Maintaining Oil Production from Marginal Fields A Review of the Department of Energy's Reservoir Class Program (1996) / Chapter Skim
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1 BACKGROUND ON RESERVOIR CLASS PROGRAM
1 BACKGROUND ON RESERVOIR CLASS PROGRAM
Pages 5-16
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From page 5... ...
Maintaining a viable domestic supply of oil and natural gas is important to the United States for both economic and strategic reasons. Income generated by the domestic oil and gas industry fuels the economy, creates jobs, and generates federal revenues from bonuses, leases, and royalties from exploration and production on offshore and onshore federal lands.1 Domestic production also decreases U
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The Reservoir Class Field Demonstration Program, hereafter referred to as the Reservoir Class Program, was initiated in 1992 as part of a broad DOE effort to counter the continuing drop in domestic oil productions and to slow the abandonment, because of unfavorable economics, of wells in "mature" fields that typically still contain 60 to 70 percent of the original oil in place (OOIP) .6 Of this remaining oil, approximately 32 percent (113 Bbbl; 21 percent of OOIP)
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According to a study by Grabhorn (1995) , "The return to the government in form of taxes generated from this project alone is probably more than enough to pay for the entire Class 1 field demonstration program".9 As required by the technology transfer component of the Reservoir Class Program, the Lomax Exploration Company has published papers and held workshops about its project.
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From page 8... ...
Classes 1, 2, and 3 (Fluvial Dominated Delta, Shallow Shelf Carbonate, and Slope and Basin Clastic Reservoirs, respectively) are thought to include the reservoir types with substantial resources from which oil recovery has historically been least efficient.
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Channel Splay Levee Floodplain fill DELTAIC Distributary Distributary mouth bar channel 9 I nterdistributary bay FIGURE 1.1 Schematic block diagram illustrating depositional model for fluvial (river) dominated deltaic reservoirs, which correspond to Class 1 of the Reservoir Class Program.
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From page 10... ...
An implicit tenet of the Reservoir Class Program is that the demonstration of these technologies is unlikely to occur under current and projected oil prices and in a time frame that can substantially reduce field abandonments without the economic boost and risk sharing provided by program funding. Technology Transfer In order for the Reservoir Class Program to achieve its overall objectives, the economically sound and effective technologies demonstrated in the projects must be effectively transferred throughout the oil industry.
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problems. DOE has made technology transfer a key component of each of the Reservoir Class Program projects.
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From page 12... ...
MAINTAINING OIL PRODUCTION FROM MARGINAL FIELDS Am:,, anal E A (D m E IL I Z .5 Z `` Q O iL on ~ m .O U)
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From page 15... ...
BACKGROUND ON RESERVOIR CLASS PROGRAM TABLE 1.1 Reservoir Class Program Budget (thousands of dollars) 15 Cost to Cost to Total Percent DOE Class DOE Participants Cost Funding 1 43,258 54,667 97,925 44% 2 36,681 49,021 85,702 43% 3 36,757 49,003 85,760 43% Total 116,696 152,691 269,387 43% Source: Department of Energy
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