EOR Yearbook 2015: The Definitive Reference Guide to the Enhanced Oil Recovery Market 2015-2025

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EOR YEaRbOOk 2015The Definitive Reference Guide to the

Enhanced Oil Recovery Market 2015-2025Forecasts, Company Financials. Projects & Contracts for

Chemical, Gas & Thermal Technologies

Contents 1. Report Overview

1.1 Global Enhanced Oil Recovery (EOR) Market Overview

1.2 Market Structure Overview and Market Definition

1.3 Why You Should Read this Report

1.4 How this Report Delivers

1.5 Key Questions Answered by This Analytical Report Include:

1.6 Who is This Report For?

1.7 Methodology

1.8 Frequently Asked Questions

1.9 Associated Visiongain Reports

1.10 About Visiongain

2. Introduction to the Enhanced Oil Recovery Market 2.1 How is the Enhanced Oil Recovery (EOR) Market Structured?

2.1.1 Primary Recovery

2.1.2 Secondary Recovery

2.1.3 Tertiary Recovery

2.2 Thermal EOR Processes

2.2.1 Steam Injection

2.2.1.1 Steam Flooding

2.2.1.2 Cyclic Steam Stimulation (CSS)

2.2.2 Steam-Assisted Gravity Drainage (SAGD)

2.2.3 Small-Scale Commercial EOR Technologies

2.2.3.1 In-Situ Combustion

2.2.3.2 Thermal-Assisted Gas Oil Gravity Drainage (TAGOGD)

2.2.3.3 Thermal-Assisted Gravity Drainage (TAGD)

2.2.3.4 Vertical Steam Drive (VSD)

2.2.3.5 Solar EOR

2.2.3.6 Synchronised Thermal Additional Recovery

2.3 Gas EOR Processes

2.3.1 CO2 Injection

2.3.2 Nitrogen Injection

2.3.3 Natural Gas Injection

2.4 Chemical EOR Processes

2.4.1 Polymer Flooding

2.4.2 Surfactant Flooding

Contents 2.4.3 Alkaline Flooding

2.4.4 Micellar Flooding

3. The Global Enhanced Oil Recovery Market 2015-2025 3.1 Global EOR Market Forecast 2015-2025

3.2 Drivers and Restraints in the EOR Market

3.2.1 Drivers in the EOR Market

3.2.1.1 Increasing Demand for Oil

3.2.1.2 Ageing Oil Fields

3.2.1.3 Large Heavy Oil Deposits

3.2.1.4 CO2 Reduction Strategies

3.2.1.5 Cost and Concentration of Chemicals

3.2.2 Restraints in the EOR Market

3.2.2.1 Low Oil Price Environment

3.2.2.2 High Costs

3.2.2.3 Environmental Concerns

3.2.2.4 Competition from Conventional and Unconventional Production

3.3 Oil Prices

3.3.1 Supply-Side Factors

3.3.1.1 Tight Oil

3.3.1.2 Libya

3.3.1.3 OPEC

3.3.2 Demand-Side Factors

3.3.2.1 Chinese and Indian Growth

3.4.3 Visiongain’s Oil Price Assumptions

3.4.3.1 Low Oil Price Scenario

3.4.3.2 High Oil Price Scenario

4. Enhanced Oil Recovery Submarket Forecasts 2015-2025 4.1 The In-Situ Oil Sands EOR Submarket Forecast 2015-2025

4.1.1 Current and Future In-Situ Oil Sands Production

4.1.2 The Economics of Thermal Production from the Oil Sands

4.1.3 Regulatory Climate

4.1.4 New and Alternative Transportation Solutions

4.1.5 Narrowing Price Differential Between WTI and WCS

