Optimizing Artificial Lift Through Enhanced Control Systems

Canada is the world’s fifth largest oil producer. This is due in large part to the country’s vast reserves in and around Alberta, which contains the third-largest known oil reserves in the world.

Calgary-based ARC Resources Ltd. has called this oilrich region home for more than 20 years. The company has assets distributed across western Canada and operations that include E&P and development of conventional oil and natural gas.

Just across Alberta’s western border in northeast British Columbia, ARC Resources is one of the largest operators in the Montney region, which is considered one of the best tight gas plays in North America. And it was here that ARC Resources recently decided to begin optimizing the control systems it was using for its large multiwell natural gas production sites. The existing systems in place at these sites didn’t support artificial lift, which would soon be needed to maintain production levels. The systems also presented both expansion and safety challenges that the company wanted to address.

Operations at a crossroad

ARC Resources already had optimization programs at its smaller pads that contained only one to four wells. Control systems in place at these pads supported the use of artificial lift systems to help maintain or increase production as these wells depleted.

Larger pads of five or more wells, however, lacked control systems to support artificial lift systems. As some of these sites approached production milestones of 10 to 15 years, the company knew that it would need to make improvements in the near future.

“We were very successful with using assisted lift to keep production stable in the smaller fields,” said Charlie Kettner, programming specialist for ARC Resources. “We didn’t have the same optimization option in our bigger pads. So our production engineers wanted to find a control solution that would allow us to bring artificial lift to these fields as well.”

The existing controllers were not capable of handling the large amount of integrated operations required to run the entire well pad. As a result, the company had to use multiple controllers hardwired together along with remote terminal units (RTUs). This approach not only made the control infrastructure more complex and thus more prone to mistakes but also limited the amount of information available for control and monitoring.

The use of multiple hardwired controllers also presented safety challenges. ARC Resources relies on its control architecture to monitor toxic and explosive gases and to take actions such as turning on an exhaust fan or blocking wells as conditions dictate. But the controllers could lock up and freeze their outputs and give no indication that there was a fault. This forced the company to add “watch dog” timer hardware to monitor for such conditions.

A ‘canned package’

Kettner reached out to Rockwell Automation to begin discussions about optimization options that would support artificial lift systems at the large multiwell pads as well as simplify control and address safety concerns.

Their talks led them to the ConnectedProduction well manager system from Rockwell Automation, which includes an out-of-the-box Allen-Bradley ControlLogix programmable automation controller (PAC) and FactoryTalk View human-machine interface that requires no custom coding. The PAC gives ARC Resources single-platform control for large sites with up to 32 artificial lift wells and contextualized production information to help operators maintain optimal production levels and troubleshoot issues.

“It’s a canned package,” Kettner said. “You order it, install it and plug in your data to the points it’s looking for, and away you go.”

Kettner and his team decided to pilot the new technology at an eight-well production site named Sunrise near the town of Dawson Creek, British Columbia, before installing it at four other multiwell pad sites.

One of the benefits they first discovered during this trial run was the add-on instructions included in the ConnectedProduction, which helped them save about two days of programming during the installation process. Because the technology uses an open architecture, integration with other vendor hardware at the site was easy.

Enhanced visibility and safety

ConnectedProduction has eliminated the need for multiple controllers and RTUs that were previously in place at the Sunrise site. Now all well pad controls have been consolidated into a single control platform. In addition to simplifying the architecture, this will help lower hardware and software costs for the site.

The system also enables the use of artificial lift systems, including on/off timers and plunger lift systems, and provides visibility into those systems.

“Operators can track events in the Connected- Production solution to see what stage we’re in of the optimization cycle and make better decisions about what to do next,” Kettner said. “Operators can see, for example, that a timer well is not producing anymore and move to the next step of putting a plunger in the hole.”

The new system also is helping ARC Resources enhance safety by reducing the risk of faults going undetected at the Sunrise site.

“Now if something goes wrong with the processor, or if an I/O [input/output] rack comes undone, the ControlLogix platform can fault to a safe state where it shuts down all the processes,” Kettner said. “It takes all the power off the solenoids and essentially results in an emergency shutdown.”

