6239471 the Coming Boom in Enhanced Oil Recovery

8/4/2019 6239471 the Coming Boom in Enhanced Oil Recovery

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9/26/08 BIG PICTURE SPECULATOR 1

BIG PICTURE

S P E C U L A T O R

The Coming Boom in

Enhanced Oil Recovery

Jim Letourneau, P. Geol.

Big Picture Guy

Las Vegas Hard Assets Investment ConferenceSeptember 10, 2008


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Experience is something you

don't get until just after you

need it.

Steven Wright


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Jim Letourneau

B.Sc. In Geology 1985 from UofA

Specializing in petroleum geology and

geochemistry

2 CSPG Tracks Awards CSPG Link Award

NEB Hearing expert witness

Interviewed on CBC, CNBC Asia Energy TV


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Crude Oil Prices 1861-2006

Crude Oil Importers - 2005


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The coming boom

September 3 News Release - Nalco (NYSE:NCL)

Commercializes BrightWater Enhanced Oil

Recovery Technology

September 4 News Release - Stepan

(NYSE:SCL) and Nalco (NYSE:NCL) Create First

Integrated Enhanced Oil Recovery Platform.


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Results

Reservoir Sweep Efficiency Technology after

early applications demonstrated crude oil

production increases of25 to 80 percent in test

wells.

Powerwave led to a 83 percent increase in oil

production from an Alberta oil field the field's

production had been declining at the rate of 2.3

per cent per month.


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Active EOR Projects


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Concern

Special Interest Groups are

Mobilizing


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Special Interest Groups

Politicians are looking for votes

Airlines target oil speculators

Pickens talks his book


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Schweitzer Speech

Petro-dictators!


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Schweitzer

Brian Schweitzer - Governor of Montana

Right now, the United States imports about 70 percent of its oil

from overseas.

At the same time, billions of dollars that we spend on all that

foreign oil seems to end up in the bank accounts of those

around the world who are openly hostile to American values and

our way of life.

This costly reliance on fossil fuels threatens America and the

world in other ways, too. CO2 emissions are increasing global

temperatures, sea levels are rising and storms are getting

worse.


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Palin Speech


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Palin

We cannot leave ourselves at the mercy of

foreign suppliers.

In a McCain-Palin administration, we're going tolay more pipelines, and build more nuclear

plants, and create jobs with clean coal, and move

forward on solar, wind, geothermal, and other

alternative sources.


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SOS - Airline Funded


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Pickens Plan


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Pickens Plan

Transition to more wind power from 1-20% of

electricity needs

Use natural gas for transportation

Easy oil has been produced Greenhouse gas emissions from natural gas are

23% lower than diesel and 30% lower than

gasoline.


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Hubberts Peak?


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Hubbert Trivia

1940 - published The Theory of Ground-WaterMotion

Founded the Technocracy Incorporated in 1933with Howard Scott - a movement which grew to

250,000 members Quote from a former student - Fred Meissner

During my contact with Hubbert as a student, I

found him to be arrogant, egotistical, dogmaticand intolerant of work he perceived to beincorrect.


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Hubbert Trivia

But above all, I judged him to be a great scientist

dedicated to solving problems based on simple

physical and mathematical principles.

He told me that he had a limited lifetime in which

to train and pass on what he knew, and that he

couldn't waste his time with people that couldn't

comprehend.

He was a complex and fascinating person.


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Hubbert Trivia

Correct statement of Darcy's Law.

Mathematical demonstration that rock in theEarth's crust is plastic, and that the Earth's crustdeforms over time.

Prediction of migration paths of hydrocarbons.

Demonstration that the Earth's endowment ofcrude oil is finite, that the rate of oil productionreaches a maximum (i.e., peaks) when

approximately half of the original resourceremains, and thereafter goes into irreversibledecline.


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There is HOPE


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Salt Creek, Texas


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Weyburn, Saskatchewan


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The EOR Wedge


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66% Left Behind

The ability to rescue additional production from

mature oilfields, many times without the need for

further drilling, can have a positive impact on

domestic oil production in the United States

where the August 2006 issue of World OilMagazine reports 374 Bbbl of oil, or

approximately 66% of discovered oil remains

stranded in reservoirs.


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US DOE Statistics


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Definitions


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Primary Recovery

The first stage of hydrocarbon production, in

which natural reservoir energy, such as gasdrive,

waterdrive or gravity drainage, displaces

hydrocarbons from the reservoir, into the

wellbore and up to surface.

10% recovery of Original Oil in Place


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Secondary Recovery

The second stage of hydrocarbon production

during which an external fluid such as water or

gas is injected into the reservoir through injection

wells located in rock that has fluid communication

with production wells. The purpose of secondaryrecovery is to maintain reservoir pressure and to

displace hydrocarbons toward the wellbore.

15-40% of OOIP


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Primary + 15 to 40% Secondary Recovery

Globally the average oil recovery

factor (RF) is around 32% according

to the SPE


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CO2 and EOR


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Enhanced Oil Recovery - EOR

The third stage of hydrocarbon production

during which sophisticated techniques

that alter the original properties of the oil

are used. Enhanced oil recovery can beginafter a secondary recovery process or at

any time during the productive life of an oil

reservoir. Its purpose is not only to restore

formation pressure, but also to improve oildisplacement or fluid flow in the reservoir.


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Main EOR Types

1)Chemical flooding (alkaline flooding ormicellar-polymer flooding).

2) Miscible displacement (carbon dioxide

[CO2] injection or hydrocarbon injection).3) Thermal recovery (steamflood or in- situ

combustion)

4) Also IOR (improved injection), electricalmethods etc.


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CO2 Flood History

First EOR project was in West Texas in 1972,and most of the EOR in the world today isconcentrated there.

Only about 1/4 of the CO2 used in EOR is

derived from industrial sources (Hill, 2003, p.25). Most extracted from natural CO2formations.

The value of CO2 for EOR has been sufficent towarrant the construction of several multi-

hundred km CO2 pipelines, including one of800 km from the McElmo Dome on SWColorado to the Permian Basin oil fields inWest Texas.


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Denbury Resources (NYSE:DNR)


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CO2 Flood


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Petrobank (TSE:PBG)


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THAI Process


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Leveraging Technology

Petrobank will take a 50-per-cent

operating interest in Duvernay's Dawson

property -- estimated to hold100 million

barrels of crude -- where it will use itsToe-to-Heel Air Injection system (THAI) to

boost recovery rates and output.


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The Boom

Look for companies with new

processes.

Look for companies that embrace new

technology

CO2 sequestration angle

Turning stranded or heavy oil into

RESERVES triggers a re-pricing of theassets.


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A No Lose Proposition

Provide your email address or give me

your business card.

I will send you my 5 part Enhanced Oil

Recovery Investing Course.

Table in Speaker Area or go to


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www.jimletourneau.com

Documents

6239471 the Coming Boom in Enhanced Oil Recovery