Network Update Newsletter

        December 1994
        "...research, technology, information and networking for the upstream petroleum industry..."

        Since our last issue of NETWORK UPDATE,PSTI has been networking with its member companies while conducting Annual Review Meetings, culminating in PSTI's 6th Annual Meeting of it's Members' Management Representatives, held at the offices of Amerada Hess in London on 15th November.

        At the meeting, a review of PSTI's activities during 1994 and a forward look to our 1995 objectives and deliverables were given.

        A presentation on SMEs (Small, Medium-sized Enterprises) and Innovation was also well received by members and this theme is picked up in an article in this issue of NETWORK UPDATE.


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        In This Issue

        • Reservoir Uncertainty Research...
        • PSTI networking...
          • PTERIS
        • PSTI Research Programme...
          • Rock Physics Research
          • Network Modelling
          • Production Geoscience Unit Profile
        • 1995 Institute Programme...
        • Actions in Technology Transfer

        New Reservoir Uncertainty Research Launched

        PSTI has launched a new research programme focused on developing new techniques for handling and quantifying reservoir uncertainties. The initiative, designated the 'JUNIPER' PROGRAMME (Joint UNcertainty Initiative for the Performance Estimates of Reservoirs), will comprise a suite of targeted projects funded either from the subscription-research budget or independently, as joint industry projects (JIPs).

        The JUNIPER programme starts in January 1995 with the commissioning of two launch projects, the first is centred on the University of Bristol and linked to expertise at AEA Technology, Heriot-Watt and Liverpool universities and the second at the University of Aberdeen . The projects will be managed jointly and will:-

        • elicit and report current practices of handling uncertainty in PSTI Member companies;

        • demonstrate a decision support system which can handle uncertainties and assist engineers in identifying and planning appropriate courses of action within rigorous time frames;

        • categorise and evaluate key uncertainties in data gathering, interpretation and usage in reservoir appraisal and development;

        • categorise the role of uncertainty in specific strategic decision making and tasks;

        • evaluate the precision, accuracy, representativity and relevance of data used for reservoir appraisal and development, and rank the data with regards costs, efficiency, reliability and utility.
        For further information, please contact Dr. Alistair Fletcher on (031) 451 5231; Fax No.: (031) 451 5232.

        PTERIS Internet Service

        At the Annual Members Meeting on 15th November 1994, Irene Hepburn and Jeff Riley demonstrated the Institute's prototype Petroleum TEchnology and Research Information Service (PTERIS), which is accessible via the INTERNET.

        This initiative, designed to improve the speed and reduce the costs of PSTI's research and technology information delivery to members, was well received.

        Member driven and controlled, through the PTERIS Project Steering Committee which is now being formed, PTERIS provides a structured, manageable solution to access E&P technology information which is available worldwide on the INTERNET.


        PSTI Research Programme

        Rock Physics Research

        The real test of any laboratory determined relationships between seismic wave propagation and rock properties is to determine if the same relationship can be observed in the field. Using the shallow boreholes at the Imperial College test site at Whitchester, Northumberland, in combination with the laboratory facilities at the University of Reading , the PSTI-funded project on "Seismic Anisotropy and its Dependence on the Geological and Petrophysical Properties of Reservoir Rocks" provides a unique opportunity to advance research capable of facilitating the use of seismic attenuation as a practical reservoir characterisation parameter.

        The work is being conducted over two years by Dr Angus Best in collaboration with Professor Clive McCann at Reading University and Professor Michael Worthington at Imperial College . The principal objectives are:

        • to measure the intrinsic attenuation of core material from the Whitchester boreholes in the laboratory and to compare these data with those acquired from cross-hole and VSP measurements. The work seeks to establish both the anisotropy of the compressional and shear wave attenuation and the frequency effect from the KHz field measurements to the MHz laboratory measurements. Laboratory measurements will also be conducted at confining pressures comparable to some North Sea reservoir depths.

        • a comprehensive set of field measurements of shear wave velocity and attenuation is being obtained. Together with existing compressional wave data, this allows a complete analysis of the elastic and inelastic properties of the Whitchester site rocks (interbedded siliciclastic and carbonate strata of Carboniferous age) to be conducted in all spatial directions and over a wide range of frequencies.
        Using the above, the project sets out to document relationships and procedures to permit the use of attenuation as a diagnostic parameter in reservoir characterisation from seismic data.

        Dr Best will present his results at the Information and Technology Transfer Seminar on "Applications of Seismic Wave Attenuation to Reservoir Characterisation" being convened jointly by PSTI and the Post-graduate Research Institute for Sedi-mentology, University of Reading on 19th December, 1994.

