifying well production and predicting well performance based on real production data. • DCA is a graphical procedure used for analyzing declining production rates. A curve fit of past production performance is done using certain standard curves. This curve fit is then extrapolated to predict potential future performance. • It is a basic tool for estimating recoverable reserves. Conventional or basic decline curve analysis can be used only when the production history is long enough that a trend can be identified. • Decline curve analysis is an Empirical Method (method based on observations) that is commonly used the oil and gas Industry. • DCA models are related to decline rate equation (Arps, 1945): Assumptions and Limitations Assumptions 1. 2. 3. 4. Drainage Area is constant Constant FBHP Skin is not changing PSS flow/ Boundary dominated flow. The production must have been stable over the period being analyzed . 5. Not applicable for transient flow 6. change in production conditions (infield development wells could reduce the current drainage area). Limitations • Any workover/ stimulation will affect the results • A large number of data is required • Correct production data is required • Changing choke size will affect. • Constant bottom hole pressure (BHP). If BHP changes, the character of the well’s decline changes. Factors Effect Decline Curve Analysis • • Decline curves can be characterized by three factors – Initial production rate or the rate at some particular time – Curvature of the decline – Rate of decline These factors are a complex function of – Reservoir parameters: porosity, permeability, thickness, fluid saturations, fluid viscosities, relative permeability, reservoir size, well spacing, compressibility, producing mechanism and fracturing – Well bore parameters: hole diameter, formation damage, lifting mechanism, solution gas, free gas, fluid level, completion interval and mechanical conditions – Surface handling facilities The factors that affect the decline in gas production rate arei. Reduction in average reservoir pressure ii. Increases in the field water cut in water drive fields Decline Curves Decline curve analysis is usually conducted graphically, and in order to help in the interpretation. • The equations are plotted in various combinations of "rate", "lograte", "time," and "cumulative production". • The intent is to use the combination that will result in a straight line, which then becomes easy to extrapolate for forecasting purposes. • The decline equations can also be used to forecast recoverable reserves at specified abandonment rates. Arps Decline Curves Arps took many observations and concluded that the decline in the oil production rate, qo, over time from actual oil reservoirs could be described by the equations: where the decline rate, D, is a time dependent function: where qi = initial oil rate (neglecting transient decline), volume/time q = rate at time t, volume/time Di = decline constant, time-1 b = decline exponent. Arps Decline Curves • D = continuous production decline rate at time t (1/time) • If t = years: Da= annual continuous production decline rate (1/year) • If t = months: Dm= monthly continuous production decline rate (1/month Arps observed that production data can be fitted to equation with qi, D, and the coefficient b, where b can represent: 1. exponential decline: b = 0 2. hyperbolic decline: 0 < b < 1 3. harmonic decline: b = 1. With Arps Decline Curves Exponential Decline (b=0) Hyperbolic Decline (0<b<1) Harmonic Decline (b=1) Exponential Decline (b=0) If b=0,, D=Di=constant, and we can integrate This equation is referred to as Exponential Decline because of the presence of the exponential term. We can also develop a rate cumulative production (qo−Np) relationship by noting that: Multiplying by dt and integrating results in: Exponential Decline (b=0) It is used to make future well forecasts. It is a straight line in Np with a slope of −D Exponential decline is most often associated with the Rock and Fluid Expansion Drive Mechanism. In exponential decline, we have two parameters, qoi and D, with which to match the field data. First, if we know the Abandonment Rate for the reservoir or well, qo ab, (rate at which the revenue from the oil sales would pay for the operating expenses of the reservoir or well), then we would have: The volume of oil that can be recovered from a reservoir or well with no regard to the economics is called the Estimated Ultimate Recovery, or EUR, of the reservoir or well. We can determine the EUR by simply allowing the rate from reservoir or well to decline to 0 STB/day production rate (infinite time). That is: A semilog plot of rate vs time will result in a straight line if the production rate decline is accurately approximated by the exponential model. Abandonment time For Gas Abandonment time Types of Decline Nominal Decline • Nominal Declines refer to the instantaneous decline rate . • Nominal decline is a continuous function and it is the decline factor that is used in the various mathematical equations relating to decline curve analysis. • For exponential decline it is a constant with time. • The nominal decline factor d is defined as the negative slope of the curve representing the natural logarithm of the production rate q vs. time t. Effective decline • Effective Decline – the effective decline rate is a stepwise function where each step represents the reported production. - It is the drop in production rate from qi to q1 over a specific time period. •De is the effective decline rate = the decline rate over a time period. •De is a constant only for constant percentage or exponential decline. •De decreases with time for hyperbolic and harmonic decline Effective decline and Nominal decline For exponential decline, the relationship between nominal and effective decline factors can easily be derived. From the definition of effective decline rate, Applicability of Exponential Decline • Types of reservoirs whose declines frequently follow the exponential model are depletion drive: 1) 2) 3) oil reservoirs above bubble point pressure, oil reservoirs below bubble point pressure, low pressure gas reservoirs. Example