Society of Petroleum Engineers Distinguished Lecturer Lecture Season. Modern Perforating Techniques: Key to Unlocking Reservoir Potential

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1 Modern Perforating Techniques: Key to Unlocking Reservoir Potential Andrew Martin Schlumberger Perforating is a key part in any well completion, being the link between wellbore and reservoir rock. Most think of perforating as being the act of running guns loaded with shaped charges into a well on wireline or tubing and blasting holes as deep as possible into the formation. However, techniques and models have recently evolved that clearly show that the focus should be on perforating for productivity, rather than perforating for penetration. The presentation leads the audience through the research, experiments and models that show how, today, we can maximize reservoir potential through a perforated completion. It highlights the importance of not just penetration, but also shot density and perforation clean up, as well as the need to bring the well on production without damaging new perforations. The one idea I would like the members to take away from this lecture is that they should take care of how they perforate their wells and use the techniques available or risk losing thousands of barrels of production. These techniques apply to new wells, old wells and also help delay unwanted events such as production below bubble point or condensate banking. So not only wells should produce better, but they should also flow for longer without intervention. (Note that this presentation can be tailored for specific local requirements such as "Perforating for Fracturing" or "Perforating Carbonates". Andy Martin is Technical Director of Perforating for Schlumberger having joined the company in 1979 as a field engineer. His career has taken him through operations, teaching cased hole services and technical writing. In 1996 Andy moved to Engineering Rosharon, Texas where perforating systems are developed, shaped charges manufactured and perforating research conducted for Schlumberger. Since then he has been involved in all aspects of perforating and regularly presents and teaches on the topic. He is a member of SPE, SPWLA and IExE and is a Schlumberger Advisor. Andy graduated from Oxford University obtaining an MA in Engineering Science.

2 Society of Petroleum Engineers Uncertainty Assessment Using Reservoir Simulation Models - Practical Guidelines Anil Ambastha Chevron Nigeria Limited Uncertainty assessment using reservoir simulation models for green- and brown-field situations has become a common practice. While capturing uncertainties in forecasts is required in all situations, developing multiple history-matched models is also an important goal for brownfield situations. Objective of this talk is to provide systematic and practical guidelines for uncertainty assessment work using reservoir simulation models. This talk discusses steps involved in any uncertainty assessment including selection of uncertain parameters and their ranges, practical experimental design methods, appropriate response or tracking functions (or variables), and data analysis techniques. Roles of lessons learnt from a base-case history-match exercise for a brownfield situation as well as earth modeling/ petroleum engineering knowledge in setting up appropriate parameters and ranges are emphasized. Guidelines are provided to judge quality of history match based on prudent interpretation of response or tracking functions/variables. A Monte Carlo simulation-based methodology to develop multiple history-matched models for brownfield situations is presented in detail including practical tips on problem setup and analysis of results. Unique nature of uncertainties related to forecasting situations is discussed with an emphasis on a need to engage all operational and facilities personnel to develop adequate forecast problem description and economic success metrics. Guidelines presented in this talk are illustrated using a case study example. Practical tips presented in this talk would be of use to all reservoir simulation engineers carrying out uncertainty assessments and always remember one thing - no matter how careful we are, we cannot assess the impact of unidentified uncertainty. Anil Ambastha has 26 years of experience in various facets of oil and gas reservoir engineering, including applied reservoir simulation, pressure transient analysis, and thermal recovery, since his Ph.D. in petroleum engineering from Stanford University. He has worked in 6 countries and currently serves as "Reservoir Simulation Unit Lead" at Chevron Nigeria Limited. He also served as an Executive Editor of SPE Reservoir Evaluation and Engineering journal (Reservoir Engineering side) from He is a winner of three SPE International Awards (Lester Uren Technical Excellence, Distinguished Member, and Distinguished Service), seven "Outstanding Technical Editor" Awards, and "A Peer Apart" Award.

