Future Oil

Recovery
Efficiency
60%+ MAXIMIZING OIL RECOVERY
EFFICIENCY AND SEQUESTRATION
OF CO2 WITH NEXT GENERATION
CO2-EOR TECHNOLOGY
Todays Oil
Recovery
Efficiency
33% Presented by:
Vello A. Kuuskraa, President
Advanced Resources International
vkuuskraa@adv-res.com

May 2008

JAF02742..PPT 1 May 9, 2008 Advanced Resources International

 SPE DISTINGUISHED LECTURER SERIES
is funded principally
through a grant of the

SPE FOUNDATION
The Society gratefully acknowledges
those companies that support the program
by allowing their professionals
to participate as Lecturers.

And special thanks to The American Institute of Mining, Metallurgical,

and Petroleum Engineers (AIME) for their contribution to the program.
JAF02742..PPT May 9, 2008
 Background

1. Status and Outlook for CO2-EOR

2. Next Generation CO2-EOR Technology
gy
Increasing Oil Recovery Efficiency
Expanding
p g CO2 Storage
g Capacity
p y
3. Summary

JAF02742..PPT 3 May 9, 2008

 Large Volumes Of Domestic Oil Remain Stranded After
Primary/Secondary Oil Recovery

Original Oil In-Place: 596 B Barrels*

St
Stranded
d d Oil IIn-Place:
Pl 400 B B
Barrels*
l *

Future Challenge
390 Billion Barrels

Cumulative Production
175 Billion Barrels

Proved Reserves
21 Billion Barrels

*All domestic basins except Deep Water GOM.

Source: Advanced Resources Intl. (2007)

JAF02742..PPT 4 May 9, 2008

 U.S. CO2-EOR Activity
105 Number of CO2-EOR Projects
Natural CO2 Source
Dakota
D k t CCoall I d t i l CO2 Source
Industrial S
Gasification
CO2 Pipeline
Plant

Antrim Gas
LaBarge Plant
Gas Plant
10 8
2
1 Currently
Currently,105
105 CO2-EOR
1 Enid Fertilizer projects provide 250,000
McElmo Dome Plant
Sheep Mountain B/D
Bravo
JA Dome 7
F 0 19
94 Jackson Affordable natural CO2
.C D
R
Dome launched CO2-EOR
61 1 activity in the 1980s
Val Verde
Gas Plants 14 Federal tax credits
(Sec.43) and state
severance tax relief still
Source: Oil and Gas Journal, 2008. encourage CO2-EOR
JAF02742..PPT 5 May 9, 2008
 Growth of CO2-EOR Production in the U.S.

JAF2008008.XLS
300,000
GULF COAST/OTHER
ced Oil Recovery

MID-CONTINENT
250,000
ROCKY MOUNTAINS
PERMIAN BASIN
y)

200 000
200,000
(barrels/day

150,000
Enhanc

100,000

50,000

0
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Y
Year
Source: Oil and Gas Journal, 2008.

JAF02742..PPT 6 May 9, 2008

 Outlook For CO2-EOR

Recently updated study of applying state-of-

the-art CO2-EOR in the U.S. indicate:
88 billion barrels of technically recoverable resource,
From 39 to 48 billion barrels of economically
recoverable resource
resource, depending on oil price and CO2
costs.

Results are based on applying streamline

reservoir
i simulation
i l ti to t 2,012
2 012 llarge oil
il reservoirs
i
(74% of U.S. oil production).

