Closed-loop reservoir management on the Brugge test case

This paper proposes an augmented Lagrangian method for production optimization in which the cost function to be maximized is defined as an augmented Lagrangian function consisting of the net present value (NPV) and all the equality and inequality constraints except the bound constraints. The bound constraints are dealt with using a trust-region gradient projection method. The paper also presents a way to eliminate the need to convert the inequality constraints to equality constraints with slack variables in the augmented Lagrangian function, which greatly reduces the size of the optimization problem when the number of inequality constraints is large. The proposed method is tested in the context of closed-loop reservoir management benchmark problem based on the Brugge reservoir setup by TNO. In the test, we used the ensemble Kalman filter (EnKF) with covariance localization for data assimilation. Production optimization is done on the updated ensemble mean model from EnKF. The production optimization resulted in a substantial increase in the NPV for the expected reservoir life compared to the base case with reactive control.     

Ensemble clustering for efficient robust optimization of naturally fractured reservoirs

In the development of naturally fractured reservoirs (NFRs), the existence of natural fractures induces severe fingering and breakthrough. To manage the flooding process and improve the ultimate recovery, we propose a numerical workflow to generate optimal production schedules for smart wells, in which the inflow control valve (ICV) settings can be controlled individually. To properly consider the uncertainty introduced by randomly distributed natural fractures, the robust optimization would require a large ensemble size and it would be computationally demanding. In this work, a hierarchical clustering method is proposed to select representative models for the robust optimization in order to avoid redundant simulation runs and improve the efficiency of the robust optimization. By reducing the full ensemble of models into a small subset ensemble, the efficiency of the robust optimization algorithm is significantly improved. The robust optimization is performed using the StoSAG scheme to find the optimal well controls that maximize the net-present-value (NPV) of the NFR’s development. Due to the discrete property of a natural fracture field, traditional feature extraction methods such as model-parameter-based clustering may not be directly applicable. Therefore, two different kinds of clustering-based optimization methods, a state-based (e.g., s _w profiles) clustering and a response-based (e.g., production rates) clustering, are proposed and compared. The computational results show that the robust clustering optimization could increase the computational efficiency significantly without sacrificing much expected NPV of the robust optimization. Moreover, the performance of different clustering algorithms varies widely in correspondence to different selections of clustering features. By properly extracting model features, the clustered subset could adequately represent the uncertainty of the full ensemble.     

Determination of lower and upper bounds of predicted production from history-matched models

We present a method to determine lower and upper bounds to the predicted production or any other economic objective from history-matched reservoir models. The method consists of two steps: 1) performing a traditional computer-assisted history match of a reservoir model with the objective to minimize the mismatch between predicted and observed production data through adjusting the grid block permeability values of the model. 2) performing two optimization exercises to minimize and maximize an economic objective over the remaining field life, for a fixed production strategy, by manipulating the same grid block permeabilities, however without significantly changing the mismatch obtained under step 1. This is accomplished through a hierarchical optimization procedure that limits the solution space of a secondary optimization problem to the (approximate) null space of the primary optimization problem. We applied this procedure to two different reservoir models. We performed a history match based on synthetic data, starting from a uniform prior and using a gradient-based minimization procedure. After history matching, minimization and maximization of the net present value (NPV), using a fixed control strategy, were executed as secondary optimization problems by changing the model parameters while staying close to the null space of the primary optimization problem. In other words, we optimized the secondary objective functions, while requiring that optimality of the primary objective (a good history match) was preserved. This method therefore provides a way to quantify the economic consequences of the well-known problem that history matching is a strongly ill-posed problem. We also investigated how this method can be used as a means to assess the cost-effectiveness of acquiring different data types to reduce the uncertainty in the expected NPV.     

Waterflooding using closed-loop control

To fully exploit the possibilities of “smart” wells containing both measurement and control equipment, one can envision a system where the measurements are used for frequent updating of a reservoir model, and an optimal control strategy is computed based on this continuously updated model. We developed such a closed-loop control approach using an ensemble Kalman filter to obtain frequent updates of a reservoir model. Based on the most recent update of the reservoir model, the optimal control strategy is computed with the aid of an adjoint formulation. The objective is to maximize the economic value over the life of the reservoir. We demonstrate the methodology on a simple waterflooding example using one injector and one producer, each equipped with several individually controllable inflow control valves (ICVs). The parameters (permeabilities) and dynamic states (pressures and saturations) of the reservoir model are updated from pressure measurements in the wells. The control of the ICVs is rate-constrained, but the methodology is also applicable to a pressure-constrained situation. Furthermore, the methodology is not restricted to use with “smart” wells with down-hole control, but could also be used for flooding control with conventional wells, provided the wells are equipped with controllable chokes and with sensors for measurement of (wellhead or down hole) pressures and total flow rates. As the ensemble Kalman filter is a Monte Carlo approach, the final results will vary for each run. We studied the robustness of the methodology, starting from different initial ensembles. Moreover, we made a comparison of a case with low measurement noise to one with significantly higher measurement noise. In all examples considered, the resulting ultimate recovery was significantly higher than for the case of waterflooding using conventional wells. Furthermore, the results obtained using closed-loop control, starting from an unknown permeability field, were almost as good as those obtained assuming a priori knowledge of the permeability field.     