4.1.6 Slowing Foreign Investment

Contents 4.1.7 High Water Demand

4.1.8 In-Situ Projects

4.2 The Heavy Oil EOR Submarket Forecast 2015-2025

4.2.1 Heavy Oil EOR Country Forecasts

4.2.1.1 The US Heavy Oil EOR Market Forecast 2015-2025

4.2.1.2 The Venezuelan Heavy Oil EOR Market Forecast 2015-2025

4.2.1.3 The Kuwaiti Heavy Oil EOR Market Forecast 2015-2025

4.2.1.4 The Indonesian Heavy Oil EOR Market Forecast 2015-2025

4.2.1.5 The Omani Heavy Oil EOR Market Forecast 2015-2025

4.2.1.6 The Chinese Heavy Oil EOR Market Forecast 2015-2025

4.2.1.7 The Russian Heavy Oil EOR Market Forecast 2015-2025

4.2.1.8 The Canadian Heavy Oil EOR Market Forecast 2015-2025

4.2.1.9 The Saudi Arabian Heavy Oil EOR Market Forecast 2015-2025

4.2.1.10 The Brazilian Heavy Oil EOR Market Forecast 2015-2025

4.2.1.11 The Indian Heavy Oil EOR Market Forecast 2015-2025

4.2.1.12 The Rest of the World Heavy Oil EOR Market Forecast 2015-2025

4.2.2 Heavy Oil Potential

4.2.3 Global Heavy Oil Resources

4.2.4 Current and Future Growth Areas

4.2.5 Potential Restraints on the Thermal Steam Heavy Oil Market

4.2.6 Heavy Oil Projects

4.3 The CO2 EOR Submarket Forecast 2015-2025

4.3.1 CO2 EOR Country Forecasts

4.3.1.1 The US CO2 EOR Market Forecast 2015-2025

4.3.1.2 The Chinese CO2 EOR Market Forecast 2015-2025

4.3.1.3 The Canadian CO2 EOR Market Forecast 2015-2025

4.3.1.4 The Brazilian CO2 EOR Market Forecast 2015-2025

4.3.1.5 The UAE CO2 EOR Market Forecast 2015-2025

4.3.1.6 Other Major EOR Producers

4.3.1.7 The Rest of the World CO2 EOR Market Forecast 2015-2025

4.3.2 CO2 EOR Breakeven Analysis

4.3.3 CO2 EOR Market Drivers

4.3.3.1 Vast Geological Storage Potential in Oil Fields

4.3.3.2 Extensive Industry Experience with CO2 EOR

4.3.3.3 Residual Oil Zones (ROZs)

4.3.3.4 Carbon Trading and Cost Reductions

4.3.4 CO2 EOR Market Restraints

Contents 4.3.4.1 Limited CO₂ Availability

4.3.4.2 High Cost of Carbon Capture

4.3.4.3 Longer Return on Investment Period

4.3.4.4 CO2 Leakage and Environmental Issues

4.3.5 CO2 EOR Projects

4.4 The Other Gas EOR Submarket Forecast 2015-2025

4.4.1 Other Gas EOR Country Forecasts

4.4.1.1 US Other Gas EOR Market Forecast 2015-2025

4.4.1.2 Venezuelan Other Gas EOR Market Forecast 2015-2025

4.4.1.3 Omani Other Gas EOR Market Forecast 2015-2025

4.4.1.4 Mexican Other Gas EOR Market Forecast 2015-2025

4.4.1.5 Canadian Other Gas EOR Market Forecast 2015-2025

4.4.1.6 Norwegian Other Gas EOR Market Forecast 2015-2025

4.4.1.7 UK Other Gas EOR Market Forecast 2015-2025

4.4.1.8 UAE Other Gas EOR Market Forecast 2015-2025

4.4.2 Current Areas of High Production

4.4.3 Other Gas EOR Projects

4.5 The Chemical EOR Submarket Forecast 2015-2025

4.5.1 Chemical EOR Country Forecasts

4.4.1.1 Chinese Chemical EOR Market Forecast 2015-2025

