Oral-History:Larry Lake and Oral-History:Fikri Kuchuk: Difference between pages

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==About Interviewee==
==About Interviewee==


Larry W. Lake is chair of the Department of Petroleum and Geosystems Engineering and director of the Enhanced Oil Recovery Research Program at the University of Texas at AustinHe is a specialist in reservoir engineering and geochemistry, specifically focusing on enhanced oil recovery and reservoir characterization. Dr. Lake’s work in quantifying the effects of geochemical interactions and flow variability for resource recovery is now widely applied by industry. His reservoir characterization work includes demonstrating that different geological depositional processes produce flow properties that can be statistically described. He was also among the first to recognize the importance of rock-fluid chemical interactions on enhanced oil recovery, and his work has been crucial in developing more efficient methods for recovering oil and gas from reservoirs.
Fikri Kuchuk, a Schlumberger Fellow, is currently Chief Reservoir Engineer for Schlumberger Testing ServicesDr. Kuchuk has 40 years of experience in reservoir characterization, engineering, and management, and is an internationally-recognized expert on pressure transient formation and well testing. He has made significant contributions to the theory and technology in the areas of formation and well testing interpretation ; history matching ; and uncertainty in reservoir description and reservoir performance predictions. He has published and presented more than 150 technical papers on fluid flow in porous media; formation evaluation; pressure transient well testing; production logging; wireline formation testers; horizontal and multilateral well placement and performance; permanent reservoir monitoring; water conformance and control; and reservoir engineering and management.  


==About the Interview==
==About the Interview==


Larry Lake: An interview conducted by Fritz Kerr for the Society of Petroleum Engineers, September 30, 2013.
Fikri Kuchuk: An interview conducted by Fritz Kerr for the Society of Petroleum Engineers, September 29, 2013.


Interview SPEOH000111 at the Society of Petroleum Engineers History Archive.
Interview SPEOH000110 at the Society of Petroleum Engineers History Archive.


==Copyright Statement==
==Copyright Statement==
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==Interview Video==
==Interview Video==


{{#widget:YouTube16x9|id=G7Ch62371Og}}
{{#widget:YouTube16x9|id=xfh8_duld8E}}
 


==Interview==
==Interview==


INTERVIEWEE: Larry Lake<br>
INTERVIEWEE: Fikri Kuchuk<br>
INTERVIEWER: Fritz Kerr<br>
INTERVIEWER: Fritz Kerr<br>
OTHERS PRESENT: Amy Esdorn, Mark Flick<br>
OTHERS PRESENT: Amy Esdorn, Mark Flick<br>
DATE: September 30, 2013<br>
DATE: September 29, 2013<br>
PLACE: New Orleans, Louisiana<br>
PLACE: New Orleans, Louisiana<br>


'''KERR:'''
'''KERR:'''
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Why did you decide to work in the petroleum engineering industry, and how did you get involved?
Why did you decide to work in the petroleum engineering industry, and how did you get involved?


'''LAKE:'''
'''KUCHUK:'''
 
OK, I decided--not really a decision to get into the petroleum engineering industry.  First, I went to—very beginning—I went to [a] few months, medical school.  Then, I said, “OK, I should be [an] engineer,” so I went to the Technical University of Istanbul, Mining faculty.  The reason that I went into mining is you know, my hometown, there’s a bunch of iron deposits, there’s mining, so I knew something about it. 
And then we entered university, and then we are decided to select between geology, geophysics, petroleum, et cetera.  Some graduate students gave a talk.  I was impressed with one of the talk[s].  I decided to pick petroleum engineering.  So, you know, from the very B.S. level, I entered the school with petroleum engineering. 


Actually, I decided to work in the petroleum engineering industry strictly by luck.  It was serendipitous.  And when I graduated from graduate school, I took a job with Shell.  I thought I was going into what I now know to be downstream, but it was actually upstream.  I was working for Shell for about three weeks, and I kept looking for distillation columns, and chemical processing units, and things like that, and there were none of itAnd gradually, it dawned on me that I didn’t go into the business I think I went into.  So, it was purely serendipitous.  It was actually a really good thing, tooSo, I have no complaints about it whatsoever.   
Then, during my student years, I did a lot of summer jobs with Turkish Petroleum; Shell; I went to Iran.  And then, I had one of the most important thing[s] happen: entering the petroleum [engineering school], I had the Shell scholarshipSo, when I finished, and then Shell said, “If you are interested, we can send you to graduate school. I said, “This is great!” and I went to Stanford.   
It’s a choice, because I changed my mind from medicine to mining to petroleum, but that is how I decided, really.  It was just a choice, not a planThe moment of the choice, yes?  That’s how I became really—entered the petroleum industryVia school.


'''KERR:'''
'''KERR:'''


Can you elaborate a little about how you got involved? What prompted it?  You know, was there a certain instance, if you will, that say, directed you to go upstream versus downstream or anything like that?
So the next question is: In what discipline in the industry did you work, and what drew you to that  
discipline?


'''LAKE:'''
'''KUCHUK:'''


I don’t think there was an instance that directed upstream versus downstream, as much as that it was just the proximity to where I was going to graduate schoolWhen I interviewed, I liked the people that was there, and gradually, I understood what the nature of the problems were.  I realized that I think we had better problems and better positions than I would have had, had I been in the downstream business.  So, it just kind of appealed to me, and it got to me after I started workingNothing before I started working, but afterwards, I realized I was in a good place.  
OK, so after graduation, I was a petroleum engineer, I worked a little on the well side, doing a little bit of mud engineering, what we call it todayAnd then, after six, seven months, I said, “This is too muddy. I went to reservoir engineering.  More mathematics, more—you know, you don’t deal with—anyway, so basically, I went to a little more theoretical side of the business, but that was the beginning of my graduate study at Stanford.  So, basically, I am a reservoir engineer, qualifiedAnd in this subset of that really, what I call well testing, formation testing, and reservoir management, et cetera.  These are the subset[s] of the reservoir engineering that I entered at the graduate school at Stanford.


'''KERR:'''
'''KERR:'''


So, maybe you can elaborate, Dr. Lake, on more the decision-making leading into going into engineering that then led to petroleum engineering, etc., etc.? It looks like you’re formulating an answer, so just real quickly, give me a second pause.
What drew you to the discipline of reservoir engineering?


'''LAKE:'''
'''KUCHUK:'''
 
How I chose to go into the profession that I’m in now was probably like most kids.  I talk to a lot of prospective Freshmen these days, and I see myself again, replicated in those kids.  They don’t know very much about what actually we do or even any engineers do, even if they have engineers in their family.  They don’t really know what they do, so they make a career choice, on the basis of what they think their strengths are.  In my case, I was good at mathematics, and I was kind of interested in chemistry, so the obvious choice was chemical engineering.  And that persisted through graduate school.  I frankly picked graduate school on the basis of the climate, but after I’d gotten into it, I realized it was the right thing.  It has a nice blend of chemistry, a nice blend of physics, and mathematics. 


'''KERR:'''
So, I came to the reservoir engineering, again, via school.  So, I came to the US first to learn English, and then I went to San Francisco to learn English, then next door to Stanford University, I went there.  They are really a reservoir engineering school.  So, I wanted to go to Stanford, that’s really how I entered the reservoir engineering. 


Which discipline within the industry did you work, and what drew you to that discipline?
And how I entered the subset of reservoir engineering was one professor named Hank Ramey.  He was the father of--at that time he was one of the most famous reservoir engineers; also in well testing.  So, I decided to do my Master’s thesis with him.  So, that automatically put me in, what I call, well testing.  So that’s how I really entered the reservoir engineering via graduate stu—you know, as a graduate student.  Then I went to well testing, which is a subset of reservoir engineering with Hank Ramey.  Which is—he’s one of the pioneers—he’s [a] deeply respected professor of our time.  He died ten, fifteen years ago. 


'''LAKE:'''
'''KERR:'''


I work as a reservoir engineer.  My discipline is reservoir engineering, and it was again, much directed by interest and commonality with backgroundReservoir engineering probably has the closest identification with chemical engineering.  Well, not probably, I know exactly that it did.  And so, I liked that stuff when I was in graduate school, and I was just totally surprised to find that I was doing something similar in…in…on the job, and liked it, as well. 
So, you are a world renown expert on pressure transient formation and well testingWhat drew you to this aspect of petroleum engineering?
 
'''KERR:'''


Can you discuss your research in Enhanced Oil Recovery?
'''KUCHUK:'''


'''LAKE:'''
Well, OK, first, you know, reservoir engineering, especially well testing, is an interesting thing.  We measure things at the wellbore, mainly pressure.  We interpret.  So this interpretation, you don’t see this and that.  This is uncertainty, and you have to make a decision [about the] things that you don’t see, don’t touch. 


Yeah, my research is loosely affiliated with something called Enhanced Oil Recovery, which is basically recovering the oil that’s left behind after say, primary and secondary methodsIt’s been a long history of that.  When I got out of college and went to Shell, there was a huge amount of effort devoted to that.  Particularly a technique called surfactant, or chemical, floodingBut over the years, the oil price has gone up and down and the interest in the technology has gone up and downAnd so, I’ve kind of gone into a little bit different areas, all still Enhanced Oil Recovery to me.  And one of them is something called Reservoir Characterization, which is basically trying to quantify the nature of a reservoir in the ground for the purposes of predictionAll of it has been more or less associated with numerical assimilation and more or less associated with predicting the success of the process.  It’s--recently, I’ve moved over into something that’s related to decision analysis or basically uncertainty quantification.  In my mind, it’s all enhanced oil recovery, though.   
The other part, what really attracted me--that’s why also I joined Schlumberger-- is making toolsMaking tools that can measureBecause when I was working for BP Prudhoe Bay, I was missing certain measurements, OK?  So, I had with Schlumberger, really, an opportunity to affect that: what we should measure.   
I was involved, a couple of tools today, the most successful tool of the Schlumberger.  What excites me: making tools, and then looking at those measurements, and interpreting themThis is really almost like a—of course you have to know how, the mathematics, this and that—but making things and measurements, and interpreting is very goodYou know, like being [a] doctor, you know, your patient comes, you look at that, you give them something, and you cure them.  And this is something really that excites me still [about] what I do, you knowTo make things and change things and to come up with something always new.   


'''KERR:'''
'''KERR:'''


What led you to your work, teaching at the University of Texas?
So, you are a world renown expert on pressure transient formation and well testing.  What drew you to that particular aspect, that particular discipline within the industry?


'''LAKE:'''
'''KUCHUK:'''


How I got to the University of Texas is kind of an interesting story, well, an interesting story to meI don’t think there’s ever been a person who has gotten a PhD that has at one time, thought, in a classroom, watched a professor perform, that didn’t think, ‘I could do that well. And so, that happened to me several timesI had some very good professors. I’d be happy to talk about themBut I had several others who basically could use a little preparation or something, and so it’s always been in the back of my mind.  I think it’s always in the back of anybody’s mind that gets a PhD. It might happen. 
Ok, so let me describe a little bit what is really pressure transient testing.  We also call [it] well testingOk, the formation testing and well testing is a matter of scale.  One is we probe around the wellboreThe other, we probe from the wellbore to say, a thousand feetWhat is this probing? We put pressure pulse; this pulse propagates in the formation and brings information back to us from the formation, whether there’s a false or some reservoir propertiesSo basically, the probing, like seismic, like sonic, you know, is suggested we call this pressure diffusion, and this probing the formation, and you get the measurements as a pressure, like a psi, and then we interpret them to really characterize the reservoir.


Now, many people viewed teaching as kind of a retirement occupation: I’ll get my career in the industry, and then I’ll go basically retire and teach.  It’s not that way at all.  In fact, my first three years at the University of Texas were far more difficult than any years I ever had at Shell.  So, specifically, what happened, was I got in contact with the University of Texas after I had been at Shell for five years.  I got an offer, and once I added up the money, the University of Texas offer was within $300 a year of what I was making at Shell.  These salaries tend to track up only so far, and later in the career, the salaries are very different.  The industry offers are much higher.  And so I thought, ‘Well, this is the time; it will never be this close again.’  So I made the move.  It was a good move.  Hard work, though. 
'''KERR:'''


'''KERR:'''
Fikri, would you discuss your work in horizontal and multilateral well placement?


That was good.  I think you can elaborate a little bit.  You said you had some professors that were really influential.  Perhaps you could discuss briefly what drew you to them?  You said preparation and such, you know, you realized, “oh my gosh, I could do this better than this person.”  We’ve all been there, so maybe you could talk about some of the influential people that drew you into the profession.
'''KUCHUK:'''


'''LAKE:'''
Ok, this is a good question: the horizontal well and multilateral well placement.  So, in about 1990, with the Austin Chalk and Canada, the horizontal drilling started, really.  Although, the horizontal drilling was first applied in Russia in [the] forties, but however, it was never commercialized.  With Austin Chalk, and in Canada, they start drilling horizontal. 


Well, there’s been, of course, in most people’s life, aside from their parents, it’s usually a teacher somewhere that’s their most influential personOccasionally, it’s a grandparent or something like that.  And it’s a curious phenomenon that’s occasionally remarked upon, but probably not as much as it could be.  I, like everybody, have had a number of very influential professors; a number of duds.   
In fact, in 1991, I was counting the number of wells in the few hundredsI entered that area this way: I told you I was working on Prudhoe Bay for BPAfter that, I left, and joined Schlumberger, but then I was called by my friendThey did some horizontal well--they did some well testing or transient well testing, and they said, you know, “Could you help us analyze the well, to interpret?”  At that time, I was at the research center, at the Schlumberger research center, and I had a few friends and we did a lot [of] mathematical solutions, and we collaborated with my friends in BP (in fact, we wrote a paper, “How Do You Interpret Information from Horizontal Wells?”), and then I was fascinated with the new technology, this really new technology.  In fact, at that time, I was counting every month, how many wells.  Until 2000, I had the precise number, how many wells.   


I was thinking about this just the other day, and I’m reminded of that book by Robert FulghamIt was titled, Everything I Need to Know I Learned in Grade School or first grade, I think it was.  And it was kind of like that because I reflect back on high school and the three things that I needed to know was how to write (and that was in high school—a very good writing teacher); how to type, believe it or not, was very helpful; and I forget what the third thing was, but it was those two things.   
So then, I told them, “Look, this is a revolution. This is a really big revolution.” I said, “I’ll count the number of wells until 50,000; after that, I give up.”  Actually, I had a plot, you know, time versus the number of wells.  But really, that was one of the most important revolutionsIn fact, today, if we have this shale gas, the allotment, thanks to the horizontal wells, multilaterals, plus the fracturing.  I worked for Shell many years ago, in fact it was my first job after school.  I was working in West Virginia, Morgantown, and this was just after the oil embargo[President] Carter put out of money, and then I really worked for a few years for [inaudible] Shell.  You know, we did not have horizontal wells, we only had massive fracturing, but the fracture was not staying open.  So still, the wells are better, but no way what we have todayYou know, the horizontal well in the shale play is a revolution.


When I went to Arizona State as a professor, there was a very good teacher there.  He impressed me so much, not because he was very polished, because he wasn’t at all, but what he was, was fearless.  When somebody would ask him a question, he’d give it a shot, and if he didn’t know, he’d say, “I don’t know,” and he didn’t mind being called out like that.  It was really good.  The professor at Rice that I remember the most is Dr. Harry Deans, who basically was the same sort of thing.  I mean, he was very clear in his presentation, but he was fearless.  He didn’t mind being shown to be wrong in the middle of class, which was good.
     
