Novel Artificial Lift Technology Improves Marginal Field Economics-A Case Study

Abstract As an oilfield matures, the economics of continuing production are heavily influenced by the day-to-day lease operating expenses (LOEs). One major component of LOEs can be the artificial lift. The objectives of this case study were to evaluate the economic improvement of a brownfield utilizing an innovative artificial lift system. Results are compared to the previous use of rod lift technology. Additionally, features and benefits of the system for broader applications are discussed in detail. The artificial lift method examined in this paper involves replacement of existing artificial lift systems, typically rod lift, as is the case in this application. This case study highlights the experiences of the Operator of mature properties that removed rod lift equipment and replaced it with the novel pneumatic technology throughout the field. It highlights the tangible economic benefits of the conversion and discusses additional applications of the system in shallow well environments. This paper first presents a brief history of the field development, setting the stage of the environmental challenges for the application of any recovery system. Research of product performance and its applicability to the subject field was followed by field visits to another Operator's location utilizing the technology. It documents the three-step field test and deployment program, that covers a span of four years: initial installation of seven wells, two more installations over the next year and finally a complete changeover of every producing well under management of the Operator. The expectation that the change of technology would reduce lease operating expenses was met and is quantified in the paper. Inherent issues associated with rod lift and tubing were eliminated (i.e., tubing holes due to corrosion, packing changes and pump failures) leading to additional production days per year. Furthermore, electricity costs have been reduced due to the self-regulation of the new pumps and centralization of the power supply. These ancillary benefits will also be illustrated. The case study presented in this paper will benefit engineers and technicians who wish to extend the life of their assets by reducing the costs associated with their existing artificial lift. This is accomplished by replacing what is perhaps the most common method of artificial lift utilized for initial, secondary and tertiary recovery, with a field proven novel system. Furthermore, the paper will highlight the environmentally friendly features of the system that align with the growing focus on, and concerns with, ESG by eliminating methane emissions.