11th Annual Sucker Rod Pumping Workshop Renaissance Hotel Oklahoma City, Oklahoma September 15 - 18, 2015 Maximize or Optimize Production using Sensorless Artificial Lift Technology John Lesnick Power Management Controls, Inc. Kerry Cooper DistributionNOW Maximize or Optimize Production • Problem – Conventional controls for Artificial Lift Systems provide less than optimal results. – Efforts to Maximize or Optimize production lifting costs are negatively impacted by regenerative power losses, peak demand charges, labor-intensive production optimization, and costly failures/repairs. – Add-on controls are available but costly and do not necessarily provide the desired results for today’s well formations. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 2 Maximize or Optimize Production • Objectives – Maintain or increase net oil production. – Lower direct OPEX through reduced power consumption and elimination of labor intensive mechanical speed changes. – Reduce Tubing Failures that cause pump pulls. – Reduce Rod failures that cause pump pulls. – Extend mean time between Pump Failure…. …. Only pull pump once barrel/plunger fit causes production decline. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 3 Maximize or Optimize Production • Solution – A Well Automation and Control System that minimizes energy consumption, helps reduce mechanical failures, maximizes or optimizes production, and is cost effective. – A control system that automatically makes intuitive adjustments to match the well’s productivity, prevents loading violations, and minimizes costly shutdowns. – An automation system that helps mitigate well intervention, minimizes energy consumption, and provides a more favorable return on investment. ..... Sensorless Artificial Lift Technology (SALT™) Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 4 Field Operations Overview • This presentation covers a case study performed to address the Objectives in the previous slide. – Field of >1000 wells with ~900 producing wells. – Beam Pump and Progressive Cavity Pump wells. – Formation depths from 2950 to 4500 feet. – Primary and Secondary recovery (Waterflood). – Vertical, Directional, and Horizontal wells. 2 2 – 28 API Oil; trace H S, mild CO , Brine 80,000ppm, high water cut (average 85%+). Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 5 Field Operations Overview • Beam Pumps – Initially Pump Panels with Starters and a crew to periodically change sheaves and balance weights were used to control Beam Pumps. – Attempted use of basic VFD to make manual speed changes. – Results: Insignificant changes to Production, Failures, Maintenance, and Energy Consumption. • Progressive Cavity Pumps – Attempted use of VFDs with wedge flow meter to control PCP. – High capital cost coupled with recalibration or replacement of the wedge meter proved expensive. – In addition, pumping more fluid in a water flood zone did not produce optimum results. – Concluded that controlling the inflow rate to produce the most oil vs. water produces the best results. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 6 Sensorless Artificial Lift Technology • Power Management Controls, Inc., a proven leader in Patented Technology Solutions for the Oil and Gas Industry for nearly forty years, patented the use of Variable Frequency Drives (VFD’s) for power management and pump control to operate Beam/Rod Pumps in 2002. • Sensorless Artificial Lift Technology (SALT™), Patent No. 6,414,455, eliminates the need for Resistors or Regenerative VFD’s, decreases Peak Demand charges and reduces Power Consumption. • Installed in over 6,000 locations world-wide, SALT™ has a Lower Installed Cost, is Easy to Use, and Minimizes Energy Usage, Increases Production, and Reduces Failures. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 7 SALTTM – 3 Well / Single Battery Pilot • In 2011, a 3 well pilot test was performed using SALT™. – The 3 wells chosen were high oil cut, low total volume candidates that experienced routine pumped off conditions. – With SALT™, production on one well changed from 14.5 bbl oil/day to 19.4 bbl oil/day, a 34% increase. – An overall energy reduction of 30% and a production gain of 20% average per well was realized on the 3 wells using SALT™. – Producer realized a 32% reduction in pump strokes creating potential for 30%+ increase in MTB Pump Failures. – A 5-month payback on the hardware was achieved through Net Results and Power Savings. – Additional SALT™ units installed throughout the field over the next 2 years bringing total in service to 155 by YE2013. