Enhanced CO2 Recovery at Penn West
Penn West boss Bill Andrew can imagine a day, not too far off, when carbon dioxide (CO2) by–product will be a commodity in high demand
Earlier this year, Penn West became one of a handful of firms that won federal and provincial funding for CO2 miscible flood testing. It got $5 million in tax credits from the province and $5 million in grants from the federal government. The company then put up $10 million itself to get the Pembina pilot running. It’s now been operating since February.
The Pembina field, Canada’s largest conventional light oil pool, is estimated to hold between 5.5 billion and 7.8 billion barrels of production. With tertiary production techniques, Andrew estimates one billion barrels can be recovered. Penn West’s portion of that is about a third.
“The pilot is performing well,” said Andrew, playing his cards close to the chest. “We are getting incremental recovery.”
Eddy Isaacs, managing director of the Alberta Energy Research Institute, also believes that enhanced recovery methods like CO2 miscible flooding will soon be the norm. Typically, primary and secondary production only tap about 30 per cent of a reservoir.
Carbon dioxide miscible flooding has been tested in the U.S. for 30 years, said Isaacs. U.S. experience is that CO2 miscible flooding can average an additional 14 per cent recovery from the reservoir. That may not sound like much, but if costs are controlled, it can add up to big bucks.
“That’s better than leaving 70 per cent,” said Isaacs. “If we increase it just one per cent, that’s a lot of royalties—billions of dollars.”
In addition, there are other public benefits.
“If we can use CO2, then we’re using less water,” said Isaacs. “And instead of emitting the CO2, you’re putting it in the ground. The third benefit is if it can be used for enhanced oil and gas recovery, then that’s energy that we wouldn’t have had otherwise.”
The institute is working with other government agencies to monitor CO2 miscible flood projects, such as Penn West’s at Pembina, to ensure that they are meeting environmental standards.
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