Essays on Developing Petroleum Engineering Case Study

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The paper "Developing Petroleum Engineering " Is a wonderful example of a Management Case Study. Operated by Big Oil and Gas (BOG) and Vulture Exploration and Production, Albatross Field is situated in the Central Graben region of the North Sea, about150 miles offshore Aberdeen, Scotland. The field has four platforms, dubbed Albatross A, B, C, and D. However, the field is mature and is in the last part of its commercial life. The oil production field is on the verge of natural decreased production levels because of maturation coupled with the aging of production facilities.

Among the biggest challenges facing Big Oil and Gas (BOG) and Vulture Exploration and Production Ltd is developing and implementing new technologies to facilitate recovery from the mature fields and extension of the life of the aging fields. The two firms seek more effective technologies for managing the available assets and boosting performance, future development, and cost reduction. This report assesses the various alternatives available for developing the outlying Herring and Halibut fields and redeveloping the Albatross Field. Emphasis is placed on the new technologies that can be used to increase the existing production levels, while at the same time keeping the operating expenditure (OPEX) at minimal.

The ideal concepts are also suggested. The potential of using the new technologies Several methods can be used to increase production over the current levels, reduce Capex and Opex over the plan period and Leverage the existing assets at Albatross. These include de-pressurizing of the Albatross reservoirs, infill drilling by targeting untapped or un-drained attic oil and compartmentalized accumulation and developing the satellite fields. Increasing production over current plan levels Permeability homogenization and de-pressurization From the case, it can be argued that Albatross Field is made up of weakened sandstone material.

Since weak sandstone tends to have a greater loss of conductivity, it is critical to note that reducing rock permeability because of loading is relative to the initial value. This is since permeability will be reduced leading to permeability homogenization (Standness et al. 2005). Additionally, since it is clear that the production of oil at Albatross is by water-flooding, this would result in progressively increased water-oil-ratio (WOR), which can lead to abandoning the field.

However, once the water injection is stopped and the reservoir generates through depletion, the oil production rate is achievable at economical rates. Implementing de-pressurization is therefore crucial as it will promote larger fluid viscosity, fluid saturation, and phase mobility. It can also compact rock (Standness et al. 2005). Consequently, Oil and gas production rates at Albatross Field can be increased and maintained once the water injection is halted and the reservoir generates oil by depletion. This technique has been tried at Brent Field in 1992, where de-pressurization was used to boost oil and gas production.

The technique entails decreasing the pressure in the field to just under the bubble point. This facilitates the breakout of solution gas, which increases the recovery of gas from the production wells (Buller et al. 2004). Despite this, the technique has underlying shortcomings. It will require a high initial Capital expenditure (Capex) for the conversion of 3 of the 4 platforms at Albatross to low-pressure systems. Additionally, because of the reservoir pressures that are low, the infill wells will have to be drilled through the highly depleted zones of nearly 4000 psi differential.

This can cause substantial complications due to lost circulation.

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