MAXIMIZING OIL RECOVERY EFFICIENCY AND SEQUESTRATION OF CO - - PowerPoint PPT Presentation

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MAXIMIZING OIL RECOVERY EFFICIENCY AND SEQUESTRATION OF CO SEQUESTRATION OF CO 2 Future Oil Future Oil Future Oil Future Oil Recovery Recovery WITH GAME CHANGER Efficiency Efficiency 60%+ 60%+ CO 2 -EOR TECHNOLOGY Prepared by:

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SLIDE 1

MAXIMIZING OIL RECOVERY EFFICIENCY AND SEQUESTRATION OF CO

Future Oil Future Oil

SEQUESTRATION OF CO2 WITH “GAME CHANGER” CO2-EOR TECHNOLOGY

Future Oil Recovery Efficiency

60%+

Future Oil Recovery Efficiency

60%+

Prepared by:

Vello A. Kuuskraa, President Advanced Resources International

Today’s Oil Recovery Today’s Oil Recovery

Advanced Resources International

Recovery Efficiency

33%

Recovery Efficiency

33%

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SLIDE 2

SPE DISTINGUISHED LECTURER SERIES

is funded principally through a grant of the

SPE FOUNDATION

The Society gratefully acknowledges those companies that support the program by allowing their professionals by allowing their professionals to participate as Lecturers.

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And special thanks to The American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME) for their contribution to the program.

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SLIDE 3

BACKGROUND BACKGROUND

  • 1. Status and Outlook for CO2-EOR
  • 2. “Game Changer” CO2-EOR Technology

g

2

gy

  • Increasing Oil Recovery Efficiency
  • Expanding CO2 Storage Capacity

p g

2

g p y

  • 3. “Early Application” of CO2-EOR

4 Summary

  • 4. Summary

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SLIDE 4

U.S. CO2-EOR ACTIVITY

Number of CO2-EOR Projects Natural CO2 Source Industrial CO2 Source

82

2

CO2 Pipeline Proposed CO2 Pipeline Commercial CO2-EOR Fields Dakota Coal Gasification Plant Antrim Gas LaBarge Gas Plant Enid Fertilizer Plant McElmo Dome

9 3

Antrim Gas Plant

Currently, 82 CO2-EOR projects provide 237,000 B/D of production

2 1 1

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Val Verde Gas Plants Plant Jackson Dome Sheep Mountain Bravo Dome

6 6 57

production Affordable natural CO2 launched CO2-EOR activity in the 1980’s

Gas Plants

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Federal tax credits (Sec.43) and state severance tax relief still encourage CO2-EOR

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GROWTH OF CO2-EOR PRODUCTION IN THE U.S.

2

250,000

y)

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200,000

barrels/day

Gulf Coast/Other Mid-Continent Rocky Mountains Permian Basin

150,000

Recovery (b

50,000 100,000

anced Oil R

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

Enha

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5 Source: Oil and Gas Journal, 2002.

Year

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SLIDE 6

LARGE VOLUMES OF DOMESTIC OIL REMAIN “STRANDED” AFTER PRIMARY/SECONDARY OIL RECOVERY

Original Oil In-Place: 582 B Barrels* “St d d” Oil I Pl 390 B B l * “Stranded” Oil In-Place: 390 B Barrels*

Future Challenge 390 Billion Barrels Cumulative Production Cumulative Production 172 Billion Barrels Proved Reserves 20 Billion Barrels

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*All domestic basins except the Appalachian Basin. Source: Advanced Resources Int’l. (2005)

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SLIDE 7

OUTLOOK FOR CO2-EOR

Recently completed “basin studies” of applying “state-of-the-art” CO2-EOR in the U.S. indicate:

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  • Nearly 89 billion barrels of technically recoverable

resource,

  • From 4 to 47 billion barrels of economically
  • From 4 to 47 billion barrels of economically

recoverable resource.

Results are based on applying streamline i i l ti t 1 581 l il i reservoir simulation to 1,581 large oil reservoirs (two thirds of U.S. oil production).

