Reservoir Rock Characteristics - Effect of Pressure and Temperature on Cavities in Salt

The cost of finding and developing new reserves is continually rising. We must meet these rising costs with more economical operations. This can he accomplished if we revise our ideas of proper well spacing and well allowable to consider the concept of optimum well spacing. According to this concept, the optimum spacing is the one which leads to the maximum present worth for a reservoir when ail factors affecting total cost and total revenue are considered and when the wells are produced in the most eficient manner. Application of this principle efficiently utilizes available well potential and properly considers the recovery eficiency in addition to fixing the spacing on the basis of the amount and value of the oil to he recovered. This Study presents an analysis of one producing zone containing low gravity crude to illustrate the effect of these factors on the present worth and on the optimum economic spacing under two production drives—-evolved gas and water drive. The maximum present worth occurs when the optimum number of wells for open-flow operation is employed. Frequently, this optimum development cal1s for very wide spacing and the ideal field rates are not unreasonable. Under other circumstance. where proration is necessary, an optimum combination of well spacing and well allowable exists which permits production at relatively high rates. The optimum well density in a field depends on the recovery efficiency and the valule of the oil. In solution gas-driven reservoirs this optimum spacing for operation at high producing rates can vary from extremely wide spacing to handle viscous low gravity oil in thin formations to relatively close spacing in thick sands where good recoveries are expected. Because of the better recovery from water-driven fields, the optimum spacing in these fields is closer than in solution gas-driven fields. Also, the water encroachment pattern is dependent upon the well spacing, and an adequate numher of wells is needed to assure a good sweep eficiency. The economic optimum well density in a water-driven field is high enough for this purpose. INTRODUCTION From year to year domestic oil becomes more difficult to find. The fields we do locate are frequently smaller and deeper than older fields and the costs for men, material and equipment are continually rising. To replenish our reserves we must continue to search for and develop new fields, but experience has shown we cannot expect prices to rise in proportion to costs. Consequently, we must meet increasing costs by more economical operations. A vigorous effort is being made within the industry to improve exploration methods, to cope with the problems of deeper drilling, and to obtain a secondary yield from older fields. Many significant contributions have resulted from these efforts. The economic operation of new fields can be further improved by developing these fields on optimum spacing and producing the wells at higher rates. This would avoid the drilling of unnecessary wells and provide additional capital for seeking new oil. While the benefits of these practices are obvious, the problem of defining the optimum development of a field for natural depletion can become very complex. A study of the effect of well spacing and several reservoir variables on economic worth of a specific field is reported here to illustrate the problem and to show the magnitude of the benefits to be realized. This study is necessarily limited to the field conditions selected and is not intended as a general solution of the well spacing problem. It does, however, indicate factors to be considered, the trends to be expected, and the direction in which we should proceed in developing new fields. NO consideration is given to land and legal considerations which might arise. METHOD OF ANALYSIS The optimum method of developing and producing a field is to use the combination of spacing and prora-tion which gives the maximum return. In addition, we do not want to lose recovery. These considerations of maximum return and maximum recovery present no serious conflict. The value of each method of operation is conveniently expressed in terms of its present worth. According to the present worth method of evaluation,' an acceptable annual percentage return is assigned to the operation, and all incomes, capital costs, and expenses are discounted at this rate to the start of the operation. This net value is the present worth. If we apply the same discount rate to several alternate methods of operation, the one yielding the greatest present worth is the best method. If we express net income in terms of price per barrel of oil produced, drilling and equipment costs on a well basis, and expenses as cost per well year, this evalu-