'''KERR:'''
'''KERR:'''


What were some of the important technological milestones in your discipline?
Discuss your work in horizontal and multilateral well placement and why it’s so revolutionary.
 
'''LAKE:'''


Some of the most important technological milestones, and you know, I was not involved in some of them.  Some of them I was.  But considering where we are right now in 2013, I’d have to say the widespread application of carbon dioxide flooding in West Texas, and that actually was prompted by something which happened many, many years earlier in the 1970s, when Shell and Amoco built a pipeline from Colorado to West Texas to supply CO2 for them.  It took a long time catch on, but it’s really caught on in a big way.  So, I think that’s definitely a milestone for us now. 
'''KUCHUK:'''


Most recently, the biggest milestone, of course, is hydraulic fracturing and shale gas and shale oil technologyI’m only just a little bit involved in thatWe are a lot better at understanding what’s in a reservoir than we used toAs I look back in retrospect, it’s incredible to me how naïve we were about the nature of reservoirsAnd so, we would do laboratory experiments, which are one dimensional and homogeneous, and somehow, even though we knew in the back of our minds that that was not going to be the way these processes worked in the field, we still thought it was true.  So if we’ve got eighty percent recovery in the laboratory experiment, we were expecting eighty percent recovery in the field. It’s just not trueIn fact, you should really divide by three to get the right recovery.   
So, why the horizontal well placement drilling, and later multilateral is revolutionary is in many respects.  One is, you know today, you can hit the oil play, you can stay within a few metersSecond, you know, you can hit the target, if there is a bypass oilYou are here, but you can hit the targetThe third is the most important partYou know, comparing a vertical well, which is six, eight hundred feet; now you have two thousand feet and the flow comes in this two thousand feet, not fifty feet.  So really, normally, the productivity or the rate, the flow rate is normally between a few times to ten times more in a horizontal well.  But the shale is the really revolutionary part. We would have not developed shale play today with vertical wellsNo way.  So, revolution in two sense[s]: with the one old application, what I am saying is for shale, that is essentialHorizontal wells, without it, you don’t have a shale play.
 
So that appreciation, I think is definitely a milestoneIt didn’t…it’s not a Damascus Road experience, it didn’t just sort of arrive out of the skies, but it has come to us, and I believe we’ve benefitted hugely from it in our current practice.


'''KERR:'''
'''KERR:'''


That was good.  Think back, though, a little bit more historically.  I mean, you’ve been in this business, what 20, 30, 40--
Fikri, what were some of the technological milestones in your discipline?


'''LAKE:'''
'''KUCHUK:'''
 
Forty.


'''KERR:'''
Yes.  So, these are really the milestones in my discipline.  One is, as I said, at an early age, I decided to become a reservoir engineer.  That was a really important switch from petroleum engineering.  But of course, we need all of this.  I’m not saying that one is better than the other, but for me, personally, that was very important. 


-yearsSome of the technological milestones you pointed out seem to be a little more recent even though we all know fracturing started when, back in the fifties or even the forties? And some of the technological milestones within your discipline maybe even earlier in your career. Is that something you can touch on real quickly?
Second, really interestingly, I was working on shale thirty years ago.  People now working on the shale they’re young people.  The average age is probably thirty-five.  And I think that was an important milestoneI made a good decision there, I enjoyed working, but at that time I didn’t see the future.  I switched back to petroleum, you know, the traditional petroleum engineering. 
And another really important milestone was joining Schlumberger because that enabled me to not only practicing reservoir engineering, but making tools that we need.  And I think that was really, as I mentioned earlier—OK--I was involved in the development of a bunch of tools that today, in the market, they are good tools. And those are really milestones.  


'''LAKE:'''
Another sort of milestone that has a few steps: one, I worked in research [for] eight years, then I went to operations, and that was a really good decision.  Initially, I wasn’t really sure, but it was a very good decision.  And then, after that, I was in operations.  I was in Dubai for twelve years, and then I was asked to come to Paris to, again, do well testing or pressure transient testing because Schlumberger was a little bit less active in those days.  Not very many people left.  So, I came back, and again, almost a new excitement. 


Yeah, there were some technological milestones early in the careerThe nature of our business is such that it’s not like Thomas Edison, saying that the light bulb turned on, and suddenly we’re going to do things differentlyWe’re very slow adopters of technology.  I think the last time I thought about this seriously, it looked to me, like basically, it takes us about eleven years to take a new invention, and actually make use of it in the fieldSo, when I first started, we were just in to the point, the so-called “plateau of productivity” of the business of horizontal wellsWe were just in to the point of understanding that we didn’t really get all of the oil out of the ground once we did water flooding, and so that made us think about other technology--and I look at what we’re doing right now, and I think it’s true—I think that the productive technologies actually took a long time to come to fruition.  I think it’ something we need to work on.  A little bit of effort on reducing the time from discovery to application.
You know, you are discovering—you know, what I’m saying—in fact, I’ll tell you something interestingIn my life, I worked on some topics four or five yearsNormally, I leave those topics.  I go somewhere else, and then later, I come back.  Sometimes, it takes much longer time because if you stayed for a longer time, basically, you’re just going around and around.  So, it’s better to take a new challenge, leave that (maybe someone else will contribute), and then later—actually I did this a few times—come backAgain, new mathematics, new technology, this and that.  All of a sudden, you start contributing againYou know, this really—to me, this is very interesting, personally, that’s why I worked on very many different topics, but I always find it’s a good idea, after four or five years, to do something else, if you have a choice.


'''KERR: '''  
'''KERR:'''  
What were some of the important technological milestones in your discipline?


How did CO2 flooding as a technological milestone change your discipline?
'''KUCHUK:'''


'''LAKE:'''
OK, so these are really the technical breakthroughs in what I had been doing, partially in my part.  You know, testing, formation testing, et cetera.  One is really, in [the] 70s [and] 80s, the pressure transient testing, or well testing had really advanced, especially with software, et cetera.  To me, that was [a] very important milestone. 


CO2 flooding actually had a lot of changes, some of them not even directly related to CO2 flooding.  Of course, the lion’s share of CO2 flooding is being done in West Texas, and when that became very popular, it essentially revitalized that area out thereAlso, it made us appreciate some subtleties about operations that maybe we knew before, but it was not in the forefront of our practiceFor example, we found out that we can’t on occasion pump producing wells by injecting CO2; that you could put enough pressure from the injectors to actually make the producers flow, and they don’t need to have pumping units.   
[The] second part, you know, we come up with, in [the] 90s, the introduction of wireline formation testing, especially to be able to take very good samples, downholeThis was really “the” milestone for technology[The] second part, another one is really, as I said, horizontal well multilaterals.  And I really benefitted greatly [with] high resolution seismic.  I think seismic--it brought importance to reservoir characterization.   


We found out, and I think that all these things were pretty obvious--we found out that you can recycle CO2, so you didn’t have to buy huge quantities of it because much of it could be recycled once it’s producedAll of that improved the economicsIt’s just accumulating experience in fields and understanding the nature of the heterogeneity, and understanding typical performances that we’ve benefitted from tremendously.  And I think it’s helped us benefit in other types of Enhanced Oil Recovery.   
Third one (really last one, not third one).  Last one is really, today, shale oil and shale gas development.  To me, this is, you know, amazingThis is technology beyond our imaginationNot only that, but gas price has been cheaper than ever.  And that is really two important technologies: one is, as I said horizontal multilaterals; second, multistage fracturing.  These are revolutionary, really incredible innovations.  …So, at a given decade, they introduce one or two really important things.  Some of them, they really change the landscape.   


For example: polymer flooding, which is very different than CO2 floodingWhen we compare the performances of a polymer flood with the performance of a CO2 flood, the differences are pretty glaring, and the differences were always present, even in the laboratory experiments, even if we weren’t very qualitative about itSo, the fact that you understand how things work in the laboratory helps you understand how things work in the fieldIt doesn’t help you predict, particularly, but it does help you understand.   
19:27-21:29  First, let me really explain what…wireline formation testers are.  So, these are wireline convey or probe or packer without modules.  You take samples—first you go down the payzone or the possibly-bearing formation, you have [a] look, and then, what we do, is we take sample[s], a bunch of samples around the wellbore , verticallyAnd we measure the pressure, and we conduct some short pressure tests, build-up, draw-down.  And we really—this is important for getting, first, [an] idea about [the] productivity of the well.  Second, what kind of fluid is there?  Heavy?  Light?  Gas?  Or how much water is closer to you.  And today, this is really on of the essential tools.  Although these wireline testers were introduced in the1950s, until [the] 90s, we could not achieve a good sample.  We couldn’t take [a] sample.  If we [took] a sample, we [would] end up with some water, some drilling mud, this and that.  In [the] beginning [of the] 90s, all of the service companies, including mine, we do really have a good sampleAnd [the] sample is important because that is …what you are going to have, what you are going to produce; how you are going to refine, you know; if you have condensate; what kind of facilities you are going to haveSecond, as I said, is that you get [a] good idea about reservoir pressure and the productivity of the well.   


So, the third area that we seem to be benefitting from is in chemistryIt’s been a long time coming, but the surfactant flooding technology has vastly improved, much better surfactants, and I think that in the near term, at least in the enhanced oil recovery business, that’s going to be a major feature, in probably the next ten years or so.   
21:30-23:41  Why is high resolution seismic important is—you know, seismic is like [an] x-ray, you know, of the body.  So, high resolution seismic gives a lot of good information about the skeleton of the reservoir, the structure of the reservoir.  Where are the faults.  Today, luckily, we can even see some of the fractures, and you know, the faults are fractures if they are—you know, they could be [an] obstacle to flow, or they could be [a] highway to the flowSo, you know, the high resolution seismic brings this information, particularly today, about fracturing, fracture corridors, this and that.  I think, as a reservoir engineer, if we don’t know the structure, we don’t know [the] skeleton of the reservoir, we cannot model it.  Modeling comes with high resolution seismic [and] good geology.  Without geologists, seismic—you know, you have an x-ray, but you don’t have a doctor to see what it is.  Anyway, so really, today, all of the money saved with high resolution seismic, because in the drilling, you can stay in the pay zone.  In fact, some of the companies today, if they are going to have…expensive (inaudible), you know, offshore and this and that, they will not drill without seismic.  And this seismic is high resolution because you want to place the well, we are talking about a few meters, four meters, and to me, the essential—to drill where you want to drill, and also develop [a] reservoir model, a reservoir simulation.  You can manage the field much better.  Anyway, this is really important—high resolution is really important; almost like you have a good map in your hands to walk in the reservoir.   


It’s ironic to me because we for years, we viewed enhanced oil recovery as unconventional recovery, and then suddenly, they start drilling horizontal wells, and they fracture the wells, and they call that unconventional recovery, and now we’re conventional recovery.  So, maybe that’s the way it should work: it starts laboratory, becomes unconventional, and then the next thing you know, it becomes conventional.  And I think if I can hang on a few more years, I’ll see the whole cycle.
 
'''KERR:'''
'''KERR:'''


What were some of the technological challenges that you faced in your career?
So, Fikri, what were some of the technical challenges you faced during your career?


'''LAKE:'''
'''KUCHUK:'''


Yeah, the technological challenges for me has always been trying to understand what’s between wells; what’s the nature of the reservoir between wells.  It’s some things that we worked on, and actually got a patent on one of them was a little device called a mini-permeameter, which allows you to measure permeability on very small pieces of rock, and even you can do it in outcropsTake it out to the field and quarries and things like that.  So, you can make thousands of non-destructive permeability measurements, and all of those measurements taken together leads, of course, to a statistical analysis, which ultimately leads to a better understanding of what’s between the reservoirs.   
OK, in my career, you know, it goes many years, but [the] first really technical challenge I had [was] when I started working in Prudhoe Bay.  In Prudhoe Bay, you know, you have wells; they are all deviated because you drill the wells from a single platformAnd then, during the test, when you test, you cannot shut in [the] well more than twenty-four hours because [the] wellhead start[s] freezingThis is in, you know, [the] North Slope.  So basically, you know, I was doing well tests for BP, and this twenty-four hours was very short, and most of the test, itself, [the] signal, itself, [is] dominated by [the] well, itself.  So, the well[s] were in reservoir formation camps.  So this was, of course, I struggled there. 
Later on, [when] I joined Schlumberger, I came up with some solutions, that was really the challenge.  Later, I told you that the sampling, good fluid sampling from the reservoir, was not possible before [the] 90s.  So I worked in this, too, with a bunch of good friends.  Really, we solved that technical challenge. 
There are many other challenges today.  One of the challenges still is there; [it] remains to be solved.  Of course, we did it out of development, it’s really characterization of fractured reservoirs, particularly carbonate reservoirs.  The last challenge, to me, is still I believe, most likely, that we still don’t understand how the flow gas is coming or oil is coming into fractures from shale reservoirs.  We understand that it’s coming from [the] reservoirs, but I don’t think still that the flow mechanism or the principle of flow, et cetera, is not well-understood.  I think that challenge will stay with us a number of years.  Hopefully, some contribution will come, but today, it’s a challenge, a today challenge.


Now, recently, we’ve worked on something called a capacitance resistance model.  I don’t know exactly if this is going to take off or not, but it basically involves analyzing rate data from producers and injectors, and trying to infer the nature of the reservoir between those wells; on the correlation between the fluctuations of the two.  So, it’s promising, and I think that will look forward.  In a lot of what I do, reservoir characterization is a huge challenge, a huge challenge to see that the technology works. And then it turns into an even bigger challenge to see how that technology can turn into money, or turn into oil and tank.  I think that’s where we are right now.
'''KERR:'''  
 
'''KERR:'''
With regard to the technical challenges, how did you overcome these challenges, specifically?


Within that same question about technological challenges that you faced in your career, what challenges or problems in Enhanced Oil Recovery does you research attempt to address?
'''KUCHUK:'''


'''LAKE:'''
OK, these challenges basically, [there are] two of them.  We said one is, actually, testing the wells in Prudhoe Bay, and the signal, itself, was dominated by the wellSo, we come up with two solutions with timeOne is, while testing, we also measure the flow rate, and that is become possible with the simultaneous measuring of the flow rate and pressure together, and that is simultaneous measurement, OK? 
 
The second part is what we call downhole shut-inYou flood the well, to reduce the effect of the well itself, you do downhole shut-inAnd that is, really, two possible solutions, and today, downhole shut-ins [are] used very widely to cut the effect of the wellbore, itselfWe call it wellbore storage, [that is the] technical jargon, and that really solved the problem.  
Yeah, the challenge that my research attempts to address is the one of being able to predict what will happen when you take it to the fieldAnd that, of course, involves a substantial amount of reservoir characterizationIn recent times, I think basically, I’m trying to understand the field data that comes through.  I think there’s a lot to be learned from that.  Companies tend to do field tests and field projects, and they study their own dataSo, I’ve been trying to actually synthesize it across several fields and several processesI think that will be broadly beneficial for everybodyMaybe not specifically for one field, but I’ve gotten a pretty good idea of how these process will work in the field as opposed to how they should work, and that’s been pretty revealing to me.


