DOE grants support gas lift programs

The U.S. Department of Energy has awarded grants to four small producers to help them adapt gas repressurization methods to boost field production. DOE said, "Injecting natural gas or other gases into an oil reservoir to force additional crude oil to production wells is a common practice of major oil companies and large independent producers. "But rarely have smaller companies operating in many of the nation's marginal oil fields adopted the procedure. Economic and technical uncertainties

Aug. 5, 1996

3 min read

The U.S. Department of Energy has awarded grants to four small producers to help them adapt gas repressurization methods to boost field production.

DOE said, "Injecting natural gas or other gases into an oil reservoir to force additional crude oil to production wells is a common practice of major oil companies and large independent producers.

"But rarely have smaller companies operating in many of the nation's marginal oil fields adopted the procedure. Economic and technical uncertainties have been the stumbling blocks."

Scaled-down processes

DOE selected four projects, all with small independents, to carry out field experiments to test scaled-down gas repressurization processes specially adapted for smaller reservoirs.

It will provide $521,000 and require sponsors to match the funding with either cash or in-kind contributions. BDM-Oklahoma Inc., DOE's operator for the National Institute for Petroleum and Energy Research, which selected the projects, will provide engineering and geological assistance and will monitor the projects through June 1997.

DOE said, "Adapting gas repressurization technology to small scale operations involves considerable technical and economic challenges. Processes that make financial sense when applied on a large scale must be significantly redesigned to be economically feasible for smaller reservoirs.

"Before repressurization is common within the independent oil industry, which drills 85% of all of the wells in the U.S., companies must be confident that the redesigned approaches are technically reliable and financially sound."

DOE said the four project sponsors will convey the lessons they learn to other independent producers through field tours and technical presentations.

They will disclose why a specific gas repressurization project was chosen, why the process is compatible with the reservoir architecture and the factors affecting oil recovery, design of the project, start-up methods, operating problems, the oil production response, and the economics of the project.

Project details

Robert Klaeger, Marble Falls, Tex., will receive a $133,000 grant for a cyclic "huff 'n puff" natural gas repressurization project to recover 18° gravity oil from the Olmos sandstone of Taylor-Ina field in Medina County, Tex.

DOE said, "This is the most challenging of the four projects. Several enhanced oil recovery methods have been tried and failed because clays in the reservoir have swelled and blocked the flow of fluids through the reservoir rock. Natural gas injection could overcome the reservoir's sensitivity to fluids.

"In the Taylor-Ina project, several wells will be reworked, more wells drilled, and gas lines installed."

Driver Production Inc., Okmulgee, Okla., will get $115,000 for a flue gas injection project to recover 30° gravity oil on a five-spot pattern in a Dutcher sandstone reservoir of East Edna field in Okmulgee County.

AR&R, Elk City, Kan., will get $140,000 for a project to inject natural gas from shallower coal beds into the Weiser sand of Sorghum Hollow field in Chautauqua County, Kan.

And Hydrogen Generation Inc., Allegany, N.Y., will get $133,000 for a flue gas drive project to recover 43° gravity oil from the Chipmonk sand in the Allegany field in Cattaraugus County, N.Y.

DOE said, "The field, which is near the Pennsylvania/New York state line, has been the site for several unsuccessful enhanced oil recovery projects by both small operators and major oil producers. Most of the field's wells were drilled prior to World War II, and the field has been waterflooded in an attempt to produce additional oil."