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J. Indones. Math. Soc. (MIHMI) Vol. 15, No. 2 (2009), pp. 105–111.
ROBUST DECLINE CURVE ANALYSIS
Sutawanir Darwis, Budi Nurani Ruchjana, and Asep
Kurnia Permadi
Abstract. Empirical decline curve analysis of oil production data gives reasonable an- swer in hyperbolic type curves situations; however the methodology has limitations in fitting real historical production data in present of unusual observations due to the effect of the treatment to the well in order to increase production capacity. The development of robust least squares offers new possibilities in better fitting production data using decline curve analysis by down weighting the unusual observations. This paper proposes a robust least squares fitting lmRobMM approach to estimate the decline rate of daily production data and compares the results with reservoir simulation results. For case study, we use the oil production data at TBA Field West Java. The results demonstrated that the approach is suitable for decline curve fitting and offers a new insight in decline curve analysis in the present of unusual observations.
1. INTRODUCTION
Existing decline curve analysis are based on Arps equations(Arps, 1945), and there have been a great number of papers on this topic. Spivey (1986) presented an algo- rithm for hyperbolic decline curve fitting based on binomial and Taylor expansion. Fetkovich. Et al (1996) developed concepts for decline curve forecasting and pro- vided a theoretical basis for the Arps equations. Li and Horne (2003) developed a decline curve analysis based on fluid flow mechanism and discussed its application to Kern oil fields (Reyes, Li, Horne, 2004). Mattar and Anderson (2003) high- lighted the strengths and limitations of Arps decline analysis in a comprehensive methodology for analysis of production data. Decline curve analysis was used in evaluating well performance in multiwell system (Marhaendrajana and Blasingame,
Received 15-07-2008, Accepted 19-11-2009. 2000 Mathematics Subject Classification: 62G35. Key words and Phrases: decline curve analysis, robust least squares.
106 Sutawanir Darwis et. al.
2001). Cheng, Wang, McVay and Lee (2005) used stochastic approach to evaluate the uncertainty in reserve estimation based decline curve analysis. A stochastic reserve estimation using decline curve analysis using Monte Carlo simulation to obtained reserve distribution was discussed in Jochen and Spivey (1996). Arps decline curve analysis is an empirical method and requires no knowl- edge of reservoir parameters. The application of the method involves estimating a parametric model to the historical production data using least squares method. There are many different curve fitting methods available, however there is no one clear method to handle unusual observations. The available methods leads to un- satisfactory results due to the influence of the unusual observation. This paper proposes a modification of Arps decline curve analysis using results from robust regression analysis where the unusual observations receives less weight compared with the other observations. The exponential decline curve is fitted using robust cube polynomial regression to obtain a better representation of the fluctuation of the historical production. The similar approach was developed for harmonic decline curve analysis. Inspired from growth curve modeling, a logistic decline curve is pro- posed to estimate the global trend and applied to the historical data. The robust trend curve fitting results Arps equations and logistic model are used to extrap- olated the future production decline and compared with the reservoir simulation results to evaluate the proposed approach.
- ESTIMATING GLOBAL TREND
Management needs to reduce the risks associated with decision making, and one of the ways in which this can be done is by anticipating future well perfor- mance more clearly. Extrapolation of production history has long been considered the most accurate and defendable method of estimating remaining recoverable re- serve from a well and, in turn, a reservoir. The technique for relating production to time is known as decline curve analysis, and is a very useful tool for estimating future production. The decline curve is often used to determine the economic limit of a well, estimating the remaining reserves, and forecasting the present worth of the oil and gas reserves in the future. Three types of decline curves are considered, although only two of three techniques, namely, exponential and hyperbolic, com- monly occur in reservoirs. The hyperbolic decline model predicts a longer well life than is predicted by the exponential decline model. Also, the exponential forecast provides the lowest estimate of recoverable reserves. Experienced evaluators avoid extrapolating hyperbolic declines over long time periods, because they frequently result in unrealistically high reserve and value estimates. Arps [1] studied relation- ship between flow rate and time for producing wells. Assuming constant flowing pressure, he found relationship:
dq dt
= −Dq(b+1)^ (1)
where D and b are empirically determined constant, the empirical constant b ranges from 0 to 1.
108 Sutawanir Darwis et. al.
Figure 1: (a) Historical 367 daily production data (b) Typical case of exponential decline, Arps (1945) (c) Typical case of hyperbolic decline
The equation summarizes the decline rates for exponential (b = 0), hyperbolic (0 < b < 1) and harmonic (b = 1). The linearization of exponential decline leads to linear regression of on t and can be estimated using standard least squares method. It is well known that the results of standard least squares are very sensitive to unusual observations. The results can be misleading. This paper proposes a modification of least squares exponential decline by using lmRobMM and a cube polynomial of t to reduce the influence of unusual pro- duction data and to capture the curvature of data fluctuation. lmRobMM performs high breakdown point and high efficiency regression. Robust regression models are useful for fitting linear relationships when the random variation in the data is not Gaussian (normal) or when the data contain significant outliers. In such sit- uations, standard linear regression may return inaccurate estimates. The robust MM regression method returns a model that is almost identical in structure to a standard linear regression model. This allows the production of familiar plots and summaries with a robust model.