Another benefit of the ConnectedProduction system is that it can support a flow-measurement card within the control panel. This has allowed Kettner to eliminate the use of a separate flow-measurement computer, which is saving his company tens of thousands of dollars at the site.

“We just plug the card into the rack, and it communicates on the backplane,” Kettner said. “It’s given us huge cost savings.”

Looking ahead, Kettner already has orders in to bring the ConnectedProduction system to at least four more large multiwell pads in the area.

“We’ve seen the value of the Rockwell Automation solution and want to bring it to our other sites where we need assisted lift,” he said. “On new pads we’ll implement this right from day one so it’s there and available when it’s needed. And we can just turn it on.”

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New drilling technologies could give us so much oil

New oil drilling technologies could increase the world’s petroleum supplies six-fold in the coming years to 10.2 trillion barrels, says a report released today by market research firm Lux Research.

The most common and controversial technique is hydraulic fracturing, or fracking, in which chemical-laced water is injected to break up subterranean rock formations to extract oil and natural gas. But the Lux report details a host of exotic so-called Enhanced Oil Recovery (EOR) technologies—from solar-powered steam injection to microorganisms—that could be used to extend the life of old oil fields and gain access to so-called unconventional petroleum reserves like oil sands.

“In light of current oil prices, the peak oil hysteria and projection of $300 [a barrel] prices of a few years ago seem overblown – if not outright silly,” the report states. “But in a sense, they were accurate forecasts of what would have happened if EOR technologies had not come online and made unconventional oil reserves – which vastly exceed conventional ones – accessible.”

But don’t ditch your electric car just yet. The development of such technologies is predicated on high oil prices – at least $100 a barrel – to offset the costs and induce a conservative industry to invest in and deploy new methods. And many of the technologies are still young.

Moreover, as we’ve seen with fracking, political opposition to technologies that could pollute the environment and use lots of water could derail their use. And as climate change accelerates, opposition to carbon-intensive extraction of fossil fuels and their expanded use is sure to grow.

Still, here are some of the technologies startups and multinationals alike are pursuing:

Thermal intervention injects steam into wells to extract heavy oils or oil sands. The problem is, it takes a lot of energy to generate that steam, so some oil companies are turning to solar energy instead of natural gas or other fossil fuels. Chevron, for instance, has deployed solar fields built by BrightSource Energy and GlassPoint Solar at old oil fields in California to help recover heavy petroleum.

Chemical EOR injects polymers and alkaline compounds into oil fields to help loosen oil from rock formations and push it into production wells. The China National Petroleum Corporation is the leader in this method, which it is betting will be 20% more efficient than just flooding wells with water to bring oil to the surface. But in the US, expect opposition to introducing large volumes of chemical underground anywhere near water supplies. Some other drawbacks: Chemical EOR doesn’t work well in oil reservoirs where temperatures are high and there’s a lot of salt and sulfur.

Microbial EOR uses environmentally benign microorganisms to break down heavier oils and produce methane, which can be pumped into wells to push out lighter oil. The technology dates from the 1950s but only recently has it been put to limited use. An experiment with microbial EOR in Malaysia, for instance, increased oil production by 47% over five months. But oil and gas engineers are not biologists, the report notes, and may be reluctant to embrace the technology.

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New Oil Drilling Technology Will Soon Spark An Explosion Of Oil

Energy stocks have been tearing higher since the election on bets that the Trump administration will relax environmental restrictions and open more federal lands to oil and gas drilling. Crude oil’s staying north of $50 hasn’t hurt, either.

It is up there in part because OPEC threw in the towel and agreed to production limits. Unfortunately for OPEC, those limits don’t apply to US and Canadian shale producers. And the history of OPEC is that they all cheat like crazy, anyway.

There will be no end to oil production

I think it is entirely possible that we will see oil prices climb somewhat further by mid-year, possibly approaching $60, and then pull back as capped US production comes back online. Look at the chart below to see the wide variation among forecasts of major energy analysts working for the big banks.

I also think that this year, we’ll start to see a new pattern: Production could keep rising even as prices fall. Conventional wisdom says that producers stop pumping at some point when it becomes unprofitable, but I think that is about to change.