Ensemble filter methods with perturbed observations applied to nonlinear problems

The ensemble Kalman filter (EnKF) has been shown repeatedly to be an effective method for data assimilation in large-scale problems, including those in petroleum engineering. Data assimilation for multiphase flow in porous media is particularly difficult, however, because the relationships between model variables (e.g., permeability and porosity) and observations (e.g., water cut and gas–oil ratio) are highly nonlinear. Because of the linear approximation in the update step and the use of a limited number of realizations in an ensemble, the EnKF has a tendency to systematically underestimate the variance of the model variables. Various approaches have been suggested to reduce the magnitude of this problem, including the application of ensemble filter methods that do not require perturbations to the observed data. On the other hand, iterative least-squares data assimilation methods with perturbations of the observations have been shown to be fairly robust to nonlinearity in the data relationship. In this paper, we present EnKF with perturbed observations as a square root filter in an enlarged state space. By imposing second-order-exact sampling of the observation errors and independence constraints to eliminate the cross-covariance with predicted observation perturbations, we show that it is possible in linear problems to obtain results from EnKF with observation perturbations that are equivalent to ensemble square-root filter results. Results from a standard EnKF, EnKF with second-order-exact sampling of measurement errors that satisfy independence constraints (EnKF (SIC)), and an ensemble square-root filter (ETKF) are compared on various test problems with varying degrees of nonlinearity and dimensions. The first test problem is a simple one-variable quadratic model in which the nonlinearity of the observation operator is varied over a wide range by adjusting the magnitude of the coefficient of the quadratic term. The second problem has increased observation and model dimensions to test the EnKF (SIC) algorithm. The third test problem is a two-dimensional, two-phase reservoir flow problem in which permeability and porosity of every grid cell (5,000 model parameters) are unknown. The EnKF (SIC) and the mean-preserving ETKF (SRF) give similar results when applied to linear problems, and both are better than the standard EnKF. Although the ensemble methods are expected to handle the forecast step well in nonlinear problems, the estimates of the mean and the variance from the analysis step for all variants of ensemble filters are also surprisingly good, with little difference between ensemble methods when applied to nonlinear problems.     

Apparent permeability and representative size of shale: a numerical study on the effects of organic matter

The impact of organic matter on the flow capacity of shale oil rocks is presumably significant, and the knowledge about the representative size is fundamental for the upscaling studies. The error of the experimentally determined permeability values is comparable with the contribution of kerogen to shale permeability, instead a 2D numerical model is employed to explore the normalised equivalent permeability and the representative elementary area (REA) of shale oil rocks in detail incorporating the effects of kerogen. The discussions on the normalised equivalent permeability and the REA are based on the statistical average and standard deviation from 1000 different runs, respectively. The inorganic permeability heterogeneity is introduced based on the assumption of a lognormal pore size distribution and the Monte Carlo sampling method. The effects of kerogen geometric characteristics are incorporated by putting forward several representative cases for comparison. The effects of the organic permeability contrast (ratio of permeability to the inorganic permeability with no heterogeneity), total organic carbon (TOC, volume fraction), inorganic permeability heterogeneity and kerogen geometric characteristics on the normalised equivalent permeability (ratio of the intrinsic equivalent permeability to inorganic permeability with no heterogeneity) and the REA are discussed comprehensively. This work can provide a better understanding of shale oil rocks at the micrometer scale.     

A unified formulation for generalized oilfield development optimization

Oilfield development involves several key decisions, including the number, type (injection/production), location, drilling schedule, and operating control trajectories of the wells. Without considering the coupling between these decision variables, any optimization problem formulation is bound to find suboptimal solutions. This paper presents a unified formulation for oilfield development optimization that seeks to simultaneously optimize these decision variables. We show that the source/sink term of the governing multiphase flow equations includes all the above decision variables. This insight leads to a novel and unified formulation of the field development optimization problem that considers the source/sink term in reservoir simulation equations as optimization decision variables. Therefore, a single optimization problem is formulated to simultaneously search for optimal decision variables by determining the complete dynamic form of the source/sink terms. The optimization objective function is the project net present value (NPV), which involves discounted revenue from oil production, operating costs (e.g. water injection and recycling), and capital costs (e.g., cost of drilling wells). A major difficulty after formulating the generalized field development optimization problem is finding an efficient solution approach. Since the total number of cells in a reservoir model far exceeds the number of cells that are intersected by wells, the source/sink terms tend to be sparse. In fact, the drilling cost in the NPV objective function serves as a sparsity-promoting penalty to minimize the number of wells while maximizing the NPV. Inspired by this insight, we solve the optimization problem using an efficient gradient-based method based on recent algorithmic developments in sparse reconstruction literature. The gradients of the NPV function with respect to the source/sink terms is readily computed using well-established adjoint methods. Numerical experiments are presented to evaluate the feasibility and performance of the generalized field development formulation for simultaneous optimization of the number, location, type, controls, and drilling schedule of the wells.     

