Artifi Cial Lift Techbook 2
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2 019 Artifi cial Lift Techbook A supplement to ™ SMARTEN™ is a Total Asset Manager developed by Apergy. SMARTEN™ has the ability to control and optimize all types of artificial lift that you may have in your field. SMARTEN™ also adds additional value by allowing you to incorporate additional well, facility and production data to give you the ability to make accurate production decisions faster. SMARTEN™ offers custom function configurations to allow you to further optimize well pads through nontraditional technologies. Connect | Command | Converge PCP • ESP • Plunger Lift • Gas Lift • Rod Lift • Hydraulic Lift www.apergyals.com Hart Energy’s Techbook Series The 2019 Artificial Lift Techbook is the 18th in a series of techbooks in which Hart Energy will provide comprehensive coverage of effective and emerging technologies in the oil and gas industry. Each techbook includes a market overview, a sample of key technology providers, case studies of field applica- tions and exclusive analysis of industry trends relative to specific technologies. To learn more about E&P technology trends, visit HartEnergy.com. Artificial Lift The 2019 Techbook A supplement to E&P Table of Contents HART ENERGY 1616 S. Voss, Suite 1000 | Houston, Texas 77057 Tel: +1 (713) 260-6400 | Fax: +1 (713) 840-8585 OVERVIEW hartenergy.com Back in the Saddle 2 The artificial lift market for unconventionals is on the Group Managing Editor, Print Media JO ANN DAVY rebound after recent commodity price uncertainty impacted both utilization and the bottom line. Executive Editor JENNIFER PRESLEY Chief Technical Director RICHARD MASON Associate Editor BRIAN WALZEL KEY PLAYERS Associate Managing Editor ARIANA HURTADO Advancements Are Being Made in Artificial Lift 8 Associate Editor FAIZA RIZVI and Automation These artificial lift key players are focused on innovative Contributing Editors RICHARD CASH developments and cost-cutting technologies. KUO-CHIANG CHEN WILLIAM NIELSEN SCOTT WEEDEN TECHNOLOGY SANDY WILLIAMS Artificial Lift Technology Targets Efficiency, Flexibility, 30 BLAKE WRIGHT Lower Costs Advances in artificial lift are redesigning conventional Group Managing Editor, technologies to solve problems in long horizontal laterals and Digital News Group LEN VERMILLION offshore wells. Corporate Art Director ALEXA SANDERS Marketing Art Director MELISSA RITCHIE AUTOMATION AND Senior Graphic Designer MAX GUILLORY WELLSITE MONITORING 42 Production Manager SHARON COCHRAN Artificial Lift Enters Age of Automation Vice President, Marketing GREG SALERNO Systems aid in predicting failures and optimizing production. For additional copies of this publication, contact Customer Service +1 (713) 260-6442. The Advantages of Analytics E&P Publisher, HENRY TINNE Better leveraging data can result in improved production. 50 Publisher, Oil and Gas Investor KEVIN HOLMES Vice President of Sales DARRIN WEST CASE STUDIES A Simple Solution to Runlife Extension 52 Coupling alloy extends runlife of rod-pumped wells. Senior Vice President, Media E&P/Conferences RUSSELL LAAS Adding Value with Downhole Compression Vice President, Downhole artificial lift technologies improve gas production 54 Editorial Director PEGGY WILLIAMS and recovery in liquid-rich gas wells. Chief Financial Officer CHRIS ARNDT Chief Executive Officer RICHARD A. EICHLER On the cover: Multiple beam lift units deliver fluids to the surface in California’s rolling hills. Hart Energy © 2019 (Photo courtesy of California Resources) HartEnergy.com | April 2019 | 1 ARTIFICIAL LIFT: OVERVIEW Back in the Saddle The artificial lift market for unconventionals is on the rebound after recent commodity price uncertainty impacted both utilization and the bottom line. By Blake Wright Contributing Editor here is no secret to the key to success in the oil rod lift systems are more readily introduced once Tpatch: Amass the best assets, technology and the flow rates of individual wells begin to drop. The people, then work collectively and efficiently market had a tough run during the oil price plunge to squeeze every last economic drop of resource in the middle of the decade but appears to be on the from the subsurface. Looks simple on paper, but rebound with estimates of 6% growth through 2020 it has been and remains the perpetual goal of oper- being predicted by pundits Westwood Energy. ators worldwide since George Bissell and Edwin Need more proof? Just watch the money. Tubulars Drake drilled their historic 70-ft keeper near Titus- specialist Tenaris built a sucker rod manufacturing ville, Penn., in 1858. Things have changed quite a facility in Conroe, Texas, back in 2017, but delayed its bit since Drake’s Folly, but the pursuit, discovery opening due to the downturn. The $70 million facility and production of hydrocarbons are still driven by will now open this summer. Additionally, Weather- visionaries with a mind for innovation and an eye ford president and chief executive Mark McCollum on the horizon. told investors in February that the contractor expects To that