Independents plunge into enhanced oil recovery

Journal Article · Mon Oct 19 04:00:00 EDT 1981 · Oil Gas J.; (United States)

OSTI ID:5810131

Petzet, G A

Scores of independent operators have plunged into enhanced oil recovery, a field generally regarded as dominated by major oil companies. Catalyst for the mass entry by independents was a government regulation which allowed operators to release controlled oil to uncontrolled prices to pay part of the cost of enhanced recovery projects. New entries by independents and majors nearly tripled the number of projects under way in the US. Target oil ranges into the billions of barrels. It is too early to tell results from most of the independents field tests. A few independents say they would have tried EOR even without the federal incentive, but many say EOR is not worth their time and money. They say rates of return are much higher with conventional drilling in which technology is known, risks measurable, and time from investment to return is years shorter. The adverse impact of expiration of the EOR incentive regulation is magnified by disincentives in the Windfall Profits Tax. One independent shelved plans for an EOR project in a large Wyoming field because of the combined effects of the excise tax, 10 yr of oil production at lower tier prices, and uncertainty about the technology. Outside of steamflooding, few technically promising projects have been profitable for independents.

• OSTI ID: 5810131
• Journal Information: Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 79:42; ISSN OIGJA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
021000 -- Petroleum-- Legislation & Regulations
ENERGY SOURCES
ENHANCED RECOVERY
FINANCIAL INCENTIVES
FLUID INJECTION
FOSSIL FUELS
FUELS
INDUSTRY
PETROLEUM
PETROLEUM INDUSTRY
PRICING REGULATIONS
RECOVERY
REGULATIONS
STEAM INJECTION
TAXES
WINDFALL PROFITS TAX