3 Society of Petroleum Engineers Well Design and Integrity: Importance, Risk and Scientific Certainty Brun Hilbert Exponent Failure Analysis Associates, Inc. The term "Well Design and Integrity" has taken on added meaning as a result of intense media scrutiny and public interest regarding hydraulic fracturing and the tragic Macondo well blowout in the Gulf of Mexico. The complexities and costs of well design have increased significantly to meet the challenges of ultra-deep wells exceeding 30,000 ft., ultra-hpht wells (500F and 30,000 psi), and ultra-deepwater drilling (exceeding 10,000 ft.). As a consequence, the risk to companies designing wells for these applications has increased. As we know from recent events, the consequences of failures can be enormous, and minimizing the risk of such catastrophic failures is imperative. It is not simply coincidental that the engineering tools for well design have become ever more complex. Tools such as nonlinear finite element analysis (FEA), computational fluid dynamics (CFD), and multi-physics software are now commonly used. What are these tools and the input data required for output of dependable and accurate results? This presentation will summarize applications of these tools, exhibiting their input requirements, and output interpretation and quality. Applications will include threaded connection pressure integrity, cement and rock strength and deformation, formation-cementcasing interactions, all of which involve complex nonlinear material and interface behavior. I will discuss computational modeling of the temperature dependent, viscoplastic response of salt and "soft" porous rocks, and compactive behavior of high-porosity formations. Downhole tools may include stainless steels, elastomer and polymer components. Seal rings and inflatable packers are highly temperature dependent and exhibit significant creep behavior. Calibration of material model parameters is vitally important, but for non-metals can require a significant number of samples, which are difficult and expensive to acquire and test. The correct selection of a validated material model can be the key to success or failure in minimizing risk. Dr. L. Brun Hilbert, Jr. is a Principal Engineer in the Mechanical Engineering Practice at Exponent Failure Analysis Associates, Inc., and consults in mechanical and petroleum engineering. In his work, Dr. Hilbert analyzes the root cause of failures, and performs proactive consulting to assist clients in failure prevention, design improvement, and risk minimization. He has worked in the upstream petroleum industry for over 30 years and has been an SPE Member since He performed applied research in the Drilling & Completions Division of Exxon Production Research Company. He holds a Ph.D. degree in Rock Mechanics from the University of California, Berkeley, and an MS degree in Mechanical Engineering and BS degree in Mathematics from the University of New Orleans.

4 Society of Petroleum Engineers First-Ever Comprehensive Environmental Characterization of Hydraulic Fracturing for Shale Oil and Gas Production Daniel Tormey Environ Corporation The well completion process of high volume hydraulic fracturing has become a touchstone for opposition to the development of oil and gas resources from shale source rocks. Although the development of shale gas and oil has brought substantial economic, geopolitical, and climate change benefits to the United States, hydraulic fracturing has displaced global climate change as the most controversial environmental policy issue. As other countries evaluate development of shale oil and gas, these same environmental concerns are available on the internet and media sources. Without data, the concerns become a substantial hindrance to acceptance of shale gas development. This study presents the first-ever peer-reviewed study that quantifies the effects of two specific high-volume hydraulic fracturing jobs to 14 different environmental resource categories. The objective was to provide factual information supported by a high quality dataset to guide policy making. None of the measurements detected a change due to hydraulic fracturing, including microseismic effects, ground motion and induced seismicity, water quality, methane migration, community health, well integrity, fracture containment to the target zone, and others. The hydraulic fracturing occurred in the center of Los Angeles, California, at the largest urban oil field in the US. The level of community and regional concern, the breadth of the study, and many of the results are applicable to other shale oil and gas areas worldwide. The results provide the first dataset that addresses the range of concerns directly, and finds no adverse effects to any of the environmental resource categories. Dr. Tormey is an expert in energy and water. He works with the environmental aspects of all types of energy development, with an emphasis on oil and gas, including hydraulic fracturing and produced water management, pipelines, LNG terminals, refineries and retail facilities. He has conducted important assignments in onshore, offshore, nearshore, estuarine, riverine and glacial environments. Dan has worked throughout the US, Australia, Indonesia, Italy, Chile, Ecuador, Colombia, Venezuela, Brazil, Senegal, South Africa, Armenia and the Republic of Georgia. He has a Ph.D. in Geology and Geochemistry from MIT, and a B.S. in Civil Engineering and Geology from Stanford.

5 Society of Petroleum Engineers Beyond Volumetrics: Unconventional Petrophysics for Efficient Resource Appraisal David R. Spain BP Upstream Technology Group Unconventional Reservoirs require a new petrophysical paradigm and must go beyond volumetrics. Efficient unconventional resource appraisal should consider not only the static (storage) and dynamic (flow) properties within the context of the petroleum system and the current day pore geometry and fluid saturation distribution, but also the geomechanical stress regime and its implications for efficient completion design and reservoir performance prediction. Reservoirs with high potential for deliverability should be targeted for development; these zones will dominate well and field performance. The effective application of integrated subsurface and completion workflows leads to improved capital efficiency and well performance through increased well potential, increased ultimate recovery, and reduced costs. David Spain is a Senior Advisor for Unconventional Gas Petrophysics in the BP Upstream Technology Group in Houston, Texas, where he leads the Geo-Engineered Completion Optimization Project. David has over 30 years experience in research and development, resource appraisal, field development, and integrated reservoir management across the globe. David obtained his graduate degree in Geology from Vanderbilt University in 1982; he attended the Amoco Petrophysics Training Program XXII and has published numerous papers on shale evaluation, tight gas reservoirs, and integrated petrophysical solutions.

