SPE Distinguished Lecturer Program - The Society of Petroleum
SPE Distinguished Lecturer · PDF fileSPE Distinguished Lecturer Program ... Society of...
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SPE Distinguished Lecturer Program
Primary funding is provided by
The SPE Foundation through member donations and a contribution from Offshore Europe
The Society is grateful to those companies that allow their professionals to serve as lecturers
Additional support provided by AIME
Society of Petroleum Engineers Distinguished Lecturer Programwww.spe.org/dl 1
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EOR – The Time is Now
Its Contribution to World Oil Supply
Paul L. Bondor
Society of Petroleum Engineers Distinguished Lecturer Programwww.spe.org/dl
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Enhanced Oil Recovery (EOR) – The Time is Now
Churchill once said:“the best time to plant a tree is twenty years
ago. The second best time is now.”
In E & P, the best time to plan and begin implementation of EOR is during original development planning.
The second best time is Now!
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Outline• Status and potential of EOR• Why EOR?• What’s new – Technical• Why now?• Planning for EOR• EOR Opportunities and Challenges
– Both offshore and onshore– Economic – Political
• Summary
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World Oil Production Forecast (IEA) 2008
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• 74 million b/d of capacity additions needed by 2030• 5 million b/d is forecast to be supplied by additional EOR in
2030• 20 million b/d is from “fields yet to be found”
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World Oil Production Forecast (IEA) 2010
• 70 million b/d of capacity additions needed by 2030• Additional EOR not included as a separate category• 20 million b/d is from “fields yet to be found”
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World Conventional Oil In-Place, ~ 9 Trillion Barrels
US : 0.910% Other OPEC : 2.6
29%
OPEC Middle East: 2.629%
Other Non - OPEC : 2.932%
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Of the 9 trillion barrels in place, ~ 1.1 trillion barrels has been consumed.
33% recovery efficiency
EOR target of 2.2 trillion barrels in discovered fields!
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US EOR Production since 1986: ~ 6.4 billion barrels!
U.S. EOR production is ~12% of the U.S. total
Two major contributors:Thermal recovery using steam injection
Carbon dioxide miscible recoveryFrom OGJ biennial surveys
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1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
MB
O/
Thermal
Gas: includesCO2, Hydrocarbon, Nitrogen, Flue
Gas, other
Chemical/Polymer
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EOR Production outside the US since 1998: ~ 5.5 billion barrels!
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1998 2000 2002 2004 2006 2008 2010
MB
O/
Thermal
Chemical / Polymer Gas: includes CO2, Hydrocarbon, Flue Gas, Other
Thermal recovery in Venezuela, Indonesia, China, Canada.
Gas injection in Canada, Venezuela, and Libya
Chemical/polymer applications in China. 9From OGJ biennial surveys
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EOR Methods Based on LithologyThis plot is based on 1507 worldwide projects
10Source: SPE 130113, Manrique E., et al; April 2010
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Why EOR?
• Access to new exploration acreage is difficult and expensive
• There is significant oil in place in discovered reservoirs that will otherwise not be recovered
• EOR can make an important contribution to world oil supply in the long term
• EOR economics can be attractive11
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EOR Today• Mature technologies:
– Thermal – CO2 miscible
• Technologies with unrealized potential:– Chemical– Polymer– Combustion
• Barriers:– Long lead times– Economics– Politics
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Not your Grandfather’s EOR (1)
What is new in Mobility Control:Polymers:• PetroChina has made significant advances in the design and
manufacture of polymers– Narrow range of molecular weights– Tailored to application– Can be applied economically in lower permeability formations
• In-depth diversion technology– Thermally activated plugging agents
• Foams– Advances in the laboratory
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Not your Grandfather’s EOR (2)
What is new in Chemical Flooding:• Advances in surfactants:
– Thermally stable surfactants (e.g., sulphonates) remove temperature restrictions
– Surfactants designed to be active at 0.1% concentrations
– Sacrificial agents (e.g., sodium carbonate) reduce adsorption tovery low levels
• Alkaline flooding:– Alkaline-polymer (AP) and alkaline-surfactant-polymer (ASP) are
new, lower-cost EOR methods
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Not your Grandfather’s EOR (3)What is new in Thermal Recovery:• Controlled Combustion –THAI (Toe to Heel Air Injection)
– Removes depth, pressure restrictions of steam– Applicable to light oils
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Not your Grandfather’s EOR (4)What is new in Thermal Recovery:• Steam-Assisted Gravity Drainage (SAGD)
– Uses horizontal wells to contact formation, reduce well costs– Modification of steam drive
injectionwell
heated oil and
condensed water
steam risesto interface
production well
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What’s New in Tools and Techniques (1)
More efficient project design and management is possible using:
Real-time information gathering, analysis …
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What’s New in Tools and Techniques (2)
Horizontal wells …
Smart wells, multilateral wells …
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What’s New in Tools and Techniques (3)Permanent downhole monitoring using fiber optics – pressure, temperature, multiphase flow rate …
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What’s New in Tools and Techniques (4)
4-D seismic …
Etc, etc …20
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Promising Technologies
• Microbial EOR• Nanotechnologies
– Smart tracers– Delivery of materials– Detailed reservoir description
• Down-hole steam generation
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Why Now?
