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Occidental of Elk Hills, Inc.
May 21, 2010
Occidental of Elk Hills, Inc.
May 21, 2010
Oxy CO2 EOR ProjectOxy CO2 EOR Project
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• Oxy CO2 Business
• HECA Project Description
• Oxy CO2 EOR Project Description
• Site Suitability for Sequestration
• Oxy CO2 Business
• HECA Project Description
• Oxy CO2 EOR Project Description
• Site Suitability for Sequestration
OutlineOutline
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CO2 EOR in the United StatesCO2 EOR in the United States
(17)
8 Projects
13,000 Gross Bbls/d
Operators: Merit/Chaparral/Whiting
CO2 Source: Manufacturing
8 Projects
13,000 Gross Bbls/d
Operators: Merit/Chaparral/Whiting
CO2 Source: Manufacturing
Mid-Continent
17 Projects
42,000 Gross Bbls/d
Operators: Denbury
CO2 Source: Natural
Eastern Gulf Coast
20 Projects
39,500 Gross Bbls/d
Operators: Exxon/Anadarko/Merit
CO2 Source: Natural/Manufacturing
Rockies
69 Projects
187,000 Gross Bbls/d
Operators: Various
CO2 Source: Natural
Permian Basin
(17)
8 Projects
13,000 Gross Bbls/d
Operators: Merit/Chaparral/Whiting
CO2 Source: Manufacturing
8 Projects
13,000 Gross Bbls/d
Operators: Merit/Chaparral/Whiting
CO2 Source: Manufacturing
Mid-Continent
17 Projects
42,000 Gross Bbls/d
Operators: Denbury
CO2 Source: Natural
Eastern Gulf Coast
20 Projects
39,500 Gross Bbls/d
Operators: Exxon/Anadarko/Merit
CO2 Source: Natural/Manufacturing
Rockies
69 Projects
187,000 Gross Bbls/d
Operators: Various
CO2 Source: Natural
Permian Basin
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CO2 Floods in the Permian BasinCO2 Floods in the Permian Basin
0
5
10
15
20
25
30
Occide
ntal
XTOChe
vron
Pure R
esource
sApa
che
Conoco
Phillips
Faske
nHes
s
Kinder Morg
anCha
parral
Energ
enExx
onMobil
Georg
e R. B
rown
Great
Wester
nOrla
Petco
Stanbe
rry O
il
Whiting Pet.
0
5
10
15
20
25
30
Occide
ntal
XTOChe
vron
Pure R
esource
sApa
che
Conoco
Phillips
Faske
nHes
s
Kinder Morg
anCha
parral
Energ
enExx
onMobil
Georg
e R. B
rown
Great
Wester
nOrla
Petco
Stanbe
rry O
il
Whiting Pet.
Number of Active Operated CO2 Projects
16 other companies
•• First floods initiated 35 years agoFirst floods initiated 35 years ago
•• Over 60 COOver 60 CO22 floods in Permian Basinfloods in Permian Basin
Oxy transports and injects more CO2 than any other company in the world
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0
20
40
60
80
100
120
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
US
EO
R P
rooj
ects
Note: Based on data obtained from the 2010 O&G Journal bi-annual EOR Survey
CO2 EOR is GrowingCO2 EOR is Growing
COCO22 EOR is a EOR is a proven technology proven technology and is growingand is growing
2009
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Oxy Operated CO2 Projects(Date Started)Oxy Operated CO2 Projects(Date Started)
– North Cross (1972)– GMK South (1982)– Denver Unit (1983)– Central Mallet (1984)– Frazer Unit (1984)– Slaughter Estate (1984)– Wasson ODC (1984)– South Wasson Clfk (1985)– Willard Unit (1986)– South Cross (1988)– Salt Creek Unit (1993)– South Welch Unit (1993)– Cedar Lake Unit (1994)– Elmar Delaware Unit (1994)– Bennett Ranch Unit (1995)
– North Cowden Unit (1995)– Anton Irish Clfk Unit (1997)– Mid Cross (1997)– North Dollarhide Dvn (1997)– West Welch Pilot (1997)– Sharon Ridge Unit (1999)– TSTAR Abo (1999)– Cogdell Unit (2001)– HT Boyd (2001)– North Hobbs Unit (2003)– Levelland Unit (2004)– Igoe Smith Unit (2005)– West RKM (2006)– North West Mallet (2007)
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• Oxy CO2 Business
• HECA Project Description