The M estimator attempts to optimize the likelihood function. Similar idea was applied to harmonic decline curve; 1/qt is regressed with time t based on the equation 1/qt = (1 + Dt + At^2 + Bt^3 )/itq 0. Due to the similarity of de- cline curve to the growth modeling, a logistic curve was fitted to daily production qt/q 0 = exp(−Dt + At^2 + Bt^3 )/(1 + exp(−Dt + At^2 + Bt^3 )). Nls (nonlinear least squares) procedure was used to estimate and to evaluate the significance of the model parameters. The results from fitting the exponential decline, harmonic de- cline and logistic curve are compared to the reservoir simulation forecasting. The reservoir simulation results for t = 368 to t = 2127 days are based on fluid flow equations and implicit method using standard reservoir simulator software (Figure 2).
3. MAIN RESULT
Figure 3 shows the cube lmRobMM curve fitted to historical production data and comparison of its prediction to reservoir simulator. The lmRobMM is l nqt =
- 5 − 0. 0012 itt + 0. 0000066 t^2 − 0. 000000015 t^3. The decline rate of production is
Robust Decline Curve Analysis 109
Figure 2: Production prediction based on reservoir simulator
0.0012, and the fitted curve reproduces the curvature and the global trend of data fluctuation. However, there is a significance difference between predicted produc- tion with the reservoir simulator. The fitted model underestimates the simulator results. The display leads us to consider other models such as harmonic decline and logistic curve.
Figure 3: Robust least squares cube exponential decline rate, (a) The historical data used for model fitting (b) Global trend estimate using cube robust exponential decline (c) Comparison of the model prediction with reservoir simulator. The robust least squares underestimate the reservoir simulator
Figure 4 shows the results of lmRobMM harmonic decline. The fitted equa- tion is 1/qt = 0. 00018 − 0. 00000022 t or itqt = 5555. 6 /(1 + 0. 0012 t and yields a decline rate 0.0012 and initial production 5555.6 (anf 4914.77 for exponential de- cline). The display also shows that the harmonic decline over estimate the reservoir simulator prediction. The reservoir simulator prediction is between exponential and harmonic decline since these two models are the extreme of Arps equations (b = 0andb = 1). Figure 5 shows the estimation of the trend using logistic curves. The logistic curve is itqt = 9923.4(exp(− 0 , 00126 t)/(1 + exp(− 0. 00126 t))) and the decline rate is 0.00126. Compared to reservoir simulator, the logistic curve is close to the simulator compared with other models.
Robust Decline Curve Analysis 111
Acknowledgement. The authors thanks to the General Manager Deepwater Project, Chevron Indonesia Company, Chevron IndoAsia Business for financial support and Prof. Dr. J. Bruining also Dr. Rik Lopuhaa from TU Delft for a nice discussion.
REFERENCES
- J.J. Arps, “Analysis of Decline Curves”, Trans AIME, 160 (1945), 228–247.
- Y. Cheng, Y. Wang, McVay and W.J. Lee, “Practical Application of a Probabilistic Approach toEstimate Reserves Using Production Decline Data”, SPE95974, presented at Annual Technical Conference and Exhibition, Dallas Texas USA, (2005), 1–13.
- M.J. Faddy and M.C. Jones, “Modelling and Analysis of Data that Exhibit Temporal Decay”, Appl.Statist, C, 48:2 (1999), 229–237.
- M.J. Fetkovitch, E. J. Fetkovitch, and M.D.Fetkovitch, “Useful Concepts for Decline Curve Forecasting, Reserve Estimation and Analysis”, SPE Reservoir Engi- neering (SPERE), (1996), 13–22.
- N.F. Haavardsson, and A.B. Huseby, “Multisegment Production Profile - A Tool for Enhan- ced Total Value Chain Analysis”, Journal of Petroleum Science and Engineering , 58 (2007), 325–338.
- V.A. Jochen and J.P. Spivey, “Probabilistic Reserve Estimation Using Decline Curve Ana-lysis with the Bootstrap Method”, SPE36633, presented at SPE Annual and Technical Conference, Denver Colorado USA, (1996), 1–8.
Sutawanir Darwis: Statistics Research Division, Faculty of Mathematics and Natural Sciences, Institut Teknologi Bandung, Bandung, Indonesia. E-mail:[email protected]
Budi Nurani Ruchjana: Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Bandung, Indonesia. E-mail:[email protected]
Asep Kurnia Permadi: Reservoir Engineering Research Division, Faculty of Earth Sci- ences and Mining, Institut Teknologi Bandung, Bandung, Indonesia E-mail:[email protected]