'''KERR:'''
'''KERR:'''


What do you consider the most important contributions you have made in your career and why?
OK, so, I understand that you’ve published more than a hundred fifty papers on a variety of subjects pertaining to challenges in reservoir description and dynamics, such as fluid flow in porous media, production logging, wireline testers, horizontal and multilateral well placement and performance, water conformance and control.  So, here’s the question:  Which of these challenges was the most interesting or difficult for you to overcome?


'''LAKE:'''
'''KUCHUK:'''


Well, my most important contribution—the nature of our business is such that there are not individual contributions very much anymore.  I would definitely have to say that the mini-permeameter that I referred to earlier was a contribution.  Myself, and a colleague, and several graduate students worked on that.  But I think, significantly, the most important contributions that I’ve made have been the books, the textbooks that I have written.  I’ve written four books: one on geochemistry; one on primary oil recovery; one on geo-statistics; but the one, the salient one, the most significant one is a book I wrote in 1989 on enhanced oil recovery.  I had no idea that it was going to be so influential.  It took a long time for it to become influential, but it is there now, so I think that would have to be considered the significant achievement of my career, is the textbooks.
I didn’t get the, I didn’t…can you repeat the…?


'''KERR:'''
'''KERR:'''


You have written “the” book on Enhanced Oil Recovery. What led you to write the book, and discuss the impact your book has had on the industry.
OK, so you’ve published a number of papers, specifically on  fluid flow in porous media, production logging, wireline testers, horizontal and multilateral well placement and performance, water conformance and control.  Which of these challenges was the most interesting to you or the most difficult to overcome?


'''LAKE:'''
'''KUCHUK:'''


So, the books that I wrote have all been for one audienceIn fact, it’s surprising that they kind of get broader circulation, since I have one audience in mindAnd basically, the audience is our graduate classes at the University of Texas.   
OK, basically, all these, of course, we have many challenges, and I worked on many different areas because when I see a challenge, I go start working.  Really, the most interesting part today, where I am working is really, again, the characterization of carbonate reservoirs, and achieving advanced well test interpretation using the geology maximum.  Today, we are not there yetAnyway, this is part of the integration.  Integration is a lot more challenging because integration needs different disciplines, and no heroes.  Everybody has to contribute. 
Anyway, really, again, today, I have two challenges, as I saidOne, as I said, is the shale gas, I[‘ve done] a little bit of work on it, and [the] second part, you know, the  reservoir characterization carbonate. The way that I work is…I work on many things, I don’t publish, and then, when I am ready, I finish the work and publish.  What I am doing, there is one topic I’ve been working on for five years, still is cooking, yes?  


So, [[Enhanced Oil Recovery]] was for a graduate class, which means there’s a lot of general material, but there’s a lot of highly specific mathematical procedures.  And how it gets more broadly circulated is a little bit of a mystery, but it’s also a little bit of a history thereThe book was originally written for Prentice Hall, and—more than twenty years ago—and it was just about the time the oil price collapsed for the first time, and everybody lost interest in enhanced oil recovery, and Prentice Hall basically said that we’re not going to publish it anymoreAnd so I said, “Well, if you’re not going to publish it, can you give me the publication rights?” Which they did, and the book was just kind of there for our graduate students for years.
Anyway, so basically, I think, you know writing papers is communicating with your audience. So basically, that is, to me, writing papers.  And I write papers two ways: one is I find something really theoretical; other math, et cetera, I find other journalsThen application (inaudible). I come to SPE journals that I have an audience to communicate because this is more applied, so that’s really how I do my writings.  Other journals are more mathematical, so mathematical journals, and then SPESPE, to me, of course I have, if I may say so, a greater audience at SPE, so that’s what I write.  I write a lot of papers, in fact the day after tomorrow, I have one paper to present before my friends and my audience of SPE.  


And then, when the oil price restored itself in the late 2000s or 2010 or so, it got real popular.  So, it’s kind of like writing something that people ignore for years, and suddenly gets popular again, and that’s what’s happening.  Now, I have to say that I kind of publicized it a little bit by teaching the class I taught yesterday, the Enhanced Oil Recovery Class.  I’ve done that for thirty years or so.  Probably a hundred times over the years, and in the class yesterday, we actually made available copies for the class to buy, and they bought some.  It was pretty cool.  Pretty cool.  So, it’s all for our graduate classes.  I’m not writing a book for broad circulation or things like that.
'''KERR:'''


'''KERR:'''
What do you consider to be the most important contributions you have made in your career to the petroleum engineering industry and why?


Discuss the impact your book has had on the industry.
'''KUCHUK:'''


'''LAKE:'''
So, you know, I’ve made a number of contributions.  You know, I think the most important contribution that I made is I hire a lot of young people, I train them, and they work for Schlumberger.  I have been doing this since I joined the company.  Really, to me, that is as important as my technical contribution[s] or scientific contribution[s].  Hiring people, I do every year—sometimes I do more, sometimes I do less.  [I] train these people and stay with them until they mature.


I believe the impact my book has had—this is going to sound a little contradictory from what I said before—was, it does have a lot of math in it.  And so, going into companies that have a lot of technology, and have a lot of technologists, and have research, they have a source there where the equations somehow were solved by computer programs are actually there.   
Second part is of course, technical contributions.  One, you know, two years ago, I published a book with a few friends of mine.  I think that book is…a very good book for pressure transient and wireline formation testing.  Unfortunately, [it’s] a little bit [on the] theoretical side, but it is [a] very fundamental book.  And with time, I think I will overcome that, I am going to write another one—[a] practical one! 
So, the technical part of contribution, first, you know, the very beginning, I did contribute an understanding of flow in the shales—that was early.  Later, I contribute[d] the interpretation of pressure and flow rate from the wellbore, and I also contribute[d] both interpretation and making tool, wireline formation testers.  And then I did very interesting field research with many people in Ghawar Field in Saudi Arabia.  We did the simultaneous measurements of electromagnetic, flow rate, pressure, and all the logs, et cetera, and this is all really very detailed characterization of the formation.  And this was research work, and I’m hoping that in a few years, people will start doing it.  Basically, that is some of my main contributions.  And one more thing!  Actually, interpretation of well tests from horizontal wells.   


One place I went, this was in Venezuela, and I was teaching a class, and one of the guys looked up, and he says, “Well, at last I know the equations we’re solving!”  So, I think that’s part of the reason for it being. The other thing is—excuse me—the other thing is, when I wrote the book, I knew that the oil price was heading down, and I knew that enhanced oil recovery was going to be in trouble.  And so, I deliberately started putting more broad things into it.  So, the first half of the book is really a reservoir engineering book.  Tried to have the same level of detail as I had before, but basically tried to have a more broad appeal.  I’m still a little surprised that it has a broad appeal, because it still is an enhanced oil recovery book, but it’s broader than the title suggests. 
'''ESDORN:'''


'''KERR:'''
Can you maybe, especially in Saudi Arabia, you were talking about the, I don’t know, I didn’t quite catch the name of the field?


Discuss the invention of your mini-permeameter
'''KUCHUK:'''


'''LAKE:'''
Ghawar.  Ghawar Field.  Ghawar.


Well, the need for the mini-permeameter actually came from some observations about enhanced oil recovery.  And even though we were fairly primitive in technology several years ago with EOR, it was still obvious that we could get almost a hundred percent recovery when we did laboratory experiments.  And then after we had done a few tests, we realized we were getting ten percent recovery, for example, and that’s a huge difference.  You know, that’s the difference between a successful or an economic project and an uneconomic project.  And so, as I began looking at it, many of these things, we kind of knew were there, but we never had the impetus to go after it.  It was apparent that permeability was an important quantity in the success of these projects, and it was apparent that it changed a lot in the field.  Changed, basically, three orders of magnitude,  a fairly good volume in a reservoir.  So, it became apparent that we needed to study permeability.  It also became apparent that a few samples weren’t going to do it.  You had to have thousands of samples to make broad based observations and conclusions about it, and it would be nice to actually be able to take these samples from an outcrop, a piece of rock on the surface. 
'''ESDORN:'''


Now, in principle, you could go to this outcrop, and you could core these little two-inch cores out of the outcrop.  Many of the outcrops turned out to be on federal lands, national parklands.  They were unwilling to let us drill thousands of little holes in their outcrop.  Plus the fact that it became apparent that almost all but the most athletic University of Texas students could not carry that much rock back to the laboratory.  So, we need to make the measurement right there, on the spot.  I actually saw something that was a little bit like this in a laboratory in Dallas at Arco.  And I watched it, and I said, you know, there’s two things that we need to make this work.  One is, we need to make it portable, so that somebody can carry it on their back, rightAnd the other thing we need to do is mathematical analysis so that when we take the measurements, we actually get something that’s consistent with the other measurements, too.
OK, I’m going to have you spell that later, but can you talk about why that worked there, and why that was an important contributionJust for anybody who isn’t familiar…


So, we did that over a period of years.  A student, David Goggin, worked on the theoretical analysis of it.  Very elegant piece of work.  Other students worked to compress it, so that we used SCUBA tanks, for example, or something like that, and flow meters, so you could take this thing, and put it in a backpack, and take it out to the outcrop.  You wouldn’t use it—it wouldn’t measure things—while it was in the backpack, but you could take it out, and set it there, and make the measurements.  So, you would carry it back to the car with you a thousand or ten thousand measurements.  I have to tell you, it’s world-class boring to do it, but at least you’re not carrying a ton of rocks back to the car.  And so, that helped a lot. 
'''KUCHUK:'''


We confirmed the variability of it, the permeability.  We confirmed the consistency of its measurement with other techniques.  We confirmed that there was a correspondence between the geologic descriptors, the things that geologists measure, and the things that engineers measure: the rock typeWe confirmed the usefulness of statistical procedures in measuring continuityWe determined a difference between sort of a random fluctuation of permeability and a correlated fluctuation of permeabilityAll of these things were very useful and very insightfulI—what I’m about to say, I’m not sure is absolutely true, but of course, geologists have studied outcrops for centuries.  I think what we did was the first engineering outcrop study.   
The work we did in Ghawar Field was a joint research work between Saudi Aramco and SchlumbergerSo why that is important is Ghawar is one of the largest field[s]You know, estimated reserve is 120, 110/120, maybe more, billion barrelsOne of the most largest field[s]—I think if I still remember, it may produce maybe five million barrels per dayIt is a gigantic field, you know, an incredible field.   


We studied outcrops in the Algerita Escarpment in West Texas; basically just sent students out there with the mini-permeameterWe studied a lot, an outcrop in northern Arizona, called the Page Sandstone, very close to Glen Canyon Dam.  For those of you that’s been there, you can see this outcrop at about angle 89 in the visitor’s center at Glen Canyon Dam.  And then the last thing that we did was, we had all these grand and glorious conclusions for that specific outcrop, and so we began to wonder if other outcrops had the same sort of conclusions as that one did.  And the last time that we did it, we took another student, Mark Chandler, and his summer job was just to tuck the mini-permeameter in the back of his car, drive all over the American West, and whenever he saw from the road an outcrop that looked right, and he get to it without being shot, he would just go over there and make some measurements to see if they were the same as at PageAnd they wereAnd it was very influential and informative.   
So, I was in the Middle East for many years, I did a  lot of joint work with our clients in the Middle East, but this was really the—it took a few years.  I didn’t work on it full-time, but this is a very detailed workYou know, we come up with new, completing the well, putting electrical array in the well, putting pressure sensors, and developing, you know, whole new technology [that] had never been applied.  And while I am lucky that, you know, the Saudi Aramco—I am thankful that they give the well to work on, and I think this work is going to be important as time passes because basically, it gives a good idea [of] what is recovery factor, what is remaining oil.  You know, this was first, but as I said in the Ghawar—huge field—you know, I think Saudi Aramco understanding the recovery factor, et cetera, et cetera, I think is crucial for them.  With time, I am sure this work is going to come forward, but this is nothing new to me.  Most of these things I have done ten years ago and today is currently being practiced.  So I really don’t worry about whether my work later will be applied or not.  I’m [an] optimist, all the time an optimist, and time [has] showed me that other work I have done, and later is picked up by the industryOne thing I don’t do well [is] the same thingI do the work, I leave the space for other people to contribute, I may go back.   


I think the very last thing that we did on it, we commercialized it and had a company make it in Tulsa, was we began to look at the so-called effect of anisotropy on permeability.  We had used these little tips that were circular to measure the permeability beneath it.  We started  mashing the tip down so that it had an ellipsoidal shape, and then, when you measure permeability on the same piece of rock and turned the tip, if there was anisotropy—and there was—you would see it in the measurement.  So that turned out to be pretty good.  Now, there have been a lot of other people who have used the idea since then, but I like to think that we were the first ones that did it.
'''KERR:'''


[Audio break]
What were some of your contributions to the theory and technology of formation and well test interpretation?
 
'''KUCHUK:'''


Oh, well, the outcrop studies, of course, were like glorified camping trips, without the campSo, the Page Sandstone outcrop—I had a colleague in Geology who helped us.  This was Gary Kocurek, and he identified the location.  And their idea of a geologic field trip was basically, you throw a bedroll down on the ground and you know, out in the open, you just sort of sleepAnd I said, “This isn’t going to work.  First of all, it’s in a national park, and second of all, there’s a very nice hotel, you know, four miles away.”  And so, we went out there to do it.  It was in a national park, and so we could only do it in the winter.  This was January in northern Arizona.  It’s fine, the weather was really, really goodThis was the most luxurious outcrop study that he had ever participated in.  As time went along, I stopped going on studies.  I would just send students, and sometimes, there were some pretty serious disagreements about what to measure, and, you know, the relevance of the measure, and I wasn’t there to adjudicate itSo, I would hear back these stories about how one student wanted to throw another one off the outcrop or something like this because of differences in agreement.  I was horrified at first, but then I thought, ‘Yeah, you know, this is evidence that they’re really into it. You know, if they feel passionate about it that they’re about to come to blows, OK.  That’s the sort of thing you want from a graduate student.  Everything worked out in the end, though.   
OK, my contribution for well testing is mainly on the interpretation part, and second part is measuring the flow rate accurately, downholeThat can be used to interpret pressure data much better. Second part formation testing, really, I was involved developing the tools, and interpreting the signal that is coming from the tools.  I think these are—you know I have done that—in fact, I was involved in developing the software, et cetera, et ceteraAnd that is—both of them really—in well testing [and] formation testing—both ha[ve] two aspect[s]One is developing the tool (or part of the group, which is developing the tool)Second, you take the measurements from those tools, whether it’s wireline formation test or well test, et cetera, and interpreting them.   


'''KERR:'''
'''KERR:'''


How has your research in reservoir characterization affected the way the industry approaches recovering oil and gas from the reservoirs?
So, I have a question, what was the impact of these contributions on the petroleum engineering industry?
 
'''LAKE:'''
 
Yeah, I think the reservoir characterization research affected the way people approach oil and gas by making our ideas about reservoirs more sophisticated.  Now, you understand, I was part of this effort, but there were a lot of other people that had contributions, and many of them much more significant than mine.  But, we have stopped trying to imagine that when we do numerical simulation of reservoirs that the reservoirs are homogeneous.  So, we’ve been putting in various types of heterogeneity, and the disparity between laboratory recovery say is ninety percent, and field recovery is say, ten percent.  That disparity still exists, but it’s not like it was.  It’s now maybe the difference between say, forty percent and ten percent.  There’s still some work to be done.  But, I think, overall, we got the idea across that heterogeneity was important, heterogeneity should be part of your simulation study, and although it’s difficult at times, we should have a broad based team to work and understand these things.  So, it comes back to the issue of predictability.  I’m not terribly enamored with the notion of predictability.  What I am enamored with is the notion of understanding.  So, I’m perfectly happy with the technique that tells you what should happen in a general way, as opposed to a technique that precisely predicts the answer.  It’s an interesting question, philosophically, as to whether understanding leads to predictability, leads to good practices.  I’m not sure I can actually make the case, but it certainly is a lot better than imagining you could lead to good practices without those other things. 
 
