Technology Development with Independents National Energy Technology Laboratory Office of Fossil Energy.

Technology Development with Independents

National Energy Technology Laboratory

Office of Fossil Energy

Descriptor - include initials, /org#/date

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

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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

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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

Descriptor - include initials, /org#/date

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

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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

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Technology Development with Independents Technology Development with Independents Initial 22 Projects Awarded – Phase 1Initial 22 Projects Awarded – Phase 1

00-10.4.1.1

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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

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Phase 2 Support to Independents Program

Technology 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

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Technology Development with Independents Technology Development with Independents Contract and Field Sites – Phase 2Contract and Field Sites – Phase 2

00-10.4.2

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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

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Phase 2 Highlights cont.

Performer: Visos/ Vecta Energy; Partner University 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

9 C VSP

Directional movement of wave modes

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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. BiostratigraphyEvidence for oil exploration

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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.

MEOWWS Base Station Antenna and Radio Modem

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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

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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.

Grand Mesa

St. James

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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 seismicExploration inWilliston Basin

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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, UTBenefits:• Reduce exploration costs and drilling

risk in environmentally sensitive areas

• Add new oil discoveries and reserves

Enerdyne wireline cable

UGS Leadville

Limestone

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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