Production data from five major geothermal fields in Nevada analysed using a physiostatistical algorithm developed for oil and gas: temperature decline forecasts and type curves

Abstract:

Nevada has the second largest output of geothermal energy in the United States (after California) with 14 major power plants producing over 425 megawatts of electricity meeting 7% of the state’s total energy needs. A number of wells, particularly older ones, have shown significant temperature and pressure declines over their lifetimes, adversely affecting economic returns. Production declines are almost universal in the oil and gas (O&G) industry. BetaZi (BZ) is a proprietary algorithm which uses a physiostatistical model to forecast production from the past history of O&G wells and to generate “type curves” which are used to estimate the production of undrilled wells. Although BZ was designed and calibrated for O&G, it is a general purpose diffusion equation solver, capable of modeling complex fluid dynamics in multi-phase systems. In this pilot study, it is applied directly to the temperature data from five Nevada geothermal fields. With the data appropriately normalized, BZ is shown to accurately predict temperature declines. The figure shows several examples of BZ forecasts using historic data from Steamboat Hills field near Reno. BZ forecasts were made using temperature on a normalized scale (blue) with two years of data held out for blind testing (yellow). The forecast is returned in terms of percentiles of probability (red) with the median forecast marked (solid green). Actual production is expected to fall within the majority of the red bounds 80% of the time. Blind tests such as these are used to verify that the probabilistic forecast can be trusted. BZ is also used to compute and accurate type temperature profile for wells that have yet to be drilled. These forecasts can be combined with estimated costs to evaluate the economics and risks of a project or potential capital investment. It is remarkable that an algorithm developed for oil and gas can accurately predict temperature in geothermal wells without significant recasting.