Unit Operation of Oil Pool - Effect of Proration on Decline, Potential and Ultimate Production of Oil Well (With Discussion)

When an oil operator becomes a party to a proration agreement he may wonder, with good cause, whether production prorated .today is merely deferred until tomorrow or whether oil might be lost. Various types of evidence obtained from production records when studied quantitatively are of great assistance in arriving at definite conclusions. A study of individual examples cited in this paper leads towards some solution of the problem, particularly when they are considered in the aggregate. Many production curves on various pay horizons were studied. A disappointingly large number of these were of contributory value, but inconclusive. However, there were enough curves of similar type from the Wilcox sand at Earlsboro, Bowlegs, Seminole City, the Cromwell horizon at Little River, and the Simpson dolomite at Valley Center, Kansas, from which reasonably definite conclusions were drawn. Assuming that deferred production is later made up with no increase in ultimate recovery, a curve (Fig. 1) shows the normal flowing and pumping life of a composite well, contructed by the family curve method. The initial production of the well shown is 1700 bbl. daily and the allowed production is 25 per cent. On this basis the average daily allowed rate for the first month is 425 bb1., or the area BCDE, which is equivalent to the area AFDG under the normal decline curve. The potential production for the second month is 1500 bbl. and the allowed production 375 bbl. daily. By this procedure a potential curve for each succeeding month is obtained (points A, H, I, J and K). If the well is opened it should produce somewhere near its potential curve for a short period and then decline at a more rapid rate than the potential curve. This theoretical analysis is basic. Actual examples exhibiting all points raised by the ideal curve are rare. Proration in the Mid-Continent area has been effected mostly by leases rather than by individual wells; hence a well may produce any