6 Cement Testing: Are We Looking at the Right Things the Wrong Way? Donald Purvis Independent Consultant The most important aspect in wellbore construction is creating and maintaining wellbore integrity and zonal isolation. The potential of fresh water contamination has captured the attention of the public and media. Cross flow between productive intervals or salt water zones can result in environmental and legal challenges as well as lost production. The number of wells developing annular pressure over time has become a concern and expense for operators. The design and placement of a competent cement seal in the annulus is critical when addressing these issues. Laboratory testing of cement for use as a physical barrier in wellbore construction has been performed by our industry since the early 1900 s. This Presentation describes how the testing has progressed from Code 32, the first API code, to the present day ISO and API guidelines. The current testing methodology detailed in these guidelines is examined and compared to the actual forces cement is exposed to in the wellbore. Four tests are examined in detail; Thickening Time, Fluid Loss, Compressive Strength and Tensile Strength. The significance of tensile strength is presented. Some of the traps that can be made by relying on standardized testing are exposed. New developments in cement testing to overcome these issues are presented. Recommendations are then made for testing beyond the standard ISO tests. The audience should gain a better understanding of what they need cement to do and the laboratory tests required to make sure it does. Don is currently a Senior Technical Consultant for Marathon Oil Company. He advises and provides strategies for the Drilling and Completion asset teams within Marathon. Prior to this role he was the US Vice President for Technical Services for Calfrac. In that role he was responsible for the engineering efforts related to Fracturing and Cementing in the US. Prior to Calfrac, Don was the Rocky Mountain Region Technical Manager for the Pressure Pumping division of Baker Hughes. He has 35 years of engineering experience in the oil industry. His previous positions include Engineering Training Manager, Mid-Continent Technical Manager, Research Scientist, and Technical Consultant. He has done extensive research in cement flow dynamics and testing methodology. He has authored 12 technical papers, and several technical journal articles. Don holds two process patents for completion strategies. Don and his wife reside north of Houston Texas and have two grown sons.

7 The Value of Assessing Uncertainty (What You Don t Know Can Hurt You) Duane A. McVay Texas A&M University The petroleum industry has underperformed for decades because of project evaluation methods that do not fully account for uncertainty. Chronic biases, particularly overconfidence and optimism, persist because there has been little emphasis in the petroleum literature on the true cost of underestimating uncertainty and on how to quantify uncertainty reliably. In this presentation I will present the results of recent work assessing the monetary impact of chronic overconfidence and optimism on portfolio performance. For moderate and typical amounts of overconfidence and optimism, expected disappointment (estimated NPV minus actual realized NPV) was 30-35% of estimated NPV for the industry portfolios and optimization cases analyzed. Significantly greater disappointments have actually been experienced in industry. Decision making will be optimal in the long run only when probabilistic forecasts are well calibrated P10s are true P10s, P90s are true P90s, and so forth. Changing corporate culture to consistently produce well-calibrated probabilistic forecasts will require education on the importance of lookbacks and calibration, as well as changes in business processes and incentive structures. Reliable assessment of uncertainty will add value to the bottom line, and has the potential to significantly improve company and industry financial performance. Dr. Duane A. McVay is the Rob L. Adams 40 Professor in the Department of Petroleum Engineering at Texas A&M University. He is a Distinguished Member of SPE. His primary research focus is on uncertainty quantification, particularly in the context of production forecasting and reserves estimation in oil and gas reservoirs. He joined Texas A&M in 1999, after spending 16 years with S.A. Holditch & Associates, a petroleum engineering consulting firm. He received B.S., M.S. and Ph.D. degrees in Petroleum Engineering from Texas A&M University.

8 How to Save Time, Money, and Reduce Personnel Exposure Using Unmanned Aircraft Systems Dyan M. Gibbens Trumbull Unmanned Across the world, small Unmanned Aircraft Systems (UAS) are creating opportunities within numerous industries to reduce costs and personnel exposure. This presentation takes the audience on a journey from the first military applications, to academic research, to where we are today on the cusp of full-scale industry employment once commercial regulations are defined later this year. From offshore drilling to downstream examples, this talk will introduce the various types of data that are currently being acquired and can be acquired which were previously very expensive or almost impossible to collect. But what is a UAS? Ultimately UAS is a tool used to carry a sensor. This presentation introduces technologies that are being miniaturized which make them perfect tool to enable early detection, or to be used in lieu of putting life at risk in inspections or emergency response. Once UAS become routine operations, the benefits are presented in four interrelated areas: environmental responsibility, regulatory compliance, cost savings, and operational efficiencies. At a fraction of current costs for manned-aerial imaging, higher frequency UAS inspections provide more data, especially important when problems arise. For a low-risk, high-reward effort, UAS will revolutionize the maintenance cycle and promote resource reinvestment. In all, this presentation encourages early action to posture proactively before demand outstrips supply of competent, qualified UAS operators using a common-sense approach. Companies should quantify the value of early detection to determine inspection intervals and lost savings they are willing to accept. The cost of inaction or delayed action is quantifiable and substantial. For a decade, Dyan led aerospace integration. She supported a Global Hawk Unmanned Aircraft System (UAS) Business Case Analysis, UAS hydrocarbon detection through PhD research, and cofounded International Consortium of Aeronautical Test Sites. Formerly an Acquisitions Officer, she served as aerospace program manager for cruise missiles, inertial navigation systems, and nuclear surety. Subsequently, as an engineer and logistician, she supported Air Force One sustainment. Dyan earned a BS in Civil Engineering (US Air Force Academy), an MBA and Industrial Engineering and Management PhD candidate (Oklahoma State University). Also a pilot, she earned Georgetown's Change Management and Stanford s Project Management certifications.

