STEAMFLOODING THE FUTURENovember 2010

STEAMFLOODING THE FUTUREbyRandall J. Davis

STEAMFLOODING THE FUTUREGLOBAL OIL DEMANDOil and gas market ripe for breakthrough enhanced oil recovery solution: World oil consumption rate at 85 million barrels per day1/3 production increase over next 15 years to meet projected demandsMarket stability requires $85B annual investment to 2025Oil produced faster, less expensive and with less disturbance to environment from existing wells EOR can prolong life of oil fields up to 30 years when employed on proven reserves

STEAMFLOODING THE FUTUREACTUAL FACTSNearly two-thirds of the worlds energy comes from oil and natural gas.

Oil and natural gas account for virtually all transportation fuel in the United States, and civilized world. The world has taken the availability of oil and natural gas for granted, and expects them to be affordable.

STEAMFLOODING THE FUTUREEXPLORATION & PRODUCTIONDespite the enormous profits being realized by the major oil companies, and an estimated $150 billion spent on oil exploration and development in 2009, most of the money went to:

Production from known reserves rather that seeking new ones!

STEAMFLOODING THE FUTUREFUTURE DEMANDS

The dilemma: How to produce enough oil to meet growing demands?

STEAMFLOODING THE FUTUREFACTSOil can be produced faster, less expensive, with less disturbance to the environment from existing wells. The aging fields and prospects for new sources of reserves, provides an opportunity for oil recovery through a method know as Enhanced Oil Recovery.

STEAMFLOODING THE FUTUREFACTSWhen we take in consideration:Cost of implementationSpeed to recover oil from the groundPermitting issuesEnvironmental risksExploration risks

STEAMFLOODING THE FUTURE

The solution: Enhanced Oil Recovery is the means to meet demand!

STEAMFLOODING THE FUTUREENHANCED OIL RECOVERY (EOR)By definition, enhanced oil recovery is The third stage of hydrocarbon production during which techniques that alter the original properties of the oil are used. In the case of Steam Flood, its purpose is to restore formation pressure and to improve oil displacement or fluid flow in the reservoir.

STEAMFLOODING THE FUTUREUNDERSTANDING EOR When an oil well is drilled and oil is found, the actual production of oil begins.

It is an untrue perception that oil exists in the ground as huge pools or lakes.

Oil is actually found in the rock and soil, stored in the fissures of the rock and geological structures.

STEAMFLOODING THE FUTUREEOR TECHNIQUESPrimary recovery produces oil and gas using the natural pressure of the reservoir

STEAMFLOODING THE FUTUREEOR TECHNIQUESSecondary recovery uses water flooding and gas re-injection

STEAMFLOODING THE FUTUREEOR TECHNIQUESTertiary recovery injects steam or other gases and liquids to stimulate oil flow

STEAMFLOODING THE FUTUREUNDERSTANDING EOR20-25% PRODUCTION RATES15-20% PRODUCTION RATES15-20% PRODUCTION RATES

STEAMFLOODING THE FUTUREUNDERSTANDING EOR

The thermal processes (steam injection) have the greatest certainty of success and potential applications in about 70% of enhanced oil recovery worldwide. Thermal methods also provide the highest recoveries at the lowest costs

STEAMFLOODING THE FUTUREUNDERSTANDING EORThe best application for Steamflooding is:a well that is less than 5,000 ft deep, heavy oil with a viscosity less than 10,000 centipoises, and a soil permeability greater than 200 md.

STEAMFLOODING THE FUTUREUNDERSTANDING EOREnhanced Oil recovery techniques can prolong the life of an oil field by as much as 25 to 30 years.

STEAMFLOODING THE FUTUREEOR PROGRAMS

A BOOM OF ENHANCED OIL RECOVERY PROGRAMS

Proven reserves Hard to get oil High demandTight supplies Cost of finding new oil Political problems Environmental concerns

STEAMFLOODING THE FUTUREEOR PROGRAMSSteamflooding is a proven enhanced oil recovery method, used by many of the major oil companies. For example, Occidental Chemical Company maintains a very successful EOR program, producing approximately 350,000 barrels of oil equivalent (BOE) per day from EOR operations.

STEAMFLOODING THE FUTUREGREATEST STEAMFLOOD OPERATIONS

Canadas Tar Sands project in Alberta uses Steamflood systems for heavy oil production.

Oman is expanding its massive Steamflood operation.

Russias reserves in Siberia require Steamflood systems for increased production.

STEAMFLOODING THE FUTUREGREATEST STEAMFLOOD OPERATIONS

California represents the greatest operations with almost 20,000 wells producing heavy oils.

Venezuelas Lake Maracaibo employs Steamflood systems on all of their wells.

Indonesias Duri field has a large Steamflood operation.

STEAMFLOODING THE FUTUREPDVSA STEAM BARGE GENERATOR

STEAMFLOODING THE FUTURECURRENT PRODUCTION COST

STEAMFLOODING The Cost Effective Solution!

COST OF OIL PRODUCTION WITH STEAMFLOODING TECHNOLOGY

Assumptions Recovery Rate: Increase of 50% Steam to Oil Ratio: 1.55 to 1

STEAMFLOODING THE FUTURECONCLUSION

With over 50% of oil still in place. The proven track record of thermal enhanced oil to produce 15% to 20% of the original oil in place.

STEAMFLOODING THE FUTURECONCLUSION

Enhanced Oil Recovery programs will help solve the complex energy problems of today.Steam injection comprising approximately 70% of all tertiary recovery operations.

STEAMFLOODING THE FUTURECONCLUSION

The applications for this method will flourish.

STEAMFLOODING THE FUTURE

For more information visit us at:

In the USA http://premierenergy.com

In Argentina http://amazonas-electrica.com

Thank You All!

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