What are the benefits of using smart well technology?

From a waterflooding perspective, smart wells can adjust the injection parameters dynamically to avoid excessive water production at the producing wells. This can significantly reduce the water cut (the ratio of water produced compared to the total fluid volume), leading to lower treatment and disposal costs and extending the life of the production facilities.

Smart or intelligent completion is deployed in many wells across many countries. These involves installing inflow control device (ICDs) which can be opened/closed as needed. The water oil contact (WOC) in oil reservoir supported with aquifer, would move upward as we continue taking production and a time will come when the water cut would increase, in these situations we can run a PLT to exactly know which ICDs are producing water/gas (in gas cap reservoirs) and can close those ICDs. Hence, the need of expensive intervention/workover/water/gas shut-off can be avoided.

In my opinion, one of the game-changers is the cost-saving aspect of smart well technology. Traditionally, interventions to adjust flow rates or perform maintenance required physical interventions using wireline or coiled tubing. With smart well technology, these adjustments can be made remotely, eliminating the need for expensive and risky field operations. This not only reduces operational costs but also enhances operational flexibility. The benefit of cost reduction and improved operational flexibility is substantial, positively impacting the overall project economics. However, the drawback could be the potential cybersecurity concerns associated with remote operations, requiring robust security measures.

Smart completions coupled with permanent downhole gauges helps not only to optimize production but also helps in proactively solving the downhole problems. For instance, water breakthrough could be stopped from surface, without the need of intervening into the well. There is Halliburton technology comparable to Schlumberger ICD and they named it as ICV (Interval control valves) these devices when installed can be controlled (open/closed) from surface. They come with control lines and have control panel installed at surface. In addition to that, permanent monitoring of parameters such as downhole flow rate, pressure & distributed temperature sensing helps to increase production, ultimate recovery, reduce capital & operating expenditures.

From what I have seen, the safety and reliability enhancements brought about by smart well technology are unparalleled. By enabling remote monitoring and control, smart well systems minimize the need for field personnel to be physically present in hazardous environments. This not only mitigates safety risks but also ensures timely response to any anomalies. In a project in the Middle East, implementing smart well technology allowed us to monitor well conditions and perform shutdowns remotely, significantly reducing the exposure of personnel to potentially dangerous situations. The real-time data and automated control mechanisms contribute to a proactive approach to well integrity, enhancing overall operational safety.

Smart well technology can enable reservoir engineers to implement innovative and complex reservoir engineering methods, such as multilateral wells, horizontal wells, or intelligent completion systems, which can enhance the productivity and profitability of oil and gas wells.

I've witnessed the transformative impact of smart well technology firsthand. One of the primary benefits lies in its ability to enhance reservoir management. Smart well technology allows real-time monitoring of downhole / surface conditions, providing engineers with invaluable data to optimize production strategies. This not only maximizes recovery rates but also prolongs the life of the reservoir. Moreover, the predictive analytics capabilities of smart well technology enable proactive decision-making, minimizing downtime and maximizing production efficiency. The benefit of improved reservoir management and optimized production is evident in increased profitability and resource recovery.

It's important to note that not every well is candidate for smart/intelligent completion. Same goes for every technology, that's why I usually say that technology itself is not important but the application of right technology in the right environment is the key!