Advances in Wireless Communication Technology Delivering

2012 Gas Well Deliquification Workshop

Advances in Wireless Communication Technology Delivering:

Enhanced Personal Safety, Increased Profitability, and Reduced Operating Costs.

David J Southern, P. Eng.| Regional Manager | Schneider Electric.| Telemetry & Remote SCADA Solutions

Gas Well Deliquification Workshop

Sheraton Hotel, Denver, Colorado

February 19 – 22, 2012


Before we get started, remember….

….never upset a Backhoe Operator.


...and above all remember, never ever …

…..upset a Backhoe.


Within recent years several new technologies have come along which

truly deliver on the promise of:



Game changing technology: Horizontal Drilling

Horizontal drilling was a real game changer, opening up new and old reservoirs previously thought unrecoverable and are now major producers. Horizontal drilling helped companies be safer, more profitable and reduce operating costs.


Multi-Stage Fracturing of horizontal formations is a real game changer, enabling companies to produce more energy through the same wellsite. Multi-Stage Fracturing helped companies be safer, more profitable and reduce operating costs.

Game changing technology: Multi-Stage Fracturing


By drilling several wells on the same pad site companies can reduce stress on surface roads, reduce operator travel, reduce construction costs, and greatly reduce Rig relocation costs. Multi-Well Pad Sites help companies be safer, more profitable and reduce operating costs.

Game changing technology: Multi-Well Pad Sites


Game changing technology: The Wireless Wellhead

The Wireless Wellhead is a game changing technology that enables Producers and Operators to bring wells on faster at less cost and at less risk to personnel. Well performance data starts streaming during flow-back and throughout the life of the well giving Reservoir Specialists the tools to produce more. The Wireless Wellhead makes life safer, increases profitability, and reduces costs to deploy and maintain remote assets.

Oil & Gas Extraction


•Wire is expensive to purchase

•Wire is expensive to install

•Wire gets stolen

•Wire gets dug through

•Wire can be unsafe

•Wire needs protection

Wire has it’s challenges


•Wire can be bad for the environment

•Wire takes up room

•Wire gets sabotaged

•Wire is restrictive

•Wire requires maintenance

•Wire can kill

Wire has it’s challenges


Wire and Conduit costs have doubled and doubled again….


Wire sometimes disappears …………


Wire is yummy….


Qualified Electricians can be hard to find….

Qualified Non-

http://images.google.com/imgres?imgurl=http://www.electricianscareer.co.uk/images/electrelectrician.jpg&imgrefurl=http://www.electricianscareer.co.uk/electrician-courses-fast-track.htm&h=160&w=160&sz=8&hl=en&start=2&um=1&usg=__BOOPK8_QwfsBFXOePme9k8AWhIc=&tbnid=GDItOTeGgzSAuM:&tbnh=98&tbnw=98&prev=/images?q=electrician+shortage&um=1&hl=en&rls=com.microsoft:en-us:IE-SearchBox&rlz=1I7HPNN&sa=N


……and if there is ever a reason to go wireless on Oil & Gas wellsites, this is it………..


Current Method – Trenching and Backfill

• Flammable, hazardous gases and fluids are buried in same trench just inches away from a potential source of ignition.

• More Labor Intensive • More Materials Required • Scheduling Issues • Project Delays • Frequent Cost Overruns • Heightened Safety Risks


Oil and Water Tanks

Separator

200-250 feet of trenching, metal

conduit, wire, seal-offs, labor

and time.

100-200 feet of trenching, metal conduit, wire, seal-offs, labor and time.

Real World Wireless Wellhead Oil & Gas-Economics


Separator/Treater

Oil and Water Tanks

Flowing or Pumped Well



Column A Column B Alternative Method Accutech Wireless Method Current Method (Wired I/O)

Bid Price Each QTY Extended Bid Price Bid Price Each QTY Extended Bid Price Casing Pressure Transmitter $1,300.00 1 $1,300.00 $500.00 1 $500.00

Tubing Pressure Transmitter $1,300.00 1 $1,300.00 $500.00 1 $500.00

Separator Pressure Transmitter $1,300.00 1 $1,300.00 $500.00 1 $500.00

Separator Temperature Transmitter $1,300.00 1 $1,300.00 $500.00 1 $500.00

Separator Level Transmitter $1,300.00 1 $1,300.00 $800.00 1 $800.00

Water Tank Dual Float Level Transmitter $3,500.00 1 $3,500.00 $1,600.00 1 $1,600.00

Oil Tank Submersible Level Transmitter $2,500.00 5 $12,500.00 $1,600.00 5 $8,000.00

Wireless Base Radio package $845.00 1 $845.00 $0.00 0 $0.00

Cabinet, term blocks, brackets, etc. $100.00 0 $0.00 $2,000.00 1 $2,000.00

Conduit, wire, fittings, seal-offs, brackets, etc. $0.00 0 $0.00 $10,000.00 1 $10,000.00

Installation Estimate w/ Contingency $1,573.00 1 $1,573.00 $10,725.00 1 $10,725.00

Total Remote Monitoring Installed Cost $24,918.00 $35,125.00

Potential Wireless Cost Savings Per Wellsite $10,207.00 Number of well installations in CY2011 25 Total Potential Wireless Cost Savings $255,175.00



Other Considerations.... Column A Column B

Additional Considerations Accutech Wireless Method Current Method (Wired I/O) Electrical Area Classification All Class 1, Division 1 Mix of Class 1, Div 2 and Class 1, Div 1 Intrinsically Safe Yes No Warranty 3 Year parts and labor 1 years parts only Number of Warranties One single manufacturer Around 10 separate manufacturer warranties