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 8 SALTTM – OSC and POC Study • SALT™ Optimum Stroke Control (OSC) provides the ability to modify the stroke of a conventional pumping unit and tailor it to the unique pump/well combination. • SALT™ sensorless Pump Off Control (POC) allows a much broader range for pump off conditions, resulting in maximum drawdown while automatically adjusting speed to match variable fluid volumes, and reacting rapidly to partial pump filling, gas, sand, friction, and stress. • Utilizing SALT™ OSC and sensorless POC, oil production can be maximized or optimized on each well. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 9 SALTTM – OSC and POC Results • In 2012, three independent wells were studied utilizing SALT™ OSC along with SALT™ POC and produced the following results…. – Well 1 - High Oil Cut - 80% • +21% Oil (11bbl/d), +35% Fluid, 80% Cut to 71% Cut, Fluid Level lowered 18 joints, SPM increased from 3.1 to 5.0 – Well 2 - High Oil Cut - 85% • +28% Oil (8bbl/d), +33% Fluid, 85% Cut to 82% Cut, Fluid Level increased 14 joints, SPM increased from 5.8 to 6.2 – Well 3 - Low Oil Cut - 2% • +51% Oil (1bbl/d), -13% Fluid, 2% Cut to 4% Cut, Fluid Level lowered 53 joints, SPM lowered from 6.0 to 5.0 Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 10 SALTTM – 75 Well / Single Battery Study • November 2013 – Approved use of data on installation of (75) SALT™ units feeding a single battery. – February 2014 – Power Consumption Baseline: Power measured for 10 days from 37 power meters feeding the field of 75 wells. – April 2014 - SALT™ installed, power measured for 10 days, wells operated as they were before…. Shoot fluid level, Manually change SPM via SALT™. – May 2014 - With power consumption baselines established, SALT™ was switched to Automatic to control the pumping system for 30 days after which power was measured again. – Production by well and into the battery was also recorded to correlate back to each stage of the project. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 11 SALTTM – 75 Well / Single Battery Results Daily Avg Daily Avg kWh Energy Savings February Oil Water per well per well bbl/d bbl/d 14 184 114 Sept. 15 – 18, 2015 Fluid per well bbl/d 199 Daily Avg Daily Avg kWh Energy Savings April Oil Water per per well well bbl/d 14 179 94 -17% Fluid per well bbl/d 193 2015 Sucker Rod Pumping Workshop Daily Avg Daily Avg kWh Energy Savings June Oil Water per per well well bbl/d 13 164 96 -16% Fluid per well bbl/d 177 12 SALTTM – 75 Well / Single Battery Results 6.289811 Month Jan Feb Mar Apr May Jun Jul Aug Sep Water Average per well; bbl/day Total Water Oil 183 168 14 192 178 14 190 177 13 193 179 14 199 186 14 172 158 13 176 164 13 186 172 13 186 170 16 Production Results 250 Line break end of May resulted in reduction through Aug…. All wells back on line end of Aug 200 168 178 177 186 179 150 158 164 172 170 100 50 14 14 13 14 14 13 13 13 16 Jan Feb Mar Apr May Jun Jul Aug Sep 0 Oil Sept. 15 – 18, 2015 Water 2015 Sucker Rod Pumping Workshop 13 SALTTM – Long Term Study • Pumptracking data and scheduled KPI meetings held to target pump pulls that may be deemed preventable • Objective to reduce most costly rig-jobs (tubing failures), reduce incidents of questionable rod parts and ultimately extend mean time between pump failures. • Performance scorecards included tracking of Run Days by Pump Pull Cause...non pump related such as rod failures, tubing failures, well work, etc and Mean Time Between Pump Failure are primary • How would we see the results of SALT™ on pump OPEX? Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 14 SALTTM – Long Term Study Summary • In 2011, SALT™ was installed on a few wells with acceptable results through an informal test. • Over the next several years, more SALT™ units were installed on wells throughout the entire field to improve production, reduce failures, and minimize energy use. • In 2014, a field with 75 producing wells, including a mix of sucker rod pump and progressive cavity pump wells producing into a single battery, was selected for testing. Dedicating the complete section of wells allowed accurate measurements of power consumption and produced oil, water and solids over a long term period. • Today over 230 SALT™ units operate in this area. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 15 SALTTM – Change in Pump Pull Results Year 2008 2009 2010 2011 2012 2013 2014 Pump Failure 187 217 228 176 137 100 136 Rod 56 48 38 54 38 46 34 Tubing 94 86 96 95 82 66 56 Total 337 351 362 325 257 212 226 Pre- SALT Post SALT Jobs x Primary Pull Reason 400 350 300 362 86 96 337 94 250 56 200 150 351 325 95 48 38 217 228 54 257 82 212 66 187 176 38 46 137 100 226 56 34 136 100 50 0 2008 2009 Pump Failure Sept. 15 – 18, 2015 2011 2010 Rod 2012 2013 2014 Tubing 2015 Sucker Rod Pumping Workshop 16 SALTTM – Improved Frequency Failure Results Year 2008 2009 2010 2011 2012 2013 2014 Ave Run Days 544 620 696 639 705 778 917 Jobs 337 351 362 325 257 212 226 Failure