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Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Joe Shine & Mark Holtz Praxair, Inc. 2008 Wyoming EOR/IOR Conference September 15, 2008 Joe Shine & Mark Holtz Praxair, Inc. 2008 Wyoming EOR/IOR Conference September 15, 2008

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Page 1: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

Reserve Growth & Higher Recovery Using Nitrogen Gas Injection

Reserve Growth & Higher Recovery Using Nitrogen Gas Injection

Joe Shine & Mark Holtz Praxair, Inc. 2008 Wyoming EOR/IOR Conference September 15, 2008

Joe Shine & Mark Holtz Praxair, Inc. 2008 Wyoming EOR/IOR Conference September 15, 2008

Page 2: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialBenefits from Nitrogen Gas Injection

Proven hydrocarbon recovery method

Cost effective

A nitrogen plant can be located anywhere

Nitrogen:Can replace hydrocarbon recycle gasIs InertIs non-corrosiveIs dryIs oxygen free

Page 3: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialNitrogen – A Proven Recovery Method in Wyoming Overthrust

Page 4: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialNitrogen - A Proven Recovery Method

Gravity Drainage Miscible Displacement

Page 5: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialNitrogen - A Proven Recovery Method

Gas Cap Displacement Pressure Maintenance –Gas Condensate

Page 6: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialPraxair At A Glance

A Fortune 500 company with 2007 sales of $ 9.4 billion

One of the largest industrial gases companies worldwide and the largest in North and South America

Operations in more than 40 countries

27,000 employees

One million customers worldwide

Page 7: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialSales by Markets Served

Energy 11% Manufacturing 23%

Metals 16%

Food and Beverage 7%

Other 11%

Electronics 8%

Aerospace 3%

Chemicals 10%

Healthcare 11%

Page 8: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business Confidential

Nitrogen, oxygen, hydrogen15 + year supply contractsDesigned & operated for reliability

On-Site/Pipeline Supply

Liquid Supply

Nitrogen, oxygen, argon, CO2, helium, H2Specialized cryogenic distribution equipment

Packaged Gases

Welding, medical, specialty gasesCylinders for the retail market

Praxair At A Glance

Page 9: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialCore Technologies

Cryogenic air separation

Non-cryogenic air separation

Hydrogen production

Carbon dioxide capture and purification

Atmosphere control

Gas dissolution

Gas-liquid separations

Oxidation technology (combustion)

Refrigeration

Page 10: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business Confidential

NorthAmerica

SouthAmerica

EuropeAsia

Praxair Industrial Gases Reach World-Wide

Page 11: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business Confidential

Enhanced Oil RecoveryOver 30 years experience with Gas Displacement Recovery (GDR)

– Nitrogen– Carbon Dioxide– Methane

More than 25 projects

Well Stimulation Services

CO2 EOR Services

CO2 Capture & Purification

Exploration & Production

Hawkins 65 MMcfd / 2000 psigBinger 15 MMcfd / 5000 psig / NRU

Elk Hills 30 MMcfd / 1000 psig

Page 12: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialPraxair’s Portfolio of GDR Projects

Miscible DisplacementBlock 31, TX, USAPainter Field, WY, USA East Binger Unit, OK, USAFlomaton, AL, USAVealmoor Field, TX USAHeadlee North, TX USADouglas, WY, USASand Dunes Muddy WY, USA

Gravity DrainageHawkins Field, TX, USA

Pressure MaintenanceSamaria, MexicoAnschutz Ranch East, WY, USAElk Hills CA, USAYates Field, TX, USAPowell Field, WY, USATatums, OK, USAColorado, USA(2) Kansas, USA

ECBMTrinidad, CO, USAFarmington, NM, USA Anschutz 50 MMcfd / 6000 psig

Samaria 190 MMcfd / 3000 psig

Page 13: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialMany Types of Projects

Full field floodsCryogenic nitrogen plant

Single reservoir compartment Small cryogenic nitrogen plant Non-cryogenic membrane plant

Pilot projectsSmall cryogenic plantMembrane plantLiquid transport vessels

Offshore gas lift applicationsMembrane plant for platformLiquid transport vessels for platform/ship

Huff ‘n’ Puff applicationsPumping equipmentLiquid transport vessels

Elk Hills 3 MMcfd / 1000 psigPainter 50 MMcfd / 5000 psig

Offshore unit 2.5 MMcfd

Page 14: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialPraxair EOR Services

Identification of potential fields for GDR

Assist & facilitate with project development effortsReservoir engineering servicesSelection of gas injectantRecovery process simulationOptimization of gas supply system