Available on the U.S. DOE web site. http://www.fe.doe.gov/programs/oilgas/eor/Ten_Basin- Oriented_CO2-EOR_Assessments.html

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ECONOMICALLY RECOVERABLE RESOURCES FROM CO2-EOR RESOURCES FROM CO2 EOR

“Traditional CO2-EOR Technology” “State of the Art” CO2-EOR Technology tional, able Oil 40 50

Improved Economic Improved Economic

46.8 Barrels of Addit cally Recovera 30

Improved Economic Improved Economic Conditions Conditions Current Economic Conditions Current Economic Conditions

24.1 Billion B Economi 3 8 20 10 High Cost CO2/

  • Mod. Oil Price/

Hi h Ri k High Cost CO2/

  • Mod. Oil Price/

L Ri k Low Cost CO2/ Higher Oil Price Low Risk 3.8

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High Risk Low Risk Low Risk

Assumptions:

  • CO2 Costs ($/Mcf): High = 5% oil price; Low = 2% oil price.
  • Oil Price ($/Barrel): Moderate = $30; High = $40.
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SLIDE 9

“NEXT GENERATION” CO2-EOR TECHNOLOGY NEXT GENERATION CO2 EOR TECHNOLOGY

Gravity-stable laboratory core floods can recover essentially y y y all of the residual oil. Reservoir modeling and selected field tests also show that high oil recovery efficiencies are possible with innovative applications of CO2-EOR. Process designs that improve CO2 contact with the reservoir can facilitate high oil recovery efficiencies. So far except for a handful of cases the actual performance So far, except for a handful of cases, the actual performance

  • f CO2-EOR has been less than optimum:
  • Geologically complex reservoir settings
  • Lack of “real time” information on performance
  • Limited process control capacity

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SLIDE 10

LIMITATIONS OF PAST PERFORMANCE

Because of high CO2 costs and lack of information and process control, the great majority of past-CO2 floods have used insufficient volumes of CO2.

Means (San Andres) @ 2:1 WAG Ratio

1.0 0.9

Injected CO2 vs Oil Recovery Sweep Efficiency in Miscible Flooding

insufficient volumes of CO2.

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0.8 0.7 0.6 0 5

V

Efficiency, EA

20 15 covery - % OOIP 0.8 HCPV 0.6 HCPV

0.5 0.4 0.3 0.2

5.0 2.0 3.0 1.0 V pD 1.5 0.6

Sweep E

V at B.T. vs. M

pD

10 5 ntal Tertiary Rec 0.4 HCPV 0.2 HCPV

Note: VpD is displaceable fluid pore volumes of CO2 injected.

0.1 0.2 0.5 1 2 10 5 50 20 200 100 1000 500

0.1 0.2

Mobility Ratio, M

40 30 20 50 10 Years Increme

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Source: Claridge, E.L., “Prediction of Recovery in Unstable Miscible Displacement”, SPE (April 1972).

Source: SPE 24928 (1992)

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SLIDE 11

LIMITATIONS OF PAST PERFORMANCE

In many CO2 floods, the injected CO achieved only

Oil and Water

injected CO2 achieved only limited contact with the reservoir:

Vi fi i

Water

  • Viscous fingering
  • Gravity override

Addition of viscosity

Oil and Water Waterflood (High Mobility Ratio)

enhancers could help improve the mobility ratio and reservoir contact.

Oil and Water Polymer In Water Water Viscosity Enhanced Flood (Improved Mobility Ratio)

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11 Source: Adapted by Advanced Resources Int’l from “Enhanced Oil Recovery”, D.W. Green and G. P. Willhite, SPE, 1998.

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SLIDE 12

REVIEW OF PAST PERFORMANCE

Relative Location of the Water Front

A major barrier is the inability to target the injected CO to reservoir

478 D 368 Days

Layer 1 (High Sor, Low k) Layer 2 (Low Sor, High k)

Water

Relative Location of the Water Front

injected CO2 to reservoir strata with high residual oil saturation.

100 200 300 1839 Days (Channeling in Layer 2) 478 Days (Breakthrough)

The figures show:

  • Higher oil

saturation/lower

100 200 300 Distance, ft

Source: Adapted by Advanced Resources Int’l from “Enhanced Oil Recovery”, D.W. Green and

  • G. P. Willhite, SPE, 1998.

Well 27-6 Injection Profile

permeability portion of the reservoir is inefficiently swept;

Depth 6,350 Well 27-6 Injection Profile

(Before) (After)

  • CO2 channeling can be

mitigated with well workover.

20 40 60 80 100

6,900 D

20 40 60 80 100

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20 40 60 80 100

6,900

% Injected Before 20 40 60 80 100 % Injected After

Source: “SACROC Unit CO2 Flood: Multidisciplinary Team Improves Reservoir Management and Decreases Operating Costs”, J.T. Hawkins, et al., SPE Reservoir Engineering, August 1996.

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SLIDE 13

ARE HIGHER OIL RECOVERY EFFICIENCIES ACHIEVABLE? ACHIEVABLE?

