1 Introduction
Crude oil, which is a crucial strategic resource in China, plays a significant role in ensuring national energy security. The development of oil resources includes a complex “large system” that requires coordination across various fields and levels. Effectively managing this system is essential for maximizing both economic and social benefits. As the exploration and development of new unconventional oil reserves, like shale oil, increase, the challenges associated with managing these processes become more prominent. Furthermore, the limitations of traditional management models have become more evident, indicating the necessity of innovative approaches to optimize shale oil development outcomes.
Shale oil development involves numerous dialectical relationships that significantly influence its unique characteristics and serve as a theoretical foundation for addressing management challenges. These dialectical relationships represent conflicting yet interconnected links between entities, their components, and inherent dualities (
Veraksa and Basseches, 2022;
Hoon and Baluch, 2020;
Meramveliotakis and Manioudis, 2021). From a global perspective, these dialectical relationships mirror the current state of objective entities. Moreover, from a methodological standpoint, dialectical relationships serve as a universal approach to understanding phenomena. Despite the complex connections among phenomena, they can be comprehended through the analysis of contradictions and unity. This method involves objectively analyzing and synthesizing objects of cognition, exploring the interrelated contradictions among phenomena, and identifying patterns or regularities. This approach enables the accurate and scientific understanding of phenomena, facilitating the development of effective working methods.
Regarding these key theoretical frameworks, scholars and practitioners worldwide have conducted extensive research on dialectical relationships within engineering projects. For instance, Bashir et al. (
2024) examined dialectical relationships in the risk assessment process, while Stegehuis et al. (
2023) investigated the dialectical relationship between revenue and costs. Li (
2020) provided insights into the application of systems engineering management and practical applications in China’s aerospace industry. Pei and Wang (
2022) analyzed the application of systems engineering theory to lunar exploration in our country. Furthermore, in the field of oil and gas development, the Daqing oilfield, as a representative example influenced by dialectical thinking, incorporates the theory of contradiction and unity extensively in its exploration and development process, particularly in effectively addressing primary and non-primary contradictions. This approach offers practical insights, including the understanding that “achieving a new unity of subjectivity and objectivity requires advancement through the method of ‘two-way division’.”
Yu (
2013) and Ma et al. (
2014) conducted analyses on the application of systems engineering concepts in exploration tasks and energy conservation management, respectively.
When compared to management processes in traditional petroleum fields, shale oil reservoirs are influenced by the unique characteristics of their reservoirs and fluids (
Dou et al., 2024), resulting in increased complexity in development laws. The development process requires the mobilization of greater resources, including larger system scales and more significant management challenges. Currently, an effective management model for shale oil development has not yet been established.
The management mode plays a crucial role in ensuring the effectiveness and socioeconomic benefits of shale oil development. It includes fundamental methods and strategic frameworks employed in the operation and management process, reflecting the core attitudes and approaches of the entity toward resource allocation and decision-making. These factors have a significant impact on the efficiency and innovation capability of shale oil development (
Dźwigoł and Trzeciak, 2023). Due to the distinctive nature of shale oil resources, which includes geological characteristics, technological challenges, and environmental impacts, the management mode typically requires comprehensive consideration of various dimensions, such as technological innovation, cost-effectiveness, environmental protection, and social responsibility.
However, traditional management models that prioritize solely economic benefits may encounter limitations in effectively managing shale oil development. For instance, the commonly used hierarchical management model, which emphasizes defined responsibilities and standardized processes (
Masciadra, 2017;
Ershaghi and Al-Abbassi, 2012), has proven to be inefficient and inflexible in responding to rapidly evolving market conditions and technological advancements in shale oil development. Moreover, established project management models like PMBOK (Project Management Body of Knowledge) and PRINCE2 (Project IN Controlled Environment) (
Fitsilis, 2008;
Sargeant et al., 2010) primarily focus on managing projects throughout their lifecycle, prioritizing planning, execution, monitoring, and project closure. Nonetheless, in large-scale oil development projects such as shale oil, effective coordination of resources and time management can present obstacles and pose challenges in adapting to volatile external environments. Due to the high cost and complexity associated with shale oil development, these models, while addressing the entire project lifecycle, require enhanced coordination management across different stages. Furthermore, these models lack the necessary methods that adopt an essential relational perspective to effectively tackle the management challenges in shale oil development. In contrast, the asset management model primarily targets the management and optimization of assets (
Schroeder and Jackson, 2007;
Torres et al., 2016). This approach has demonstrated its effectiveness in various fields. However, implementing the asset model demands extensive data support and advanced analytical tools, leading to high initial implementation costs. Additionally, in the context of shale oil development in China, where the objective is to strike a balance between national energy security and economic benefits, relying solely on a single asset management model may impose limitations on decision-making.