Previous version of the basin studies are available

on the U.S. DOE web site.
http://www.fe.doe.gov/programs/oilgas/eor/Ten_Basin-
Oriented CO2 EOR Assessments html
Oriented_CO2-EOR_Assessments.html

JAF02742..PPT 7 May 9, 2008

 One--Dimensional Schematic of the CO2 Miscible Process
One

Miscibility is Developed in This Region

(CO2 and Oil Form Single Phase)

CO2
Pure CO2 Vaporizing
p g Original
g
C d i
Condensing
CO2 Oil Components Oil
Into Oil

Direction of Displacement

JAF02742..PPT 8 May 9, 2008

 Domestic Oil Resources Technically and
Economically
E i ll Recoverable
R bl w/CO
/CO2-EOR

100
88.1

80
n Barrels

60
47.4
Billion

40

20
23
2.3
0
Technically Economically Already
Recoverable Recoverable* Produced/
Proven

*Assuming oil price of $70/B (real); CO2 costs (delivered to field at pressure) of $45/metric ton
($2.38/Mcf); investment hurdle rate (15%, real).

JAF02742..PPT 9 May 9, 2008

 Market Demand for CO2 by the Enhanced Oil
R
Recovery d t (1)
IIndustry

14,000
12,500
12,000
9,700
,
ns

10 000
10,000
n Metric Ton

8,000 7,500

6,000
,
Million

4,000 2,800*
2,200**
2,000
0
Total U.S. New Net Lower-48
CO2 Demand Lower-48 From Captured
CO2 Demand CO2 Emissions

*CO2 demand in Alaska is already being met by on-going CO2-EOR projects

**CO2 demand that can be met by natural CO2 and already being captured CO2 emissions.
(1) Economic CO2 market demand for EOR at oil price of $70/B (real), CO2 cost of $45/mt, and ROR of 15% (real).
JAF02742..PPT 10 May 9, 2008
 Sources of CO2
CO2 Supply MMcfd**
State/ Province Source
(storage location) (location) Natural Anthropogenic
Texas-Utah-New Mexico- Geologic (Colorado-New Mexico)
Oklahoma Gas Processing (Texas) 1,700 110
Colorado Wyoming
Colorado-Wyoming Gas Processing (Wyoming) - 340
Mississippi Geologic (Mississippi) 700 -
Michigan Gas Processing Plant (Michigan) - 15
Oklahoma Fertilizer Plant (Oklahoma) - 35
Saskatchewan Coal Gasification (North Dakota) - 145

TOTAL 2 400
2,400 645
* Source: 12th Annual CO2 Flooding Conference, Dec. 2006
** MMcfd of CO2 can be converted to million metric tons per year by first multiplying by 365 (days per year) and then dividing by 18.9 * 103 (Mcf per metric ton).

JAF02742..PPT 11 May 9, 2008

 Are
e Higher
g e OOil Recovery
eco e y Efficiencies
c e c es Achievable?
c e ab e

Example Carbonate Field Oil Recovery Efficiencies

80% Jay
S lt Creek
Salt C k
y Factor

Means
Recovery

2003 Recovery

Time

Source: Three ExxonMobil Oil Fields, SPE 88770 (2004)

JAF02742..PPT 12 May 9, 2008

 Means San Andres Unit

Background

Th
The Means
M oilil fifield
ld iis llocated
t d iin th
the
West Texas portion of the Permian
Basin, near Midland (Andrews
County)
Cou ty) Texas.
e as
The field is located along the eastern
edge of the Central Basin Platform.
Th
The field
fi ld was discovered
di d iin 1934
and developed on 40-acres well
spacing in the 1950s. Water
injection
j began
g in 1963,, using g an 80-
acre inverted nine-spot pattern.

A full-scale CO2 miscible flood was initiated in 1983 in the upper zones of
the Means San Andres Unit,
Unit encompassing 8 8,500
500 acres and holding 230
MMB of OOIP.