New technology will lead to greater production and higher profits

If you are an oil producer—or really, any commodity producer—two things can improve your profit margin: higher selling prices for the resource you produce or lower production costs. Some combination of both works as well.

Now, selling prices are mostly outside the producer’s control, though adept hedging can help. Cost reduction is, therefore, the place to concentrate your attention. Back in 2015, I wrote about new drilling techniques and other technology that promised to bring oil and gas production costs significantly lower.

Now, in the last few weeks, people in the business have told me these technologies are moving rapidly toward deployment. They foresee considerably lower drilling and production costs by the end of this year.

I had a confidential briefing recently about some new energy production processes that are coming online in the oil patch. Let me just say that production from an oil well drilled with these new techniques is getting ready to increase substantially.

In some cases, the amount of oil produced per dollar spent on drilling is going to more than double. There are significant chunks of the petroleum-producing parts of the United States where $40 oil will not be a barrier to drilling and new production.

Eventually—in a few years—these techniques will begin to show up in wells around the world, and there will be an explosion of oil. Even as many oilfields dry up, there will be new fields developed from previously unprofitable sources.

This will have massive economic and geopolitical implications

This technology trend means that the current oil price range may well break lower—perhaps this year, but certainly within this decade—without energy companies losing profits.

Not every company will reap the rewards equally, of course; but the industry as a whole is excited. Energy exploration and production is quickly becoming a technology-driven industry with the US as world leader.

If Trump permits construction of more pipelines and natural gas export terminals, we could see North American exports rise considerably in the next few years.

Obviously, over time, a falling energy price will not be good for OPEC or for Russia. Those lower prices will create geopolitical challenges as well as economic ones. I don’t know how it will all shake out. We will likely see some big, energy-driven changes in the world order in the coming decades.

But that is beyond the scope of my crystal ball.

Source: www,forbes.com

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Nigeria, The First Crude Oil producer in The African Continent

Nigeria, or rather the region of the Niger Delta, is notorious for the continued tensions between local multinationals and guerrillas (and the consequent repercussions on the country's oil activity and crude oil prices) is one of the richest areas of hydrocarbons.

The quantity and quality of these resources have attracted the interests of the major Western companies that have been operating in the oil and, most recently, in the gas sector for decades.

The first crude oil producer in the African continent, member of OPEC, the country oscillates between the sixth and the eighth position as a world exporter and is the fifth supplier of the United States, while the recent results obtained under the NATURAL GAS liquid prelude to a protagonist future also on this market.

Nonetheless, over 60% of Nigeria's 150 million people live in an endemic poverty stash, with less than a dollar a day.

A situation of marginalization and exploitation to which the institutions could not answer - complicit also the corruption of a political class more attentive to their own personal interests than to the needs of the population - and who is degenerated into rebellion and violence perpetrated against the foreign oil installations and Western technicians, by local militias fighting in the name of the emancipation of their land and direct control over their resources.

In a descriptive and accessible way to everyone, the book by Agata Gugliotta, "Nigeria, whose resources? Oil and gas in the Niger Delta "reconstructs the economic and political life of Nigeria seen through black gold, the resource that still hinders the way of being a state enslaved to the needs of private capital; contextualizes the motives and developments of a revolt that, overwhelmingly overwhelmingly over time, has just recently swung to the backdrop of the media; analyzes what might prove to be a ransom for the country, or, conversely, an accelerator of the crisis: the exploitation of gas resources.

Burned in torch for decades, gas - considering the magnitude of RESERVES on site and its growing role in the international energy landscape - could offer the country a new stage of development and create opportunities to get out of the economic crisis and the climate of violence which attracts him.

But regardless of the time and the uncertainties related to the development of the gas sector, the economic and social degradation, the ' pollution of air, water and land every day that the Nigerian population is forced to suffer, they require urgent attention.

On the other hand, as the pages of this page show - written in a delicate but acute civil passion - the conflict that has bloomed Nigeria for a long time is likely to get stuck further, leading to a collapse of an economy already on the brink and making it increasingly difficult to see the presence and the " activities of Western multinationals.