System engineering management is a comprehensive approach that primarily focuses on large-scale projects characterized by interactions among multiple system components. This management approach addresses challenges across various domains, including technology, organization, processes, and personnel. It utilizes interdisciplinary methods to ensure the efficient, orderly, and coordinated design, implementation, operation, and maintenance processes of complex systems (
Daboun et al., 2023). In this approach, systems are viewed as complete entities composed of interconnected, interdependent, constrained, and interactive components and processes. The behavior of individual components within the system is influenced by the overall characteristics of the entire system, created by each component and the combined relationships between them. Typically, systems engineering research focuses on large, complex artificial systems and compound systems. Moreover, the goal of systems engineering is to organize and coordinate the activities of various elements within the system to achieve the overall system objective. It takes into consideration certain objective functions and external environmental constraints. Both qualitative and quantitative methods are employed in systems engineering to optimize the overall goal of the system, combining technical methods with management activities. Additionally, A key aspect of systems engineering management is its emphasis on comprehensiveness, integrality, and cyclicity. The entire lifecycle of a system is considered, and each stage from needs analysis, design, implementation, testing, delivery, and maintenance to retirement is rigorously managed.
The origin of systems engineering can be traced back to the “coordinated method” management model proposed by Professor Luogeng Hua in the early 1960s. This model has found wide applications in areas such as the Daqing oilfield and the forestry sector of Heilongjiang Province, demonstrating positive results (
Qian et al., 2011). Furthermore, the three-dimensional structure of systems engineering, proposed by Hall in 1969, has had a significant influence on systems engineering research methods. Over time, this structure has been increasingly employed to address development challenges within social and economic systems. Moreover, Qian (
1982) put forward the theory and methodology of open complex giant systems, representing an earlier concept of systems engineering management in China. In recent years, with the continuous increase in complex engineering issues and the emergence of the digital upgrade wave, the field of systems engineering management has made significant progress. This progress includes complex project management, sustainability, technological innovation, and the application of information technology.
Cooke-Davies (
2002) conducted in-depth research on the management of complex projects, exploring methods to effectively clarify and manage project complexity. His research emphasized the importance of understanding complexity in project management practices and introduced relevant management methods and tools.
Saleh et al. (
2009) integrated sustainability principles into different stages of systems engineering, with a particular focus on the aerospace sector. Moreover, the study proposed a conceptual framework and methods for sustainable systems engineering, prioritizing the consideration of environmental, social, and economic impacts in the design, implementation, and operation processes of systems.
Crawley et al. (
2015) analyzed how systems engineering methods can support organizational digital transformation, including the optimization of system design and operation using digital twin technology. DeLaurentis and Mavris (
2000) explored the application of artificial intelligence and machine learning technologies in systems engineering to assist engineers in managing large amounts of data, identifying patterns, and optimizing design decisions.
Cheng and Han (
2012) proposed the method of engineering lifecycle management within the framework of engineering management systems thinking to enhance the continuity and coordination of engineering management. These studies have elucidated the essence of systems engineering management principles, adapting them to industrial and technological development. Furthermore, the studies have contributed to promoting systems engineering management models, providing theoretical support for establishing methods for managing shale oil reservoir systems engineering.
However, these studies have mainly focused on methodological exploration, with limited analysis of specific research objectives. Particularly, further research is still required to examine dialectical relationships. Further optimization is needed to address the specific challenges faced in shale oil development.
To address the aforementioned issues, this paper focuses on the Gulong shale oil in the Daqing oilfield as a typical case study. Initially, we analyze four main dialectical relationships in shale oil development, namely “local versus global factors,” “universality versus particularity,” “inheritance versus innovation,” and “primary contradictions versus secondary contradictions.” Based on this analysis and insights from systems engineering theory, this paper introduces targeted strategies for the effective management of shale oil development.
2 Dialectical relationships in development of shale oil reservoirs
The widespread global distribution of shale oil resources underscores its significance as an alternative energy reservoir. China’s prominent position among the top three countries in terms of shale oil reserves worldwide indicates promising prospects for exploration. Currently, China’s terrestrial shale oil exploration and development is undergoing an industrial trial and innovative exploration phase (
Sun et al., 2021;
Sun et al., 2023a). Substantial progress has been made in exploring and developing shale oils in basins such as Songliao, Ordos, Junggar, and Bohai Bay.
Compared with conventional reservoirs, continental shale oil development exhibits distinctive characteristics. These include:
(1) Crude oil primarily resides in the nanopores of shale. Compared to conventional reservoirs, the flow capacity of crude oil within shale formations is significantly lower, presenting considerable challenges for extraction.