'''KERR:'''
 
What do you consider the most significant changes that occurred in the industry over the course of your career?


Well, the most significant changes over the course of my career of course were precipitated by events.  For me, the biggest event was the 1973, I think it was ’73 Arab oil embargo.  When all of a sudden, we didn’t have plentiful gasoline, there were gasoline lines, and that was the year I started working for Shell.  We all went back on Daylight Savings Time in the middle of winter, and I remember going out for my morning coffee break when it was still pitch dark outside, so the realization came home, and I can say in a lot of this it was knowledge, but the realization came home was that we were no longer self-sufficient with respect to producing oil. 
'''KUCHUK:'''


One of the first SPE conferences I went to, there was a palpable sense of gloom in the air, that basically, we were declining in oil production, we were importing more than half of the oil, and what to do about itThat led to a discovery of—well, a rediscovery, a re-importance of enhanced oil recovery, the idea that you get more out the old fieldsAt the same time, though, in doing these studies, oftentimes we realized that there was more than we thought to begin with, and so, the so-called reserve growth came onAbout that time, there was maturation of horizontal well technology, and over the years, we realized that that actually would improve the ultimate [unintelligible] as well.   
So, my contribution in the theoretical part [was] basically developing equations, solving what I call partial differential equations, diffusion equations.  And, many solutions that I developed over the years, they are used by commercial software.  OK?  Many of them.  And some of them of course [are] used by Schlumberger software.  For wireline formation tester, this is exclusively for Schlumberger software, and most of the solutions I developed not myself, [but] with a team, you know. Some of them, we did together.  So that really affected, you know, correct interpretation, in getting relevant reservoir parameters. 
For horizontal wells, I developed maybe tens of solutions for multilayer reservoirs, reservoirs with folds, and you know, fractures, and fractured reservoirsSo, injection, well testing, et cetera, these are—some of them really—the contribution of the interpretation and developing the solutionSo let me, a little bit, elaborate that.  You can write mathematical solutions, given the problem, the well test problem, but that’s not interpretationInterpretation is taking that solution, fitting the signal; second is getting characteristics of that solution.  What is characteristics?  We call flow regimes.  You know, basically, certain well fractures, et cetera, behave [in] certain ways.  When you look at the signal, it’s important to recognize that behavior, say, “Oh! Well, this is a vertical well, crossed by a vertical fracture.  The fracture has, you know, very large conductivity.”  So interpretation is that.  Developing solutions is important.  I did that, but I also did the interpretation.  Basically, when you look at the signal, you characterize the signal in terms of what we call flow rate regimes.  There are many of them, they come and go.   


So, the significant event was the Arab oil embargo and subsequent things, and that made us think more about getting more oil out, made us think more about how much was there, and made us think more about exploring, and then everything else kind of fell in that directionIt was, you know, in ’73, there was a sense of crisis about thatAnd now, we almost find ourselves laughing at the notion of peak oil, but in ’73, it was very realIt was, “we have to do something, and we have to do something now. Now, it’s not going to be very fastIt’s eleven years to embrace technology, so we’ve got to gear up something, so it comes to fruition in enough time to be significant, but at least enough time, also, to develop it well.
And during the interpretation, especially when running the tests, it’s important that you see them and you are expecting [them].  If you don’t see them, maybe it’s something wrong with the measurements, maybe we are dealing with some different reservoirs that you’re not told about it.  So, anyway, so interpretation, really, I did both part[s]: geological development of solutions, you know, the mathematical equationsIn fact, you know, I wrote one paper, the paper is about forty pagesThe text part is probably two pagesThe textThe rest is equationsBut that's not interpretation, but to do the interpretation, I needed that.


'''KERR:'''
'''KERR:'''


Others.  Let’s think of a couple of others.  Significant technological changes that occurred in the industry over the course of your career
What do you consider to be the most significant changes that have occurred in the industry over the course of your career?


'''LAKE:'''
'''KUCHUK:'''


Well, other technological changes, or other events that occurred in the course of my career. It seems like so much of what we have been working on and our emphasis has been tied to fluctuations in the oil price.  So, after the Arab oil embargo, there was, in the early 80s, of course, a collapse of oil price, and that changed our attitude about many things, if not what we were working onFor example, and I still think we’re digging ourselves out of this, as well:  all of the major companies, and many of the not-so-major companies had research laboratories, highly sophisticated research laboratories—people, wonderful scientists that did great workA lot of it was centered around enhanced oil recovery, and when the price collapsed, the enhanced oil recovery virtually disappeared in many placesAs did the research laboratories.  So, in the oil industry now, there’s only one or two really research laboratories that are called suchSo, that collapse in oil price was highly significant.   
The significant changes that happened in the industry in my career is basically one: disciplines come together, what you call integration. And today, really, I know more geology than I used [to] because that is an essential part.  So that is really…you know, I started in the 70s, 80s, most of the time, that is what we know.  We know we have a domain, what we knowLater, with integration, we start knowing other things, not only myselfThat is one of the big changesYou know, we have friends, geologists, et cetera, et cetera, now we understand betterI think that is the important changes.   


It was also highly significant to our student enrollmentWe went from a thousand, over a thousand students in I think it was the Fall of 1982 down to about a hundred twenty-five students a few years laterSo, it was a huge, huge changeMost recently, with the oil price restoring itself, it seems like the situation is actually, it’s kind of like going through the past history and multiplying it by minus oneIt seems like everything that was going down before is now coming up again.  So, our student enrollments are there, there’s more emphasis on technology, enhanced oil recovery has gotten a new lease on life.  So, it’s frustrating for technologies to see how things you think are interesting problems can come and go, but at the end of the day, it’s the way it should work.  I mean, it’s basically an industry that’s in it to make moneyThey’ll use technology when they think it will make money, and they will de-emphasize it when they see there’s no future.   
Second is really diversityDiversity in the oil companies, basicallyFirst, diversity in terms of nationalities, and also diversity in terms of genderYou know, today, really, we have a lot of very, very good female engineers and scientists in the oil industryThat was not the case, OK?  And I think this was a really—for industry, it is a really great achievement, and in fact, if you, in the 70s, even if you go to the Middle East at the well site, you see very few nationalities.  Today, you see the United Nation[s].  I think this is an important changeI think, ok, these are the really important change.   
 
Second is really the oil industry, I think today, probably the usage of the new technology, it is much wider than we thinkYou know ten, fifteen years ago, I went--I was in Russia.  I was giving a well test school for one week.  A lot of Russian engineers—and then I talked to them, I told them they are using 50’s well test interpretation technology is what we had at that timeBut today, even if you go to any place, whatever technology is used here in Houston or New Orleans, similar technology is used elsewhere.  But this is a really important change.  That was not the caseYou know, technology was used a little bit and was dominated by certain nationalitiesToday, I think this is [a] great achievement for the industry [to be] able to take the technology to wherever you want.
Well, the ups and downs of any technology in our business, of course are tied to price, and that’s a pretty first order consideration about tie.  But it also is tied to the degree of optionsSo, for example, a company has a lot of opportunity for enhanced oil recovery, maybe ten or fifteen percent on their money, but they have an option also to go overseas, and make fifty or seventy percent on their money, or they have an option to try a new exploration plays, and things like that.  So, it makes more sense that you would go to the one that had more rate of returnThe EOR world these days, has devolved over into a technology that is largely practiced by smaller companies, and not practiced by major companiesIt’s one of the ironies of this business is that the Shell and Exxon, and Chevrons of the world spent literally billions of dollars developing EOR, and when the oil price went down, they gave it up.  And now, it’s the midsize companies, who are not so midsize anymore, who are benefitting from that technologyFunny, isn’t itThe very companies that spent money to develop it, other companies are benefitting from it.
Of course, SPE has an important role [in] that because maybe you don’t remember, [but] in the 80s, 90s, et cetera, SPE [had] a lot of technology SUMMITS for meetings in China, Russia, this and that.  But today, they are having technical meetings, OKSo basically, this is a great achievement that we are now able to take the new technology anywhere in the globe and beyond nationalities.    


'''KERR:'''
'''KERR:'''


Not unusual.
What do you consider some of the biggest challenges facing the industry are in the future?


'''LAKE:'''
'''KUCHUK:'''


You know, I think you’re right, actuallyIn a business that has big fluctuations in the commodity prices, I bet that’s a pretty common pattern.  I don’t know of any other business that has such fluctuations in commodity prices, but I suspect there are.   
What are the biggest challenges we will face as the oil industry in the future?  Some of them are environmental, ok?  So basically, we have to solve this, you know, the carbon problem, and I think the gas is contributing immensely.  Carbon production of the US is now is the same as [the] 90s, which is a real achievementBut still, we have other politics to deal with, but politics is—not the negative sense.  We have to deal with politics, that’s life.  Of course, eventually, science will, you know, overcome that.  But I think that the switching from—mostly to gasVery important challenge, and I think, you know, when we switch, when we make that switch--still, you know, we need oil, for sure, for many other reasons, but I think the big challenge today, going more and more gas based, more green based energy consumption.  That’s a big challenge.   


'''KERR:'''
Of course, now the gas has its own challenges, like the problem of having enough water when you are doing the fracturing.  That’s a big challenge.  So as an industry, I think we should come up with something that use[s] the least amount of water, reuse, re-treat, et cetera. 
Another big challenge [will] be how we are going to produce remaining oil.  There’s plenty [of] oil, actually.  You know, if people ask me, you know…we have plenty [of] oil.  Some…is in produced reservoirs, and of course, we call that today EOR [Enhanced Oil Recovery], all those things.  I think this is just the beginning.  The challenge is there, and I think that if I summarize the challenge, producing the remaining oil, which we call EOR; producing gas and oil from shale reservoirs.


So, companies do all this exploration research, they find the oil and gas, they spend years developing it, and then they abandon it when they think they have gotten the economic value out of it.  And then some companies spend more money, then, doing further enhanced oil recovery, while others say, “we’re abandoning it,” and other companies will come in—is this what you are suggesting?  Other companies will come in and exploit, if you will, the research and development and the effort put forth, and then they’re gone to another project and then another company comes in and does further enhanced oil recovery?
[Audio break]
'''LAKE:'''
 
Yes, that’s the natural sequence of things.  The natural sequence of things—the observed sequence of things that I have seen is it’s almost like moving down the food chain.  So, you have a nice, good reservoir here that produces a huge amount of oil, and gradually, it doesn’t produce, and your company, your large company, which could afford to develop it, now is looking to sell it.  It’s not like they’re losing money on it, it’s just that there are other opportunities available.  So, they will sell it to a somewhat smaller company that has a smaller overhead, different technology, and they’ll take the price again, take that same path again.  So, it will move down from majors to midsize to independents to small companies, and at the very end of it, they’re abandoned.  Now, relatively few number of reservoirs are absolutely abandoned, but they do move down this chain. 
 
One of the reasons that they’re able to do this, (and this is an SPE plug) is because we have such a strong tradition of publication in technology dissemination, and the SPE’s almost a hundred percent responsible for it.  So you can see what the big company was doing in the field that you are thinking and you can see how much of that you can use, and things like that.  So, the technology—there’s a lot of secret technology and things—but the big picture items seem to wind up in the public literature—the SPE literature, and that gives the smaller companies confidence that they can do it, and that facilitates the movement down the food chain. 


'''KERR:'''
'''KERR:'''


What do you consider to be some of the greatest challenges facing the industry, going into the future?
Let’s go ahead and continue along that line of thought…the biggest challenges you said were having enough water, the carbon…


'''LAKE:'''
'''KUCHUK:'''


Well, I think our biggest challenges still remain getting as much oil out of the reservoir as possible.  The standard world-wide statistic is that we get one barrel out of every three in reservoirs, but recently, there’s been some pretty serious deviations away from that.  For example, the big reservoir in the North Sea, the Stratfjord field will probably have sixty percent recovery by the time it’s abandoned.  And there’s several examples: the Pruddhoe Bay reservoir will be in excess of fifty percent.  So, the major challenge is to make sure that whatever is happening in those fields get translated over to other fields. 
OK, OK, I start where I left off…


This idea is not totally new to me, but I think the industry should adopt a reservoir bill of rights, which is to say we will abandon no reservoir until we’ve gotten sixty percent of the oil out.  Of course, that’s not a very economic statement, but I think that’s the sense we should be going.  That’s very high level, that’s very vague, but in the sense it encompasses everything, every bit of technology that the industry is involved in, from horizontal wells to reservoir characterization to enhanced oil recovery to seismic processing.  A friend of mine a couple of years ago, as we were discussing these topics, he said, “I would like for you to name me one technological advance in the last twenty years that was not caused by computers,” and that’s kind of hard to do.  So, we’re not in the computing business; we don’t sell software, for the most part, we don’t sell computers.  But it’s a very powerful, enabling technology, and almost every technology that we’ve been successful with has had to the core of its incremental change forward, or sometimes a quantum leap change forward has at the core of it the computing technology.  I don’t know that this is entirely true, but we certainly have got to be in the top half or the top quarter of computing usage of all the industries in the US, but we don’t sell computers.  It’s an enabling technology for us.
   
'''KERR:'''
'''KERR:'''


What do you consider some of the biggest challenges facing the petroleum engineering industry as a whole, going into the future?
Carbon, the switch to moving towards gas versus oil…


'''LAKE: '''  
'''KUCHUK:'''
   
I think our biggest challenges going into the future deal with the fact that just as there is this food chain idea I had before with reservoirs going down the food chain—I shouldn’t call it a food chain.  That sounds pretty pejorative, doesn’t it? Is that we’re also moving into more difficult reservoirs.  And so that challenge is to make the technology modify for those more difficult reservoirs, and at the same time, make sure we do it safely. 


Safety is going to be a real challenge in deep water reservoirs, as we’ve already seenSo, whatever the technology is, it has to be effective, it has to be safe, and it has to be environmentally benign as much as possibleThere is a challenge there, with respect to the last comment.  Despite all of the years that we have been producing oil and despite all of the successes we’ve had, you know the oil business could reasonably be considered the world’s second oldest profession, right.  We still don’t seem to be able to convince people that we do things safely, and I don’t see any way to do it because the public in the US and around the world actually take safe operations for granted, and it’s only when something bad happens that we seem to be excoriated by the publicSo, something that would help us a huge amount is some sort of a broad understanding of the risks, the trade-offs, the risks, and a clear statement—a clear delineation between the benefits and the risks of all our technologiesThat’s pretty high level, too.  But I think that would be amazing if the American public could embrace these technologies very quickly, very readily, and without so much controversy.   
So, today, especially in the shale play, what we call, our footprint is too large.  With technology, we have to reduce thatAnd actually, technology is there [in] most of the cases, but I think that having the gas [be] as cheap as it’s ever been, the technology are not going to be used—is not used today, but is going to be usedThen, so the last point really, with this switch, we are going to reduce carbon production, and I think this is going to be a challenge because we have to do thisOtherwise, politician[s] will tell us what to do.   


