Oxy sees 1-3 billion bbl from Permian floods
Occidental Petroleum Corp. expects to produce 1 billion to 3 billion bbl of additional oil by carbon dioxide enhanced oil recovery in the Permian basin.
By OGJ editors
HOUSTON, May 20 -- Occidental Petroleum Corp. expects to produce 1 billion to 3 billion bbl of additional oil by carbon dioxide enhanced oil recovery in the Permian basin.
The company expects its Permian basin production to grow to 220,000-230,000 boe/d in 2014 from 180,000 boe/d in 2010. Oxy’s oil production accounts for 20% of the basin’s total output.
Of the estimated net 11.9 billion bbl of original oil in place in Oxy-operated CO2 flood projects, the company has produced 4.1 billion bbl. Oxy’s production in the basin comes 60% from CO2 floods, 30% is from waterfloods, and 10% is primary recovery.
A limited supply of CO2 “has impacted Oxy’s Permian area oil production and constrained new projects,” the company said. Nevertheless, the company plans to accelerate development of its current Permian projects via short-term CO2 opportunities, including CO2 produced by Oxy by drilling more wells and by CO2 supplies from methane/CO2 fields.
“Oxy has identified more than 6.2 tcf of CO2 available for its program. In addition, construction is under way at the Century Plant in Pecos County, Tex., to process high-CO2 gas. The plant is expected to begin initial operation in late 2010 and will further increase Oxy’s CO2 supply while providing methane for the marketplace” (OGJ, Dec. 7, 2009, p. 41).
Oxy said it is the basin’s top oil producer and leading operator among more than 1,500 operators and that it holds 2.2 million net acres with more than 2,000 drilling locations.