Papers - Valuation Methods - Mechanics of a California Production Curve (With Discussion)

Only two years ago there appeared in our technical magazines articles wherein it was shown that the application of back-pressure increased the ultimate production of a well, that edge water can be stopped in its encroachment by the injection of gas into the productive formation, with the consequent conservation of energy within the pool, that gas is the source of all energy involved in oil production, and that each pool has a definite minimum-valued gas-oil ratio to be attained for the most economical operation of wells. Today we are not so certain of these matters. Probably in some fields, under special circumstances, these ideas are correct, but certainly they must not be correct in all fields, under any and all circumstances. The nature of the productive structure, the location of particular properties on the structure, the existence of adjoining neighbors, whether these are higher or lower on the structure, and the methods of production followed by all operators on the structure, sand for sand on depth, make these subjects worthy of full consideration. Our difficulties in analyzing and comparing the performance of reservoirs in various parts of the world do not rest solely upon structural features and property lines. We do not complete the list of causes for these difficulties if we add lithologic features and correlation of strata encountered by the drill, with the magnitude of pressures exerted by fluids within any of these strata. A further cause, one which the author believes will complete the list, is one involving the theoretical mechanics of fluids within porous formations—porous in the nature of interstices in sandstones and some limestones, networks of fractures in shales, and cavities in otherwise compact limestones. The confusion of ideas concerning reservoir mechanics still with us today seems largely due to our failure to recognize among all wells three great divisions of theoretical mechanics, three great systems which are distinct in themselves, and according to which each well, or better, each group of wells, must be analyzed separately. These systems have been named by the writer Hydraulic Control, Volumetric Control and Capillary Control, respectively.' Wells in these controls behave dif-