Post on 19-Feb-2015
1Upstream Overview – Business Confidential
February, 2009Mark H. HoltzFebruary, 2009Mark H. Holtz
Upstream Oil and Gas OverviewUpstream Oil and Gas Overview
Reserve Growth for Higher Recovery Efficiency
Reserve Growth for Higher Recovery Efficiency
2Upstream Overview – Business Confidential
Praxair At A Glance
� A Fortune 500 company with 2008 sales of 10.8 billion $.
� One of the largest industrial gases companies worldwide and the largest in North and South America
� Operations in more than 30 countries
� 28,000 employees
� One million customers worldwide
3Upstream Overview – Business Confidential
NorthAmerica
SouthAmerica
EuropeAsia
Praxair Industrial Gases Reach World-Wide
Praxair operates in countries shaded green
4Upstream Overview – Business Confidential
� Cryogenic air separation � Non-cryogenic air
separation � Hydrogen production� Carbon dioxide
purification� Gas-liquid separations� Oxidation technology
(combustion)� Atmosphere control� Gas dissolution� Refrigeration
Praxair Core Technologies
5Upstream Overview – Business Confidential
On-Site/Pipeline Supply
Liquid Supply
Packaged Gases
Praxair Gas Supply Options
�Nitrogen, oxygen, hydrogen�15 + year supply contracts�Designed & operated for reliability
�Nitrogen, oxygen, argon, CO2, helium, H2
�Specialized cryogenic distribution equipment
�Welding, medical, specialty gases�Cylinders for the retail market
6Upstream Overview – Business Confidential
Upstream Oil and Gas
� Enhanced Oil Recovery– Over 30 years experience with
Gas Displacement Recovery (GDR)� Nitrogen� Carbon Dioxide� Methane
– More than 25 projects
� Well Stimulation Services
� CO2/N2 EOR Services– Pilots and huff-n-puffs
� CO2 Capture & Purification
Exxon Hawkins Field,65 MMscf/d 2,000 psi
7Upstream Overview – Business Confidential
GDR’s Place in the Market
� Number 1 method to add light oil reserves.
� “in the US chemical and thermal EOR projects have been in constant decline since the mid 1980’s with gas injection methods as the preferred recovery Methods”(Dr. Leonid Surguchev et al. World Petroleum Congress 2006)
Historical US EOR Production
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)
8Upstream Overview – Business Confidential
N2 Reserve Growth Applications
� Pressure Maintenance– Pressure maintenance condensate and retrograde condensate
gas reservoirs
� Miscible Displacement
� Gas Assisted Gravity Drainage
� Immiscible Displacement– Oil– Gas cap gas
� Mixed Gas Applications– Driving agent for slug/buffer– Mixed gases for density control
9Upstream Overview – Business Confidential
Gas Condensate Pressure Maintenance
� Effects of Pressure Depletion:– Reduction in gas permeability and well productivity– Lower ultimate hydrocarbon recovery by 10 to 40 %– Allows water encroachment
� Application Screening Criteria:– Dew point pressure– High condensate yield typically > 175 bbl/MMSCF produced, – High liquid dropout rate with liquid condensation from
20 to 40 % of the hydrocarbon pore space.
10Upstream Overview – Business Confidential
Anschutz Ranch E. Field Gas Condensate Pressure Maintenance Example
From Kleinsteiber et al., 1983
1) Dew point pressure is near the original reservoir pressure,
2) Condensate yield of 175 bbl/MMSCF produced,
3) high liquid dropout rate 20 to 40 % of the hydrocarbon pore space.
� Nugget ss, WY
� 10 % porosity
� 3 md perm.
� 5,600 psi injection pressure
� N2 & CH4 injected
� Pi = 5,310 psi
� Pdew= 5,080 psi
Reservoir Characteristics
MILES
0 6 12 18
UINTA
MTNS
ABSAROKALODGEPOLE
ELKHORNPINEVIEW
ANSCHUTZRANCH
CAVE CRKANSCHUTZRANCH E.
Utah YELLOWCRK GLASSCOCK
HOLLOW
CLEAR CRK
WHITNEYCANYON
REDCANYON PAINTER
E PAINTER
RYCKMANCRK
CARTERCRK
Wyoming
DAR
BY
CRAWFO
RD
OVERTHRUST BELT
11Upstream Overview – Business Confidential
Anschutz Ranch E. FieldGas Condensate Pressure Maintenance Example
Wendschlag et al., 1983From Kleinsteiber et al., 1983
9 COMP17 COMP
Cumulative N2 Injected, HCPVFig. 3-Recovery comparison from 1-D nitrogen displacement simulations
0.0 0.5 1.0 1.5 2.0
Cum
ulat
ive
Oil
Rec
over
y, %
OH
IP
0
10
20
30
40
50
60
70
80
90
100� Injection scheme
1) Inject 0.1 HCPV of 35% N2 and 65% wet gas
2) Chases with pure N2
� 80-acre inverted 9 spot pattern
� 50 MMscf/day
� 6,200 psi injection pressure
12Upstream Overview – Business Confidential
N2 Miscibility Displacement � Results in high
displacement efficiency at the pore level
� There are three types of miscibility including;– First-contact
miscibility– Multi-contact
miscibility– Vaporizing mass-
transfer miscibility
ProducerInjector
Prax
air
13Upstream Overview – Business Confidential
Jay Field Miscible WAG
� 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
Well pattern and Structure
15300’15300’
5200’
15100’
5100’
Oil producerWAG injectorWater injector
14Upstream Overview – Business Confidential
Gas Assisted Gravity Drainage
N2 injector Producer
� The Most Common Gravity Drainage Processes are:– Gas assisted gravity
drainage ( no water present)– Double displacement
process ( water present)
� Double Displacement Process (DDP). The process of gas displacement of a water invaded oil column.