JAF02742..PPT 13 May 9, 2008

 Means San Andres Unit

Reservoir Properties
Reservoir Depth, ft* 4,400 The Grayburg/San Andres
Area acres
Area, formations are at depths ranging
- Field 14,300 from 4,200 to 4,800 feet.
- Unit 8,500
Significantly, the reservoirs oil is
Net Pay, Ft 29o API with a viscosity of 6 cp
cp.
- Upper San Andres 54 The minimum miscibility pressure
- Total 120(e) (MMP) is 2,000 psi.
Average Porosity, % 9%
The reservoir has a net pay of 54
Average Permeability, md 1
feet in the Upper San Andres Flow
Initial Water Saturation 0.29 Unit (within a 300 foot gross
Initial Formation Volume Factor 1.04 interval), a porosity of 9% and a
Initial Reservoir Pressure, psig 1,850 permeability
bilit off 1 tto 20 md.
d
Current Reservoir Pressure, psig 2,000
Reservoir Temperature, oF 105
Oil Gravity,
G it oAPI 29
Oil Viscosity, cp 6

JAF02742..PPT 14 May 9, 2008

 Means San Andres Unit

CO2-EOR Development
p

The CO2-EOR WAG process was

Means-San Andres implemented as part of an integrated reservoir
Cumulative Oil development plan which included infill drilling
Recovery vs. CO2
Bank Size improved waterflooding, and pattern
2:1 WAG Ratio modification:
205 new producers
158 new injectors
Currently, the project produces 10,000 B/D of
oilil and148,000
d148 000 B/D off water:
t
1,300 B/D (infill/secondary)
8,700 B/D (CO2-EOR)
The initial plan was to inject 250 Bcf of CO2,
equal to 55% HCPV, at a 2:1 WAG ratio.
Latest CO2 injection volumes, assuming
injection of 60 to 70 MMcfd (88% CO2), will be
450 to
t 500 Bcf
B f (~1
( 1 HCPV).
HCPV)
Effect of Solvent Bank Size on Oil Recovery

JAF02742..PPT 15 May 9, 2008

 Means San Andres Unit

Summary
The Means case study is an example of effectively
applying
l i CO2-EOREOR to
t a high
hi h viscosity,
i it low
l API gravity
it oilil
reservoir with an underlying weak aquifer.
An integrated infill drilling and CO2 WAG flood has raised
oil recovery efficiency from about 25% to an expected
50%.
Of the 25% of OOIP increase in recovery efficiency, 15%
OOIP is due to CO2-EOR and 10% OOIP is due to infill
development associated with CO2-EOR.

JAF02742..PPT 16 May 9, 2008

 Salt Creek

Background
g
The Salt Creek Field is located in the
Permian Basin of West Texas (Kent
(
Salt Creek
County, Texas). With 700 million barrels Field
of OOIP, it is one of the major oil fields
located on the northeast end of the
Horseshoe Atoll oil play
play.
The field produces from a
Pennsylvanian-age Canyon Reef
carbonate at a depth of 6
6,300
300 feet
feet.
The 12,100-acre field contains two
limestone build-ups, not in pressure
communication.
Oil production at Salt Creek began in 1950. A centerline waterflood was
started in 1953.
Tertiary
T ti oilil recovery (CO2 WAG) began
b in
i 1993 iin th
the main
i pay zone
(MPZ) and later expanded to the residual oil zone (ROZ) in 2000.

JAF02742..PPT 17 May 9, 2008

 Salt Creek

Reservoir Properties

Reservoir Interval, ft* 6,200-6,700 The Salt Creek Canyon Reef

Area, acres 12,100 formation is a multi
multi-layered
layered
Net Pay, Ft 100
reservoir, with a gross interval
of 250 to 300 feet, thickening
Average Porosity, % 11
to over 600 feet in the northern
A
Average Permeability,
P bilit mdd 20 portion of the main area.
Initial Water Saturation 0.19
The oil is light (39o API, 0.53
Initial Formation Volume Factor 1.2 cp viscosity) with a miscibility
Initial Reservoir Pressure, psig 2,915 pressure off 1,800
1 800 psi.
i

Current Reservoir Pressure, psig 3,150 The field averages 100 feet of
net pay, 11% porosity and 20
Reservoir Temperature, oF 129
md permeability (with 1 to
Oil Gravity, oAPI 39 2,000 md of permeability in
Oil Viscosity, cp 0.53 individual flow units).
*Includes ROZ interval from 6,500 to 6,700.

