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Carbon Dioxide EOR Update and Developments The Concept of Residual Oil Zones and
Opportunities for Flood Target Expansions
Global CCS Institute Regional Meeting
Austin, TexasDoubleTree Hotel
November 8, 2011
L. Stephen MelzerTexas Carbon Capture & Storage Association
&
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TWO PATHWAYS TO CCS
• DRIVER: A TOP-DOWN GOV’T IMPERATIVE
– CLIMATE CHANGE LEGISLATION
– COST OF CARBON• Emission Trading• Carbon Tax
• DEEP SALINE FORMATIONS– LARGE VOLUME SINKS– WIDESPREAD GEOGRAPHICAL
OPPORTUNITY– ‘WASTE’ INJECTION
• DEVELOP REGULATORY FRAMEWORK
• DRIVER: SELECTIVE (MARKET) INCENTIVES
- UTILIZE A LARGE MARKET TO DEMAND-DRIVE CAPTURE
- RECOGNIZE AND EXPAND THE LARGE CO2 EOR MARKET
• DEVELOP STANDARDS FOR COMMODIZATION AND TRANSPORTATION OF CO2
• AUGMENT EXISTING REGULATORY FRAMEWORKS
• PUT THE ENTREPRENEURS TO WORK
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A Heart-felt Tribute to
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Carbon Dioxide EOR Update and Developments The Concept of Residual Oil Zones and Opportunities
for Flood Target Expansions
• Where CO2 EOR has Been• Where it is Now?• Where is it Going?
– Some Organizational Forecasts– The “New” - Expansion of Targets from
Traditional Ones– Convergence with Carbon Capture and
Storage?
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Before we Jump off into EOR, Let’s Give Some Credit to:
• The Oil Majors and their Developmental Work on CO2 EOR• King Hubbert – circa 1950’s• The UTPB CO2 ‘ROZ Team’ in Midland/Odessa• The Research Partnership to Secure Energy for America (RPSEA)• The U.S. DOE, National Energy Technology Laboratory and Advanced
Resources, International
As you Shall See; Much Work Remains to be Done so….
Future ‘Thanks’ Likely to Go to:
• RPSEA • USDOE and NETL• International Research• Cooperating Industry Partners……
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I probably need to apologize up front as Some of this is going to need to be a bit “Geeky” here
Carbon Dioxide EOR Update and Developments
The Concept of Residual Oil Zones and Opportunities for Flood Target Expansions
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7CONVENTIONAL CO2 EOR RESERVOIR EXPLOITATION
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A Real Life Example8
PRIMARY PHASE SECONDARY TERTIARY
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Background – US EOR History*
Thermal Declining
CO2 Inclining
* National Petroleum Council Study On-shore Oil Topic Paper – Sep ‘11
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GRAPHICAL HISTORY OF PERMIAN BASIN CO2 EOR
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Growth of CO2 EOR: U.S. & Worldwide*
WW & U.S. CO2 EOR PRODUCTION1986 - 2010
0
50
100
150
200
250
300
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
YEAR
CO
2 EO
R P
RO
DU
CTI
ON
- kb
opd
ALL OF U.S. Worldwide
* Ref: O&GJ Biennial EOR Editions & UTPB Petr Industry Alliance
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Where We Are Today
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Permian Basin
Wyoming/ N. Rockies
Denbury Gulf Coast
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Current Status (U.S. CO2 EOR)*
• Active Projects 106• Acres Under Flood 450,000• Number of Producing Wells 9,980• Number of Injection Wells 6,850• Total Production 340,000• EOR Production 262,000
* Ref: O&GJ Biennial EOR Edition & UTPB PIA Industry Alliance – Mar ‘10
5.6% U.S. Production
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Where CO2 EOR is Going
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The BaselinePerm Basin & U.S. CO2 EOR History
0
50
100
150
200
250
30019
72
1976
1980
1984
1988
1992
1996
2000
2004
2008
2012
Year
Ann
ual C
O2
EOR
Oil
in k
bopd
PB CO2 EOR OIL (KBOPD)
U.S. CO2 EOR OIL (KBOPD)
Supply Limited ‘Decline’
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17Nat’l Resource Defense Council’s Look at EOR Growth
• An Aggressive Capture Plan, Time frame of 2010 – 2030, Uses a 5-year ramp up of Oil Production from Available CO2 Volumes, Termination of CO2 Volumes is a function of Time Frame of Study
Figure B: CO2 Captured EOR Vols and CO2 EOR Production (thru 2055)
0
100
200
300
400
500
600
2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060
Year
Assu
med
CO
2 Ca
ptur
e V
olum
es(m
mto
nnes
per
yea
r)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
CO2
Capt
ure
Vols
in b
cfpd
and
Oil
Pro
duct
ion
in m
mbo
pd
CCS Power CO2
CCS Power CO2 {Rt Scale}
5-yr Ramp up Method: Oil Rec -(Rt Scale)
Aggressive Capture Case
Ref: http://www.adv-res.com/pdf/v4ARI%20CCS-CO2-EOR%20whitepaper%20FINAL%204-2-10.pdf
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Energy Information Agency (2011)C
O2
EO
R P
rodu
ctio
n in
mm
bopd Adding ‘Pure’ Industrial Sources
These Projection Do Not Include Sourcing of CO2 from Select, Dilute (Power Plant) Industrial Sources
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RESIDUAL OIL ZONES (ROZs) A GAME CHANGER?
