QPS in the oil and Gas industry

Fiber optics based solutions for the oil and Gas industry:

Fiber optics based solutions for the oil and Gas industry By Peter Kung QPS

Agenda:

Agenda Markets, concerns and challenges for the industry Introducing Peter Kung and QPS Our technology platform that might solve your problem Various solutions QPS can provide in the oil and gas industry

The biggest concern for the oil companies:

The biggest concern for the oil companies Oil and gas are becoming harder to find, oil extraction requires complicated technologies Need better assurance on the completions and production from these high-cost and complex wells. Need real-time, permanent wellbore and reservoir monitoring solution to guarantee the return on investment and maximize profits on these newly discovered fields. Need comprehensive Solutions: measurement of temperature, pressure, flow rate, fluid phase fraction, and seismic response at suitable locations, all in one box!

oil recovery:

oil recovery

Horizontal drilling:

Horizontal drilling

New Challenge-Thick Bitumen:

New Challenge-Thick Bitumen

DTS support for Steam Assisted Gravity Drainage (SAGD) :

DTS support for Steam Assisted Gravity Drainage (SAGD)

The concept:

The concept The upper well injects steam , possibly mixed with solvents the lower one collects the heated crude oil or bitumen that flows out of the formation, along with any water from the condensation of injected steam The heat from the steam reduces the viscosity of the heavy crude oil or bitumen

More details:

More details The gases released, which include methane , carbon dioxide , and usually some hydrogen sulfide , tend to rise in the steam chamber, filling the void space left by the oil and, to a certain extent, forming an insulating heat blanket above the steam

Comparing with older cyclic steam stimulation (CSS) process :

Comparing with older cyclic steam stimulation (CSS) process Thermally, SAGD is twice as efficient as the older cyclic steam stimulation (CSS) process, and it results in far fewer wells being damaged by high pressure This allows recovery rates of 60% to 70% of oil in place

Market potential for such solutions:

Market potential for such solutions 3222 subsea wells will be installed between 2009 and 2013 North America 25% Latin America 19% Europe 13% Balance in Asia , Middle East, Australia and the Caspian region

Return on investment for these solution:

Return on investment for these solution Real-time down hole data offer many opportunities to greatly improve production management and reservoir recovery. These include actively managing drawdown to increase production performance; production and injection profiling in horizontal and multi-zone wells to identify and control fluid flow to and from different parts of the well; providing sufficient information to allow for the early determination and confirmation of reserves

QPS Photronics and Peter Kung:

QPS Photronics and Peter Kung

Company Expertise and history:

Company Expertise and history Invented The phase mask Technology Pioneered in Fiber gratings technology , product and process development Providing OEM products and solutions using fiber Bragg gratings technology In 2006 Peter Kung invented and patented a Fibre Bragg Grating structure VibroFibre™ to measure vibration

What is a Fiber Bragg Grating?:

What is a Fiber Bragg Grating? Fiber Fiber Bragg Gratings Core Transmitted Signal Reflected Signal Measurand Induced Shift λ λ λ λ b λ b I i I t I r Period, Λ L

Unique attributes:

Unique attributes FBG is small in size and light in weight Long operating life of >25 years Ideal for remote and distributed sensing FBG sensor is passive, draws 0 power Immune to RFI and EMI Can work in hostile environment, like extreme temperature and high pressure

Technology platforms:

Technology platforms The sensor system of QPS used for oil field, as a kind of DTS (distributed temperature sensor) or DAS (distributed Acoustics sensor) system, is based on Brillouin signal analysis by using continuous lightwaves (not pulse) method. The detection principle of this technology is to detect the variations of Brillouin light gain in sensing fiber, which is proportional to the amount of disturbance imposed on the fiber and temperature around the fiber.

Key performance of the Technology:

Key performance of the Technology fast detection , checking the pressure and temperature changes in almost real time. Using frequency hopping technology, the system can focus on some selected points to check the acoustic and vibration generated by activities in the reservoir. Flow measurement can be done via array of discrete pressure transducers

What we bring to the table:

What we bring to the table Technology derived and adapted from our border security monitoring solution Special metal coated fiber with carbon undercoat to create an hermetic seal Pure silica core fiber making it hydrogen in-sensitive No need for special cable , no need for gel or chemical to getter Hydrogen Totally customizable Fiber Sensor network Armored cable available

Slide 24:

System details Filter PreAmp. ADC Data Stacker FFT P S TLS Data processing Unit #1 Unit #2 Unit #3 Reference fiber with 32 FBGs (inside system) Sensing fiber #1 Sensing fiber #2 Sensing fiber #3 DSP Driver Data outputs Data bus TLS : Tunable Laser OC : Optical coupler : Polariz. Beam Splitter : Photon Detector : optical circulator OC1 OC3 OC2 : optical isolator OC4 OC5 : Polariz. Controller

Propose to adapt of our platform for the down well application:

Propose to adapt of our platform for the down well application Measure multiple parameters Almost real time Long life:Sensor cable works for >25 years Reusable sensor cable Sensing system be part of global network

Many possibilities:

Many possibilities Down well Seismic Land Wells Refineries Seismic sensing Distributed temperature; borehole pressure , sand detection, multiphase flow rates , content Perimeter security, leak detection, inventory control