        This seminar, designed to assess how close research in this area is to providing robust, practical "tools" to industry, will have presentations from five university research groups as well as British Gas and Norsk-Hydro.

        Network Modelling of Flow in Porous Media

        The PSTI-funded project on the "Application of Network Modelling to Steady and Unsteady State Multiphase Flow in Porous Media" has been completed successfully and a final report is now available to PSTI Members.

        Conducted at Heriot-Watt University by Dr Steve McDougall and Professor Ken Sorbie, the research aimed to demonstrate how the derivation of single-phase and multi-phase flow parameters, such as permeability, relative permeability and capillary pressure, can be investigated from microscopic considerations using three-dimensional network modelling techniques. A prime purpose of this work has been to predict the controlling factors at the pore-scale: a variety of sensitivity studies have been conducted therefore rather than quantitative predictions for specific porous media.

        Percolation concepts are fully utilised in the modelling of immiscible two-phase flow. Both imbibition and drainage simulators have been described with the aim of broadening the understanding of simultaneous flow of water and oil through reservoir rock. In addition, the network models have also been extended to facilitate the study of flow through systems of heterogeneous wetability, i.e. water-wet networks which contain a fraction of pores that are preferentially oil-wet. Results demonstrate how the latter affect the associated relative permeability and capillary pressure curves.

        A novel test has been proposed which could be used to determine the wettability of both fractionally-wet and mixed-wet porous media.

        Some simulated unsteady-state core floods of finely laminated water-wet and oil-wet systems have been studied. This work clearly demonstrates the complex interaction between viscous and capillary forces and the underlying lamination structure of the porous medium.

        The final report describes a simulator capable of interpreting a wide range of two- and three-phase laboratory displacements.

        For further information, contact Professor Ken Sorbie at Heriot-Watt University - Tel: (031) 449 5111.


        Production Geoscience Unit Profile

        The Production Geoscience Research Unit at Aberdeen University is a joint initiative of PSTI, Shell UK Exploration and Production, Mobil North Sea and the University. The Unit is led by its Director Professor Andrew Hurst, the Shell UK Professor in Production Geology. Other senior staff include Adrian Hartley, Mobil Lecturer, and Bob Skopec, funded by ARCO and BP. A PSTI-funded research fellowship has been advertised recently to work within PSTI's cross-disciplinary research programme on "Handling Reservoir Uncertainty" (see article on the Juniper Programme).

        Objectives:-

        The objectives of the Unit are:

        • to improve the accuracy of reserve estimates and the uncertainties associated with those estimates.
        • to work with reservoir data and issues related to the core interests of operators to provide for the next generation of extractive technology

        Technical scope:-

        Research themes in the Unit are currently:

        • reservoir architecture and modelling;
        • reservoir quality;
        • reservoir economics and risk.
        In 1995 there will be a major research push in the area of formation evaluation. A new laboratory within the University for petrophysical measurement is being established.

        Activities and achievements:-

        Research projects presently being conducted include:

        Research characterisation of deep-water clastic reservoir

        Origins and quantification of uncertainty in geological reservoir models,

        Applications of sequence stratigraphy in reservoir architecture and correlation of shallow marine/deltaic sequences (US western interior)

        Application of petrographic and geochemical data in formulation evaluation,

        Mesozoic sequence stratigraphy, Inner Hebrides Basin

        Tertiary evolution of the Andean forearc, including correlation studies in semi-arid alluvial basins

        Mesozoic-Tertiary tectono-stratigraphic evolution of the UKCS West of Shetland

        Applications and development of probe permeametry

        AVO interpretation, scaling factors and other challanges associated with acoustic data integration

        Physical properties and mechanical behaviour of chalk reservoirs

        Evaluation of naturally fractured reservoirs using core and log analysis

        As well as its work for exploration and production companies, the Unit is well placed to collaborate with small and medium sized companies in the "service" sector through the provision of R&D and training resources to assist in the development of innovative production geoscience-related products and services.


