OPTIMIZATION OF PRODUCTIONEnhanced Oil Recovery (EOR) Outline • Oil Supply/Demand and Distribution of Oil Reserves • Oil Recovery Mechanisms and EOR Targets • Types of EOR Technologies and EOR Candidates • Worldwide EOR Production • Average EOR Recovery Factors • EOR Economics • Reasons for EOR Failures • Conclusions TIORCO, Inc – The Improved Oil Recovery Company Oil Consumption and Industrialization 35 30 Per Capita (Bbls / Year 25 20 Oil Consumption Increases Fastest During Early Industrialization U.S. 15 10 5 0 1900 1910 Japan South Korea China India 1920 1930 1940 1950 1960 1970 1980 1990 2000 TIORCO, Inc – The Improved Oil Recovery Company Chinese Oil Imports 3,000 50 Net Crude Imports 2,500 2,000 45 40 35 30 25 NYMEX WTI 1,500 1,000 500 0 -500 1Q93 20 15 10 5 1Q94 1Q95 1Q96 1Q97 1Q98 1Q99 1Q00 1Q01 1Q02 1Q03 1Q04 1Q05 0 TIORCO, Inc – The Improved Oil Recovery Company US$/bbl kb/d U. Petroleum Production and Imports 12 10 8 Petroleum (MM BBLS/Day) Domestic Petroleum Production 6 4 2 0 „48 Imported Petroleum „53 „58 „63 „68 „73 „78 „83 „88 „93 „98 Year TIORCO. Inc – The Improved Oil Recovery Company .S. 4% North Africa 60B Bbls .5% FSU 78B Bbls .7% Middle East 734B Bbls .Regional Distribution of Global Oil Reserves Others 112B Bbls .5% South America 62B Bbls .1% North America 62B Bbls .64% TIORCO. Inc – The Improved Oil Recovery Company .4% West Africa 46B Bbls .10% North Sea 14B Bbls . ) SECONDARY RECOVERY Waterflood Pressure Maintenance (Water. Gas Lift. Gas Reinjection) EOR TERTIARY RECOVERY Thermal Solvent Chemical Other Adapted from the Oil & Gas Journal. etc. 1990 TIORCO. Apr 23.Oil Recovery Mechanisms CONVENTIONAL RECOVERY PRIMARY RECOVERY Natural Flow Artificial Lift (Pump. Inc – The Improved Oil Recovery Company . The most common technique: injection of water or gas Water injection also is used to increase production. but usually leads to a quicker reservoir decline and less total production Tertiary recovery” techniques may be used once the injection techniques are ineffective. they‟re expensive. flow slows and operators must use “secondary recovery” techniques for to recover petroleum. Inc – The Improved Oil Recovery Company . However.Primary recovery lasts for several months or years. and thus feasible only if the price of petroleum is high.. As the pressure drops.. TIORCO.. Expected Oil Recovery Efficiencies PRIMARY METHODS Liquid and Rock Expansion Solution Gas Drive Gas Cap Expansion Gravity Drainage Water Influx SECONDARY METHODS Gas Reinjection Waterflooding OOIP (%) Up to 5 20 30 40 60 Up to 70 Sandrea. Oil & Gas Journal (Nov 2007) TIORCO. Inc – The Improved Oil Recovery Company . Inc – The Improved Oil Recovery Company . Oil & Gas Science and Technology (2008) TIORCO.EOR Targets: % OOIP LIGHT OILS HEAVY OILS TAR SANDS EOR Target 45% OIP Primary 25% OIP Secondary 30% OIP Primary 5% OIP Secondary 5% OIP EOR Target 100% OIP EOR Target 90% OIP Assumes Soi – 85% PV and Sw = 15% PV Thomas. Inc – The Improved Oil Recovery Company Proven Reserves 22 Billion Barrels Undiscovered Recoverable by Current Technology 30 Billion Barrels US Department of Energy (2005) .EOR Targets. 