Abstract

Machine learning techniques have fundamentally altered how oil and gas industry practitioners design fracture operations. In this paper, we perform data analytics utilizing response surface methodology (RSM), a group of statistical techniques that develop a functional relationship between an output variable of interest and several associated input variables, to optimize the output. We apply RSM to optimize horizontal well production based on initial production (IP) of horizontal oil wells for 180 days (IP180 Oil), as a function of five input variables: reservoir type, fracturing fluid (gal/ft), proppants (lbm/ft), cluster spacing, and stage length (ft). The RSM model correlates the initial production of each well to the input variables via a single equation, thus allowing for exploration of the fitted response surface in order to maximize production. Although the choice of the five inputs is made based primarily after consultation with industry professionals, we validate our selection by also applying an assortment of data-analytics-based methods that attempt to rank variable importance and thereby identify completion variables that may be predictive of initial production. The findings rank all five variables above the 50th percentile, thus indicating that the chosen variables have merit. This procedure is applied to a dataset of 201 horizontal wells from the Wolfcamp formations. The model fits reasonably well, with R2 = 61%, a very significant F-statistic p value, and a predicted versus observed values scatterplot indicating a good fit. The RSM analysis suggests that, within the feasible space defined by this dataset, maximum values of IP 180 Oil may be obtained by setting the fracturing fluid in gal/ft at approximately 1972, while simultaneously maximizing the remaining input variables (proppant loading, cluster spacing, stage length). The outcome indicates the possible directions to be taken in seeking a global optimum initial production for the setting of completion variables. Iteration of this scheme may lead to a near-optimum global solution. The real utility of this work may be indicating the way different studies may be designed to optimize production, each with its own selection of inputs, and ultimately be combined in a meta-analysis.

Highlights

  • Challenges to oil production in the Wolfcamp range from low productivity and quick decline to high variability in the response of wells due to fracture treatment

  • A key question is, what are production metrics? Production metrics may be represented in initial production (IP) IP30, through IP365 initial production for a rolling average of 30 through 365 days; cumulative production for the first number of days or months of the life of the well, and Estimated Ultimate Recovery (EUR)

  • How should one define “appropriate”? In classical regression analysis (Neter et al 2004), one can begin to untangle these inter-related issues by measuring the decrease in prediction error variance when each variable by itself is added to the model in turn: important predictors should lead to large decreases in Mean Squared Error (MSE)

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Summary

Introduction

Challenges to oil production in the Wolfcamp range from low productivity and quick decline to high variability in the response of wells due to fracture treatment. The O & G industry recognizes peak rate (the starting point of production decline); initial production (IP30) as a rolling average for 30-day production; and IP60, IP90, IP180, and IP365 as a measure of production performance. Production metrics may be represented in initial production (IP) IP30, through IP365 initial production for a rolling average of 30 through 365 days; cumulative production for the first number of days or months of the life of the well, and Estimated Ultimate Recovery (EUR). Recent industry efforts established multistage fracture design optimization for unconventional shale oil and gas basins to locate the number of fracture stages that maximize NPV (Rashid et al 2014).

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