DOE POISED FOR IMPROVED RECOVERY PROGRAM

Aug. 19, 1991
The Department of Energy is preparing to begin field demonstrations of techniques to maintain production from aging U.S. oil reservoirs. DOE asked for comments by Sept. 6 on draft documents that would invite private companies to demonstrate improved oil recovery technologies. The department will conduct a hearing on the draft "program opportunity notices" Aug. 27 in the Sheraton Grand Hotel at Dallas Fort Worth International Airport. It plans to issue the formal proposals about Oct. 1 and

The Department of Energy is preparing to begin field demonstrations of techniques to maintain production from aging U.S. oil reservoirs.

DOE asked for comments by Sept. 6 on draft documents that would invite private companies to demonstrate improved oil recovery technologies.

The department will conduct a hearing on the draft "program opportunity notices" Aug. 27 in the Sheraton Grand Hotel at Dallas Fort Worth International Airport. It plans to issue the formal proposals about Oct. 1 and select the projects about April 1992.

Copies of the notices can be obtained from DOE's Pittsburgh, Pa., Energy Technology Center.

DOE said more than three fourths of the U.S. oil resource base could be lost by 2005 if the present 17,000 wells/year abandonment rate continues, depending on future oil prices.

Earlier this year, after screening more than 2,000 U.S. oil reservoirs, DOE selected "fluvial dominated deltaic reservoirs" as its first target for field demonstrations.

DOE said many fields in that reservoir class, present in at least 11 states, face abandonment in the next few years although they still contain much oil.

PLANNED PROGRAMS

One DOE program will demonstrate near term commercial techniques that can be applied within the next 5 years to prevent abandonment. Some producers may be using these methods, and DOE hopes to promote wider applications.

DOE plans to fund about 10 such projects at about $1 million each. The minimum level of private sector funding has not been decided. The projects would run 3-4 years.

The second program will focus on midterm methods that attempt to maximize oil recovery from the reservoirs. Once demonstrated, those improved techniques could be in commercial use in the late 1990s.

DOE will fund about four projects at $5-10 million each, while private sponsors will contribute at least 20% of the cost. The projects are expected to take 5-6 years to complete.

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