The 2024 SPE Artificial Lift Conference and Exhibition-Americas will bring E&P innovators from major IOCs, NOCs, and independent operators together to exchange ideas to advance technical knowledge in artificial lift applications for unconventional shale developments.
2024 SPE Artificial Lift Conference and exhibition
learnings from successful permian high-pressure gas lift installations
Kevin McNeilly - BP America
Larry Harms - Optimization Harmsway LLC
Ryan Reynolds, Will Nelle, & Steve Schwin - Estis
Abstract:
Making high rates reliably with low costs from unconventional wells remains challenging. In 2017, SPE 187443 asked whether there was an opportunity to do this with high pressure gas lift (HPGL). In 2019, HPGL showed rates comparable to ESP’s (SPE 195180). This paper presents results/learnings from HPGL installations in production, costs vs. ESP modelling, kickoff and operating pressure, tubular/BHA/facilities design, installing tubing day one, slugging mitigation and electric vs. gas units.
Despite an estimated 3000 HPGL installations in the last 7 years, no results on field performance have been documented except those previously reported for a single well in 2019. Extensive design, modelling, and field data from 5 wells are analyzed and shared along with related economics. Additionally, general observations are provided from operations at hundreds of HPGL installations on many important aspects of HPGL design, implementation and continuing operations to help other operators to apply this useful artificial lift method more efficiently and effectively in the future.
The results show that HPGL wells can be produced at high rates comparable to ESP’s (dependent on well and reservoir conditions) with less complexity, failures and downtime. Also, economics for HPGL are attractive compared to ESP’s. Further significant results and conclusions are that well tubulars are readily modelled to predict/optimize rates, facilities can easily be designed to allow maximum flow rates/ mitigate slugging, HPGL wells are simple to optimize using changes in injection rates while monitoring surface pressures and electric units are found to have substantial benefits when good line power is available.
Field results and learnings from multiple HPGL well operations as well as detailed economic data have not been shared to date. The information presented here will extend the industry’s knowledge and ability to evaluate and apply this effective artificial lift technique as well as compare its economics to ESP’s.
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Click the link below to request access to the presentation slide deck that will be made available in the weeks following the SPE ALCE show.
High-pressure gas lift (Hpgl) as an alternative to electric submersible pumpS (esp) in wolfcamp unconventional wells. an operational, economic, and production performance comparison
Panaglotis Dalamarinis, Craig Hons, Stephen Fusselman, & Isaac Reese - DG Petro Oil & Gas
Steve Schwin, Will Nelle, & Ryan Reynolds - Estis
Abstract:
Determining artificial lift options in mid to late-life unconventional wells is paramount to the economic success of hydrocarbon recovery. This paper will compare two different artificial lift methodologies (HPGL & ESP) in wells in the same formations. Key comparisons of economics (CAPEX/OPEX), operational limitation, and ultimate hydrocarbon recovery between the two lift methodologies will be presented.
HPGL is known for its’ operational advantages such as its high tolerance for solids production, high gas-liquid ratios (GLR), and its’ overall versatility. Two wells targeting the same Wolfcamp A zone were converted from conventional gas lift to HPGL and ESP. This project’s objective was to test HPGL’s performance and economic viability in order to be utilized for future workover operations in the area. A year’s worth of production, economic, and operational data will be presented in this paper.
In the first nine months after the initial lift installation, the well at which the ESP was installed suffered two ESP failures due to production solids causing equipment damage. The average run-life of each ESP was approximately 50 days. During the same time, Well #2 (on HPGL) continued producing with no downtime and minimal decline when compared to initial IP rates. After 9 months of production operations, the HPGL well outperformed the ESP well in terms of cumulative production. More importantly, the capital and operating cost per BOE produced between the two artificial lift systems was substantially lower in the HPGL well. Similar issues occurred in a third well (Well #3 Wolfcamp B formation) in the field. This time the ESP was replaced with HPGL- achieving better production performance compared to the ESP.
The operational simplicity and lower capital/operating costs of the HPGL system proved that it can be a competitive alternative to ESPs and Conventional Gas Lift in unconventional wells (Wolfcamp A & B formations). Considering that HPGL can be installed at the early production life and be the lift system of choice for early to late life of a well makes it an attractive option for production sustainability of wells that traditionally experience high decline rates and downhole equipment failures.
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Click the link below to request access to the presentation slide deck that will be made available in the weeks following the SPE ALCE.
High-pressure gas lift optimization using nodal analysis
O. Abdelkerim, S. Leggett, & J. Lu - Texas Tech University
Will Nelle - Estis
Abstract:
This study seeks to explore the potential benefits of high pressure gas lift (HPGL) optimization. We will compare HPGL optimization with constant injection rates evaluating the potential uplift in oil production and profitability across diverse well and reservoir conditions.
The methodology integrates nodal analysis simulation with economic analysis to optimize HPGL rates in tubing and annular flow. Initially, the study employs Prosper to create a baseline model representing average well and reservoir conditions in the Permian Basin. Subsequently, it simulates diverse well conditions (e.g., production rates, tubular configurations) and reservoir characteristics (e.g., pressure, productivity index), aiming to identify the most profitable gas injection rate considering varying oil prices and gas injection costs. Extensive sensitivity analyses further explore how all these various factors influence HPGL optimization, ensuring a comprehensive understanding of its efficiency and profitability.
This comprehensive study has shown significant results and insights. The implementation of HPGL rates significantly enhanced oil production and profitability compared to traditional constant gas injection rates. The study revealed that the gas injection rate that optimizes oil production does not always align with the gas injection rate that maximizes profits. The most economically efficient gas injection rate was identified by addressing the additional revenue from the incremental oil output against the costs associated with gas injection. Sensitivity analysis further highlighted the significant influence of various well and reservoir conditions on the efficiency of HPGL. This underlines the complexity of HPGL optimization, which demands a balance between technical feasibility and economic practicality. Additionally, the research uncovered that specific tubular configuration led to higher oil production and profitability when employing HPGL in unconventional wells and producing oil through the annulus, compared to the conventional method of producing oil through the tubing. This study suggests great potential for innovative approaches in HPGL strategies, offering promising avenues for enhancing oil recovery and financial returns in the petroleum industry.
This study intends to serve as a roadmap for HPGL operators to evaluate the incremental oil production and profits achievable in various well and reservoir conditions. Additionally, it introduces a direct method for single-point HPGL operators to estimate bottom hole pressure from measured surface injection pressure, surpassing the accuracy of traditional multiphase fluid correlations, which often rely on uncertain well tests and flow parameters, thus offering a more reliable approach for HPGL operations.
Download:
Click the link below to request access to the presentation slide deck that will be made available in the weeks following the SPE ALCE show.
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