SPE-190286-MS
2018 EOR Survey in China-Part 1
Hu Guo, China University of Petroleum-Beijing; Jiayu Dong, No. 3 Oil Production Plant of Daqing Oilfield Company,
Petro China; Zhengbo Wang, Research Institute of Petroleum Exploration & Development, Petro China; Huifeng
Liu, Tarim Oil Company, Petro China; Ruicheng Ma, Debing Kong, Fuyong Wang, Xiankang Xin, and Yiqiang Li,
China University of Petroleum-Beijing; Haicheng She, Xi'an University of Technology
Copyright 2018, Society of Petroleum Engineers
This paper was prepared for presentation at the SPE Improved Oil Recovery Conference held in Tulsa, Oklahoma, USA, 14-18 April 2018.
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Abstract
This paper provides field scale EOR survey in China which is in line with biennial worldwide EOR
survey published by Oil& Gas Journal (OGJ). The EOR progress in China is not available due to
language difference and other reasons in OGJ EOR survey. From 2018, EOR survey in China will be
published biennially. The first part of this survey mainly focuses on basic information. Chemical flooding,
unconventional heavy oil, green recovery and natural gas recovery progress in China will be surveyed
and discussed in detail in the other four parts elsewhere. The EOR projects including field tests and field
applications in China are summarized in the same pattern as OGJ to the largest extent for better readership
outside China. Most data is collected from published journal papers and reports. Different from other
countries, there are only four major oil companies in China: CNPC, SINOPEC, CNOOC and Yanchang Oil.
The 28 branch companies of these four companies are both operator and owners. Oil and gas production
from CNOOC is all offshore. CNPC is the largest oil company in China and its oil production in 2016
accounts for 54% oil production in China. EOR survey in China includes chemical flooding (polymer, SP
and ASP flooding, gas flooding (CO2, nitrogen and air), thermal production, MEOR, and foam flooding.
EOR production in China in 2016 accounts for 18% total oil production, while chemical EOR accounts for
10 %. Up to present, there has been more than 34 ASP flooding projects in China, most in Daqing. The total
ASP oil production in 2016 is 407 million tons. More than 30 SP flooding projects have been carried out,
with incremental oil recovery factor of 7%-18% OOIP. More than 170 polymer flooding projects have been
carried out. Polymer flooding has been used widely in Daqing, Shengli, Xinjiang, Liaohe, He'nan and Bohai.
The incremental oil recovery from polymer flooding and ASP flooding is 7%-15% and 18%-30% OOIP
respectively. Gas flooding in China is not as successful as chemical EOR. Polymer flooding production in the
largest offshore oilfield in CNOOC accounts for 25% total oil production in 2016. While EOR production
in China accounts for 15%-18% in recent years, however, the world EOR oil production only accounts for
about 3.3% total oil production. EOR is greatly affected by oil price, as indicated from 26 years EOR content
change in America. It is the first time that detailed EOR survey in China in line with worldwide EOR survey
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in OGJ is given. The EOR survey in China provides valuable and helpful information for engineers and
researchers in oil and gas industry.
Introduction
Enhanced Oil Recovery (EOR) is drawing more and more attention recently when oil price rises. EOR field
test is necessary and important stage for any technique to be used in industrial application. Since many
uncertainties and risks lie in the process of conducing field tests, learning from previous field tests provides
an effective and efficient way to conduct a field test. A worldwide EOR survey has been reported in Oil&
Gas Journal (OGJ) every two years. Unfortunately, field tests progress in China is not included for many
reasons. From 2018, we will present the EOR field tests survey in China in line with OGJ to the largest
extent biennially. Basic information is presented in the first part. Chemical flooding, unconventional heavy
oil, green recovery and natural gas recovery progress in China will be surveyed and discussed in detail in
the other four parts elsewhere. In this paper, oil and gas resources in China is briefly introduced first. Four
oil companies production in recent years are then provided to better understand the challenge in oil and
gas industry in China. Increasing oil and gas consumption together with economy development in China
requires more and more oil, while the domestic oil production only cannot meet the demand. Thus, on the
one hand, imported oil content keeps climbing. On the other hand, great effort has been given to develop
EOR techniques with special attention on the actual local condition. Previous EOR field tests in China is
surveyed in the same pattern with OGJ, but not discussed in detail either. EOR survey in China provides
petroleum industry with hard-to get valuable information.
