American Oil and Gas Reporter - PBIOS 2014 Official Program Guide - 156

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CO2 supplier investments over the last
decade have included the Century natural
gas processing plant in the Pecos County,
Tx., region of the Permian Basin, whose
first train was completed in late 2010,
with an expansion completed two years
later. Unfortunately, drilling for the CO2rich natural gas in the West Texas overthrust belt of Pecos and Terrell counties
effectively ceased in 2011 in the face of
continued low natural gas prices and the
rewards of increased tight oil drilling in
the Permian.
The plant's 400 million cubic feet a
day total throughput would have provided
an additional CO2 supply of as much as
240 MMcf/d. However, plant volumes
vary, but in September were running at
only 40 percent of capacity.
Kinder Morgan Projects
Additional investments in CO2 supplies
for the Permian Basin include several
projects operated by Kinder Morgan CO2
Company. The first is Kinder Morgan's
expansion at the Yellow Jacket facility,
which is part of the McElmo Dome Field
and facilities in Montezuma County, Co.
In the face of declining pressure in the
CO2 reservoir there, additional surface
compression facilities were needed to reverse the production decline.
In early 2013, Kinder Morgan announced continued drilling at the field in
addition to Yellow Jacket plant upgrades
that likely would entail returning to the
nearly 500 MMcf/d throughput capacity
at the facility. It also will increase the
life of the wells and field production another 20 years. McElmo Dome is producing just more than 1.2 Bcf/d, and new
wells in the northern reaches of Cow
Canyon are being completed.
Kinder Morgan also has brought McElmo Dome's sister, but smaller field, Doe
Canyon, on line. That field was underdeTABLE 1
CO2 Supply Projections
For the Permian Basin
CO2 Supply Source

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McElmo Dome

1,200

Bravo Dome Unit

250

Doe Canyon

200

W. Bravo Dome Unit

Sheep Mountain Area

W. Tx Overthrust Region

100

St. Johns Units

Tx Clean Energy Plant

TOTALS

156 THE AMERICAN OIL & GAS REPORTER

Midyear 2014
(MMcf/d)

1,815

veloped for decades, but was drilled by
year-end 2012 to produce a little more
than 100 MMcf/d. It is being expanded
by another 100 MMcf/d by drilling additional wells and adding booster compression, making the southwestern Colorado
region capable of delivering 1.4 Bcf/d
and perhaps slated to reach 1.5 Bcf/d by
early to mid-2015.
Concurrent with the Doe Canyon and
McElmo Dome field initiatives is an expansion of the Cortez CO2 pipeline, which
brings the supplies to the Permian Basin.
This pipeline was constructed by Shell
Oil in the early 1980s with the capability
to transport well more than 1.0 Bcf/d.
Pump stations were required to enhance
throughput, and the first new pumps were
installed in 2012 to increase capacity to
1.3 Bcf/d. Additional pump stations are
planned as a part of the latest McElmo
Dome and Doe Canyon projects to boost
flow capacity to 1.5 Bcf/d.
Kinder Morgan also has committed
to developing a new field in eastern Arizona and western New Mexico called
the St. Johns Anticline, and has started
the process of permitting the new Lobo
CO2 pipeline to connect the field with
the Cortez Pipeline southeast of the Manzano Mountains in Torrance County, N.M.
Capacities of both are designed to be approximately 200 MMcf/d of CO2.
New Mexico Supplies
The Bravo Dome sources of CO2 supply in northeastern New Mexico include
the Bravo Dome Unit operated by Oxy
USA Inc., the West Bravo Dome Unit
operated by Hess Corporation, and some
scattered leases under development by
Reliant Exploration and Development.
The reservoir is the Permian Tubb
Sandstone at a depth of just more than
2,000 feet, making the bottom-hole pressure less than 900 psi and the CO2 in
gaseous form. The history of the field
shows a "ratcheted" profile indicative of
episodes of active drilling to return the
production to predecline levels.
Total production as of midyear 2014
was 325 MMcf/d from more than 600
wells throughout the region, of which 30
MMcf/d is dedicated to the Postle Field
area in the Oklahoma Panhandle. Some
of the production is dedicated to the merchant market as well, so a good number
for CO2 headed for Permian Basin EOR
from Northeast New Mexico is a little
under 300 MMcf/d.
The Sheep Mountain complex in southcentral Colorado is the remaining source
of geologic CO2 supply for the Permian
Basin. Initial projections had the source
field depleting to uneconomic limits by
2010, but a change of operatorship to

American Oil and Gas Reporter - PBIOS 2014 Official Program Guide

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