Prospects for CO2 EOR | Russell T. Rudy Energy LLC
In spite of the recent drop in oil prices, operators are still extracting as many barrels as economically feasible from known reserves. “Rigzone” has recently run a three part series on Enhanced Oil Recovery (EOR). The following is a synopsis of the first segment on CO2 injection.
After primary (e.g. pumping) and secondary (e.g. waterflood) methods of recovery have been utilized, operators sometimes try more sophisticated measures to recover oil that is still trapped in the reservoir rock. Depending on a number of factors, including reservoir characteristics, these enhanced measures can vary. CO2 EOR involves injection of carbon dioxide gas into the reservoir to maintain pressure and help move residual oil toward producing wells for extraction.
CO2 EOR is not a new technology. In fact, it has been successfully utilized for over 40 years. In the 1980’s large deposits of naturally occurring CO2 were discovered in New Mexico, Colorado, and Mississippi which led to widespread exploitation of this resource in reservoirs which were particularly responsive to this type of stimulation. Historically, this type of EOR has been primarily practiced in the Permian Basin of West Texas and Southeastern New Mexico. However, industrial (anthropogenic) CO2 is providing the basis for similar projects in countries which are not blessed with our organic CO2 reserves.
However, here in the U.S., CO2 EOR projects compete for capital with shale projects. In fact, there is a great deal of overlap between major players in CO2 and shale. In other countries, such as China, Brazil and the Middle East, where shale is not currently an option, CO2 projects are looked on more favorably.
China has large sources of industrial CO2 and significant volumes of oil still in reservoirs receptive to this type of EOR.
Brazil is leading the way in international CO2 efforts with an innovative pilot project offshore in the Lula Field. Here, CO2 is separated from produced oil and natural gas on a floating platform and re-injected into the reservoir to maintain pressure. If successful, Petrobras intends to use this technology across the entire field.
In the Middle East, the UAE, Kuwait and Saudi Arabia are all developing plans for CO2 EOR initiatives.
Domestically, CO2 EOR will remain a viable option for operators as long as oil prices remain around $80 per barrel. Internationally, the high cost of offshore facilities will limit the economic feasibility of this alternative. However, as fields age and major discoveries are less frequent, if prices are adequate, CO2 EOR will continue to be pursued throughout the world.
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=135662&utm .