Oil and Gas in China
China has been the second largest economy entity since 2010. Together with the economy development
increase is the energy consumption. As is shown in Figure 1(BP 2017), oil consumption per capital of China
is expected to grow rapidly. However, oil consumption is related with the development degree. Figure 1
also shows that the more developed, the more oil consumption per capita, except for entities abundant in oil
and gas. Although China has become the second largest economy entity, considering its greatest population
and less developed science and technology in many areas, it remains the largest developing country in the
world. Primary energy consumption in China well reflects this point. Figure 2 (CNPC 2016) shows China
energy consumption in the past and future. Coal has been the major fuel for the long time in the past and will
remain to be the major fuel in the near and long future. Currently, 40% primary energy in China comes from
coal, which is generally regarded to produce more carbon emissions than other fuels. Emissions from coal
in northern China is regarded as one of the major contaminants in air smog, which has been a serious topic
in winter for years. The high coal share in primary energy consumption is also due to the abundance of coal
in China. Different from primary energy consumption in China, oil and gas are major fuels in the world,
as is shown in Figure 3 (BP 2017) and Figure 4 (BP 2017). Take America for instance, coal in America
accounts for only 15% in 2016, while the oil and gas share reaches 70%. This is quite similar for Europe.
Only in Asia & Pacific region, oil and gas consumption is approximately 40%, and the coal consumption
share is 50%. Coal consumption in China contributes to the high share in Asia& Pacific, as can be drawn
from Figure 1 and Figure 4.
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Figure 1—Oil consumption per capita 2016 Tonnes (Source: BP Statistical Review of World Energy 2017)
Figure 2—China Energy Conumption (Source: CNPC 2016)
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Figure 3—Primary energy world consumption Million tonnes oil
equivalent (Source: BP Statistical Review of World Energy 2017)
Figure 4—Primary energy regional consumption by fuel 2016 (Source: BP Statistical Review of World Energy 2017)
Figure 2 shows how rapidly the oil and gas consumption increases in China. Obviously, balance between
supply and demand becomes a significant issue. Figure 5 (Wang et al. 2014) shows the major big oil or gas
rich basin in China. The largest oilfield-Daqing Oilfield in China is located in Songliao Basin. Among these
basins, East China Sea Basin, West Taiwan Basin, Peart River Mouth Basin, Yingqiong Basin and South
China Sea Basin are offshore, while others are onshore and Bohai Bay Basin is both onshore and offshore.
Figure 6 (Xu et al. 2017) shows major 6 onshore oil and gas rich basins and their resources in China. Among
these basins, Sicuan Basin is rich in gas, while Songliao Basin is mainly rich in oil. Ordos Basin is both
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rich in oil and gas, and the oil and gas production makes Changqing Oilfield of China National Petroleum
Company (CNPC) become the largest oil company in China if judged by oil equivalent. Gas is also rich in
Ordos Basin. Although Figure 6 shows that the largest resource rich basin is Tarim Basin, the oil and gas
production in this basin is not the largest at present. Two reason account for this. First, oilfields in this basins
are in young-middle age stage, while oilfields in Songliao Basin are in their old age stage from exploration
and development perspective (Xu et al.2017). Second, the oil recovery factor is low. Figure 7 and Figure 8
show the oil and gas production data in the past 17 years. Data in these two figures are collected from China
National Bureau of Statistics and various reports issued including CNPC Economics& Technology Research
Institute (CNPC ETRI) annual report. Oil consumption increases rapidly, while domestic oil production
increases slowly. The gap between oil consumption and oil production is increasing. It is notable that oil
production in 2016 first decreased in the past 17 years. This reflects the low oil price effect on the oil
production activity in China. The oil reduction content in 2016 compared to that in 2015 is 7.4%. Imported
oil content in 2016 is as high as 65%. The gas consumption increased rapidly in the past 10 years. Imported
natural gas content in 2016 is 33%, reaching a new top. Since natural gas is clean energy, and China has
ambition to fulfill the commitment in The Paris Agreement to reduce carbon dioxide emission, the need for
natural gas will increase year by year much more rapidly. This is especially true for 2017, in which serious
natural gas shortage happens in many provinces in North China, causing international LNG spot price to rise
drastically in 2017. Shortage of oil and gas in China promotes the development of improved oil recovery
(IOR) as well as unconventional oil and gas resource development. The bad news is that technology to
effectively develop unconventional resource (tight oil, shale gas, super-heavy oil) in China just started,
while the good news is that great progress has been made in EOR techniques. The increasing oil and gas
demand in China may provide great opportunities for international oil companies (IOCs).