9 Managing Dual Careers - Work-Life Integration in a 24/7 World Eve Sprunt Eve Sprunt and Associates The big crew change has altered the workforce in both visible and invisible ways. Three SPE Talent Council Surveys and a Society of Exploration Geophysicists (SEG) survey provide valuable insights into how to enhance employee retention and increase diversity in management. While it is obvious that more women are working in the petroleum industry, the transition from a workforce largely composed of dominant earners to a workforce with many dual career couples has also occurred. Better understanding of how to manage people who are part of a dual career couple will enhance retention and advancement of women, because the majority of women are part of a dual career couple. Men, who are part of a dual career couple and women in general are under-represented in executive management, which continues to be primarily composed of people who have spent their career as the dominant earner in their family. The survey findings suggest that the lifestyle differences between dominant earners and dual career workers introduce misunderstandings about career dedication and work ethics that can lead to attrition. The members of this new workforce are career-focused, hard-workers, but the new lifestyle means that they are living with different constraints. Modifications to career planning that better balance specific opportunities with flexibility and leverage the 24/7 technology-enabled work-styles can build and retain a more diverse and highly motivated workforce. Eve Sprunt, a consultant, has 35 years of experience working for major oil companies. She was 2006 President of the Society of Petroleum Engineers (SPE) and was made an Honorary Member of SPE in In 2013 she was honored by the Society of Women Engineers with the Achievement Award, which is their highest award. Her S.B. and S.M. degrees are from MIT (Earth and Planetary Sciences) and her Ph.D. (Geophysics) from Stanford. Her passion is conducting surveys to gather information on management of dual career couples and enhancing retention of mid-career female STEM professionals and sharing her observations.

10 Is the Oil Industry Paying Enough Attention to Process Safety? Hisham Saadawi Ringstone Petroleum Consultants With recent highly publicized accidents in the oil industry and the continuing concerns about its public image, process safety remains a subject of great interest in the industry. But are we doing enough? Is the oil industry paying too much attention to statistics on lost time injuries, and perhaps has not given enough sustained focus on process safety and thus obscuring the big picture? This presentation outlines some case histories of major accidents. It discusses the industry s efforts to develop performance indicators for process safety and ongoing efforts to promote process safety. The similarities and differences between occupational safety and process safety are discussed. A key concept in this presentation is to demonstrate that successful management of one, does not necessarily assure management of the other. Experience reminds us that the human and financial costs of major accidents in the oil industry far outweigh any saving in investments related to process safety. Hisham Saadawi has over- 35 years industry experience in the design, construction, start-up, operation and project management of oil and gas processing facilities. Hisham has extensive experience in process safety. He led and participated in numerous HAZOPs, HAZIDs, SIL studies, project safety reviews, accident investigations, and pre-start up audits. He is a TUV certified Functional Safety Engineer. He is an SPE Distinguished Lecturer (2010 / 2011), SPE Course Instructor, member of the Editorial Committee of the Journal of Petroleum Technology ( ) and is a recipient of the 2011 SPE Regional Award for Projects, Facilities & Construction. He is also an Instructor of IChemE course Fundamental of Process Safety Management. Hisham is a Chartered Engineer in the UK, a Fellow of IChemE, Member of IMechE and holds a PhD from the University of Manchester, UK.

11 Society of Petroleum Engineers Increasing Production with Better Well Placement in Unconventional Shale Reservoirs - Challenges and Solutions Jason Pitcher Cameron The idea that the stimulation process "will take care of the geology" in unconventional reservoirs is proving false. Unconventional reservoirs are often regarded as resource plays with little demand for reservoir analysis beyond simple geosteering techniques during the development campaign. This leads to the common practice of stimulating wells with equally spaced stages and treating all the stages exactly the same, with no regard to the nature of the rock being treated. As a result, production can vary from each stage, with some stages either not contributing or doing poorly. Clearly, the stimulation process alone cannot mitigate the impact of geology in unconventional reservoirs; however, mechanisms do exist for improving results in these reservoirs. Mapping the distribution of geomechanical properties for optimal stimulation is one example of unconventional thinking that can be applied. The practice of "steering to brittleness" or similar techniques can have a direct impact beyond simple well placement. Given a map of geomechanical properties along the wellbore, completion engineers can optimize the position of plugs or packers, and stimulation engineers can fine tune the design of the treatment applied to the rock. By re-establishing the link between production and geology, these methods can decrease the exploitation costs of unconventional reservoirs. Jason Pitcher is the Director of Consulting Practic at Cameron, based in Houston, Texas. He received his bachelors of Science degree in Geology from the University of Derby and his masters of Science degree in Mineral Exploration from Imperial College in London. Jason has over 24 years of experience in oil and gas assets, having worked in multiple areas of drilling, completion and production solutions delivery. He holds a BS in Geology from the University of Derby and an MS in mineral exploration from Imperial College London. He has developed and managed well placement operations around the world, taught geosteering for international geoscience organisations and works diligently on SPE committees. He has co-authored over 25 papers and articles on LWD tools, petrophysics, geosteering, and in recent years, unconventional reservoir exploration and exploitation. Jason was an SPE Distinguished Lecturer for the lecture season.

