This paper was prepared for the SPE Symposium on Mechanical Engineering Aspects of Drilling and Production to be held in Fort Worth, Tex., March 5–7, 1967. Permission to copy is restricted to an abstract of not more than 300 words. Illustrations may not be copied. The abstract should contain conspicuous acknowledgment of where and by whom the paper is presented. Publication elsewhere after publication in the JOURNAL OF PETROLEUM TECHNOLOGY or the SOCIETY OF PETROLEUM ENGINEERS JOURNAL is usually granted upon requested to the Editor of the appropriate journal, provided agreement to give proper credit is made.

Discussion of this paper is invited. Three copies of any discussion should be sent to the Society of Petroleum Engineers Office. Such discussions may be presented at the above meeting and, with the paper, may be considered for publication in one of the two SPE magazines.

Abstract

Proper application of lease consolidation and commingling methods can provide significant reductions in investment and operating costs for oil producing properties. Advantages, limitations, and possible dollar savings of various field proven consolidation methods and L.A.C.T. systems are reviewed.

Introduction

A continuous search for more efficient oil production methods has been necessitated by the ever increasing cost of labor and materials. Consolidation of oil producing properties is one important cost cutting method often overlooked. L.A.C.T. opened the door for consolidation/commingling applications by providing an accurate and dependable means of continuously metering and delivering oil from the producer to the purchaser. However, sufficient savings are seldom realized by L.A.C.T. alone unless utilized as an integral part of consolidation. Conversely, lease consolidation can be accomplished without L.A.C.T., but such applications are rare. Field proven consolidation methods will be described and the benefits, savings and limitations discussed.

METHODS

For the purpose of this paper, consolidation/commingling techniques will be divided into two general methods: the Multi Custody Transfer method in which crude from two or more leases is commingled after sale by the producer and the Single Custody Transfer method in which the crude is commingled at some point prior to sale. The orderly development from basic to more complete consolidation will become apparent as the two methods are discussed.

Multi Custody Transfer: The flow pattern for this basic consolidation method is illustrated on Plate No. 1. Production from each lease or zone is transported by individual flow line to a centralized battery site, treated by a separate treater and stored in separate tanks. A multi lease automatic custody transfer unit delivers the oil from the individual lease storage tanks to the pipe line and records the volume on the L.A.C.T. master meter register and the appropriate lease oil registers.

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