ShaleTech 2011

How to Accelerate Drilling

Learning Curves:

the Hare & the Tortoise

1 Copyright of Royal Dutch Shell plc 29/08/2010

Shale Energy Technical Conference

Houston, August 2011

Eric van Oort

Onshore Gas Technology Manager

Shell Upstream Americas

Upstream Americas Onshore Gas Portfolio


The Analysts’ Perspective…..an Aesop Fable

*


INDEPENDENTS• “Swift and Agile”• Early Movers in NA Onshore Gas• Low Overhead / Cost• Industry Standard

INTERNATIONAL OIL COMPANIES• “Slow Moving”• Late to the NA Onshore Gas Game• High(er) Overhead / Cost• Premium / Non-Standard

Optimization Capabilities & Delivery Packages


Performance Improvement Delivery


Optimization Tools: Root Cause Failure Analysis


RCFA is an effective tool available to optimization engineers to analyze root causes of failures, and then working with suppliers to prevent re-occurrence of those failures in future – IADC/SPE 1284250

1

2

3

4

5

6

7

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09

Fail

ures P

er M

on

th

Optimization Tools: Drilling Efficiency Optimization


Drilling efficiency optimization examples related to the application of soft torque rotary system –See also SPE/IADC 139841 & SPE/IADC 139842

Optimization Tools: Automatic Rig Activity Detection

*


ARAD analysis of different rigs, wells, hole sections, drill crews, even drillers allow reduction of variation in performance (narrowing the distribution), with associated performance optimization

Fre

quency

Narrow, optimized

performance distribution for

a group of wells, rigs,

crews, drillers

Using ARAD to “Sharpen” Performance Distributions


Performance Metric

Widespread, non-optimized

performance distribution for

a group of wells, rigs,

crews, drillers

2 14 32 1 43

Optimization Tools: Real-Time Operations Centers

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RTOCs remain effective tools to address NPT and ILT, and will play an integral role in remote operations (remote directional drilling), rig de-manning and automation


New Optimization Tools: Case Based Reasoning

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CBR is a promising new tool to prevent trouble events in advance, and to connect well situations effectively with best practices – World Oil, April 2011

Competitive Benchmarking

Benchmarking against closest competition provides an important objective reality check on delivered performance, and is essential for target-setting


Learning Cure Acceleration

60

80

100

120Indexed Well Delivery Time per year since first production

Years

Learning Curve

Acceleration


Acceleration of Drilling Learning Curve from traditional plays (Pinedale, Early Deep Basin) to new plays (Haynesville, Groundbirch/Montney, Deep Basin)

0

20

40

0 1 2 3 4 5 6 7 8 9

Pinedale - 2002 Early Deep Basin - 2005 Deep Basin - 2008

Haynesville - 2008 Groundbirch - 2008

Years

Conclusions

� Performance tools/technologies are

important, but people & local ownership

are key to success

� In-house subject-matter experts that

have detailed knowledge about

performance improvement & drilling

efficiency optimization are essential for

success.

� Using the afore-mentioned experts, train

a group of dedicated optimization


a group of dedicated optimization

engineers (one per well delivery unit).

� Second these optimization engineers to

well delivery units, such that they are

integral part of the team and can help

build local ownership

� Following through with training of field

staff (drillers, MWD/LWD/DD staff etc.)

on DEO concepts and use of the afore-

mentioned optimization tools.

� Continual engagement of the well

delivery team on performance data,

benchmarked externally against

competition.

Acknowledgments

We like to thank our North America well engineering and delivery managers, their team leads, engineers and foremen for their continuous drive towards performance excellence, for keeping an open mind to new technology application, and for their support of the optimization engineers. Particular thanks go out to Joe Menezes, Cindy Taff, Dave Carpenter, Peter Brett, Mike Berry, Mark Duplantis, Mike DeWitt, Jaime Sharp, Ted Bergman, Joe Leimkuhler and Jeff Wahleithner. Mark Anderson, Mark Dykstra, Miguel Armenta, Tim Wiemers, Joey Roth, Dwight Dickerson, Rob Grauwmans and Lance Cook are thanked for their valuable technical insights, expertise and support that has allowed the optimization engineering approach to be successful. We thank all of our current and former optimization engineers, including Asher Qureshi, Keith Smelker, Tyler Smith, Mark Grant, Robbie Cantrelle, and Patrick Johnson who contributed to this paper. Shell Upstream Americas is acknowledged for permission to publish this paper.


How to Accelerate Drilling

Learning Curves: the Hare &

the Tortoise


Documents

ShaleTech 2011