CHEMICAL EOR FIELD EXPERIENCE Oil Chem Technologies, Inc. Sugar Land, TX USA www.oil-chem.com PRESENTATION OUTLINE Introduction to Oil Chem EOR – past EOR - Oil Chem Technologies field experience to share EOR - future PRESENTATION OUTLINE Introduction EOR – past EOR - Oil Chem Technologies field experience to share EOR - future WHY EOR? Oil Recovery Overview PRIMARY 15% RESIDUAL OIP 33% WATER 18% TERTIARY 34% BAVIER; BASIC CONCEPTS OF EOR PROCESSES(1991) WHY CHEMICAL EOR? ECONOMICS FOR FIELD ASP PROJECTS Field W. Kiehl Cambridge Daqing Surfactant 0.10% 0.10% 0.30% Alkali 0.80% 1.25% 1.00% Polymer 1050 ppm 1425 ppm 1200 ppm Tot. Cost $375,000 $2,518,000 $1,009,000 Inc. ASP Oil 275,000 1,143,000 270,000 Cost/bbl $1.46 $2.20 $3.79 ROLE OF SURFACTANTS Reduce interfacial tension Wettability alteration Polymer, CDG, BW, etc. can be used along with surfactants when mobility control is necessary SURFACE OR INTERFACIAL TENSIONS SYSTEM mN/m Water 72 Pure Hydrocarbons ~ 40 Crude Oil ~ 30 - 40 Crude Oil/Water ~ 3 - 30 Crude Oil/Water/Surfactant < 0.01 RELATIONSHIP BETWEEN CAPILLARY NUMBER AND OIL RECOVERY % Oil Recovered 100 80 60 40 20 Nc = µ / cosθ Nc = Capillary Number = Darcy Velocity µ = Viscosity = Interfacial Tension Θ=wetting angle 0 1.E-06 1.E-05 1.E-04 Capillary Number 1.E-03 1.E-02 PRESENTATION OUTLINE Introduction EOR – past EOR - Oil Chem Technologies field experience to share EOR - future LOUDON FLOOD - EXXON 1983 2.3% surfactant 96% of the connate salinity 0.3% pore volume 0.1% Xanthan gum 56 million pounds surfactant was injected in 9 months 68% ROIP ROBINSON – MARATHON 1983 10% surfactant – petroleum sulfonate 0.8% hexanol as co-surfactant 2.5% salt No polymer 0.1 pore volume 19 –21% ROIP CHEMICAL EOR PAST PROBLEMS Technical success but limited “commercial” success Reasons? EOR BY CHEMICAL FLOOD Limited commercial success for the past two decades - Reasons? Sensitivity to oil price Limitations of chemicals High surfactant concentration Salinity optimization required Potential emulsion block However, Extensive lab evaluations and field pilot tests support the feasibility of chemical flooding New chemicals and processes open the door for new opportunities Recent field data using these new chemical and processes proves chemical flooding is an effective way to recover residual oil PRESENTATION OUTLINE Introduction EOR – past EOR - Oil Chem Technologies field experience to share EOR - future CURRENT PROJECTS 21 Current projects 20MT to 400 MT Surfactant/mo 400 MT @ 0.1% = 28,000,000 bbl/mo injection California 50,000 MT surfactant/yr @ 0.2% =155,000,000 bbl/yr Build plant onsite CHINA EOR PROJECTS • Heavy crude recovery • Low perm formation oil recovery • High temp. / high salinities • Effective, economical offshore EOR CHINA EOR PROJECTS INJECTED, ON-GOING & APPROVED PROJECTS SS B2080, SS B5050, SS B1688, ORS-46L, ORS-97HF, ORS-41HF 1992-94: LAB EVALUATION Over 100 Surfactants Were Tested Including: ORS-41 Petroleum Sulfonates Carboxylates Lignin Sulfonate/Petroleum Sulfonates Microbiological 1995 - INITIAL FIELD EVALUATION Daqing No.4 Field - Oil Chem Technologies’ ORS-41 Daqing No.1 Field – another US company’s Petroleum Sulfonate 1996-1998: ENLARGED FIELD EVALUATION ORS-41 was the ONLY surfactant chosen for enlarged field evaluation. More than 