Introducing EOR Technology to Independent Operators

Abstract

Summary This paper describes how the Tertiary Oil Recovery Project (TORP), a research group at the U. of Kansas, stimulated application of permeability-modification techniques by independent oil operators through effective technology transfer. As of Spring 1987, TORP had worked with operators on 21 gelled-polymer field treatments. Three of the projects are described to illustrate the technology and the university/industry program. Introduction EOR processes have not been widely used by independent operators in the U.S. because of unavailability of reservoir data, limited equipment resources, and concerns that the technology cannot be applied successfully. In addition. limited financial resources inhibit the application of EOR processes in small fields. While some independents have staff engineers who can implement EOR, most cannot afford the expense of adding professional personnel whose sole purpose is to design and implement EOR processes. Further, the cost of laboratory research and engineering studies is usually prohibitive. When EOR processes are initiated but results are marginal owing to lack of capital or poor process performance, the operator is not able to continue the process and reverts to previous practices in the day-to-day operation of the lease. The net result is that potentially recoverable oil is lost by the plugging and abandonment of many stripper wells. Currently, many major oil companies are selling leases in the U.S. midcontinent region. An independent oil operator can often make money on these leases for a limited time because operation overhead is lower than that of a major company, but these leases will have to be abandoned by the independent in a short time. The leases might have the potential for continued economic operation if the appropriate EOR process were applied to the reservoir. This paper reviews some of the problems independent oil operators face when trying to implement EOR processes and presents an example of how TORP has successfully introduced one type of EOR application to small operators. Constraints Independent oil operators face constraints that make implementation of EOR processes very difficult. These constraints vary with individual operators; however, some of the most common are unavailable reservoir and production data, limited equipment resources, and concerns that a process cannot be applied successfully. Many independent operators feel that all EOR processes are very expensive or that the processes may not be applicable to their reservoirs. Although some EOR processes are capital intensive, a few are affordable to the independent operator and can be implemented successfully. The cost and type of process implemented depends on the type of reservoir problem. Individual well and lease records are essential to determine applicability of particular processes. On many leases operated by independents, however, insufficient data exist to determine production problems. Many independent operators have reduced overhead by not conducting individual well tests and/or not replacing broken metering devices. Although lifting costs are reduced in the short term, the lack of data to define the reservoir and production problems decreases the potential of the project. Equipment resources are another problem. Leases are often operated with a minimal amount of equipment and maintenance to reduce overhead. With limited technical staffs to assess the applicability of equipment, independents often rely on information from the equipment vendors, who are not always sufficiently knowledgeable of the independent operator's specific needs and equipment problems. In summary, before independent oil operators will use an EOR process, they must hurdle these constraints and have confidence that the process can be successful. They cannot afford major expenditures without a reasonable payout period. If capital must be borrowed, the lending institution must also be convinced that the process will be economically attractive. Implementing an EOR Process In 1974, TORP began a program to acquaint oil producers with the technical and economic potential of enhanced recovery methods. In the process, TORP started a field liaison program in 1983. With the help of an advisory board composed mostly of independent oil operators, the liaison program immediately developed a rapport with a number of operators in Kansas and began assessing the problems that operators face. Many independents in Kansas were found to have a common problem. JPT P. 1344^