Jeopardy Exam 3 Review Slides

Question 1

True or False: In depletion drive systems, oil recovery rates are very low, as low as 5% to 30%.

Answer 1

True

Question 2

True or False: Dissolved gas drive and gas-cap drive maintains reservoir pressure higher and longer than water drive, allowing for high recovery rates.

Answer 2

False

Question 3

At 5478 feet, the initial reservoir pressure is approximately 3200 pounds per square inch. Is the reservoir overpressured, underpressured, or normally pressured (assume a leniency in data of about 3%).

Answer 3

_Overpressured _

Question 4

Describe the difference between absolute permeability and relative permeability.

Answer 4

Absolute permeabilty is the permeability with reference to a single fluid, while relative permeability is the permeability with respect to multi-phase flow (i.e. because permeability is an area, two fluids cannot occupy the same flow space).

Question 5

True or False: Unconventional reservoirs account for less than 30% of total US production.

Answer 5

False, Unconventional reservoirs account for 46% of total US production.

Question 6

What are decline curves?

Answer 6

Decline curves are a plot of producing rate versus time and they are used to extrapolate future production rates and are independent of reservoir properties.

Question 7

Using the expected flow rate equation and Monte Carlo Simulation, What variable allows the greatest change in well flow for the investment cost?

Answer 7

Permeability is the variable that allows the greatest change in well flow for the investment cost.

Question 8

Fill in what happens in the system for a water drive oil reservoir. Reservoir Pressure-Reservoir Production Rate-Producing GOR-Water Production-Well behavior.

Answer 8

Remains high, oil rate drops off slowly but total fluid rate remains high, remains low, starts early and increases continuously, flow until water reaches well.

Question 9

What sector utilizes the most US produced natural gas?

Answer 9

The Industrial Sector utilizes the most US produced natural gas.

Question 10

What is a TCF?

Answer 10

a TCF is a unit of measurement of natural gas. and It is equivalent to 1 billion MCF or 1,000,000,000,000 standard cubic feet of gas.

Question 11

Fluid flow in the reservoir will be determined by___________,____________, and ________________.

Answer 11

Fluid flow in the reservoir will be determined by _permerability systems, pressure systems, and sturctutral and stratigraphic features. _

Question 12

There is a reservoir being stimulated. Testing shows that vertical stresses in the reservoir are greater than that of the horizontal stresses. After hydraulic fracturing, the fracture aims in a __________ direction. The well should be drilled in the ________ direction in order to maximize efficiency.

Answer 12

There is a reservoir being stimulated. Testing shows that vertical stresses in the reservoir are greater than that of the horizontal stresses. After hydraulic fracturing, the fracture aims in a vertical direction. The well should be drilled in the horizontal direction in order to maximize efficiency.

Question 13

Half of all natural gas consumed today is produced from wells drilled withing the last _______ years.

Answer 13

Half of all natural gas consumed today is produced from wells drilled withing the last 3.5 years.

Question 14

What is a green completion?

Answer 14

A green completion is when the water used to frack the well is removed. The natural gas that is produced with the water is then removed and placed in a pipeline rather than being released into the atmosphere.

Question 15

What three factors have come together to make shale gas production economically viable?

Answer 15

three factors have come together to make shale gas production economically viable are _advances in horizontal drilling, advances in hydraulic fracturing, and rapid increases in natural gas prices. _

Question 16

Name three things out of the five things that should be done prioor to horizontal drilling.

Answer 16

1. Identify a baseline of potential contaminants in aquifers
2. identify barriers to hydraulic frac growth in the reservoir
3. construct a reservoir model
4. water sources and disposal
5. logistics.

Question 17

List seven out of eleven components of the AFE.

Answer 17

1. Signature Page
2. Cost Worksheet
3. Geologic Section
4. Production Eng.
5. Reservoir Eng
6. Facilities Eng
7. Directional Drilling Targets
8. Casing Requirements and Producing Equipment
9. Drilling Progress and Cost Charts
10. Permits
11. Drilling Program and Procedure.

Question 18

What has allowed for the pursuit of reservoirs with much lower permeability?

Answer 18

Increased Reservoir Contact has allowed for the pursuit of reservoirs with much lower permeabilty.

Question 19

What is the definition of “unconventional oil and gas”?

Answer 19

Unconventional oil and gas is petroleum produced or extracted using methods and techniques different than the conventional oil/gas well method.

Question 20

When considering horizontal drilling, what is the best type of orientation with respect to the fractures?

Answer 20

When considering horizontal drilling, the best type of orientation with respect to the fracture is transverse.

Question 21

What is the payout point (also known as break-even point)?

Answer 21

The point at which the sum of all revenue is equivalent to the sum of all investment costs.

Question 22

What does AFE stand for, and what is its purpose?

Answer 22

Authority for Expenditure (AFE) is a budgetary document, usually prepared by the operator, to list estimated expenses of drilling a well to a specified depth, casing point or geological objective, and then either completing or abadoning the well. Such expenses may include excavating and surface site preparation, the daily rental rate of a drilling, costs of fuel, drillpipe, bits, casing, cement and logging, and coring and testing of the well, among others. This estimate of expenses is provided to partners for approval prior to commencement of drilling or susbsequent operations. Failure to approve and AFE may result in delay or cancellation of the proposed drilling project or subsequent operation.

Question 23

The constant Bo is the formation volume factor of a well, or the ratio of reservoir barrels to stock tank barrels (volume of oil in the reservoir to volume of oil at the surface in the stock tank). A value of “1” respresents dead oil. Explain why??

Answer 23

The oil in the reservoir contains gas in solution, a driving meachinism. If there is no drvining mechanism (i.e. Reservoir Barrel=Stock tank barrel), then the oil is dead and nor more production can naturally take place.

Question 24

Now on to the drawing question: Draw an anticlinal trap that is gas cap driven. Label the following: Gas cap, oil, water OGC, OWC, synclinal spill point and bottom water.

Answer 24

Look at my notes please.

Question 25

Sketch a realistic, desirable cumulative cashflow diagram and explain what is happening at the major points in the plot.

Answer 25

Look at my notes please.