'''KERR:'''  
'''KERR:'''
That’s very interesting perspective in that we do take it for granted.


'''LAKE:'''
What are some of your favorite memories of working in the petroleum engineering industry?


We do take it for granted!
'''KUCHUK:'''


'''KERR:'''
OK, my favorite memories [are] many, but I’ll start with [a]very few of them.  One is really, I went to this Prudhoe Bay field, North Slope.  You know, you see a white blanket forever, in the winter; summer changes.  And you have to have this incredible clothes that, you know.  And then I worked in the well site; you know, everybody, they check[ed] you continuously.  I think this was really almost like you are in space, yes?  Really, that was great.  I have that picture.  And another part, I went to [the] well site [a] number of times.  You know, I was part of the drillers, and you know, you enter the pay, you get the logs, you look at the logs, “Oh!  Here is the oil!”  This is the really exciting part.  You know, very exciting—you find something, yes?  You see something.  Of course, we have to keep this knowledge to us because we are Schlumberger Company, and we should not, we will not tell anybody that we found the oil.  However, you know, that was a really exciting part. 


Um, lookNobody wants loss of lifeNobody wants injuries and such, but the magnitude of the petroleum engineering profession is remarkably safe, considering how, you know, look, you hate seeing, you know, the eleven gentlemen who lost their lives in the Macondo incident a couple of years agoThat’s horrible, but, you know, in the whole scheme of things, that’s not that significant, considering how massive and significant the petroleum engineering profession is.
And also, another part in my memories—I have a lot of great memories when I was serving [on] the SPE boardWe had a meeting in Abu DhabiWe went on [a] camel ride, and all the exciting stuff.  And a lot of other meetings I went to with SPE, et cetera, but one of the things is much more interesting.  So, when I was [a] graduate student, I went to my first SPE meeting in Las Vegas.  Imagine that you have SPE in Las Vegas.  So anyway, we are students, we checked into [a] very cheap hotel, you know, if you remember there was a Hotel 6 or whateverAnd then, you know, I checked in, I was coming down to go to [a] meeting, so, I had [an] accident on the stairs.  I fly, parallel, on the cement, like this [gestures]. So, I broke all my joints, you know [gestures to the back of his hand] in my left hand, and that took some time to really recover.  And this was—of course, today—you know, it’s a sad story, but it’s a nice story that I can tell with pleasure.  
 
'''LAKE:'''
 
I would bet if you took a poll of the public, and referred to the Macondo incident, I bet you most people would not remember eleven people lost their lives, but they would remember this gushing oil spill that was for two months going on.  I try to bring that home when it comes up in class, somebody says, “What are we going to do to avoid that?” and I say, “Yeah, we’ve got to avoid that because eleven people lost their lives.  Ok?  Let’s don’t forget that, OK?  That’s the reason we avoid it.  Those people aren’t coming back.  The algae are coming back.  The biosphere is coming back.”  A friend of mine, and environmentalist at the University of Texas said, “The main lesson to be learned from that is if you’re going to have a spill, spill it in warm water.”  So the bugs will eat the oil.


'''KERR:'''
'''KERR:'''


What are some of your favorite memories about working in the petroleum engineering industry?
That’s good.  Do you have others that you would like to tell?  Think about it for a moment or two, if you’d like. 
 
'''LAKE:'''


Well, I have several favorite memories about working in the petroleum  industry.  Some of them were from working at Shell, not at the University of Texas.  I’ve been in either academia or research my whole career, so I can’t claim to be an expert in field operations, but one of them was at Shell.  That was the most academically lively group I have ever been around in my life—intellectually lively—and we were doing research.  We were trying to come up with chemicals to put into the ground, and we just discussed and discussed and futzed and futzed and changed and things like that, and so we finally agreed on this chemical that needed to be injected into a reservoir, and we told the field folks.  And then overnight, somebody realized that we had overlooked an aspect of it, and it had to be done again, and so we spent three days doing it again.  And says, “Oh my gosh!  They’ve already shipped the chemical!”  We went down to the docks, and said, “We have to ship another batch,” and the guy at the dock said, “We have the first batch here, because we never send it out when you first tell us because we know you are going to change it.”  So, that was kind of fun. 
'''KUCHUK:'''


When I first came to the University of Texas, I got involved into a uranium leaching project. You know, we produced uranium in the United States by injecting a fluid, and it leaches out the uranium, and we capture the fluid and take the uranium out of it.  And I was doing this with a colleague, named Bob Schechter at the University of Texas, and we had a—he had a great idea for a new leaching solution.  So, we talked the Bureau of Mines into supporting a field test.  Now, this is a great thing.  I think even to this day that our students in petroleum should learn how to do this because the reservoir was only a hundred and seventy-five feet deep, and that means you could drill the well, you could complete the well, and you could put it on production in one eight hour day.  So we could take students down there, could see the whole process, and go back that night, and it would be really good. 
OK.


But we drilled these three real shallow wells, and they were real close to each other, about oh, maybe twenty feet or so, and then we started injecting this solution.  And me being a good reservoir engineer say, “Well, I should—maybe we should write down the pressures on these wells so that we learn something about the formation.”  So, I’m sitting in front of this well, you know, about five feet away from me, and I’ve got my pencil there, and a notebook, and there’s a big gauge on this well.  And I start injecting, and the pressure comes up, and all of a sudden, the pressure goes, “Shoo!” straight down. And I said, “Well, that’s strange.  That’s not supposed to happen.”  And shortly thereafter the most amazing geyser came out of that well (chuckles).  It was twenty-five or so feet in the air and that’s when I first realized how serious this business of channeling can be in a reservoir.  Because the wells were so close to each other and the formation was so unconsolidated that when we injected, we just opened up a path between the two.  And you know, I sat there with that stuff raining down on me, and my silly little notepad there (laughs).  That turned out to be a pretty interesting discovery because we...we uh.  Of course, that was an accidental discovery, but we tried it deliberately, later, and the same thing happened.  And we found out that it’s very difficult to leach those shallow fields like that.  I think it was only a hundred twenty-five feet deep; that the best uranium production was actually coming from things that were a little bit deeper than that: a hundred seventy-five, two hundred feet.  So, it was interesting, and we discovered something that was occurring in the commercial process; although they didn’t know it.  They were getting very poor recoveries, and it’s because the fluid was going every which way because of these channels.  That was an interesting day when that happened.  It was good.
'''KERR:'''
'''KERR:'''


It seems to me that some of your fondest memories might be around some of the colleagues and friendships that you madeAnybody come to mind that you would like to share a fond memory about?
Anecdotal stories, stories about other professionals, engineers, if you will, that you worked with.  Maybe some of the top people that you worked with, and such like that.  Think about that.


'''LAKE:'''
'''KUCHUK:'''


Well, the real rewards of teaching lie in keeping contact with the studentsI’ve been very fortunate in having some very, very strong and very--kind is the only way to put it—people that I’ve worked with over the yearsThe folks at Shell, George Hirasaki, Dick Nelson, those guysMy colleague then, and colleague now, Gary PopeMy colleague at Shell, also since retired, Bob Schechter, but you,I guess, at least in my case I try to make an effort to keep track, keep in touch with students.   
So, you know, with Schlumberger, I have worked with many executives.  I avoided to have any managerial job.  Every time I was offered a managerial, I said, “I am bad at this; you are making [the] wrong decision. So, I escapedBut like I said, I hired a lot of people.  So I trained them; some of them are very capable; I encouraged them to join—to become, you know, managersThe reason that, you know—if we keep managers and technical people totally separate, then there’s going to be a big communication gapSo, often, I would encourage some of the capable people; managing, you know, is not easy.   


We’re going to have an alumni reception tonight, and I’m really looking forward to itAnd I try to remember their names, I usually fail.  I usually can remember their faces—that, that works.  So maybe an average, teaching, an average of two hundred students a year over thirty-five years, that’s you know, several thousand studentsAnd these are undergraduates.  You know, they’re in school for an education; they’re in school to play around; they’re in school to go to football gamesThey’re in school, basically, to mature, and the education is kind of an added benefitAnd so, it’s just really great to see how successful some of them have beenSome, you would never guess they would be successful, but they’ve been successful, and it’s just--many attribute that success to my class! It’s like, that’s just totally wrong! (chuckles).   
Actually, I have two stories.  One, I have a friend of mine, he was [a] reservoir engineer in one of the location[s]So one day, he came to me, he said, “I’m going to be marketing manager. I said, “Look, you know, this is not for you because you work, sometimes you don’t sleep—you know, when we are interpreting the data, this and that, you know, the oil field is twenty-four hoursYou don’t stop.  So you have to work through the night.  You work, this and thatI said, “You know, if you’re going to be marketing manager, you have to have a good sleepBecause you are going to go in front of clients with your hair all over, this and that.” He insistedUnfortunately, he did, but he survived six months.  He left the company, OK? This is a sad part, but I have also one pleasant one.   


You have so many influences on your life, you can’t point back to one class and to one professor, but they doAnd some of them even established a scholarship in my name at the University of Texas, they’ve given money, and things like that, so it’s been extremely, extremely rewardingAn aspect that we discuss all the time that doesn’t seem to make it much into the public consciousness: most of our undergraduates are from the university—uh, from the United StatesMost of them are from the Houston area, actually.  But graduate school is a different matter.  Most of our graduate students come from outside the USI think eighty or ninety percent of them are, and you know, at first, I was kind of along on this thought that, well, you know, they’re going to take jobs that Americans will take.  I’ve totally changed my mind on that.  I’ve crossed the Rubicon on this.  The benefit that the United States accrues from bringing in these folks, who, for the most part, stay here (for the most part, stay here), far outweighs any sort of negative consequence of it.  And so, it’s good to keep track of those folks, tooNow, they tend to go into more technologically intense areas than the undergraduates do.  The undergraduates tend to go into business-related areas and by companies and operating companies. The graduate students tend to be technologists.  But they’ve all been great.  They’ve all been of great benefit to the US, in my opinion.  And it’s the one thing that makes teaching worthwhile. 
I hired a reservoir engineer, and then I assigned him to Saudi ArabiaHe’s covering the three countries: Kuwait, Bahrain, and Saudi ArabiaHe worked there a few years—very capable guyNow, he’s our chairmanOk, so I’m really pleasedYou know, as I said, I have really many people.  I hire great people, and with…my help, they went to [the] top.
 
I think if you got into teaching, and you quit after ten years or so, you wouldn’t see this, but if you stick with it for thirty-five years, you begin to realize that this is a huge thing, a huge benefit.  I cannot go to any part of the world now, that I don’t have an ex-student, and they all want to go out to dinner, they all want to complain how hard my class was (I say, “Aw, give me a break.”)  And they all pretend that they were C students, even though they were B--they were A students.  So, it’s just wonderful.  It’s great.    


'''KERR:'''
'''KERR:'''


What has made working in the petroleum engineering industry so meaningful for you?
How has being a member of SPE affected your work and your career?


'''LAKE:'''
'''KUCHUK:'''


Well, working in this industry was meaningful--of course, I’m an academicianSo much of the meaning accrues from having all these students that have come through over the years, and I think we talked about that largely beforeThat’s, by far, the biggest personal meaning to me.  But, from a technological point of view, a friend of mine once said, “I love working in this business.”  He says, “All our problems are impossible.”  And it’s really true.  These are significant challenges that if solved, they will make a big impact, but we really don’t have any direct observation of reservoirsEverything is indirect, and the problem is very difficultWe’re dealing with natural phenomena, and so it’s like you never quite feel like you’re finished with a problem, but you might be finished enough to make it go forwardSo, that’s probably true of other engineering disciplines, but with me, it seems like when you solve something, other things crop up which are as equally as interesting.   
SPE really affected my career.  I joined SPE [in] 1973 as a student member (that year that I broke my hand)Anyway, so then—so I worked for a few years, and then I started working for BP.  So there was at that time there was a California regional meetingAnd then one of my colleagues, actually, Arliss Cove (he was one of the SPE presidents later), he was working there, and he came to me, [and] you know, I’m a young guy, he said, “Look, we need a manager for printing and publication.”  You know, in those days, you know the SPE for the California Regional Meeting because today we don’t have, but California was so bigSo, you know, printing and publication was very importantYou know, you find a printer…this and thatAnyway, so that’s how I started with SPEI was a Technical Committee Chair for publication and printing for California Regional Meeting.


I guess, basically what I’m saying is, is that they’re very interesting problems.  The people that I went to graduate school with that wound up in the downstream business do not have nearly as interesting problems as we deal withA PhD student I had many years ago, he was a post-doc from physics, and he came across, and he was in my office after three months of just reading, and he said, “You know, I was in physics for two-and-a-half years before I found a significant problem to work on. He said, “Here, when I walk outside the office, I stumble over them. He says, “Every problem, every direction, is a problem. He says, “Nothing seems to be completely closed in like it was in physics. And I said, “Yeah, that’s kind of the way it isYou just find issues every which way, and when you settle on an issue, you find an issue associated with that, and an issue associated with that.  And the next thing you know, you're really working on something highly interesting.  
So, what happens with SPE, you enter once, you never can escapeOK, next year, something else came; after following years, they said, “OK, we need another member for SPE transient—at that time, we call it PTA, Pressure Transient testing Analysis—there was a committee; still there is, I thinkAnd then, I was a member at that time, I was—and then it was, I think, ’95—no, ’85 and ’86That was a tough year, OK?  So, basically, our chairman, of that committee, lost his job, he couldn’t come to [the] meetingThey asked me to chair the committeeFormally, I am not chairman, yes?  So then, the following year, they said, “OK, you did a good job, you are chairing this year.  Now you are the chairman.”  Yes? So then, OK, fine, but here, all this time, you meet other people, you see all the papers, you read, and you know, a meeting like that is very important.   


Well, the students are still part of much of what makes the work fulfillingI’ve had, of course, children of former students, I’ve had grandchildren of former students in class, two and three generations of people that are in the oil businessWe had a lot of students whose family were in the oil business; a lot of students whose family were significant in the oil businessNext year, I’ll have a former student who will be president of the SPE, and that’s very significant.  I’ve had former students who’ve been very successful in business.  They’ve been very generous.   
Anyway, so then, I was there, and then, a few years later (still I am in a few committees, this and that), SPE changed the format of the annual meetingThen, we had a sort of grouping, you know, Reservoir, Logging, Testing, et cetera, et cetera.  So now, I was group leader for Reservoir Description and under Geology, Petrophysics, and Well Testing under that.  OK, I was a group leader—it’s called Coordinating Committee Chairman.  So, I did that for a few years, and then they said, “OK, next year, you are going to be General Chairman of the Annual Meeting.  That was the most excitingThat was ’94. 
And of course, today, we divide that function into two: one is general chairman; one is program technical, but at that time, one person.  And you know, running that was exciting, fun, but a lot of work or so, running the whole meetingAnd again—you know, this helps you—meeting other people, you make a lot of friends, and you learn many, ok.   