Figure 5—Main Oil and Gas Rich Basins in China(Huan Wang et al. 2014)
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Figure 6—Geological resources, recoverable reserves, and proven reserves bar
charts of deep petroleum of the six main basin onshore China (Xu et al. 2017)
Figure 7—Oil Production and Consumption in China
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Figure 8—Gas Production and Consumption in China
NOCs in China
It is necessary to introduce major national oil companies (NOCs) in China to better understand subsequent
EOR survey. There are three NOCs (CNPC, SINOPEC and CNOOC) in China and one local oil company
Yanchang Petroleum in Shaanxi province. Branch members and its oil production in recent years are show
in Table 1(Lu 2016; Lu 2017). As is shown in Table 1, CNPC produces more than 50% oil. All oil and
gas produced by CNOOC comes from offshore reservoirs. While the other three oil companies are mainly
onshore, although very small amount of oil and gas from CNPC and SINOPEC is offshore. Note that gas data
is not included in Table 1. From Table 1, it is obvious that top ten onshore oil companies are Daqing, Shengli,
Changqing, Xinjiang, Liaohe, Xibei, Tarim, Dagang, and Qinghai. CNOOC has four branch companies,
Tianjin, Shanghai, Shenzhen and Zhanjiang, which are not listed in Table 1. CNOOCTianjin produces
60-70% total CNOOC oil production from Bohai Bay Basin. Changqing oil and gas is mainly from Ordos
Basin, while Tarim and Xibei are both located in Tarim Basin. Since the reservoir geological parameters
are different, the balance cost is different. Among the 28 oil companies in Table 1, Tarim and Xibei perhaps
have the lowest comprehensive cost according to many public reports. Figure 9, 10 and 11 show the oil
production share change from 2013 to 2016. Note that oil price start to fall in 2014, and average oil price in
2016 is lowest in recent years. The Oil price can be seen in Figure 15. These figures show that oil production
in 2016 was reduced by 5.1% compared to 2013. Among the four oil companies in China, only CNOOC oil
production increase by 15% from 2013 to 2016. Compared with 2015 oil production, the reduction content
of CNOOC is 4.5%, the smallest among the four oil companies in China. Oil production can reflect the risk
resistance ability and comprehensive production cost of oil companies. Since oil price in 2016 is the lowest
in the past ten years, oil production will increase when oil price rises. It is worth mension that oil price gives
pressure to conduct EOR projects, and this will discussed later.