(2) Natural fractures in shale formations are well-developed, although their density is limited. Large-scale hydraulic fracturing is often necessary to connect these natural fractures and enhance the flow capacity of crude oil in the reservoir.
(3) The shale oil reservoir demonstrates significant heterogeneity, necessitating different development methods across various areas to ensure efficient extraction.
(4) The reservoirs are characterized by greater depth, higher formation pressures, and higher temperatures. This necessitates precise and efficient engineering operations, along with extensive real-time data analysis and intelligent control, to effectively manage operations.
(5) The development of shale oil involves a complex process that requires the coordinated application of technologies from multiple fields. It necessitates experts with diverse disciplinary backgrounds and the utilization of numerous cutting-edge technologies.
(6) This development process also entails substantial investments and the requirement of significant water resources.
Therefore, in comparison to management methods used in traditional oil reservoirs, shale oil development presents significant demands and challenges. These include conducting development trials, designing rational schemes, adopting new technologies, and controlling costs. This paper aims to construct a new management model tailored to the unique characteristics of shale oil development.
The Gulong formation shale oil formation in the Songliao basin serves as a prime example of a shale oil formation with varying degrees of maturity, ranging from moderate to highly mature. This is demonstrated by the establishment of the Daqing Gulong terrestrial shale oil national demonstration zone. Currently, oil has been discovered throughout the Gulong depression, indicating the potential for large-scale development of Gulong shale oil. Gulong shale oil is characterized as a typical terrestrial pure shale oil, with a clay mineral content ranging from 35%–45%. The pores of Gulong oil primarily exhibit diameters ranging from 10 to 30 nm, with throats measuring 4 to 7 nm, and the permeability is smaller than 0.1 mD. These dimensions are significantly smaller compared to traditional reservoirs, which typically have pore diameters larger than 1000 nm, resulting in relatively high permeability (> 1 mD). The micro-nano-level fracture density of Gulong ranges from 1000 to 3000 fractures per meter. These fractures exist in a complex state influenced by nano-level confined spaces and phase transition. In general, Gulong oil exhibits characteristics of multi-medium, multi-phase, and non-equilibrium states. The unique composition of Gulong shale rock, including its fluid phase, nano pore-fracture system, and transport mechanisms, presents significant challenges in the development and management of shale oil resources. To date, no successful precedents have been observed domestically or internationally.
To address the challenges in the development and management of Gulong shale reservoirs, four dialectical relationships are considered: “partial and whole,” “universality and particularity,” “inheritance and innovations,” and “primary and secondary contradictions” (Fig.1).
2.1 Dialectical relationship between partial and whole factors
The dialectical approach of “partial and whole” necessitates a comprehensive understanding, the establishment of a holistic concept, and a global mindset. Within this framework, selecting an optimal action plan can achieve most long-term goals and enable the seamless integration of partial and whole factors, thereby maximizing overall functionality. Due to the absence of successful commercial precedents for large-scale and efficient development of Gulong shale oil, exploration becomes crucial. The extensive area and significant heterogeneity of Gulong shale oil reserves pose challenges in directly formulating and implementing an overall development plan. Therefore, in the development of Gulong shale oil, it is crucial to adopt a holistic and global approach, prioritizing the selection of an optimal action plan aligned with overall goals. Additionally, addressing local issues to maximize overall functionality is crucial.
2.2 Dialectical relationship between specificity and universality
Discussions on the interplay between specificity and universality in dialectical thinking involve the analysis of common characteristics and unique attributes of phenomena. From a philosophical standpoint, the dialectical unity of generality and particularity reflects a contemplation of the complexities inherent in phenomena (
Jiao 2019;
Li et al., 2022). In the case of the exploitation of ancient Longmaxi shale oil, universality is evident in the common characteristics of shale oil, such as the prevalence of fissures and the challenges associated with hydraulic fracturing. These characteristics are applicable across the entire continental shale oil field. However, in practical development scenarios, specific situations may arise. For instance, in certain areas, the presence of large fractures can result in channeling phenomena, necessitating targeted responses (Fig.2).
Specificity and universality of the Longmaxi shale oil reservoirs are particularly evident in two aspects.
Universality: Shale oil exhibits bedding planes and fractures, presenting challenges for hydraulic fracturing. These planes and fractures often lead to suboptimal fracturing outcomes in continental shale formations. The Longmaxi shale oil reservoir structure predominantly consists of laminations, with numerous fractures per meter. This structure acts as a “double-edged sword,” providing favorable reservoir properties. However, it also significantly limits the expansion of hydraulic fracturing cracks and the mobility range of the matrix. These features represent the general conditions of shale reservoirs.