Example Carbonate Field Oil Recovery Efficiencies

80%

S lt C k Jay

y Factor

Salt Creek Means

Recovery

Time

2003 Recovery

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Source: Three ExxonMobil Oil Fields, SPE 88770 (2004)

Time

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SLIDE 14

“GAME CHANGER” CO -EOR TECHNOLOGY GAME CHANGER CO2-EOR TECHNOLOGY

The DOE report, “Evaluating the Potential for “Game Changer” R i f f t CO EOR fl d g g Improvements in Oil Recovery Efficiency from CO2-Enhanced Oil Recovery”:

  • Reviews performance of past CO2-EOR floods.
  • Sets forth theoretically and scientifically possible

advances in technology for CO2-EOR.

  • Examines how much “game changer” CO2-EOR

technology would increase oil recovery and CO2 storage capacity. storage capacity.

Available on the U.S. DOE web site. http://www.fe.doe.gov/programs/oilgas/publications/eor_co 2/G Ch D t df

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2/Game_Changer_Document.pdf

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“GAME CHANGER” CO2-EOR TECHNOLOGY (Cont’d) GAME CHANGER CO2 EOR TECHNOLOGY (Cont d)

  • Innovative Flood Design and Well Placement

g

  • Viscosity and Miscibility Enhancement
  • Increased Volume of CO2 Injection

2

j

  • Flood Performance Diagnostics and Control

– Inter-disciplinary technical teams p y – 4-D seismic – Instrumented observation wells Instrumented observation wells – Zone-by-zone performance information

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ACHIEVING 60+% OIL RECOVERY EFFICIENCY WITH “GAME CHANGER” CO2-EOR TECHNOLOGY

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Original Oil In Place: 309 Billion Barrels (Six U.S. Basins/Areas)

Cumulative Production 92 Billion Barrels Remaining Oil In-Place 121 Billion Barrels 92 Billion Barrels Proved Reserves 12 Billion Barrels “Game Changer” CO2-EOR 84 Billion Barrels “St t f th A t” CO EOR

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Source: Advanced Resources International, 2005

“State-of-the-Art” CO2-EOR 41 Billion Barrels

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INTEGRATING CO2-EOR AND CO2 STORAGE

Expanding CO2 Storage Capacity: A Case Study. Large Gulf C t il i ith 340 illi b l (OOIP) i th i Coast oil reservoir with 340 million barrels (OOIP) in the main pay zone. Another 100 million barrels (OIP) in the underlying 130 feet of residual oil zone and an underlying saline reservoir 195 feet thick.

  • Main Pay Zone:

– Depth - - 14,000 feet – Net Pay - - 325 feet Initial Pressure 6 620 psi – Oil Gravity - - 33oAPI – Porosity - - 29%

  • Primary/Secondary Oil Recovery: 153 million barrels (45% of OOIP)

– Initial Pressure - - 6,620 psi – Miscibility Pressure - - 3,250 psi

Theoretical CO2 storage capacity: 2,710 Bcf (143 million tonnes)

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INTEGRATING CO2-EOR AND CO2 STORAGE (Cont’d)

State-of-the-Art. Vertical wells; 1 HCPV of CO2 (purchased and

INTEGRATING CO2 EOR AND CO2 STORAGE (Cont d)

State of the Art. Vertical wells; 1 HCPV of CO2 (purchased and recycled CO2); @ 1:1 WAG. Alternative Design.

  • Gravity-stable CO2 injection with horizontal production wells.
  • Targeting main pay zone, plus residual oil zone and

underlying saline reservoir underlying saline reservoir.

  • Injecting continuous CO2 (no water); continuing to inject CO2

after completion of oil recovery.

  • Instituting rigorous diagnostic and monitoring.

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INTEGRATING CO2-EOR AND CO2 STORAGE (Cont’d)

CO2 Source CO2 Source Oil to Market Oil to Market Production Well Production Well CO2 Injection CO2 Injection CO CO CO2 Recycled CO2 Recycled Swept Area Swept Area Current Water Oil Contact Current Water Oil Contact Original Water Original Water Stage #1 Stage #1 Stage #2 Stage #2 Unswept Area Unswept Area Oil Bank Oil Bank

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Water Oil Contact Water Oil Contact Stage #3 Stage #3 TZ/ROZ TZ/ROZ Saline Reservoir Saline Reservoir

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INTEGRATING CO2-EOR AND CO2 STORAGE (Cont’d)

With alternative CO2 storage and EOR design, much more CO2 can be stored and more oil becomes potentially recoverable. p y The additional oil produced is “GREEN OIL”.

