US DOE to fund microhole drilling R&D program

June 18, 2004
The US Department of Energy Tuesday announced a $5.2 million research and development program to help commercialize "microhole" technology using portable drilling rigs.

By OGJ editors
WASHINGTON, DC, June 18 -- The US Department of Energy Tuesday announced a $5.2 million research and development program to help commercialize "microhole" technology using portable drilling rigs.

DOE officials said portable rigs could offer environmental and economic advantages because the development "footprint" is smaller. Using microhole technology could also mean that producers can drill for oil faster and safer than today's traditional methods. Researchers will look for ways to drill wells less than 3 in. in diameter.

DOE will contribute a total of $3.7 million toward six new projects; oil service companies will shoulder the remaining $1.4 million cost. DOE's National Energy Technology Laboratory will manage the projects.

The six new projects involve the following companies:

-- Gas Production Specialties, Lafayette, La. DOE said this 8 month project is developing technology to overcome the problems of mature, low-pressure reservoirs that have high amounts of remaining gas by using an artificial lift system to get to the trapped gas. The technology will allow operators, particularly those in the Gulf of Mexico, to reactivate wells that can no longer flow by natural reservoir pressures. US officials predicted the technology will allow operators to extract more reserves out of reservoirs where natural pressure has been depleted by previous production. DOE plans to contribute $210,000 toward the company's research.

-- Stolar Research Corp., Raton, NM. Over an 18 month period, researchers will use radar to pinpoint drill bit location, and bring measurement data to the surface through radio data transmission. DOE will contribute $921,875.

-- Baker Hughes Inc., Houston. DOE will spend $986,000 over 18 months for engineers to design and fabricate a drill bit steering device and a tool that measures the electrical resistivity of the rock. The instruments will be 2 3/8-in. in diameter and will be able to fit into coiled tubing. Development of these tools will provide a modular and effective coiled tubing drilling system that enables higher, more-effective production from existing domestic oil fields.

-- Schlumberger Ltd., Sugar Land, Tex. Researchers will develop and build a microhole coiled tubing drilling rig tailored for shallow oil and gas reservoirs often found in the Lower 48. The rig will be designed to improve the environmental and economic performance of shallow well drilling by using small and purpose-built equipment that is easy to move and fast to mobilize, yet versatile in its application. DOE will spend $1.8 million over 18 months.

-- Western Well Tool Inc., Anaheim, Calif. DOE will spend $645,000 over 14 months on a downhole tractor tool to help transport a drill bit and measurement tools into long (3,000 ft and deeper) sections of horizontal wells. The tractor is expected to cost 25-50% less than conventional drilling methods and allow faster drilling of small-diameter horizontal sections of microboreholes.

-- Bandera Petroleum Exploration Inc. Tulsa. Over a 30 month period, DOE will spend $592,000 for researchers to develop a highly abrasive slurry jetting technique to drill through rock.