• Design and implementation of an EOR project takes time
• After implementation (especially as a tertiary project) production response does not occur immediately
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Steps to a Successful EOR Project (1)
• Field selection– Successful secondary?
• A water-based EOR process will go where the waterflood water went
– In-place target• Is there sufficient remaining oil in place to
justify an EOR project?
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Steps to a Successful EOR Project (2)
• Process selection: what is the objective?– Improved sweep efficiency
• Overcome reservoir heterogeneities or poor mobility ratio
– Improved displacement efficiency• Is the objective to recover a residual oil
saturation in a swept zone?
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Steps to a Successful EOR Project (3)Reservoir Modeling
Engineering Data Economics
Field Selection
EOR Process SelectionAnalog Data
Analytic Tools
Coarse Simulation
Fine Simulation
Screening
Detailed Economic
Models
Geologic Studies
Tim
e
Design Parameters Lab Data (R&D)
Field Date
Pilots / Field Testing
Project Implementation
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Pilot Testing
• Use to reduce critical uncertainties
• Most expensive, most time-consuming
• Design with specified objectives
– Oil-in-the-tank not sufficient
– Profitable pilot usually unrealistic
• Need dedicated personnel
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Types of Pilot TestSingle Well Mini-Test
obsinj
+ Build oil bank+ Vertical, Areal conformance
ROS DeterminationInjectivity
Confined Five-SpotSingle Five-Spotprod
+ Displacement efficiency+ Sweep efficiency
+ Operations experience + Redundancy+ Improved capture efficiency
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EOR Project Time Line
0 2 4 6 8 10
Years
Initial Response
Implementation
Pilot Testing
Design Parameters
Geologic Studies
Process Selection
Field Selection
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EOR Potential
Opportunity:• Target resource for EOR applications is 6 trillion barrels, of the 9
trillion initially in place
• Widespread application could far exceed the current forecasts
• Chemical / polymer flooding has large unrealized potential
• Both hydrocarbon and CO2 miscible flooding have large potential
internationally
• A significant resource exists in the offshore, as well as onshore
• CO2 sequestration may provide an additional impetus and
opportunity
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EOR Challenges
However, there are significant challenges:• Application Onshore:
– old wells,
– commingled wells,
– reservoir understanding
• Application Offshore: – large well spacing,
– logistics,
– reservoir understanding
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Economics Challenges
• Thermal:
– Greenhouse gas emissions
– Combustion - perceived high risk
• Chemical – Polymer
– Long lead times, long payout
– Perceived high risk
• CO2 Miscible
– Access to CO2
However: Long term demand and price increases present opportunities!
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Political Opportunities
• NOC, IOC, Governmental Relationships can harm EOR opportunities:– Mutual interests are hampered by short-term
considerations, different objectives
• Solution: treat EOR differently!– Jointly share technical, economic risk– Revise concession terms to include life-of-project for
EOR
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CO2 Sequestration
Finally, carbon capture initiatives may present an economic opportunity for increased recovery
• Joint industry-government efforts to gather CO2 for sequestration– Examples: North Sea, U.S. GOM, Middle East
• Large volume in developed fields in the subsurface
• Opportunity for collection of CO2 (power plants, petrochemical facilities), delivery to offshore fields
• These opportunities may not be practical for an individual oil company, but are feasible with a joint industry-government approach
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North Sea Example (1)
H. Agustsson,StatoilHydro, SPE ATCE 2008, Denver 34
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North Sea Example (2)
H. Agustsson,StatoilHydro, SPE ATCE 2008, Denver 35
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Summary
• EOR Technologies exist that reduce project technical risk
• EOR can make a much more significant contribution to world oil supply than is currently forecast
• EOR is a long-term business• Cooperation between IOCs and NOCs can result in
mutual benefits• CO2 sequestration presents an additional E&P
opportunity
The second best time to plan and begin implementation of EOR is Now!
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