Reservoir Management - Synergy and Team · •A long-time advocate of synergy and team approach recognized this concept as basic to future petroleum reserves and production. •"synergy

03/01/2018 Dr.M.H.Sayyouh - Cairo University

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Reservoir Management -Synergy and Team


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• Successful reservoir managementrequires senergy and team efforts.

• Success requires multidisciplinary, integrated team efforts.

• The players are every body who has anything to do with the reservoir.


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• Team members must work togetherto ensure development and execution of the management plan.

• By crossing the traditional boundaries and integrating their functions, corporate resources are better utilized to achieve the common goal.


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• All development and operating decisions should be made by the reservoir management team.

• A team member who considers the entire system, rather than just the reservoir aspect, will be a more effective decision maker.


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• It will help tremendously if the person has background knowledge of reservoir engineering, geology, production and drilling engineering, well completion and performance, and surface facilities.


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• The team effort in reservoir management cannot be overemphasized.

• Most companies are carrying on their production activities with a staff much smaller than had existed just ten years ago.


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• With the advent of technology and the complex nature of different subsystems, it is difficult for anyone to become an expert in all areas.

• Therefore, the reduction of talent and the increasingly complex technologies must be offset by an increase in quality, productivity, and emphasis on the team effort.


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A team approach to reservoir management can be enhanced by the following:

1. Facilitate communication among various engineering disciplines, geology, and operations staff by:

(a) meeting periodically.

(b) interdisciplinary cooperation in teaching each other's functional objectives.

(c) building trust and mutual respect.


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2. The engineer must develop the geologist's knowledge of rock characteristics and depositional environment, and a geologist must cultivate knowledge in well completion and other engineering tasks, as they relate, to the project at hand.

3. Each member should subordinate their ambitions to the goals of the reservoir management team.


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4. Each team member must maintain a high level of technical competence.

5. The team members must work as a well-coordinated "basketball team" rather than a "relay team" Reservoir engineers should not wait on geologists to complete their work and then start the reservoir engineering work.


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• For example, it is better to know early if the isopach and cumulative oil/gas productionmaps do not agree rather than finalize all isopach maps and then find out that cumulative production maps are indicating another interpretation of the reservoir.

• Using an integrated approach to reservoir management along with the latest technological advances will allow companies to extract the utmost economic recovery during the life of an oil field. It can prolong the economic life of the reservoir.


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• In summary, the synergism of the team approach can yield a "whole greater than the sum of its parts."


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• Creating a team does not guarantee an integration that leads to success.

• Team skills, authority, compatibility with the line management structure, and overall understanding of the reservoir management process by all team members are essential for the success of the project.


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• A long-time advocate of synergy and team approach recognized this concept as basic to future petroleum reserves and production.

• "synergy means that geologists, geophysicists, petroleum engineers and others work together on a project more effectively and efficiently as a team than working as a group of individuals."


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• Teamwork between reservoir and production operation engineers is essential to water flood project management.

• Team approach to reservoir management is essential and involves the interaction between management, engineering, geosciences, research, and service functions.


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• A full-time interdisciplinary team is assigned to one mature acquisition after another to analyze and identify ways to extract additional production.

• "This keeps the team hungry"


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This constructive approach has proved highly valuable from the discovery and early phases through planning, development, and reservoir management phases, geologists, geophysicists, and engineers work closely together.


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As one early example

• Amoco used a multidisciplinary approach on the East Unit of the North Sea Leman field from the time the field came on stream in 1968.

• The field contained more than 10 Tcf of gas then the world's largest producing offshore gas field.


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• Working in a complex fault system, the company's reservoir engineers worked closely with geologists to "produce an accurate a priori reservoir description."

• The team tested the description against field performance in a 2D fine-grid, single-phase model and refined it with measured pressures from the first six years of production.

• The team gained valuable insight into fault configurations and the relationships of gas in place, permeability, and reserves.


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• Geologists reviewed the locations of faults and reservoir boundaries on the historical map.

• The resulting model successfully predicted pressure for an additional two years.

• The proven accuracy of the model lead to confident planning of future platform and compression requirements, providing more than three years' lead time to install equipment.


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In the more recent case

(Amoco Production Company)

• Teak field offshore Trinidad, the key to reversing production declines was a comprehensive data base created at the beginning of field re-evaluation.

• Amoco assigned a reservoir engineer, geologist, and geophysicist to work closely with operations staff in 1988 to improve the economics of the field.


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• Since 1972, Teak has produced 226 million bbl of oil.

• Production peaked in 1915 at 58,000 B/D, but it dropped 50% by 1988.

• The team compiled data from the field's 16-year history and updated it.


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• Amoco used the data to producedetailed studies beginning with the shallow producing sands downward.

• The team developed conformable, detailed sand structure maps.


