Enhanced Oil Recovery ( EOR ) describes a set of techniques utilized to exaggeration the amount of oil that can be extracted from unit oil field. Many oil exploration and drilling companies are using EOR techniques to maximize the potential of oil fields both old and new. As our nation ' s seeking for energy independence intensifies, the application of EOR techniques will get taller into an proportionate more commonplace practice for getting as much oil out of the ground as possible.
The United States, and Texas especially, is littered with oil fields that have been drilled, had oil extracted, and then been troglodytic kiss goodbye the field ' s full undeveloped being realized. By the 1990s, as the oil industry ground to a virtual halt, experienced oilmen saying the facund trim of thinkable in shifting their target away from exploring new fields and towards extracting more oil from fields that had prompt been drilled. One exemplification of the power of EOR techniques is the Bite Creek oil field in Wyoming.
In 1978, the Spiciness Creek field was effectual 6. 3 million barrels of oil per year. The number had dropped to 1. 7 million by 2004. Not only had Wyoming ' s statewide oil production been dragged down in the process, significantly affecting the state ' s economy, but the Salt Creek field was expected to be dry by 2020. Enter Anadarko Petroleum Corporation, who utilized an EOR technique known as gas injection to revive the Salt Creek field and almost single - handedly reverse the entire state ' s decline in production.
Not only has Anadarko help to improve Wyoming ' s economy, it has found a handsomely rewarding investment for itself. Anadarko originally viewed the project as profitable when oil prices ranged in the $20 amount per barrel. In July of 2005 oil prices had risen to between $50 and $60 per barrel. In the short time since then, prices have more than doubled. This increase in return on investment is a major part of the reason why oil companies like Anadarko are able to afford the upfront capital expenditures necessary to utilize EOR.
While many Americans and the economy have been hit hard by rising fuel costs, one ancillary benefit of the increase in oil prices has been the additional incentive for oil companies to invest in the development of EOR technology. Many smaller independent oil exploration and oil production management companies are focusing on effective application of the latest innovations in Enhanced Oil Recovery techniques. These companies are joined by none other than the U. S. Department of Energy ( DOE ), which recently announced the development of an EOR program to " enabl e enhanced recovery of the nation ' s stranded oil resources ".
One concern whenever oil drilling and carbon dioxide become the topic is the potential impact expected on the environment. There is reason to believe that the impact could be quite positive, according to a recent analysis conducted by the International Resources Group ( IRG ) studying the effect of climate legislation on the supply of carbon dioxide for EOR. Due to the growing profitability of carbon injection EOR, climate legislation such as the Lieberman - Warner Climate Security Act will, in effect, spur companies to develop more advanced technologies for efficient carbon usage; one example being carbon capture systems. Such policies, which essentially incentivize the capture of industrial carbon dioxide, can serve two purposes: 1 ) assist the U. S. in recovering untapped oil reserves; and 2 ) reduce global warming pollution.
There is little doubt that Enhanced Oil Recovery techniques will pay tremendous dividends for the U. S. in the long - term. The DOE estimates that an additional 240 billion barrels of recoverable oil resources could potentially be generated with full usage of " next generation " carbon dioxide injection EOR. Estimates place the amount of oil still in the ground in the U. S. alone at more than 1 trillion barrels. There really is no telling how much more of that oil will become recoverable as Enhanced Oil Recovery technology continues to evolve.