Universality: In shale oil development, various complex situations may arise, like the occurrence of large fractures in specific areas. For example, during the hydraulic fracturing of a 400-m well network, interference between fractures from different wells resulted in casing damage and other phenomena, highlighting a specific event (Fig.3).
2.3 Dialectical relationship between inheritance and innovation
The dialectical relationship between inheritance and innovation is evident in the philosophy of selection and abandonment within shale oil development. These two aspects are interdependent, mutually influencing, interacting, and coexisting with each other. Moreover, under specific conditions, these factors can transform, illustrating a cyclical pattern of inheritance, innovation, and re-inheritance (
Yuan et al., 2023).
Compared to conventional reservoirs, shale oil reservoirs necessitate the utilization of new technologies on a large scale for their development. However, the current advances in technology and their application show a certain degree of inadequacy, with an excessive reliance on “trial and error” and a lack of standardized management and macro design. This approach leads to heightened risks associated with technological innovation, impeding the continuous improvement and widespread implementation of shale oil development technologies.
2.4 Dialectical relationship between primary and secondary contradictions
The primary and secondary contradictions represent a dialectical relationship that distinguishes and interrelates with each other. The primary contradiction plays a dominant role in the dialectical process, exerting a decisive influence on the direction of development, while the secondary contradiction assumes a subordinate position. However, these contradictions are interdependent and serve as prerequisites for each other (
Sun et al., 2023b;
Wu et al., 2012;
Li et al., 2019;
Liu et al., 2018).
Gulong shale oil development faces two types of contradictions: contradictions between “cost” and “production” and “quality” and “efficiency.”
The main aspect of the contradiction between “cost” and “production” involves the management of fracturing costs. Although the drilling costs of Gulong shale oil are relatively transparent and considered a secondary aspect in cost management, the primary concern shifts to the contradiction between the reservoir transformation effect and fracturing investment. Despite numerous optimizations of Gulong’s fracturing process, its investment cost continued to increase over time. Additionally, the cost structure associated with this fracturing process remains unclear.
Moreover, Gulong shale oil encounters a contradiction between “quality” and “efficiency.” Improving both quality and efficiency has emerged as a major objective in shale oil development, with their interaction, contradiction, and complementarity reflecting the fundamental principles of contradiction theory. The significance of each aspect varies across different stages of shale oil development.
Therefore, the development process of Gulong oil also encounters contradictions, which require clarification and resolution strategies. Furthermore, this development process should adhere to the valuable lessons from the Daqing oilfield based on the twin theories of “contradiction” and “practice” (
Cheng and Han, 2012). Methodological research aids in comprehending development mechanisms, cost structures, and factors controlling quality and efficiency. Integrating this knowledge with field practice facilitates continuous progress in elucidating and devising technological solutions to address the aforementioned significant contradictions.
3 Shortcomings of traditional management models in shale oil development management
Traditional management models for oilfield development are primarily derived from insights and practices in conventional oil and gas extraction. These models prioritize phased construction, with core components including quality, costs, and schedule goals. These goals are executed and categorized based on implementation stages and stakeholder involvement. However, there are four limitations when managing shale oil reservoirs like Gulong:
(1) Overemphasizing local factors without considering the broader context can undermine development confidence.
The traditional engineering management model focuses on improving the efficiency and effectiveness of engineering construction. However, it faces significant challenges in fully understanding engineering projects, leading to fragmentation, inconsistent goals, and dispersed responsibilities within engineering management organizations. Within this framework, engineering managers often concentrate on specific subjects or functions within particular stages. Similarly, participants tend to prioritize their local interests, sometimes overlooking or neglecting the broader goals and standards of the project over its entire lifecycle. This ultimately reduces the overall value of the project and hampers the achievement of comprehensive lifecycle objectives. The management framework lacks a broader perspective, failing to comprehensively address factors over a longer timeframe in a systematic manner. When specific results are not achieved within designated periods, stages, or regions, it often prompts scrutiny of the overall plan, which can potentially diminish development confidence.
Solely focusing on the outcomes of individual trial areas in the development of Gulong shale oil, without considering them as “test analysis objects” and references for subsequent development plans, can result in short-sighted scheme formulation. If development results are achieved without adequate problem discovery and solution, it can impede the overall development of shale oil. On the other hand, within the traditional management model, poor outcomes in individual trial areas due to inadequate consideration of their role as “test sites” may undermine development confidence.
Therefore, to enhance the overall value of engineering projects and achieve goals throughout their entire lifecycle, it is crucial to thoroughly review and optimize traditional engineering management models. Additionally, adopting a more comprehensive and systematic management perspective and method is essential.
