Society of Petroleum Engineers

SPE 38091

Reservoir Management Key Performance Indicators

Cootmcht 1997. Society of Petroleum Engineers, inc. producing GOR and well spacing. In 1935, the Interstate Oil
This paper was prepared for presentation at the 1997 SPE Asia Pacific Oil and Gas
Conference held in Kuala Lumpur, Malaysia, 14-16 April 1997
Compact Commission was executed in Dallas, Texas. USA, to
promote the principle of oil and gas conservation.
This paper was selected for presentation by an SPE Program Committee following review of
information contained in an abstract submitted by the author(s). Contents of the paper, as
presented, have not been reviewed by the Society of Petroleum Engineers and are subject to
As a response to the above needs, reservoir engineering
correction by the author(s). The material, as presented, does not necessarily reflect any
position of the Society of Petroleum Engineers. Ws officers, or members. Papers presented
principles were established between 1935 and 1950s.
at SPE meetings are subject to publication review by Editorial Committees of the Society of However, in early 1960s the computer applications in
Petroleum Engineers. Electronic reproduction, distribution, or storage of any part of this
paper for commercial purposes without the written consent of the Society of Petroleum Engineers
reservoir engineering were introduced. In due time, further
is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 enhancements of reservoir modeling and simulation became
words; illustrations may not be copied. The abstract must contain conspicuous
acknowledgment of where and by whom the paper was presented. Write Librarian, SPE, P.O. the reservoir engineering modem tools. As a result of the
Box 833836, Richardson, TX 75083-3836, U.S.A., fax 01-972-952-9435
political arid economic upheaval of the 1970s to 1990s,
Enhanced Recovery (EOR) methods were introduced to
Abstract improve and increase oil recoveries. However, in the mid to
The purpose of this paper is to introduce the present day's late 1970s, at the time of the development of the North Sea's
concept of reservoir management process in monitoring complex reservoirs, combined with the enormous costs
reservoir's performance. There are probably as many different incurred in these frontier developments led to the formation of
definitions of reservoir management as there are different teams of engineers and geoscientists to work together to plan
perceptions of the process. However, to the best knowledge of the field developments. Consequently, this necessitated the
the authors, there are no published key performance indicators breakdown of the traditional hierarchical organizational
for monitoring the various reservoir developments and structure, and the formation of an ad-hoc groups to work
operations. Proper principles and practices of reservoir together to describe and develop these fields. It was thus,
management process should govern any sound reservoir driven more by operational pressures than a conscious
developments and operations. This should be attributed too decision to improve the reservoir development and
clearly and well-defined key performance (technical, operation management process.
and economic) indicators to assist in determining the reservoir
management effectiveness. These indicators are derived from What is Reservoir Management?
the total integrated reservoir management process. This paper There are many different definitions of reservoir
also proposes a reservoir management process definition and management as there are authors on this topic. The fact that
discusses the concept of the value drivers on how to apply the there have been so many attempts, and that there is still no
chosen key performance indicators in reservoir management generally accepted definition of the term emphasizes what
decision making process. reservoir management is within the industry.
Management is defined to be a process and is characterized
Historical background by planning, co-ordination, controlling, administration,
In the early years of the oil boom in the USA, reservoir communication/feedback and delegation. However, planning
management practices concentrated on the prevention of the is the most important step in the management process.
physical and economic waste of oil and gas. Oil companies Planning requires defining the problem at hand and
were interested to offset and produce the competitors' conducting rigorous evaluation of the various solution
reservoirs. These unnecessary actions resulted in waste and alternatives. Also, it involves setting the objectives based on
damage to reservoir's energy and ultimate recovery by the design of single purpose plan that includes the associated
producing at high rates the wells that were drilled on close budgets, policies, work programs. Management integrates all
spacing. the above steps into workable procedures for the
As a result of simultaneous discoveries of the giant fields of implementation, monitoring and controlling the designed
East Texas and Oklahoma City, a disturbance in the oil prices process during its productive life. From the above concept,
occurred due to overproduction. Consequently, certain
producing States in the USA enacted oil production control,
known as proration policies to avoid the economic losses and
prevent unnecessary waste. This resulted in limiting the
reservoirs' production rate to maximum efficient rates, certain

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