Using the data in figure, • Estimate the production rate at the beginning of 2007 using both nominal and effective decline factors, and compare the results with the field data. • Estimate the cumulative production between 1/1/2007 to 1/1/2012 Solution Assuming a time period of one year and using the endpoints of 2004, the effective decline factor is The nominal decline factor can be determined using Eq Using the nominal decline factor the production rate three years later (beginning of 2007) is estimated to be: Similarly, we can use the effective decline factor by recalling that the rate after each year is only 69% of the previous year’s value. Solution The production rate at the beginning of 2012 is Therefore the cumulative production becomes, Hyperbolic Decline (0<b<1) If b is in the range, 0<b<1, then the rate-time relationship: While a second integration with respect to time results in the rate-cumulative production relationship: When the constant b is in the range 0<b<1, we refer to the resulting production decline as Hyperbolic Decline. In hyperbolic decline, we have all three parameters, qoi, Di , and b , with which to match the field data Hyperbolic-decline curve analysis is much more complicated than exponential or harmonic Hyperbolic Decline (0<b<1) Both the constants Di and b must be determined for a hyperbolic decline model. Unfortunately, no direct linear plot can be made, and the two constants must be determined by trial and error Hyperbolic trial and error method to determine coefficients Harmonic Decline (b=1) If b=1, then the rate-time relationship: While a second integration with respect to time results in the rate-cumulative production relationship: In harmonic decline, we have two parameters, qoi and Di, with which to match the field data Sometimes the production decline factor is not constant but decreases proportional with the production rate. This behavior is called harmonic decline and can be expressed by: Applicability of Harmonic Decline Types of reservoirs that are sometimes best approximated by the harmonic model are: (1) edgewater drive in a viscous oil reservoir; (2) depletion-drive oil reservoir near the final stages of its life. Therefore, a depletion-drive oil reservoir is sometimes best modeled by exponential decline for most of its life, but by harmonic decline for later stages. • If the harmonic model had been used in Figure above example, forecast the rate on 1/l/2012 from the rate on 1/l/2007, a recovery between 1/l/2007 and 1/1/2012 of: Comparison This figure illustrates why harmonic decline leads to an infinite EUR – the production can never achieve a zero rate and the area under the curve (Np) becomes infinite Example Cartesian Coordinate Semi log Cartesian Coordinate Semi log Production decline curves Way of Decline Curve Analysis 1. Conventional analysis techniques 2. Production decline type curves Advanced Decline Curve Analysis Advanced Production Data Analysis & Forecasting Transient Flow • Transient Flow – Flow within a reservoir has not reached the reservoir boundaries. Pseudo Steady State Flow Pseudo Steady State (PSS) – Flow within a reservoir has reached the reservoir boundaries. Boundary dominated flow. No flow boundary Steady State Flow FETKOVICH DECLINE ANALYSIS Fetkovich in 1980 laid the foundation for log (q) – loq(t) type curve matching by combining both the transient and depletion solutions into a single graph . This novel approach resulted in a systematic method of evaluating well and reservoir properties and proved to be a powerful diagnostic tool. To develop the type curve, new dimensionless terms were defined. Definitions of Dimensionless Variables: FETKOVICH DECLINE ANALYSIS The steep-decline behavior (low reD value) during the transient flow period can be attributed to either a successful well-stimulation; e.g., high negative skin, or to a small drainage area. Conversely, a gentle decline suggests a damaged well and/or large drainage area. ADVANCED VARIABLE RATES/PRESSURES • The production decline analysis techniques of Arps and Fetkovich are limited in that they do not account for variations in bottomhole flowing pressure in the transient regime, and only account for such variations empirically during boundary-dominated flow (by means of the empirical depletion stems). In addition, changing pressure, volume, and temperature (PVT) properties with reservoir pressure are not considered for gas wells. • Blasingame and his colleagues have developed a production decline method that accounts for these phenomena. • Blasingame’s improvements on the Fetkovich style of production decline analysis are further enhanced by the introduction of two additional typecurves which are plotted concurrently with the normalized rate typecurve. These 'rate integral’ and 'rate integral derivative’ typecurves aid in obtaining a more unique match. The derivation of these will be discussed in a later section Gas Reservoir Exponential decline (constant percentage decline) For oil: A plot of production rate versus cumulative production indicates a straight line trend For Gas: Abandonment time Differentiating with respect to time But So The nominal decline rate D d (ln q) 1 dq dt q dt Rate time relation From the definition of the nominal decline rate By integrating over time t Rate cumulative relation Taking logarithm Example Problem:01 constant percentage decline Problem:02 constant percentage decline Production Per Year Harmonic decline Differentiating with respect to time Eliminating alpha from the above two equations Rate time relation Rate cumulative relation Integrating the equation We get In terms of rate of production Relation between nominal and effective decline Abandonment time Hyperbolic decline When t=0 Putting the value of c in the above equation (1) Rate time relation From and We get (2) Comparing equation 1 and 2 we get b=0 yields constant percentage decline b=1 yields harmonic decline Thus the limits of the hyperbolic decline constant are Rate cumulative relation Abandonment time Relation between nominal and effective decline Curve fitting procedure Problem:03 Q vs. t on semi log graph paper Q vs. Gpd on semi log graph paper