A"One Engine with Six Gears"System Engineering Methodology for the Economic Development of Unconventional Oil and Gas in China

Unconventional oil and gas resources have become the most important and realistic field for increasing China’s domestic oil and gas reserves and production.At present,the production scale does not match the massive amount of resources and the rapid growth of proven geological reserves.The challenges of technology,cost,management,and methodology restrict large-scale and economic development.Based on successful practices,a"one engine with six gears"system engineering methodology is put forward,which includes life-cycle management,overall synergy,interdisciplinary cross-service integration,marketoriented operation,socialized support,digitalized management,and low-carbon and green development.The methodology has been proved to be effective in multiple unconventional oil and gas national demonstration areas,including the Jimusar continental shale oil demonstration area.Disruptive views are introduced-namely,that unconventional oil and gas do not necessarily yield a low return,nor do they necessarily have a low recovery factor.A determination to achieve economic benefit must be a pervasive underlying goal for managers and experts.Return and recovery factors,as primary focuses,must be adhered to during China’s development of unconventional oil and gas.The required methodology transformation includes a revolution in management systems to significantly decrease cost and increase production,resulting in technological innovation.

Geological and Engineering‘Sweet Spots'in the Permian Lucaogou Formation,Jimusar Sag,Junggar Basin

Unconventional oil and gas resources require petrophysical logs to answer the question of how best to optimize geological and engineering‘sweet spots'.Therefore,the establishment of a key well with comprehensive descriptions of lithology,reservoir properties,hydrocarbon-bearing properties,electronic well log responses,source rock properties,brittleness,and in situ stress magnitude and direction is important for the effective exploration and production of unconventional hydrocarbon resources.Cores,thin sections,scanning electron microscopy(SEM)and comprehensive well log suites are used to build a key well for the Permian Lucaogou Formation,Jimusar Sag of the Junggar Basin.The results show that there are three main types of lithologies,including siltstone,mudstone and dolostone.Lithologies can be predicted using the combination of conventional well and image logs.The pore spaces consist of interparticle pores,intragranular dissolution pores and micropores.Nuclear Magnetic Resonance(NMR)T_(2)components longer than 1.7 ms are superposed as effective porosity.Permeability is calculated using the Coates model from NMR T_(2)spectra.The ratio of T_(2)components>7.0 ms to T_(2)components>0.3 ms is used to calculate oil saturation.TOC is calculated using theΔlog R method.Brittleness index is calculated using Poisson-Young's method,ranging from 13.42%-70.53%.In situ stress direction is determined,and in situ stress magnitudes(maximum horizontal stress SH_(max),minimum horizontal stress Sh_(min),vertical stress S_(v))are calculated using density and sonic logs.The strike-slip stress type(SH_(max)>S_(v)>Sh_(min))is encountered.The key well which comprehensively includes the above seven properties is established.Geological and engineering(geomechanical)‘sweet spots'are then optimized from the key well by fully analyzing lithology,reservoir property,oilbearing potential,in situ stress magnitude and brittleness.It is hoped that the results support engineers'and geologists'decisions for the future exploitation of unconventional hydrocarbon resources.