2005 Cumulative Production 183 Billion Barrels (45% already abandoned) Discovered Unrecoverable by Current Technology 377 Billion Barrels Target for EOR Technologies Target for Advanced Exploration Technology Undiscovered Unrecoverable by Current Technology 37 Billion Barrels TIORCO. JPT (2007) TIORCO. 2007 United States Canada Rest of World TOTALS (B bbls) Cumulative Production OPEC (Middle East) Other Conventional Deepwater Arctic Enhanced Oil Recovery Extra Heavy Oil Shale Extract Exploration Potential TOTALS (B bbls) 234 -19 8 5 76 -500 83 925 31 -7 3 3 6 167 4 15 236 813 662 378 50 110 510 227 200 660 3660 1.821 Jackson.078 662 404 61 118 592 444 704 758 4.EOR Targets. Inc – The Improved Oil Recovery Company . Inc – The Improved Oil Recovery Company .Definition of EOR • Oil Recovery by Injection of Fluids not normally present in the reservoir • Excludes waterflooding TIORCO. Heat Hi Press. Air Inj.Thermal EOR Methods THERMAL Hot Water CSS Frac Non-Frac Steam SAGD Conductive Heating In-Situ Forward Dry Wet W / Additives Elec. Inc – The Improved Oil Recovery Company . Steam Flood Reverse VAPEX VAPEX + Steam SAGP THAI CAPRI TIORCO. Non-Thermal EOR Methods NON-THERMAL Miscible Slug Process Enriched Gas Drive Vaporizing Gas Drive CO2 Miscible N2 Chemical Polymer Surfactant Alkaline Micellar ASP Emulsion Imm. Gas Drives CO2 Flue Gas Inert Gas Other MEOR FOAM Miscible Alcohol TIORCO. Inc – The Improved Oil Recovery Company . 000 Deep enough for required pressure Deep enough for required pressure Deep enough for required pressure Limited by temperature Limited by temperature Deep enough for required pressure Good Possible Fair Difficult Not Feasible TIORCO.000 8.000 6.000 4. Inc – The Improved Oil Recovery Company Dr.000 10. Depth EOR Method Hydrocarbon Miscible Nitrogen and Flue Gas CO2 Miscible Surfactant Polymer Polymer Alkaline Fireflood Steam Drive Depth (feet) 2. 1992) .EOR vs. Larry Lake. Oilfield Review (Jan. 000 Ft) SHALLOW 34% 4. Oil & Gas Journal (Nov 2007) TIORCO.500 – 10.8 Trillion Barrels DEEP 21% 2.Oil Resources by Depth TOTAL 12.500 Ft) Sandrea.4 Trillion Bbls (<3.000 Ft) INTERMEDIATE 45% 5.7 Trillion Bbls (>10.7 Trillion Bbls (3. Inc – The Improved Oil Recovery Company . 000 ft) Deep (>10.147 28 100 -293 -100 HIS. Credit Suisse TIORCO. 2006 Conventional Billion Bbls of Oil Shallow (<3.000 ft) 163 % 14 Non-Conventional Billion Bbls of Oil 293 % 100 663 58 -- -- 321 1.Distribution of Global Oil Reserves by Depth Remaining Reserves (1P). Inc – The Improved Oil Recovery Company .500 – 10.500 ft) Intermediate (3. EOR vs.000 1. Viscosity EOR Method Hydrocarbon Miscible Nitrogen and Flue Gas CO2 Miscible Surfactant Polymer Polymer Alkaline Fireflood Steam Drive Oil Viscosity (centipoise at reservoir conditions) 1.0 100 10.000. Inc – The Improved Oil Recovery Company Dr. 1992) . Oilfield Review (Jan.000 Good Possible Fair Difficult Not Feasible TIORCO. Larry Lake. 4 Trillion Bbls (<26° gravity) EXTRAHEAVY 23% 3. Inc – The Improved Oil Recovery Company .6 Trillion Bbls (26-35° gravity) HEAVY 1% 1.8 Trillion Bbls (>35° gravity) MEDIUM 44% 5.0 Trillion Bbls (<10° gravity) Sandrea.8 Trillion Barrels LIGHT 22% 2. 