Simulation demonstrates economics of minnelusa polymer floods

Journal Article · Mon May 27 04:00:00 EDT 1991 · Oil and Gas Journal; (United States)

OSTI ID:5118530

Hochanadel, S M ^[1]; Schuyler, J R

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1. Tiorco Inc., Englewood, CO (US)

Defining some variables with a probability distribution can establish more precisely the economic value of such projects as polymer flooding in the Minnelusa formation. An enhanced-oil-recovery (EOR) project often presents a difficult investment decision. The substantial risks and performance uncertainties must be carefully weighted against the investment costs. a Monte Carlo simulation model was used to characterize the incremental economics of a Minnelusa polymer flood. The principal questions addressed in this paper are: What is the likelihood of the EOR project being an economic success What is the expected economic benefit of the polymer flood With representative field parameters and price projections, the typical Minnelusa polymer flood was found to have a 93% chance of economic success. The expected monetary value (EMV) for the project is $1.6 million. This expected net gain results from the incremental cost of about $50,000 for additional surface equipment and about $480,000 for chemicals. Although each project must be evaluated on its own merits, these results present a strong case of considering polymer-augmented floods in the Minnelusa.

• OSTI ID: 5118530
• Journal Information: Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 89:21; ISSN 0030-1388; ISSN OIGJA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020300* -- Petroleum-- Drilling & Production
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
COST ESTIMATION
DISPLACEMENT FLUIDS
ECONOMIC ANALYSIS
ECONOMICS
ENHANCED RECOVERY
FLUID INJECTION
FLUIDS
MATHEMATICAL MODELS
MICROEMULSION FLOODING
MISCIBLE-PHASE DISPLACEMENT
OIL WELLS
POLYMERS
RECOVERY
STIMULATION
WELL STIMULATION
WELLS