Enhanced Oil Recovery (EOR) Market Forecast 2014-2024

Prospects for Top Companies in Thermal, Gas and Chemical Production

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Contents 1. Report Overview 1.1 Global Enhanced Oil Recovery (EOR) Market Overview 1.2 Global Chemical EOR Market Segmentation 1.3 Why You Should Read This Report 1.4 How This Report Delivers 1.5 Key Questions Answered by This Analytical Report Include: 1.6 Who is This Report For? 1.7 EOR Market Definition 1.8 Methodology 1.9 Frequently Asked Questions (FAQ) 1.10 Associated Visiongain Reports 1.11 About Visiongain

2. Introduction to the Enhanced Oil Recovery Market 2.1 How is the Enhanced Oil Recovery (EOR) Market Structured?

2.1.1 Primary Recovery 2.1.2 Secondary Recovery 2.1.3 Tertiary Recovery

2.2 Thermal EOR Processes 2.2.1 Steam Injection

2.2.1.1 Steam Flooding 2.2.1.2 Cyclic Steam Stimulation (CSS)

2.2.2 Steam Assisted Gravity Drainage (SAGD) 2.2.3 Small-Scale Commercial EOR Technologies

2.2.3.1 In-situ Combustion 2.2.3.2 Thermally Assisted Gas Oil Gravity Drainage (TAGOGD) 2.2.3.3 Thermal Assisted Gravity Drainage 2.2.3.4 Toe-to-Heel Air Injection (THAI®) 2.2.3.5 Solar EOR 2.2.3.6 Electro-Thermal Dynamic Stripping Process (ET-DSP™) 2.2.3.7 Synchronized Thermal Additional Recovery (STAR)

2.2.4 Other Thermal EOR Technologies 2.2.4.1 Expanding Solvent Steam Assisted Gravity Drainage (ES-SAGD) 2.2.4.2 Steam and Gas Push (SAGP) 2.2.4.3 Controlled Atmospheric Pressure Resin Infusion (CAPRI) 2.2.4.4 Combustion Overhead Gravity Drainage (COGD)

2.3 Gas EOR Processes 2.3.1 Carbon Dioxide Injection 2.3.2 Nitrogen Injection 2.3.3 Natural Gas Injection

2.4 Chemical EOR Processes 2.4.1 Polymer Flooding 2.4.2 Surfactant Flooding 2.4.3 Alkaline Flooding 2.4.4 Micellar Flooding

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Contents 3. The Global Enhanced Oil Recovery Market 3.1 Global EOR Market Forecast 2013-2023 3.2 Global EOR Market Analysis 3.3 Drivers and Restraints in the EOR Market

3.3.1 Drivers in the EOR Market 3.3.1.1 Increasing Demand for Oil 3.3.1.2 The Price of Oil 3.3.1.3 Ageing Oil fields 3.3.1.4 CO2 Reduction Strategies 3.3.1.5 Unconventional Oil

3.3.2 Restraints in the EOR Market 3.3.2.1 Global Economic Concerns 3.3.2.2 Difficulties with Offshore Implementation 3.3.2.3 Inconsistent Permeability of Carbonate Geologies 3.3.2.4 Unproven Nature of Some Technologies

4. The Enhanced Oil Recovery Submarket Forecasts 2013-2023 4.1 The Thermal Oil Sands EOR Submarket Forecast 2014-2024

4.1.1 Current and Future In-Situ Oil Sands Production 4.1.2 The Economics of Thermal Production from Oil Sands 4.1.3 Regulatory Climate 4.1.4 New and Alternative Transportation Solutions 4.1.5 Narrowing Price Differential Between WTI and WCS 4.1.6 Slowing Foreign Investment 4.1.7 High Water Demand

4.2 The Thermal Heavy Oil EOR Submarket Forecast 2014-2024 4.2.1 Heavy Oil Potential 4.2.2 Global Heavy Oil Resources 4.2.3 Current and Future Growth Areas 4.2.4 Potential Restraints on the Thermal Steam Heavy Oil Market

4.3 The CO2 EOR Submarket Forecast 2014-2024 4.3.1 Major Costs Involved with CO2 EOR Operations 4.3.2 The Sourcing of Carbon Dioxide 4.3.3 Current and Future Areas of Growth 4.3.4 High Costs and Limited Financial Incentives

4.4 The ‘Other Gas’ EOR Submarket Forecast 2014-2024 4.4.1 Current Areas of High Production

4.5 The Chemical EOR Submarket Forecast 2014-2024 4.5.1 Improving Polymers and Surfactants 4.5.2 Current Areas of High Production 4.5.3 The Current Types of Chemical EOR Projects Globally 4.5.4 Future Geographical and Technological Areas of Growth 4.5.5 Potential Challenges for Chemical EOR: Costs, Timing and Regulation

