Integrated Reservoir Optimization LLC

DEALING WITH REMAINING RESERVES / GETTING READY FOR CHALLENGING RECOVERY REGIMES Including the giant oilfields of Middle East, easy oil period is over everywhere. Historically drilling new wells and waterflooding, mostly implemented for pressure support, have sustained oil production in most basins. However only those will not be sufficient to arrest the decline anymore; every new barrel of oil will require more effort. How recovery is taking place in all scales throughout the reservoir must be better understood. And then best recovery enhancement scheme should be implemented timely. It is well known most reservoirs are under waterflooding too long. Furthermore, most of those waterflood operations are now managed well. Continuing such operations will make recovering the remaining oil much more challenging and perhaps impossible. Accordingly timing of implementing new recovery scheme is critical. With very gross approximations, it is easy to suggest the followings: for Middle East, it is time to prepare oilfields for EOR, that means improving the management of ongoing waterflooding and being very selective on infills. In the meantime, suitable EOR schemes could be identified with smart field tests. If such efforts done within 2-3 years, and conversion to next recovery scheme kicked off, there is a good chance of extending the life of those giant oilfields with higher recovery factors. If not, considerable reserves could be left unrecoverable. For all other basins, particularly Americas, situation is different, time for dealing with recovery issues have already passed. Looking forward, most of those oilfields must consider implementing a new recovery system as soon as possible. That certainly starts with improving ongoing waterflooding while testing new recovery systems (EOR Pilots) within a year. We are aware sustaining production will be challenging, on the positive note there is no technology barrier to do it right. It is just us to learn to bring recovery concerns into all operational decision this point on. We must learn that once oilfields are mature, "production and recovery" must be optimized simultaneously. It can be done.