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How Choking, Shut-ins, and Advanced Automation Shape Production in the Appalachian Basin

The Role of Flow Management in Maximizing Efficiency, Profitability and Recovery

December 06, 2024

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The practice of flow rate management has become increasingly sophisticated and common, particularly in the Appalachian Basin, as producers seek to optimize returns in a challenging price environment while maintaining well integrity and long-term productivity.

Advanced Remote Well Management & SCADA systems are allowing operators to:

  • Monitor wellhead pressure thru Remote Terminal Units (RTUs) at wellheads

  • Control flow rates

  • Adjust compression settings

  • Monitor equipment performance

  • Track production data in real-time

Flow Rate Management Methods:

Wellhead Choking:
• Least invasive method • Maintains well integrity • Used for short-term adjustments

  1. Typical Range: • Most wells can be choked back remotely by 5-15% daily without significant issues • More aggressive choking (>20%) requires careful monitoring • Complete shut-in is different from choking

  2. Limiting Factors: • Reservoir characteristics • Wellhead equipment specifications • Gathering system requirements • Contract obligations • Formation pressure

  3. Operational Considerations: • Must maintain minimum velocity for liquids removal • Need to prevent hydrate formation • Consider downstream compression impacts • Monitor wellhead pressure changes

Recent Examples: • EQT's curtailment program focused more on shut-ins rather than choking • Chesapeake used a combination of choking and shut-ins • Most operators prefer complete shut-ins over aggressive choking for significant curtailments

Shut-in Process:
• Complete cessation of production • More dramatic impact • Requires specific procedures • Used for longer-term curtailment
Gathering System Adjustments:
• Compression modifications • Line pressure management • System-wide flow balancing

Recent Examples: • EQT: Curtailed ~1.0 Bcf/d in Q1 2024 • Chesapeake: Production management in Marcellus • Antero: Dynamic flow rate adjustment

Reasons for Flow Adjustments:

Primary Drivers: • Price response (more common in 2023-2024) • Pipeline maintenance • Seasonal demand changes • Storage management • Contract obligations

Increased Frequency Due To: • Lower gas prices • Better technology • More pipeline constraints • Market volatility