Heavy Oil ProducerCalifornia

Oil producer increases production and decreases costs by using rod pump control to align pump operation with changing well conditions in real time.

• 10 percent increase in average net oil production• 11 percent decrease in power consumption• 6-month payback

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Schneider Electric Case Study

Schneider Electric Case Study > Heavy Oil Producer

The oil producer chose to install Schneider Electric Realift Rod Pump Controllers (RPCs) that monitor and control equipment operation based on downhole conditions.

BackgroundCrude oil continues to be one of the world’s most commonly used energy resources, with more than 9 million barrels of oil produced daily in the United States in 2014. Due to price volatility in this industry, companies with the lowest operating costs and highest production will have the best chance at long-term success in weathering the continued fluctuations in oil prices.

One California-based heavy oil producer has been successful in finding ways to reduce costs and increase production without drilling new wells. The company has hundreds of wells across dozens of locations worldwide, including several U.S. states. In many of its vertical and horizontal well operations located in California, the company uses a rod pump system that employs steam injection to heat up the formation and decrease the oil’s viscosity so it flows into the wells. The company’s wells average 1,000 feet deep and produce an average of 20 barrels of oil per day.

The ChallengeDownhole conditions can change constantly, with volumes varying over a day, week, or month. Monitoring downhole conditions and keeping surface equipment operating efficiently is always a challenge. There’s a subtle balance in maximizing production without causing unnecessary wear or damage to the equipment.

“We could be pounding the downhole equipment by pumping fluids in the wellbore to very low levels, but over time there’s an expectation that oil production will increase as we steam the surrounding wells,” said the company’s production superintendent. “It becomes a trade-off between prolonging the life of the equipment and producing the maximum fluid from the well.”

To get the most oil from every well, the company was previously running pumps full time at a constant speed, regardless of the fluid level. Since the company’s wells are in sandstone formations, there were concerns that the pumps needed to run constantly to prevent sand from settling and causing premature pump wear and reduced pump efficiency.

To increase profit, the company considered a way to maximize the productivity of existing wells. In 2013, the oil producer began a pilot project to invest in real-time pump control by monitoring downhole conditions on 12 wells in three oil fields. As a result, the company has increased average net oil production, decreased power consumption, and extended the life of its equipment.

The SolutionThe oil producer chose to install Schneider Electric Realift™ Rod Pump Controllers (RPCs) that monitor and control equipment operation based on downhole conditions. The controller is embedded into an Altivar™ 71 variable frequency drive with integrated machine controller card, utilizing a load sensor mounted on the polished rod, and a proximity sensor mounted on the rod pump frame.

The Realift RPC is an off-the-shelf solution that is ready to install into a NEMA 3R cabinet. The controller is integrated into the Altivar 71 drive, thus eliminating the need for an external PLC enclosure. The RPC features a point-and-click configuration interface that runs on a laptop connected to the drive via Ethernet modbus communications. The configuration tool allows technicians to monitor and configure the drive and RPC parameters locally or remotely.

To check downhole conditions previously, technicians visited each well using a portable dynamometer every couple months. While this helped the oil producer track longer-term trends, it could not effectively see daily changes that would impact the best use of pumping and steam injection. Now with the RPC system,

2 | Heavy Oil Producer

Schneider Electric Case Study > Heavy Oil Producer

the downhole dynamometer card is generated in real time and the system tracks temperature, pressures, and other data points.

“Our old data was spotty and inaccurate. With the Schneider Electric controller and the variable frequency drives, we get real-time measurements on the downhole conditions,” the production superintendent said. “By capturing the data daily in real time, we manage the total field operations more efficiently and know the best times and locations to place steam injection for the best production results.”

Previously the pumps were running continuously but at a slower rate than the oil flow into the wellbores, so there were some missed opportunities for oil production. At times, the fluid level built up over the pumps because they weren’t operating fast enough for the influx of fluid. With the variable frequency drives, the pumps can speed up and pump the oil down during higher flow periods. As a result, the company has seen a 10 percent increase in net oil production.

By reducing overpumping, there is no wasted power. The drives manage the pump speeds instead of holding constant speed. Therefore, the company has seen immediate decrease in power consumption by 11 percent. Plus, rebates from Pacific Gas and Electric Company provided further financial incentive to install the RPC systems.

In addition, the company has reduced fluid pound at the pumps because they don’t run when fluid levels get low. This reduces harsh conditions that lead to premature pump failure. Intervals between scheduled maintenance are extended and pump failures are significantly reduced, improving the uptime so wells keep running without interruptions.

“We were previously running somewhat blind, working in the Stone Age with our well surveillance. The Schneider Electric RPC has allowed us to step up to the 21st century,” the production superintendent said.

Data creates confidence

To get approval and funding for the RPC pilot project, the production supervisor found it easy to show management an immediate payback. Due to energy savings and an increase of 50 BOPD total from these wells, the company is estimating a six-month return on investment. In comparison, drilling another well would have required three times the investment of installing the RPCs. Also, the production increase would have been unlikely without these RPCs.

“The power savings we realize immediately, so it was an easy sell to management that they readily recognized.” the production superintendent said. “It sounded a little too good to be true, so they were somewhat skeptical at first. When they saw the data, it gave them the confidence that we made the right choice to improve our operations.”

Seamless tie-in to SCADA

Schneider Electric worked with the oil company’s engineers to set up the RPCs ahead of time for simple, plug-in installation. The extra planning allowed the company to get wells back online very quickly to minimize downtime.

Furthermore, the RPC was adapted to interface into the oil company’s existing data collection software, Wonderware™. This prevented the need for additional time and cost to implement and learn new software.

“The RPC ties in the data gathering and communicates directly to our SCADA, so it was a simple installation. We didn’t want to recreate our system unnecessarily,” said the production superintendent. “Other providers wanted us to switch to their proprietary software systems, which would have added cost and inconvenience. Schneider Electric adapted to our needs instead of selling us more equipment than we needed.”

Heavy Oil Producer | 3

“ We were previously running somewhat blind, working in the Stone Age with our well surveillance. The Schneider Electric RPC has allowed us to step up to the 21st century.”

- The company’s production superintendent

Schneider Electric Case Study > Heavy Oil Producer

Schneider Electric USA

8001 Knightdale Blvd.Knightdale, NC 27545Tel: 888-778-2733www.schneider-electric.com/us

March 2015

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For over 100 years, Schneider Electric continues to set the standard as a world-class provider of reliable electrical products and services. Our expertise as the global specialist in energy management enables our industry experts to work in partnership with you to achieve optimal return on your oil/gas field assets. From pump-off control to remote monitoring; from harmonics mitigation to enterprise SCADA, we can help you improve production, reduce power consumption, and minimize downtime as you strive for complete oil/gas field optimization. We are committed to helping you meet your global needs without losing sight of your unique local and regional requirements.

Learn more at http://www.schneider-electric.us/sites/us/en/solutions/industrial-solutions/oil-gas/oil-and-gas-rod-pump.page