Partner on GDR pilot projects

Provide gas injectant requirements for full scale operations

Page 15: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialRecoveries – Sample N2 GDR ProjectsField EOR Application Recovery (fraction OHIP)Hawkins Gravity drainage 0.20

Chunchula Pressure maintenance 0.31

Block 31 Miscible displacement 0.6 (total) no secondary

Szeged Moravaros Pressure maintenance 0.12

Jay/(LEC) Miscible displacement 0.13

Lake Barre Pressure maintenance 0.19

Fordoche Wilcox 8 & 12 Miscible displacement 0.195

Fordoche Wilcox 5 Pressure maintenance 0.19 – 0.46

Field B* Immiscible displacement 0.36

Anschutz Ranch East Pressure maintenance 0.45-.53

* From Clancy

*Carlson -ExxonMobil

Page 16: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialGDR’s Place in the Market

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

1985 1990 1995 2000 2005 2010

Years

Oil

prod

uctio

n (S

TB/D

)

Thermal (STB/D)Chemical (STB/D)Gas (STB/D)

# 1 EOR method to add light oil reserves.

“in the US chemical and thermal EOR projects have been in constant decline since the mid 1980s”*

Historical US EOR Production

*(Dr. Leonid Surguchev et al. World Petroleum Congress 2006)

Page 17: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialReserve Growth – From Two Sources

Increased sweep efficiency of moveable oil (contacting more oil)

Infill drillingFracingHorizontal wellsWaterflood realignmentGas displacement recovery (GDR)

Increased displacement efficiency from residual oil (displacing more oil out of each pore)

Steam floodingChemical floodingGas displacement recovery (GDR)

Page 18: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialN2 Reserve Growth Applications

Pressure maintenanceCondensate and retrograde condensate reservoirs

Miscible displacement

Gravity drainage

Immiscible displacementOilGas cap gas

Driving agent for slug/buffer

Page 19: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialGas Condensate Pressure Maintenance

Screening criteria:1) Dew point pressure near the original reservoir

pressure, under saturated by 150 to 300 psi, 2) High condensate yield typically >

175 bbl/MMSCF produced, 3) High liquid dropout rate with liquid

condensation from 20 to 40 % of the hydrocarbon pore space.

Pressure depletion effects cause;Reduction in gas permeability and well productivityAquifer encroachmentLower ultimate hydrocarbon recovery by 10 to 40 %

Page 20: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialRelative Permeability Effects in Gas Condensate Reservoirs

Near-wellbore Where saturation hysteresis is severe

Main reservoir away from wells Liquid mobility is near zeroGas flows at reduced permeability

Reservoir edge Water encroachment traps gas and condensateHydrocarbons trapped at 10- 40 % saturations

Page 21: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialPermeability Reduction from Condensate Dropout

From Al-Honi and Abdulrazag, 2004

Dew point pressure

Page 22: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialLaboratory and Simulation Studies

Methane used as buffer gas

Slightly greater revaporization occurred with buffer gas.

Test 12 run below dew point

Renner, et al., 1989

Test101112

TestPressure

(psia)

5,5655,565

5,565 to 4,500

Drive GasNitrogen

Buffer gasNitrogen

IrreducibleWater

Saturation(% PV)

28.127.828.0

LiquidRecovery at

1.5 HCPV Injected(% STLOIP)

87.891.964.0

99.798.699.0

MaterialBalance(vol%)

Page 23: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialAnschutz Ranch E. Gas Condensate Pressure Maintenance Example

From Kleinsteiber et al., 1983

1) Dew point pressure is near the original reservoir pressure, under saturated by 150 to 300 psi,

2) High condensate yield of 175 bbl/MMSCF produced, 3) High liquid dropout rate with liquid condensation

from 20 to 40 % of the hydrocarbon pore space.

Nugget ss, WY

10 % porosity

3 md perm

5,600 psi injection pressure

N2 & CH4

Pi = 5,310 psi

Pdew= 5,080 psi

Page 24: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialAnschutz Ranch E. Gas Condensate Pressure Maintenance Example

Injection scheme1) Inject 0.1 HCPV of 35% N2

and 65% wet gas

2) Chases with pure N2

80-acre inverted 9 spot pattern

Amoco 1982, 50 MMscf/day

6,200 psi injection pressure

Wendschlag et al., 1983 From Kleinsteiber et al., 1983

9 COMP17 COMP

Cum N2 Injected, HCPV

Fig. 3-Recovery comparison from 1-D nitrogen displacement simulations

0.0 0.5 1.0 1.5 2.0

Cum

. Oil

Rec

over

y, %

OIP

0

10

20

30

40

50

60

70

80

90

100

Page 25: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialN2 Miscibility Displacement

There are three types of miscibility including;First-contact miscibility

Multi-contact miscibility

Vaporizing mass-transfer miscibility

Results in high displacement efficiency at the pore level

ProducerInjector

Prax

air

Page 26: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialMiscible N2 Flood East Binger, Oklahoma

K = 0.2 md

Phi = 0.075

Swi=0.25

60 ft net pay

Primary recovery 10.7 % of OOIP

Tr= 190 F

Pi = 5,800 psi

MMP =4,200 psi Depth 10,000 ft

42 API gravity

1.798 FVF

1,320 SCF/STB GOR

Miscibility lab results

Page 27: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialEast Binger Miscible N2 FloodInjection began 23 wells drilled

Plugging from combination of compressor lube oil, CO, CO2, dust.