4.4.1.2 Canadian Chemical EOR Market Forecast 2015-2025

4.4.1.3 Indian Chemical EOR Market Forecast 2015-2025

4.4.1.4 Omani Chemical EOR Market Forecast 2015-2025

4.4.1.5 Indonesian Chemical EOR Market Forecast 2015-2025

4.4.1.6 Russian Chemical EOR Market Forecast 2015-2025

4.4.1.7 UK Chemical EOR Market Forecast 2015-2025

4.4.1.8 Kuwaiti Chemical EOR Market Forecast 2015-2025

4.4.1.9 US Chemical EOR Market Forecast 2015-2025

4.4.1.10 UAE Chemical EOR Market Forecast 2015-2025

4.4.1.11 Venezuelan Chemical EOR Market Forecast 2015-2025

4.4.1.12 Other Major EOR Markets

4.4.1.13 Rest of the World Chemical EOR Market Forecast 2015-2025

4.5.2 Improving Polymers and Surfactants

4.5.3 Current Areas of High Production

4.5.4 The Current Types of Chemical EOR Projects Globally

4.5.5 Future Geographical and Technological Areas of Growth

4.5.6 Potential Challenges for Chemical EOR: Costs, Timing and Regulation

Contents 4.5.7 Chemical EOR Projects

5. Leading National Enhanced Oil Recovery Market and Submarket

Forecasts 2015-2025 5.1 The Canadian EOR Market and Submarket Forecasts 2015-2025

5.1.1 The Canadian EOR Market Overview

5.1.2 Current Projects

5.1.2.1 Thermal Oil Sands Dominating the Canadian EOR Market

5.1.2.2 Thermal Heavy Oil Development Supplementing Oil Sands Growth

5.1.2.3 The Success of the Weyburn-Midale Project

5.1.2.4 Other Operational Canadian CO2 EOR Projects

5.1.2.5 An Evaluation of Canada’s Previous CO2 EOR Pilot Projects

5.1.2.6 Cenovus’ Experience with Chemical EOR at Pelican Lake

5.1.2.7 CNRL’s Experience with Chemical EOR at Pelican Lake

5.1.2.8 Other Chemical EOR Projects in Canada

5.1.2.9 A Focus on ASP Projects

5.1.3 Future Outlook

5.1.3.1 Oil Sands Ready to Return to Strong Growth When Oil Prices Rise

5.1.3.2 Thermal Heavy Oil to See Strong Growth over Next Five Years

5.1.3.3 Construction on the Alberta Carbon Trunk Line to Begin in 2015

5.1.3.4 Future Opportunities in the Canadian CO2 EOR Market

5.1.3.5 Suspended and Abandoned Alberta CCS Projects

5.1.3.6 High CO2 Costs Prohibiting Development

5.1.3.7 Is Experience Enough to Drive the Canadian Chemical EOR Market Forward?

5.1.3.8 Will Oil Prices, Costs and Technicalities Restrict the Canadian Chemical EOR

Market?

5.1.3.9 Future Prospects for Chemical EOR in Canada

5.1.4 Canadian Oil Sands Regions

5.1.4.1 Athabasca Oil Sands Market and Submarket Forecasts 2015-2025

5.1.4.2 Cold Lake Oil Sands Market Forecasts 2015-2025

5.1.4.3 Peace River Oil Sands Market Forecasts 2015-2025

5.2 The US EOR Market and Submarket Forecasts 2015-2025

5.2.1 The US EOR Market Overview


5.2.2.1 California Continues to Dominate Thermal EOR Projects

5.2.2.2 History of CO2 EOR in the US

Contents 5.2.2.3 Where are the CO2 EOR Projects in the US Located?