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Figure 9—Major Oil Companies Oil Production in 2013
Figure 10—Major Oil Companies Oil Production in 2016
Figure 11—Oil Production Change for Oil Companies in China
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Table 1—Major Oiliflelds and Their Oil Production in China (Unit: million ton)
EOR in China
OGJ EOR survey provides the industry with valuable information. EOR data in China is not included in
previous EOR survey (Koottungal 2014; Koottungal 2012). Figure 12 and Figure 14 are based on OGJ
worldwide EOR survey but with addition of EOR data in China (Wang et al. 2014; Wang, Zhou, and Nie
2010). Since oil data in China is given by weight (ton), conversion factors for heavy oil and chemical
flooding oil are 1.113m3/ton, 1.161m3/ton respectively(Wang, Zhou, and Nie 2010). Conversion factor
between m3 and bbl is 6.18. USA, China, Canada and Venezuela remain the top four countries that produce
large amount of EOR oil. In 2010, USA EOR oil production accounts for one third. In 2014, Russia EOR oil
outweighs Indonesia. Figure 13 compares different EOR techniques share between 2010 and 2014. Steam
flooding keeps the most productive EOR technique in the world. Gas flooding produces the second EOR oil
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in the world. Table 2 shows three EOR technique content in the world including China EOR data. Thermal
oil production remains the major EOR technique in the world, although its share decreased from 58.2%
in 2010 to 48.2% in 2014. The chemical production share keeps increasing from 14.7% in 2010 to 26.2%
in 2014. This change is mainly caused by the chemical EOR oil increase in China and Russia. In China,
chemical EOR production accounts for more than 50%. Figure 14 shows the EOR oil content comparison
between America and China, which are the largest two EOR oil providers in the world. EOR oil content in
China keeps on increasing, while EOR oil content in America keeps on decreasing. This is perhaps due to
the shale gas booming in America and oil production keeping pressure in China. Besides, chemical flooding
EOR has developed rapidly in recent years. This will be introduce briefly in the following part, and in depth
discussion will be resented in future. In Figure 14, American EOR production in 2016 is assumed the same
to 2014, while the actual production may be lower since the oil price in 2016 was lowest in recent 12 years.
China EOR oil content increased from about 4.88% in 2010 to 18.32% in 2016, while US EOR oil content
decreases from 8.67% in 2010 to 5.83% in 2016. World EOR oil including China data content in 2014 is
3.3% (Wang et al. 2014). Oil price are given in Figure 15 and the data is from BP Statistical Review of
World Energy 2017. This oil price is not the original one but that incorporated the Consumer Price Index
for the US. EOR oil content in the USA since 1992 are calculated from data provided by 2014 worldwide
EOR survey and 2017 BP World Energy Review. Figure 15 indicates that America EOR oil share does
change with oil price, although there are some exceptions. In 2012, the oil price rises, but the EOR oil ratio
decreases. The cause is not clear, perhaps shale gas production reduces the need and production for oil.
Figure 12—World EOR Output Share by Country (Unit:%)
Figure 13—World EOR Output Share by Technique (Unit:%)
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Figure 14—EOR Oil Content in China and America
Figure 15—American EOR oil changes with world crude oil price
Table 2—World EOR Share including China Data
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EOR survey in China
It not easy to collect detailed EOR projects data in China. Table 3 is summary of previous EOR projects
number. Actual project number is larger. Only typical chemical flooding projects are given. As is shown in
Table 3, chemical flooding is the most popular EOR technique. In 2016, there more than 160 active polymer
flooding projects in China, most are in Daqing and Shengli Oilfield. In Daqing Oilfield, there are 93 blocks
using polymer flooding, including 57 first class formation blocks(Wang, Du, and Zhang 2018; Cao et al.
2018) There are 56 polymer flooding blocks in Shengli Oilfield (Ji et al. 2016). ASP flooding projects are
well surveyed in previous publication (Hu et al. 2017a). Two new ASP flooding in Xinjiang and Liaohe
have been conducted (Liao, Ma, and Wang 2018) but not included in the previous ASP publication. EOR
production are summarized in Table 4, in which gas and microbial production are estimated from various
references (Liao, Ma, and Wang 2018). Chemical flooding production in China is estimated 2000 million
ton (Liao, Ma, and Wang 2018). Thermal production in Table 4 is collected from various publications and
webpages. Figure 16 shows the EOR share in 2016. Thermal production and chemical flooding production
accounts for 98% EOR production in China. This is quite different from other countries, especially America,
where gas flooding is the major EOR technique. Although there are increasing interests of CO2 flooding and
CO2 capture, ultilization and storage (CCUS), few industrial application was seen in China. CO2 flooding
is most prominent in Jilin Oilfield, where CO2 is available in local CO2 rich gas reservoir. Even so, CO2
production in 2016 in China is about 10 million ton. EOR oil content in China and the world is contrasted
in Figure 17. The world EOR production only accounted for 3.3% in 2014. If EOR production share from
China remains 25% of the world EOR production in 2016, the 2016 EOR production is predicted 3.1%.