12 Society of Petroleum Engineers Think Outside of the Box - Nano Drug Delivery Technologies for Oil Field Applications Jenn-Tai Liang Texas A&M University The take home message of my talk is to Think Outside of the Box when it comes to developing new technologies for oil recovery applications in both conventional and unconventional reservoirs. To improve oil and gas recovery, we inject all kinds of expensive chemicals into the subsurface. Due to the often hostile downhole environment, most oilfield chemicals cannot survive the extreme temperature, salinity, and ph. There is a strong incentive to develop improved techniques to protect and control/delay the release of oil and gas field chemicals so that they can be successfully transported to the target locations underground. Based on the drug delivery technologies from the pharmaceutical industry, a chemical delivery system was developed using nanoparticles to entrap and protect oilfield chemicals from the hostile underground environments. Nanoparticle colloids have emerged in pharmaceutical products and in some aspects, the pharmaceutical industry has led the way in nanotechnology. The seemingly unlimited price for small quantities of pharmaceuticals stands in stark contrast to the large volumes of commodity chemicals needed for oil and gas well treatments; however, the same basic formulation concepts apply. Nanoparticles must effectively stabilize, deliver, target, and/or sustain the effects of the oilfield chemicals. In this talk, the basic concepts behind the development of a cost-effective nanoscale chemical delivery system will be discussed. Example applications in both conventional and unconventional reservoirs including delayed gelation for in-depth conformance control using polymer gels, as well as protection and controlled release of enzymes for effective fracture cleanup will be presented. Dr. Jenn-Tai Liang is a full professor in the Department of Petroleum Engineering at Texas A&M University. He received his PhD degree in Petroleum Engineering from The University of Texas at Austin. Before joining TAMU, Dr. Liang was a professor of Petroleum Engineering and director of Tertiary Oil Recovery Program at The University of Kansas. Prior to that, he served as a program manager in upstream oil and gas research at the US DOE Idaho National Laboratory. His research focus is on the application of nanotechnologies for conformance control, flow assurance, hydraulic fracturing fluid cleanup, in both conventional and unconventional reservoirs.

13 Assessing and Applying Petroleum Engineering Data From the 2010 Macondo Blowout John Turley Marathon Oil Company, Retired On 20 April 2010, the Macondo blowout in the U.S. Gulf of Mexico killed 11 men, burned and sank the Deepwater Horizon drilling rig, and devastated the Gulf. Investigative authorities queried mechanical systems, operating decisions, corporate cultures, safety procedures, and testimony by survivors, academics, experts, and executives. Meanwhile, industry personnel need succinct, nonlitigious, technical answers to fundamental questions about the cause of the blowout for application to future projects. Such answers define the specific mechanics, actions, and decisions on the rig that collectively opened a pathway into a cased-and-cemented deep-water wellbore and allowed hydrocarbons to flow unobserved from a high-pressure reservoir to eventually erupt over the derrick and continue even after the blowout preventers were closed. To unravel the cause of the blowout, data during the well's final hours are assessed and defined using petroleum-engineering fundamentals, including wellbore mechanics, hydrodynamics, inflow performance, fluid properties, well-control principles, etc. The chain of events thus revealed includes forming an annulus-to-wellbore leak, exacerbating the leak, testing and declaring the well secure, causing the well to flow, and allowing the well to flow until too late, even for the blowout preventers. The technical assessment leads to conclusions that define those factors that contributed to the blowout, as well as to those that caused the blowout. From the presentation, SPE members and a wider audience from across the industry and beyond will see by example the necessity and importance of applying petroleum-engineering and processmanagement fundamentals to day-to-day drilling work, in real time, both in the office and on the rig. From the Macondo assessment, a process-interruption protocol is defined, which can be applied to wells around the world, whether deep or shallow, onshore or offshore. J. A. (John) Turley taught petroleum engineering at Marietta College before joining Marathon Oil Company, where he served as Gulf Coast drilling manager, U.K. operations manager, manager worldwide drilling, and vice president engineering and technology. He holds a professional degree in petroleum engineering from Colorado School of Mines, an MS in ocean engineering from University of Miami, and an executive management degree from Harvard University. Post-retirement, he independently researched the 2010 Macondo blowout and published "THE SIMPLE TRUTH" a facts-based tome in which he examines the engineering causes of the Macondo blowout aboard the Deepwater Horizon. His first SPE paper (6022), "A Risk Analysis of Transition Zone Drilling," was published in In 2014, he published SPE MS, "An Engineering Look at the Cause of the 2010 Macondo Blowout." Turley, a member of SPE's Legion of Honor, has served SPE in academic and conference capacities, but most enjoyed chairing SPE's education and accreditation committee.