2007) TIORCO.Gravity Distribution of World‟s Oil TOTAL 12. Oil & Gas Journal (Nov. 000 Good Possible Fair Difficult Not Feasible TIORCO.000 100. Oilfield Review (Jan. Inc – The Improved Oil Recovery Company Dr. Permeability EOR Method Hydrocarbon Miscible Nitrogen and Flue Gas CO2 Miscible Surfactant Polymer Polymer Alkaline Fireflood Steam Drive Permeability (md) 10 100 Not critical if uniform Not critical if uniform High enough for good injection 1.EOR vs. Larry Lake. 1992) . Inc – The Improved Oil Recovery Company .Chemical EOR Processes Typical Ultimate Recovery (%OOIP) Typical Agent Utilization Process Polymer 5 1 lb polymer / Incremental bbl 10-25 lb surfactant / Incremental bbl 35-45 lb surfactant / Incremental bbl Micellar / Polymer 15 Alkaline / Polymer 5 TIORCO. 10 TIORCO.Gas (Miscible and Immiscible) Typical Ultimate Recovery (%OOIP) 10 .15 Agent Utilization 10 MCF / Incremental bbl 10 MCF / Incremental bbl Process Miscible Immiscible 5 . Inc – The Improved Oil Recovery Company . 65 Agent Utilization 0.Thermal Recovery Processes Typical Ultimate Recovery (%OOIP) 50 . Inc – The Improved Oil Recovery Company .5 bbl / Net Incremental bbl Process Steam (drive and soak) Combustion 10 .15 10 MCF air / Incremental bbl TIORCO. EE.UU EOR Production. Oil & Gas Journal (2000) TIORCO. Inc – The Improved Oil Recovery Company . 2000 800 Nitrogen Injection Production (M BBLS/Day) HC Gas Injection 600 Flue Gas Injection 400 CO2 Injection Thermal 200 Chemical 0 1984 1986 1988 1990 1992 1994 1996 1998 2000 Year Moritis. Inc – The Improved Oil Recovery Company .EE. 2008 800 TOTAL 600 Production (M B/D) Thermal 400 200 Gas Chemical 0 1986 1990 1994 1998 2002 2006 Thomas.UU EOR Production. Oil & Gas Science and Technology (2008) TIORCO. 0 160.9 17.A. 1990 (M Barrels / Day) Country USA Canada Europe Venezuela Other S. Worldwide EOR Production.Est.574.6 % 42 10 1 7 1 10 29 100 SOURCE: Oil & Gas Journal (1990) * Mainly Indonesia ** Mainly Algeria and Libya TIORCO. Inc – The Improved Oil Recovery Company .2 17.0 119.9 152.) Total Thermal 454 8 14 108 2 20 171* 777 Miscible 191 127 3 11 NA 90 280** 702 Chemical 11.6 EOR Total 656.5 1. USSR Other (est’d.0 17.0 1.5 80.2 --NA 50.0 452. 600 B/D 16% China 166. Inc – The Improved Oil Recovery Company .300 B/D 30% Mexico 500.800 B/D 22% Canada 325.900 B/D 7% USA 649.000 B/D 22% Thomas (2008) Percentages are those of total EOR production of 2. Worldwide EOR Production.500 B/D 14% Indonesia 220.5 MM B/D TIORCO. 2007 Other 17.Est.000 B/D 10% Venezuela 365. Canada EOR. 2006 1 3 4 21 2 3 2 Acid Gas 10 1 CO2 Combustion Hydrocarbon (Natural Gas) Steam Nitrogen Oil & Gas Journal (April 2006) TIORCO. Inc – The Improved Oil Recovery Company . EE.UU EOR. Inc – The Improved Oil Recovery Company . 