Chapter 1

Components of the petroleum production system

Muhiyadin Moalin(M.Sc)
Jigjiga University
Department of Petroleum
Engineering
 Production Engineering

1 Introduction
The role of a production engineer is to maximize oil and
gas production in a cost-effective manner. Familiarization
and understanding of oil and gas production systems are
essential to the engineers.
A complete oil or gas production system consists of a
reservoir, well, flowline, separators, pumps, and
transportation pipelines.

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2 Reservoir
Hydrocarbon accumulations in geological traps can be
classified as reservoir, field, and pool.
A ‘‘reservoir’’ is a porous and permeable underground
formation containing an individual bank of hydrocarbons
confined by impermeable rock or water barriers and is
characterized by a single natural pressure system.
A ‘‘field’’ is an area that consists of one or more reservoirs
all related to the same structural feature.
A ‘‘pool’’ contains one or more reservoirs in isolated
structures.

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2 Reservoir
The reservoir consists of one or several interconnected
geological flow units. Modern techniques such as 3-D
seismic and new logging and well testing measurements
allow for a more precise description of the shape and
production character of the well and reservoir.
Appropriate reservoir description, including the extent of
heterogeneities, discontinuities, and anisotropies. It has
become compelling after the emergence of horizontal wells
with lengths of several thousand feet.

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2 Reservoir

Common reservoir heterogeneities, anisotropies, discontinuities, and boundaries

affecting the performance of vertical and horizontal wells.

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2 Reservoir
2.1 Porosity
All of petroleum engineering deals with the exploitation of
fluids residing within porous media.
Porosity, simply defined as the ratio of the pore volume,
Vp, to the bulk volume, Vb
Porosity values have varied from over 0.3 to less than 0.1.
Porosity is one of the very first measurements obtained in
any exploration Scheme, and a desirable value is
essential for the continuation of any further activities
toward the potential exploitation of a reservoir.

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2 Reservoir
2.2 Reservoir height (Reservoir thickness)
The reservoir height describes the thickness of a porous,
medium contained between two layers. These layers are
usually considered impermeable.
At times the thickness of the hydrocarbon-bearing
formation is distinguished from an underlaying water-
bearing formation or aquifer.

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2 Reservoir
2.2 Reservoir height (Reservoir thickness)
Well logging techniques have been developed to identify
likely reservoirs and quantify their vertical extent.
Measuring the spontaneous potential (SP) and knowing
that sandstones have is distinctly different response than
shales, one can estimate the thickness of a formation.
In laminated or multilayered formations the terms ''gross''
and ''net'' height are used to distinguish between the
thickness of an entire sequence and that portion which
bears hydrocarbons.

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2 Reservoir
2.2 Reservoir height (Reservoir thickness)

Spontaneous potential and electrical resistivity logs identifying sandstones versus shales,
and water-bearing versus hydrocarbon-bearing formations sandstones

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2 Reservoir
2.3 Fluid saturations
Oil and/or gas are never alone in "saturating" the
available pore space. Water is always present.
If the water is present but does not flow, the
corresponding water saturation is known as "connate" or
"interstitial." Saturations larger than this value would
result in free flow of water along with hydrocarbons.
The combination of porosity, reservoir net thickness, and
saturations is essential in deciding whether a prospect is
attractive or not.

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2 Reservoir
2.4 Classification of reservoirs
All hydrocarbon mixtures can
be described by a phase
diagram Plotted are
temperature (x axis) and
pressure (y axis).
A specific point is the critical
point, where the properties of
liquid and gas converge.

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2 Reservoir
2.4 Classification of reservoirs

Undersaturated reservoirs
Saturated reservoirs

Lean gas reservoirs

Retrograde condensate reservoirs

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2 Reservoir
2.5 Areal extent
Favorable conclusions on the porosity, reservoir height, fluid
saturations, and pressure of a petroleum reservoir, based on singe
well measurements, are insufficient for both the decision to develop
the reservoir and for the establishment of an appropriate exploitation
scheme.
The areal extent is essential in the
estimation of the "original-oil-in- place."

The porosity, height, and saturation can of course vary within the
areal extent of the reservoir.

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2 Reservoir
2.6 Permeability

The property that describes the ability of fluids to flow in the porous
medium is permeability. In certain lithologies (e.g., sandstones), a
larger porosity is associated with a larger permeability. In other
lithologies (e.g., chalks), very large porosities, at times over 0.4, are
not associated with proportionately large permeabilities.
Correlations of porosity versus permeability should be used with a
considerable degree of caution.

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2 Reservoir
2.6 Permeability

The concept of permeability

was introduced by Darcy

(1856) in a classic
experimental work from which
both petroleum engineering
and groundwater hydrology

have benefited greatly. Darcy's experiment Water flows

through a sand pack and the pressure
difference is recorded.

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2 Reservoir
2.6 Permeability

Darcy observed that the flow rate ( or

fluid velocity) of a fluid through a Specific
porous medium is linearly proportional to
the head or pressure difference between
the inlet and the outlet and a
characteristic property of the medium.
Darcy's experiment Water flows
through a sand pack and the pressure
difference is recorded.

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3 The Zone near the Well, the Sandface, and

the Well Completion
The zone surrounding a well is important. All intrusive activities such
as drilling, cementing, and well completion are certain to alter the
condition of the reservoir near the well. This is invariably detrimental.

Matrix stimulation is intended to recover or even improve the near-

wellbore permeability. (There is damage associated even with
stimulation. It is the net effect that is expected to be beneficial.)

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3 The Zone near the Well, the Sandface, and

the Well Completion
Many wells are cemented and cased.