Lots of chance lies in EOR studies. Progress in chemical flooding and heavy oil production in China may
provide the petroleum industry with insights. Table 5 is EOR survey in China. More detailed EOR projects
will be given in future. Abbreviations are the same with that in OGJ worldwide EOR survey. Hundreds of
references have been reviewed, of which most are in Chinese, thus are not listed. This table is as specific
as possible, however, some information remains to be improved. In the following parts, we will discuss
major chemical EOR techniques in China briefly. Detailed discussion about chemical flooding, thermal
production, green recovery and natural gas recovery will be presented elsewhere in future.
Figure 16—2016 EOR oil production m China
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Figure 17—EOR oil share for China and the world
Table 3—Table EOR Projects in China
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Table 4—2016 EOR Projects in China
Table 5—EOR Survey in China
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Chemical Flooding
Chemical flooding includes polymer flooding (PF), surfactant-polymer flooding (SP), and alkali- surfactantpolymer (ASP) flooding. Foaming flooding is not regarded as chemical flooding here because it involves
both gas and chemical flooding. Chemical flooding is very mature in China since industrial application
starts as early as 1996. In 1996 and 1997, polymer flooding is used industrially in Daqing and Shengli
Oilfield, first and second largest oilfield in China respectively. SP flooding entered industrial application
stage in Shengli in 2007. ASP flooding entered industrial application in 2014 in Daqing Oilfield. In 2003,
the first polymer flooding offshore was conducted in Bohai Oilfield by CNOOC-Tianjin Company. At
present, polymer flooding oil production plays a significantly role in Bohai, which is the largest oilfield
of CNOOC. Detailed discussion about chemcial flooding in China and in comparison with other countries
will be presented in future
Polymer flooding
First Polymer flooding pilot in China was conducted in 1972 (Wang et al. 1998). In 1991, industrial tests
were conducted to pave way to industrial application. Many publications about polymer flooding in China
are available in SPE conferences and journals. Figure 18 shows the polymer flooding development in
Daqing. EOR oil percentages are shown in Figure 19. In 2016, oil production content by EOR techniques
in Daqing Oilfield was 34% (Xin 2017). In 2016, there more than 93 active polymer flooding projects in
Daqing (Cao et al. 2018). Polymer flooding and ASP flooding production in 2016 by Daqing Oilfield was
850 million tons and 407 million tons respectively, and this year's polymer utility factor (UF) was 47.3 ton/
ton, higher than 47 for three years (Zhang 2017). Figure 20 shows polymer utility factor since 1996.
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Figure 18—Polymer flooding in Daqing
Figure 19—Daqing Oilfield EOR oil content in recent years
Figure 20—Polymer Utility factor in Daqing Oilfield
Polymer utility factor is a key parameter to reflect the technical effect (Hu et al.2017a,b). During early
polymer flooding stages, UF was as high as 150 in Daqing and Shengli. At present, polymer flooding in
Daqing is developing toward salt resistance polymer flooding using produced water to improve economical
and technical effects. Another reservoir where polymer was used widely is Sengli (Gao 2014). Reservoir
petro-physical parameters in Shengli is not as good as that in Daqing, as shown in Table 6 (Zhang et al.
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2011). Polymer flooding in offshore reservoir in China also deserves attention since offshore reservoirs in
China provides possible great potential increase in China. Offshore oil in CNOOC is much more viscous
than that onshore, thus it is more difficult to use chemical flooding. Polymer flooding in offshore reservoirs
are available elsewhere(Xiao et al. 2014; Xiaodong et al. 2013; Kang and Zhang 2013; C. Liu et al. 2012;
Luo and Zhao 2011; Zhao et al. 2010; Zhou et al. 2008; Zhou et al. 2007; Han et al. 2006; Lu et al. 2010).
At present, there are 211 polymer flooding wells (44 Injectors and 167 Producers) in Bohai Oilfield (Li et
al. 2018). In the larest block SZ36-1 of CNOOC, polymer flooding production accounts for 25% (Li et al.
2018), make it the largest offshore polymer flooding block in the world to the best of our knowledge.
