INTELLIGENT WELL COMPLETION

Intelligent completions: A decade of innovation revolutionizes the industry

 It’s an old choice: Do you want standardized, less expensive solutions, or do you want custom innovation? It depends, in part, on what you’re willing to pay, and exactly to what degree you intend to integrate. 

Michael Konopczynski and Vicky Jackson Nielsen, WellDynamics, Houston

This year marks the tenth anniversary of the first installation of a hybrid electro-hydraulic well completion technology that integrated real-time pressure and temperature sensing, using permanent downhole gauges, with downhole, remotely-operated, flow-control devices. The proprietary system, called SCRAMS, was capable of multiplexing an almost unlimited number of zones.

The well was operated by Saga in Snorre field in the North Sea. How has the market received this technology? What are the ever-expanding applications for the technology? It is appropriate to contemplate how the technology might meet operators’ demands for a more commoditized�yet more customized�system that delivers everything they want, rapidly, with a low price tag.

Four months after its installation, the prototype failed�but four months was long enough to demonstrate the feasibility of the system and its potential to deliver significant value. During the next six years, the ensuing applications of intelligent well technology�completions providing downhole flow control, with or without downhole sensing�followed the adoption patterns of most new technologies.

The game-changer came when a number of major projects in diverse geographical locations, such as the North Sea, the Gulf of Mexico and the Asia Pacific region, revealed high-value benefits that caused operators to re-evaluate their impressions of intelligent completion. The technology began to build an impressive track record, and the intelligent well market took hold.

EVOLUTION OF TECHNOLOGY

For the last four years, operators have gradually moved from testing the technology to demonstrate functionality and reliability, to implementing it in field developments to enhance reservoir management. Two key factors have catalyzed adoption of the technology:

1. Demonstrable and statistically significant improvements in the reliability of intelligent completions. Equipment suppliers have driven these improvements by drawing on the growing accumulation of in-well experience. This allowed rigorous engineering, manufacturing and quality control programs to meet the demands of a growing number of well environments.

2. Continuous expansion of the capabilities of intelligent completions equipment. As the reliability of this equipment increases and its market viability becomes clear, early suppliers of the technology have seen an increase in the number of competitors. Strengthening competition, as well as the demands of users who have experienced the benefits of the technology, has driven a rapid pace of innovation.

Today, the intelligent well system of choice incorporates hydraulically actuated, multi-position, downhole flow control valves with one or more electronic pressure and temperature sensors. These systems provide a basic level of near-reservoir, real-time data combined with variable flow control for each zone. Fiber optic technologies, often distributed temperature sensing, may be combined with flow control, though these are more often used in stand-alone applications.

And even the first electro-hydraulic intelligent completion product continues to be used in some locations, although the level of complexity and the design elements for increased reliability have made these systems, as well as all-electric systems, too costly for most markets.

DRIVERS FOR GROWTH

Perhaps the trend having the biggest influence on intelligent well technology is the expanding range of applications. Dump-flood control, auto-gas lift, thermal enhanced recovery, high-pressure/high-temperature wells, and multi-zone massive frac stimulation are some of the applications pushing the boundaries.

Historically, intelligent completions were used to provide minimum-intervention solutions for single wells�but the real value of the technology will be seen when operators include it as part of their strategy to optimize production from an entire field, as they create a “digital oilfield.” Long a vision of the upstream industry, the digital oilfield integrates all the surface and downhole field data in a collaborative environment to help operators make better decisions�and act on those decisions in time to impact production. Operators are now taking steps to integrate real-time data with predictive models to monitor, measure, model and, ultimately, optimize an asset.

A collaborative decision-making environment provides several benefits to manage, plan and execute proactive production and injection optimization strategies. Resolving conflicting objectives becomes easier, such as increasing net oil production while containing water production. Such an environment also supports management of complex recovery methods, like chemical flooding, miscible EOR and thermal recovery.

INTELLIGENT COMPLETION TECHNOLOGY: A COMMODITY?

Today, intelligent completion systems are routinely used by most of the world’s major oil companies; in fact, with increased numbers of projects relying on intelligent completions, some operators view them almost as commodities. No longer as concerned with equipment reliability, and convinced of the technology’s value, operators are now focusing on speedier delivery and lower prices�yet at the same time requiring greater levels of customization and sophistication, expecting one-of-a-kind systems that can still be delivered quickly, at a low cost.

This scenario leaves suppliers with a new conundrum: How to balance satisfying a market that demands customization, with commodity-level delivery and prices, while still delivering high-quality, innovative products that can support the industry in the future.

The answer requires suppliers and users to consider:

• The discrepancies between the demands of the market and the operational capabilities of suppliers. Most operators want an intelligent well system that exactly addresses his/her company’s quality plan, unique material requirements and control fluid requirements. While some projects clearly require special customization and quality, many need only off-the-shelf solutions that do not necessarily require special quality plans or customization. Certainly, suppliers and users could save time and money if both agree to some industry-wide standardization of requirements and specifications�but is it reasonable to expect that level of cooperation in a competitive market?
• The appropriate levels at which a lower-price commodity model may actually drive better manufacturing processes. Widespread use of intelligent completion technology could improve the economic return for operators. Economies of scale could accelerate the technology through improved cash flow, and re-investment in the technology and manufacturing processes will enhance its capabilities while reducing the costs.
• An “evergreen” solution that can enhance bottom line profits for operators and suppliers. Ultimately, in any new and evolving technology, there needs to be a balance between the need for custom designs and the standardization required for commodity-like solutions. The compromise solution must offer cost-effective manufacturing benefits and quick delivery without jeopardizing quality. An evergreen solution must also have the flexibility to evolve and incorporate new technical developments. These demands are best addressed by modular solutions, offering the benefit of customization for certain critical components while maintaining standardization for most of the elements.  

THE AUTHORS
	Michael Konopczynski is manager of Reservoir Solutions and Commercialization at WellDynamics International, based in Spring, Texas. Prior to joining WellDynamics in 2001, he was with Shell Canada in various engineering and technology roles for close to 20 years. Contact: mike.konopczynski@welldynamics.com  .
	Vicky Jackson Nielsen is the project engineering manager for WellDynamics B.V. She has worked in intelligent completions since 1997, shortly after joining Halliburton. Previously, she worked for BJ Services and Unocal. She completed her undergraduate degree in petroleum engineering from Colorado School of Mines and her Master’s in petroleum engineering from University of Texas at Austin. She has written numerous technical papers relating to intelligent completions. Nielsen is a registered engineer in the state of Texas, and is a member of the SPE.