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Proposed Methodology for Assessing Available Drawdowns for Each Oil Storage Cavern in the Strategic Petroleum Reserve

The Department of Energy maintains an up-to-date documentation of the number of available full drawdowns of each of the caverns owned by the Strategic Petroleum Reserve (SPR). This information is important for assessing the SPR's ability to deliver oil to domestic oil companies expeditiously if national or world events dictate a rapid sale and deployment of the oil reserves. What factors go into assessing available drawdowns? Determining the number of drawdowns requires the consideration of several factors regarding cavern and wellbore integrity and stability, including stress states caused by cavern geometry and operations, salt damage caused by dilatant and tensile stresses, the effect of enhanced creep on wellbore integrity, and the sympathetic stress effect of operations on neighboring caverns. A consensus has now been built regarding the assessment of drawdown capabilities and risks for the SPR caverns. The process involves an initial assessment of the pillar-to-diameter (P/D) ratio for each cavern with respect to neighboring caverns. Ideally, it is desired to keep this value greater than 1.0, which is in line with most industry design standards and should ensure cavern integrity and prevent loss of fluids to the surrounding rock mass. However, many of the SPR caverns currently have a P/D less than 1.0, or will likely have a low P/D after one or two full drawdowns. For these caverns, it is important to examine the structural integrity with more detail using geomechanical models. Finite-element geomechanical models have been used to determine the stress states in the pillars following successive drawdowns. By computing the tensile and dilatant stresses in the salt, areas of potential structural instability can be identified that may represent "red flags" for additional drawdowns. These analyses have found that many caverns will maintain structural integrity even when grown via drawdowns to dimensions resulting in a P/D of less than 1.0. The analyses have also confirmed that certain caverns should only be completely drawn down one time. As the SPR caverns are utilized and partial drawdowns are performed to remove oil from the caverns (e.g., for occasional oil sales authorized by the Congress or the President), the changes to the cavern volumes casused by these procedures must be tracked and accounted for so that an ongoing assessment of the cavern's drawdown capacity may be continued. A proposed methodology for assessing and tracking the available drawdowns for each cavern is presented in this report.

02 PETROLEUM↗

2019 Annual Report of Available Drawdowns for Each Oil Storage Cavern in the Strategic Petroleum Reserve

The Department of Energy maintains an up-to-date documentation of the number of available full drawdowns of each of the caverns owned by the Strategic Petroleum Reserve (SPR). This information is important for assessing the SPR's ability to deliver oil to domestic oil companies expeditiously if national or world events dictate a rapid sale and deployment of the oil reserves. Determining the number of drawdowns requires the consideration of several factors regarding cavern and wellbore integrity and stability, including stress states caused by cavern geometry and operations, salt damage caused by dilatant and tensile stresses, the effect of enhanced creep on wellbore integrity, and the sympathetic stress effect of operations on neighboring caverns. A consensus has now been built regarding the assessment of drawdown capabilities and risks for the SPR caverns (Sobolik et al., 2014; Sobolik 2016). The process involves an initial assessment of the pillar-to-diameter (P/D) ratio for each cavern with respect to neighboring caverns. Ideally, it is desired to keep this value greater than 1.0, which is in line with most industry design standards and should ensure cavern integrity and prevent loss of fluids to the surrounding rock mass. However, many of the SPR caverns currently have a P/D less than 1.0 or will likely have a low P/D after one or two full drawdowns. For these caverns, it is important to examine the structural integrity with more detail using geomechanical models. Finite-element geomechanical models have been used to determine the stress states in the pillars following successive drawdowns. By computing the tensile and dilatant stresses in the salt, areas of potential structural instability can be identified that may represent "red flags" for additional drawdowns. These analyses have found that many caverns will maintain structural integrity even when grown via drawdowns to dimensions resulting in a P/D of less than 1.0. The analyses have also confirmed that certain caverns should only be completely drawn down one time. As the SPR caverns are utilized and partial drawdowns are performed to remove oil from the caverns (e.g., for occasional oil sales authorized by the Congress or the President), the changes to the cavern volumes caused by these procedures must be tracked and accounted for so that an ongoing assessment of the cavern's drawdown capacity may be continued. A proposed methodology for assessing and tracking the available drawdowns for each cavern was presented in Sobolik et al. (2018). This report includes an update to the baseline drawdowns for each cavern, and provides an initial assessment of the evolution of drawdown expenditure for several caverns

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Big Hill Geomechanical Analysis Using M-D Viscoplastic Material Model

The integrity of wellbores at the interbed between the caprock and salt is a serious concern in the Big Hill site. For the remediation and life extension of wellbores, more accurate predictions from the global model are needed. The Big Hill global model is improved using the M-D viscoplastic contact surface model and the mesh containing the interbed layer with contact surfaces between the salt and caprock layers, and fault blocks in overburden and caprock layers. The model calibration has been performed based on the cavern volumetric closures obtained from the Caveman calculations. The results agree well from 1991 to the early 2000s. The difference starts to widen after that, it might be because of frequent fluid movement and raw water injection. Therefore, the predictions from this improved model could be used to examine the structural integrity of caverns in Big Hill salt dome.