(2) Overemphasis on specificity and disregard for generality can lead to decision-making biases. Shale oil reservoirs display considerable heterogeneity and distinct characteristics in different regions. Nonetheless, it is important to establish universal principles for shale oil development. The conventional approach to managing development tends to excessively prioritize regions with specific geological and fluid conditions, often neglecting more widely applicable principles and strategies. This can result in irrational decisions when it comes to development.
For instance, while inter-well interference has been observed in Gulong shale oil at the previously mentioned well spacing of 400 m, this occurrence is relatively rare and is mainly attributed to reservoir heterogeneity rather than being a widespread issue. On the other hand, shale oil reservoirs typically exhibit limited fracture extension lengths and inadequate matrix movement distances, among other common features. Simply addressing inter-well interference in individual wells and uniformly increasing well spacing without conducting a thorough assessment makes it challenging to effectively manage inter-well reserves. This can lead to a significant waste of reserves and difficulties in replenishing energy in later stages, increasing the risk and cost of densification. Consequently, it is crucial to maintain an optimal well spacing that aligns with general shale oil development strategies.
(3) The relationship between inheritance and innovation involves embracing traditional principles alongside innovative practices. This entails integrating insights from past practices with innovative approaches, managing risks during implementation, and enhancing the effectiveness of applications.
In recent years, rapid advancements in shale oil development technology have introduced numerous new techniques and improvements, each with the potential to significantly enhance oil recovery or reduce costs. However, this progress has also led managers to focus excessively on “innovating for the sake of innovation,” disregarding valuable insights inherited from previous research. Such oversight can increase development risks.
For example, during the initial phases of Gulong shale oil development, insights from other shale oil reservoirs were incorporated, resulting in the adoption of a wellbore material system comprising “high guar gel ratio fracturing fluid + large particle size proppant,” which yielded significant results. However, subsequent attempts to reduce costs by switching to “slickwater + small particle size proppant” in platform wells did not yield satisfactory results in practical experience. Therefore, a pragmatic approach is crucial for shale oil development, combining innovation within an inherited framework while prioritizing practicality and effectiveness. Otherwise, this approach could hinder the progress of large-scale shale oil development.
(4) An inversion of primary and secondary contradictions can disrupt the priority order, thereby affecting the overall effectiveness of the development process.
The primary and secondary contradictions in different stages of shale oil reservoirs indicate significant temporal characteristics. However, traditional management models often neglect these dynamic shifts in contradictory relationships, indicating the need for improved flexibility and specificity in decision-making processes.
Moreover, a lack of clarity regarding primary and secondary contradictions can lead to an overemphasis on cost reduction, which may cause significant reductions in production and revenue. Additionally, traditional management models might introduce biases in analyzing primary cost contradictions. Unlike conventional reservoirs, the cost structure of shale oil development varies significantly. Although traditional cost control measures in conventional reservoirs often focus on reducing drilling costs, they fail to recognize the significant influence of fracturing costs on the profitability of shale oil development. Consequently, inaccurate primary cost assessments may lead to inadequate cost management strategies.
4 Strategies for managing shale oil development system engineering
This paper focuses on systems engineering management and addresses the quadruple dialectical relationships in shale oil reservoir development management: “part and whole,” “universality and specificity,” “inheritance and innovation,” and “primary and secondary contradictions,” along with deficiencies in traditional management models. Additionally, the paper extensively examines the holistic nature of shale oil development to enhance the optimization of the entire project life cycle. Moreover, this paper explores the “whole and part” and “part and part” interconnections and interactions within the engineering system through a broader perspective, wider vision, longer timeframe, and systemic approach. An “Integrated Dialectical Four-Domain Coupling Management” approach has been developed for the engineering management of shale oil development systems. This model views the development system as a dynamic entity with interconnected facets, enabling integrated management.
The implementation of the “Integrated Dialectical Four-Domain Coupling Management” approach improves the internal management and decision-making processes of shale oil development through systematic thinking and dialectical principles. The management of shale oil development is analyzed and divided into various dimensions, considering the spatial, disciplinary, technological, and temporal domains, as well as the dialectical relationships between “part and whole,” “universality and specificity,” “inheritance and innovation,” and “primary and secondary contradictions.” This segmentation fosters synergy among different components and between components and the entire development system. Furthermore, interconnected measures mutually reinforce one another, effectively enhancing the management outcomes of shale oil development (Fig.4).
