How to Place Chemicals on Rod Pumped Wells with Fluid Up the Backside without Significantly Increasing Well Costs

Transcription

1 How to Place Chemicals on Rod Pumped Wells with Fluid Up the Backside without Significantly Increasing Well Costs Steve Hochanadel Senior Staff Production Engineer July 30, 2015

2 Agenda Introduction to EP Energy Rod Pumping Challenges in Eagle Ford Chemical Treating Methods and Comparison Summary 2

3 EP Energy EAGLE FORD SHALE Net Acres: ~ 82,000 1Q 15 Net Daily Production (MBoe/d): 54.7 Gross Drilling Locations: 872 ALTAMONT Net Acres: ~177,000 1Q 15 Net Daily Production (MBoe/d): 17.1 Gross Drilling Locations: 1,304 WASATCH DIMMIT WEBB SUMMIT DUCHESNE LA SALLE DAGGETT Note: Acreage and gross drilling locations as of 12/31/14. UINTAH EP Energy Acreage Net Acres: ~ 180,000 1Q 15 Net Daily Production (MBoe/d): 17.9 Gross Drilling Locations: 3,300 UPTON HAYNESVILLE SHALE Net Acres: ~38,000 1Q 15 Net Daily Production (MMcf/d): 76 Gross Drilling Locations: 197 PANOLA SHELBY CADDO WOLFCAMP SHALE CROCKETT REAGAN DE SOTO IRION BOSSIER RED RIVER Oil-focused growth company with four core asset areas Leading operations Low cost Top-tier well results Increasing efficiency Strategic positions in resourcerich basins ~477,000 net acres ~5,700 risked drilling locations, 30+ years Delivering results Improved production rates and costs Growing oil production Leading hedge position 3

4 Wolfcamp Eagle Ford 4

5 Eagle Ford: Franchise Oil Program DIMMIT LA SALLE 1Q Highlights Highest-return program with significant growth Five rigs and four stimulation crews 38 wells completed Improved performance ¹ Break-even oil price (WTI) required to generate a 10% pre-tax IRR using most current well costs and current type curve and $3.50 per MMBtu (HH). Increased target landing zone accuracy Drilling cycle time improvements 40-acre development improving cost efficiencies increasing reserve recoveries per section Completion optimization resulting in higher IP rates Break-even oil price¹ of $40 per Bbl 2015 Outlook Similar number of completion activities as 2014 in cornerstone asset Leveraging recent drilling and completion success along with lower costs 5

6 EPE Artificial Lift Mix in Eagle Ford 4% Gas Lift 20% Rod Pump Jet Pump 76% 470 Wells on Artificial Lift 6

7 Rod Pumping Challenges in Eagle Ford High initial producing rates, then steep declines Downhole gas interference Wellbore directional paths Frac interference Paraffin Corrosion High gathering system pressures Size of production casing Corrosion from CO 2 and Microbes Iron Sulfide Iron Carbonate Calcium Carbonate 7

8 What We are Chemically Treating Paraffin Corrosion Scale Bacteria 8

9 Fluid Up Tubing Fluid Up Backside Tubing Tubing Production Casing Backside (Annulus) 9

10 Chemical Treating Methods Continuous treatment down backside Batch or truck treatment down backside Capillary String Side stream flush treatments down backside Hot oiling Downhole chemical screen Solvent circulation treatments Apply chemical product with proppant during completion 10

11 Capillary String Options Open-Ended to Backside Inject into Tubing 11

12 Downhole Chemical Screen Sits below the pump intake Chemical sticks are shrouded in screened tubular joints Acts similar to a tea bag Sticks dissolve slowly over time Dissolvable Chemical Sticks Inside a Screen 12

13 Treating Method Comparison Treating Method Pros Cons Capillary String Theoretically can inject at the exact spot continuously Injects even if well is flowing up backside Solvent Circulations Treats both the annulus and the tubing for paraffin Side Stream Flush Helps push chemical to bottom Simple to install Chemical pumps don t always work Cap string can plug Costly to run Potential problems pulling cap string with tubing Lose hours of production Can shorten pump life if circulating solids Trial and error to get design injection rate Probably not effective downhole if well flowing up backside 13

14 Treating Method Comparison Treating Method Pros Cons Chemical Screens Can set below pump intake Treat for paraffin, scale, and corrosion Effective if well flows up backside Inexpensive to install Can last up to one year Product may not last long Have to pull tubing to replenish Batch or Truck Treatment Treatment with Proppant During Completion Fairly simple Treats both the annulus and tubing May provide 1-2 years of effectiveness Treat for scale and paraffin Effective if well flows up backside May not have full coverage between treating intervals May introduce contaminants into wellbore Can flush solids into pump May need to shut in well afterwards Difficult to quantify results Initial cost 14

15 Treating Method Comparison Treating Method Pros Cons Continuous Treatment down Annulus Treat for paraffin, scale, and corrosion Simple installation at surface Hot Oiling Removes paraffin in both annulus and inside of tubing Ineffective downhole if well flowing up backside Chemical pumps may not work continuously Need to monitor inventory and usage to achieve design concentrations May leave heavy paraffin ends on tubulars and rods Push solids into pump 15

16 Summary Flow up backside on a rod-pumped well is not necessarily a bad thing Poses downhole chemical treating challenges In Eagle Ford, we are treating paraffin, corrosion, scale, and bacteria Cap strings, downhole chemical screens, and treating with proppant placement provide some protection if well flows up backside Other methods to treat are available with trade-offs 16