WHERE ARE THEY AND HOW FORMED? Origins of Residual Oil Zones and Identification Methodology
• ROZ Origins
• The Fascinating ROZ Science – State of the Knowledge
• ROZ Types – Examples
• Benchmarking the Engineering (Commerciality)
• Brownfields and Greenfields
• A Wyoming Example
• We’ve Only Just Begun – So Much Work Yet to be Done
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Historically, the Industry (and Policy Makers) has Looked at EOR Targets Like we Looked at Waterflood Targets
(i.e., Main Pay Zones only)
The Industry is (very quietly) Re-examining (challenging) that Perspective
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Original Oil Accumulation Under Static Aquifer Conditions (A Hypothetical Example)
W E
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Original Accumulation Subject to a Westward Regional Tilt
W E
TYPE 1 ROZ
W E
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Original Accumulation with a Breached then Reformed Seal
ORIGINAL POST BREACH
TYPE 2 ROZ
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Change in Hydrodynamic Conditions, Sweep of the Lower Oil Column, Oil/Water Contact Tilt, and Development Of The Residual Oil Zone
TYPE 3 ROZ
W E
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A Curious and Very Quiet Exploitation ‘Thing’ Has Moved Forward in the Permian Basin
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MIDDLE SAN ANDRES PALEOGEOGRAPHY with Location of Active Industry ROZ Zones/CO2 EOR Projects*
Hobbs
VACUUMFIELD
GuadalupeMountains
MidlandBasin
DelawareBasin
CentralBasin
Platform
Shelf Margin “reef”
TexasNew Mexico Midland
San Angelo
Restricted Carbonate Shelf
OpenMarine
MarathonOverthrust Belt
NORTHWESTSHELF
NORTHERNSHELF
EASTERNSHELF
WASSON FIELD (DENVER & BENNETT RANCH UNITS
SEMINOLE FIELD
* Adapted from Sagnak (2006), Chevron Presentation at the 12/06 CO2 Flooding Conference
GOLDSMITH FIELD
HANFORD FIELD
There are 9 total ROZ projects now
with two more scheduled for
start by early ‘12
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EXTENDING THE EOR BELOW THE OIL/WATER CONTACT
Gross Net Permeability InitialThickness Thickness Porosity Range OOIP Oil Saturation
Main Pay Zone (MPZ): 160’ 126’ 12% 0.8-120 md 1 billion stbo 0.84Residual Oil Zone (ROZ): 246’ 197’ 12.6% 0.5-270 md 960 million stbo 0.32
Reference Slides are from the 2001 and 2008 CO2 Flooding Conferences
Gas Cap
Residual Oil Zone
Main Pay Zone
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Remember this Slide?
PRIMARY PHASE SECONDARY TERTIARY
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A NEW FOURTH PHASE? ‘QUATERNARY’ OIL*Total, Primary, Waterflood, Main Pay and ROZ CO2 Performance
(the Concept of "Brownfield" Quaternary Oil)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
0 10 20 30 40 50 60 70 80 90 100
Year
Ann
ualiz
ed O
il Pr
oduc
tion
in b
opd
TOTAL OIL - bopdProj Primary-bopdProj Waterflood-bopdMain Pay EOR BaselineQuat 2.0 Oil - bopd
Primary Production
Peak
Tertiary CO2
Production Peak
Secondary Production
Peak
Quaternary CO2 ROZ Production Peak
Primary Cum = 125 mm bbls
Secondary Cum = 325 mm bbls
Tertiary Cum = 200 mm bbls
Projected Quaternary Cum = 200 mm bbls
* REQUIRES AMPLE, AFFORDABLE CO2
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THUS, THE TARGETS FOR CO2 EOR HAVE BROKEN FREE FROM JUST THE MAIN PAY ZONES
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A Very Important Sidebar
‘Brownfields’ and ‘Greenfields’
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LET’S INTRODUCE SOME TERMINOLOGY
IT’S TIME TO TALK ABOUT SWEEP IN TERMS OF
BROWNFIELDS* AND GREENFIELDS
TYPE 3 ROZ
Greenfield = Effectively no Main Pay Zone
* Residual Oil Zone Beneath a Main Pay Zone
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WE HAVE ONLY BEGUN THIS ROZ JOURNEY
• What about ROZ Origins and Distributions in other Basins?
• What about the Size of the Greenfields?• What about the Relative EOR Performance of
ROZs to Waterflooded MPZs?• What about Commercial Thresholds of
Residual Oil Saturation Levels?
It is Clear Now that ROZ Targets are Immense – But Just How Large are They?
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The End
Questions?
www.CO2Conference.net
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If this ROZ Work Strikes your Fancy
Check out the Website: www.residualoilzones.com