In fact, that’s one point that needs to be made in these filmings somewhereDuring a period of my career, I was chairman of the department, so I had some exposure to other departments at the University of TexasNow those other departments are biomedical, chemical, mechanical, aerospace, and electrical engineeringThere was always a little bit of a ruffled feeling about the fact that we had so much money in the departmentOther departments, especially electrical, didn’t have itAll that basically translated into the fact was the oil industry was extremely generous to educationIt’s almost totally ironic because many of the people who were significant in the early years of the oil industry were not particularly well educated.  But somehow, they latched onto the fact that this was the way forwardAnd so, they’ve been very generous, the private foundations, not just to us.  Other departments around the world have been very generous in their support. So, scholarships, fellowships, endowments, direct research support, everythingMany times, there’s no obvious benefit that they’re going to gain from giving the money.  It’s just that we think education is important and should be supportedSo, that needs to be part of this effort: is the fact that the oil industry has been extremely supportiveBy far, in my experience, by far more than any other industry in America.  They’ve been very supportive.
Anyway, so then, I went to Dubai, and become one of the board member of the Dubai sectionWhile I am there, I become a board memberBeing a board member is also very interesting—it’s hard work, but very interesting because you spend a lot of time with a lot of brilliant people, very good people.  You debate, you argue, this and that, but you learn a lotIn fact, I met [a] few of them today.  In fact I told one of them, “You are my best SPE president.”  Don’t ask me who’s the second best.   
Anyway, so basically, SPE, you give and take, continuouslyYou benefit, but you put timeBut what I decided about six years ago [was] I will reduce my SPE involvement because at some point, I think I was working only for SPENo, that’s a joke, but I decided to push younger people, OK? So if somebody asked me, “Will you be a committee member?” I said, “No, no, no, I will nominate someone else. In fact, I was just asked to ATW in the Middle East, and they asked me to become a committee member, and I nominated someone elseI only take this if there is a need.   


'''KERR:'''
For example, a few years ago, three of four years ago--this was before Libya’s internal problem—Libya established an SPE section, yes?  And they said, you know, they asked me, “We are going to run some SPE meetings [and] we don’t know what to do. I said, “OK. I only accept, you know, these are the exceptions.  You know, I nominate, but still, you cannot escapeYou know, this year, I was the chairman of the Honorary and Distinguished Member CommitteeAnd next year, I am sure they will find somebody else—something elseYou know, SPE, what I am saying, is always fun working with.  One thing, I also work with other societies, but SPE, you know, stuff, they work like a clock.  
 
That’s great.  Now, we don’t mind dropping names, if you’d…You have to be as proud as a peacock, you might say, with respect to this former student of yours that’s going to be the SPE president next yearDo you want to elaborate on that? On anything, I mean obviously, you had an influence on him.
 
'''LAKE:'''
 
The former student is Helge HaldersonHe was a Norwegian student that came over, gosh, back in the early eighties or so.  Very sharp, very photogenic, very articulate.  Of course, I’m totally responsible for all his success (chuckles).  And so, and I do think I was a little bit responsible for it.  You know, a little bit when he was in school, but a lot from just being supportive; being able to talk, and to give advice, and also to take advice from the guy.   
 
Another one is Shahid Ullah, who is a Bangladeshi that came over more or less as a migrant, and he’s now high up in Afren; I don’t know exactly his title.  But, he’s been extremely generous over the years.  All these folks have been generous because they’ve been successful, and they’ve been successful, in part, because of their education at the University of Texas.  So it’s a very good thing.
 
Well, the other people that come to mind was a couple in Midland, Richard and Lois Folger, who were both in my classShe was a good student, and he was—he was a student, and I think I helped get them together (chuckles); they were not married at the time, and I think she helped him get through the classNow, he’s a very successful businessman in Midland, and a very generous supporter.  Not just to us, but to other universities that his kids have gone to, so that’s been good. 
 
Another family is the Sparks family in Midland.  Three generations of University of Texas petroleum engineering graduates, and they ‘ve been very generous and very supportive.  One of the Sparks brothers is, I think, a city councilman in Midland right now.  So, he’s gone into politics a little bit.  So, there’s been quite a few over the years, and those are the ones that just come to mind very quickly.


'''KERR:'''
'''KERR:'''


How has being an SPE member affected your work and your career?
What has made working in the petroleum engineering industry so meaningful to you?
 
'''LAKE:'''
 
Oh, the SPE has had almost an inestimable effect on the career.  I was encouraged to join shortly after I was--I joined Shell.  One of my earliest memories was of a technical review meeting in which Georgeann Bilich, who is still with the SPE there, was presiding over, she works with the SPE, and she was there.  And we were talking about papers, and she was like, you know, ten months pregnant (chuckles), and I said, “this is something.”  She is very good at what she does, and she knew all the answers to the questions, but now I’ve, her daughter is now in graduate school, she was briefly in my class over the years, and so, there are some personal relationships with SPE folks that are important over the years. 


But, the opportunities to kind of be associated with the technical papers (and I joined the technical review committee, just, frankly, to force me to read these technical papers, which I’ve done).  And I’ve learned how to do technical papers, I’ve learned how to do presentations, and I’ve learned the technology associated with it.  And then I had the opportunity to teach classes for the SPE, which I’ve done for several years now, and that’s been a two-way street.  In fact, sometimes, I learned so much from the students in the class that I wonder if I should actually charge them for the class.  I still do (chuckles).  I still charge them. So, and then these meetings are really great. 
'''KUCHUK:'''


The networking possibilities are just totally good, and I do get to go to a few papers out in the conferencesThe older that you get, it seems like the less papers you actually go toAnd of course, you get to the point in your life when you think, “Oh, everything’s been done before” or “that paper is nothing new. But sometimes, it is; sometimes it is, and it takes a little time for it to come to fruition, probably four or five years when something new actually appears in the paper.  They are, by far, the most—the best technical society that  I’ve ever been associated with, and I’ll name names here: The American Institute of Chemical Engineers is much bigger than the SPE but they are not as well organized; the AGU is bigger than the SPE, but the SPE has a, you know, a “no podium, no paper” policy. Everything that is presented here is in a pre-print.  They branch out into different areas like insurance and technology transfer and distinguished lectures, which I have been, a couple of times.  
OK, I think working with industry is great fun for many years.  SPE is an essential part of this industry, and SPE, you know, give and take, really.  You serve SPE, SPE is very good recognizing that contributions, and I benefitted quite a bitSo that also gives you internal recognition within your companySo then, within your company, you have external contribution, and then vice versa.  It really benefits each other very wellAnd I think that both my company, Schlumberger, is a great company to work with, and also as a society, SPE is a great society to work with because it really gives back something to you as a recognition; [a] platform to speak[a] platform to publish, OK?  


But the most significant thing they did (and this pretty much started when I was on the board many years ago) is they decided they were going to be an international organizationOther people put the word international in their title, but they put the word in and they also did it.  So, they established offices in, I think, Kuala Lumpur, in London, offices in Houston. So, as far as I can tell, they are the most truly international professional organization that I know of.  They were certainly the first one to be international.  They just decided to do it (decided to do it).  I think the SPE’s focus has been unwavering over the years.  They are technology transfer, and all aspects of it.  Sometimes they’re pushing brand new technologies; sometimes they’re pushing education as the needs evolve, and they respond to the needs.  Sometimes they’re pushing diversity; sometimes they’re pushing registration.  They’re always pushing these things.  Sometimes, they’re pushing it harder than others.  So, they have programs designed to get women into engineering, for example; programs designed to make students better leaders; student paper contests, which have turned out to be a huge thing at the University of Texas; they have a Petrobowl contest, which ten years ago, I’d never heard of it, and now our students spend, gosh, an enormous amount of time preparing for, and occasionally, they actually winAll of these things are supported by the SPE.  They have a very professional, very active staff, and they know exactly what they’re doing and how to go about it, and you know, they do actually take adviceSo, if you have an idea about something, it may not happen right away, but it’ll come inSo, I’m impressed, I’m totally impressed with that organization.   
The other side of industry, as I said, industry—you know, one of the character[istics] of this industry is slightly slow on jumping [on] new technologyHowever, when they adapt, they adapt very well.  That happens continuously.  So, the time lag is about ten years, OK? But, that ten years, it happens; it never stagnated.  So new technology comes and adopted during that ten years, and that keeps goingAnd this [is] a very challenging industry, and it’s fun working with because you are dealing with—basically, lookReservoir engineering is, you are dealing with, you know, underground formation[s]You don’t see, but you only feel through the measurements, and that is really fun because that is like, you know, dealing with uncertainty and trying to find the truth, actually.   


The SPE is a main repository of the technical transfer, of what they doNow, the way they work it is you write an abstract for a meetingIf it’s accepted, then you have to write a preprint for the meeting, and then you give it.  And then, if it’s sufficiently good enough, and they do review these things, they publish it in a journal. But the preprints are probably the strength of the whole process.  Now, it doesn’t help an academician very much because they’re not considered refereed, but they change—they change topics, they change topics all the time.  They’re pretty good, even if they’re not at publishable quantity, and they keep them on file.  I mean, you can go back thirty or forty years and find an SPE preprint about a topic however obscure.  It’s easy, easy to referenceAnd so, they just do a super, super job of it.  The other societies often they will say well, we won’t let you give a presentation unless there’s a preprint, but they don’t enforce itSo, most of the time, they don’t have preprints.  SPE enforces it.  They try to--SPE tries to look at your visuals before you give them to improve the quality of the presentation.  I think they make a conscious effort to try to make sure there’s a diversity of the audience, so it’s not just folks from the US associated with it.  And all of these things show up in these conferences.  I mean, you see people from all over the world here.  You see technologists, people selling their products—vendors.  So, they attacked the oil industry—attacked is probably a poor word—but they address the oil industry on a very broad basis, but it all comes back to technology transfer. And the time that I was on the board, yes, we had you know, budget reports, and things like that, profit and loss reports, but it was not the major focus of the board of directors meeting.          
And still, it is a very exciting, very dynamic industryI don’t think it is dyingI think it is just beginning, in my opinion, because every time, new challenges come, and again, two challenges we are facing are reducing our footprint on the environment, and that includes…the carbon production, but I am sure we will.  I am a very optimistic personAgain, I—I will close like this: you know, I give SPE talks to young people a few years backThese are all the students come from all over the world.  They ask me to give a talk.  I give a talk; I finish like this: You know, look, one day, I am going to retire, OK? However, I said, I am not going to leave you soon, alone.








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Revision as of 14:34, 6 January 2015

About Interviewee

Fikri Kuchuk, a Schlumberger Fellow, is currently Chief Reservoir Engineer for Schlumberger Testing Services. Dr. Kuchuk has 40 years of experience in reservoir characterization, engineering, and management, and is an internationally-recognized expert on pressure transient formation and well testing. He has made significant contributions to the theory and technology in the areas of formation and well testing interpretation ; history matching ; and uncertainty in reservoir description and reservoir performance predictions. He has published and presented more than 150 technical papers on fluid flow in porous media; formation evaluation; pressure transient well testing; production logging; wireline formation testers; horizontal and multilateral well placement and performance; permanent reservoir monitoring; water conformance and control; and reservoir engineering and management.

About the Interview

Fikri Kuchuk: An interview conducted by Fritz Kerr for the Society of Petroleum Engineers, September 29, 2013.

Interview SPEOH000110 at the Society of Petroleum Engineers History Archive.

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Interview Video


Interview

INTERVIEWEE: Fikri Kuchuk
INTERVIEWER: Fritz Kerr
OTHERS PRESENT: Amy Esdorn, Mark Flick
DATE: September 29, 2013
PLACE: New Orleans, Louisiana


KERR:

Why did you decide to work in the petroleum engineering industry, and how did you get involved?

KUCHUK:

OK, I decided--not really a decision to get into the petroleum engineering industry. First, I went to—very beginning—I went to [a] few months, medical school. Then, I said, “OK, I should be [an] engineer,” so I went to the Technical University of Istanbul, Mining faculty. The reason that I went into mining is you know, my hometown, there’s a bunch of iron deposits, there’s mining, so I knew something about it. And then we entered university, and then we are decided to select between geology, geophysics, petroleum, et cetera. Some graduate students gave a talk. I was impressed with one of the talk[s]. I decided to pick petroleum engineering. So, you know, from the very B.S. level, I entered the school with petroleum engineering.

Then, during my student years, I did a lot of summer jobs with Turkish Petroleum; Shell; I went to Iran. And then, I had one of the most important thing[s] happen: entering the petroleum [engineering school], I had the Shell scholarship. So, when I finished, and then Shell said, “If you are interested, we can send you to graduate school.” I said, “This is great!” and I went to Stanford. It’s a choice, because I changed my mind from medicine to mining to petroleum, but that is how I decided, really. It was just a choice, not a plan. The moment of the choice, yes? That’s how I became really—entered the petroleum industry. Via school.

KERR:

So the next question is: In what discipline in the industry did you work, and what drew you to that discipline?

KUCHUK:

OK, so after graduation, I was a petroleum engineer, I worked a little on the well side, doing a little bit of mud engineering, what we call it today. And then, after six, seven months, I said, “This is too muddy.” I went to reservoir engineering. More mathematics, more—you know, you don’t deal with—anyway, so basically, I went to a little more theoretical side of the business, but that was the beginning of my graduate study at Stanford. So, basically, I am a reservoir engineer, qualified. And in this subset of that really, what I call well testing, formation testing, and reservoir management, et cetera. These are the subset[s] of the reservoir engineering that I entered at the graduate school at Stanford.

KERR:

What drew you to the discipline of reservoir engineering?

KUCHUK:

So, I came to the reservoir engineering, again, via school. So, I came to the US first to learn English, and then I went to San Francisco to learn English, then next door to Stanford University, I went there. They are really a reservoir engineering school. So, I wanted to go to Stanford, that’s really how I entered the reservoir engineering.

And how I entered the subset of reservoir engineering was one professor named Hank Ramey. He was the father of--at that time he was one of the most famous reservoir engineers; also in well testing. So, I decided to do my Master’s thesis with him. So, that automatically put me in, what I call, well testing. So that’s how I really entered the reservoir engineering via graduate stu—you know, as a graduate student. Then I went to well testing, which is a subset of reservoir engineering with Hank Ramey. Which is—he’s one of the pioneers—he’s [a] deeply respected professor of our time. He died ten, fifteen years ago.

KERR:

So, you are a world renown expert on pressure transient formation and well testing. What drew you to this aspect of petroleum engineering?

KUCHUK:

Well, OK, first, you know, reservoir engineering, especially well testing, is an interesting thing. We measure things at the wellbore, mainly pressure. We interpret. So this interpretation, you don’t see this and that. This is uncertainty, and you have to make a decision [about the] things that you don’t see, don’t touch.

The other part, what really attracted me--that’s why also I joined Schlumberger-- is making tools. Making tools that can measure. Because when I was working for BP Prudhoe Bay, I was missing certain measurements, OK? So, I had with Schlumberger, really, an opportunity to affect that: what we should measure. I was involved, a couple of tools today, the most successful tool of the Schlumberger. What excites me: making tools, and then looking at those measurements, and interpreting them. This is really almost like a—of course you have to know how, the mathematics, this and that—but making things and measurements, and interpreting is very good. You know, like being [a] doctor, you know, your patient comes, you look at that, you give them something, and you cure them. And this is something really that excites me still [about] what I do, you know. To make things and change things and to come up with something always new.

KERR:

So, you are a world renown expert on pressure transient formation and well testing. What drew you to that particular aspect, that particular discipline within the industry?

