STEAMFLOODING THE FUTURE

November 2010
STEAMFLOODING THE FUTURE
by
Randall J. Davis



STEAMFLOODING THE FUTURE
GLOBAL OIL DEMAND
Oil and gas market ripe for breakthrough
enhanced oil recovery solution:
World oil consumption rate at 85 million
barrels per day
1/3 production increase over next 15 years
to meet projected demands
Market stability requires $85B annual
investment to 2025
Oil produced faster, less expensive and
with less disturbance to environment from
existing wells
EOR can prolong life of oil fields up to 30
years when employed on proven reserves
Fig. 1. Global oil
demand has grown
from 70 million
bpd to over 82
million bpd in the
last ten years.
STEAMFLOODING THE FUTURE
ACTUAL FACTS
Nearly two-thirds of the worlds energy
comes from oil and natural gas.

Oil and natural gas account for virtually all
transportation fuel in the United States, and
civilized world.

The world has taken the availability of oil and
natural gas for granted, and expects them to
be affordable.


STEAMFLOODING THE FUTURE
EXPLORATION & PRODUCTION
Despite the enormous profits being realized by
the major oil companies, and an estimated
$150 billion spent on oil exploration and
development in 2009, most of the money went
to:

Production from known reserves
rather that seeking new ones!


STEAMFLOODING THE FUTURE
FUTURE DEMANDS


The dilemma:
How to produce enough
oil to meet growing
demands?

STEAMFLOODING THE FUTURE
FACTS
Oil can be produced faster, less expensive,
with less disturbance to the environment
from existing wells.

The aging fields and prospects for new
sources of reserves, provides an opportunity
for oil recovery through a method know as
Enhanced Oil Recovery.





STEAMFLOODING THE FUTURE
FACTS
When we take in consideration:
- Cost of implementation
- Speed to recover oil from the ground
- Permitting issues
- Environmental risks
- Exploration risks




STEAMFLOODING THE FUTURE

The solution:
Enhanced Oil Recovery is the
means to meet demand!



STEAMFLOODING THE FUTURE
ENHANCED OIL RECOVERY (EOR)
By definition, enhanced oil recovery is
The third stage of hydrocarbon
production during which techniques that
alter the original properties of the oil are
used.

In the case of Steam Flood, its purpose is
to restore formation pressure and to
improve oil displacement or fluid flow in
the reservoir.
STEAMFLOODING THE FUTURE
EOR TECHNIQUES
Primary recovery produces oil
and gas using the natural pressure
of the reservoir


STEAMFLOODING THE FUTURE
EOR TECHNIQUES
Secondary recovery uses water
flooding and gas re-injection

STEAMFLOODING THE FUTURE
EOR TECHNIQUES
Tertiary recovery injects steam
or other gases and liquids to
stimulate oil flow

STEAMFLOODING THE FUTURE
UNDERSTANDING EOR
20-25%
PRODUCTION
RATES
15-20%
PRODUCTION
RATES
15-20%
PRODUCTION
RATES
STEAMFLOODING THE FUTURE
UNDERSTANDING EOR

The thermal processes (steam injection)
have the greatest certainty of success and
potential applications in about 70% of
enhanced oil recovery worldwide.

Thermal methods also provide the highest
recoveries at the lowest costs
STEAMFLOODING THE FUTURE
UNDERSTANDING EOR
The best application for Steamflooding is:
a well that is less than 5,000 ft deep,
heavy oil with a viscosity less than 10,000
centipoises,
and a soil permeability greater than 200 md.


STEAMFLOODING THE FUTURE
UNDERSTANDING EOR
Enhanced Oil recovery techniques
can prolong the life of an oil field
by as much as 25 to 30 years.

STEAMFLOODING THE FUTURE
EOR PROGRAMS


A BOOM OF ENHANCED OIL RECOVERY
PROGRAMS

Proven reserves
Hard to get oil
High demand
Tight supplies
Cost of finding new oil
Political problems
Environmental concerns




STEAMFLOODING THE FUTURE
EOR PROGRAMS
Steamflooding is a proven enhanced oil
recovery method, used by many of the
major oil companies.

For example, Occidental Chemical
Company maintains a very successful EOR
program, producing approximately
350,000 barrels of oil equivalent (BOE) per
day from EOR operations.

STEAMFLOODING THE FUTURE
GREATEST STEAMFLOOD OPERATIONS


Canadas Tar Sands project in Alberta uses
Steamflood systems for heavy oil production.

Oman is expanding its massive Steamflood
operation.

Russias reserves in Siberia require Steamflood
systems for increased production.

STEAMFLOODING THE FUTURE
GREATEST STEAMFLOOD OPERATIONS



California represents the greatest operations with
almost 20,000 wells producing heavy oils.

Venezuelas Lake Maracaibo employs Steamflood
systems on all of their wells.

Indonesias Duri field has a large Steamflood
operation.


STEAMFLOODING THE FUTURE
PDVSA STEAM BARGE GENERATOR
STEAMFLOODING THE FUTURE
CURRENT PRODUCTION COST



STEAMFLOODING
The Cost Effective Solution!


COST OF OIL PRODUCTION WITH
STEAMFLOODING TECHNOLOGY

Per Day Summary Table
Conditions Revenue Expenses
300 wells@150bpd @$75 per barrel of oil. $3,375,000
Fuel generators 20@50mmbtu/hr (24 hrs/d@$6-mmbtu) $144,000
Water 20 units@4750gph@$.12p/gallon treatment $273,600
Electricity 20 units@180kw@$0.075 per kilowatt $6,480
Operations Maintenance - Insurance $6,900
Total Expenses $430,980
Net Revenue per day $2,944,020
Assumptions
Recovery Rate: Increase of 50%
Steam to Oil Ratio: 1.55 to 1
STEAMFLOODING THE FUTURE
CONCLUSION

With over 50% of oil still in place.
The proven track record of thermal
enhanced oil to produce 15% to
20% of the original oil in place.
STEAMFLOODING THE FUTURE
CONCLUSION

Enhanced Oil Recovery programs
will help solve the complex
energy problems of today.
Steam injection comprising
approximately 70% of all tertiary
recovery operations.
STEAMFLOODING THE FUTURE
CONCLUSION

The applications for this method
will flourish.

STEAMFLOODING THE FUTURE
For more information visit us at:


In the USA
http://premierenergy.com

In Argentina
http://amazonas-electrica.com

Thank You All!