Primary recovery 11%*

GDR reserve growth 16 % to 27% ultimate recovery *

*Cornelius, 1983

Page 28: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialMiscible WAG Jay Field, Florida

N2 miscible WAG 3:1 ratio

Line drive pattern

Pi = 7,850 psi, Tr = 285 F

51 API gravity oil

Phi= 0.14, K= 20 md

Reserve growth of 10 -13% OOIP (80MMSTB)

Lawrence et al., 2003

Figure 2. Jay Field wells and patterns.

Page 29: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialGravity Drainage

The most common Gravity drainage processes are:Gas assisted gravity drainage ( no water present)Double displacement process ( water present)

N2 injectorProducer

Double Displacement Process (DDP). The process of gas displacement of a water invaded oil column has been termed.

The double displacement process consists of injecting gas up-dip and producing oil down-dip

Page 30: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialGravity Drainage Double Displacement Process (DDP)

Up dip gas injection into a dipping reservoir is one of the most efficient recovery methods.

Recovery efficiencies of 85 % to 95 %

Increases sweep efficiency

Increases displacement efficiencyOil film flow is an important recovery mechanism– Film flow connects the isolated blobs of residual oil in the

presence of gasStrong water wetPositive spreading coefficient

Modified from Ren et al., 2000)

Page 31: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialGravity Drainage – General Design

Obtain piston like displacement (no gas fingering) Horizontal gas-oil contactHave gravity dominate the gas flow

Optimize the time between gas injection and oil production.As fast as possible without gas fingering

The greater the dip angle the higher the injection & production rates w/o gas fingering

The greater the dip the more effective the gravity drainage

Page 32: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialGravity Drainage – General Design

Critical velocity analytical model

Simulation model dependent on 3 Phase relative permeability

Effected by film flowEffected by saturation historyTypically from 2 phase correlationsDepend on the direction of flow (i.e., be directionally anisotropic)

Vc is critical velocity rate (ft/day)Δρ

is density differencek is permeability (darcies)θ

is dip angleφ

is porosity (fraction)Δμ

is viscosity difference

μφθρ

ΔΔ

=sin741.2 kVc

Where

(Hill 1952)

Page 33: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialHawkins Field Double Displacement Process

Lawrence et al., 2003

Double Displacement Process Schematic

Page 34: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialN2 as Driving Agent for slug/buffer (chase gas)

Page 35: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialSt Elaine Pilot Gravity stable N2 after CO2

84.4 metric tons/D CO2 injected or 1/3 Pore volume

9 month pilot

N2 slug after CO2

From Palmer et al., 1984,

31CO2 injection rate; 136.1 metric tons/day (2.62 MMSCF/day

Critical velocity: 2.2 ft/d

CO2 front velocity designed at 1.6 ft/d or 70% of critical

0 300 600

N

CO2 Injection WellProducer

Fault

Unco

nfor

mity

8,000

7,800

7,600

7,400

GW

C 7,514

Structure Map 8,000 ft sand

Page 36: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialTiffany Unit N2 ECBM Pilot

Reeves and Oudinot, 2005

Farmington

Durango

Bloomfield

Aztec

Page 37: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialTiffany Unit N2 Production Response

Reeves and Oudinot, 2005

Page 38: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialTiffany Unit N2 Production Response

Reeves and Oudinot, 2005

Table 2: Summary of Model Forecast Results

Page 39: Reserve Growth & Higher Recovery Using Nitrogen Gas … .pdf · Reserve Growth & Higher Recovery Using Nitrogen Gas Injection Reserve Growth & Higher Recovery Using Nitrogen Gas

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Business ConfidentialConclusions

Future reserve additions in large mature fields will primarily come from GDR.

Reserve additions will occur through:Pressure maintenanceMiscible displacementImmiscible displacementDriving agent for slug/bufferGravity drainage

GDR typically increases both sweep and displacement efficiency in oil and gas reservoirs.

Reserve growth targets can range from 10 to 45 % of OOIP/OGIP