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CHINA ENERGY INVEST 84 BILLION DOLLARS IN AMERICAN SHALE GAS

In the framework of all the economic agreements signed between USA and China on a recent visit to Beijing by US President Donald Trump for a total of $ 250 billion, the most 'heavy' in terms of value, with 84 billion concerning natural gas.

According to reports from Reuters, China Energy  Investment has signed a Memorandum of Understunding (MoU) for $ 83.7 billion in 20 years of investment by the Chinese state corporation in West Virginia in relation to projects energetic, chemical, and gas shale.

Trump's promise is also the first international agreement signed by China Energy, which was only recently formed through the merger of China Shenhua Group, China's leading coal-fired power producer, and China Guodian Corp., one of the top 5 energy utilities of the country. China Energy employs about 326,000 employees alone, more than four times the entire workforce involved in the coal-fired power industry in the United States, and the MoU in question witnesses its willingness to reduce the coal's weight in the economy in favor of greater use of other resources, such as natural gas.

According to the West Virginia State Department of Commerce, Reuters quoted Chine Enery as the largest investor of nearly $ 84 billion, will cover several projects in various fields: electricity generation, chemical production, manufacturing and LNG storage in underground.

The value of this single agreement exceeds the full GDP of West Virginia alone, which in 2016 amounted to $ 73.4 billion.

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Fracking, thousands of spills and accidents in US oil and gas wells

Spills of polluted fluids and chemicals from 16% of unconventional hydrocarbon wells

According to the study of "Unconventional Oil and Gas Spills: Risks, Mitigation Priorities, and State Reporting Requirements" published by Environmental Science & Technology by a team of US researchers led by Laureen Patterson of the Harvard Law School's Environmental Policy Initiative, the situation of the pollution generated by the USA fracking wells is serious: every year, from 2 to 16% of oil and gas wells exploited by the fracking technique in Colorado, New Mexico, North Dakota and Pennsylvania there have been spills of hydrocarbons, water filled with chemicals, fluids of hydraulic fracturing and other substances. The largest spillage tested by the study resulted in the leak of 100,000 liters of polluting liquids.

The study dealt with unconventional oil and gas spills in 31,481 wells operated by fracking technique in the 4 US states between 2005 and 2014, identifying 6,648 spills over the past 10 years. In all states, the first three years of a well's life, during drilling and hydraulic fracturing, have had the highest production volumes but also the highest risk of spillage. A significant part of the spills (from 26% in Colorado to 53% in North Dakota) occur in wells that have suffered more than one spill, "Which suggests that wells in which spillages have already occurred deserve more attention," they say researchers.

Figures that worsen many of the previous study, "Environmental Impact Assessment of Hydraulic Fracturing for Oil and Gas on Drinking Water Resources" of the Environmental Protection Agency (EPA) on fracking in 8 US states between 2006 and 2012, which had concluded that there were 457 spills.

Patterson, interviewed by BBC News, explains why this strong difference: "The EPA has only looked at spills during the same process of hydraulic fracturing, which take place only in a period ranging from a few days to a few weeks. We have investigated spills in unconventional wells from the time of perforation throughout the production, which could last decades. "

In North Dakota, there were 4.453 accidents 

recorded

 , much more than in Pennsylvania, Colorado and New Mexico, and this can be explained with the different types of reporting. In North Dakota there must be reported any spill over 42 gallons, while in Colorado and New Mexico starts from 210 gallons.

Most of the spills occur during the first three years of wells activity and about 50% of spills occur from the pipelines for the transport of polluted fluids.

"The causes are quite different," says Patterson. "Equipment failures are the major factor, loading and unloading of trucks with material is a far more common human error than in other places."

. Researchers are convinced that "making state data on spills more consistent and accessible could provide stakeholders with important information on where to target efforts to identify and prevent 

future

 losses. However, reporting obligations differ between states, which requires considerable effort to make the data usable in order to be able to analyze them. "

Another author of the study, Kate Konschnik, also of the Harvard Law School, concludes: "Analysis like this is really important to defining and reducing the risks for water supply and human health. Writing state regulations for reporting these factors in mind is crucial to ensuring that correct data is available in the industry, the states and the research community, and in an accessible form. "

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