Analysis of trends in U.S.A. enhanced oil-recovery projects

Abstract

Current trends in United States enhanced oil-recovery (EOR) projects are analyzed for the period from 1980–1987. The analysis is based on the U.S. Department of Energy (DOE) EOR project data base which contains information on more than 1200 projects. The National Institute for Petroleum and Energy Research (NIPER) keeps this data base up to date and analyzes trends in the data under the provisions of a cooperative agreement with the DOE. The most noticeable trend is in the steady decline in the number of project starts each year since 1981, which corresponds to the steady oil-price decline during that period. Exceptions to this trend are polymer and immiscible carbon dioxide projects which peaked in number of starts in 1983. The trend seems to be toward choosing reservoirs with characteristics well within screening criteria, which makes them lower-risk projects. True field experimentation with the attendant assumption of higher risk is on the decline. Planned projects for 1986 appeared to have reversed the decline in project starts; however, the sharp drop in oil prices caused companies to abandon some projects and postpone others. The new starts were almost always those with a large capital investment already made. Despite the temporary setback, long-term EOR prospects remain good, largely because EOR remains one of the cheapest sources of new oil reserves and could play a key role in maintaining steady oil production through the year 2000.