5.2.2.4 Where is the CO2 Sourced From?

5.2.2.5 Other Gas EOR Projects in the US

5.2.2.6 Chemical EOR Pilot Projects


5.2.3.1 Traditional Thermal Production to Continue Decreasing

5.2.3.2 The Importance of Government Support and Regulations

5.2.3.3 Offshore EOR Unlikely to come to Fruition

5.2.3.4 How is the US CO2 EOR Market Likely to Develop in the Next Ten Years?

5.2.3.5 Will the Chemical EOR Market in the US Rebound?

5.2.4 US Regional Submarkets

5.2.4.1 The Gulf Coast CO2 EOR Submarket Forecast 2015-2025

5.2.4.2 The Midcontinent CO2 EOR Submarket Forecast 2015-2025

5.2.4.3 The Midwest CO2 EOR Submarket Forecast 2015-2025

5.2.4.4 The Permian Basin CO2 EOR Submarket Forecast 2015-2025

5.2.4.5 The Rockies CO2 EOR Submarket Forecast 2015-2025

5.3 The Chinese EOR Market and Submarket Forecasts 2015-2025

5.3.1 The Chinese EOR Market Overview


5.3.2.1 China’s Dominant Position in Chemical EOR Production

5.3.2.2 Current Thermal EOR Projects in China

5.3.2.3 Current Chinese CO2 EOR Projects


5.3.3.1 Steady Increases Forecast in Chinese Thermal EOR Market

5.3.3.2 Potential Opportunities for EOR Production Offshore

5.3.3.3 Upcoming Projects in the Chinese CO2 EOR Market

5.3.3.4 China’s High Emissions and the Need for more Oil

5.3.3.5 How suitable is China’s Geology for CO2 EOR?

5.3.3.6 China’s Efforts to form International Partnerships to Help Promote CO2 EOR

5.3.3.7 The Need for More Government Support for CO2 EOR

5.3.3.8 China to Maintain its Strong Position in the Chemical EOR Market

5.4 The Venezuelan EOR Market and Submarket Forecasts 2015-2025

5.4.1 The Venezuelan EOR Market Overview


5.4.2.1 Thermal Production

5.4.2.2 Are There Any Chemical EOR Projects in Venezuela Currently?


Contents 5.4.3.1 Political Problems and the Need for Investment

5.4.3.2 PDVSA Focusing on Short-Term EOR Production Increases at Mature Fields

5.4.3.3 Long-Term Opportunities for EOR Production in the Orinoco Belt

5.4.3.4 Extra-Heavy Oil and Falling Production Set to Provide Lift for the Chemical

EOR Market in Venezuela

5.5 The Omani EOR Market and Submarket Forecasts 2015-2025

5.5.1 The Omani EOR Market Overview


5.5.2.1 PDO’s Thermal, Gas and Chemical Projects

5.5.2.2 Occidental’s SAGD Operation at the Mukhaizna Field


5.5.3.1 PDO’s Ambitious Ten-Year EOR Expansion Plans

5.5.3.2 Oman’s Chemical Pilot Experience and Goals

5.5.3.3 Potential to Expand the Mukhaizna Project and Opportunities in the

Neighbouring Kahmah Reservoir

5.5.3.4 The Prospects for Solar EOR in Oman

5.6 The Indonesian EOR Market and Submarket Forecasts 2015-2025

5.6.1 The Indonesian EOR Market Overview



5.6.3.1 Upcoming Projects in the Indonesian EOR Market

5.6.3.2 Drivers and Restraints in the Indonesian EOR Market