end, companies commit a generous “strong demand” for its artificial lift services in 2019 amount of resources to ensure they are securing the with declining production on older shale wells driving best returns, both from the ground and for their higher demand for the company’s rod lift systems. shareholders. The importance of efficient and max- Apergy, a company that specializes in lift systems, imum resource extraction is rarely understated—a saw its 2018 monthly ESP install rate in the Permian healthy stream of hydrocarbons is what fuels a healthy Basin of West Texas grow 2.5 times its 2016 rate. The stream of revenue. In more modern times, as industry company’s ESP revenue growth was over 70% in 2017 unlocked more and more unconventional resources and that growth continued last year. around the world and particularly in North American That’s not to say there won’t be hiccups along shale plays, the challenge of effective maximization the way. Oil prices took a dip in the fourth quarter on all fronts became more daunting, pushing the of 2018 and with it the number of well completions. limits of existing technology and corporate ingenuity. According to Baker Hughes, a GE company (BHGE), Artificial lift systems have been around for decades, 2018 marks the first time since 2015 that crude oil having been designed to increase the flow of liquids prices ended the year lower than at the beginning of up a well by lowering the producing bottomhole pres- the year. However, the company added that it expected sure on the formation. In simpler terms, the systems the market for artificial lift service to remain stable. work to squeeze every last economic drop of resource “What we at BHGE have in terms of artificial from the subsurface. There is no one-size-fits-all lift lift is possibly the widest portfolio in the industry,” system; instead, there is a myriad of solutions that said Valerie William-Eguegu, global product line work most effectively dependent on the field vari- manager for Gas Management and Unconventional ables at the point of their introduction. Electrical Artificial Lift Systems, with BHGE. “For unconven- submersible pumps (ESPs) might be the most popular tional applications, what we’ve seen over the years is for initial lifting of a high rate well, while gas and a shift in wanting to design from the onset, for the 2 | April 2019 | HartEnergy.com AARTIFICIALRTIFICIAL LLIFT:IFT: OOVERVIEWVERVIEW Summit ESP engineers continuously monitor wells on a 24/7 basis from a state-of-the-art monitoring center. The engineers have access to a complete 360° view of every well’s operational information, downhole equipment, application design and field service history. (Photo courtesy of Halliburton) challenges which may be faced in typical unconven- ESP reliability is an issue the industry has been des- tional applications. If you look at the shale market, perate to address. These pumps can take a monumental a common issue with shale is rapid decline of the beating downhole and, depending on several factors wells, so we need a system that can cope with going including the subsurface architecture, can run without from about 3,000 barrels per day to 300 barrels per fail for several years—or for just a matter of weeks. ESPs day in six months, without needing to change out are powered equipment with moving parts, and ulti- the system. That was one of the first things we did mately, as with any system that depends on more than in our portfolio, what we call our FLEXpump series one component to perform, the lower reliability can be. of ESPs, which is a pump that can operate at high “Everything is application dependent,” William- efficiency in that wide of a range, which the industry Eguegu explained. “Having said that, the way we had not seen before then.” manage our products, we break down the components of an ESP—pump, motor, cable, motor lead extension. Then we drill down into these components to figure out what we can do better with each of them. I would say that we’re breaking that jinx. It doesn’t mean that we don’t have situations where it’s the wrong application or the wrong operating method, which may cause early failures of the systems, but generally we are seeing lots of longevity and need to pull the system only when the reservoir completely changes or it is a full-field workover. Every aspect of our new product development or modifications passes through strong reliability criteria. In the context of what we are dealing with we are seeing improvement.” Rapid decline is just one issue lift systems must attempt to counteract. Additional issues include deal- ing with impurities like gas and solids coming in the well due to the makeup and sheer amount of frac sand that is used in shale development. Baker Hughes, a GE company’s FLEXPump series “One of the challenges our customers face is electrical submersible pumps can handle flow solids and solids flowback,” said Frank Corredor, rates ranging from 50 bbl/d to 10,500 bbl/d, ideal for Summit ESP Optimization and Monitoring Group unconventional plays in which production declines manager.