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Maximizing profits through facilities
- 1. Sarah Tamilarasan Carrizo Oil & Gas Maximizing Profits Through Facilities Analyzing Methods For Optimizing Integration Between Production & Facilities To Design Facilities Capable Of Handling Different Drilling Schedules & Artificial Lift Strategies Whilst Maximizing Profitability
- 2. Why is it important? BOPD of Shale wells Drill schedules, acreage position Sustain economics oil prices < $80/bbl
- 3. How can we do this? Execute Cost / Schedule driven Facilities Target 99% uptime Facilities driven by Acreage, Drill/Frac strategy, IP rates
- 4. Facilities driven by Acreage, Drill/Frac strategy, IP rates
- 5. Acreage position/Lease Obligations Facility 12,000 bbls/day Drill over 3-5 years. 100+ wells 10,600 acres 470 acres Facility 2,500 bbls/day Drill over 2 years. 8 wells
- 6. Drill/Frac Schedule • Typically 1-3 wells, Max 2000 bbls/day • Consider adding trains based on frequency of rig Lease holding or Pilot wells • Depends on size of acreage, typically 5,000-10,000 bbls/day • Acreage position might not be continuous Acreage development • Facility size should be driven by IP rates • IP rates for 2, 3 or 8 wells vary considerably. 1000-4000 bbls/day Wells on a pad?
- 7. Operator Friendly Facilities • Can it be supported by the Operations team efficiently? • Have equipment that might be bypassed? Engineering Design • Easy to trouble shoot and diagnose operational issues. Get buy in from Operations during design phase Trouble shoot • Example: Consider (2) 48” separators to process 4000 bbls/day vs (4) 36” separators • Example: Dual dumps, 2” vs 3” dumps Maximize Utility
- 8. 5000 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 BarrelsofoilperMonth Month Oil Oil2 Undersized Facility Loss of approx. $180,000 per Facility • Undersized facilities curtail production, retention time • Oversized – increases possibility of gas entering tanks Facilities Undersized? Oversized?
- 9. Advantages of 25% additional capacity • Well produce at rates higher than expected Well Production exceeds projections • Accommodates slug flow • Slugs level out with the dual separators Well flow • With Production declines, additional wells can be accommodated with existing facilities Accommodates changes in drilling/completions
- 10. System Pressure Management 100-120 psi 4-8 oz 70-80 psi >100 psi 55-60 psi
- 11. Execute Cost/Schedule driven Facilities
- 12. 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 Company A Carrizo Company B Construction Materials Design Spent 50% < Company A
- 13. Get an advantage on cost Buy in from onsite team, vendors • Materials 30% lower than industry Research/Implement cost effective design • Wireless I&E 150k vs. 700k savings over 78% Increase productivity • Construction – 600k vs 2M-3M, 80% savings
- 14. Tips to control Costs/Schedule Forecast materials 6-10 months in advance Minimize/eliminate changes in the field by combining design/Hazop reviews. Rework can lead up to additional 2M in labor Practice SIMOPS - i.e. Flow lines/Facilities in place prior to Frac ROW requests to Land 45-60 days in advance
- 16. Reduce Downtime • Production declines, compressors might need to be downsized to keep wells online • Consider routing additional wells to existing facilities to maintain retention time Evaluate Facilities 3-6 months • Periodic pigging will keep the flow lines/gas line in operation • Build in redundancy • Scheduled testing pnuematic systems, I&E equipment Implement Maintenance program • Get feedback from field operations • Make required design changes to resolve reoccurring operational issues • Roll out custom solutions Prioritize Operational issues
- 17. Questions?
Editor's Notes
- Low Bopd, 500, compared to 5,000 Middle East onshore Sharp decline curves, companies target payout within 12 months of each well Analysts predict shale wells might not be predicable oil prices $50/bbl
- Drill/completions strategy, Acreage position, drilling 1 well vs 7-8 wells, movement of the rigs, frequency of rigs on a block
- Irvin – 24 producing wells (6500 bopd), adding 21 wells (2015)
- Financial impact discussed further next slide Facilities should be sell every barrel expected from each well
- Financial impact discussed further next slide Facilities should be sell every barrel expected from each well
- Financial impact discussed further next slide Facilities should be sell every barrel expected from each well