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• The team used deviated well cross sections, true-vertical-depth correlation panels, fault-plane maps, and dipmeter interpretations.

• The integrated reservoir modelingresults and production data helped the team boost Teak production 49,000 B/D


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• Traditionally, oil and gas companies tend to manage reservoirs like relay races.

• Geologists hand the field to drilling engineers, who hand it to production engineers, who hand it to reservoir engineers.


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• For example, sometimes pressing lease deadlines can cause incomplete data capture, conversion, and integration.

• Engineers and geoscientists who do not communicate with each other may study only a fraction of the available data.

• The quality of the reservoir model can suffer, which adversely affects drilling decisions and production plans throughout the life of the reservoir.


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• The continental United States can be cited as examples of problems with conventional "relay-team" reservoir management.

• Major producers are abandoning what they consider "mature" fields in the lower 48 states.

• Boston Corp. reported recently that the five largest U.S. oil companies earned an average return of only 4% on investments in the continental United States over the last five years.

• As a result, $14 to $18 billion in oilfield assets is for sale. Many are "mature" reservoirs.


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• Better tools, data, and new technologycan minimize remaining barriers between reservoir management disciplines.

• August 1991 market research found that geologists and engineers spend up to one-half of their time sifting through mountains of information and converting data formats, thus wasting hundreds of man hours every year.


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• Engineers and geoscientists can enter current information compiled in their areas into the shared systems.

• Information available for these data bases includes everything from speculative data and production histories to recently shot seismic and old maps and well logs.

• Access to these data helps the team build and refine a subsurface model from the latest available data and interpretations.


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• Input from petrophysicists and reservoir engineers can help the team check and validate seismic and geologic interpretations.

• Adding other technologies, such as 3D-seismic techniques, can help teams find and exploit new reserves in existing fields.


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• Multidisciplinary teams using the latest technology from the first discovery of a reservoir provide the best possible description of a reservoir's potential recovery.

• Continued efforts to describe the reservoir with 3D-seismic data and to enhance its performance are most valuable.


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• The organization and management ofthe reservoir management team arealso very critical.

• Sound reservoir managementrequires a multidisciplinary teameffort.


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• Who should set goals and makes reservoirmanagement decisions?

• Should the production manager make thedecisions or should they be made by theteam?

• Team members should work underfunctional heads and a production manager,where the functional heads providefunctional guidance and performevaluations, and the production managerprovides project direction and focuses onbusiness needs.


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• In the old (conventional) system, various members of the team (i.e., geologist, reservoir/production/ facilities engineers, operations staff, and others) work on a reservoir under their own bosses/functional heads.


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• In the new/multidisciplinary team approach, the team members from various functions work on a given reservoir under a team leader and sometimes operate as a self managed team.

• The team leader generally provides day-to-day guidance, and occasional functional guidance is provided by the so-called functional "gurus."


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The asset management concept

emphasizes focusing on a field as an asset, and all team members have a primary objective of maximizing the short- and long-term profitability of the asset.

• The team members concentrate on their duties more like generalists than functional specialists.


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• In order to make effective decisions, the production manager has to recognize the dependence of the entire system upon the - nature and behavior of the reservoir.

• It is rare to have someone with expertise in all required areas.

• Reservoir management plan development and implementation are most effective if the team members work together and are involved in decision making.


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• Formation of the team, selection of team members, appropriate motivational tools, and composition of the team should be carefully considered.

• Team leadership, establishment of team goals and objectives, and performance appraisals of the team members are some matters that play a key role in effective reservoir management.


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• Once a team is formed and begins to function, another item of significance is how to sustain team effort.

• To get the ongoing attention by a multidisciplinary team for all major reservoirs requires great commitment by the operating company.


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Model of the team approach

a. Functional management nominates team members to work on a project team with specific tasks in mind.

b. The team reports to the production manager for this project. The team selects a team leader, whose responsibility is to coordinate all activities and keep the production manager informed.


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c. The team members consist ofrepresentatives from geology and geophysics, various engineering functions, field operations, drilling, finance, and so forth.

d. Team members prepare a reservoir management plan and define their goals and objectives by involving all functional groups.


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e. Sometimes conflicting priorities for the team members develop because they essentially have two bosses (i.e., their functional heads and the team leader). These conflicts are generally resolved by constant communication among the team leader, functional heads, and the production manager.

f. The team members' performance evaluation is conducted by their functional heads with input from the team leader and the production manager.


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g. Teams are rewarded recognition/cash awards upon timely and effective completion of their tasks. These awards provide an extra motivation for team members to do well.

h. As the project goals change (e.g., from primary development to secondary process), the team composition changes to include members with the required expertise.

Reservoir Management - Synergy and Team · •A long-time advocate of synergy and team approach recognized this concept as basic to future petroleum reserves and production. •"synergy

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