5.7 The Kuwaiti EOR Market and Submarket Forecasts 2015-2025

5.7.1 The Kuwaiti EOR Market Overview


5.7.2.1 Chevron’s Project in the Wafra Field


5.7.3.1 KOC to Develop the Lower Fars Heavy Oil Field

5.7.3.2 EOR Opportunities in the Burgan Field

5.7.3.3 CO2 EOR Potential

5.7.3.4 Challenges to Meeting Kuwait’s Ambitious Production Goals

5.8 The Russian EOR Market and Submarket Forecasts 2015-2025

5.8.1 The Russian EOR Market Overview



5.9 The Indian EOR Market and Submarket Forecasts 2015-2025

Contents 5.9.1 The Indian EOR Market Overview


5.9.2.1 Thermal EOR Production at the Balol and Santhal fields

5.9.2.2 Pilot Experience with Chemical EOR

5.9.3 Future Projects

5.9.3.1 Will Chemical EOR be a Panacea for India?

5.9.3.2 How Will Market Restraints Impact the Indian Chemical EOR Market?

5.9.3.3 Indian Chemical EOR Market Outlook: Future Projects and Opportunities

5.10 The Saudi Arabian EOR Market and Submarket Forecasts 2015-2025

5.10.1 The Saudi Arabian EOR Market Overview


5.10.2.1 Chevron’s Project in the Wafra Field

5.10.2.2 CO2 EOR Pilot at the Ghawar Field


5.11 The Brazilian EOR Market and Submarket Forecasts 2015-2025

5.11.1 The Brazilian EOR Market Overview


5.11.2.1 The Lula Project


5.11.3.1 Brazil’s Growing Opportunities for CO2 EOR

5.11.3.2 Thermal EOR to Stay Dominant

5.11.3.3 Opportunities for Chemical EOR

5.11.3.4 Petrobras’ Stretched Financial Position

5.12 The Mexican EOR Market and Submarket Forecasts 2015-2025

5.12.1 The Mexican EOR Market Overview



5.12.3.1 Pemex’s Upcoming EOR Projects

5.12.3.2 The Potential Impact of Mexican Constitutional Changes

5.13 The UK EOR Market and Submarket Forecast 2015-2025

5.13.1 The UK EOR Market Overview



5.13.3.1 Opportunities for Chemical EOR

5.13.3.2 Will Chemical EOR be a Solution for Production Depletion?

5.13.3.3 The Realities of Chemical EOR Offshore

5.13.3.4 Increasing Interest in North Sea CO2 EOR

Contents 5.13.3.5 Potential Projects in the UK CO2 EOR Market

5.13.3.6 Joint Research Ventures and Partnerships Attempting to Promote CO2 EOR

in the UK

5.13.3.7 Why is CO2 EOR Developing so Slowly in the UK?

5.14 The UAE EOR Market and Submarket Forecast 2015-2025

5.14.1 The UAE EOR Market Overview


5.14.2.1 What are the Factors Driving CO2 EOR Development in the UAE?

5.14.2.2 Progress of the Masdar Initiative


5.14.3.1 Upcoming Projects in the UAE CO2 EOR Submarket

5.14.3.2 Future Potential of the UAE CO2 EOR Market

5.14.3.3 Are there Opportunities for Chemical EOR in the UAE?

5.15 The Norwegian EOR Market and Submarket Forecast 2015-2025

5.15.1 The Norwegian EOR Market Overview



5.15.3.1 CO2 EOR Development Continues to Move Slowly

5.15.3.2 Opportunities in Chemical and Microbial EOR

5.15.3.3 Will Chemical EOR be a Solution for Production Depletion?