14 Completion Scorecard: The Importance of Scoring High Maricel Marquez Chevron Completion performance and reliability can have a significant impact on the economic viability and profitability of a project, particularly for deepwater developments where the cost of intervention and completion failure can be very high. Even more, suboptimal completions may expose a company to substantial environmental risks and potentially jeopardize its public image and reputation. In this lecture, Dr. Marquez discusses key lessons learned and best practices identified from look back studies conducted on frac pack completions in several deepwater fields across the world. The assessment relies on the use of a propietary scorecard, which scores the quality of the completion based on key aspects of the well design and installation process, including rock stresses and well orientation, debris management, perforating, frac design and execution, fluid loss management, and mechanical issues with hardware components. This scorecard has been validated with data collected from more than 100 wells over a period of 8 years, and has proved to be a valuable workflow for root cause analyses to identify probable causes for sand control completion failures, increasing skins and declining productivity index (PI) values over time. It has also been effectively used as a predictive tool for future well performance and to establish well deliverability thresholds based on the scorecard ratings. The basic principles outlined in this talk can be generically applied to other completion types. The bottom line is that, when the design and installation processes and procedures are shaped around scoring well on the scorecard, the results are better wells not only initially, but for the life of the project. Maricel Marquez is an emerging young professional in the Oil and Gas industry. A native of Caracas, Venezuela, she graduated with honors from Simon Bolivar University and then obtained a PhD degree in Chemical Engineering from the University of Oklahoma in Maricel has more than 10 years of industry experience, mostly with Chevron, including roles in R&D, completions and production operations, reservoir engineering and project management. She has also participated in Chevron's "Mentoring Excellence in Technology" program, and has served as an instructor for the Chevron Training Center, teaching completion-related courses. Maricel is a prolific author and patent holder. She has received several domestic and international awards, both in the industry and in academia, including a recent nomination for the 2014 SPE Regional Completions Optimization and Technology Award, based on her contributions to this field. Maricel is a dynamic and engaging speaker, and was recently elected as Communications Director for the Women Network Executive Committee at Chevron, an organization with more than 6000 members. She is also an active member of SPE and the Society of Women Engineers.

15 Society of Petroleum Engineers From 3D Pore Scale Imaging to Reservoir Inputs: Next Generation Reservoir Characterization and Description Mark Knackstedt Lithicon Digital rock analysis, an emerging technology driven by rapid advances in 3D pore scale imaging and computation, allows an unprecedented quantitative understanding of the pore scale at which all reservoir processes operate. Digital rock projects have historically focused on applications to core analysis characterizing details at the pore scale and ensuring that the physics incorporated is correct. While crucial, it has been a fundamental limitation to creating widespread commercial value and real growth to date. In this lecture we highlight how this technology can aid the geoscientist and reservoir engineer today -- we describe examples where reconciliation and integration of the different types of data from a fundamental understanding of the pore scale adds value. In particular the work is used to offer fast turnaround times, aids in our understanding of unconventional reservoir core material and explains uncertainties and trends from laboratory measurements (e.g, issues with heterogeneity, representative elemental volume, wettability, distribution of remaining oil saturation, EOR processes). Industry is seeking the extension of this technology to reliably derive and predict petrophysical & SCAL data along continuous lengths of core material and to integrate the data to information at increasingly larger scales (log characterization, geomodels and ultimately reservoir simulators). We conclude with a discussion of further steps being undertaken to create value via methods to image larger quantities of core-- defining appropriate representative scales for different rock types, compactly storing the data, and developing methods to efficiently make continuous calculations of properties from the pore to the reservoir scale. Mark Knackstedt is CTO of FEI/Lithicon Australia and Professor at the Department of Applied Mathematics at the Australian National University. He is a current and past ( , , ) SPWLA distinguished speaker, was awarded the George C. Matson Memorial Award from the AAPG in 2009 and the ENI award for New Frontiers in Hydrocarbon Research in He holds a PhD in Chemical Engineering from Rice University.

16 Bridging the Gap between Drilling and Completions: Challenges and Solutions in Horizontal Wells Mary Van Domelen Continental Resources Economic development of low permeability, unconventional reservoirs has necessitated the development of leading edge horizontal drilling, completion, and stimulation techniques. As early as the 1980's, bold statements were made indicating that there were little advances in horizontal drilling technologies required,but that significant improvements in stimulation and completion technologies were necessary. This presentation starts by asking the audience to consider two questions: 1) Does completion technology lag behind drilling technology? and 2) Can we drill longer wells than we can effectively complete/stimulate? Through a historical overview of game changing developments which allowed economic exploitation of tight reservoirs in the North Sea and Europe, it is shown that completion engineers were able to keep up with the advances made in horizontal drilling. Lessons learned through the 1990's can be applied to the development of unconventional reservoirs. For the "resource plays" of today, it is recognized that the challenge for completion technologies to keep pace with drilling advances are different than in the past. Economic, supply chain, logistics and environmental challenges may present the largest hurdles. Today's challenges and limitations are discussed along with innovation solutions currently being applied. The presentation wraps up by posing the future question: Are completion engineers prepared to effectively stimulate and complete the "3-mile lateral"? What will future field developments look like and what new completion technologies are required? Can we bridge the gap between drilling and completion in unconventional reservoirs? Mary Van Domelen is an Engineering Advisor with Continental Resources. She holds a BS degree in Chemical Enginering and is a licensed engineer. She has 30 years of experience in research and practical application of well completions. Mary started her career with Halliburton and has worked in the USA, Europe and Africa. Prior to Continental, she worked for Maersk Oil and Chesapeake in horizontal drilling and completion operations. She has co-authored more than 30 papers and holds several patents. Mary plays an active role in the SPE by participating in organizing committees for conferences, applied technology workshops, and forums.

