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The terms EOR and IOR have been used loosely and
interchangeably at times.
IOR, or improved oil recovery, is a general term which implies
improving oil recovery by any means. For example, operational
strategies, such as infill drilling and horizontal wells, improve vertical
and areal sweep, leading to an increase in oil recovery.
Enhanced oil recovery, or EOR, is more specific in concept, and it
can be considered as a subset of IOR. EOR implies a reduction in oil
saturation below the residual oil saturation.
The main classes of EOR technologies in the investigation (232 fields)
were:
Thermal EOR: steam is used to heat the oil in the ground, reducing its
viscosity and making it easier to move. This is most often applied in
heavy oil reservoirs.
CO2 EOR: CO2 is injected into the subsurface. In
a miscible CO2 process, the CO2 mixes with, or dissolves into the oil,
increasing its mobility and susceptibility to being pushed by water. In
an immiscible process, the gas does not dissolve into the oil but rather
pushes the remaining oil; this is often combined with water injection.
Other gas injection EOR: similar to CO2-EOR, but with other gases
injected such as natural gas or nitrogen.
Chemical EOR: water soluble polymers and/or surfactants are added
to water that is injected into the subsurface. Polymer-loaded water has
a high viscosity and can push more oil out of the pores in the oil-
bearing formation. Surfactants reduce the surface tension of the oil,
improving its ability to be displaced by water.
Other EOR: this class contains all other technologies such as microbial
EOR, in which micro-organisms are injected in the reservoir, or
combustion EOR, which involves in-situ burning of some of the oil to
generate both heat and gases that help the rest of the oil move more
easily.
Number of EOR projects in operation globally, 1971-2017
Top down
Other
Chemical
CO2-EOR
Thermal
Up to the time (2017) there are around 375 EOR projects operating globally,
producing just over 2 million barrels per day (mmb/d) of oil.
This is a 0.7 mmb/d increase from the last assessment carried out in 2013. EOR’s
share of global crude production seems to have remained broadly stable over time:
around 2% of global oil production.
Historically EOR production has been concentrated in North America, but in recent
years other countries have started deploying EOR technologies.
Malaysia has started offshore EOR production, while the United Arab Emirates,
Kuwait, Saudi Arabia, India, Colombia and Ecuador have all started pilot EOR
projects. Oman has also registered a major increase in EOR production.
As a result, while in 2013 three quarters of all EOR projects (providing 0.8 mmb/d)
were located in North America, in 2017 this proportion has fallen to 40%.
There has also been a wave of efforts to apply EOR technologies in offshore fields;
today there are around 15 offshore projects, which mostly inject natural gas.
mmb/d
Top down
While the lifecycle cost of EOR can be competitive with other production
opportunities, it frequently entails high up-front capital requirements and long pay-
back periods. As a result, EOR production has historically relied on some form of
support or strategic choice.
Today over 80% of global EOR production benefits from some sort of government
incentive or is prioritised by national oil companies as part of their efforts to
maximise the return from national resources.
Main reasons for EOR not grown to greater extent, which could be mentioned are:
The incentive to pursue EOR is often highest when and where there are concerns
over resource scarcity. There are fewer such concerns today.
There is a current preference in the upstream industry for projects that can
generate fast returns. An EOR project requires time to plan, test and implement,
and generates incremental production only in the latter stages of a field’s lifetime.
EOR has become a niche business among oil and service companies, and the
requisite skills, technologies and expertise are not widely available. Five midsize
oil and gas companies currently operate the majority of CO2-EOR projects in the
United States.
Costs for EOR have come down since 2014, but the costs of other projects –
including shale and offshore developments – have come down more quickly. For
the moment at least, EOR technologies struggle to compete with other investment
opportunities.
For EOR to thrive (flowirish) in this way, a number of measures and initiatives would need
to gain momentum soon. For example,
All reserve estimates involve some degree of uncertainty. The estimation of reserves
volumes is generally performed by experts who use their experience and professional
judgment in the calculation of those volumes.
The PRMS incorporates a central framework that categorizes reserves and resources
according to the level of certainty associated with their recoverable volumes
(horizontal axis), and classifies them (production, reserves, contingent resources, and
prospective resources) according to the potential for reaching commercial producing
status (vertical axis).
There is also a distinct class for unrecoverable petroleum.
When applying PRMS, technical specialists must determine a specific project that
will be used to recover the reserves and resources and determine the chance that it
will be commercially successful, then must estimate the volume expected to be
recovered from the “project.” (Reserves are a subset of resources).
Production is the quantity of oil and natural gas that has been recovered already (by a
specified date).
Contingent resources are resources that are potentially recoverable but not yet
considered mature enough for commercial development due to technological or
business hurdles.
Prospective resources are estimated volumes associated with undiscovered
accumulations, as of a given date. This class represents a higher risk than contingent
resources since the risk of discovery is also added.
Some petroleum will be classified as “unrecoverable” at this point in time. While a
portion of these quantities may become recoverable in the future, some of the
remaining portion may never be recovered due to physical or chemical constraints in
the reservoir.
The highest valued category of reserves is “proved” reserves with “reasonable
certainty” (P90) of being recovered (high degree of confidence that the volumes will
be recovered). It means reserves must have all commercial aspects addressed.
“Probable”(P50) or “possible”(P10) reserves are lower categories of reserves,
commonly combined and referred to as “unproved reserves”.
The term 1P is frequently used to denote proved reserves, 2P is the sum of proved
and probable reserves and 3P the sum of proved, probable and possible reserves. The
best estimate of recovery from committed projects is generally considered to be the
2P.
Reserves during the production period will transform from 3P reserve to final cumulative
production or ultimate reserve (cumulative production according to S-curve).