Comprehensive shale oil development involves four domains: spatial, disciplinary, technical, and temporal. The spatial domain focuses on the dialectical relationship between individual components and the entire system. It employs a global deployment strategy for test areas to establish benchmarks and increase confidence in the overall reservoir development plan through localized exploration and analysis. This approach effectively combats the tendency of traditional management models to prioritize specific areas over the entire system, which often results in reduced confidence in development efforts. The disciplinary domain addresses the dialectical relationship between universality and particularity. It combines geological and engineering integration management, emphasizing universal principles while considering particularities. This approach helps correct decision-making biases resulting from an excessive focus on specific aspects rather than the broader aspects of development. The technical domain tackles the dialectical relationship between inheritance and innovation. It advocates for a combination of established practices with innovative approaches to mitigate the risks associated with solely pursuing innovation. This balance ensures effective implementation and reduces associated risks. The temporal domain deals with the dialectical relationship between primary and secondary contradictions. It dynamically coordinates these contradictions across different phases, considering their changes over time. This approach addresses issues in traditional management models where reversing primary and secondary contradictions negatively impact development outcomes. Furthermore, these domains are closely interconnected. For example, the geological and engineering integration approach in the disciplinary domain serves as a data basis for the development plan in the temporal domain. The technical domain provides essential support to the development plan in the spatial domain. Additionally, efficient coordination of production costs and quality efficiency in the temporal domain supports the implementation of both test area and overall reservoir plans.
4.1 Global deployment of test areas to elucidate the dialectical relationship between part and whole
In shale oil development, the relationship between individual components and the larger development system is of utmost importance. The strategic establishment of test areas on a global scale serves as the foundation for enhancing confidence in the development process by functioning as experimental grounds. Industry experts collaborate with Gulong shale oil to analyze the initial data collected on the target reservoir structure, rock fluid properties, and natural fracture density with the aim of identifying the most favorable regions within the reservoirs, commonly known as the “sweet spots,” and conducting pilot tests. The exploratory nature of these pilot test areas, coupled with the inherent challenges of Gulong shale oil development, may occasionally lead to suboptimal outcomes, consequently giving rise to concerns and uncertainty. However, it is vital to capitalize on these instances as an opportunity to conduct a comprehensive analysis of the underlying issues, guided by sound epistemology. This analysis, in turn, aids in the formulation of targeted countermeasures to address any identified problems, thereby refining and enhancing development plans with effective strategies while discarding ineffective methods. This iterative process continually improves the development outcomes of subsequent blocks. Research has shown that firm decision-making and adherence to a structured workflow, including practice, recognition, verification, deepening, re-practice, summary, and enhancement, can serve to alleviate uncertainties and foster industry confidence. This ongoing optimization and thorough analysis of demonstration areas contribute to the formulation of a comprehensive development plan, ultimately achieving substantial benefits for Gulong oil.
Presently, in Gulong shale oil development, this management strategy actively coordinates the relationship between the entire system and its components, effectively addressing the issue of discouragement and abandonment resulting from setbacks in individual test areas, which often occur under traditional management models. Furthermore, the management strategy astutely examines the factors contributing to relatively low production levels in well groups and individual wells, thereby providing a foundation for optimizing development plans. Additionally, the management strategy helps counterbalance the inclination of traditional management models to prioritize short-term local gains at the expense of long-term overall benefits. This acknowledgment underscores the strategic significance of test areas in experimentally evaluating and comparing different plans. The continual learning derived from the experiences and insights of initial test areas within the “Integrated Dialectical Four-Domain Coupling Management” significantly contributes to the continuous refinement of development plans, thereby greatly enhancing the development outcomes of subsequent production wells and platforms.
4.2 Integrated geological engineering management to address the dialectical relationship between universality and specificity
To address the dialectical relationship between universality and specificity, integrated geological engineering management aims to optimize well spacing and fracturing scale. This optimization enhances the rationality of development decisions. The systematic integration and advancement of geological engineering systems are crucial for efficiently exploring and developing unconventional and complex oil and gas reservoirs in China (
Sun et al., 2021;
Sun et al., 2023a). The theory of oil and gas geological engineering systems suggests that large-scale oil and gas development is an integrated entity with complex interactions. This development system comprises geological systems and their subsystems, as well as engineering systems and their subsystems. The primary goal of the system is to maximize the recovery rate and ensure reasonable economic viability throughout its entire lifecycle. To achieve these goals, it is necessary to overcome disciplinary obsessions, professional barriers, and management boundaries. Through multidisciplinary research and multi-department coordination, adopting a “point, line, surface” approach, and leveraging data fusion and knowledge sharing, the development system achieves seamless integration across all elements, stages, and processes. This approach establishes a reliable and effective large system in its initial stage using simple theories and technologies. Furthermore, the system evolves into an efficient and remarkably large system in its advanced stage through the application of advanced theories and technologies.
