To optimize production, engineers must have deep understanding of complex technologies and even more complex "soft issues." Where does such wisdom come from?

Operators continue to push the limits of production techniques. For example, some are trying to use traditional artificial lift methods in nonconventional applications, like high-temperature wells, environments containing high concentrations of hydrogen sulfide and carbon dioxide, highly deviated or crooked wells, wells that produce a lot of sand, and heavy oil wells. The amount of knowledge required about the processes involved is considerable, especially when there are many interdependent variables. In addition, good judgment comes only through experience, which is defined as a degree from the School of Hard Knocks.
Operators have always attempted to achieve maximum production with minimum workovers and equipment failures. In their search for profit, however, they must be able to evaluate various tradeoffs throughout a well's life cycle. This requires a better understanding of equipment reliability and the factors affecting it. "Sharing of reliability data on downhole equipment is just beginning," said Francisco Alhanati, manager of production technology at C-FER Technologies in Edmonton, Alberta. Companies are starting to release data to third parties for analysis of best practices, bucking the historical trend of keeping such data proprietary. Trends cannot be observed until there is a critical mass of data to analyze, and seldom is this achieved, even in the largest of companies. "This will be an important development in the near future," Alhanati said.
"On the flow assurance front, a more pragmatic approach to dealing with the current problems is necessary. A full understanding of the factors affecting paraffin deposition and hydrate blockage will take some time. Meanwhile, decisions will have to be made on how to deal with them. Operators will have to focus on risk-management strategies, consistent design and operational practices."
Understanding takes work
Operators are realizing horizontal wells sometimes are not as productive as anticipated, depending on the circumstances. "A better understanding of the effects of certain drilling, completion and operational practices is needed to determine favorable conditions for horizontal well applications," Alhanati said.
All this will take study and research. But the research consortia and universities are struggling to keep up with industry needs. For one thing, they don't have the funding they once had because mergers have reduced the number of sponsors and participants. Operators and service companies have the ability to aggregate data from a number of similar applications to analyze the factors affecting performance. But how many within these companies have the proper understanding to be able to sort through a complex set of intricate field data? Many of those with the most wisdom have taken early retirement, and recruiting efforts have focused on new graduates, rather than seasoned engineers. Why? Perhaps because they are cheaper to hire and have better computer savvy. Perhaps they are more trainable for new tricks than the old dogs. Perhaps they are more eager and less jaded, not having ridden the bucking bronco of the boom-and-bust cycle as many times as the old hands. If operators and service companies don't proactively pursue knowledge and experience in their staffs, I fear for the mistakes - and poor results - that lack of understanding will surely cause.
Soft issues
"Downhole and subsea processing will only advance if some current 'soft issues' can be adequately addressed by the industry and some knots untied," Alhanati said. One of these soft issues is deciding who is responsible for leading technology developments. "Most operators are assuming that the service companies and equipment manufacturers will take this role, taking the position that 'I will use it when it is made available.'"
However, some service companies and equipment manufacturers may not want to or may not be in a position to assume all the risks involved in the development of new technology, unless they can see a clear market for it. "Their position is: 'Tell me how many you will buy once I have developed it, then I will do it,'" Alhanati said.
How can we break this cycle? Operators probably went too far in reducing their high-level corporate technical support groups and in-house research staff, along with their budgets for ad-hoc technology development. Business units with short-term, local views are driving everything. Who is taking the long-term, corporate view into consideration?
How should companies infuse wisdom and understanding proactively into the younger employees? Maybe it's time to call back some retirees to do some training, or to develop some e-learning methods. In addition, employers need to encourage employees to go to training courses and technical society meetings. Everyone's annual list of objectives needs to include at least one on how to gain more wisdom and understanding.