17 Distinguished Lecturer Lecture Season LNG Basics for Petroleum Engineers Michael Choi ConocoPhillips While many remote parts of the world and North America are awash with natural gas, Europe, South America and the vibrant economies of the East cannot get enough of the clean-burning, environmentally friendly fuel. The problem is transporting this compressible fluid long distances, across major bodies of water. For markets greater than 1,500 miles, liquefied natural gas (LNG) has proved to be the most economic option. By refrigerating natural gas (primarily methane) to -260ºF (-162ºC), thereby shrinking its volume by 600:1, LNG can be transported in large insulated cryogenic tankers at reasonable cost. Natural gas liquefaction is a series of refrigeration systems similar to the air conditioning system in our homes, simply consisting of a compressor, condenser and evaporator to chill and condense the gas. The difference is in the scale and magnitude of the refrigeration. In contrast to the home system, a typical single-train LNG plant costs billions of dollars and consume 6-8% of the inlet gas as fuel. Since many of the impurities (water vapor, carbon dioxide, hydrogen sulfide, etc.) and heavier hydrocarbon compounds in natural gas would freeze at LNG temperatures, they must first be removed, and disposed or marketed as separate products. This paper will provide an overview of LNG liquefaction facilities, from inlet gas receiving to LNG storage and loading. However, the focus is on the liquefaction process and equipment. Differences among the commercially available liquefaction processes (cascade, single mixed refrigerant, propane-pre-cooled mixed refrigerant, double mixed refrigerant, nitrogen, etc.) will be discussed. The aim is to provide SPE members with a clear understanding of the technologies, equipment and process choices required for a successful LNG project. Michael Choi is a recent retiree. Prior to March 2015, he was a Process Engineering Fellow in ConocoPhillips Global Production Department located in Houston, Texas. His specialties are production facilities, sour gas treating and LNG. He was the lead process design engineer for CoP s Qatargas3 LNG project. Prior to joining Conoco in 1985, Michael worked in various engineering capacities with El Paso Natural Gas, Aminoil and Getty Oil/Texaco. His work has led to a number of SPE publications and six US patents for separator design, emissions control system for glycol dehydrators and subsea processing and storage systems. Michael has been active in SPE as member of the PF&C Committee, program chairman and member of the ATCE and other international conferences and forums. He graduated from the University of Southern California in 1974 with a BS degree in chemical engineering. Michael was an SPE Distinguished Lecturer during the lecture season.

18 Society of Petroleum Engineers Distinguished Lecturer Lecture Season Carbonate Matrix Stimulation: A Poorly Understood & Often Under-Optimized Technique Murtaza Ziauddin Schlumberger Matrix stimulation treatments in carbonate reservoirs are generally considered low risk. Production increases from these treatments are routine and the advantages of these treatments are perceived to be high. However, many treatments realize only a small fraction of the true well potential. If a more holistic evaluation criterion is used, many treatments would not be considered successful. This lecture will start with a brief introduction to matrix stimulation in carbonates and describe typical design elements. This will be followed by design challenges, such as treatments in long heterogeneous intervals, in fractured reservoirs, and in mature reservoirs. The many variables influencing the treatment design and the challenge in optimizing the design with respect to these will be addressed. The influence of rock type, treatment fluid type, and operating conditions will be discussed. The available technologies for fluid placement will be presented in the context of formation complexity and the length of producing interval. The design workflow proposed will ensure that all variables are addressed systematically. Dr. Murtaza Ziauddin is an Advisor for Matrix Stimulation and Production Chemistry with Schlumberger in Sugar Land, Texas. He has more than 18 years of production engineering experience. Murtaza Ziauddin has co-authored three SPE books. The lecture will draw on material from his most recent book, "Chemistry for Enhancing Production" as well as from his contributions to the upcoming update to the classical SPE Monograph on Acidizing. He has authored 27 technical papers and holds 14 patents. Murtaza has a BS degree from the University of Houston and a PhD degree from the University of Minnesota, both in chemical engineering.