Frequency 0.67 0.59 0.52 0.57 0.52 0.47 0.40 Pre- SALT Post SALT Jobs - Run Days - FF 1000 900 917 0.67 0.59 700 600 0.70 778 800 620 0.57 705 0.60 0.52 696 544 0.47 639 0.52 0.50 0.40 500 400 0.80 0.40 337 351 362 325 0.30 257 300 212 226 0.20 200 0.10 100 0 0.00 2008 2009 2010 # jobs Sept. 15 – 18, 2015 2011 avg run day 2012 2013 2014 Failure Frequency 2015 Sucker Rod Pumping Workshop 17 SALTTM – Run Days by Pump Pulls Results >>> SALT™ Installations >>> Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 18 SALTTM – Increased MTB Pump Failure Results Year 2008 2009 2010 2011 2012 2013 2014 Jobs 187 217 228 176 137 100 136 MTBF 658 698 702 716 788 769 932 F.F 0.55 0.52 0.52 0.51 0.46 0.47 0.39 Pre- SALT Post SALT Jobs - MTBF - FF 1000 932 0.55 0.52 900 0.52 0.51 0.46 800 698 700 702 0.60 716 658 0.47 788 769 0.50 0.39 0.40 600 500 0.30 400 0.20 300 187 219 228 175 200 136 100 132 0.10 100 0 0.00 2008 2009 2010 Jobs Sept. 15 – 18, 2015 2011 MTBF 2012 2013 2014 Failure Frequency 2015 Sucker Rod Pumping Workshop 19 SALTTM – Rod Failure Reduction Results SLIDE 19 rod failures 56 48 38 54 38 46 34 2008-2010 vs 2011-2014 -9% year 2008 2009 2010 2011 2012 2013 2014 Sucker Rod Failures 60 56 54 48 50 46 38 38 40 34 30 20 10 0 2008 Sept. 15 – 18, 2015 2009 2010 2011 2012 2015 Sucker Rod Pumping Workshop 2013 2014 20 SALTTM – Tubing Failure Reduction Results SLIDE 20 tub ing failures 94 86 96 95 82 66 56 2008-2010 vs 2011-2014 -19% year 2008 2009 2010 2011 2012 2013 2014 Tubing Failures 120 100 96 94 95 86 82 80 66 56 60 40 20 0 2008 Sept. 15 – 18, 2015 2009 2010 2011 2012 2015 Sucker Rod Pumping Workshop 2013 2014 21 SALTTM – Objective Results • Objective – Maintain or increase net oil production. • Average per well Oil production increase of 14% • Average per well Water production decrease of 9% – Lower direct OPEX through reduced power consumption and elimination of labor intensive mechanical speed changes. • Average per well Power savings of 17% • Elimination of manual sheave changes – Reduce Tubing Failures that cause pump pulls. • Reduced incidents of collar/tubing wall contact associated with fluid pound and/or compressive rod loading/buckling Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 22 SALTTM – Objective Results • Objective – Reduce Rod failures that cause pump pulls. • Reduced incidents of collar/tubing wall contact associated with fluid pound • Reduced incidents of bend type failures that result from compressive rod loading/buckling – Extend mean time between Pump Failure…. …. Only pull pump once barrel/plunger fit causes production decline. • Optimum pumping speed to match inflow increases pump run life through extending the cycles between component failure • Failure Frequency Improvement: 2008 = 0.67 2014 = 0.40 • Failure Frequency Forecast: 2015 = 0.32 2016 = 0.28 Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 23 SALTTM – Future Study • Outstanding….. • Shift in Primary Pump Pull Causes: – Projection of significant reduction in rod and tubing failure related pump pulls, with a corresponding increase in overall average run days, leading to a decrease in Failure Frequency. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 24 SALTTM – Summary • Many methods of well automation exist, all or most say or imply they can achieve these results. • This is a presentation where the producer provided the data to say it did…. not the supplier. • How many producers would readily accept a predictable decrease in rod failures, tubing failures, and pump failure frequency complimented by an increase in oil production, a decrease in water production and a reduced power cost? Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 25 Copyright Rights to this presentation are owned by the company(ies) and/or author(s) listed on the title page. By submitting this presentation to the Sucker Rod Pumping Workshop, they grant to the Workshop, the Artificial Lift Research and Development Council (ALRDC), and the Southwestern Petroleum Short Course (SWPSC), rights to: – Display the presentation at the Workshop. – Place it on the www.alrdc.com web site, with access to the site to be as directed by the Workshop Steering Committee. – Place it on a CD for distribution and/or sale as directed by the Workshop Steering Committee. Other use of this presentation is prohibited without the expressed written permission of the author(s). The owner company(ies) and/or author(s) may publish this material in other journals or magazines if they refer to the Sucker Rod Pumping Workshop where it was first presented. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop 26 Disclaimer The following disclaimer shall be included as the last page of a Technical Presentation or Continuing Education Course. 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