Guided by the aforementioned philosophy, Gulong shale oil development has effectively bridged the gap between geological and engineering aspects inherent in traditional development management models. This has enabled data sharing and research collaboration, leading to the emergence of a new paradigm where engineering integrates with geological research, and engineering practice depends on geology.
For instance, in the fracturing design process, significant emphasis was placed on analyzing reservoir geological characteristics. Over 8,000 m of core length was collected, resulting in a vast accumulation of geological data. This data provides valuable guidance for reservoir and oil production engineering design. Therefore, the geological and engineering teams closely collaborate to extensively analyze natural fracture development, exploring both macro and micro aspects, and comprehensively considering universality and reservoir utilization. The teams adhere to the concept of establishing a one-time well network, optimizing well spacing, and ensuring fracturing deployment. Additionally, they implement a one-well-one-strategy system. By comprehensively considering both universality and reservoir utilization, the arrangement of well spacing and fracturing deployment is optimized to address the challenges of specificity. This approach facilitates the practical implementation of theoretical principles related to shale oil development and the progression of development practices from specificity to universality.
4.3 Implementing principle-based innovation and balancing universality and specificity through learning and creativity
The development process of Gulong continental shale oil follows an integrated organizational approach that involves production, scientific research, experimentation, and promotion. With a focus on practical application in production, shale oil development prioritizes experimentation in the R&D application process, in response to the demands of exploration and development. An adaptability analysis of current advanced technologies is conducted to mitigate implementation risks, through comprehensive elucidation and summarization of previous research achievements and insights.
To address the shortcomings of current technologies, proactive technological innovations are explored to overcome key challenges. The advancement of each technology contributes to its systematic promotion and integration into the development process, ensuring a seamless connection between research, experimentation, and promotion. This approach facilitates research progress and the transition of outcomes into industrial-scale applications, thereby enhancing the goal-oriented and practical nature of innovation.
Research efforts have primarily focused on addressing various technical challenges encountered in the development of Gulong continental shale oil. These challenges include enrichment mechanisms, fluid occurrence characteristics, development percolation mechanisms, and effective energy supplementation methods. This paper aims to address the urgent challenges in Gulong continental shale oil development. Consequently, a new system is established to scale, standardize, and upgrade new technologies in a normative manner (
Jiao 2019). Key technologies developed through innovations, new production tools, and processes are rapidly standardized and normalized to meet production demands. This standardization allows technology to adapt to new production requirements. Moreover, facilitating the matching of technology promotes its widespread application, leading to a virtuous cycle of gradual technological advancements. For instance, the development process of Gulong shale oil necessitates serialized and standardized research and development to prepare and optimize new products, such as effective energy supplementation injection media. Upon creating these products, corresponding technological measures are implemented, new standards are established, technical gaps are refined, and new technologies are introduced. This continuous process propels the integrated advancement of new technologies.
4.4 Implementing phase-wise dynamic coordination to address the dialectical relationship between primary and secondary contradictions
To address the contradiction between “production” and “cost,” it is crucial to reduce investment costs. This approach involves increasing initial production levels to ensure long-term stability and improving annual single-well EUR and oil recovery rates. However, caution must be exercised to prevent compromising production by reducing single-well investments. Additionally, it is crucial to establish standards to ensure the optimal alignment between investment and various factors, including horizontal section length, fracturing scale, single-well capacity, and single-well EUR. Standard well templates should be developed and regularly updated for different oil layers on an annual basis. This process involves establishing a relationship between single-well limit control reserves, minimum single-well production, minimum single-well EUR, ultimate recovery rate, total costs, and achieving an internal rate of return of 6%. Moreover, a cost composition analysis is required to identify the optimal main technology. Comprehensive research on the classification, functionality, operational ease, post-fracture evaluation, and cost mechanism of well materials elucidated cost control strategies based on the relationship between cost and optimized main technology. Prioritizing low-cost clean fracturing fluids and other technologies can address the primary contradiction, leading to cost reduction and improvements in economic and social benefits.
To address the contradiction between “quality” and “efficiency,” in the initial stage of shale oil development, it is crucial to establish high-quality core development technologies. With the advancement of shale oilfields, the focus should shift to improving efficiency. Hence, in Gulong shale oil development, the primary focus should be on achieving “quality improvement” through enhancing drilling encounter rates, optimizing reservoir transformation effects, and refining pressure controlling modes. As Gulong’s development progresses, production efficiency can gradually enhance through intelligent upgrades and green development approaches.
Through the implementation of these measures, Gulong shale oil operations have effectively enhanced production organization support. This is complemented by market-oriented management, demonstration area cost control, and concurrent technical iteration upgrades. This integrated approach has led to both cost reduction and improvement in single-well production simultaneously.