42 ENGINEERING↗

Analysis of Cavern and Well Stability at the West Hackberry SPR Site Using a Full-Dome Model

This report presents computational analyses that simulate the structural response of caverns at the Strategic Petroleum Reserve (SPR) West Hackberry site. The cavern field comprises 22 caverns. Five caverns (6, 7, 8, 9, 11) were acquired from industry and have unusual shapes and a history dating back to 1946. The other 17 caverns (101-117) were leached according to SPR standards in the mid-1980s and have tall cylindrical shapes. The history of the caverns and their shapes are simulated in a three-dimensional geomechanics model of the site that predicts deformations, strains, and stresses. Future leaching scenarios corresponding to oil drawdowns using fresh water are also simulated by increasing the volume of the caverns. Cavern pressures are varied in the model to capture operational practices in the field. The results of the finite element model are interpreted to provide information on the current and future status of subsidence, well integrity, and cavern stability. The most significant results in this report are relevant to Cavern 6. The cavern is shaped like a bowl with a large ceiling span and is in close proximity to Cavern 9. The analyses predict tensile stresses at the edge of the ceiling during repressurization of Cavern 6 following workover conditions. During a workover the cavern is at low pressure to service a well. The wellhead pressures are atmospheric. When the workover is complete, the cavern is repressurized. The resulting elastic stresses are sufficient to cause tension around the edge of the large ceiling span. With time, these stresses relax to a compressive state because of salt creep. However, the potential for salt fracture and propagation exists, particularly towards Cavern 9. With only 200 feet of salt between the caverns, the operational consequences must be examined if the two caverns become connected. A critical time may be during a workover of Cavern 9 in part because of the operational vulnerabilities, but also because dilatant damage is predicted under the ledge that forms the lower lobe in the cavern. The remaining caverns have no significant issues regarding cavern stability and may be safely enlarged during subsequent oil drawdowns. Predicted well strains and subsidence are significant and consequently future remedial actions may be necessary. These predicted well strains certainly suggest appropriate monitoring through a well-logging program. Subsidence is currently being monitored.

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Assessment of the Available Drawdowns for Oil Storage Caverns at the West Hackberry SPR Site

The Department of Energy, in response to requests from the U.S. Congress, wishes to maintain an up-to-date table documenting the number of available full drawdowns of each of the caverns owned by the Strategic Petroleum Reserve. This information is important for assessing the SPR’s ability to deliver oil to domestic oil companies expeditiously if national or world events dictate a rapid sale and deployment of the oil reserves. What factors go into assessing available drawdowns? The evaluation of drawdown risks require the consideration of several factors regarding cavern and wellbore integrity and stability, including stress states caused by cavern geometry and operations, salt damage caused by dilatant and tensile stresses, the effect on enhanced creep on wellbore integrity, the sympathetic stress effect of operations on neighboring caverns. Based on the work over the past several months, a consensus has been built regarding the assessment of drawdown capabilities and risks for the SPR caverns. This paper draws upon the recently West Hackberry model upgrade and analyses to reevaluate and update the available drawdowns for each of those caverns. Similar papers for the Bryan Mound, Big Hill, and Bayou Choctaw papers will be developed as the upgrades to those analyses are completed. The rationale and documentation of the methodology is described in the remainder of this report, as are the updated estimates of available drawdowns for the West Hackberry caverns.

58 GEOSCIENCES↗

Assessment of the Available Drawdowns for Oil Storage Caverns at the West Hackberry SPR Site

The Department of Energy, in response to requests from the U.S. Congress, wishes to maintain an up-to-date table documenting the number of available full drawdowns of each of the caverns owned by the Strategic Petroleum Reserve. This information is important for assessing the SPR's ability to deliver oil to domestic oil companies expeditiously if national or world events dictate a rapid sale and deployment of the oi l reserves. What factors go into assessing available drawdowns? The evaluation of drawdown risks require the consideration of several factors regarding cavern and wellbore integrity and stability, including stress states caused by cavern geometry and operations, salt damage caused by dilatant and tensile stresses, the effect on enhanced creep on wellbore integrity, the sympathetic stress effect of operations on neighboring caverns. Based on the work over the past several months, a consensus has been built regarding the assessment of drawdown capabilities and risks for the SPR caverns. This paper draws upon the recently West Hackberry model upgrade and analyses to reevaluate and update the available drawdowns for each of those caverns. Similar papers for the Bryan Mound, Big Hill, and Bayou Choctaw papers will be developed as the upgrades to those analyses are completed. The rationale and documentation of the methodology is described in the remainder of this report, as are the updated estimates of available drawdowns for the West Hackberry caverns.

