Carbon Dioxide Flooding in Kansas Reservoirs G. Paul Willhite Tertiary Oil Recovery Project 14th Oil Recovery Conference, March 14-15,2001 Minimum Miscibility Pressure Requirements for Carbon Dioxide Miscible Flooding Minimum miscibility pressure must be determined for Kansas crude oils Must be possible to re-pressure reservoir to reach MMP during the displacement process Carbon dioxide must be available at a price that will make the process economic Tertiary Oil Recovery Project Minimum Miscibility Pressure in Hall-Gurney LKC Sample Information Average Lab Slimtube Slimtube Measured Field Field Sample Pressure Percent API Name Operator Location (psig) Recovery Gravity Hall-Gurney Shields Oil Producers Letsch #10 1006 47.4 37.5 1208 85.3 1210 86.3 1297 90.2 Hall-Gurney Hallwood Petroleum Olson C#5 1225 89.1 38.4 Tertiary Oil Recovery Project Outline of Presentation Research on Carbon Dioxide Miscible Flooding Technology Applied to Kansas Reservoirs Carbon Dioxide Flooding in Central Kansas Reservoirs Field Demonstration Project Hall-Gurney Field The Carbon Dioxide Supply Tertiary Oil Recovery Project Research on Carbon Dioxide Miscible Flooding Technology Potential Application of CO2 Process in Kansas(1979-1981) Evaluation of LKC CO2 Potential(19861989) The Southwest Kansas CO2 Initiative (1997-1998) The Central Kansas Initiative(1998- ) Tertiary Oil Recovery Project Outline of Presentation Research on Carbon Dioxide Miscible Flooding Technology Applied to Kansas Reservoirs Carbon Dioxide Flooding in Central Kansas Reservoirs Field Demonstration Project Hall-Gurney Field The Carbon Dioxide Supply Tertiary Oil Recovery Project Carbon Dioxide Flooding in Central Kansas Reservoirs Central Kansas Initiative (1998 KTEC (1999-2000) DOE Class Revisited Project (2000-2005) Tertiary Oil Recovery Project Carbon Dioxide Flooding in Central Kansas Reservoirs A Cooperative Program Involving Shell CO2 Ltd(Kinder Morgan), Energy Research Center at University of Kansas( TORP, KGS) Overall Objective Verify technical and economic viability of the application of CO2 miscible flooding to Central Kansas oil fields Critical element: Demonstrate sufficient field performance(oil in the tank) to justify the development of a carbon dioxide pipeline into Central Kansas Tertiary Oil Recovery Project Components of Carbon Dioxide Program Phase I:Conduct a feasibility study on Arbuckle and Lansing Kansas City Reservoirs(KTEC Contract) Phase II: Select a site and design one or more field pilot CO2 miscible floods(DOE Class Program Revisited) Tertiary Oil Recovery Project Components of Carbon Dioxide Program(Continued) Phase III: Construct and operate the CO2 pilot(DOE Class Program Revisited) Phase IV: Evaluate technical and economic performance of pilot(DOE Class Program Revisited) Phase V: Build a CO2 pipeline into Central Kansas(Shell CO2, Ltd/Kinder Morgan) Tertiary Oil Recovery Project KTEC Contract Results Collected representative Arbuckle oil samples and determined the MMP and basic properties of these oils Compiled a data base of LKC reservoirs and identified potential sites where pilot-scale demonstrations would be effective Tertiary Oil Recovery Project KTEC ContractResults(Continued) Measured rock properties to provide input to reservoir characterization and simulation Performed reservoir characterization of potential LKC sites within Hall Gurney and to identify optimal sites for CO2 screening simulations Tertiary Oil Recovery Project KTEC ContractResults(Continued) Simulated CO2 miscible flood response at selected sites