2006 11 Alaska 5 1 1 39 2 9 1 1 5 1 1 2 6 3 3 3 2 14 50 1 Steam Water Combustion CO2 Gas 1 Oil & Gas Journal (April 2006) TIORCO. Central and South America EOR. Inc – The Improved Oil Recovery Company . 2006 1 8 5 38 2 3 CO2 Hydrocarbon Steam Nitrogen Oil & Gas Journal (April 2006) TIORCO. 2006 y 1 1 5 1 17 2 19 a 2 CO2 Combustion Steam Microbial Polymer Oil & Gas Journal (April 2006) TIORCO. Inc – The Improved Oil Recovery Company .Rest of World EOR. 600 – 15.000 1.900 – 10.900 4.900 1.000 10 – 80. Inc – The Improved Oil Recovery Company .500 API Gravity (°) 8 – 26 19 – 43 15 – 45 18 – 38 Polymer Nitrogen 20 5 53 – 4.000 – 500.740 1.100 Depth (Feet) 350 – 5.51 OGJ Worldwide EOR Survey. 2006 Type Steam CO2 HC Gases Combustion Number of Projects 119 94 38 21 Production (Bbls/Day) 76 – 220.063 – 4.626 4. 2006 TIORCO.500 1.400 21 – 34 16 .040 – 14.Summary of Active EOR Projects.000 100 – 35.000 100 – 8.640 – 9. Oil & Gas Science and Technology (2008) TIORCO.Major EOR Projects and Production 700 Total Thermal Gas Chemical 500 Production (M B/D) 300 100 0 USA Mexico Canada Venezuela Indonesia China Thomas. Inc – The Improved Oil Recovery Company . IFT Journal (1990) TIORCO. Inc – The Improved Oil Recovery Company .Comparison of EOR Techniques 60 Incremental Oil Cost ($/BBL) 50 40 30 Surfactant CO2 Injection 20 10 Thermal Polymer Waterflood MEOR 50 60 70 80 0 0 10 20 30 40 Total Recovery (% OOIP) Simandoux et al. Inc – The Improved Oil Recovery Company . 2007) TIORCO.2006 Global EOR Average Costs 15 13 11 US $ / Barrel 9 7 5 3 1 Exploration & Development Acquisitions Capex Deep Water Capex Heavy Oil Capex EOR Sandrea. Oil & Gas Journal (Nov. Farouq Ali (2007) TIORCO. Inc – The Improved Oil Recovery Company .And too much reliance on simulation • Poor post treatment evaluation Comments in white from S.Insufficient Budget (lack of commitment) • Heavy reliance on lab experiments .M.Bad Candidate Selection • Unavailability of Chemicals in large quantities .Reasons for EOR Failures • Low Oil Prices .oil price instability • Insufficient description of Reservoir Geology .Underestimated Reservoir Heterogeneity • Inadequate understanding of EOR mechanism . gas. water) Separation and Storage Facilities Water Injection Pump Production Well Drive Water Water Miscible Zone Add’l Oil Recovery CO2 CO2 Oil Bank TIORCO.Ideal Enhanced Oil Recovery (EOR) Carbon Dioxide Injection Well Produced Fluids(oi. Inc – The Improved Oil Recovery Company . gas. Inc – The Improved Oil Recovery Company .Real World EOR Carbon Dioxide Injection Well Produced Fluids(oi. water) Separation and Storage Facilities Water Injection Pump Production Well TIORCO. the more you get 1) Single well pilots usually not successful 4) Detailed Evaluation is essential 5) EOR is not a panacea. Inc – The Improved Oil Recovery Company . but will play an increasingly important role in the future 1) 70% of current oil production from mature fields TIORCO.How to Convert EOR to IRR (TIR) 1) Consider reservoir heterogeneity 2) Predicting results is difficult 3) The more you inject.