7000 MT of the ORS-41 was injected in several field blocks and this confirmed the viability of the ASP process SPE 36748, 57288, 71061, 71491, 71492 Oil Recovery Tons/Day ASP PROJECT USING ORS-41TM IN DAQING, CHINA 20 15 BEFORE ASP AFTER ASP 10 5 0 1 2 3 Well Number 4 SPE 36748 (1996) DAQING CENTRAL WELL SPE 57288 DAQING CENTRAL FIELD SPE 84896 HEAVY OIL RECOVERY BY CREATING WATER EXTERNAL PSEUDOEMULSION HEAVY OIL PSEUDO-EMULSION Control 0.1% SF-100 Surfactant HEAVY OIL PSEUDO-EMULSION Control 0.1% SF-100 Surfactant HEAVY OIL PSEUDO-EMULSION Control Oil Viscosity = 6,700 cps 0.1% SF-100 Surfactant Oil Viscosity < 200 cps LAB CORE FLOOD DATA 100 90 80 采出程度,% % Oil Recovery, 70 60 水驱 试剂1驱(0.1%) 试剂2驱(0.1%) 试剂3驱(0.1%) 50 40 Water flood 30 20 10 0 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2.2 2.4 2.6 2.8 3 Injection Volume, PV 注入量(PV) LOW PERM INJECTIVITY ENHANCER Permeability: 0.1 – 10 md High water injection pressure makes water flood unfeasible FI series surfactants reduced injection pressure, increased injectivity Effectively increased the injectivity in several fields in China and USA CANADA EOR PROJECTS • • • • • • HEAVY CRUDE TAR SAND LOWER RESERVOIR TEMPERATURES FRESH WATER SOURCES HIGH SALINITY RESERVOIRS FRACTURED CARBONATE FORMATIONS CANADA EOR PROJECTS INJECTED, ON-GOING & APPROVED PROJECTS SS B2080, SS B5050, SS B1688, ORS-46L, ORS-97HF, ORS-41HF Some field results will be published upon completion of projects NORTHERN CANADA SP PROJECT Heavy oil field, API = 12 -13 Under polymer flood Added 0.1% surfactant with polymer in November, 2006 ~ 3 months later, the water cut reduced from 97% to 58% UNITED STATES EOR PROJECTS • FRESH WATER SOURCES • HIGH SALINITY RESERVOIRS • FRACTURED CARBONATE FORMATIONS • LOW PERMEABILITY UNITED STATES EOR PROJECTS INJECTED, ON-GOING & APPROVED PROJECTS ORS-41HF (2), ORS-62, ORS-97, ORS-46HF, ORS-162, SS-7593, SS B1688(2) SHO-VEL-TUM FIELD On production > 40 yrs, extensive water flood, produced 4 bbl/day ASP started on 2/98, using Na2CO3 and ORS62 Total incremental oil > 10,444 bbl (22 bbls/day) in 1.3 years SPE 84904 OIL SATURATION AFTER ASP INJECTION 35 So, %PV 30 25 20 15 10 5 0.00 0.10 0.20 0.30 0.40 (SURFACTANT CONC, % )(ASP SLUG SIZE) SPE 84904 MELLOTT RANCH WYOMING ASP PROJECT 0.1% ORS-46HF, 1% NaOH, 1300 PPM polymer Recovered 989,000 bbl or 16.4 % OOIP between 2003 and 2005 Injection volume decreased 2,800,000 bbl due decreased water cut MELLOTT RANCH ASP PROJECT - ORS-46HF 250 180 160 200 OIL, BBL x 1,000 120 150 100 80 100 60 40 50 NEW WELL WATER FLOOD SINCE 1966 ASP 0 20 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 YEAR WATER, BBL x 10,000 140 BIG SINKING, KENTUCKY Project Information Crude oil : 100 Million bbl Bottom Hole Temperature: 30oC Depth: 1150 ft Thickness: 25 feet (7.32 meter) Permeability: 45 mD SPE 100004 BIG SINKING, KENTUCKY Chemical injected: 0.8% NaOH + 0.1% ORS-162HF Problems overcome: IFT lowered from 23.6 to 0.001 mN/m Poor water injectivity High water cuts 220% increase in injectivity Large field trial scheduled to begin in 12/2007 SPE 89384 BIG SINKING, KENTUCKY SPE 89384 TANNER FIELD, WYOMING Project Information Crude oil : 21o API Bottom Hole Temperature: 175oF Depth: 8915 ft Thickness: 25 ft Porosity: 20% Permeability: 200 mD SPE 100004 TANNER, WYOMING SPE 