Carbon dioxide pact signed for New Mexico EOR project

By OGJ editors
HOUSTON, Apr. 20
-- A Houston operator plans to buy a 5-year supply of carbon dioxide for an enhanced oil recovery project in Milnesand San Andres field, Roosevelt County, NM.

First CO2 would be delivered to the field by August 2012 through a 25-mile pipeline that the operator, Enhanced Oil Resources Inc., would build from the existing Cortez pipeline that transports CO2 from Colorado to the Permian basin.

EOR Inc. is under contract to buy 27.4 bcf of CO2 from Kinder Morgan CO2 Co. LP at market price. Projected oil recovery from CO2 injection on 3,000 acres, based on a completed 12-month pilot project, is 5.31 million bbl of proved and probable reserves and 8 million bbl if possible reserves were recovered.

EOR Inc. controls 5,600 acres in the 6,000-acre field. The 3,000-acre Phase 1 project is modeled to include as many as 89 producing wells and 64 injectors. Phase 1 peak oil production at the 2P level is expected to reach 2,200 b/d of oil within 3 years of the start of injection.

Before injecting CO2, EOR Inc. will conduct a drilling program to reduce the current 40-acre well spacing to 20 acres and possibly to 10 acres later. This infill drilling is expected to raise primary recovery, increase daily production, and provide a better conduit between producers and injectors.

Full development of the 5,600 acres could require as many as 140 producers to recover up to 14 million bbl of proved, probable, and possible reserves. The company hopes to double Milnesand oil production to 1,000 b/d by yearend.

EOR Inc. said, “Our CO2 pilot result has confirmed our expectations that considerable value can be generated at Milnesand and by analogy, at our adjacent 18,000-acre Chaveroo field by the use of CO2 flooding.”

Related Articles

Kinder Morgan to acquire Hiland Partners for $3 billion

01/22/2015 Kinder Morgan Inc. (KMI) has agreed to acquire Hiland Partners from founder Harold Hamm and certain Hamm family trusts for $3 billion, including th...

Eagle Ford economic boost jumps to $87 billion

12/12/2014 The Texas Eagle Ford shale supported more than 155,000 full-time equivalent jobs and provided more than $2.2 billion in revenue for local governmen...

KMI executes $71-billion consolidation purchase

08/18/2014 Kinder Morgan Inc. (KMI) reported it will acquire all of the outstanding equity securities of Kinder Morgan Energy Partners LP (KMEP), Kinder Morga...

KMI executes $71-billion consolidation purchase

08/11/2014 Kinder Morgan Inc. (KMI), Kinder Morgan Energy Partners LP (KMEP), Kinder Morgan Management LLC (KMR), and El Paso Pipeline Partners LP reported th...

KMEP plans additional expansion to KMCC pipeline

08/05/2014 Kinder Morgan Energy Partners LP (KMEP) has entered into a long-term transportation agreement with Republic Midstream Marketing LLC to build an int...

Imperial, KMEP form Edmonton crude rail terminal JV

12/26/2013 Kinder Morgan Energy Partners LP and Imperial Oil have formed a 50-50 joint venture to build a crude oil rail-loading terminal in Strathcona County...

Anadarko to move Eagle Ford production on KMCC-Double Eagle

12/26/2013 Anadarko Petroleum Corp. has signed a long-term agreement with Kinder Morgan Crude & Condensate LLC and Double Eagle Pipeline LLC, a 50/50-join...

KMEP to build Utica-Windsor NGL pipeline

12/18/2013 Kinder Morgan Energy Partners LP subsidiary Kinder Morgan Cochin LLC signed a letter of intent with Nova Chemicals Corp. to develop a 210-mile, 10-...

KMEP reports successful TGP open season

12/17/2013 Kinder Morgan Energy Partners LP subsidiary Tennessee Gas Pipeline Co. LLC (TGP) has completed a successful open season for 500,000 dth/day of incr...
White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts

On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected