Economics of Field Proven Chemical Flooding Technologies

Abstract

Abstract Chemical enhanced oil recovery technologies are field-proven methods that improve overall oil recovery. High oil prices and dropping reserves replacement has stimulated interest in these technologies, particularly for application in mature waterfloods. Depending upon the perspective of investors, the decision to proceed with an oil field project may depend upon projected: Rate of Return, Return on Investment, $/bbl of added reserves, cumulative cash flow, or combinations of these. This paper discusses chemical flooding processes, constraints on application, and presents economic impacts of: injected chemical cost, oil price, chemical concentration, oil recovery, and process time. The alkaline-surfactant-polymer technology is compared with micellar flooding and alkaline-polymer flooding. For example, a typical range of chemical costs per barrel of added oil for an Alkaline-Surfactant-Polymer project would be $3.50/bbl to $12/bbl for oil recoveries ranging from 0.2 PV down to 0.05 PV (or approximately 25% OOIP to 6.25% OOIP). Rate of Return (ROR) and payout time depends upon process rate, or pore volume per year of injection. Chemical flooding places the majority of cost over the first 50% pore volume of injection whereas, oil incremental income is delayed until the developing oil bank reaches production wells. In today's oil price environment of >$40/bbl, chemical flooding technology provides significant financial returns with increased ultimate oil recoveries.