with screening models Developed an economic model of the demonstration sites and the regional resource Prepared a proposal for the DOE Class Revisited Program to support a field demonstration program in the Hall-Gurney Field(May 1999) Project Completion Report(September 2000) Tertiary Oil Recovery Project Hall-Gurney LKC Oil Resource10 County Area Lease Scale Economic Variables-CO2 Flooding CO2 cost $1/mcf Oil price $20/bbl Capital cost $4,000,000/sec CO2 utilization 5/10 mcf/bbl (net/gross) Recovery 30% Primary + Secondary Operations $400-600M/yr/sec NRI 84% Residual Oil Volume ???? Kansas Geological Survey CO2 Costs vs. Oil Price for 20 % IRR CO2 Cost / MCF $2.50 $2.00 Assumes all other parameters in "Base Case" remain constant Base Case: $20/bbl Oil $1.00/mcf CO2 $1.66 / MCF CO2 12% OOIP $1.50 $1.00 $1 7 $0.50 $15 $20 $25 Oil Price / BBL Kansas Geological Survey $30 Base Case: Sensitivity to Oil Price $20/bbl Oil $1.00/mcf CO2 $25 Oil $20 Oil $15 Oil 2.1 MBO IRR (BFIT) Approximate Lower Economic Limit Kansas Geological Survey 3.5 Net MBO/ Acre 12% OOIP Probable Upper Limit L-KC Reservoirs Central Kansas Uplift Required Recovery for 20% IRR $20 Oil Recovery Required: 2,500 gross BO/acre Recovery Factor Resource Threshold 30% P+S 8,500 BO/acre 25% P+S 10,200 BO/acre $25 Oil Recovery Required: 1,650 gross BO/acre Recovery Factor Resource Threshold 30% P+S 5,500 BO/acre 25% P+S 6,600 BO/acre Kansas Geological Survey Outline of Presentation Research on Carbon Dioxide Miscible Flooding Technology Applied to Kansas Reservoirs Carbon Dioxide Flooding in Central Kansas Reservoirs Field Demonstration Project HallGurney Field The Carbon Dioxide Supply Tertiary Oil Recovery Project Field Demonstration of CO2 Miscible Flooding in the L-KC, Central Kansas March 7,2000 Class II Revisited DE-AC26-00BC15124 MV Energy LLC L-KC Recoveries in Hall-Gurney and Trapp Hall-Gurney Cumulative Production Primary + Secondary Lansing-Kansas City (Per Section Basis) Pilot Site > 8 MBO/acre 6-8 MBO/acre Trapp 4-6 MBO/acre 2-4 MBO/acre Kansas Geological Survey Project Economics Total Project – $5.4 million $2.0M – CO2 Purchase, transport, recycling $1.5M – Research, Technology Transfer $1.1M – Capital Costs (wells, etc.) $0.8M – Operations (6 years) Funding $2.4M Kinder-Morgan CO2 Co. LP and Murfin Drilling Company $1.9M U.S. Department of Energy $1.0M KGS and TORP $0.1M Kansas Department of Commerce DOE Class Program Revisited Central Kansas CO2 Demonstration Project Phase 1-Reservoir Characterization( 1 Year) Phase 2-Field Demonstration(4 years) Phase 3-Monitoring(1 year) Demonstration Design Summary 55 acre, nine-spot 2 CO2 injectors 7 Producers 5 Containment Water Injectors 0.843 BCF CO2 injectedWAG 4.6 year operating life >80,000 BO estimated recovery during DOE >20,000 BO in 3 years after DOE Project Outline of Presentation Research on Carbon Dioxide Miscible Flooding Technology Applied to Kansas Reservoirs Carbon Dioxide Flooding in Central Kansas Reservoirs Field Demonstration Project Hall-Gurney Field The Carbon Dioxide Supply Tertiary Oil Recovery Project Carbon Dioxide Supply Is the resource base in LKC reservoirs large enough to support a pipeline that could deliver CO2 at $1.00/mcf? Can the “Golden Trend” in the HallGurney Field anchor a pipeline? Tertiary Oil Recovery Project Pipeline Cost Estimates* Distance is 220 miles to Hall-Gurney Other LKC areas would require 110 miles of lateral lines Pipeline cost is $22,000/inch-mile Ten year amortization of capital cost at 10% based on 80% of line capacity CO2 is available