Nov. 13, Fall ASME/API Gas-Lift Workshop ASME/API Gas-Lift Workshop Gas-Lift Future An Extension of the Past, or a Whole New World? by Cleon Dunham, Oilfield Automation Consulting John Martinez, Production Associates

Nov. 13, Fall ASME/API Gas-Lift Workshop2 Gas-Lift Future Outline Is the past good enough?Is the past good enough? What are some "bright lights?"What are some "bright lights?" What can the future be?What can the future be? The challengeThe challenge

Nov. 13, Fall ASME/API Gas-Lift Workshop3 Is the Past Good Enough? The past has often been characterized by: For the Operating CompaniesFor the Operating Companies –Excessive use of gas –Excessive production deferment –Excessive CAPEX and OPEX –Poor application of gas-lift equipment in some cases –Many gas-lift experts have retired or left the company –High staff turn-over –Inadequate training programs and poorly trained staff –Inadequate focus on the surveillance process –Inadequate understanding of the problem and what to do about it

Nov. 13, Fall ASME/API Gas-Lift Workshop4 Is the Past Good Enough? For the Supply/Service CompaniesFor the Supply/Service Companies –Little incentive to improve gas-lift products –Little incentive to follow industry standards –Little incentive to invest in R&D –Limited competition For the UniversitiesFor the Universities –Few faculty trained to teach gas-lift –Few students interested in gas-lift –Limited funding for gas-lift programs, R&D

Nov. 13, Fall ASME/API Gas-Lift Workshop5 Is the Past Good Enough? For OthersFor Others –Variety of different programs and approaches –Inconsistency among "consultants" advice

Nov. 13, Fall ASME/API Gas-Lift Workshop6 What are some "Bright Lights?" Some emerging "bright lights" Gas-Lift HardwareGas-Lift Hardware –Equipment standards –Recommended practices –Valve improvements –Surface controlled gas-lift valves Gas-Lift ProcessesGas-Lift Processes –Surveillance improvements –Software improvements –Training developments –Integration with other forms of artificial lift

Nov. 13, Fall ASME/API Gas-Lift Workshop7 What are some "Bright Lights?" Information SharingInformation Sharing –Gas-lift workshops –Focus on artificial lift R&D

Nov. 13, Fall ASME/API Gas-Lift Workshop8 What can the Future Be? The future can be characterized by: For the Operating CompaniesFor the Operating Companies –Optimum use of injection gas –Optimum production, minimum unplanned deferment –Optimum investment --- CAPEX, OPEX –Effective selection and application of gas-lift equipment –Effective surveillance of all gas-lift wells, all of the time –Effective use of a well-defined surveillance process –Access to effective, on time, training and staff development –Clear choices --- optimum selection of artificial lift method(s)

Nov. 13, Fall ASME/API Gas-Lift Workshop9 What can the Future Be? The future can be characterized by: For the Operating CompaniesFor the Operating Companies –Use of high-pressure injection gas coupled with single point lift, which eliminates unloading valve problems –Implementation of excellent dehydration facilities to eliminate freezing and loss of production and to eliminate gas distribution piping corrosion –Use of various fluids for lift – nitrogen, CO 2 – that can also be used for reservoir pressure maintenance –Early installation of gas lift system while wells have highest production rates - quicker payout –Promote high rate gas lift and reduce wells required for field development

Nov. 13, Fall ASME/API Gas-Lift Workshop10 What can the Future Be? For the Supply/Supply CompaniesFor the Supply/Supply Companies –Stronger incentives to build high quality equipment –Higher rewards for high quality, innovative designs –Higher market share to those that build to industry standards For the UniversitiesFor the Universities –Renewed interest in gas-lift and artificial lift in general –Expanded sources of interested faculty and students –Better placement opportunities for qualified students –Expanded interest in R&D programs

Nov. 13, Fall ASME/API Gas-Lift Workshop11 What can the Future Be? For OthersFor Others –Stronger demand for effective consulting, training

Nov. 13, Fall ASME/API Gas-Lift Workshop12 The Challenge How to move from the (undesirable) past to the (desired) future By the Operating CompaniesBy the Operating Companies –Gain a clear understanding of the economics of both "inaction" and "action" –Pro-actively seek to improve gas-lift operations, optimization, surveillance, training, etc. By the Supply/Service CompaniesBy the Supply/Service Companies –Pro-actively work with Operating Companies to understand real needs and the value in meeting them –Aggressively develop required new capabilities

Nov. 13, Fall ASME/API Gas-Lift Workshop13 The Challenge By the UniversitiesBy the Universities –Pro-actively develop enhanced gas-lift (and artificial lift) programs to attract high quality faculty and students By OthersBy Others –Aggressively communicate the "value proposition" that gas-lift can help create much more net value when it is properly understood, implemented, and applied