American Oil and Gas Reporter - PBIOS 2014 Official Program Guide - 167

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CO2 EOR Raises Permian Basin Output
By Al Pickett
Special Correspondent
While conventional and unconventional
drilling continues at a breakneck pace in
the Permian Basin, enhanced oil recovery
using carbon dioxide injection remains
an important part of the region's production
as well-both now and in the long-term
future.
Occidental Petroleum Corporation, the
largest operator in the Permian Basin,
participates in two-thirds of the CO2 EOR
projects in the Permian Basin, operating
31 active CO2 projects in Crossett, Slaughter Field, Welch and Cedar Lake, Wasson
Field, Canyon Reef and other areas.
In addition to boosting oil production,
CO2 EOR has environmental benefits,
according to Vicki Hollub, president of
Occidental Oil and Gas-Americas.
"The CO2 circulates within a closed
loop," she points out. "Over time, virtually
all the injected CO2 becomes safely and
permanently trapped in the underground
oil reservoir."
Another leader in Permian Basin CO2
EOR projects is Kinder Morgan CO2,
which has four separate and unique CO2
EOR units and a fifth test project under
way. The company transports 1.3 billion
cubic feet a day of natural CO2 from the
McElmo Dome and Doe Canyon source
fields in southwestern Colorado into the
Permian Basin through its Cortez pipeline,
notes Darrell Ricketson, vice president
of engineering and operations for the
company's CO2 business unit. The CO2
is used for Kinder Morgan's four units,
and also is sold to third parties.
Robust Growth
Hollub says nearly three-fourths of
Occidental's Permian business unit's oil
production comes from fields that actively
employ CO2 flooding, generating approximately $2 billion a year in free cash
flow for the company.
"Occidental is recognized worldwide
for its expertise in CO2 enhanced oil recovery," she claims. "Our EOR business
is a major focus of our production operations in the Permian Basin. As the largest
producer and industry leader for CO2

flooding in the Permian, Occidental has
seen steady, robust growth in miscible
CO2 EOR production over the past three
decades."
In 2013, Oxy injected more than 650
Bcf of CO2 into oil reservoirs in the Permian Basin, according to Hollub. She
says Occidental has seen CO2 flooding
increase ultimate oil recovery by 10 to
25 percent.
"Much of our success is the result of
extensive automation to maximize throughput performance," Hollub details. "We
have added a CO2 plant control center,
electronic wellhead shutdown devices,
an injection distribution system, and other
features.
"Another success factor has been our
advances in reservoir characterization,
which have improved project prediction,
injection strategies, and pattern development," she adds. "Oxy also has extended
CO2 flooding into residual oil zones and
poor-quality reservoirs. These improvements have led to increased performance,
better recovery potential, and higher production."
Occidental relies on several sources of
CO2, including its Bravo Dome Field in
northeastern New Mexico, and fields in

the southwestern part of the Permian Basin.
"Our Century Plant in Pecos County, Tx.,
further expands Oxy's EOR infrastructure
in the Permian," Hollub mentions.
SACROC Unit
The SACROC Unit in Scurry County,
Tx., was discovered in 1948 and is one
of the largest and oldest oil fields in the
United States using CO2 flooding, says
Kinder Morgan's Ricketson. The first
CO2 flood in the 56,000-acre field was
started by Chevron in 1972.
"When Kinder Morgan acquired the
field (in 2000), it was making 8,100
barrels a day," Ricketson recalls. "We
pushed that by more than 30,000 bbl/d
for a number of years. This year, we are
producing approximately 32,500 bbl/d
as well as about 20,000 barrels of natural
gas liquids each day. The CO2 helps liberate the light ends. We see the composition of natural gas liquids change as an
area matures."
Ricketson says Kinder Morgan is continuing to develop the Canyon Reef formation in SACROC with five-spot, injection-centered patterns, establishing
about 25 patterns each year by drilling
new wells, utilizing existing wellbores,

Nearly three-fourths of Occidental Petroleum Corporation's Permian Basin enhanced oil
recovery business unit's production comes from carbon dioxide flooding, which generates about $2 billion a year of free cash flow for the company. In 2013, Oxy injected more
than 650 billion cubic feet of CO2 into Permian Basin oil reservoirs.

OCTOBER PBIOS 2014 167

American Oil and Gas Reporter - PBIOS 2014 Official Program Guide

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