Statistical assignment of upscaled flow functions for an ensemble of geological models

Upscaled flow functions are often needed to account for the effects of fine-scale permeability heterogeneity in coarse-scale simulation models. We present procedures in which the required coarse-scale flow functions are statistically assigned to an ensemble of upscaled geological models. This can be viewed as an extension and further development of a recently developed ensemble level upscaling (EnLU) approach. The method aims to efficiently generate coarse-scale flow models capable of reproducing the ensemble statistics (e.g., cumulative distribution function) of fine-scale flow predictions for multiple reservoir models. The most expensive part of standard coarsening procedures is typically the generation of upscaled two-phase flow functions (e.g., relative permeabilities). EnLU provides a means for efficiently generating these upscaled functions using stochastic simulation. This involves the use of coarse-block attributes that are both fast to compute and correlate closely with the upscaled two-phase functions. In this paper, improved attributes for use in EnLU, namely the coefficient of variation of the fine-scale single-phase velocity field (computed during computation of upscaled absolute permeability) and the integral range of the fine-scale permeability variogram, are identified. Geostatistical simulation methods, which account for spatial correlations of the statistically generated upscaled functions, are also applied. The overall methodology thus enables the efficient generation of coarse-scale flow models. The procedure is tested on 3D well-driven flow problems with different permeability distributions and variable fluid mobility ratios. EnLU is shown to capture the ensemble statistics of fine-scale flow results (water and oil flow rates as a function of time) with similar accuracy to full flow-based upscaling methods but with computational speedups of more than an order of magnitude.     

Ensemble-Based Seismic and Production Data Assimilation Using Selection Kalman Model

Data assimilation in reservoir modeling often involves model variables that are multimodal, such as porosity and permeability. Well established data assimilation methods such as ensemble Kalman filter and ensemble smoother approaches, are based on Gaussian assumptions that are not applicable to multimodal random variables. The selection ensemble smoother is introduced as an alternative to traditional ensemble methods. In the proposed method, the prior distribution of the model variables, for example the porosity field, is a selection-Gaussian distribution, which allows modeling of the multimodal behavior of the posterior ensemble. The proposed approach is applied for validation on a two-dimensional synthetic channelized reservoir. In the application, an unknown reservoir model of porosity and permeability is estimated from the measured data. Seismic and production data are assumed to be repeatedly measured in time and the reservoir model is updated every time new data are assimilated. The example shows that the selection ensemble Kalman model improves the characterisation of the bimodality of the model parameters compared to the results of the ensemble smoother.

     

A simultaneous perturbation stochastic approximation algorithm for coupled well placement and control optimization under geologic uncertainty

Development of subsurface energy and environmental resources can be improved by tuning important decision variables such as well locations and operating rates to optimize a desired performance metric. Optimal well locations in a discretized reservoir model are typically identified by solving an integer programming problem while identification of optimal well settings (controls) is formulated as a continuous optimization problem. In general, however, the decision variables in field development optimization can include many design parameters such as the number, type, location, short-term and long-term operational settings (controls), and drilling schedule of the wells. In addition to the large number of decision variables, field optimization problems are further complicated by the existing technical and physical constraints as well as the uncertainty in describing heterogeneous properties of geologic formations. In this paper, we consider simultaneous optimization of well locations and dynamic rate allocations under geologic uncertainty using a variant of the simultaneous perturbation and stochastic approximation (SPSA). In addition, by taking advantage of the robustness of SPSA against errors in calculating the cost function, we develop an efficient field development optimization under geologic uncertainty, where an ensemble of models are used to describe important flow and transport reservoir properties (e.g., permeability and porosity). We use several numerical experiments, including a channel layer of the SPE10 model and the three-dimensional PUNQ-S3 reservoir, to illustrate the performance improvement that can be achieved by solving a combined well placement and control optimization using the SPSA algorithm under known and uncertain reservoir model assumptions.     