JAF02742..PPT 18 May 9, 2008

 Salt Creek

CO2-EOR Reservoir Management

Assure reservoir pressure exceeds MMP (of
Schematic of Salt Creek 1,800
, psi)
p ) in all areas of the field.
Reservoir Management Process Assure fluid injection (I) rates balance (or
exceed) fluid withdrawal (W) rates, on both
Step One pattern and field levels.
Step Five Shut-In
Workovers I ffi i
Inefficient Wells
W ll Stimulate wells to improve injectivity; convert
producers to injectors to assure I/W fluid
Simulation WAG Step Two balance.
Models Management
Reservoir Start WAG process when first breakthrough
Management
of CO2 is observed (almost immediately at
Bottom Hole Pressure Salt Creek).
Geologic Model Management
Step Three Reduce CO2 injection and increase the WAG
ratio
ti as th
the flflood
d matures.
t
Production Injection
Profile Logs Profile Logs Hold weekly meetings with field operations
Step Four
staff to update and optimize the WAG
process at a pattern level.

JAF02742..PPT 19 May 9, 2008

 Salt Creek

Production History and Expectations

Actual and Expected Oil Recovery (MMB)

Primary/
y Salt Creek Field Oil Recovery
Total Secondary CO2-EOR F t by
Factor, b Process
P
OOIP 700
35 70
Cum. Recovery (2003) 370 328 42

Thousand Barrels Peer Day

Recovery Factor, Peercent

30 Carbon Dioxide/ 60
Water-Alternating-Gas

Oil Production Raate

EUR 460 340 120 25
And Infill Drilling
50
%OOIP 66% 48% 17% 20 40
Waterflood Optimization
15 30
Primary and secondary oil recovery, has 10 20
Primary Waterflood
produced and proven 336 million barrels
barrels, 5 10
48% of OOIP. 0 0
1950 1960 1970 1980 1990 2000 2010 2020 2030
The CO2-EOR project is expected to Year

recover an additional 120 million barrels, Source: Wilkinson, J.R., ExxonMobil Production Company; et. al., SPE paper 88770,Lessons Learned
from Mature Carbonates for Application to Middle East Fields
Fields, presented at the SPE 11th Abu Dhabi
18% of OOIP. International Petroleum Exhibition & Conference, Abu Dhabi, 10-13 October 2004.

Production is currently 7,700 B/D oil, plus

gas plant liquids.

The EOR project plans to inject about 1,200 Bcf of CO2, equal to 0.8 HCPV for a gross
CO2/oil ratio of 13 Mcf/B.

JAF02742..PPT 20 May 9, 2008

 Salt Creek

Summary

The Salt Creek case study demonstrates that high oil

recovery efficiencies, in excess of 60% of OOIP, are
achievable from a multi-layer, highly heterogeneous
carbonate
ca bo ate reservoir
ese o us
using
g opt
optimized
ed water
ate flooding,
ood g,
infill drilling and CO2-EOR.
The CO2-EOR project is expected to recover 17% of
OOIP (in addition to a high
high, 48% of OOIP with P/S
recovery) at a gross CO2 to oil ratio of 13 Mcf/B and a
net ratio estimated at about 5 Mcf/B.
A formal CO2 flood tracking system (Zonal Allocation
Program) and weekly team meetings are used to alter
CO2 injection volumes, improve vertical conformance
and optimize oil production
production.

JAF02742..PPT 21 May 9, 2008

 Postle CO2-EOR Project
j

The Postle CO2-EOR project,

operated by Whiting Petroleum,
Petroleum covers
an area of 18,000 acres.
CO2 injection, currently at about 120
MMcfd (including recycled CO2), is into
the Morrow Sandstone at 6,200 feet.
CO2 is transported via a 120 mile
TransPetco CO2 pipeline.
The reservoir has light oil (40o API),
low oil viscosity (1 cp), with adequate
porosity (16%) and permeability (35 to
50 md).
Incremental oil production of 6
6,200
200
B/D is up from 4,200 B/D a year ago
and is expected to climb to 8,500 B/D
by 2012.