at Postle Field at pipeline pressure *William Flanders, Transpetco Engineering Pipeline Considerations CO2 oil recovered is 25% of Primary and Secondary Net CO2 required is ~4 mcf/BO Risk assessment=fraction of operators who would install floods Hall Gurney “Golden Trend”70% Nearby LKC areas(Lateral)50% William Flanders LKC Pipeline Results Risk weighted CO2 for LKC is ~60-65 BCF +-10% CO2 oil potential from LKC ~15-16MMBO Not enough LKC resource base to anchor pipeline Need ~184 BCF risk weighted CO2 to deliver at $1.00/mcf at 10% IRR/10 year amortization Carbon Dioxide Pipeline Need an additional 120 BCF risk weighted CO2 potential to build 8” pipeline to Central Kansas Are Arbuckle reservoirs potential carbon dioxide miscible flood candidates? Minimum miscibility pressure ~1600 psi Initial reservoir pressure~1050-1150 psi Well connected to an aquifer Determining Distribution of “Low” Pressure Arbuckle Concept: Low SIP on DST’s in mature production indicates less effective water drive than in areas with higher SIP Methodology: Map SIP for infill and replacement wells in mature Arbuckle fields. DST’s in top 30 feet and > 80 feet of fluid recovery. Preliminary results: Significant contiguous areas have lower pressures than would be anticipated for strong water drives. Original BHP “Normal” pressured areas Moderate pressured areas “Low” pressured areas Kansas Geological Survey 1150# 1050# 550-750# 300-550# “Low” Pressure Arbuckle, Bemis Field, Ellis Co. Kansas Arbuckle Production Total Cum.: 221 MMBO More than 8 MBO/acre All 200 MMBO 550-750 psi* 70 MMBO <550 psi* 20 MMBO “High” Moderate *recent DST’s in top of Arbuckle Note: Data is very preliminary Low DST SIP overlain by Arbuckle Structure Kansas Geological Survey Carbon Dioxide Supply ICM(U.S. Energy Partners, LLC) announces ethanol plant to be constructed in Russell(February 5,2001) On stream ~November 1,2001 CO2 production 3.4 MMCFD(wet at atmospheric pressure) 8.5 miles from CO2 demonstration project Tertiary Oil Recovery Project Location of Ethanol Plant & CO2 EOR Site Kansas Geological Survey Carbon Dioxide Supply-ICM Plant CO2 supply capable of supporting small scale commercial operation in the Hall Gurney Field(~1 BCF/year) Cost to deliver CO2 at 1500 psi at the field is on the order of $1.00/mcf for commercial scale operation Working with ICM to secure CO2 supply for LKC CO2 demonstration project Tertiary Oil Recovery Project http://www.kgs.ukans.edu/CO2/reports.html UPDATE: Field Demonstration of CO2 Miscible Flooding in the L-KC, Central Kansas Martin K. Dubois Class II Revisited DE-AC26-00BC15124 Kansas Geological Survey MV Energy LLC KGSociety Tech Meeting, March 1, 2001 CO2 Pilot Project Team Kansas Geological Survey Alan P. Byrnes Marty Dubois W. Lynn Watney Timothy R. Carr Willard J. Guy John Doveton Dana Adkins-Heljeson Kenneth Stalder Kinder-Morgan CO2 Co. LP Russell Martin Paul Nunley William Flanders(consultant) Tertiary Oil Recovery Project MV Energy LLC G. Paul Willhite Don W. Green Shapour Vossoughi Jyun-Syung Tsau Richard Pancake Rodney Reynolds Rajesh Kunjithaya Ed Clark Dave Murfin Jim Daniels Larry Jack Niall Avison U.S. Department of Energy Edith C. Allison (Prgrm Mngr) State of Kansas (Dept. of Commerce) Daniel Ferguson (Project Mngr) ICM, Inc. Dave Vander Griend Kansas Geological Survey Tertiary Oil Recovery Project The Potential for Carbon Dioxide Flooding in Kansas Kansas oil production 96,000 B/D Oil production from CO2* 12,500 B/D *CO2 Pipeline @ 50 MMCFD CO2 oil production at 4 MCF/BO Tertiary Oil Recovery Project