Optimization of well placement by combination of a modified particle swarm optimization algorithm and quality map method

Determining the optimum placement of new wells in an oil field is a crucial work for reservoir engineers. The optimization problem is complex due to the highly nonlinearly correlated and uncertain reservoir performances which are affected by engineering and geologic variables. In this paper, the combination of a modified particle swarm optimization algorithm and quality map method (QM + MPSO), modified particle swarm optimization algorithm (MPSO), standard particle swarm optimization algorithm (SPSO), and centered-progressive particle swarm optimization (CP-PSO) are applied for optimization of well placement. The SPSO, CP-PSO, and MPSO algorithms are first discussed, and then the modified quality map method is discussed, and finally the implementation of these four methods for well placement optimization is described. Four example cases which involve depletion drive model, water injection model, and a real field reservoir model, with the maximization of net present value (NPV) as the objective function are considered. The physical model used in the optimization analyses is a 3-dimensional implicit black-oil model. Multiple runs of all methods are performed, and the results are averaged in order to achieve meaningful comparisons. In the case of optimizing placement of a single producer well, it is shown that it is not necessary to use the quality map to initialize the position of well placement. In other cases considered, it is shown that the QM + MPSO method outperforms MPSO method, and MPSO method outperforms SPSO and CP-PSO method. Taken in total, the modification of SPSO method is effective and the applicability of QM + MPSO for this challenging problem is promising     

Waterflood management using two-stage optimization with streamline simulation

Waterflooding is a common secondary oil recovery process. Performance of waterfloods in mature fields with a significant number of wells can be improved with minimal infrastructure investment by optimizing injection/production rates of individual wells. However, a major bottleneck in the optimization framework is the large number of reservoir flow simulations often required. In this work, we propose a new method based on streamline-derived information that significantly reduces these computational costs in addition to making use of the computational efficiency of streamline simulation itself. We seek to maximize the long-term net present value of a waterflood by determining optimal individual well rates, given an expected albeit uncertain oil price and a total fluid injection volume. We approach the optimization problem by decomposing it into two stages which can be implemented in a computationally efficient manner. We show that the two-stage streamline-based optimization approach can be an effective technique when applied to reservoirs with a large number of wells in need of an efficient waterflooding strategy over a 5 to 15-year period.     

A note on transport of a pulse of nonlinearly reactive solute in a heterogeneous formation

Saturated flow takes place in geological formations of spatially variable permeability which is regarded as a stationary random space function of given statistical moments. The flow is assumed to be uniform in the mean and the Eulerian velocity field has stationary fluctuations. Water carries solutes that react according to the nonlinear equilibrium Freundlich isotherm. Neglecting pore scale dispersion (high Peclet number), we study the behavior of an initially finite pulse injection of constant concentration. Mean flux-averaged concentration is derived in a simple manner by using the previously determined solution of transport in a homogeneous one-dimensional medium and the Lagrangian methodology developed by Cvetkovic and Dagan [5] to model reactive transport in a three-dimensional flow field. The mean breakthrough curves are computed and the combined effect of reactive parameters and heterogeneity upon reduction of the concentration peak is investigated. Furthermore, with the aid of temporal moments, we determine equivalent reaction and macrodispersion coefficients pertinent to a homogeneous medium. This revised version was published online in July 2006 with corrections to the Cover Date.     

用油水相对渗透率确定镇泾油田长6储层的产液情况

油水相对渗透率可以精确刻划出油、水二相流体在孔喉中的流动情况,通过阿尔奇方程准确求取储层的含水饱和度,建立适合镇泾油田的束缚水饱和度计算模型,并运用"岩心刻度测井"的方法,通过回归法,用实测油、水相对渗透率曲线求取琼斯方程中的区域参数,最终建立适合本区的油水相对渗透率经验公式。结果表明,用测井数据可以进行油、水相对渗透率的计算,并且完全满足评价储集层的产液情况。由此建立的油水相对渗透率解释模型,可以进行镇泾油田长6储层的油、水层的划分,并对油、水分异不彻底的储层进行测井评价,有着重要的参考价值。     

Nodal and Mixed Finite Elements for the Numerical Homogenization of 3D Permeability

The aim of upscaling is to determine equivalent homogeneous parameters at a coarse-scale from a spatially oscillating fine-scale parameter distribution. To be able to use a limited number of relatively large grid-blocks in numerical oil reservoir simulators or groundwater models, upscaling of the permeability is frequently applied. The spatial fine-scale permeability distribution is generally obtained from geological and geostatistical models. After upscaling, the coarse-scale permeabilities are incorporated in the relatively large grid-blocks of the numerical model. If the porous rock may be approximated as a periodic medium, upscaling can be performed by the method of homogenization. In this paper the homogenization is performed numerically, which gives rise to an approximation error. The complementarity between two different numerical methods – the conformal-nodal finite element method and the mixed-hybrid finite element method – has been used to quantify this error. These two methods yield respectively upper and lower bounds for the eigenvalues of the coarse-scale permeability tensor. Results of 3D numerical experiments are shown, both for the far field and around wells.