        1995 Activity Plan

        At the 15th November, 1994 Annual Members' meeting, members approved the Institute's 1995 Objectives and Deliverables. Principle actions are:-

        R&D Programme Catalysis:

        • Increased emphasis on Joint Industry Project catalysis and launch;
        • Wider dissemination of Members' Research needs to research providers;
        • Launch of a major "Reservoir Uncertainty" research initiative (the JUNIPER programme);
        • £200K investment in new subscription-funded research.
        R&D Co-ordination:

        • International Research and Technology Forum (15th-16th November 1995);
        • Sharing of "expert panels" with other funding /co-ordination bodies;
        • Actions through ENeRG, the European Network for Research in Geo-Energy.
        Research and Technology Information Service:

        • PTERIS electronic (INTERNET) delivery of information;
        • Upgrading, analysis, and improvements to International Petroleum Research Directory;
        • Maintenance of rapid-response R&D enquiry service for members.
        Technology Transfer:

        • Transfer of current PSTI research products to "technology delivery" companies;
        • Information and Technology Transfer Seminar programme for Members;
        • Development of new measures to support innovation by smaller companies in the service sector;
        • Actions as an Organisation for the Promotion of Energy Technology (OPET) under contract to the European Commission.
        A full statement of PSTI's objectives and deliverables for 1995 are available upon request from Irene Hepburn at the Aberdeen Office.


        Actions In Technology Transfer

        PSTI Pushes Forward in Innovation

        As PSTI's 1990-1994 membership-funded programme matures, a remarkable number of resultant "products" from reservoir modelling software, to a true-triaxial cell and an NMR flow-meter, are creating quite a stir among service and supply "technology delivery" companies as we seek commercialisation partners to take these products to market.

        This welcome development has brought to the fore one of PSTI's primary purposes: the effective delivery of innovative technology. PSTI's track record in successful R&D commercialisation is already well established, the highlight so far being the licencing out this year of the Hedera Basin Modelling Workbench to ERC Tigress.

        Steady progress is being made with a number of other products, and several commercialisation agreements are anticipated towards the end of 1994/beginning of 1995, most of which will involve SMEs (Small to Medium Sized Enterprises - SMEs constitute the vast majority of UK businesses).

        PSTI's SME Membership Scheme (assisted by Scottish Enterprise National) which nears the end of its 12 month pilot phase, has helped us understand the real difficulties facing small companies in delivering innovative solutions to oil companies' technological challenges (a term increasingly used by operators to describe the technical barriers to exploitation of hydrocarbon assets). These difficulties are indeed, somewhat paradoxically, growing steadily worse for SMEs in particular, as the oil industry grapples with the implications of CRINE (Cost Reduction Initiative for the New Era) and moves into increasing reliance on multi-national prime contractors.

        Successful development of technology hinges very much on a series of complex interactions in the supply chain: between individuals and teams in the research base, technology delivery companies, purchasers, prime contractors and operators.

        Concerns long recognised by SMEs, that changes taking place in this supply chain threaten to severely reduce the scope for innovation, are now being acknowledged by operators. Consequently PSTI is now exploring expansion of its innovation operations with the objective of significantly improving and increasing cost-effective throughput and delivery of relevant innovation. As an early step towards PSTI's expanding role in innovation, the successful SME membership scheme will be further expanded in 1995 (we expect to have an additional 10 new SME Members by end of first quarter).

        PSTI's unique "honest-broker" status and extensive networks linking us to oil companies, the service industry community, R&D organisations and the various government organisations and agencies (eg EU, DTI, OSO, Scottish Enterprise National) together with our strong oil industry market focus and existing infrastructure, should put us in key position to make great strides ahead for innovation.

        Continuing our efforts to add value to our Members' businesses, in 1995 we will be offering, as a new service, assistance in commercialisation of existing intellectual property, much of which is currently gathering dust in many oil companies' archives and stores. This shared risk/reward service is offered separately to the subscription programme, and we are optimistic that several Members will be looking to take up this offer.

        (For further information on PSTI commercialisation products, please contact: Graham Stewart, PSTI Business Development Manager).

        Bullet points

        PSTI are pleased to welcome Mr George Watkins, Managing Director, Conoco (UK) Limited to its Board of Management. Mr Watkins was elected to the Board at the Annual meeting on 15th November 1994.

        Professor Ben Harte, Edinburgh University has replaced Professor G. Boulton on the PSTI Board of Management.

        PSTI 1995 Research and Technology Forum to be held in November 1995 (15th / 16th November - provisional dates).

        PSTI is coming to the end of its term as founding president of ENeRG. The next presidency term will go to IFP.


        To be placed on the NETWORK UPDATE mailing list, or for further information, please contact Irene Hepburn at the Aberdeen office:

        THE PETROLEUM SCIENCE AND TECHNOLOGY INSTITUTE

        Research Park, Riccarton, Edinburgh EH14 4AP, UK. Tel: +44 (0)131 451 5231 Fax: +44 (0)131 451 5232

        Offshore Technology Park, Exploration Drive, Aberdeen AB23 8GX, UK. Tel: +44 (0)1224 706600 Fax: +44 (0)1224 706601

        E-mail: [email protected]





        Last Updated 19/7/96