� The double displacement process consists of injecting gas up-dip and producing oil down-dip
Double Displacement ProcessOil Saturation 2000-01-01
0.00.10.20.30.40.50.60.70.80.91.0
15Upstream Overview – Business Confidential
Gravity DrainageDouble 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 Efficiency– Oil film flow is an important recovery mechanism
� Film flow connects the isolated blobs of residual oil in the presence of gas
– Strong water wet– Oils with positive spreading coefficient
Modified from Ren et al., 2000)
16Upstream Overview – Business Confidential
Hawkins FieldDouble Displacement Process
Lawrence et al., 2003
Double Displacement Process Schematic
Gas
Asphalt
Oil
Water
Water-invadedOil Column
Discovery1940
Project Start-up1994 Current Ultimate Drainage
Oil Producer
GasInjector
Shut in
Shut in
Oil Producer
WaterWithdrawal
Well
Shut In
GasInjector
Shut In
Shut In
GasInjector
Oil Producer(UltimateDrainage)
17Upstream Overview – Business Confidential
Immiscible Flooding
� Oil Swelling
� Oil Viscosity Reduction
� 3 Phase Flow Oil Mobilization (Kr effects)
� Improved Volumetric Sweep Efficiency
Modified from Fernandez and Pascual. 2007 Spe # 108031
Recovery Mechanisms Gas Cap Injection
� N2 occupies 23% more space than CH4 at set pressure
� N2 and CH4 Viscosities are similar
18Upstream Overview – Business Confidential
Mixed Gas ApplicationsN2 as Driving Agent (chase gas)Nitrogen – CO2 FloodingIn a CO2 flood, the use of nitrogen to displace the CO2 slug and its miscible oil bankMight be desirable due to the lower cost of the nitrogen
NitrogenDisplacer
GasCO2Slug
MiscibleZone
OilBank
AdditionalOil
Recovery
Barsonic EnergyTechnology Center
CentrifugalAir Compressor
Produced Fluids (Oil, Gas and Water)Separation and Storage Facilities
Production Well
Air SeparationPlant
InjectionCompressor
InjectionWell
Carbon Dioxide
Viscosity of oil is reduced providing more efficient miscible displacement.
19Upstream Overview – Business Confidential
Project Types
� Full Field Floods– Cryogenic plant
� Single Reservoir Compartment– Small cryogenic nitrogen plant– Non-cryogenic membrane plant
� Pilot Projects– Small cryogenic nitrogen plant– Liquid transport vessels
� Offshore Gas Lift Applications– Membrane plant for platform– Liquid transport vessels for platform or ship
� Huff ‘n’ Puff Applications– Pumping equipment– Liquid transport vessels
20Upstream Overview – Business Confidential
The Key to Full Field Projects:Reservoir Characterization Work Flow
Feed
bac
k Lo
opStart
Determine Reservoir ArchitectureDetermine Reservoir Architecture
Establish Fluid-Flow TrendsEstablish Fluid-Flow Trends
Develop a Reservoir ModelDevelop a Reservoir Model
Identify Reserve Growth PotentialIdentify Reserve Growth Potential
21Upstream Overview – Business Confidential
GDR Pilot Project DesignFor Reserve Growth
� Key is Proper Planning– Determine goals, objectives, and strategy
� 5 Major Steps Include:1. Initial reservoir characterization
– Identifying reserve growth method
2. Monitoring program3. Facilities design4. Proper implementation5. Postmortem evaluation
22Upstream Overview – Business Confidential
Praxair’s Portfolio of GDR Projects
Pemex 190 MMcfd / 3000 psig
Amoco 50 MMcfd / 6000 psig
� Miscible Displacement– Block 31, TX, USA– Painter Field, WY, USA– Binger, OK, USA– Flomaton, AL, USA– Vealmoor Field, TX USA– Odessa, TX USA– Douglas, WY, USA– Glenrock WY, USA
� Gas Assisted Gravity Drainage– Hawkins, TX, USA– Samaria, Mexico
� Pressure Maintenance– Samaria, Mexico– Anschutz, WY, USA– Bakersfield CA, USA– Iraan, TX, USA– Tatums, OK, USA– Colorado, USA– 2 Kansas, projects USA
� Enhanced Coalbed Methane– Farmington, NM, USA– Trinidad, CO, USA
23Upstream Overview – Business Confidential
Tula, Hidalgo
Salamanca, Guanajuato
MexicoCiudad Madero, Tamaulipas
Minatitlan, Vearcruz
TABASCO STATEPEMEX SOUTH REGION25 KMS FROM VILLAHERMOSA CITY
Samaria
Cadereyta, NL
Project ExampleSamaria Oil Field
