Enhanced Oil Recovery Institute

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Enhanced Oil Recovery Institute

• Presentation to the Joint Minerals and Economic
  Development Committee
• Jim Steidtmann
• 26 September, 2007

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World Wide by 2030

• 688 Billion Barrels from EOR
• 732 Billion Barrels from New Discoveries

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In Wyoming

• 51.5 Million Barrels in 2005
• 10-15 by EOR
• 8.5 by CO2 EOR

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Wyoming EOR

• According to WGS
• 8 billion barrels remain in ground
• 5-15 recoverable by EOR
• 5 could mean 2 billion to State
• over 20 years
• At 35/bbl

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The EORI Mandate

• To conduct research to develop new EOR
• technologies and to promote EOR
• in the State through the transfer
• of new and existing technologies.

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The EOR Commission

• Governor Freudenthal (Rob Hurless)
• Charles Townsend (State Senator)
• Ron Surdam (State Geologist)
• Bern Hinckley (Consultant)
• Lynne Boomgaarden (State Lands)
• Peter Wold (Wold Oil)
• Gail Ghenoweth (Marathon Oil)
• Jim Neiman (UW Trustee)
• Eric Nelson (Legal Counsel)
• Glen Murrell (Staff Assistant)

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The Technical Advisory Board

• Randall Seright (New Mexico Tech)
• Stephen Melzer (Melzer CO2 Consulting)
• Peter Hennings (Conoco Phillips)
• Hank True (True Oil)
• Gary Pope (Univ. of Texas)
• Charlie Carlisle (Chemical Tracers, Inc.)
• George Hirasaki (Rice Univ.)
• Paul Willhite (Univ. of Kansas)
• James Griffin (Texas A M)

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Personnel

• Technical15
• Contractual5
• Students25
• Non-technical--2

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Ideal EOR
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Real World EOR
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Enhanced Oil Recovery Works
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EORI Strategy
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Outreach Activities (FY 2008)

• Contractual Projects
• Conducted2
• Requested2
• In development2
• Cooperative Associations
• Conducted2
• Contacts14
• Producers Meeting (125), Fracture Workshop (5)
• Finding the Balance Energy and Climate

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Here and Now Technologies

• OOIP Analysis
• Fracture Permeability
• Low Salinity Water Flooding
• Scoping and Economic Analysis
• Chemical Techniques
• Well Stimulation

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CO2 EOR For the Long Term

• CO2 Appears To Be A Magic Elixir
• Significant Incremental Production

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Current CO2 Situation in Wyoming

• CO2 Sources
• Shute Creek Plant (LaBarge Field)
• Sales
• 220 MMCFD at high pressure (2250 psig)
• Venting
• 100 MMCFD 98.5 CO2 at low pressure
• 120 MMCFD of 55 CO2, 45 N2
• Lost Cabin Plant (Madden Field)
• Venting (needs upgraded plant for EOR)
• 46 MMCFD at low pressure
• Cimarex Gas Plant (Planned)
• Re-inject to Madison reservoir
• 94MMCFD 92 CO2

Cimarex
BP
Shute Creek 8/07
Lost Cabin 8/07
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CO2 EOR

• The amount of CO2 sequestered is
• 6-10 mcf per incremental barrel of oil
• BUT THIS VARIES DRAMATICALLY

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CO2 EOR

• The most efficient CO2 floods
• sequester about the same
• amount of CO2 as is given off
• by combusting the incremental oil
• Carbon Neutral

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CO2 EOR

• Less efficient CO2 floods
• sequester more CO2 than is given off
• by combusting the incremental oil.
• Green Oil

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CO2 EOR Provides

• Economically feasible development of
• sequestration technology
• Carbon neutral transportation fuels until
  alternatives are developed

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Capacity for CO2 EOR in WY

• Analysis of the capacity for CO2 EOR of all
  fields in Wyoming with greater than 5 million
  barrels total production indicates that as much
  as 20 TCF CO2 can be used over 25 years of
  injection time.
• For this to happen there needs to be a more
  extensive pipeline system and one or more
  anchor projects.

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CO2 EOR demand in Wyoming
Wo, 2007
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Capacity for CO2 EOR in WY

• Total incremental oil produced over time could be
  on the order of 3.3 billion barrels.
• Profitability must be determined by economic
  analysis.

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Capacity for CO2 EOR in PRB

• Capacity injection of CO2 for EOR in the Powder
  River Basin would yield about 1billion barrels of
  oil over time.
• Economic analysis indicates that about one fifth
  of this would be profitable if the CO2 came from
  a coal gasification plant.

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CO2 EOR VS. CO2 Sequestration

• CO2 EOR
• Objective use less CO2 to recover more oil
• Part of injected CO2 is produced and recycled
• CO2 extends the life of reservoirs
• CO2 sources both natural and anthropogenic
  according to
• availability and cost
• Current CO2 market price 10/t - 20/t
• CO2 sequestration
• Safely store as much CO2 as possible
• Long term storage management
• CO2 sources only anthropogenic
• CO2 capture cost with current technology
  150/t

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CO2 Sequestration in WY

• The Wyoming Geological Survey has determined that
  the Madison and Weber Formations on the Rock
  Springs Uplift could sequester 26 billion tons of
  CO2
• (450 TCF CO2)

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CO2 Sequestration in WY

• The EORI Together With Other Geologists In The
  Big Sky Sequestration Partnership Have Estimated
  That Approximately 10 Billion Tons of CO2 (175
  TCF) Can Be Sequestered In The Nugget Formation
  On The Moxa Arch In Western Wyoming

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