19 Innovative Laboratory Tools and Methodologies for Quicker and More Accurate Reserves Assessment Nicola Bona ENI e&p For oil and gas companies, accelerating the process of assessing reserves is a strategic imperative. Often, core analysis appears to be a bottleneck for achieving this objective. Lab results must not only be accurate, but also quickly available. In some instances, the challenge can be met by simply rethinking the way in which certain well-established things are done. No sophisticated tools are required, just a change of perspective. An example is the compression of the amount of time that elapses between the acquisition of electric logs and the release of their final interpretation. Typically this time is of the order of several months because of the long equilibrium times required during core analysis. This can, however, be reduced to a few days working under non-equilibrium conditions. The instrumentation needed to do this is commonly available. Another example is the estimation of the amount of gas trapped by water influx, a critical parameter that may generate considerable uncertainty in the evaluation of recoverable reserves. By combining centrifuge and NMR measurements, it is possible to produce an exhaustive compilation of SCAL data for log interpretation and reservoir modeling in one day using just one core sample. Again, nothing but conventional instruments are required to do this type of analysis. Real applications are presented to show how these methods work. The "take home" message is that even long-established laboratory practices may have room for improvement and sometimes relatively small changes generate significant benefits. Nicola Bona is technical leader of the Petroleum Engineering Laboratories at ENI e&p. Besides providing operative support for the characterization and development of oil and gas fields worldwide, he is actively involved in designing equipments and experimental protocols aimed at increasing the accuracy of petrophysical measurements and speeding up their execution. Among other things, Nicola pioneered the use of drill cuttings for reservoir characterization and the use of dielectric measurements to assess rock wettability, as well as new methods for evaluating the electrical response of rock. He developed also innovative techniques for the evaluation of fractured reservoirs, shaly rocks and tight sands which make use of Magnetic Resonance Imaging. Nicola has authored over 30 technical papers and holds two patents. He holds a degree in Plasma Physics from the University of Milan.

20 Distinguished Lecturer Lecture Season Shale Resource Assessment & Development Full Life Cycle Integrated Approach Pankaj (P. K.) Pande Anadarko Petroleum Corporation A full life-cycle integrated approach for shale resource plays is an essential process to establish value creation and to ensure reserves and production growth. With this process key issues and uncertainties in shale resource development are resolved as plays evolve from concept screening; to exploration and resource assessment; to full development. The integrated approach relies upon key elements which include 1). Field Demonstrations and 2). Mechanistic Studies. The design, planning, and implementation of systematic and "scalable" Field Demonstrations are essential elements required to address strategic, development and operational issues. Mechanistic studies are utilized to understand the key production drivers. Shale gas productivity is typically much lower than conventional reservoir systems and often lower than tight gas reservoirs. The flow behavior in these systems must be understood and quantified in order to effectively characterize and predict well and reservoir performance behavior. The primary take-away from this presentation is that new processes and advances in field demonstrations and mechanistic models are key factors required for appraisal and development of global shale resources. P. K. Pande serves as Director, Reservoir Technology with Anadarko Petroleum Corporation, the world s largest independent E&P Company. His responsibilities include managing an integrated team of subsurface professionals including geologists, geophysicists and reservoir engineers in application of subsurface technologies and best practices. In his current role he has been instrumental in the appraisal and development of Anadarko shale and deepwater resources both in North America and internationally. Pande has also served as Subsurface Manager, Ourhoud Field, Algeria, the country s second largest oil-field. He has contributed to the development and reservoir management of numerous world class reservoirs including Prudhoe Bay, North America s largest oil field and Endicott, the first arctic offshore oilfield. He was actively involved in the design, planning, and implementation of the Prudhoe Bay Miscible Gas Project, the largest enhanced oil recovery project in the world. He served as Project Manager for U.S. Department of Energy s flagship project on improved recovery and reservoir characterization methods for shallow-shelf carbonate reservoirs. Pande holds a BS in chemical engineering from University of California, Berkeley and MS in Petroleum Engineering from New Mexico Institute of Mining and Technology. Pande was an SPE Distinguished Lecturer for the lecture season.

21 Is There a Holistic Approach to Sand Production and Sand Management? Peng Ray Chevron Sand production tendency over the life of the well has significant impact on completion choices. As we work in more challenging environments such as deep water, heavy oil, and high-pressure high-temperature wells, reservoirs are more complex and more costly to drill and complete. Downhole sand control methods significantly increase the complexity and cost of the completion and challenge the economics of the field development. Do we need downhole sand control on all wells that have potential to produce sand? When the produced sand volume is not significant, can the sand be managed at surface? Completions and workovers would be much simpler and cheaper without downhole sand control. Well production would also increase without downhole sand control. However, sand production could increase the risk of sanding up the well. It also increases the risk of eroding chokes, surface flowlines, and equipment. Operational costs would increase due to sand transportation and disposal. All the pros and cons need to be considered in the decision process. What does it take to have an integrated sand management approach? Where does sand management add the greatest value? How does state of the art sand production prediction impact completion decisions? What role does sand monitoring play in sand management? One idea is: sand management should be evaluated in a holistic mannor. Peng Ray is a research scientist at Chevron Energy Technology Co. She has a BS degree in mechanical engineering from Beijing University of Science and Technology and a MS degree in Geophysics from Texas A&M University. She has been involved in research and the application of various aspects of Geomechanics related issues over the past 25 years. Her main interests include sand production predictions, stress determinations, rock strength determinations, and wellbore stability. She has led research and development in the area of sand production prediction and applied the learnings to various Chevron fields.