4D Reservoir Management in the Oil Industry Roger N. Anderson Director, Energy Research Center Columbia University

Tx Sh Ar BP/A Agip Hyd Ch Ex Mob Elf Ph 16 14 Earnings Growth 12 10 8 Earnings Performance of the International Oil Companies (Source: Bankers Trust, 1997) 16 14 Earnings Growth 12 Tx Sh 10 Ar BP/A Agip Hyd Ch Ex 8 Mob Elf Ph 6 2 4 6 8 10 Production Growth

Production and Reserves Growth for the International Oil Companies (Source: Bankers Trust, 1997) II Tx I Amoco Sh Agip Ch BP/A Mob Ar Hyd BP Ex Elf Ph IV III

Production Growth, Depletion and Reserves Life of International Oil Companies (Source: Bankers Trust, 1998) Ph BP/A Sh Agip Tx Ch Ex Amoco Elf Ar Mob Uno

Market Drivers toward Mega-Mergers Ex BP Ex/Mo BP/A Ar Am Ph Un Eni Shell Tx Chv Fina Con Tot/F Elf Rep Hyd

Blow-up of ROCE vs Market Cap

Optimal Business Plan Business Goals Present Business Plan

Generic E&P Portfolio

Low Risk High Risk High Risk Low Risk

Turbidite Fields Discovered since 1965 Marlim Chicontepec Barracuda Mars Forties Roncador Albacora Dalia Benguela Edop Brae Girassol Hungo

Increased Productivity from 20 Case Studies: 2D baseline in 1986, 3D from 1986 to 1995, 4D since 1995 2D 3D 4D

Technology Value Creation Shorten CYCLE Time Apply ONLY Technologies that MAXIMIZE business performance Offer New Perspectives on EXISTING Production Problems Truly INTEGRATE Reservoir Management Technologies Interact through new SPATIAL Technologies to allow new Perceptions

“Networked Forces” engaged in Anti-Submarine Warfare

Generic E&P Portfolio

Technical Suitability Matrix

Exploitation Strategy using 4D Seismic Monitoring combined with advanced Multilateral Completions to drain bypassed pay chamber (source: Anderson, Scientific American, March, 1998) Injected Gas breakthrough Downdip along Fault Bright Spot Hydrocarbon Indicator Secondary Gas Cap Forms Bypassed Oil Water Injection Downdip Water “Finger” Breakthroughs Bounding Water Initial Seismic Impedance New Multilateral 4D Difference

Wellbore Reservoir Simulation Streaklines tracking flow of oil (orange) are compared with 4D Seismic Monitoring changes (blue = seismic dimming (water encroachment), red = brightening (gas out of solution), green and yellow = sustained high amplitudes (remaining pay).

Multi-Dimensional Efficient Frontier 3D Efficient Frontier Visualization

Earth Model of ST 295 Pay Reservoirs - Scene 2

Reservoir Regions built into MultiMesh MacroModel

“MultiMesh” MacroModel for Eclipse and VIP Simulation and Seismic Modeling.

Modeled vs Observed 4D Impedance Pre-production 1994 Difference Pre-production 1994 Difference Gas Model 4D

Oil Flow Streaklines from Eclipse Simulation imbedded in observed 4D seismic change particles - Scene 4. A-12 A-22

SeisRes integrates 4D seismic observations and modeling into reservoir characterization and simulation 1

Camera on Beachball particle tracks spillpoints - Scene 5.

4D Seismic Difference particles implanted into Regions - Scene 6

Real Time Field Monitoring

Integrated Operations Optimization (IO2) Computational Architecture

Internet Traffic Monitoring

Conclusions Increases in oil and gas recovery by using emerging 4D technologies must be managed in a rigorous business sense. Far-field technologies are being introduced to manage portfolio, including the 4D technologies. Adoption of many of these far-field technologies is inevitable.