One of the purposes of cementing is to support the casing, but at

formation depths the most important reason is to provide zonal
isolation. Contamination of the produced fluid from other formations or
the loss of fluid into other formations can be envisioned readily in an
open-hole completion.

A cemented and cased well must be perforated in order to reestablish

communication with the reservoir.

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3 The Zone near the Well, the Sandface, and

the Well Completion

Options for well completions

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3 The Zone near the Well, the Sandface, and

the Well Completion
If no zonal isolation or wellbore stability problems are present, the well
can be open-hole.

Slotted liners can be used if a cemented and cased well is not deemed
necessary and if no wellbore stability problems are likely to be
encountered.

Finally, to combat the problems of sand or other fines production,

screens can be placed between the well and the formation. Gravel can
be used as an additional safeguard and as a means to keep
permeability-reducing fines away from the well.
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The structure of the production system

The petroleum production system, including the reservoir, underground well

completion, the well, wellhead assembly, and surface facilities.

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4 The Well
Entrance of fluids into the well, following their flow through the porous
medium, the near-well zone, and the completion assembly, requires
that they are lifted through the well up to the surface.

The function of an oil well is to provide a path from the subsurface

formations to the surface through which the petroleum can flow and be
recovered at the surface.

In order to provide this conduit, a hole must be drilled to the formation.

This hole is then cased with steel pipe and cemented, and production
equipment is placed in the cased hole and at the surface to control the
fluid rates.

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4 The Well
Oil and gas wells are drilled like an
upside-down telescope.

The large-diameter borehole section is at

the top of the well.

Each section is cased to the surface. Each

casing is cemented into the well (usually
up to at least where the cement overlaps
the previous cement job).

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4 The Well
The last casing in the well is the production
casing. Once the production casing has
been cemented into the well, the production
tubing is run into the well.

Usually a packer is used near the bottom of

the tubing to isolate the annulus between the
outside of the tubing and the inside of the
casing. Thus, the produced fluids are forced
to move out of the perforation into the bottom
of the well and then into the inside of the
tubing.
A sketch of a typical flowing oil well
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4 The Well

A typical flowing oil well is composed of

casings, tubing, packers, down-hole chokes
(optional), wellhead, Christmas tree, and
surface chokes.

Most wells produce oil through tubing strings,

mainly because a tubing string provides
good sealing performance and allows the
use of gas expansion to lift oil.

A sketch of a typical flowing oil well

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4 The Well
Lifting fluids requires flowing pressure gradient between the
bottomhole and the wellhead.

The pressure gradient consists of the potential energy difference

(hydrostatic pressure) and the friction pressure drop. The former
depends on the reservoir depth and the latter depends on the well
length.

If the bottomhole pressure is sufficient to lift the fluids to the top, then
the well is under "natural lift."

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4 The Well
Otherwise, artificial lift is indicated. Mechanical lift can be supplied by
a pump.

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4 The Well
Another technique is to reduce the density of the fluid in the well and
thus to reduce the hydrostatic pressure. This is accomplished by the
injection of lean gas in a designated spot along the well. This is known
as "gas lift."

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Review

The structure of the

production system

The petroleum production system, including the reservoir, underground well

completion, the well, wellhead assembly, and surface facilities.

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5 The Surface Equipment

After the fluid reaches the top, it is likely to be directed toward a
manifold connecting a number of wells. The reservoir fluid consists of
oil, gas, and water.

Traditionally, the oil, gas, and water are not transported long distances
as a mixed stream, but instead are separated at a surface processing
facility located in close proximity to the wells. But It is becoming more
common that in some offshore fields, where production from subsea
wells, mixtures may be transported long distances before any phase
separation takes place.

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5 The Surface Equipment

Metering station

Central treating plant

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5 The Surface Equipment

It is becoming more common that mixtures may be transported long
distances before any phase separation takes place in some offshore
fields.

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5 The Surface Equipment

Finally, the separated fluids are
transported or stored. In the case of
formation water it is usually disposed
in the ground through a reinjection
well.

The flow systems from the reservoir to

the entrance to the separation facility
are the production engineering
systems that are the subjects of study
in this course.

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6 Well Productivity and Production Engineering

The objectives of production engineering is to maximize the well
productivity in a cost-effective manner.

All of the components of the petroleum production systems can be

condensed into the productivity index. Understanding and measuring
the variables that control the productivity index (well diagnosis)
become imperative.

The productivity index, J of a well is simply the production rate

divided by the pressure difference.

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6 Well Productivity and Production Engineering

2kh(p − pwf )
q = J (p − p wf )=
r
B(ln e + s)
rw

q 2kh
J= =
p − pwf B(ln re + s)
rw

➢ To maximize the productivity index in a cost-effective manner,

➢ To increase drawdown (p-pwf) or reduce flowing bottomhole pressure

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6 Well Productivity and Production Engineering

2kh
To maximize the productivity index J=
r
B(ln e + s)
rw

The well stimulation can improve the productivity index.

•The skin effect can be reduced or eliminated through matrix
stimulation if it is caused by damage or can be otherwise remedied if it
is caused by mechanical means.

•A negative skin effect can be imposed if a successful hydraulic

fracture is created.

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6 Well Productivity and Production Engineering

Increasing the drawdown (p-pwf) by lowering pwf q = J (p − p )
wf

The flowing bottomhole pressure may be lowered by

➢Minimizing the pressure losses between the bottomhole and the
separation facility (by, for example, removing unnecessary restrictions,
optimizing tubing size, etc.)

➢ Improving artificial lift procedures.

Improving well productivity by optimizing the flow system from the

bottomhole location to the surface production facility is a major role of
the production engineer.

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