Production Reporting by State

Transcription

1 Information Analytics Expertise MARCH 2015 Production Reporting by State Bruce Smith, Sr. Director, U.S. Data Ashley Bailey, Principal Advisor / ALL RIGHTS RESERVED

2 Today s Talk Review PPDM s What is a Well? definitions Discuss Level of Reporting of production Compare Level of Reporting to PPDM s What is a Well? components Discuss the Production Reporting By State spreadsheet Compare and contrast several key states in detail We only cover U.S. so all Canadians should now leave the room 2

3 Why is Production Reporting important? Data managers state-to-state variations may need to be reflected in your data model. If you force a by lease number to fit into a by well model, then you have made assumptions that you need all users to understand. There are sometimes differences between your internal production system and what the regulatory agency reports for the same well or lease. Geologists/Engineers you need to know Where did these numbers come from? when you try to analyze reservoir and well performance. Geotechs/Engineering techs how do you load and manage your projects? Those loading options in project software can include a form of interpretation. Do you know what was loaded and potential issues? 3

4 PPDM What is a Well? components A Wellhead Stream is a flow of fluids through a conduit determined by an installed wellhead configuration A Wellbore Completion is a set of Wellbore Contact Intervals that function as a unit to produce or inject fluids. A Well Reporting Stream is a derived stream of fluids to support the allocation and aggregation of volumes. 4

5 We will use a generic term of Entity that correlates roughly to Wellhead Regulatory Reporting Stream Entity: a thing with distinct and independent existence In production data, it means a distinct thing with production volumes. For most states, the Entity is tied to the level of production reporting. The entity could be Production from Well A Or Production from Reservoir 1 in Well A Or Production from lease that has Well A and a bunch of other wells Each state has its own reporting requirements for production volumes. So always ask What is the reporting level of this Production Entity? and realize the answer varies from state to state. 5

6 Explaining the Diagrams we will use Tubing strings Packer Reservoirs Bob: What reservoir, eh? Doug: Take off. You mean regulator s reservoir name or what we call the reservoir? Bob: I need a cold one Perfs Reservoirs are sometimes called Pools by regulators. Regulators define what they mean by reservoir or pool and it doesn t fit what geologists or engineers mean by reservoir 6

7 Level of Reporting or Entity Case 1: Single well completed in 2 reservoirs with separate tubing strings How many production entities are there? This analysis assumes a single lease covering the cross-section area. The answer depends on 1. what state is the well in? 2. Are the completions commingled or produced separately? 7

8 Entities in Unallocated Production Case 2: Two wells, one completed in 2 reservoirs with separate tubing strings. The other well completed in 1 reservoir How many production entities are there? The answer depends on 1. what state is the well in? 2. Are the completions commingled or produced separately? 3. In some states, is the well regulated as a gas well or an oil well? 4. When did the production occur? Well #1 Well #2 Lease A 8

9 Ok, now time to think in 3-D Hmm, now which one is Trudy? 9

10 In some states, production is reported by well. In other states by lease/unit. Lease/Unit in map view 10

11 In some states, production is reported by lease/unit. Lease/Unit in cross-section view Bailey Lease Res A Smith Lease Res A Bailey Lease Res B-D Smith Lease Res B-D 11

12 Um 12

13 Production Data By State spreadsheet 13

14 Keys to Reading the Spreadsheet. Or get a digital copy from PPDM! D: What s it say? B: Pregnant dogs should not drink beer 14

15 Production Reporting spreadsheet Categories Level of Reporting: Well, Well-Completion, Lease Reporting Frequency: How often reporting occurs Reporting Period: Volumes by Year or by Month? Production reported by API-10, 12, 14 or with no API number? Production reported by Reservoir?: Mostly yes, but a few states only have production by well, regardless of reservoir Is Produced Water volume reported?: Several states do not require any report of produced water Is Injection volume released by state?: Federal regulation requires reporting injection volumes in all states under UIC, but only a few states release the injection volumes. What is the reporting pressure for Gas? 15

16 Production Reporting spreadsheet Categories continued Age of Oldest Production on State website Production ID for reporting Surface and Subsurface Commingling Is Well Status part of production reporting? Comments about unusual state practices 16

17 Level of Reporting for current production Bob: We report by well up here Doug: it s because we re geniuses, you know? Well Completion By Well (sum of completions) Combination of Lease and Well Reported by Lease Production not reported 17

18 Key Concepts For every state you work, you should know What is the Level of Reporting? Has the Level of Reporting changed over time? Is the Level of Reporting different for different well types (ie, oil vs gas)? How does the well API number relate to the production reporting? 18

19 Water Production reported All wells Some wells Not reported 19

20 Another map! Bob: I think that middle guy is Pierre Trudeau Doug: I am moving to Mississippi. They love Canadians Something Some other thing Some other-other thing 20

21 Variation in Reporting Pressure of Natural Gas Reporting pressure required by states varies between to psi 1 mcf at has approximately 2.5% more methane than 1 mcf at Bob: Is it Mee-thane or Meth-ane? Doug: Just give me the matches and turn off the lights So make sure you always buy your natural gas from Louisiana or New Mexico to get more for your $! psi psi psi Reporting pressure not mentioned BLM and BOEMRE require psi 21

22 How many production reporting entities? Let s try a few.. 22

23 Level of Reporting or Entity Case 1: Single well completed in 2 reservoirs with separate tubing strings How many production entities are there? This analysis assumes a single lease covering the cross-section area. The answer depends on 1. what state is the well in? 2. Are the completions commingled or produced separately? 3. Does the regulator consider these separate reservoirs or part of the same pool? How many production entities if separate completions in Colorado? North Dakota? Pennsylvania? Texas? What happens in Colorado if the reservoirs are commingled? 23

24 Entities in Unallocated Production Case 2: Two wells, one completed in 2 reservoirs with separate tubing strings. The other well completed in 1 reservoir How many production entities are there? The answer depends on 1. what state is the well in? 2. Are the completions commingled or produced separately? 3. In some states, is the well regulated as a gas well or an oil well? 4. When did the production occur? Well #1 Well #2 Lease A How many production entities if separate completions in Colorado? North Dakota? Pennsylvania? Texas oil well? Texas Gas well? 24

25 In some states, production is reported by lease/unit. Lease/Unit in cross-section view Bailey Lease Res A Smith Lease Res A Bailey Lease Res B-D Smith Lease Res B-D How many production entities if commingled volumes in Colorado? How many entities if Texas Gas wells and horizontal lines are separate reservoirs? 25

26 The fine print in the Comments Extra Special Texas issues Pending production vs production on wells on the proration schedule for a lease But RRC may or may not stop the Pending production volume when a well is added to the lease schedule. Texas DOUBLE COUNTS condensate on Gas wells AFTER the well moves from Pending to Approved Gas Well. Gas = Dry Gas mcf for every bbl of condensate Stacked Laterals in Texas-ese means when multiple wells are reported as a single well test and production volume. These are DIFFERENT wellheads! It s easy to lose a well Bob: We can take one Molson out of every 6-pack and sell it to Texans. We tell them to double count one of them Doug: Genius 26

27 The End Bob: Is this guy is making fun of Canadians? Doug: I don t think so.. I think he s making fun of Texans Who s making fun of Canadians? 27