Second level

Third level

Fourth level

Fifth level

0

500

1,000

1,500

2,000

2,500

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

202

0

Conventional USL (Million bbl)

Unconventional USL (Million bbl)

US Oil Production Dominated by

Unconventional Oil Segment

Unconventional Well Architecture

• Majority are produced with horizontal wells

• All are fractured

– Length of horizontal section drives number

of fracture stages

• Vertical depths to 13,000 ft

• Kick-off point typically from about 5,000 to

over 10,000 ft TVD

• Casing sizes impact artificial lift recovery

methods

– Casing as large as 7 inches

– Liner as small as 4½ inches

Key Issues • Production profile

– Managing the decline

• Gas control technology

– Gas and efficiency-induced temperature issues

– Impact of gas interference

• Solids / scale

– Frac sand production

– Scale and paraffin / asphaltenes

• Economics

– Benefits of an ESP in unconventional applications

– Other potential issues

1. Maximize post frac production

2. Accelerate pay back

3. Manage draw down

4. Extend time to first intervention

Eliminate the need to change artificial

lift type

Extend ESP range

Legacy rod lift change

Manage the Decline

• Most unconventional

plays produce some gas

• Production problems

– Gas locking

– Gas blocking

– Slugging (biggest issue)

• Results in:

– Lower production

– Equipment failure

– Higher cost

Trapped Gas Slug

ESP Set in Tangent Section

Unconventional Production Challenges: Gas

Gas

Avoiding

Gas

Separating Pump Charging Gas Handling Lifting

Gas Control

Technology

Gas Solutions

Sand-Handling Solutions

• Abrasion-resistant technology

– Rapid temperature changes

– Thermal growth allowances

– Lack of lubricity

• Stage coating

– Protects against sand, scale,

and asphaltenes

– 100% coverage

• Completion tools

– Sand screen

– Chemical injection

Abrasion-resistant pump stage designs

Coated stage Sand screen

ESP Rod Lift

Operating depth (TVD) 1,000 ft - 15,000 ft 100 ft - 12,000 ft

Operating rate (BPD) 50 - >25,000 / 7 in. casing 5 – 5,000

Gas handling Good Fair

Solids handling Fair to Good Fair to Good

Well deviation Good Poor

Overall efficiency Up to 60% Up to 60%

HSE risk Low Moderate to High

Cash flow High Low

Unconventional Artificial Lift Comparison

ESP Economics

• Accelerated cash flow

• Faster payback

• Fewer equipment

changeouts