5.15.3.4 The Realities of Chemical EOR Offshore

5.15.3.5 Is Chemical EOR Likely to be the Chosen Technology Going Forward?

5.16 The Rest of the World EOR Market and Submarket Forecasts 2015-2025

5.16.1 The Angolan EOR Market – Chemical EOR at the Dalia Field

5.16.2 The Argentine EOR Market – Opportunities for Chemical EOR

5.16.3 The Dutch EOR Market – Limited CO2 EOR Potential

5.16.4 The Ecuadorian EOR Market – Companies Bid for EOR Projects

5.16.5 The Egyptian EOR Market – Thermal, CO2 and Chemical Opportunities, though Major

Challenges Remain

5.16.6 The German EOR Market – Profitable Thermal Projects and Chemical EOR Potential

5.16.7 The Kazakh EOR Market – Limited Opportunities

5.16.8 The Malaysian EOR Market – Significant EOR Potential

5.16.9 The Qatari EOR Market – Early Stages of EOR Development

5.16.10 The Syrian EOR Market – Political Turmoil Curtailing Opportunities

5.16.11 The Trinidadian EOR Market – Long History of Thermal EOR

5.16.12 The Turkish EOR Market – Continued Production at Bati Raman

Contents 6. PEST Analysis of the Enhanced Oil Recovery Market

7. Expert Opinion 7.1 CNRL

7.1.1 CNRL’s Role in the Chemical EOR Market

7.1.2 Drivers of Chemical EOR

7.1.3 How is the Oil Price Affecting the Chemical EOR Market?

7.1.4 How Long does a Chemical EOR Project Take?

7.1.5 What Governs the Deployment of EOR?

7.1.6 CNRL Chemical EOR Projects

7.2 Enhance Energy

7.2.1 Enhance Energy’s Involvement in the CO2 EOR Market

7.2.2 The Rationale Behind the Alberta Trunk Line Project

7.2.3 Progress of the Alberta Carbon Trunk Line Project

7.2.4 Drivers for CO2 EOR Development in Canada

7.2.5 The Impact of Government Funding

7.3 GlassPoint

7.3.1 GlassPoint’s History and Current Projects

7.3.2 Potential Regional Solar EOR Markets

7.3.3 Higher Upfront Costs, but Lower Operating Costs

7.3.4 Similarities and Differences Between Solar and Gas

7.3.5 GlassPoint’s Aims for the Future

7.4 Huntsman

7.4.1 Huntsman’s Role in the Chemical EOR Market

7.4.2 How Falling Oil Production is Driving the Chemical EOR Market

7.4.3 Prospects for Chemical EOR under Low Oil Prices

7.4.4 The Cost of Surfactant Projects

7.4.5 The Chemical EOR Process


7.5 Prosper Petroleum

7.5.1 Prosper Petroleum’s Involvement in the Oil Sands Market

7.5.2 In-Situ Technologies

7.5.3 Oil Sands Economics

7.5.4 Future Oil Sands Market Developments

7.6 Shell Chemicals

7.6.1 Shell Chemical’s Role in the Chemical EOR Market

Contents 7.6.2 Drivers of Chemical EOR


7.6.4 The Structure of the Chemical EOR Market


7.6.6 Transporting the Chemicals to the Field

8. Leading Companies in the Enhanced Oil Recovery Market 8.1 Leading Ten Companies in the Thermal Oil Sands EOR Market – Market Shares and Profiles

