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Improved Oil Recovery Risks Can Be Reduced
While improved oil recovery (IOR), exploration and acquisition are the three basic choices for increasing production and reserves, many independent producers may fully understand only the latter two. However, they can access information that increases confidence and reduces IOR risk, according to Leo Schrider, senior vice president of Belden and Blake Corporation in North Canton, Ohio. Schrider, PTTC's vice chairman, provided the independent's perspective on IOR in a plenary session at the Eleventh Symposium on Improved Oil Recovery in Tulsa, Okla., on April 19. The Society of Petroleum Engineers and US Department of Energy (DOE) sponsored the biennial meeting.
With independents, it's essential to apply technologies that areprofitable in today's price environment, Schrider said. "Examples include water shutoff, profile modification, polymers, alkaline-surfactant-polymer and CO2 in selected areas," he added. Also, Schrider said that the results from cost-shared government and industry field demonstration projects can provide insight. And he recommended PTTC as a resource. "The attraction for independents to IOR opportunities certainly is real," Schrider noted.
To have success in IOR, "Information must be targeted, concise and readily available. And project timing is critical due to available capital and oil price assumptions," said Schrider. "The keys are to reduce reservoir risk and IOR process risk," he said.
Schrider cited Belden and Blake's success with its Marlboro (Ohio) Oil Field as an example of how to reduce reservoir risk. "By knowing the reservoir through improved characterization, performing integrated multidisciplinary analyses and cost-effectively applying geological and engineering software tools, we were able to economically produce reserves with current technologies and economic conditions," he said.
The company used moving domain analysis techniques to identify infill drilling and production enhancement potential. Following validation by drilling at the 10 best sites, Belden and Blake will extend the technologies to its East Canton field, which has the potential for 200 to 300 wells, holding reserves in excess of 7 million barrels.
Reducing IOR process risk is possible through proven screening criteria, said Schrider. "It's knowing when to avoid the paralysis of analysis by 'just doing it' and through leveraging government R&D funding," he said. For Belden and Blake's East Randolph (Ohio) Field, a cooperative project was initiated to leverage DOE funds. An 18-month reservoir management demonstration project was created, with simulations showing gas injection to be more attractive than waterflooding. Now in pilot testing, not only does the field have the gas injection potential of 800,000 barrels of oil, but also there are strategic benefits to other reservoirs. In addition to Schrider, the session, "IOR Technology-Global Impact," featured speakers representing majors, service companies, international, banking, US government, and worldview perspectives. Copies of Schrider's overheads can be obtained by contacting PTTC at 1-888-THE-PTTC, hq@pttc.org.
The US Department of Energy's Office of Fossil Energy and PTTC recently signed a five-year cooperative agreement. Under the new agreement-which is effective May 1, 1998, through April 30, 2003-PTTC will provide technology transfer services for US independent exploration and production companies. The total DOE commitment, $12.7 million, is contingent on annual federal appropriations.
"This agreement allows PTTC to continue the technology transfer programs it has developed since its founding in 1994," said PTTC Chairman Bob Nance, president of Nance Petroleum Corp., in Billings, Mont. "PTTC's regional and national websites, focused solution-oriented workshops and regional resource centers are particularly important to US independent producers in light of today's low-or non-existent-oil and gas production profit margins. These activities are equally critical to the nation's energy future," Nance added.
PTTC receives additional funding from several state governments, as well as significant contributions from universities and state geological surveys that host PTTC's regional resource centers. Other support comes from industry contributions and donations of exploration and production software. Together, these other funds represent a cost-share ratio, to date, of nearly 40 percent. Funding for PTTC's new contract comes from the DOE oil program through the National Petroleum Technology Office (NPTO), as well as the natural gas program at the Federal Energy Technology Center. From 1994 through April 1998, PTTC received DOE funding under a contract with BDM-Oklahoma, Inc., the management and operating contractor for NPTO.
Operators are not the only ones who can benefit from workshops, according to speakers at the Eleventh Symposium on Improved Oil Recovery on April 21 in Tulsa, Okla. As part of the conference's exhibitor update series, attendees learned how vendors and operators alike can benefit from PTTC's activities.
Introduced by Rodney Reynolds, PTTC's North Midcontinent Region director and EOR liaison engineer for the University of Kansas Tertiary Oil Recovery Project, the first example involved one of the region's casing leak solutions workshops. The May 1996 workshop drew more than 70 attendees who learned about prevention methods; detection, isolation and repair; and cement versus polymer squeezing.
"Both vendors and operators benefit from these workshops," said Randy Prater, from Polymer Systems Inc. (PSI). As a result of his workshop presentation, Prater said that PSI saw a sharp increase in the number of casing leak squeeze operations it performed. He added that half of his company's operations in the past two years (at least 18 out of 37) were performed for operators who attended the workshop. Moreover, Prater said that the success rate for these operations has improved, attributing it to "learning from experience" and "more effective communication with operators through PTTC activities."