Net production numbers are in thousands of barrels of oil equivalent per day.
Source: Whiting Petroleum, 2008

JAF02742..PPT 22 May 9, 2008

 Development Plans Postle Field
(($ in Millions))

Source: Whiting Petroleum, 2008

JAF02742..PPT 23 May 9, 2008

 Next
Next Generation
Generation CO2-EOR Technology

Reservoir modeling and selected field tests show

that high oil recovery efficiencies are possible with
innovative applications of CO2-EOR.
So far, except for a handful of cases, the actual
performance of CO2-EOR has been less than optimum
due to:
Geologically complex reservoirs
Limited process control
Insufficient CO2 injection

JAF02742..PPT 24 May 9, 2008

 Impact of Geologic Complexity on CO2-EOR Performance

Inability to target injected CO2 to reservoir strata with high residual

oil saturation.
Hi
Higher
h oilil saturation
t ti portion
ti off reservoir
i CO2 channeling
h li reduced
d d with
ith wellll
is inefficiently swept; workover.

Relative Location of the Water Front Well 27-6 Injection Profile

Layer 1 (High Sor, Low k) 6,350 (Before) (After)

Layer 2 368 Days
Water
(Low Sor, High k)

pth
Dep
478 Days
(Breakthrough)

1839 Days
(Channeling in 6,900 0 20 40 60 80 100 0 20 40 60 80 100
Layer 2)
% Injected Before % Injected After
0 100 200 300
Distance,, ft
Source: Adapted by Advanced Resources Intl from Enhanced Oil Recovery, D.W. Green and G. P. Source: SACROC Unit CO2 Flood: Multidisciplinary Team Improves Reservoir Management and
Willhite, SPE, 1998. Decreases Operating Costs, J.T. Hawkins, et al., SPE Reservoir Engineering, August 1996.

JAF02742..PPT 25 May 9, 2008

 Impact of Limited Process Control on
CO2-EOR Performance

Oil and Water Injected CO2 achieves

only limited contact with
the reservoir due to:
Viscous fingering
Water Gravity
G i override
id
Waterflood Addition of viscosity
(High Mobility Ratio) enhancers would improve
mobility ratio and reservoir
Oil and Water
contact.
y
Polymer
In Water

Water

Viscosity Enhanced Flood

(Improved Mobility Ratio) Source: Adapted by Advanced Resources Intl from Enhanced
Oil Recovery, D.W. Green and G. P. Willhite, SPE, 1998.
JAF02742..PPT 26 May 9, 2008
 Impact of Limited Pressure Control on
CO2-EOR Performance
SACROC Unit 1992 Pressure Contour Map.
Analysis of past CO2
fl d also
floods l shows
h that,
th t in
i
many cases, the CO2-EOR
project was operated below
miscibility
yppressure in
positions of the reservoir.
This was caused by low
well operating pressures, too
few injection wells, and failure
to maintain a favorable fluid
balance.

Crosshatch shading indicates areas below MMP (2(2,300

300 psig) and solid
shading indicates areas below bubblepoint pressure (1,850 psig).

JAF02742..PPT 27 May 9, 2008

 Impact of Insufficient CO2 Injection on
CO2-EOR Performance
Because of high CO2 costs and lack of process control, most
older CO2 floods used too little CO2.

Sweep Efficiency in Miscible Flooding Injected CO2 vs Oil Recovery

1.0
Means (San Andres) @ 2:1 WAG Ratio
0.9 25

covery - % OOIP
0.8
Efficiency, EA

20 0.8 HCPV
0.7

0.6 HCPV
0.6
15
Sweep E

Incremental Tertiary Rec

05
0.5 V pD
0.4 HCPV
V

5.0
pD
at

0.4
B

3.0
10
.T.

