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In Santa Barbara County, Santa Maria Pacific (an exploration and production company) is expanding their cyclic steam project in a diatomite reservoir. The hilly or mountainous topography and cut and fill restrictions have interfered with the company's ideal development plan. The steep hillsides prevent well pad development for about 22 vertical well locations in the 110 well expansion plan. Conventional production performs poorly in the area because the combination of relatively low permeability (1-10 md) and high viscosity (~220 cp) at the reservoir temperature. Cyclic steam injection has been widely used in diatomite reservoirs to take advantage of the diatomite rocks unique properties and lower the viscosity of the oil. Some companies used deviated wells for cyclic steam injection, but Santa Maria Pacific prefers the use only vertical wells for the expansion. Currently, the inability to create well pads above 22 vertical well target locations will result in an estimated $60,000,000 of lost revenue over a five year period. The target locations could be developed with unstimulated deviated or horizontal wells, but expected well rates and expenses have not been estimated. In this work, I use a thermal reservoir simulator to estimate production based on five potential development cases. The first case represents no development other than the cyclic wells. This case is used to calibrate the model based on the pilot program performance and serves as a reference point for the other cases. Two of the cases simulate a deviated well with and without artificial lift next to a cyclic well, and the final two cases simulate a horizontal well segment with and without artificial lift next to a cyclic well. The deviated well with artificial lift results in the highest NPV and profit after five years. The well experienced pressure support from the neighboring cyclic well and performed better with the cyclic well than without it. Adding 22 deviated wells with artificial lift will increase the project's net profit by an estimated $7,326,000 and NPV by $2,838,000 after five years.

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Various models featuring horizontal wells with multiple induced fractures have been proposed to characterize flow behavior over time in tight gas and shale gas systems. Currently, there is little consensus regarding the effects of non-ideal fracture geometries and coupled primary-secondary fracture interactions on reservoir performance in these unconventional gas reservoirs. This thesis provides a grid construction tool to generate high-resolution unstructured meshes using Voronoi grids, which provides the flexibility required to accurately represent complex geologic domains and fractures in three dimensions. Using these Voronoi grids, the interaction between propped hydraulic fractures and secondary "stress-release" fractures were evaluated. Additionally, various primary fracture configurations were examined, where the fractures may be non-planar or non-orthogonal. For this study, a numerical model was developed to assess the potential performance of tight gas and shale gas reservoirs. These simulations utilized up to a half-million grid-blocks and consider a period of up to 3,000 years in some cases. The aim is to provide very high-definition reference numerical solutions that will exhibit virtually all flow regimes we can expect in these unconventional gas reservoirs. The simulation results are analyzed to identify production signatures and flow regimes using diagnostic plots, and these interpretations are confirmed using pressure maps where useful. The coupled primary-secondary fracture systems with the largest fracture surface areas are shown to give the highest production in the traditional "linear flow" regime (which occurs for very high conductivity vertical fracture cases). The non-ideal hydraulic fracture geometries are shown to yield progressively lower production as the angularity of these fractures increases. Hence, to design optimum fracture completions, we should endeavor to keep the fractures as orthogonal to the horizontal well as possible. This work expands the current understanding of flow behavior in fractured tight-gas and shale-gas systems and may be used to optimize fracture and completion design, to validate analytical models and to facilitate more accurate reserves estimation.

A new method for the determination of finely-gridded reservoir simulation pressures has been developed. It is estimated to be as much as hundreds to thousands of times faster than other methods for very large reservoir simulation grids. The method extends the work of Weber et al. Weber demonstrated accuracies for the pressure solution normally requiring millions of cells using traditional finite-difference equations with only hundreds of cells. This was accomplished through the use of finite-difference equations that incorporate the physics of the flow. Although these coarse-grid solutions achieve accuracies normally requiring orders of magnitude more resolution, their coarse resolution does not resolve local pressure variations resulting from fine-grid permeability variations. Many oil reservoir simulation models require fine grids to adequately represent the reservoir properties. Weber's coarse grids are of little value. This study takes advantage of the accurate coarse-grid solutions of Weber, by nesting them in the requisite fine grids to achieve much faster solutions of the large systems. Application of the nested-grid method involved calculating an accurate solution on a coarse grid, nesting the coarse-grid solution as fixed points into a finer grid and solving. Best results were obtained when an optimal number of coarse-grid pressure points were nested into the fine grid and when an optimal number of nested-grid systems were used.