Operators are pleased with the networking opportunities-and appreciate the practical tips-gained through PTTC's activities, noted Iraj Ershaghi, PTTC's West Coast RLO director. Ershaghi emphasized the importance of the practical advice disseminated at workshops, the focused attention of one-on-one visits to the resource centers and the computer-aided tools to improve operator understanding of the possibilities and obtain better results in real time.
Ershaghi cited a January 1997 3-D geologic modeling workshop as one example. An attendee was having problems characterizing a reservoir where 38 distinct layers has been co-mingled in previously drilled wells. After discussing the situation with one of the 3-D visualization software vendors at the workshop, the operator acquired the software license and used it to characterize the reservoir. "Our follow-up shows significant progress to date. The operator is ready to complete four wells to tap bypassed oil," Ershaghi said.
Whether an operator or vendor, Clark Southmayd, Jr., manager of engineering for Oneok Resources Co. in Tulsa, Okla., and a member of PTTC's Board of Directors, told attendees, "These examples highlight how PTTC can give you direction on what is available to solve your problems," he said.
Providing practical ideas and approaches for solving technology problems without being overly technical, the second Emerging Technologies Energy Conference (ETEC) will take place November 12 at the Hyatt Regency Hotel in New Orleans. ETEC '98 precedes the Independent Petroleum Association of America's (IPAA) Annual Meeting. The conference is co-sponsored by PTTC and IPAA.
Like last year's conference, ETEC '98 will be geared toward managerial and executive level staff for independent oil and gas producing companies. The morning sessions will address information technology and how it will influence the future of the petroleum industry. The afternoon session will begin with a panel discussion by service companies and other technology providers. The conference ends with several important case studies presented by both the producer and the service company involved on a project.
For more information, contact Allison Miller 1-888-THE-PTTC.
Jeff Lenard joined PTTC's headquarters staff in May as manager of communications and marketing. In this position, Lenard serves as editor of PTTC Network News and is responsible for PTTC's new marketing campaign. Lenard most recently served as manager of public affairs for the 58,000-member American Institute of Chemical Engineers.
"Jeff brings a unique combination of communications, marketing and technical experience that will help in implementing the goals and objectives of our strategic plan," said PTTC Executive Director Deborah Rowell. "His 12 years of technical association experience will be an added benefit in communicating PTTC's message to a diverse audience," she added.
Lenard earned a BS in mechanical engineering from Worcester Polytechnic Institute and an MBA in marketing from Syracuse University. He can be reached at 1-888-THE-PTTC, or hq@pttc.org.
Founding PTTC Board of Directors member Myron Gottlieb retired from the Gas Research Institute (GRI) in May after 17 years of service to the organization. Gottlieb served as the GRI representative to PTTC's Board and has been an active member on the Management and Budget Committee.
"PTTC has been very fortunate during the last four years to have someone with Myron's talents and knowledge of the technology transfer process. He is a widely respected expert who has generously given of his time to help establish PTTC and make it a success," commented PTTC Executive Director Deborah Rowell.
As vice president of natural gas supply technology development for GRI, Gottlieb directed research focusing on advanced technology for economically finding, producing and processing natural gas. He earned a DS from the Drexel Institute of Technology and a PhD from the University of Maryland, both in chemical engineering. Charles Brandenburg, industry liaison of GRI's Supply Business Unit, will replace Gottlieb as the GRI representative to the PTTC Board.
In response to industry's crisis conditions, PTTC has stepped up efforts to bring independents-especially marginal well operators-access to cost-effective technological assistance.
Bringing technical solutions to the oilpatch starts with communicating needs to those providing solutions. Our problem identification survey is still available on our website, or by calling 1-888-THE-PTTC. To make this a truly significant analysis that can get the attention of technology providers, please fill out the simple, two-page form and send it in by summer's end.
With communications such a key part of tech transfer, I want to thank Bruce Wells for his dedicated service and contributions as PTTC's communications manager since 1995. Bruce recently left the staff to join Washington Writers Group. We're pleased to have Jeff Lenard as the new editor of PTTC Network News to replace Bruce.
Technology Manager Sought
Finally, we have a job opportunity on staff for a technology transfer manager. A liaison between producers and R&D and technology sources, the person will work with our 10 regional directors to transfer new technology. Requirements include a degree and professional certification in petroleum engineering or geoscience and at least seven years oil/gas industry experience. Strong career references and communications skills are essential.
Applicants can reside in the oilpatch; extensive US travel is required. We will consider a full-time employee or contractor status. PTTC provides competitive salary and benefits and is an equal opportunity employer. Send a resume to PTTC, 1101 16th St., NW, Suite 1-C, Washington, DC 20036-4803, fax (202) 785-2240, e-mail hq@pttc.org.