“State of the Art” “Next Generation” (millions) (millions) CO2 Storage (tonnes) 19 109 St C it Utili ti 13% 76% Storage Capacity Utilization 13% 76% Oil Recovery (barrels) 64 180 % Carbon Neutral (“Green Oil”) 80% 160%

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SLIDE 21

Weyburn Enhanced Oil Recovery Project

(An Operating Project Maximizing Oil Recovery and CO2 Storage)

  • Largest CO2 EOR project in Canada:

– OOIP 1.4 Bbbls 155 Mbbls incremental – 155 Mbbls incremental

  • Outstanding EOR response
  • World’s largest geological CO2

sequestration project q p j

– 2.4 MMt/year (current) – 7 MMt to date – 23 MMt with EOR 55 MMt ith EOR/ t ti

Regina

Weyburn

Canada

– 55 MMt with EOR/sequestration

Weyburn

Saskatchewan Manitoba

Canada USA

USA

Beulah

North Dakota Montana

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CO2

Beulah

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“EARLY APPLICATION” OF CO2-EOR

Improving Revenues and Profits: A Case Study. Large, 2.4 billi b l (OOIP) P i B i il i billion barrels (OOIP) Permian Basin oil reservoir.

  • Depth - - 5,200

Gravity 33o API

  • Net Pay - - 141 ft.

Initial Pressure 1 850 psi

  • Gravity - - 33o API
  • Porosity - - 12%
  • Initial Pressure - - 1,850 psi
  • Miscibility Pressure - - 1,500 psi

First produced using traditional sequence - - primary, then secondary and finally CO2-EOR. Next produced with “early application” CO2-EOR design - - primary, Next produced with early application CO2 EOR design primary, then CO2-EOR (skipping the waterflood).

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“EARLY APPLICATION” OF CO2-EOR (Cont’d) EARLY APPLICATION OF CO2-EOR (Cont d)

The economic value of this oil reservoir (after primary ( p y recovery) is much higher under “early application” of CO2-EOR.

T diti l S “E l A li ti ” Traditional Sequence (After Primary Recovery) “Early Application” (After Primary Recovery)

(Million) (Million)

Gross Revenues (NPV @ 10%) $9,300 $19,000 Oil Recovery (Barrels/Years) 1,060 (53 yrs) 1,040 (28 yrs) Water Production (Barrels) 3,900 1,500

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“EARLY APPLICATION” OF CO2-EOR (Cont’d) EARLY APPLICATION OF CO2 EOR (Cont d)

Traditional Sequence “Early Application” q y pp

60% 70%

OIP)

61% 60% 70%

OIP)

60% 30% 40% 50%

Recovery (%OO

39%

CO2-EOR

30% 40% 50%

Recovery (%OO CO2-EOR

42% 10% 20% 30%

Oil R

17% 14%

Primary Recovery Secondary Recovery

10% 20% 30%

Oil R

17% 14%

Primary Recovery CO2 EOR

0% 45 20 73

Years of Operation

0% 20 48

Years of Operation y y

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SUMMARY

1 CO enhanced oil recovery while still an

  • 1. CO2 enhanced oil recovery, while still an

emerging industry, has the potential to add significant volumes of future oil supply, in the U.S. and worldwide.

  • 2. Thirty years of experience shows that CO2-EOR

is a technically sophisticated and challenging process, but one that can be successful if “managed and controlled”, not just “operated”.

  • 3. “Game Changer” CO2-EOR technologies,

incorporating scientifically possible but not yet f ll d l d d ld i ifi tl fully developed advances, could significantly increase oil recovery efficiency.

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SUMMARY (Cont’d)

4 “Early application” of CO EOR technology can 4. Early application of CO2-EOR technology can significantly increase the economic value of the remaining oil resource. 5 Wide-scale application of CO -EOR is constrained by

  • 5. Wide-scale application of CO2-EOR is constrained by

lack of sufficient “EOR-Ready” CO2 supplies. A mutually beneficial link exists between CO2-EOR and new industrial sources of CO2.

  • 6. Under a “carbon constrained world”, productively

using industrial CO2 emissions for CO2-EOR will become a winning strategy.

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SLIDE 27

Offi L ti Office Locations Washington, DC

4501 Fairfax Drive Suite 910 4501 Fairfax Drive, Suite 910 Arlington, VA 22203 Phone: (703) 528-8420 Fax: (703) 528-0439

Houston, TX

11490 Westheimer Rd, Suite 520 Houston, TX 77077 Phone: (281) 558-9200 Fax: (281) 558-9202

Advanced Advanced Resources Resources International International

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International International

www.adv www.adv-

  • res.com

res.com