02 PETROLEUM↗

Assessment of the Available Drawdowns for Oil Storage Caverns at the Bayou Choctaw SPR Site

The Department of Energy, in response to requests from the U.S. Congress, wishes to maintain an up-to-date table documenting the number of available full drawdowns of each of the caverns owned by the Strategic Petroleum Reserve. This information is important for assessing the SPR's ability to deliver oil to domestic oil companies expeditiously if national or world events dictate a rapid sale and deployment of the oil reserves. The evaluation of drawdown risks require the consideration of several factors regarding cavern and wellbore integrity and stability, including stress states caused by cavern geometry and operations, salt damage caused by dilatant and tensile stresses, the effect on enhanced creep on wellbore integrity, the sympathetic stress effect of operations on neighboring caverns. Based on the work over the past several years, a consensus has been built regarding the assessment of drawdown capabilities and risks for the SPR caverns. This report draws upon the recently Bayou Choctaw model upgrade and analyses to reevaluate and update the available drawdowns for each of those caverns. BC-18, 19, 101 and 102 are predicted to have conditional five available drawdowns remaining BC-15 and 17 have only one remaining drawdowns due to their proximity.

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CaveMan Enterprise version 1.0 Software Validation and Verification.

The U.S. Department of Energy Strategic Petroleum Reserve stores crude oil in caverns solution-mined in salt domes along the Gulf Coast of Louisiana and Texas. The CaveMan software program has been used since the late 1990s as one tool to analyze pressure mea- surements monitored at each cavern. The purpose of this monitoring is to catch potential cavern integrity issues as soon as possible. The CaveMan software was written in Microsoft Visual Basic, and embedded in a Microsoft Excel workbook; this method of running the CaveMan software is no longer sustainable. As such, a new version called CaveMan Enter- prise has been developed. CaveMan Enterprise version 1.0 does not have any changes to the CaveMan numerical models. CaveMan Enterprise represents, instead, a change from desktop-managed work- books to an enterprise framework, moving data management into coordinated databases and porting the numerical modeling codes into the Python programming language. This document provides a report of the code validation and verification testing.

Hart, David↗

Interface Modeling to Predict Well Casing Damage for Big Hill Strategic Petroleum Reserve

Oil leaks were found in well casings of Caverns 105 and 109 at the Big Hill Strategic Petroleum Reserve site. According to the field observations, two instances of casing damage occurred at the depth of the interface between the caprock and top of salt. This damage could be caused by interface movement induced by cavern volume closure due to salt creep. A three dimensional finite element model, which allows each cavern to be configured individually, was constructed to investigate shear and vertical displacements across each interface. The model contains interfaces between each lithology and a shear zone to examine the interface behavior in a realistic manner. This analysis results indicate that the casings of Caverns 105 and 109 failed by shear stress that exceeded shear strength due to the horizontal movement of the top of salt relative to the caprock, and tensile stress due to the downward movement of the top of salt from the caprock, respectively. The casings of Caverns 101, 110, 111 and 114, located at the far ends of the field, are predicted to be failed by shear stress in the near future. The casings of inmost Caverns 107 and 108 are predicted to be failed by tensile stress in the near future.

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Geomechanical Analysis to Predict the Oil Leak at the Wellbores in Big Hill Strategic Petroleum Reserve

Oil leaks were found in wellbores of Caverns 105 and 109 at the Big Hill Strategic Petroleum Reserve site. According to the field observations, two instances of casing damage occurred at the depth of the interbed between the caprock bottom and salt top. A three dimensional finite element model, which contains wellbore element blocks and allows each cavern to be configured individually, is constructed to investigate the wellbore damage mechanism. The model also contains element blocks to represent interface between each lithology and a shear zone to examine the interbed behavior in a realistic manner. The causes of the damaged casing segments are a result of vertical and horizontal movements of the interbed between the caprock and salt dome. The salt top subsides because the volume of caverns below the salt top decrease with time due to salt creep closure, while the caprock subsides at a slower rate because the caprock is thick and stiffer. This discrepancy yields a deformation of the well. The deformed wellbore may fail at some time. An oil leak occurs when the wellbore fails. A possible oil leak date of each well is determined using the equivalent plastic strain failure criterion. A well grading system for a remediation plan is developed based on the predicted leak dates of each wellbore.

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Geomechanical Simulation to Predict the Oil Leak at the Wellbores in Big Hill Strategic Petroleum Reserve.

Oil leaks were found in wellbores of Caverns 105 and 109 at the Big Hill Strategic Petroleum Reserve site. According to the field observations, two instances of casing damage occurred at the depth of the interbed between the caprock bottom and salt top. A three dimensional finite element model, which contains wellbore element blocks and allows each cavern to be configured individually, is constructed to investigate the wellbore damage mechanism. The model also contains element blocks to represent interface between each lithology and a shear zone to examine the interbed behavior in a realistic manner. The causes of the damaged casing segments are a result of vertical and horizontal movements of the interbed between the caprock and salt dome. The salt top subsides because the volume of caverns below the salt top decrease with time due to salt creep closure, while the caprock subsides at a slower rate because the caprock is thick and stiffer. This discrepancy produces a deformation of the well. The deformed wellbore may fail at some time. An oil leak occurs when the wellbore fails. A possible oil leak date of each well is determined using an equivalent plastic strain failure criterion. A well grading system for a remediation plan is developed based on the predicted leak dates of each wellbore.

58 GEOSCIENCES↗