For a stress-sensitive or stress-dependent reservoir, the interactions between its seepage field and in situ stress field are complex and affect hydrocarbon recovery. A coupled geomechanics and fluid-flow model can capture these relations between the fluid and solid, thereby presenting more precise history matchings and predictions for better well planning and reservoir management decisions. A traditional reservoir simulator cannot adequately or fully represent the ongoing coupled fluid-solid interactions during the production because of using the simplified update-formulation for porosity and the static absolute permeability during simulations. Many researchers have studied multiphase fluid-flow models coupled with geomechanics models during the past fifteen years. The purpose of this research is to develop a coupled geomechanics and compositional model and apply it to problems in the oil recovery processes. An equation of state compositional simulator called the General Purpose Adaptive Simulator (GPAS) is developed at The University of Texas at Austin and uses finite difference / finite control volume methods for the solution of its governing partial differential equations (PDEs). GPAS was coupled with a geomechanics model developed in this research, which uses a finite element method for discretization of the associated PDEs. Both the iteratively coupled solution procedure and the fully coupled solution procedure were implemented to couple the geomechanics and reservoir simulation modules in this work. Parallelization, testing, and verification for the coupled model were performed on parallel clusters of high-performance workstations. MPI was used for the data exchange in the iteratively coupled procedure. Different constitutive models were coded into GPAS to describe complicated behaviors of linear or nonlinear deformation in the geomechanics model. In addition, the geomechanics module was coupled with the dual porosity model in GPAS to simulate naturally fractured reservoirs. The developed coupled reservoir and geomechanics simulator was verified using analytical solutions. Various reservoir simulation case studies were carried out using the coupled geomechanics and GPAS modules. / text

A numerical reservoir model was created to optimize CO₂ Huff-and-Puff operations in the Bakken Shale. Huff-and-Puff is an enhanced oil recovery treatment in which a well alternates between injection, soaking, and production. Injecting CO₂ into the formation and allowing it to “soak” re-pressurizes the reservoir and improves oil mobility, boosting production from the well. A compositional reservoir simulator was used to study the various design components of the Huff-and-Puff process in order to identify the parameters with the largest impact on recovery and understand the reservoir’s response to cyclical CO₂ injection. It was found that starting Huff-and-Puff too early in the life of the well diminishes its effectiveness, and that shorter soaking periods are preferable over longer waiting times. Huff-and-Puff works best in reservoirs with highly-conductive natural fracture networks, which allow CO₂ to migrate deep into the formation and mix with the reservoir fluids. The discretization of the computational domain has a large impact on the simulation results, with coarser gridding corresponding to larger projected recoveries. Doubling the number of hydraulic fractures per stage results in considerably greater CO₂ injection requirements without proportionally larger incremental recovery factors. Incremental recovery from CO₂ Huff-and-Puff appears to be insufficient to make the process commercially feasible under current economic conditions. However, re-injecting mixtures of CO₂ and produced hydrocarbon gases was proven to be technically and economically viable, which could significantly improve profit margins of Huff-and-Puff operations. A substantial portion of this project involved studying alternative numerical methods for modeling hydraulically-fractured reservoir models. A domain decomposition technique known as mortar coupling was used to model the reservoir system as two individually-solved subdomains: fracture and matrix. A mortar-based numerical reservoir simulator was developed and its results compared to a tradition full-domain finite difference model for the Cinco-Ley et al. (1978) finite-conductivity vertical fracture problem. Despite some numerical issues, mortar coupling closely matched Cinco-Ley et al.'s (1978) solution and has potential applications in complex problems where decoupling the fracture-matrix system might be advantageous. / text

