to the Residual Oil Zone: How Much and at What Cost? Thomas - - PowerPoint PPT Presentation

Producing Oil and Storing CO2 by Applying CO2 EOR to the Residual Oil Zone: How Much and at What Cost?

Thomas McGuire, PhD. and Derek Vikara

KeyLogic Systems, Inc.

David Morgan, PhD.

National Energy Technology Laboratory

December 4, 2017

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DISCLAIMER "This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any

• f their employees, makes any warranty, express or implied, or assumes any legal liability or

responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned

• rights. Reference herein to any specific commercial product, process, or service by trade

name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state

• r reflect those of the United States Government or any agency thereof."

Attribution KeyLogic Systems, Inc.’s contributions to this work were funded by the National Energy Technology Laboratory under the Mission Execution and Strategic Analysis contract (DE- FE0025912) for support services.

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Motivation

• The residual oil zone is potentially a significant source of oil
• Also a significant sink for CO2 if oil is produced using CO2 EOR
• DOE’s Office of Fossil Energy and NETL need tools to evaluate this potential resource
• Update the CO2 Prophet stream tube simulation program to address limitations
• Created an onshore CO2 EOR cost model to evaluate the economics of exploiting the ROZ
• Generated geologic databases for the greenfield ROZ in 12 counties in the Permian Basin
• San Andres formation
• Grayburg formation
• Models and databases are open source to enhance their impact and improve collaboration with

interested parties

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• Features:
• Originally developed by Texaco E&P for DOE in early 1990s
• Stream tube simulation model used to solve multiphase flow equations
• Can simulate 30 years of CO2 EOR operations in 5 to 20 seconds per oil field
• Original papers showed predicted oil production matching field data reasonably well
• Limitations of original program (version 1):
• Too little CO2 to produce a barrel of oil; consequently, stores too little CO2
• Makes CO2 EOR too efficient and too economical compared to field data
• Program modified (version 2) to address limitations
• Calibrated key variables using field data from oil fields that have undergone

CO2 EOR; these calibrated values applied to ROZ analytic units

FE/NETL CO2 Prophet Model

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• Newly developed tool for evaluating results of CO2 Prophet analyses
• Field level cash flow analysis of pattern production/injection data based on

user specified development schedule

• Contains capital costs, O&M costs, severance tax, royalty calculations, federal

and state income tax and finance costs

• Brownfield (conventional oil field) or greenfield (ROZ) development costs
• Pre-tax and after federal income tax calculations
• Evaluation of up to 10 oil prices, each at 5 CO2 costs
• Breakeven oil price for specific CO2 cost also evaluated

FE/NETL Onshore CO2 EOR Cost Model

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Assessment Study Area

Twelve County ROZ “Fairway” Resource Assessment Study Area in Permian Basin

Source: Kuuskraa, V. 2016. Using CO2-EOR, the ROZ and Carbon Management for Energy Independence. EOR Carbon Management Workshop.

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ROZ Geologic Assessment Methodology

• Logs were analyzed for wells which penetrated the San Andres ROZ and Grayburg ROZ
• Digital Logs (LAS files) were acquired for wells
• Established key volumetric properties and calculate Oil in Place
• Working cross sections used to divide each county into geologically similar “partitions”
• Porosity logs were calibrated to data from core samples. Pressure core used to calculate

“m” and “n” parameters for Archie’s equation used to estimate saturations from resistivity logs

• Each partition was divided into high quality and low quality “analytic units”
• Required data for the FE/NETL CO2 Prophet Model and FE/NETL Onshore CO2 EOR Cost

Model were collected for each ROZ analytic unit

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Analysis Method

ROZ Unit 1 Data ROZ Unit 2 Data ROZ Unit N Data

Python Scripting Tool

Reservoir Data

FE/NETL CO2 Prophet Model

CO2 Prophet Results

FE/NETL Onshore CO2 EOR Cost Model

User Control Data Cost Data User Control Data

Multiple Oil Field Assessment Results, Graphs, Tables

Diagram of NETL’s CO2 EOR modeling system with software tools utilized

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In-Place Resource for Greenfield ROZ in 12 Counties

Estimated In-Place Resource for San Andres and Grayburg Formations in Permian Basin

Formation In-Place Resource Total Higher Quality Lower Quality (B Bbls) (B Bbls) (B Bbls) San Andres 195.3 137.7 57.6 Grayburg 18.1 14.8 3.3 Total 213.4 152.5 60.9

• ROZ was divided into analytic units
• Higher quality analytic units had oil saturations of 25% or higher and porosities of 8% or higher
• All other analytic units were classified as lower quality

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Technically Recoverable Oil and Potential CO2 Storage for Greenfield ROZ in 12 Counties

• Results are preliminary and

should not be cited

• US consumes about 7 BSTB/yr
• US produces 3 to 4 BSTB/yr
• US emits about 3.5 Gtonnes/yr CO2eq from electricity generation and industrial use

Formation In-Place Resource Technically Recoverable Oil CO2 in Reservoir (B Bbls) (B Bbls) (% OIP) Gtonnes San Andres 195.3 50.1 26% 30.5 Grayburg 18.1 4.3 24% 2.6 Total 213.4 54.4 26% 33.1

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Oil Produced and CO2 in Reservoir as a Function

• f Oil Price for ROZ in San Andres Formation
• Results are preliminary and

should not be cited

• US consumes about 7 BSTB/yr
• US produces 3 to 4 BSTB/yr
• US emits about 3.5 Gtonnes/yr CO2eq from electricity generation and industrial use

Average WTI oil price in 2017

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• Greenfield ROZ in 12 counties in San Andres formation
• Potentially significant source of oil (roughly 5 to 25 BSTB technically recoverable oil

from $60 to $100 per STB)

• Significant associated storage of CO2 (roughly 2 to 10 Gtonnes from $60 to $100 per

STB)

• Greenfield ROZ in 12 counties in Grayburg formation
• Economic analysis of Grayburg formation is still being reviewed
• Initial results suggest the Grayburg ROZ may not be economical to develop as stand-

alone greenfield sites with current CO2 EOR technology and foreseeable oil prices

• However, the analysis is preliminary and production strategies have not been
• ptimized

Conclusions

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• FE/NETL CO2 Prophet Model, FE/NETL Onshore CO2 EOR Cost Model and ROZ

databases will be available on NETL’s website

• OPEN SOURCE – Software, mathematical foundation of models, user manuals and ROZ

databases

• Reports on the geology and CO2 EOR resource assessment for the greenfield ROZ in

the San Andres formation and Grayburg formation in 12 counties in the Permian Basin in west Texas

• Seeking feedback and collaboration with industry, academia and government

agencies to test and improve these open-source resources

NETL Resources

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• NETL federal employees:
• David Morgan, Donald Remson, Timothy Grant, Peter Balash (Team Lead), Kristin

Gerdes (Associate Director) and Traci Rodosta (Technology Manager for Carbon Storage Program)

• NETL site support contractors:
• KeyLogic: Derek Vikara, Thomas McGuire, Chung Yan Shih, ShangMin Lin and Tyler

Zymroz

• Advanced Resources International, Inc.: Vello Kuuskraa, Matthew Wallace, Michael

Godec and Robin Petrusak

• The CETER Group: Nicholas Azzolina

Contributors

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Questions?