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Technology Development with Independents. National Energy Technology Laboratory. Office of Fossil Energy. Independents 5-Phase Program. Provide technical assistance to small independent operators to help find solutions for local production problems
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Technology Development with Independents National Energy Technology Laboratory Office of Fossil Energy
Independents 5-Phase Program • Provide technical assistance to small independent operators to help find solutions for local production problems • Cost-sharing assistance aimed at encouraging producers to apply unfamiliar technologies or novel, unproven approaches to solve operational problems through R&D field demonstration projects • Five solicitations resulted in five phases of research between 1995 and 2003
Goals • Extend the economic production of domestic fields by slowing the rate of well abandonments and preserve infrastructure (including facilities, wells, data and expertise) • Increase ultimate recovery in known fields using advanced technologies for formation evaluation, improved oil recovery and production practices • Use field demonstrations to broaden information exchange and technology application among stakeholders by expanding participation in DOE projects
Technology Development with Independents ‘High-Level Review’ Solicitations: Phase 1: #94PC91008 M&O with BDM-OK subcontracts under Research Opportunity Announcement # OKL-5027-01 – 1995-1998 • DOE investment $1M (29%) & Independents investment $2.5M (71%) • 22 projects awarded Phase 2: #01NT15146.000 – 1999-2002 • DOE investment $1.4M (29%) and $3.5M (71%) • Round 1 – 7 projects awarded • Round 2 – 5 projects awarded • Round 3 – 5 projects awarded • Round 4 – 5 projects awarded • Total of 22 projects awarded Phase 3: #01BC15263.000 – 2001-2003 • DOE Investment $.8M (36%) and Independents $1.3M (64%) • Round 1 – 3 projects awarded • Round 2 – 2 projects awarded • Round 3 – 5 projects awarded • Total of 10 projects awarded
Technology Development with Independents ‘High-Level Review’cont. Phase 4: #02NT15377.00 – 2002-2005 • DOE Investment $.9M (42%) and Independents $1.3M (58%) • Round 1 – No projects awarded • Round 2 – 4 projects awarded • Round 3 – 6 projects awarded • Total of 10 projects awarded Phase 5a: #02NT15376.000 – 2003 - 2008 • DOE Investment $1.8M (49%) and Independents $2.5M (51%) • Area 1 – 1 project awarded • Area 2 – 1 project awarded Phase 5b: #03NT15391.000 – 2003 - 2008 • DOE Investment $3.7M (21%) and Independents $14.3M (79%) • 3 projects awarded GRAND TOTAL OF 69 PROJECTS with total DOE investments of $9.6M (27%) and Independents $25.4M (73%); total combined $35M investment
Phase 1Support to Independents Program: Petroleum Technology Advances through Applied Research by Independent Oil Producers • Performance Period - 1995 to 1998 • 22 projects awarded in 13 states • Maximum award: $50,000 • 9 technology areas • Results • 7 projects ready for technology transfer to other operators • 12 were promising and justified additional monitoring or testing • 3 had little or limited potential • 5 of the 22 projects yielded almost twice the federal funding of the entire program
Technology Development with Independents Initial 22 Projects Awarded – Phase 1 00-10.4.1.1
Phase 1 Highlights Performer: Cobra Oil & Gas, University of Alabama and Schlumberger • Formation Micro-Imaging (FMI) • Used to log core and determine facies • Confirmed that FMI logs are valid as alternation to whole core analysis • Benefits • Cost savings estimated at $10,000 to $25,000 per well Performer: Tenison Oil Company • Wellbore problems with pump sticking, rods parting and wear due to calcium carbonate scale deposition. • Redesigned rod pumps and used tubing anchors • Reduced heat created by friction to reduce calcium carbonate precipitation • Benefits • Workover and operating costs reduced from $10,000 per month to $1,200 per month for demonstration well
Phase 2 Support to Independents ProgramTechnology Development with Independents • Period of Performance -1999 to 2002 • 21 projects awarded in 10 states • Maximum award: $75,000 • 16 projects less than 1 year in duration • Cost share by Industry is 71% • 6 projects rated Highly successful • All projects participated in “Lessons Learned” workshop