KUCHUK:

Ok, so let me describe a little bit what is really pressure transient testing. We also call [it] well testing. Ok, the formation testing and well testing is a matter of scale. One is we probe around the wellbore. The other, we probe from the wellbore to say, a thousand feet. What is this probing? We put pressure pulse; this pulse propagates in the formation and brings information back to us from the formation, whether there’s a false or some reservoir properties. So basically, the probing, like seismic, like sonic, you know, is suggested we call this pressure diffusion, and this probing the formation, and you get the measurements as a pressure, like a psi, and then we interpret them to really characterize the reservoir.

KERR:

Fikri, would you discuss your work in horizontal and multilateral well placement?

KUCHUK:

Ok, this is a good question: the horizontal well and multilateral well placement. So, in about 1990, with the Austin Chalk and Canada, the horizontal drilling started, really. Although, the horizontal drilling was first applied in Russia in [the] forties, but however, it was never commercialized. With Austin Chalk, and in Canada, they start drilling horizontal.

In fact, in 1991, I was counting the number of wells in the few hundreds. I entered that area this way: I told you I was working on Prudhoe Bay for BP. After that, I left, and joined Schlumberger, but then I was called by my friend. They did some horizontal well--they did some well testing or transient well testing, and they said, you know, “Could you help us analyze the well, to interpret?” At that time, I was at the research center, at the Schlumberger research center, and I had a few friends and we did a lot [of] mathematical solutions, and we collaborated with my friends in BP (in fact, we wrote a paper, “How Do You Interpret Information from Horizontal Wells?”), and then I was fascinated with the new technology, this really new technology. In fact, at that time, I was counting every month, how many wells. Until 2000, I had the precise number, how many wells.

So then, I told them, “Look, this is a revolution. This is a really big revolution.” I said, “I’ll count the number of wells until 50,000; after that, I give up.” Actually, I had a plot, you know, time versus the number of wells. But really, that was one of the most important revolutions. In fact, today, if we have this shale gas, the allotment, thanks to the horizontal wells, multilaterals, plus the fracturing. I worked for Shell many years ago, in fact it was my first job after school. I was working in West Virginia, Morgantown, and this was just after the oil embargo. [President] Carter put out of money, and then I really worked for a few years for [inaudible] Shell. You know, we did not have horizontal wells, we only had massive fracturing, but the fracture was not staying open. So still, the wells are better, but no way what we have today. You know, the horizontal well in the shale play is a revolution.

KERR:

Discuss your work in horizontal and multilateral well placement and why it’s so revolutionary.

KUCHUK:

So, why the horizontal well placement drilling, and later multilateral is revolutionary is in many respects. One is, you know today, you can hit the oil play, you can stay within a few meters. Second, you know, you can hit the target, if there is a bypass oil. You are here, but you can hit the target. The third is the most important part. You know, comparing a vertical well, which is six, eight hundred feet; now you have two thousand feet and the flow comes in this two thousand feet, not fifty feet. So really, normally, the productivity or the rate, the flow rate is normally between a few times to ten times more in a horizontal well. But the shale is the really revolutionary part. We would have not developed shale play today with vertical wells. No way. So, revolution in two sense[s]: with the one old application, what I am saying is for shale, that is essential. Horizontal wells, without it, you don’t have a shale play.

KERR:

Fikri, what were some of the technological milestones in your discipline?

KUCHUK:

Yes. So, these are really the milestones in my discipline. One is, as I said, at an early age, I decided to become a reservoir engineer. That was a really important switch from petroleum engineering. But of course, we need all of this. I’m not saying that one is better than the other, but for me, personally, that was very important.

Second, really interestingly, I was working on shale thirty years ago. People now working on the shale they’re young people. The average age is probably thirty-five. And I think that was an important milestone. I made a good decision there, I enjoyed working, but at that time I didn’t see the future. I switched back to petroleum, you know, the traditional petroleum engineering. And another really important milestone was joining Schlumberger because that enabled me to not only practicing reservoir engineering, but making tools that we need. And I think that was really, as I mentioned earlier—OK--I was involved in the development of a bunch of tools that today, in the market, they are good tools. And those are really milestones.

Another sort of milestone that has a few steps: one, I worked in research [for] eight years, then I went to operations, and that was a really good decision. Initially, I wasn’t really sure, but it was a very good decision. And then, after that, I was in operations. I was in Dubai for twelve years, and then I was asked to come to Paris to, again, do well testing or pressure transient testing because Schlumberger was a little bit less active in those days. Not very many people left. So, I came back, and again, almost a new excitement.

You know, you are discovering—you know, what I’m saying—in fact, I’ll tell you something interesting. In my life, I worked on some topics four or five years. Normally, I leave those topics. I go somewhere else, and then later, I come back. Sometimes, it takes much longer time because if you stayed for a longer time, basically, you’re just going around and around. So, it’s better to take a new challenge, leave that (maybe someone else will contribute), and then later—actually I did this a few times—come back. Again, new mathematics, new technology, this and that. All of a sudden, you start contributing again. You know, this really—to me, this is very interesting, personally, that’s why I worked on very many different topics, but I always find it’s a good idea, after four or five years, to do something else, if you have a choice.

KERR:

What were some of the important technological milestones in your discipline?

KUCHUK:

OK, so these are really the technical breakthroughs in what I had been doing, partially in my part. You know, testing, formation testing, et cetera. One is really, in [the] 70s [and] 80s, the pressure transient testing, or well testing had really advanced, especially with software, et cetera. To me, that was [a] very important milestone.

[The] second part, you know, we come up with, in [the] 90s, the introduction of wireline formation testing, especially to be able to take very good samples, downhole. This was really “the” milestone for technology. [The] second part, another one is really, as I said, horizontal well multilaterals. And I really benefitted greatly [with] high resolution seismic. I think seismic--it brought importance to reservoir characterization.

Third one (really last one, not third one). Last one is really, today, shale oil and shale gas development. To me, this is, you know, amazing. This is technology beyond our imagination. Not only that, but gas price has been cheaper than ever. And that is really two important technologies: one is, as I said horizontal multilaterals; second, multistage fracturing. These are revolutionary, really incredible innovations. …So, at a given decade, they introduce one or two really important things. Some of them, they really change the landscape.

19:27-21:29 First, let me really explain what…wireline formation testers are. So, these are wireline convey or probe or packer without modules. You take samples—first you go down the payzone or the possibly-bearing formation, you have [a] look, and then, what we do, is we take sample[s], a bunch of samples around the wellbore , vertically. And we measure the pressure, and we conduct some short pressure tests, build-up, draw-down. And we really—this is important for getting, first, [an] idea about [the] productivity of the well. Second, what kind of fluid is there? Heavy? Light? Gas? Or how much water is closer to you. And today, this is really on of the essential tools. Although these wireline testers were introduced in the1950s, until [the] 90s, we could not achieve a good sample. We couldn’t take [a] sample. If we [took] a sample, we [would] end up with some water, some drilling mud, this and that. In [the] beginning [of the] 90s, all of the service companies, including mine, we do really have a good sample. And [the] sample is important because that is …what you are going to have, what you are going to produce; how you are going to refine, you know; if you have condensate; what kind of facilities you are going to have. Second, as I said, is that you get [a] good idea about reservoir pressure and the productivity of the well.

21:30-23:41 Why is high resolution seismic important is—you know, seismic is like [an] x-ray, you know, of the body. So, high resolution seismic gives a lot of good information about the skeleton of the reservoir, the structure of the reservoir. Where are the faults. Today, luckily, we can even see some of the fractures, and you know, the faults are fractures if they are—you know, they could be [an] obstacle to flow, or they could be [a] highway to the flow. So, you know, the high resolution seismic brings this information, particularly today, about fracturing, fracture corridors, this and that. I think, as a reservoir engineer, if we don’t know the structure, we don’t know [the] skeleton of the reservoir, we cannot model it. Modeling comes with high resolution seismic [and] good geology. Without geologists, seismic—you know, you have an x-ray, but you don’t have a doctor to see what it is. Anyway, so really, today, all of the money saved with high resolution seismic, because in the drilling, you can stay in the pay zone. In fact, some of the companies today, if they are going to have…expensive (inaudible), you know, offshore and this and that, they will not drill without seismic. And this seismic is high resolution because you want to place the well, we are talking about a few meters, four meters, and to me, the essential—to drill where you want to drill, and also develop [a] reservoir model, a reservoir simulation. You can manage the field much better. Anyway, this is really important—high resolution is really important; almost like you have a good map in your hands to walk in the reservoir.

KERR:

So, Fikri, what were some of the technical challenges you faced during your career?

KUCHUK:

OK, in my career, you know, it goes many years, but [the] first really technical challenge I had [was] when I started working in Prudhoe Bay. In Prudhoe Bay, you know, you have wells; they are all deviated because you drill the wells from a single platform. And then, during the test, when you test, you cannot shut in [the] well more than twenty-four hours because [the] wellhead start[s] freezing. This is in, you know, [the] North Slope. So basically, you know, I was doing well tests for BP, and this twenty-four hours was very short, and most of the test, itself, [the] signal, itself, [is] dominated by [the] well, itself. So, the well[s] were in reservoir formation camps. So this was, of course, I struggled there. Later on, [when] I joined Schlumberger, I came up with some solutions, that was really the challenge. Later, I told you that the sampling, good fluid sampling from the reservoir, was not possible before [the] 90s. So I worked in this, too, with a bunch of good friends. Really, we solved that technical challenge. There are many other challenges today. One of the challenges still is there; [it] remains to be solved. Of course, we did it out of development, it’s really characterization of fractured reservoirs, particularly carbonate reservoirs. The last challenge, to me, is still I believe, most likely, that we still don’t understand how the flow gas is coming or oil is coming into fractures from shale reservoirs. We understand that it’s coming from [the] reservoirs, but I don’t think still that the flow mechanism or the principle of flow, et cetera, is not well-understood. I think that challenge will stay with us a number of years. Hopefully, some contribution will come, but today, it’s a challenge, a today challenge.

KERR:

With regard to the technical challenges, how did you overcome these challenges, specifically?

KUCHUK:

OK, these challenges basically, [there are] two of them. We said one is, actually, testing the wells in Prudhoe Bay, and the signal, itself, was dominated by the well. So, we come up with two solutions with time. One is, while testing, we also measure the flow rate, and that is become possible with the simultaneous measuring of the flow rate and pressure together, and that is simultaneous measurement, OK? The second part is what we call downhole shut-in. You flood the well, to reduce the effect of the well itself, you do downhole shut-in. And that is, really, two possible solutions, and today, downhole shut-ins [are] used very widely to cut the effect of the wellbore, itself. We call it wellbore storage, [that is the] technical jargon, and that really solved the problem.

KERR:

OK, so, I understand that you’ve published more than a hundred fifty papers on a variety of subjects pertaining to challenges in reservoir description and dynamics, such as fluid flow in porous media, production logging, wireline testers, horizontal and multilateral well placement and performance, water conformance and control. So, here’s the question: Which of these challenges was the most interesting or difficult for you to overcome?

KUCHUK:

I didn’t get the, I didn’t…can you repeat the…?

KERR:

OK, so you’ve published a number of papers, specifically on fluid flow in porous media, production logging, wireline testers, horizontal and multilateral well placement and performance, water conformance and control. Which of these challenges was the most interesting to you or the most difficult to overcome?

KUCHUK:

OK, basically, all these, of course, we have many challenges, and I worked on many different areas because when I see a challenge, I go start working. Really, the most interesting part today, where I am working is really, again, the characterization of carbonate reservoirs, and achieving advanced well test interpretation using the geology maximum. Today, we are not there yet. Anyway, this is part of the integration. Integration is a lot more challenging because integration needs different disciplines, and no heroes. Everybody has to contribute. Anyway, really, again, today, I have two challenges, as I said. One, as I said, is the shale gas, I[‘ve done] a little bit of work on it, and [the] second part, you know, the reservoir characterization carbonate. The way that I work is…I work on many things, I don’t publish, and then, when I am ready, I finish the work and publish. What I am doing, there is one topic I’ve been working on for five years, still is cooking, yes?

Anyway, so basically, I think, you know writing papers is communicating with your audience. So basically, that is, to me, writing papers. And I write papers two ways: one is I find something really theoretical; other math, et cetera, I find other journals. Then application (inaudible). I come to SPE journals that I have an audience to communicate because this is more applied, so that’s really how I do my writings. Other journals are more mathematical, so mathematical journals, and then SPE. SPE, to me, of course I have, if I may say so, a greater audience at SPE, so that’s what I write. I write a lot of papers, in fact the day after tomorrow, I have one paper to present before my friends and my audience of SPE.

KERR:

What do you consider to be the most important contributions you have made in your career to the petroleum engineering industry and why?

KUCHUK:

So, you know, I’ve made a number of contributions. You know, I think the most important contribution that I made is I hire a lot of young people, I train them, and they work for Schlumberger. I have been doing this since I joined the company. Really, to me, that is as important as my technical contribution[s] or scientific contribution[s]. Hiring people, I do every year—sometimes I do more, sometimes I do less. [I] train these people and stay with them until they mature.

Second part is of course, technical contributions. One, you know, two years ago, I published a book with a few friends of mine. I think that book is…a very good book for pressure transient and wireline formation testing. Unfortunately, [it’s] a little bit [on the] theoretical side, but it is [a] very fundamental book. And with time, I think I will overcome that, I am going to write another one—[a] practical one! So, the technical part of contribution, first, you know, the very beginning, I did contribute an understanding of flow in the shales—that was early. Later, I contribute[d] the interpretation of pressure and flow rate from the wellbore, and I also contribute[d] both interpretation and making tool, wireline formation testers. And then I did very interesting field research with many people in Ghawar Field in Saudi Arabia. We did the simultaneous measurements of electromagnetic, flow rate, pressure, and all the logs, et cetera, and this is all really very detailed characterization of the formation. And this was research work, and I’m hoping that in a few years, people will start doing it. Basically, that is some of my main contributions. And one more thing! Actually, interpretation of well tests from horizontal wells.

ESDORN:

Can you maybe, especially in Saudi Arabia, you were talking about the, I don’t know, I didn’t quite catch the name of the field?

KUCHUK:

Ghawar. Ghawar Field. Ghawar.

ESDORN:

OK, I’m going to have you spell that later, but can you talk about why that worked there, and why that was an important contribution? Just for anybody who isn’t familiar…

KUCHUK:

The work we did in Ghawar Field was a joint research work between Saudi Aramco and Schlumberger. So why that is important is Ghawar is one of the largest field[s]. You know, estimated reserve is 120, 110/120, maybe more, billion barrels. One of the most largest field[s]—I think if I still remember, it may produce maybe five million barrels per day. It is a gigantic field, you know, an incredible field.

So, I was in the Middle East for many years, I did a lot of joint work with our clients in the Middle East, but this was really the—it took a few years. I didn’t work on it full-time, but this is a very detailed work. You know, we come up with new, completing the well, putting electrical array in the well, putting pressure sensors, and developing, you know, whole new technology [that] had never been applied. And while I am lucky that, you know, the Saudi Aramco—I am thankful that they give the well to work on, and I think this work is going to be important as time passes because basically, it gives a good idea [of] what is recovery factor, what is remaining oil. You know, this was first, but as I said in the Ghawar—huge field—you know, I think Saudi Aramco understanding the recovery factor, et cetera, et cetera, I think is crucial for them. With time, I am sure this work is going to come forward, but this is nothing new to me. Most of these things I have done ten years ago and today is currently being practiced. So I really don’t worry about whether my work later will be applied or not. I’m [an] optimist, all the time an optimist, and time [has] showed me that other work I have done, and later is picked up by the industry. One thing I don’t do well [is] the same thing. I do the work, I leave the space for other people to contribute, I may go back.

