APG TF

CO2 Utilisation –Enhanced Oil Recovery

Philip SharmanInternational Technology Promoter -North America, Sustainable Energy &

Environmental Technologies

APG TF

Background to the Technology

“Primary Production/Depletion” Processes (eg liquid expansion, solution gas drive) →typically ~20% OOIP recovered

“Enhanced Oil Recovery” Processes- “Secondary Production” (Water Flooding)

up to ~60% OOIP recovered- “Tertiary Production” (ie Gas Injection using

CO2, N2, hydrocarbon gases)up to ~70% OOIP recovered

APG TF

Water-Alternating-Gas (WAG)

MiscibleZoneMiscibleZoneCO2CO2WaterWater Oil

BankOilBank

AdditionalOilRecovery

AdditionalOilRecovery

APG TF

CO2-EOR in North America

Leading EOR process in USA (~50 operations)Operating experience in W Texas since 1972 and >1 billion bbl produced by CO2-EOROnly 2 operations in Canada but of increasing importanceImportance of exceeding Minimum Miscibility Pressure (depth usually >750m)

APG TF

Mission Site Visits and Meetings

Site Visits to:Kinder Morgan’s SACROC OilfieldEnCana Resources’ Weyburn Oilfield

Meetings with:NATCO GroupBP CO2 Capture ProjectUS DOEITC and PTRC (University of Regina)CERINatural Resources Canada and CETC-Ottawa

APG TF

SACROC, West Texas

Terrell PlantGrey Ranch Plant

Mitchell PlantPuckett Plant

WaddellWaddell

CRC

Pipe

line

Central B

asinPipeline

Mcelmo Dome

Mcelmo Dome

Sheep Mtn

Sheep Mtn Bra

vo D

ome

Bravo

Dom

e

McCameyMcCamey

Denver CityDenver City

0 20 40 60

Miles

TexasTexasNew MexicoNew Mexico

Val VerdeVal Verde

SandhillsSandhills

ElmarElmarKeystoneKeystone

N. DollarhideN. Dollarhide S. CowdanS. Cowdan

WelchWelch

SlaughterSlaughter

Dora RobertsDora Roberts

Mc ElroyMc Elroy

SACROCSACROC

WelchWelch

APG TF

SACROC Development History

APG TF

SACROC Field Operations 1

One of the 210 Producer Wells

One of the 200 CO2 Injection Wells (injection pressure 138 bar)

APG TF

SACROC Field Operations 2

Water Treatment Plant

One of the 8 Separator Tank Batteries(3 phase separation)

APG TF

SACROC Gas Processing

APG TF

Membrane Gas Separation

CO2

CH4

NATCO’s “Cynara” (2nd Generation) Membrane Plant at SACROC

APG TF

Injection/Production Trends

APG TF

SACROC Key Statistics

Current CO2 injection rate is 5.1 million sm3/day (~9,450 tCO2/day)Cost of CO2 is ~$20/tCurrent incremental oil production (ie CO2-EOR) is 6,000+ BOPDCost of production of EOR oil is ~$15-16/bblTarget (in 5 years time) 50,000 BOPDField life extended to 2020+

Incremental recovery is ~13-15% OOIP, or ~200 million bblsOperation is economic within fiscal framework

APG TF

Weyburn, Saskatchewan

APG TF

Weyburn Development History

APG TF

Weyburn Field Operations 1

A CO2 Injection Satellite

One of the 105 Producer Wells

The CO2 Pipeline at the Weyburn end (152 bar)

APG TF

Weyburn Field Operations 2

The Manifold in an Oil Satellite

One of the 5 Oil Satellites/Group Separators (2 phase separation)

APG TF

Weyburn Well Pattern

APG TF

Weyburn Gas Processing

APG TF

Weyburn Key Statistics

Current CO2 injection rate is 2.7 million sm3/day (~5,000 tCO2/day)Cost of CO2 is ~$19/tCurrent incremental oil production (ie CO2-EOR) is 3,150 BOPDCost of production of EOR oil is ~CAN$6/bbl (Lifting Cost only)Target (in 10 years time) 22,000 BOPDField life extended to 2025+

Incremental recovery is ~9% OOIP, or ~130 million bblsOperation is economic within fiscal framework

APG TF

Lessons for the UK 1

CO2-EOR is an established technology with wide applicabilityCO2-EOR makes a significant contribution to production in the USACO2-EOR enables significant recovery of incremental oil and field life extensionStrong parallels to North Sea – security of supply important but needs incentivesLong term commercial contracts exist for CO2supplyCO2-EOR is stimulating a market for CO2No significant technical barriers

APG TF

Lessons for the UK 2

WAG techniques largely optimisedImportant to have good understanding of geology and miscibility conditionsCO2-EOR requires certain pressure and certain SG of oil to be effectiveCO2 relatively easy to handle in dense phase (supercritical fluid)Separating CO2 and hydrocarbon gases is relatively simple where economics permitStrong industry/government/academia collaborations are very beneficial in international demonstrations