Praxair Scope� Turnkey project� Build / Own / Operate� Pipelines to injection wells� 24 month project schedule
PEMEX projects that N2 will double the ultimate recovery
� 190 MMcfd nitrogen at 3,000 psig� 15 year injection requirement� Remote location
24Upstream Overview – Business Confidential
Project Example - Samaria Oil Field
Project Management & Execution
� Design
� Engineering
� Equipment Construction
� Risk Mitigation
25Upstream Overview – Business Confidential
Advantages of Nitrogen Gas Displacement Recovery (GDR)
� Proven Oil Recovery Method
� Cost Effective
� On Site Nitrogen Plant
� Nitrogen– Can replace recycle hydrocarbon gas– Is inert– Is non-corrosive– Is dry– Is oxygen free
26Upstream Overview – Business Confidential
CO2 & N2 Well Stimulation Services
Benefit of Using Gas� Solubility and viscosity� Less damaging� Easier cleanup� Greater effective frac length� Foaming ability � Excellent surface tension
reduction
Praxair Services� Supply liquid CO2 & N2� Logistic services� Dedicated primary pressure pumping � Strategically located plants
27Upstream Overview – Business Confidential
Praxair N2/ CO2
Vessels
Praxair N2/ CO2
Vessels
Praxair Pump Trailer
Praxair Pump Trailer
Water TanksWater Tanks
Well HeadWell Head
ProppantTruck
ProppantTruck
Pump TrucksPump Trucks
N2 / CO2VesselsN2 / CO2Vessels
Well Stimulation Services
Gas Supply and Service Provider
28Upstream Overview – Business Confidential
� Identification of Potential Oil and Gas Fields for Gas Displacement Recovery
� Assist & Facilitate with Project Development– Reservoir engineering services– Selection of gas injectant– Recovery process simulation– Optimization of gas supply system
� Short Courses and Seminars on GDR
� Support EOR Pilot Projects
� Provide Gas Injection Requirements
Praxair EOR Services
29Upstream Overview – Business Confidential
Praxair – CO2 EOR Pilot ProjectsOn Site Storage Pumping and Heat Equipment
Injection Analysis
30Upstream Overview – Business Confidential
CO2 Sources for Capture and Purification
Praxair’s Approach: Choose a source with the cleanest gas stream possible which meets the supply needs.
Typical Sources� Refineries� Natural sources� Natural gas processing� Chemical plants� Ethanol plants� Ammonia fertilizer plants� Grain fermentation� Hydrocarbon combustion
31Upstream Overview – Business Confidential
Summary: N2 Reserve Growth
0.45-.53Pressure maintenanceAnschutz Ranch East
0.36Immiscible displacementField B*
0.19 – 0.46Pressure maintenanceFordoche Wilcox 5
0.195Miscible displacementFordoche Wilcox 8 & 12
0.19Pressure maintenanceLake Barre
0.13Miscible displacementJay/(LEC)
0.12N2 Pressure maintenanceSzeged Moravaros
0.6 (total) no secondaryMiscible displacementBlock 31
0.31Pressure maintenanceChunchula
Additional Recovery (fraction OHIP)EOR ApplicationField
* From Clancy
32Upstream Overview – Business Confidential
Conclusions
� Future Reserve Additions in Large, Light Oil, Mature Fields will Primarily come from GDR.
� Reserve Additions Will Occur Through:1. Pressure maintenance2. Miscible displacement3. Immiscible displacement4. Gas assisted gravity drainage 5. Mixed gas applications: driving agent/density control
� 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
33Upstream Overview – Business Confidential
Praxair Contacts� Mark H. Holtz,
– Director, EOR Global Business Development– mark_holtz@praxair.com,
Cell 512-217-4833
� India– Atul Nagarkar,
atul_nagarkar@praxair.com– Subhash Kaipa,
subhash_kaipa@praxair.com
� Mexico– Arturo Garcia,
arturo_garcia@praxair.com– Amado Polo,
amando_polo@praxair.com
� South America– Marcelo Maron
marcelo_maron@praxair.com
� Argentina– Dario Bompani,
dario_bompani@praxair.com, Wk +541147366104
� Venezula– Antonio Chacin,
antonio_chacin@praxair.com, Cell 584146450593
� Colombia– Alejandro Aldana,
alejandro_aldana@praxair.com– Leonardo Pinzon,
leonardo_pinzon@praxair.com
� China – Jet Yang,
jet_yang@praxair.com
� Eastern Europe– Nevio Corna,
nevio_corna@praxair.com, Cell +393473922524