[pt] A injeção de emulsão óleo-água vem sendo estudada como método de recuperação avançada, levando a um incremento no volume de óleo recuperando através de um controle de mobilidade do fluido injetado e aumento da eficiência de deslocamento de deslocamento do óleo. A aplicação deste ,étodo requer o entendimento do escoamento tanto na escala de poros como na escala de reservatórios. Neste trabalho, o efeito de emulsão no escoamento bifásico é modelado através de curvas de permeabilidades relativas que variam com a concentração de gotas da fase dispersa da emulsão. Estas curvas descrevem dois fenômenos físicos observados nestes escoamentos, o controle de mobilidade, representado pela diminuição da permeabilidade relativa da fase aquosa devido à presença de gostas, e a melhora na eficiência de deslocamento, representada pela diminuição da saturação residual da fase oleosa. O modelo proposto foi implementado em um simulador comercial (STARS-CMG) em uma geometria bi-dimensional com dois poços verticais ( injetor e produtor). A produção de óleo durante o processo de injeção alterada de água/ emulsão/ água é estudado em diversas condições do escoamento com o objetivo de analisar separadamente o mecanismo de controle de mobilidade e da melhoria do deslocamento no processo, determinando as condições ótimas de operações. Os resultados obtidos mostram que a injeção de emulsão óleo-água pode representar uma importante alternativa na produção de óleo como processo de recuperação avançada. / [en] Emulsion injection has been studied as an enhanced oil recovery method, leading to an increase on the recovered oil volume by mobility control of injected fluid and increase of oil displacement efficiency. The use of this method requires understanding the flow both in pore and reservoir scales. The effect of emulsion on the two phase flow is modeled by using relative permeability curves that vary with the concentration of the dispersed phase of the emulsion. Those curves describe two physical phenomena observed on these flows: control of mobility, represented by a lower relative permeability of the aqueous phase due to the presence of droplets and improved displacement efficiency, represented by the decrease in the residual oil saturation. The proposed model was implemented in a commercial simulator (STARS-CMG) in a two-dimensional geometry with two vertical wells (injector and producer). The oil production during alternate injection of water/emulsion/water process is studied with several flows condition with the purpose to analyze separately the effect of mobility control and improvement of the oil displacement in the process and finding the optimum operating conditions. The results obtained show that the oil-water emulsion injection can represent an important alternative in oil production as an enhanced oil recovery method.

Various analytical, semi-analytical, and empirical models have been proposed to characterize rate and pressure behavior as a function of time in tight/shale gas systems featuring a horizontal well with multiple hydraulic fractures. Despite a small number of analytical models and published numerical studies there is currently little consensus regarding the large-scale flow behavior over time in such systems. The purpose of this work is to construct a fit-for-purpose numerical simulator which will account for a variety of production features pertinent to these systems, and to use this model to study the effects of various parameters on flow behavior. Specific features examined in this work include hydraulically fractured horizontal wells, multiple porosity and permeability fields, desorption, and micro-scale flow effects. The theoretical basis of the model is described in Chapter I, along with a validation of the model. We employ the numerical simulator to examine various tight gas and shale gas systems and to illustrate and define the various flow regimes which progressively occur over time. We visualize the flow regimes using both specialized plots of rate and pressure functions, as well as high-resolution maps of pressure distributions. The results of this study are described in Chapter II. We use pressure maps to illustrate the initial linear flow into the hydraulic fractures in a tight gas system, transitioning to compound formation linear flow, and then into elliptical flow. We show that flow behavior is dominated by the fracture configuration due to the extremely low permeability of shale. We also explore the possible effect of microscale flow effects on gas effective permeability and subsequent gas species fractionation. We examine the interaction of sorptive diffusion and Knudsen diffusion. We show that microscale porous media can result in a compositional shift in produced gas concentration without the presence of adsorbed gas. The development and implementation of the micro-flow model is documented in Chapter III. This work expands our understanding of flow behavior in tight gas and shale gas systems, where such an understanding may ultimately be used to estimate reservoir properties and reserves in these types of reservoirs.

Reservoir management, sometimes referred to as asset management in the context of petroleum reservoirs, has become recognized as an important facet of petroleum reservoir development and production operations. In the first stage of planning field development, the simulation model is calibrated to dynamic data (history matching). One of the aims of the research is to extend the streamline based generalized travel time inversion method for full field models with multimillion cells through the use of grid coarsening. This makes the streamline based inversion suitable for high resolution simulation models with decades long production history and numerous wells by significantly reducing the computational effort. In addition, a novel workflow is proposed to integrate well bottom-hole pressure data during model calibration and the approach is illustrated via application to the CO2 sequestration. In the second stage, field development strategies are optimized. The strategies are primarily focused on rate optimization followed by infill well drilling. A method is proposed to modify the streamline-based rate optimization approach which previously focused on maximizing sweep efficiency by equalizing arrival time of the waterfront to producers, to account for accelerated production for improving the net present value (NPV). Optimum compromise between maximizing sweep efficiency and maximizing NPV can be selected based on a 'trade-off curve.' The proposed method is demonstrated on field scale application considering geological uncertainty. Finally, a novel method for well placement optimization is proposed that relies on streamlines and time of flight to first locate the potential regions of poorly swept and drained oil. Specifically, the proposed approach utilizes a dynamic measure based on the total streamline time of flight combined with static and dynamic parameters to identify "Sweet-Spots" for infill drilling. The "Sweet-Spots" can be either used directly as potential well-placement locations or as starting points during application of a formal optimization technique. The main advantage of the proposed method is its computational efficiency in calculating dynamic measure map. The complete workflow was also demonstrated on a multimillion cell reservoir model of a mature carbonate field with notable success. The infill locations based on dynamic measure map have been verified by subsequent drilling.