• Oxy CO2 EOR Project Description
• Site Suitability for Sequestration
• Oxy CO2 Business
• HECA Project Description
• Oxy CO2 EOR Project Description
• Site Suitability for Sequestration
OutlineOutline
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8
HECA Site LocationHECA Site Location
HECA site close to:
• CO2 injection point and geologic storage formation
• Adequate non-potable water supply
• Electric transmission system
Elk Hills Oil Field
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HECA / Oxy Integrated SystemHECA / Oxy Integrated System
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• Oxy CO2 Business
• HECA Project Description
• Oxy CO2 EOR Project Description
• Site Suitability for Sequestration
• Oxy CO2 Business
• HECA Project Description
• Oxy CO2 EOR Project Description
• Site Suitability for Sequestration
OutlineOutline
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Oxy CO2 EOR Project Site LocationSouthern San Joaquin ValleyOxy CO2 EOR Project Site LocationSouthern San Joaquin Valley
0 2 MilesN
NWSNWS
31S31S29R29R
ELK HILLS OIL FIELDLOCATION OF THREE DEEP STEVENS STRUCTURES
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Conceptual Stevens Phased DevelopmentConceptual Stevens Phased Development
31S & NWS Stevens Reservoirs contain:
• 640 active producing wells, 185 active injection wells
• Over 7.5 billion Bbls reservoir pore volume
• Sequestering 20 yrs CO2 off-take from HECA will require less than 1 billion Bbls reservoir pore volume
CO2 EOR Project:
~ 250 Injection Wells/ Patterns
~ 250 New Wells
~ 107 MMCF/d CO2 Injection
~ 15% OOIP Recovery
Backup EOR AreaPrimary EOR Areas
NWS
31S
29R
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HECA / Elk Hills Location MapHECA / Elk Hills Location Map
Central Tank Battery
Reinjection Compression Facility
CO2 Recovery Plant
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DriveWater CO2 Water CO2
MiscibleZone
OilBank
AdditionalOil
Recovery
What is the CO2 Water-Alternating-Gas (WAG) Flood Process?What is the CO2 Water-Alternating-Gas (WAG) Flood Process?
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CO2 EOR PhysicsWater injection (blue) recovers oil in large pores; leaving trapped oil (red) in small pores
CO2 (yellow) dissolves and displaces trapped oil; leaving only heavy ends (brown) in the reservoir.
Frequently, chase water is injected after CO2. In this case, a significant fraction of CO2 is trapped / retained by the injected water.
Waterflood
CO2 Flood
Chase Water
Predictions of CO2 EOR & Trappingvia integrated Reservoir Modeling StudyPredictions of CO2 EOR & Trappingvia integrated Reservoir Modeling Study
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• CO2 EOR Results in Sequestration– During each CO2 injection cycle, 30 – 50%
CO2 is typically unrecoverable and sequestered with each pass through the reservoir
– When field no longerproduces economicoil/gas rates, all wells will be plugged according to regulations,trapping all CO2 in thereservoir
• CO2 EOR Results in Sequestration– During each CO2 injection cycle, 30 – 50%
CO2 is typically unrecoverable and sequestered with each pass through the reservoir
– When field no longerproduces economicoil/gas rates, all wells will be plugged according to regulations,trapping all CO2 in thereservoir
Nexus Between CO2 EOR and CO2 SequestrationNexus Between CO2 EOR and CO2 Sequestration
Source: Metz, B., 2005 Special Report on Carbon Dioxide Capture and Storage, Intergovernmental Panel on Climate Change, Cambridge, England. http://www.ipcc.ch/publications_and_data/publications_and_data_reports_carbon_dioxide.htm.
