Combining optimization technology with an integrated business model often leads to innovative and higher-value solutions. An integrated business model aiming at production optimization serves the purpose. Recently developed optimization resources have contributed significantly to raise the level of production.

With the exponentially increasing petroleum demands and the prices making record highs quiet frequently it becomes mandatory for the operators to optimize the production volumes. ‘Optimization’ is viewed as a razor-edge as the average costs associated with production rises steeply after a certain level of production. More simply, an optimal level of production is that at which the profits are the highest.

The constraints: The factors that are a hindrance to optimal production are largely internal in nature. The quality of the well, that is determined by the sub-surface characteristics (like that of rocks, water-flood direction and presence of sand or absence thereof) play a very prominent role in estimating the total extractable resources. Apart from that, carrying capacities of the pipeline, handling capacities at the surface, extent of economization of the entire production process and safety standards also play a significant role in maximizing the production and minimizing costs. Practically, all of the listed factors jointly determine the optimal level of production.

The Solutions: The operators have taken a holistic approach towards maximizing the production and minimizing the cost at the same time. Extracting maximum possible resources from the wells (tantamount to increased well-life) is of primary concern but that should be complemented with improved surface logistics. The methods of optimization have undergone a radical change in past few decades. The operators have graduated from using a graphical method called equal-slope allocation method to advanced lifting systems and computer simulations. The solutions are mainly aimed at reducing the per barrel production costs and increasing the overall production.

Advanced lifting systems that can be implemented in artificially lifted wells involve high capacity gas handling capacities that prevent the gas from breaking-out from the fluid and hence increase the production. The lifting systems also have a real-time multi-location well monitoring system in place collecting vital data to facilitate recommendations. The advanced lifting systems score above the ordinary lifting systems mainly because of  more efficient utilization of the expensive gas and high compression costs. The gas allocation problems are also addressed to in near real-time because of the continuous monitoring of the well, equipment and pressure. The core advantages of the advantages lie in the reduced well downtime and identification of the possible operational hazards.

Computer Simulations that are jointly monitored by economic analysts, geoscientists and engineers, provide significant insights into the behavior of the well under changing conditions. The simulations have moved on from their ‘run’ on time consuming and expensive supercomputers to faster and cost effective intel platforms. The intel systems also score higher in terms of the data handling capacities. Operators prefer systems that take complete a run overnite and thereby quicken the decision making process. Furthermore, the newer systems provide more accurate results, better understanding of extractable reserves enabling timely reactions to ever changing market conditions and significantly lower total cost of ownership is the best part of it all. 

 - The Global Energy Talent Editorial Team