2.0 0.2 HCPV

vs

0.3
.M

1.5
1.0
0.2 0.6 5
0.2
0.1
0.1

0 0
0 0.2 0.5 1 2 5 10 20 50 100 200 500 1000
0 10 20 30 40 50
Mobility Ratio, M
Years
Note: VpD is displaceable fluid pore volumes of CO2 injected.
Source: Claridge, E.L., Prediction of Recovery in Unstable Miscible Source: SPE 24928 (1992)
Displacement, SPE (April 1972).

JAF02742..PPT 28 May 9, 2008

 Next
Next Generation
Generation CO2-EOR Technology

Over coming these technical barriers requires

next generation CO2-EOR technology:

IInnovative
ti Flood
Fl d Design
D i and d Well
W ll Placement.
Pl t Adding
Addi h horizontal
i t l
production wells and vertical CO2 injection wells, enabling CO2 to contact
residual oil from poorly swept portions of the reservoir.
Viscosity and Miscibility Enhancement. Adding mobility control with
viscosity enhancers and lowering MMP with miscibility enhancers.
Increased Volume of CO2 Injection. Injecting up to 1.5 HCPV of CO2.
Flood Performance Diagnostics
g and Control. Fullyy staffed technical
team. Uses instrumented observation wells and downhole sensors to
monitor progress. Conducts periodic 4-D seismic and pressure plus zone-
by-zone flow tests (among others) to manage and control the CO2 flood.

JAF02742..PPT 29 May 9, 2008

 Game
Game Changer
Changer CO2-EOR Technology

The DOE report, Evaluating

g the Potential for Game Changer
g
Improvements in Oil Recovery Efficiency from CO2-Enhanced Oil
Recovery:

R i
Reviews performance
f off pastt CO2-EOR
EOR floods.
fl d
Sets forth theoretically and scientifically possible
advances in technology for CO2-EOR.
Examines how much game changer CO2-EOR
technology would increase oil recovery and CO2
storage capacity.

Available on the U.S. DOE web site.

http://www.fe.doe.gov/programs/oilgas/publications/eor_co
2/G
2/Game_Changer_Document.pdf
Ch D t df

JAF02742..PPT 30 May 9, 2008

 Domestic Oil Resources Technically Recoverable
w/Next
/N t G
Generation
ti CO2-EOR

Next
e t Ge
Generation
e at o CO2-EOR O would
ou d significantly
s g ca t y
improve domestic oil recovery efficiency.

Technically Recoverable
Favorable
Basin OOIP Reservoirs State-of-the-Art Next Generation
Studies (BBbls) (#) (BBbls) (BBbls)

Six Basins* 309 553 43.3 83.7

Eleven Basins
Basins** 596 1 111
1,111 88 1
88.1 ?
*Evaluating the Potential for Game Changer Improvements in Oil Recovery Efficiency from CO2 Enhanced Oil Recovery, Advanced
Resources International, report prepared for the U.S. DOE, Office of Oil and Natural Gas, Office of Fossil Energy, August 2005.
http://www.fe.doe.gov/programs/oilgas/eor/Game_Changer_Oil_Recovery_Efficiency.html.
**Storing CO2 with Enhanced Oil Recovery Advanced Resources International, report prepared for U.S. DOE/NETL, Office of Systems,
Analyses and Planning, DOE/NETL-402/1312/02-07-08, February 7, 2008. http://www.netl.doe.gov/energy-
analyses/pubs/Storing%20CO2%20w%20EOR_FINAL.pdf.

JAF02742..PPT 31 May 9, 2008

 Integrating CO2-EOR and CO2 Storage

Expanding CO2 Storage Capacity: A Case Study. Large Gulf

C
Coast
t oilil reservoir
i with
ith 340 million
illi b barrels
l (OOIP) iin th
the main
i pay zone.

