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Semester January 2015, Credit hour 3

Duration 14 weeks Lecture + 2 Weeks Study & Exam
Lecture 30 hours + Lab/Tutorial 24 hours
Instructor
Dr. Mohammed Mahbubur Rahman

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Beggs H.(2003), Production Optimization Using NODAL Analysis, Second Edition, OGCI
Economides M. et al. (1994), Petroleum Production Systems, Prentice-Hall Inc.
Michael Golan and Curtis H. Whitson (1991), Well Performance, 2nd Edition, Prentice-Hall

Course Content

Reservoir Performance

Well Performance Equations, Darcys Law

Factors affecting productivity index
IPR for oil and gas wells
Back pressure equations
Well Completion effects

Flow in Pipes and Restrictions

Energy equation, single and multi-phase flows

Fluid Property calculations

Well flow correlations:

Hagedorn and Brown

Poettmann and Carpenter
Duns and Ros
Orkiszewski
Aziz, Govier and Fogarasi

Total System Analysis

Tubing and Flow line size selection

System analysis for wells with restrictions
Evaluating Completion effects
Nodal analysis of injection wells
Effect of depletion
Relating performance to time
Analyzing multiwell systems

Artificial Lift Design

Continuous Flow Gas lift

Electrical Submersible Pump (ESP) selection
Sucker rod / beam pumping
Hydraulic pumping

Pipe flow correlations

Pressure drop through restrictions

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Learning Outcome
At the end of the course, students should be able to:
1. Apply fundamentals of production optimization using
commercial software.
2. Analyze the performance of the petroleum production
system.
3. Understand the interaction of the reservoir system and
its effect on the overall production system.
4. Design optimum petroleum production systems.

Lecture Outline
Definition of OPTIMIZATION
OPTIMIZATION vs MAXIMIZING/MINIMIZING
Optimization in Oil Production Context
Production System Design Challenges
Lecture Summary

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Definition of OPTIMIZATION
an act, process, or methodology of making something (as a design, system, or decision) as fully
perfect, functional, or effective as possible; specifically : the mathematical procedures (as finding
the maximum of a function) involved in this (Webster)
Finding an alternative with the most cost effective or highest achievable performance under
the given constraints, by maximizing desired factors and minimizing undesired ones.
In comparison, maximization means trying to attain the highest or maximum result or
outcome without regard to cost or expense.
Practice of optimization is restricted by the lack of full information, and the lack of time to
evaluate what information is available
In computer simulation(modeling) of business problems, optimization is achieved usually
by using linear programming techniques of operations research.
to find the best compromise among several often conflicting requirements, as in engineering
design

OPTIMIZATION vs MAXIMIZING/MINIMIZING
OPTIMIZATION does not mean MAXIMIZING
The goal of optimization may be Maximizing or Minimizing
Suppose we want to MAXIMIZE something (such as production, or revenue, or profit, any one of these, some times refered to as the object fuction)
That something may depend on any number of variables
We adjust these variables in a manner so that something is maximized
This process is called OPTIMIZATION
OPTIMIZATION may be performed to MINIMIZE something as well (such as
minimizing noise, vibration, friction losses, flaring, water cut, etc.)
The related variables cannot be adjusted at will, however. They are subject to various
constraints.

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Example: Optimal Design of a Can

Step 1: Project/Problem Statement The purpose of this

project is to design a can to hold at least 400 ml of liquid,
as well as to meet other design requirements (1 ml = 1cm3).
The cans will be produced in the billions so it is desirable
to minimize manufacturing costs. Since cost can be
directly related to the surface area of the sheet metal, it is
reasonable to minimize the amount of sheet metal
required to fabricate the can. Fabrication, handling,
aesthetics, and shipping considerations impose the
following restrictions on the size of the can:
the diameter should be no more than 8 cm and no less
than 3.5 cm, whereas the height should be no more than 18
cm and no less than 8 cm.
Step 2: Data and Information Collection Given in the project
statement.
Step 3: Identification/Definition of Design Variables The
two design variables are defined
D = diameter of the can, cm
H = height of the can, cm

Step 4: Identification of a Criterion to Be Optimized The

design objective is to minimize the total surface area S of
the sheet metal for the three parts of the cylindrical can:
the surface area of the cylinder (circumference X height)
and the surface area of the two ends.
Therefore, the optimization criterion or cost function (the
total area of sheet metal), is written as:

Step 5: Identification of Constraints The first constraint is

that the can must hold at least 400cm3 of fluid, which is
written as:

Goal of the optimization exercise here is to find which

values of D and H will yield the MINIMUM value of S,
while meeting this criteria

Optimization in Oil Production Context

Let us consider a single well.
production invloves many factors such as:
Ability of reservoir to flow (Reservoir pressure, permeability, bottomhole pressure etc)
Capacity of production string or tubing
Capacity of seperator, and process plant
Water cut, Water handling facility
Oil price, etc

What are we trying to Maximize?

Let us say, we want to maximize oil production rate.
This is our objective function.
All other related parameters (such as tubing size, bottom hole and well head pressure,
flow line, separator, etc.,) should be adjusted in a way so that we obtain maximum oil
rate. This process is OPTIMIZATION.

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Optimization in Oil Production Context..

Therefore, we need a sound understanding of the petroleum

production system, and how each component of the system interact

with one another, and ultimately affect the production rate.
The functions of each major component, and its effect on the overall
production, will be studied throughout the course.
After learning about individual components, we will look at the entire
system, and familiarize with the Total System concept
Since optimization involves working with many components/variables,
it requires computer programing
Commercial software for production optimization will be introduced

Next, let us look at the simplified production system

Major segments of the
production system
Reservoir (Inflow
Performance Relationship)
Wellbore (Completions,
Tubing etc)
Surface Facilities (Flow
lines, Separator, Pipelines
etc)

Any one of these can

adversely affect our target to
maximize oil rate

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Production System Design Challenges

Suppose a discovery is made, and initial studies

indicate high potential for oil/gas production
Some common questions/challenges to the
engineer(s):
What is the behavior of the reservoir and
fluid(s)

What type of completion should be used

Kh, k, s, average reservoir pressure

Fluid properties, GOR, WOR, GLR, Bubble point
pressure, etc
IPR, factors affecting IPR
Is stimulation necessary?
Single/duel/slotted liner/open hole/gravel pack/perf
etc

What should be the tubing size

Too large tubing may cause liquid loading and

interrupted production
Too small tubing will incur high energy loss and
restrict production

Will phase separation occur along the tubing?

What should be the tubing head/bottom

hole pressures
High PI is desirable
too much draw down is not good- sanding, coning
etc may take place

What should be the separator size and

pressure

Single stage vs multi stage, separator capacity- large

separator may be under-utilized for most part of well
life

What should be the flow line size and

configuration
Water and gas handling facilities
What will be the role and effect of valves
and chokes setting?
Will any artificial lift be necessary (if not at
the outset, but at later life of the well)

Now, relate these questions to our course content. Make sense?

Lecture Summary
Optimization does not mean Maximizing
Optimization involves working with mutiple variables
Goal of optimization is to maximize/minimize a pre-determined

objective
Production system consists of many component
Production optimization therefore is the process of studying the
effect of each component and adjusting them to achieve a
desired effect, such as
Maximizing production rate/revenue/profit/life of well/PI, etc.
Minimizing pressure losses, flaring, etc.