The Department of Energy has chosen nine more U.S. oil field demonstration projects for federal funding.
The projects will focus on slope and basin clastic reservoirs that produce heavy and light oil.
DOE's data base shows at least 44 billion bbl of crude remain in this type of U.S. reservoir, but only 1.6 billion bbl are proved reserves that can be produced economically with conventional technology.
Newer technology or, in some cases, existing but underused technology might be able to recover as much as 5 billion bbl more oil from such reservoirs. DOE said independents account for more than 40% of the oil produced from these reservoirs.
Six of the projects are in California, including one offshore, two are in Texas, and one in New Mexico. They were among 31 projects submitted for funding (OGJ, July 25, p. 108; Aug. 8, p. 73).
Goal of the program is to find approaches to overcome specific problems hindering oil production.
"Without these new techniques, the possibility exists that many of these fields could be abandoned within the next 5 years," DOE said.
LATEST PROJECTS
The nine latest projects will use a wide variety of techniques, ranging from horizontal wells, some in combination with steam injection, to carbon dioxide injection.
DOE will invest about $38 million in the projects. The federal funds are expected to attract more than $50 million in private or local government funding.
DOE said, "Most of the proposed projects envision teams of producers, service companies, and universities carrying out the projects. In addition to the primary proposer, more than 25 private companies, universities, and other organizations from five states and Canada will join the projects as team members."
The nine projects, the third group of oil field demonstration projects DOE has chosen, brought the number of projects in the program to 33 with a public/private funding commitment of nearly $290 million.
As in the previous two rounds, DOE chose projects involving near term technologies that haven't achieved widespread industry use, as well as more advanced midterm technologies that haven't been tried on commercial scales.
DOE will soon begin negotiations with proposers to define project terms and funding commitments that are required before federal funds can be awarded.
An abstract of each project is available from DOE's Office of Fossil Energy at 202-586-6503 or fax 202-586 5146.