Table 6—Polymer hooding in typical reservoirs in China (Zhang et al. 2011)
ASP flooding
ASP flooding has entered into industrial stage in Daqing since 2014. 30 years have been spent in developing
this promising technology. Incremental oil recovery is as high as 30% OOIP upon water flooding with a
high water cut (96%) and oil recovery factor (35-50%). According to latest information, there are 9170 ASP
flooding wells (injectors and producers) in Daqing (Qi 2018). Figure 22 shows ASP flooding development
history in Daqing. Field practice of ASP flooding in Daqing is reviewed previously (Hu et al. 2017a,b).
One important issue regarding with ASP flooding is the alkali selection. Typical two ASP flooding field
tests in Daqing using different alkalis (NaOH and Na2CO3) are shown in Figure 23 (Hu et al. 2017c). This
figure shows that water cut decreased drastically in ASP flooding, and Na2CO3 ASP flooding had bigger
water cut reduction than NaOH.
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Figure 21—ASP flooding oil in Daqing Oilfield
Figure 22—ASP flooding development in Daqing Oilfield
Figure 23—Typical SASP and WASP water cut change (Hu et al. 2017c)
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SP Flooding
Different from Daqing's interest in ASP flooding, Shengli has promoted SP flooding in 2007, four years
after the first large SP flooding field test (Zhenquan et al. 2012). The first SP flooding field test was so
successful that more enlarged field tests were conducted. Until July 2017, there have been 21 industrial SP
flooding blocks in Shengli Oilfield, with incremental oil recovery of 7%-18% OOIP (Wang et al. 2018). SP
flooding in Shengli was so attractive that many people in China believed it is the developing trend of future
chemical flooding. However, not all SP flooding field tests are successful. Among the 5 SP flooding field
tests conducted by CNPC, only two in Xinjiang and Liaohe are very successful (Liao, Ma, and Wang 2018).
One industrial application SP flooding field test was conducted in Xinjiang Oilfield. SP flooding is very
risk in medium-low permeability formation since the surfactant retention is high. Thus more care should be
taken in conducting SP flooding field tests. Other researchers also noted the problems in SP flooding, thus
one suggestion is to increase the surfactant concentration (Liu et al. 2018).
Conclusions
Oil consumption in China increased rapidly, while oil production in China increased slowly. The gap
between supply and demand has been increasing rapidly. Imported oil content reached 63% in 2016. Limited
oil and gas resources in China help promote EOR technology in China, providing with IOCs and NOCs many
chances. EOR survey in China shows that EOR oil content in 2016 accounts for 18% total oil production,
much higher than the global world EOR oil content in 2014 was 3.3%. World EOR oil in 2016 is predicted
to 3.1%. American EOR oil content decreases year by year between 2010 and 2016, while EOR oil in
China increased. EOR oil of America in 2016 is 5.83%. Chemical flooding in China contributes most oil,
the second is thermal production. It takes a long time for potential EOR technique to go from theory to
actual practice, as indicated by polymer flooding and ASP flooding practice history in China. Gas flooding
EOR, especially CO2-EOR in China is very limited and more effort is required. Although many microbial
enhanced oil recovery (MEOR) projects have been done in China, this technique has long way to go to
be applied industrially. Polymer flooding, SP flooding and ASP flooding have all been used industrially
in China. Daqing Oilfield has the largest chemical flooding application both in polymer flooding and ASP
flooding. EOR oil content in Daqing in 2016 is 34%. Offshore reservoir polymer flooding in China also
deserves attention. Both opportunities and challenges exist in EOR techniques in China.
Acknowledgements
This work was financially supported by China National Natural Science Foundation Project
(No.51604285), and Beijing Natural Science Foundation (No.316404), and China National Special Project
(2016ZX05010-003-001,2016ZX05025-003-010).
Nomenclature
EOR
MEOR
Prev.Rf
ASP
SP
CNPC
CNOOC
SINOPEC
UF
Air-F
=enhanced oil recovery
=microbial enhanced oil recovery
=previous recovery factor
=alkali-surfactant-polymer flooding
=surfactant polymer flooding
=China National Petroleum Corperation
=China National Offshore Oil Corporation
= China Petrochemical Corporation
=utility factor
= air foaming
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Air F
I/P
WT
PF
WF
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21
= air flooding
=Inj ectors/Producers
=water cut
=polymer flooding
=water flooding
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