Technology Development with Independents Contract and Field Sites – Phase 2 00-10.4.2
Phase 2 Highlights Performer: MNA • Revitalized a 14 well waterflood in New Mexico • Reservoir characterization using DOE’s BOAST III reservoir simulation software • Benefits: Positive production response, which allowed sale of the property to Vintage Drilling Company in November 2001 Performer:Strand Energy Co. • Evaluated secondary recovery in Arkansas oil field • Benefits: Reservoir and well- bore injection performance data obtained during the pilot project will provide important data for secondary recovery optimization. Strand Energy
Phase 2 Highlights cont. 9 C VSP Performer: Visos/ Vecta Energy; PartnerUniversity of Texas at Austin • 9-component Vertical Seismic Profile (3 vectors and sources) • vertical vibrator • incline horizontal vibrator • crossline horizontal vibrator • Improved seismic reflection interpretation • Conventional 3-D seismic uses only compressional P waves, Analysis of S wave phenomenon • Each mode creates a different victor displacement in Morrow sandstone • Discovered that S waves were more robust the P-waves • S wave provided spatial resolution Benefits: • Technology allows operators to image compartmentalized areas of reservoirs for bypassed oil. • Improved interpretation of Morrow sandstone in Co, KS, OK and TX Directional movement of wave modes
Phase 3Technology Development with Independents • Period of Performance – 2001 to 2003 • 10 projects awarded in 6 states • Maximum award $75,000 • Cost-share by industry 64% • 8 projects judges successful Marks, Assoc. Biostratigraphy Evidence for oil exploration
Phase 3Highlights Performer: DAKFAM, Inc. • Used GasGun to generate shockwaves and high pressure to create fissure out fro drill hole which served to connect fractures. Benefits: Returned three idle wells to production Performer: Hunter Living Trust (Vaquero Energy) • Designed well surveillance system to monitor marginal oil wells. Benefits: • Implemented Marginal Expense Oil Well Wireless Surveillance (MEOWWS) system. • Demonstrated feasibility of wireless surveillance devices and remote sensor technology. MEOWWSBase Station Antenna and Radio Modem
Phase 4Research with Independents • Period of Performance – 2003 to 2005 • 10 projects awarded in 5 states • Maximum award $100,000 • 58% industry cost share • Projects with St. James and Vecta were funded as follow-ups to previous awards from Phase 2 • All projects were technical successes Arnell Oil Co. Littleton, CO
Phase 4 Highlights Performer: St. James • Designed new hydrochloric-phosphonic acid treatment to dissolve severe calcium carbonate scale buildup. • Inhibits the formation of calcium carbonate scale. Benefits: Returned 4 shut-in wells to production double the prior to shut-in Los Angeles, CA Performer: Grand Mesa Operating Co. • Demonstrated feasibility of polymer gel technology to increase recovery in Kansas. Benefits: Polymer gels reduce water production, reduce well and operating costs. St. James Grand Mesa
Phase 5Advanced Technologies for Independents • Performance Period – 2002 to 2005 • 5 projects awarded in 5 states • Maximum award $100,000 • Industry cost share 51-79% • Projects focused on: • Drilling and completion • Reservoir characterization • Seismic technology • All projects were successful Schlumberger time-lapse seismic, Michigan Vecta seismic Exploration in Williston Basin
Phase 5Highlights Performer: Enerdyne, LLC • Developed submersible pump suspended on stainless steel wireline cable demonstrated in San Juan Basin, NM Benefits: • Suspending the pump on wireline permits rapid deployment and retrieval • New pump can cut capital costs and reduce operating costs significantly Performer: Utah Geological Survey • Reservoir characterization of Leadville Lm, UT Benefits: • Reduce exploration costs and drilling risk in environmentally sensitive areas • Add new oil discoveries and reserves Enerdyne wireline cable UGS Leadville Limestone
Independent ProgramBenefits • Maintain current domestic production levels • Curtail premature loss of domestic production due to fluctuating economic conditions • Increase ultimate recovery in known fields using advanced technologies • Program reached small independent operators who had not previous received direct benefit from DOE research or funding • Shared technologies through DOE and PTTC workshop reached a wide range of independents Tremblor Petroleum Co., CA