Even more possibilities:

Even more possibilities Pipelines Offshore wells Leak detection, perimeter security against intrusion, theft and accidents Distributed temperature, point pressure, flow, content, strain on the riser, hydrate detection

System Level Objectives:

System Level Objectives Ease of maintenance Plug and play, user friendly user interface Ruggedness, long working life Web based , remote control and monitoring supporting many subsystems Subsystem must survive harsh environment , all electronics under thermal Electric control (TEC)

We know what are important!:

We know what are important! Fiber with un-doped core removing hydrogen sensitivity Hermetic seal coated fiber Working temperature of up to 600 degrees C in the near future Cable structure working in Harsh environment Bend insensitive fiber

Sensing capabilities :

Sensing capabilities Distributed temperature sensing Distributed acoustic and vibration sensing Multi-point pressure sensing (discrete transducers at selected location) Flow rate sensing Flow content sensing Operating well in harsh environment Flexible connectivity, and reusable sensing cables

Potential market for the Smart Well:

Potential market for the Smart Well System price in US$ 250K 200K 150K 75K 50K ASP & projected quantity /total sales A few /37.5 M$ 500 / 100M$ 3000 / 450M$ 10,000 / 750M$ 20,000 and 1 Billion$ System cost includes sensing cable

Summary of Challenges:

Summary of Challenges Temperature Pressure Hydrogen H2S Sea water Hydrocarbon CH4,CO2 Sand , drilling fluid Hydraulic fluid Stimulation chemicals 300 to 600 degrees C > 1500 bar HPHT environment

Hydrogen problem:

Hydrogen problem Hydrogen is everywhere down well Formed as reaction between well fluids and steel completion parts. Hydrogen diffusion into the optical fiber causing loss This loss is caused by Germanium dopants reacting with hydrogen forming light absorbing species (e.g. hydroxyl ion).

Solution is pure core fiber:

Solution is pure core fiber

Performance of our solution:

Performance of our solution Temperature Pressure Flow Content Max Range 10 readings per second 300 to 600 C Same as above 100 to 10000 psi 5 readings per second % of hydrocarbon and water 10 Kilometers

Distributed temperature:

Distributed temperature Distributed temperature sensing (DTS). The length of the entire fiber acts as the sensor, yielding a continuous temperature log along the length of the fiber-optic cable. A time-lapse profile of the temperature changes across the production zone.

High Resolution temperature array:

High Resolution temperature array When high resolution is required: we provide an array of discrete optical temperature sensors into a fiber-optic cable to provide high-resolution temperature measurement points. Stable, high-resolution measurements from the sensor array enable production analysis of applications where changes in temperature are minute, such as profiling oil and water production from long horizontal wells.

Single cable , multiple fibers:

Single cable , multiple fibers 1/4-in cable has been designed for maximum durability and longevity. Size is identical to that of most in-well hydraulic and electronic control lines. A complete integrated system of dry and wet-mate connectors enables the cables to pass through packers, safety valves, and other in-well equipment. Standard cable contains three or more strands of fiber, one commonly used for distributed temperature sensing, and the other two for all other types of sensors, the number of sensing fiber can be customized

Real time flow sensing:

Real time flow sensing Real-time down-hole flow measurement is critical for optimizing production from many of today’s complex well designs, including intelligent, multi-zone, and multilateral completions. In multilateral completions and wells with commingled production from stacked reservoirs, optical flow-meter data can help resolve production resources allocations issues and determine productivity index for individual zones or the entire well. Data from a down-hole flow-meter can be used to reduce or eliminate the need for surface well testing and the resulting operational, safety, and environmental effects.

Distributed Acoustic Sensing:

Distributed Acoustic Sensing Seismic monitoring has been used to map fracture propagation during well stimulation. Recently, geoscientists have been listening to micro-seismic activity that is associated with injection, production, or subsidence–adding a new dimension to dynamic reservoir characterization

Multiplexed fiber and multi-sensing fiber:

Multiplexed fiber and multi-sensing fiber Pressure gauges and flow-meters can be multiplexed on a single fiber with multiple sensing points and measurement types reducing system complexity A down-hole cable splitter can be used to interconnect several sensors in complex completion designs Custom fiber configurations are also available upon request.

Sand control:

Sand control Fiber fits into a channel, integrated into a shrouded screen – Virtually no flow obstruction Using a special groove, incorporated in a sand screen protective shroud, a fiber-optic cable and sensors can be deployed along the screen to measure production profiles.

Resolution of the distributed sensing solution:

Resolution of the distributed sensing solution Temperature Pressure No drift, no calibration required Expected life 1 degree C 1 psi 10 years

Other alternatives:

Other alternatives VAPEX uses solvents instead of steam to displace oil and reduce its viscosity ET-DSP is a patented process that uses electricity to heat oil sands deposits to mobilize bitumen allowing production using simple vertical wells ISC uses oxygen to generate heat that diminishes oil viscosity; alongside carbon dioxide generated by heavy crude oil displace oil toward production

Gas-Assisted Gravity Drainage (GAGD) :

Gas-Assisted Gravity Drainage (GAGD)