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Injection
Producing Reservoir
Sequestered
Separation
RecycledCO2 = 137
SuppliedCO2 = 115
TrappedCO2 = 115
Operating & fugitive CO2 = <0.3%
Injected CO2 = 252 Produced
CO2 = 137
•All CO2 data in million metric tons
•Data from Denver Unit CO2 EOR Project
CO2 Material Balance – Closed LoopCO2 Material Balance – Closed Loop
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• CO2 Injection and Recovery Equipment– CO2 Supply System– Satellite Gathering Stations– Infield Gathering and Injection Distribution Pipelines
• Recovered CO2 Purification and Compression– Central Tank Battery Test (CTB)– Reinjection Compression Facility (RCF)– CO2 Recovery Plant (CRP)– Produced Water Injection Plant
• Backup CO2 EOR Injection Facility
• CO2 Injection and Recovery Equipment– CO2 Supply System– Satellite Gathering Stations– Infield Gathering and Injection Distribution Pipelines
• Recovered CO2 Purification and Compression– Central Tank Battery Test (CTB)– Reinjection Compression Facility (RCF)– CO2 Recovery Plant (CRP)– Produced Water Injection Plant
• Backup CO2 EOR Injection Facility
Major Surface Project ComponentsMajor Surface Project Components
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• Oxy CO2 Business
• HECA Project Description
• Oxy CO2 EOR Project Description
• Site Suitability for Sequestration
• Oxy CO2 Business
• HECA Project Description
• Oxy CO2 EOR Project Description
• Site Suitability for Sequestration
OutlineOutline
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• Engineering Study– Reservoir characteristics (porosity, permeability, thickness, area, frac
gradient, temp., press., saturations)
– Reservoir fluid data (gravity, viscosity, quality)
– Casing diagrams all wells (cement fill, cement plugs & evidence no well adversely affects projects)
– Planned drilling & well work to support project (map of all well locations, purpose & unit boundaries)
• Geologic Study– Structural contour map on all injection zones
– Isopachous map of all injection zones
– Geologic cross-section through injection well
– Geophysical logs of all zones & aquifers
• Engineering Study– Reservoir characteristics (porosity, permeability, thickness, area, frac
gradient, temp., press., saturations)
– Reservoir fluid data (gravity, viscosity, quality)
– Casing diagrams all wells (cement fill, cement plugs & evidence no well adversely affects projects)
– Planned drilling & well work to support project (map of all well locations, purpose & unit boundaries)
• Geologic Study– Structural contour map on all injection zones
– Isopachous map of all injection zones
– Geologic cross-section through injection well
– Geophysical logs of all zones & aquifers
Regulatory Requirements – Class II UICRegulatory Requirements – Class II UIC
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• Engineering Study– Original reservoir fluid contacts – Current reservoir pressure differences– Reservoir capacity calculations
• Geologic Study– Cap rock characteristics– Structure defined using sonic imaging– Core analysis– Geochemical analysis
• Measurement, Verification and Reporting Plan Being Developed
• Engineering Study– Original reservoir fluid contacts – Current reservoir pressure differences– Reservoir capacity calculations
• Geologic Study– Cap rock characteristics– Structure defined using sonic imaging– Core analysis– Geochemical analysis
• Measurement, Verification and Reporting Plan Being Developed
Supplements to Class II RequirementsSupplements to Class II Requirements
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Engineering and Geologic UnderstandingEngineering and Geologic Understanding
Fault
Faults Terminating
Above & Below the Reef
Ridge Shale
324-35S
318X-35S
313-2G
Reef Ridge Shale
Confining Zone
N Shale(red line)
Shallow Oil Zone
StevensReservoir
Zone
~~2,450 Wells drilled 2,450 Wells drilled 19981998--20092009
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Elk Hills Stratigraphic SectionElk Hills Stratigraphic Section
PLIOCENE
MIOCENE
ETCHEGOIN
N SHALE
SCALEZ
MONTEREY MCDONALD /DEVILWATER / GOULD
~ 5,000 ft
SHALLOW
OIL ZONE
ESOZ
WSOZ
ANTELOPESHALE-----
STEVENS SST
24z / 26r
MBB
W31S
C / D / PG
N / AN / AN / A
BBB
C / DC / DC / DPGPGPG
AGE FORMATION MEMBER / ZONE RESERVOIR
REEF RIDGEREEF RIDGEUpperUpper
BasalBasal
C4DC4DC4DSHALESSHALESSHALES
C4D
Upper
BasalN / A
B
C / DPG
Reef RidgeReef Ridge
MontereyMonterey
ShalesShales
Elk Hills Stratigraphic SectionElk Hills Stratigraphic Section
CO2TARGET
Geologic Seal
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• Reef Ridge Core Analysis– Mineralogy– Oil Saturation
• Extensive Structural Imaging Data
• Geochemical Analysis– Supports Vertical Isolation
• Reef Ridge Core Analysis– Mineralogy– Oil Saturation
• Extensive Structural Imaging Data
• Geochemical Analysis– Supports Vertical Isolation
Additional Confirmation of ContainmentAdditional Confirmation of Containment
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• Comprehensive knowledge of field history & geology
• Stevens reservoirs are ideal for EOR / sequestration
• Class II UIC permit needed• HECA CO2 sequestration will need to
be measured, verified & reported
• Comprehensive knowledge of field history & geology
• Stevens reservoirs are ideal for EOR / sequestration
• Class II UIC permit needed• HECA CO2 sequestration will need to
be measured, verified & reported
Site Suitability SummarySite Suitability Summary
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