KERR:

What were some of your contributions to the theory and technology of formation and well test interpretation?

KUCHUK:

OK, my contribution for well testing is mainly on the interpretation part, and second part is measuring the flow rate accurately, downhole. That can be used to interpret pressure data much better. Second part formation testing, really, I was involved developing the tools, and interpreting the signal that is coming from the tools. I think these are—you know I have done that—in fact, I was involved in developing the software, et cetera, et cetera. And that is—both of them really—in well testing [and] formation testing—both ha[ve] two aspect[s]. One is developing the tool (or part of the group, which is developing the tool). Second, you take the measurements from those tools, whether it’s wireline formation test or well test, et cetera, and interpreting them.

KERR:

So, I have a question, what was the impact of these contributions on the petroleum engineering industry?

KUCHUK:

So, my contribution in the theoretical part [was] basically developing equations, solving what I call partial differential equations, diffusion equations. And, many solutions that I developed over the years, they are used by commercial software. OK? Many of them. And some of them of course [are] used by Schlumberger software. For wireline formation tester, this is exclusively for Schlumberger software, and most of the solutions I developed not myself, [but] with a team, you know. Some of them, we did together. So that really affected, you know, correct interpretation, in getting relevant reservoir parameters. For horizontal wells, I developed maybe tens of solutions for multilayer reservoirs, reservoirs with folds, and you know, fractures, and fractured reservoirs. So, injection, well testing, et cetera, these are—some of them really—the contribution of the interpretation and developing the solution. So let me, a little bit, elaborate that. You can write mathematical solutions, given the problem, the well test problem, but that’s not interpretation. Interpretation is taking that solution, fitting the signal; second is getting characteristics of that solution. What is characteristics? We call flow regimes. You know, basically, certain well fractures, et cetera, behave [in] certain ways. When you look at the signal, it’s important to recognize that behavior, say, “Oh! Well, this is a vertical well, crossed by a vertical fracture. The fracture has, you know, very large conductivity.” So interpretation is that. Developing solutions is important. I did that, but I also did the interpretation. Basically, when you look at the signal, you characterize the signal in terms of what we call flow rate regimes. There are many of them, they come and go.

And during the interpretation, especially when running the tests, it’s important that you see them and you are expecting [them]. If you don’t see them, maybe it’s something wrong with the measurements, maybe we are dealing with some different reservoirs that you’re not told about it. So, anyway, so interpretation, really, I did both part[s]: geological development of solutions, you know, the mathematical equations. In fact, you know, I wrote one paper, the paper is about forty pages. The text part is probably two pages. The text. The rest is equations. But that's not interpretation, but to do the interpretation, I needed that.

KERR:

What do you consider to be the most significant changes that have occurred in the industry over the course of your career?

KUCHUK:

The significant changes that happened in the industry in my career is basically one: disciplines come together, what you call integration. And today, really, I know more geology than I used [to] because that is an essential part. So that is really…you know, I started in the 70s, 80s, most of the time, that is what we know. We know we have a domain, what we know. Later, with integration, we start knowing other things, not only myself. That is one of the big changes. You know, we have friends, geologists, et cetera, et cetera, now we understand better. I think that is the important changes.

Second is really diversity. Diversity in the oil companies, basically. First, diversity in terms of nationalities, and also diversity in terms of gender. You know, today, really, we have a lot of very, very good female engineers and scientists in the oil industry. That was not the case, OK? And I think this was a really—for industry, it is a really great achievement, and in fact, if you, in the 70s, even if you go to the Middle East at the well site, you see very few nationalities. Today, you see the United Nation[s]. I think this is an important change. I think, ok, these are the really important change. Second is really the oil industry, I think today, probably the usage of the new technology, it is much wider than we think. You know ten, fifteen years ago, I went--I was in Russia. I was giving a well test school for one week. A lot of Russian engineers—and then I talked to them, I told them they are using 50’s well test interpretation technology is what we had at that time. But today, even if you go to any place, whatever technology is used here in Houston or New Orleans, similar technology is used elsewhere. But this is a really important change. That was not the case. You know, technology was used a little bit and was dominated by certain nationalities. Today, I think this is [a] great achievement for the industry [to be] able to take the technology to wherever you want.

Of course, SPE has an important role [in] that because maybe you don’t remember, [but] in the 80s, 90s, et cetera, SPE [had] a lot of technology SUMMITS for meetings in China, Russia, this and that. But today, they are having technical meetings, OK? So basically, this is a great achievement that we are now able to take the new technology anywhere in the globe and beyond nationalities.

KERR:

What do you consider some of the biggest challenges facing the industry are in the future?

KUCHUK:

What are the biggest challenges we will face as the oil industry in the future? Some of them are environmental, ok? So basically, we have to solve this, you know, the carbon problem, and I think the gas is contributing immensely. Carbon production of the US is now is the same as [the] 90s, which is a real achievement. But still, we have other politics to deal with, but politics is—not the negative sense. We have to deal with politics, that’s life. Of course, eventually, science will, you know, overcome that. But I think that the switching from—mostly to gas. Very important challenge, and I think, you know, when we switch, when we make that switch--still, you know, we need oil, for sure, for many other reasons, but I think the big challenge today, going more and more gas based, more green based energy consumption. That’s a big challenge.

Of course, now the gas has its own challenges, like the problem of having enough water when you are doing the fracturing. That’s a big challenge. So as an industry, I think we should come up with something that use[s] the least amount of water, reuse, re-treat, et cetera. Another big challenge [will] be how we are going to produce remaining oil. There’s plenty [of] oil, actually. You know, if people ask me, you know…we have plenty [of] oil. Some…is in produced reservoirs, and of course, we call that today EOR [Enhanced Oil Recovery], all those things. I think this is just the beginning. The challenge is there, and I think that if I summarize the challenge, producing the remaining oil, which we call EOR; producing gas and oil from shale reservoirs.

[Audio break]

KERR:

Let’s go ahead and continue along that line of thought…the biggest challenges you said were having enough water, the carbon…

KUCHUK:

OK, OK, I start where I left off…

KERR:

Carbon, the switch to moving towards gas versus oil…

KUCHUK:

So, today, especially in the shale play, what we call, our footprint is too large. With technology, we have to reduce that. And actually, technology is there [in] most of the cases, but I think that having the gas [be] as cheap as it’s ever been, the technology are not going to be used—is not used today, but is going to be used. Then, so the last point really, with this switch, we are going to reduce carbon production, and I think this is going to be a challenge because we have to do this. Otherwise, politician[s] will tell us what to do.

KERR:

What are some of your favorite memories of working in the petroleum engineering industry?

KUCHUK:

OK, my favorite memories [are] many, but I’ll start with [a]very few of them. One is really, I went to this Prudhoe Bay field, North Slope. You know, you see a white blanket forever, in the winter; summer changes. And you have to have this incredible clothes that, you know. And then I worked in the well site; you know, everybody, they check[ed] you continuously. I think this was really almost like you are in space, yes? Really, that was great. I have that picture. And another part, I went to [the] well site [a] number of times. You know, I was part of the drillers, and you know, you enter the pay, you get the logs, you look at the logs, “Oh! Here is the oil!” This is the really exciting part. You know, very exciting—you find something, yes? You see something. Of course, we have to keep this knowledge to us because we are Schlumberger Company, and we should not, we will not tell anybody that we found the oil. However, you know, that was a really exciting part.

And also, another part in my memories—I have a lot of great memories when I was serving [on] the SPE board. We had a meeting in Abu Dhabi. We went on [a] camel ride, and all the exciting stuff. And a lot of other meetings I went to with SPE, et cetera, but one of the things is much more interesting. So, when I was [a] graduate student, I went to my first SPE meeting in Las Vegas. Imagine that you have SPE in Las Vegas. So anyway, we are students, we checked into [a] very cheap hotel, you know, if you remember there was a Hotel 6 or whatever. And then, you know, I checked in, I was coming down to go to [a] meeting, so, I had [an] accident on the stairs. I fly, parallel, on the cement, like this [gestures]. So, I broke all my joints, you know [gestures to the back of his hand] in my left hand, and that took some time to really recover. And this was—of course, today—you know, it’s a sad story, but it’s a nice story that I can tell with pleasure.

KERR:

That’s good. Do you have others that you would like to tell? Think about it for a moment or two, if you’d like.

KUCHUK:

OK.

KERR:

Anecdotal stories, stories about other professionals, engineers, if you will, that you worked with. Maybe some of the top people that you worked with, and such like that. Think about that.

KUCHUK:

So, you know, with Schlumberger, I have worked with many executives. I avoided to have any managerial job. Every time I was offered a managerial, I said, “I am bad at this; you are making [the] wrong decision.” So, I escaped. But like I said, I hired a lot of people. So I trained them; some of them are very capable; I encouraged them to join—to become, you know, managers. The reason that, you know—if we keep managers and technical people totally separate, then there’s going to be a big communication gap. So, often, I would encourage some of the capable people; managing, you know, is not easy.

Actually, I have two stories. One, I have a friend of mine, he was [a] reservoir engineer in one of the location[s]. So one day, he came to me, he said, “I’m going to be marketing manager.” I said, “Look, you know, this is not for you because you work, sometimes you don’t sleep—you know, when we are interpreting the data, this and that, you know, the oil field is twenty-four hours. You don’t stop. So you have to work through the night. You work, this and that. I said, “You know, if you’re going to be marketing manager, you have to have a good sleep. Because you are going to go in front of clients with your hair all over, this and that.” He insisted. Unfortunately, he did, but he survived six months. He left the company, OK? This is a sad part, but I have also one pleasant one.

I hired a reservoir engineer, and then I assigned him to Saudi Arabia. He’s covering the three countries: Kuwait, Bahrain, and Saudi Arabia. He worked there a few years—very capable guy. Now, he’s our chairman. Ok, so I’m really pleased. You know, as I said, I have really many people. I hire great people, and with…my help, they went to [the] top.

KERR:

How has being a member of SPE affected your work and your career?

KUCHUK:

SPE really affected my career. I joined SPE [in] 1973 as a student member (that year that I broke my hand). Anyway, so then—so I worked for a few years, and then I started working for BP. So there was at that time there was a California regional meeting. And then one of my colleagues, actually, Arliss Cove (he was one of the SPE presidents later), he was working there, and he came to me, [and] you know, I’m a young guy, he said, “Look, we need a manager for printing and publication.” You know, in those days, you know the SPE for the California Regional Meeting because today we don’t have, but California was so big. So, you know, printing and publication was very important. You know, you find a printer…this and that. Anyway, so that’s how I started with SPE. I was a Technical Committee Chair for publication and printing for California Regional Meeting.

So, what happens with SPE, you enter once, you never can escape. OK, next year, something else came; after following years, they said, “OK, we need another member for SPE transient—at that time, we call it PTA, Pressure Transient testing Analysis—there was a committee; still there is, I think. And then, I was a member at that time, I was—and then it was, I think, ’95—no, ’85 and ’86. That was a tough year, OK? So, basically, our chairman, of that committee, lost his job, he couldn’t come to [the] meeting. They asked me to chair the committee. Formally, I am not chairman, yes? So then, the following year, they said, “OK, you did a good job, you are chairing this year. Now you are the chairman.” Yes? So then, OK, fine, but here, all this time, you meet other people, you see all the papers, you read, and you know, a meeting like that is very important.

Anyway, so then, I was there, and then, a few years later (still I am in a few committees, this and that), SPE changed the format of the annual meeting. Then, we had a sort of grouping, you know, Reservoir, Logging, Testing, et cetera, et cetera. So now, I was group leader for Reservoir Description and under Geology, Petrophysics, and Well Testing under that. OK, I was a group leader—it’s called Coordinating Committee Chairman. So, I did that for a few years, and then they said, “OK, next year, you are going to be General Chairman of the Annual Meeting. That was the most exciting. That was ’94. And of course, today, we divide that function into two: one is general chairman; one is program technical, but at that time, one person. And you know, running that was exciting, fun, but a lot of work or so, running the whole meeting. And again—you know, this helps you—meeting other people, you make a lot of friends, and you learn many, ok.

Anyway, so then, I went to Dubai, and become one of the board member of the Dubai section. While I am there, I become a board member. Being a board member is also very interesting—it’s hard work, but very interesting because you spend a lot of time with a lot of brilliant people, very good people. You debate, you argue, this and that, but you learn a lot. In fact, I met [a] few of them today. In fact I told one of them, “You are my best SPE president.” Don’t ask me who’s the second best. Anyway, so basically, SPE, you give and take, continuously. You benefit, but you put time. But what I decided about six years ago [was] I will reduce my SPE involvement because at some point, I think I was working only for SPE. No, that’s a joke, but I decided to push younger people, OK? So if somebody asked me, “Will you be a committee member?” I said, “No, no, no, I will nominate someone else.” In fact, I was just asked to ATW in the Middle East, and they asked me to become a committee member, and I nominated someone else. I only take this if there is a need.

For example, a few years ago, three of four years ago--this was before Libya’s internal problem—Libya established an SPE section, yes? And they said, you know, they asked me, “We are going to run some SPE meetings [and] we don’t know what to do.” I said, “OK.” I only accept, you know, these are the exceptions. You know, I nominate, but still, you cannot escape. You know, this year, I was the chairman of the Honorary and Distinguished Member Committee. And next year, I am sure they will find somebody else—something else. You know, SPE, what I am saying, is always fun working with. One thing, I also work with other societies, but SPE, you know, stuff, they work like a clock.

KERR:

What has made working in the petroleum engineering industry so meaningful to you?

KUCHUK:

OK, I think working with industry is great fun for many years. SPE is an essential part of this industry, and SPE, you know, give and take, really. You serve SPE, SPE is very good recognizing that contributions, and I benefitted quite a bit. So that also gives you internal recognition within your company. So then, within your company, you have external contribution, and then vice versa. It really benefits each other very well. And I think that both my company, Schlumberger, is a great company to work with, and also as a society, SPE is a great society to work with because it really gives back something to you as a recognition; [a] platform to speak, [a] platform to publish, OK?

The other side of industry, as I said, industry—you know, one of the character[istics] of this industry is slightly slow on jumping [on] new technology. However, when they adapt, they adapt very well. That happens continuously. So, the time lag is about ten years, OK? But, that ten years, it happens; it never stagnated. So new technology comes and adopted during that ten years, and that keeps going. And this [is] a very challenging industry, and it’s fun working with because you are dealing with—basically, look. Reservoir engineering is, you are dealing with, you know, underground formation[s]. You don’t see, but you only feel through the measurements, and that is really fun because that is like, you know, dealing with uncertainty and trying to find the truth, actually.

And still, it is a very exciting, very dynamic industry. I don’t think it is dying. I think it is just beginning, in my opinion, because every time, new challenges come, and again, two challenges we are facing are reducing our footprint on the environment, and that includes…the carbon production, but I am sure we will. I am a very optimistic person. Again, I—I will close like this: you know, I give SPE talks to young people a few years back. These are all the students come from all over the world. They ask me to give a talk. I give a talk; I finish like this: You know, look, one day, I am going to retire, OK? However, I said, I am not going to leave you soon, alone.