Share on linkedin
Share on facebook
Share on email

$24 Oil – Is Downhole Monitoring Essential?

Downhole monitoring leads to increased production, better infill drilling decisions, and optimized well spacing

"You Can't Manage What You Don't Measure"

The Problem

Today (April 9th, 2020) oil prices are sitting at a near record low of $24 per barrel.

This unprecedented drop in commodity price has left companies scrambling, searching for means to cut costs wherever possible. For Gas Lift, Rod Pump, and ESP wells in Shale Formations efficiencies need to be found in order to remain profitable.

Without the appropriate downhole data, companies are operating blind. This leads to inefficient use of resources, and poor drilling decisions.

  • Production companies increasingly face daily challenges to protect valuable reservoir rock and expensive wellbore completions from offset fracturing operations. Additionally, although bottomhole pressure (“BHP”) can be derived using surface pressure and flow rates, surface data lacks the necessary accuracy and data frequency to understand the reservoir performance and optimize development decisions
  • Multiphase flow effects are the primary reason for the inadequacy of surface calculated BHP. Furthermore, gas lift wells complicate surface calculated BHP due to varying injection rates and pressures, paired with compressor downtime
  • Finite human capital resources mean operators must monitor more wells, remotely, with fewer people

The Solution

Along with Endurance Lift Solutions, we install real-time downhole monitoring systems in the Permian, Mid Con, and Bakken. These systems accurately measure downhole pressure and temperature.

These gauges can be distributed anywhere throughout the completion. This includes below the deepest gas lift valve, and at the bottom of an ESP system.

Real-time gauges increase production 10%, and help operators save hundreds of thousands or dollars on post-frac parent well costs.

Gas-Lift-Completion-Drawing-(Web)

Figure 1: Gas Lift completion drawing with downhole monitoring system

PT150-Digital-Downhole-Gauge-With-4mm-TEC-GEO-PSI

Figure 2: Our PT150 Gauge with our innovative 4mm Downhole Cable

The Results

Real-time downhole monitoring creates a rapid return on investment. Several customer partners report a netback of under 4 weeks despite a low commodity price environment. 

The top E&P companies that have the best chance of weathering the storm all utilize downhole monitoring technology and capitalize on data driven solutions.

Some of the expected benefits from running a downhole monitoring system for Gas Lift operators in Shale formations include but are not limited to the list below.

Real-Time Downhole Monitoring Provides Millions of Dollars in Value

  • Augment stacked multi-lateral zone completion decisions
  • Achieve an average increase of production of 10%. With accurate data you can ensure that wells are not liquid loading and that gas compressor capacity is distributed efficiently
  • Identify near-by wellbore damage and save on costly post-frac wellbore cleanout costs. Real-time downhole gauges provide insight into frac hits and the parent / child relationship which will help optimize and control the frac
  • Monitor flowback remotely, from any device. Understand the initial production potential of new wells and the effect of wellbore interference from adjacent wells
  • Optimize well spacing and infill drilling plans. As oil pricing continues to tighten, it’s critical to have an exploitation model that maximizes ROI in the future. Customers that have widely adopted downhole monitoring have the ability to pick sweet spots for future drilling activity
  • Protect long-term reservoir value through tracking of offset completions
  • Gas Lift injection rate optimization. Downhole monitoring enables operators to quickly identify completion and diagnose their gas lift design for maximum efficiency
  • Monitor production with less human capital. Intelligent decisions through remote data management

To learn more about our solutions for Gas Lift completions Contact us.

You can also download our guide to Gas Lift Solutions below.

Gas-Lift-Solutions-Preview

Gas Lift Solutions

A detailed guide to the components, and benefits of a GEO PSI monitoring system for Gas Lift wells.
Free

Want to be the first to know? Subscribe to our Newsletter!

Enter your email below and we will send you our latest content directly to your inbox. Be the first to read about topical discussions, and new product releases.

Leave a Reply

More-Articles-Icon-Two-Documents-Blog-News-GEO-PSI
Efficient-Well-Interventions-Utilizing-eSlicklineTM-GEO-PSI
Top Posts
Nick Nazarovs

Efficient Well Interventions Utilizing eSlicklineTM

Our eSlicklineTM cable has revolutionized how oil & gas operators plan and execute their wireline based well interventions. History Of Wireline Wireline logging started with Conrad Schlumberger in 1910. While teaching physics at the École des Mines in France, he began inventing the wireline platform that we are familiar with today. In 1912, utilizing primitive

Read More »
The-Importance-Of-Lightning-Protection-GEO-PSI
Top Posts
Jeff Scott

The Importance Of Lightning Protection

It’s lightning season – Are your downhole gauges and surface electronics protected? It’s spring again, and that means that we are heading into storm season! Especially in places like Texas and the Mid-West thunderstorms can wreak havoc on infrastructure including oilfield equipment. If you operate in a region where seasonal lightning strikes are common you’ll

Read More »
Solutions-High-Temperature-Applications-SAGD-GEO-PSI
Archive
Jeff Scott

Artificial Lift Innovation

A New Technology in Real Time Downhole Vibration, Pressure, and Temperature Measurement for Artificial Lift Systems Our Breakthrough In Downhole Telemetry Our R&D engineering group at GEO PSI has developed a new robust downhole telemetry for our permanent downhole tools that greatly improves the speed, quantity, and quality of downhole data transmission. Similar to most other

Read More »