Primary/Secondary Oil Recovery: 153 million barrels (45% of OOIP)

Main Pay Zone:
Depth - - 14,000 feet Net Pay - - 325 feet
Oil Gravity - - 33oAPI Initial Pressure - - 6,620 psi
Porosity - - 29% Miscibility Pressure - - 3,250 psi

Another 100 million barrels ((OIP)) in the underlying

y g 130 feet of
residual oil zone and an underlying saline reservoir 195 feet thick.

Theoretical CO2 storage capacity: 2,710 Bcf (143 million tonnes)

JAF02742..PPT 32 May 9, 2008

 Integrating CO2-EOR Storage

First, this Gulf Coast oil reservoir is produced using state-of-

the-art CO2-EOR project design - - vertical wells, 1 HCPV of CO2
(purchased and recycled CO2), and a 1:1 WAG.
Next, this Gulf Coast oil reservoir is produced using next
Next next
generation CO2-storage and CO2-EOR project design.

Gravity-stable vertical CO2 injection with horizontal wells

Gravity-stable, wells.
Targeting the main pay zone, plus the transition/residual oil
zone and the underlying saline aquifer.
Injecting continuous CO2 (no water) and continuing to inject
CO2 after completion of oil recovery.

JAF02742..PPT 33 May 9, 2008

 Integrating CO2-EOR and CO2 Storage (Contd)

CO2 Source
Oil to Production Well
Market

CO2
Injection

CO2
Recycled

Swept Area

Current Water Oil Bank Stage #1

Oil Contact
Stage #2
Unswept Area
Original
Water
Oil Contact Stage #3
TZ/ROZ

JAF02742..PPT 34 May 9, 2008 Saline Reservoir

 Integrating CO2-EOR and CO2 Storage

Integrating CO2-EOR and CO2 Sequestration shows that much more

CO2 can be stored,, making
g the additional oil produced
p GREEN OIL*.

State of the Art Next Generation

(millions) EOR Seq
Seq. Total

CO2 Storage (tonnes) 19 76 33 109

Storage Capacity Utilization 13% 52% 24% 76%

Oil Recovery (barrels) 64 180 - 180

% Carbon Neutral ((Green Oil)) 70% 100% - 160%

*Green Oil means that more CO2 is injected and stored underground than the volume of CO2 contained in the
produced oil, once burned.

JAF02742..PPT 35 May 9, 2008

 Weyburn Enhanced Oil Recovery Project
(An Operating Project Maximizing Oil Recovery and CO2 Storage)

Largest CO2 EOR project in Canada:

OOIP 1.4 Bbbls
155 Mbbls incremental
Outstanding EOR response
Worlds largest geological CO2
sequestration
q project
p j
2.4 MMt/year (current)
7 MMt to date
Canada Regina
23 MMt with EOR
Weyburn 55 MMt with
ith EOR/
EOR/sequestration
t ti
USA

Saskatchewan Canada Manitoba

USA

Montana North Dakota

Beulah
CO2
Source: EnCana, 2005

JAF02742..PPT 36 May 9, 2008

 Summary
1 CO2 enhanced oil recovery
1. recovery, while still an
emerging industry, has the potential to add
significant volumes of future oil supply, in the
U.S. and worldwide.
2. Thirty years of experience shows that CO2-EOR
is a technically sophisticated and challenging
process, but one that can be successful if
managed and controlled, not just operated.
3. Next Generation CO2-EOR technologies,
incorporating scientifically possible but not yet
f ll d
fully developed
l d advances,
d could
ld significantly
i ifi tl
increase oil recovery efficiency.

JAF02742..PPT 37 May 9, 2008

 Summary (Contd)
4 Wide
4. Wide-scale
scale application of CO2-EOR
EOR is constrained by
lack of sufficient EOR-Ready CO2 supplies. A
mutually beneficial link exists between CO2-EOR and
new industrial sources of CO2.
5. Under a carbon constrained world, productively
using industrial CO2 emissions for CO2-EOR will
become a winning strategy.

JAF02742..PPT 38 May 9, 2008