Battery Life expectancy Pressure 5 yr, Tank Level 10 yr 3-7 years weather dependant Replacement battery cost (total annualized) $41

Low Battery Warning Yes No Field Instrument Diagnostics from SCADA Host Yes No Operational Risks due to Adverse Weather NONE, no solar power systems Moderate, gray days will deplete batteries

Work Over RIG Issues Low, Easy removal of instrumentation High, Possible damage to instrumentation, conduit & wiring

Haul Truck Issues None None

Cost Escalation Risk due to Inflation Low, relatively inflation proof High, as metal prices and labor rates rise, so will installation costs

Safety Risks Low, relatively little time spent on site

Moderate, more installation time on site has intrinsic dangers and risks

Land Use Impact Low, fast installation Moderate, long installation time creates land use conflict Surface Owner Risks Low, no buried conduit High, due to buried conduit and wire



• Typical multi-well pad

Advances in Wireless Wellhead Communications Assists Oil & Gas Development


• Wireless field sensors at well report to base radio:

1. Casing pressures, 2. Tubing pressures and 3. Braden pressures 4. Plunger arrivals



• Wireless field sensors at separator and vapor recovery unit report to base radio

1. Temperature 2. Level 3. Pressure



• Wireless field sensors on oil and water tanks report to base radio:

1. Water tank levels 2. Oil tank levels



• All wireless field data is collected for on-site control and optimization and then forwarded on to corporate offices for data processing, engineering, accounting, management, operations, etc.



Oil Extraction

The Wireless Wellhead Assists Oil & Gas Development..............

Natural Gas


Wireless Oil Well in North Dakota

1. All Production Volumes, 2. Tubing Pressure, 3. No conduit nor wires. and 4. One day installation


Level Monitoring on Three Oil Tanks

Level Monitoring on Water Tank

(no more stairs to climb in -40F)

Base Radio and Ethernet Long Haul Radio

Casing &Tubing Pressure Monitoring


Drill Here Frac Here Flow-Back Here Produce Here

22 Well Pad in Piceance Basin with zero trenching to the wellheads Wireless Wellsite Monitoring makes SIMOPS safer, more productive, and more economical.

SIMOP: Simultaneous Operations


Single panel manages all pad instruments and measurements. Notice how few number of wires landed…near zero instrument commissioning.


Non-Line of site install to four tanks measuring interface, level and temperature.


Once completed the arrival sensor is installed.


When all wells are completed, the pad is left nice and clean having had zero

trenching to the wellheads. Later, when a well gets a work over, there is high probability the instrumentation will not be damaged – improving the cost of

ownership for this producer.


• Rapid deployment for new and retrofit applications • Plunger Arrival sensor, Pressure Sensor for Tubing, Casing and

Braden Head, Tank Level (produced volumes), Sales Valve Controller, Separator Temp/Pressure/Level.

• Sand erosion and valve positioning can be added

Application:

The Wireless Wellhead

Casing Pressure

Valve Controller with arrival sensor

Tubing Pressure


The Wireless Well - Single Well Solution

The Sales Valve can be located at the well or at the separator


The Wireless Well – Multi Well Solution


All EFM devices are welcome

No Charts, please.

The Wireless Well is GREEN Recycling existing gear

Wellhead Controller


Managing a multi-well pad just got a whole lot safer, smaller and less costly

The Wireless Well – Smaller, More Powerful

WIRED

Same Multi-Wellpad

WIRELESS


Equipment used:

• Variety of manufacturers to choose from. • Field Units are typically Class 1 Div 1, wireless

sensors, self-contained, battery-powered, temperature rated: -40 to +185°F (-40 to +85°C)

• Base radios may support up to 100 field sensors • Range: 600 to 5000 feet • Long battery life: 5-15 years

Advances in Wireless Communications Technology


For local access

For the Operators

For the WORLD

The Wireless Well – Part of the solution


SCADA Summary Screen




SCADA Detail Screen


These technologies include:

Horizontal Drilling, Multistage Fracturing, Multiple Well Pad, ..and now.. The Wireless Wellhead.

Within recent years several new technologies have come along which

truly deliver on the promise of:



So who wants to cut the cord and go wireless?

WIRE

These guys do.

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Feb. 19 – 22, 2012 2012 Gas Well Deliquification

Workshop Denver, Colorado

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– Display the presentation at the Workshop.

– Place it on the www.alrdc.com web site, with access to the site to be as directed by the Workshop Steering Committee.

– Place it on a CD for distribution and/or sale as directed by the Workshop Steering Committee.

Other use of this presentation is prohibited without the expressed written permission of the author(s). The owner company(ies) and/or author(s) may publish this material in other journals or magazines if they refer to the Gas Well Deliquification Workshop where it was first presented.


Disclaimer The following disclaimer shall be included as the last page of a Technical Presentation or Continuing Education Course. A similar disclaimer is included on the front page of the Gas Well Deliquification Web Site.

The Artificial Lift Research and Development Council and its officers and trustees, and the Gas Well Deliquification Workshop Steering Committee members, and their supporting organizations and companies (here-in-after referred to as the Sponsoring Organizations), and the author(s) of this Technical Presentation or Continuing Education Training Course and their company(ies), provide this presentation and/or training material at the Gas Well Deliquification Workshop "as is" without any warranty of any kind, express or implied, as to the accuracy of the information or the products or services referred to by any presenter (in so far as such warranties may be excluded under any relevant law) and these members and their companies will not be liable for unlawful actions and any losses or damage that may result from use of any presentation as a consequence of any inaccuracies in, or any omission from, the information which therein may be contained.

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Feb. 19 – 22, 2012 2012 Gas Well Deliquification

Workshop Denver, Colorado

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