8.1.1 Canadian Natural Resources (CNRL)

8.1.2 Cenovus

8.1.3 China National Offshore Oil Corporation (CNOOC)

8.1.4 Connacher Oil and Gas

8.1.5 ConocoPhillips

8.1.6 Devon Energy

8.1.7 Imperial Oil

8.1.8 MEG Energy

8.1.9 Statoil

8.1.10 Suncor

8.2 Leading Companies in the Thermal Heavy Oil EOR Submarket

8.2.1 Aera Energy

8.2.2 Chevron

8.2.3 CNPC

8.2.4 Linn Energy

8.2.5 Lukoil

8.2.6 Occidental

8.2.7 PDO

8.2.8 PDVSA

8.2.9 Petrobras

8.2.10 Sinopec

8.3 Leading Companies in the CO2 EOR Market – Market Shares and Profiles

8.3.1 Anadarko Petroleum Corporation

8.3.2 Breitburn Energy

8.3.3 Cenovus

8.3.4 Chevron

8.3.5 Denbury Resources

8.3.6 Hess Corporation

Contents 8.3.7 Kinder Morgan

8.3.8 Occidental

8.3.9 Turkish Petroleum Corporation (TPAO)

8.3.10 Whiting Petroleum

8.4 Leading Companies in the Other Gas EOR Market – Market Shares and Profiles

8.4.1 BP

8.4.2 ConocoPhillips

8.4.3 PDO

8.4.4 PDVSA

8.4.5 Pemex

8.5 Leading Companies in the Chemical EOR Market – Market Shares and Profiles

8.5.1 Canadian Natural Resources (CNRL)

8.5.2 Cenovus

8.5.3 CNPC

8.5.4 PDO

8.5.5 Sinopec

8.6 Other Leading Companies in the EOR Production Market

9. Conclusions and Recommendations 9.1 EOR Market Outlook

9.2 Key Findings in the EOR Market

9.3 Recommendations for the EOR Market

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4.2.1.10 The Brazilian Heavy Oil EOR Market Forecast 2015-2025

Table 4.17 and Figures 4.42 through 4.44 show visiongain’s forecast for the Brazilian heavy oil

EOR market over the next ten years.

0

20

40

60

80

100

120

140

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Spen

ding

($m

)

CAPEX ($m) OPEX ($m)

Table 4.17 Brazilian Heavy Oil EOR Market Forecast 2015-2025 (Mbpd Production, CAPEX and OPEX $m, AGR %, CAGR %, Cumulative)

Source: Visiongain 2015

Figure 4.42 Brazilian Heavy Oil EOR Market CAPEX and OPEX Forecasts 2015-2025 ($m)


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to the project or the inadequate quantities available from the gas plant. Since the last of these pilot

projects was completed in 2010 interest in CO2 EOR has dropped off in Canada as attention has

turned to other more lucrative technologies, such as shale oil development. Table 5.8 provides an

overview of the eight pilot projects, including the operator, operational dates and total oil production

through CO2 EOR.

Project Name Operator Operational Dates Total Oil Production Cardium Penn West

Exploration 2005 - 2009 39,941

Chigwell Viking Glencoe Resources

2007 – N/A N/A

Enchant Arcs CNRL / Anadarko

September 2004 – August 2008 23,800

Judy Creek Pengrowth Energy

2007 - 2010 94,306

Redwater ARC Resources July 2008 – November 2010 114,692 South Swan Hills Penn West

Exploration May 2008 – May 2010 70,390

Swan Hills Devon Energy October 2004 - May 2006 32,300 Zama Apache December 2004 – December

2010 199,418

5.1.2.6 Cenovus’ Experience with Chemical EOR at Pelican Lake

Cenovus first used chemical EOR at their Pelican Lake field in 2004. Alongside horizontal wells,

polymer injection was used to increase production from the field. Total production from Pelican

Lake averaged 24,924 bbl/d in 2014, which highlighted an increase of 3% from the previous year.

The increase was due to additional infill wells and polymer expansion which were partly offset by a

planned turnaround. Close to 12,000 bbl/d can be credited to polymer flooding and infill drilling. In

2013 it was further estimated that 2.1 billion barrels of Petroleum Initially-In-Place (PIIP) remain as

mobile reserves in the area, and a further 1.3bn barrels as immobile.

Capital investment on conventional resources was C$812m in 2014 compared to C$1,191m in

2013. The decrease was due to Cenovus’ decision to align spending with Pelican Lake’s modest

production volumes. The 2014 conventional CAPEX was focused on the expansion of the polymer

project, in addition to further drilling, completion and recompletions programs and spending on

Source: G BACH Enterprises Incorporated, Visiongain 2015

Table 5.8 Canadian CO2 EOR Pilots (Project Name, Operator, Operational Dates, Total Oil Production [bbls])

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Table 5.59 and Figures 5.84 and 5.85 show visiongain’s forecasts for the Kuwaiti EOR submarkets

over the next ten years.

