The Real-Time Optimization Technical Interest Group (RTO TIG) has endeavored to clarify the value of real-time optimization projects. RTO projects involve three critical components: People, Process, and Technology. Understanding these components will help to establish a framework for determining the value of RTO efforts. In this paper, the Technology component is closely examined and categorized. Levels within each Technology category are illustrated using spider diagrams, which help decision-makers understand the current status of operations and the impact of future RTO projects. Uncertain value perception in our industry has been one of the critical issues in adopting RTO systems. Therefore, case histories are reviewed to demonstrate the impact of RTO projects. To assist RTO project promotion, we list lessons learned through case histories, suggest a justification process, and present a simple economic example. Introduction Industry case histories demonstrate many types of benefits from RTO, such as volume increase, ROI increase, decision quality, HSE improvement, and opex reduction. However, they have lacked systematic project evaluation methods or processes for justification. Today, promoting RTO is in essence a competition for capital within producing companies. The project teams that recognize this fact and then clearly outline the purpose, benefits, costs (direct or indirect), and strategic business alignment of their proposals will be in an advantageous position to secure funding. Because RTO is still an emerging discipline, classifying projects of this nature is still dependent on an individual's point of view. This paper is intended to enable classification of RTO in an objective manner and to help provide a common vocabulary to address issues. Three Cornerstones in Adopting New Technology In adopting any new technology, TIG members realize that there are three major factors: People, Process, and Technology, as shown in Fig. 1. New RTO technology can achieve the benefits we seek, but it is not likely without corresponding changes in the way we work with others and in the processes or workflow in which we perform tasks. This challenge is common to the implementation of any new technology, whether RTO or not. Engineers tend to emphasize the technology aspect because we are most familiar with it, but the other aspects are equally important. For example, the lack of workflow modification, which requires training and possible organizational changes, is tends to result in unsustainable efforts and ultimately underperformance of the investment in RTO. People People issues manifest themselves in several ways1: corporate culture, organizational structure, and training. Corporate culture is the set of tacit understandings and beliefs that form the foundation of how an organization works. It is a mental model that people have about the nature of an organization and how it sees itself. Within an organization, culture is "how things are done around here." The culture of an organization can be appropriate and supportive to an organization's goals and strategies, or it can hinder its initiatives and projects. Usually any major change in an organization, such as deployment of new technology, radical strategic shifts, or new initiatives, is countercultural. That is, the change breaks existing cultural rules and assumptions, and the change is automatically resisted and thereby impeded.

Summary The Real-Time Optimization (RTO) Technical Interest Group (TIG) has endeavored to clarify the value of real-time optimization projects. RTO projects involve three critical components: People, Process, and Technology. Understanding these components will help establish a framework for determining the value of RTO projects. In this paper, the Technology component is closely examined and categorized. Levels within each Technology category are illustrated by use of spider diagrams, which help decision makers understand the current status of operations and the future RTO status. The perception of uncertain value has been one of the critical issues in adopting RTO systems in our industry. Therefore, case histories are reviewed to demonstrate the impact of RTO projects. To assist RTO project promotion further, we list lessons learned, suggest a justification process, and present a simple example of an economic-evaluation process. Introduction Industry case histories demonstrate many types of benefits from RTO such as production-volume increase; better return on investment (ROI); higher decision quality; health, safety, and environment (HSE) improvements; and operational expenditures (OPEX) reduction. However, they have lacked systematic project-evaluation processes for justification. Today, promoting RTO is, in essence, a competition for capital within a company. The project teams that recognize this fact and then clearly outline the purpose, benefits, costs (direct or indirect), and strategic business alignment of their proposals will be in an advantageous position to secure funding. Because RTO is still an emerging discipline, classifying projects of this nature is still dependent on an individual's point of view. This paper provides classification of RTO to help provide a common vocabulary to address a multitude of issues.