5 Refinement of management model application
The implementation of the “Integrated Dialectical Four-Domain Coupling Management” approach in the development process has greatly improved the management and development outcomes of Gulong shale oil in China’s Daqing oilfield. The utilization of the “Integrated Dialectical Four-Domain Coupling” management model in the development process can substantially enhance the effectiveness of Gulong shale oil development in the Daqing Oilfield. This improvement has been directly facilitated by the management model and indirectly by the technological advancements resulting from its application.
5.1 Achieving initial pilot test objectives and extracting key insights to elucidate technical policies for full-scale development
By implementing a globally deployed test strategy and following the development principles of “steady progress, problem identification, and iterative solutions,” several development test well groups were executed according to the reservoir development system plan. Each pilot test area had specific objectives and conducted comparative tests on methods for deploying well networks, fracturing modes, and production systems. Additionally, by integrating the principles of geological engineering, a rational engineering development model was established to accommodate different geological conditions. This approach effectively balanced the relationship between universality and specificity and resolved contradictions between production and cost as well as quality and efficiency.
5.2 Addressing technical “bottlenecks” to enable key engineering technologies for demonstration area construction
With improvements based on the “Integrated Dialectical Four-Domain Coupling Management” and driven by a combination of inheritance and innovation, the horizontal well drilling technology in the Gulong oilfield has undergone significant advancements. A core technical system has been established, featuring efficient plugging and collapse prevention using oil-based drilling fluid technology, “three majors and two highs” drilling parameters, and a triple-initiation “one-trip drilling” approach. After six rounds of well construction, the optimal drilling learning curve decreased to 12.49 days, and the construction technology template was upgraded to version 3.0. Moreover, the composite fracturing technology underwent iterative upgrades, leading to the innovative development of a fracturing feature technology known as “reverse mixing construction-high-viscosity main fluid-large particle size support-CO2 preplacement-fewer clusters per segment main process.” This approach has demonstrated significant production enhancement effects.
5.3 Positive outcomes of Gulong shale oil development in enhancing confidence and methodological assurance for further large-scale development
By implementing the “Integrated Dialectical Four-Domain Coupling Management model” and leveraging the technological advancements facilitated by this model, Gulong oilfield has achieved higher production levels across the Q2, Q3, and Q9 layers compared to its production levels during the early development stages. Horizontal well tests have yielded production rates ranging from 4.4 to 34.2 t/d, with core area Q9 layer horizontal wells demonstrating initial productions exceeding 20 t/d, indicating a relatively stable production trend. The predicted original oil EUR was estimated to range from 20,000 to 31,000 tons, with a total oil and gas equivalent forecast ranging from 32,000 to 43,000 tons, implying positive development outcomes. These achievements have bolstered confidence in large-scale development and provided valuable guidance for the establishment of a national-level shale oil demonstration area.
6 Conclusions
The challenges encountered in the development and management of continental shale oil reservoirs in China, characterized by low reservoir permeability and poor crude oil mobility, emphasize the importance of addressing four dialectical relationships: “partial and whole,” “universality and particularity,” “inheritance and innovation,” and “primary and secondary contradictions.” These dialectics are crucial for overcoming challenges in Gulong’s shale oil development.
Traditional oil field development management models have been significantly influenced by practices from conventional oil and gas resource development. However, the application of these models to shale oil reservoir management, particularly in the Gulong oilfield, has encountered four limitations. First, prioritizing local aspects over the overall aspect has diminished development confidence. Secondly, an excessive focus on particularities instead of universality has led to decision-making biases. Thirdly, an excessive emphasis on innovation instead of established practices has increased implementation risks. Lastly, misunderstanding the significance of primary and secondary contradictions has affected the effectiveness of development. As a result, the applicability of traditional management models to shale oil development is limited.
To address the four dialectical relationships inherent in Gulong’s shale oil reservoirs, innovative management practices have been implemented to overcome development challenges and tackle the limitations of traditional management models. The management innovation and practical processes of Gulong’s shale oil have incorporated four measures to optimize development outcomes.
First, the comprehensive construction of trial areas has addressed the relationship between partial and whole, thereby enhancing development confidence. Second, the integration of geological engineering and optimization of well spacing has tackled the balance between universality and particularity, ensuring rational development decisions. Third, the advocacy of both principles and innovative ideas has addressed the relationship between inheritance and innovation, combining past insights with innovative approaches to mitigate risks and enhance the effectiveness of the development process. Lastly, phase analysis and coordination have elucidated the relationship between primary and secondary contradictions, thereby improving development effectiveness and achieving optimal synergy. These measures have significantly increased Gulong’s shale oil management standards, ensuring the success of national-level construction efforts for shale oil demonstration zones.
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