Table 5.59 Kuwaiti EOR Submarket Forecasts (Thermal, Gas and Chemical) 2015-2025 (Mbpd, $m, AGR %, CAGR %)


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7. Expert Opinion

7.1 CNRL

Canadian Natural Resources Limited (CNRL) is one of the world’s largest independent crude oil

and natural gas producers. The company has a diverse asset portfolio, which includes natural gas,

light oil, heavy oil, in situ oil sands production, oil sands mining and associated upgrading facilities.

Visiongain spoke to Yesid Puerto, Chief Reservoir Engineer in March 2015. Visiongain would like

to thank Mr. Puerto for his contribution to the report.

7.1.1 CNRL’s Role in the Chemical EOR Market

Visiongain: Can you tell me about CNRL and your role within the chemical EOR market?

Yesid Puerto: CNRL plays a leading role within the chemical EOR market. We developed and

currently operate the largest and most successful high viscosity heavy oil polymer flood in the world

(Pelican Lake). We are also conducting polymer pilots in other areas of our operation as well as

ASP and Nanosphere pilots. Laboratory experiments are periodically conducted by CNRL, through

different labs, to assess chemical EOR potential in different areas of our operation.

7.1.2 Drivers of Chemical EOR

Visiongain: From a wider perspective, what would you say are the main factors driving the

chemical EOR market?

Yesid Puerto: The main factors, in my opinion, are related to chemical cost and cost of facilities

associated to developing these processes in the field. The topic of injectivity is also a critical factor

directly affecting the economics.


Visiongain: Does CNRL view chemical EOR projects as long term prospects worth investing in

during a period of low oil prices, or will we see the cancellation and delay of projects over the next

12-24 months as companies reign in their budgets?

Yesid Puerto: Industrywide, we are already seeing the cancellation and delay of projects as a

result of low commodity prices. I believe that scoping work, even up to laboratory level, might be

doable with a look at building readiness for better times. This is obviously a function of how severe

and lengthy the price valley is going to be.

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Through fully owned Canadian subsidiary Nexen (acquired in February 2013), the company

operates the Long Lake SAGD oil sands project, located around 40km southeast of Fort McMurray,

Alberta. Production at Long Lake has been continuously expanded since it came into operation in

2008. The project has a capacity of 72,000 bpd, though 2014 production was only 43,000 bpd.

Long Lake is the only in-situ oil sands project which has an integrated upgrader, which are typically

associated with oil sands surface mines.

A Long Lake expansion, called Kinosis, recently came online, adding 40,000 bpd of capacity.

Construction of a second 40,000 bpd phase was due to commence next year, but has now been

delayed. The company has announced several more phases that will not go ahead before the end

of the forecast.

Table 8.7 details CNOOC’s operational in-situ projects, providing information on the project name,

technology, start date, 2014 production and capacity.

Company Project Technology Start Date Production (bpd)

Capacity (bpd)

CNOOC Kinosis Phase 1A SAGD 2015 0 40,000 CNOOC Long Lake SAGD 2008 43,000 72,000

8.1.4 Connacher Oil and Gas

Headquarters Calgary, Alberta, Canada Employees 200 Stock Exchange Toronto Stock Exchange – CLL 2014 In-Situ Oil Sands Production (bpd) 14,100 Market Share (%) 1.4% Market Rank 9

Connacher Oil and Gas is a Calgary-based exploration, production and development company with

one operating project in the Canadian oil sands. The Great Divide project started in 2007, and

using SAGD methods produced 14,100 bpd of bitumen in 2014 out of a 20,000 bpd capacity.


Table 8.8 Overview of Connacher Oil and Gas in the In-Situ Oil Sands Market: Headquarters, Employees, Stock Exchange, 2014 Production (bpd), Market Share (%), Market Rank

Table 8.7 Operational CNOOC In-Situ Projects (Company Name, Project Name, Technology, Start Date, BPD Production 2014, BPD Capacity)


Business

EOR Yearbook 2015: The Definitive Reference Guide to the Enhanced Oil Recovery Market 2015-2025