TX 75083-3836, U.S.A., fax 01-972-952-9435. AbstractWhile each engineering discipline may have a piece of the puzzle to find the best solution for achieving optimized production rates and economics, we can only hope to achieve the best results if we use a total system (reservoir to sales point) approach. Relatively simple to use software tools are available to help and can be easily applied, especially on gas wells. However, effective use of these tools will require the engineering disciplines to break down silos, possibly compromise on using their "favorite" tools and work together. Examples and case histories on gas wells are shown to demonstrate how each discipline looks at solving problems and how better solutions are found using an integrated production model (IPM).

In a large field with thousands of wells of different ages and qualities, determining the optimum operating pressure is a challenging task. This study looks at the Lobo Field in South Texas which has approximately 1800 tight gas wells currently in production to determine the effect of pressures on recovery and the benefits vs. costs of compression. Wells were divided into 3 groups that share similar characteristics and modeled using the integrated production modeling tools to evaluate recovery vs. line pressure. Results show that the better wells can produce longer in a high pressure system before loading up and needing lower pressure, therefore, cost of compression per unit volume is lower. Wells with lower reserves do not stay in the intermediate pressure gathering system long before needing low pressure, thus for these wells the fuel savings from having an intermediate pressure system does not offset the cost. Well head compression is only attractive for the better wells. 1. Introduction ConocoPhillips currently produces roughly 1800 wells in the Lobo Field and maintains an active drilling program adding 40–50 wells per year. Initial field development began in the late 1970's. As the field matures, reservoir pressure declines, and as a result, so does production. Optimizing production requires optimizing surface pressures. The continuous drilling program, while adding to potential recovery, exacerbates the optimization challenge because the mixture of older and newer wells has a large range of pressure needs. The long lead time of compression projects combined with the flow and load-up characteristics of numerous wells can result in significant range of uncertainty for design volumes. Timing, location, horsepower, capacity, throughput and compressor configuration are some of the numerous variables that need to be determined with constantly changing needs. Addressing questions on this issue presented a unique opportunity for a multifunctional team of reservoir, production, facility and operation disciplines to work out a compression strategy. It was necessary for the team to work together to align goals and production philosophy and to manage a balance between top priority projects in the short term and longer term projects. A strategy that balances the cost and benefits of compression for the different types of wells was developed. This paper only focuses on the methodology used to determine the benefits and estimated cost of reduction in wellhead pressure, including timing of compression. Other compressor related issues such as cost/benefit of acquisition method, installation design, maintenance philosophy, instrumentation level and fuel usage optimization, which are all part of the overall cost of compression were included in the strategy, but will not be discussed here. Compression project economics are driven by acquisition costs, installation costs, operating expenses and the production profile resulting from lower system pressure that compression provided. How will the wells respond to lower pressure? What is the lowest pressure that added rate and recovery can justify the cost of compression? First, the wells' responses must be modeled. It is very time-consuming to model all 1800 wells at the same time thus a short-cut methodology is preferred. It was determined that despite the age differences, Lobo wells share many similar characteristics and the wells can be divided in three groups. Group 1 has an average estimated ultimate recovery (EUR) of approximately 1 bcf. Group 2 has an average EUR in the 3 bcf range and Group 3 has an average EUR exceeding 6 bcf. It is sufficient to model one well from each group and use their responses to determine representative compression economics.

TX 75083-3836, U.S.A., fax 01-972-952-9435. AbstractThis paper presents a case history of twenty-one low-cost wellhead compressors on tight Lobo Wilcox wells in South Texas. These wells previously produced to area-typical lowpressure gathering systems. Overall the installations showed substantial increases in the gas production rate as well as outstanding composite economics.However, not all installations were successful and failures are examined for lessons learned to improve future applications.Production data on the results of each of the installations are provided. The decision model used to select candidate wells from the 1600 producing wells in the field is also described.Low-cost, low-pressure wellhead compression is presented as a viable artificial lift alternative and in fact the preferred and cheapest alternative in some cases.