100004 SOUTHEAST ASIA PROJECTS • HEAVY CRUDE • HIGH TEMPERATURES • ENVIRONMENT CONCERNS • FRESH WATER SOURCE SOUTHEAST ASIA PROJECTS INJECTED, ON-GOING & APPROVED PROJECTS SS 6-72LV, SS 8020 OFFSHORE ALKALINE SURFACTANT (AS) PROJECT SEA WATER IS SOFTENED ON THE PLATFORM SINGLE WELL TEST SUCCESSFULLY PERFORMED USING SS 6-72LV INJECTED WITH NAOH PILOT PROJECT WILL PROCEED SOUTH AMERICA PROJECTS • VARIOUS RESERVOIR CONDITIONS • MANY EOR CANDIDATE FIELDS – OFFSHORE & INLAND • ASPHALTENE REMOVAL / WELLBORE DAMAGE REMOVAL • IMPROVED GAS RECOVERY/REDUCED WATER CUT SOUTH AMERICA PROJECTS INJECTED, ON-GOING & APPROVED PROJECTS ORS-57HF, ORS-41HF (2), SS-6046, SS GI-1416, SS B1688 as ORS-41HF (2), ORS62, ORS-97, ORS46HF,ORS-162, SS7593, SS B1688(2) SS B2080, SS B505, ORS-46L, ORS97HF, ORS-41HF SS 77-57 ORS-41(4) *, SS B1688 SS B8020 SS 6-72 ORS-57HF ORS-41HF SSSS-6046, SS GI1416 ORS-41HF, SS B1688 ORS-41, SS6566, ORS-57 INJECTED, ON-GOING & APPROVED PROJECTS PRESENTATION OUTLINE Introduction EOR – past EOR - Oil Chem Technologies field experience to share EOR - future EOR BY CHEMICAL FLOOD The future is bright – Reasons? High oil prices Energy demand Diminishing reserves Past experience New technologies CHEMICAL EOR - THE FUTURE New processes use less surfactant (up to 10 times less) Extensive lab evaluations support the feasibility of chemical flooding Field data proves chemical flooding is an effective way to recover residual oil Cost of chemicals have not increased in proportion to price of crude oil COST OF CHEMICALS 1980 2006 $3-4/lb $1/lb $0.40-0.60/lb $0.60-1.2/lb Alkali3 $0.12/lb $0.20-.040/lb Crude Oil $12/bbl $50-70/bbl $8-15 $0.50-$5 Polymer1 Surfactant2 Incr. Cost/bbl 1 Some processes eliminate need for polymer 2 Surfactant concentration has been reduced by 10 3 Alkali has been reduced by 50% or in some cases is not needed at all PROCESS CHOICES Surfactant Surfactant Polymer Alkaline Surfactant Alkaline Surfactant Polymer Smart Surfactant Pseudo-emulsion Chemical/Mechanical SCALING UP ENLARGED FIELD CHEMICAL FLOOD Raw Material Supply • Source (local or import) • Availability (quantity, quality) • Alternative suppliers • Storage Manufacturing Location • Foreign, domestic, on-site • Shipping, tax, etc. • Storage and distribution • Flexibility ENLARGED FIELD CHEMICAL FLOOD Capital Investment • Up-front investment • Operational cost • By-products CHEMICAL EOR OPPORTUNITIES Conventional Oil Recover Factor <33% Oil reserves & reservoir characteristics have already been confirmed Improved processes and chemicals are available Better scaling and modeling has been developed CHEMICAL EOR OPPORTUNITIES Two trillion bbl of oil remain in depleted or abandoned wells Chemical floods offer the only chance in many depleted & water flooded reservoirs Chemical EOR must be re-evaluated based on current technical & economic conditions Minimal or no remediation is necessary, minimizing environmental constraints Trained personnel are available locally COMPLIMENTARY SURFACTANT EVALUATION Total Bill SS-7593 = $ 0.00 1 IFT, mN/m To: Oil Chem Technologies 0.1 0.01 0.001 0 0.1 0.2 0.3 SS-5566, WT% 0.4 0.5 SHARE OUR TECHNOLOGY & EXPERENCES TEAM WORK - KEY TO SUCCESS THANK YOU ! Oil Chem Technologies, Inc. 12822 Park One Drive Sugar Land, TX 77478 281-240-0161 www.oil-chem.com