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Contents 5. Leading National Enhanced Oil Recovery Market and Submarket Forecasts 2013-2023 5.1 The Canadian EOR Market and Submarkets Forecast 2014-2024

5.1.1 The Canadian EOR Market Overview 5.1.2 Current Projects

5.1.2.1 Thermal Oil Sands Dominating the Canadian EOR Market 5.1.2.2 Thermal Heavy Oil Development Supplementing Oil Sands Growth 5.1.2.3 The Success of the Weyburn-Midale Project 5.1.2.4 Other Operational Canadian CO2 EOR Projects 5.1.2.5 Cenovus’ and CNRL’s Experience with Chemical EOR at Pelican Lake 5.1.2.6 Other Chemical EOR Projects in Canada

5.1.3 Future Outlook 5.1.3.1 New Wave of Oil Sands Projects Anticipated Over the Next Three Years 5.1.3.2 Thermal Heavy Oil to See Strong Growth Over the Next Five Years 5.1.3.3 SaskPower’s Boundary Dam Project to Begin Supplying CO2 to Weyburn in 2014 5.1.3.4 The Alberta Carbon Trunk Line (ACTL) Project to Begin Operations in 2015 5.1.3.5 High CO2 Costs Prohibiting Development 5.1.3.6 Further Opportunities for Chemical EOR within Canada

5.2 The United States EOR Market and Submarkets Forecast 2014-2024 5.2.1 The United States EOR Market Overview

5.2.2 Current Projects 5.2.2.1 California Continues to Dominate Thermal EOR Projects 5.2.2.2 History of CO2 EOR in the United States 5.2.2.3 Where are the CO2 EOR Projects in the US Located? 5.2.2.4 Where is the CO2 Sourced From? 5.2.2.5 Other Gas-Based EOR Projects in the United States 5.2.2.6 Chemical EOR Pilot Projects

5.2.3 Future Outlook 5.2.3.1 Traditional Thermal Production to Continue Decreasing 5.2.3.2 Recent and Upcoming Projects in the US CO2 EOR Market 5.2.3.3 Future Anthropogenic CO2 Sources 5.2.3.4 The Importance of Government Support and Regulations 5.2.3.5 How is the US CO2 EOR Market Likely to Develop over the Next Ten Years? 5.2.3.6 Will the Chemical EOR Market in the US Rebound?

5.3 The Chinese EOR Market and Submarkets Forecast 2014-2024 5.3.1 The Chinese EOR Market Overview 5.3.2 Current Projects

5.3.2.1 China’s Dominant Position in Chemical EOR Production 5.3.2.2 Current Thermal EOR Projects in China 5.3.2.3 Current CO2 EOR Projects

5.3.3 Future Outlook 5.3.3.1 Steady Increases Forecast in Chinese Thermal EOR Market 5.3.3.2 Potential Opportunities for EOR Production Offshore 5.3.3.3 Upcoming Projects in the Chinese CO2 EOR Market 5.3.3.4 China’s High Emissions and the Need for More Oil 5.3.3.5 How Suitable is China’s Geology for CO2 EOR?

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Contents 5.3.3.6 China’s Efforts to Form International Partnerships to Help Promote CO2 EOR 5.3.3.7 The Need for More Government Support for CO2 EOR 5.3.3.8 China to Maintain Its Strong Position in the Chemical EOR Market

5.4 The Venezuelan EOR Market and Submarkets Forecast 2014-2024 5.4.1 The Venezuelan EOR Market Overview 5.4.2 Current Projects 5.4.3 Future Outlook

5.4.3.1 Political Problems and the Need for Investment 5.4.3.2 PDVSA Focusing on Short-Term EOR Production Increases at Mature Fields 5.4.3.3 Long-Term Opportunities for EOR Production in the Orinoco Belt

5.5 The Omani EOR Market and Submarkets Forecast 2014-2024 5.5.1 The Omani EOR Market Overview 5.5.2 Current Projects

5.5.2.1 PDO’s Thermal, Gas and Chemical EOR Projects 5.5.2.2 Occidental’s SAGD Operation at the Mukhaizna Field

5.5.3 Future Outlook 5.5.3.1 PDO’s Ambitious 10-Year EOR Expansion Plans 5.5.3.2 Potential to Expand the Mukhaizna Project and Opportunities in the Neighbouring

Kahmah Reservoir 5.5.3.3 The Prospects for Solar EOR in Oman

5.6 The Indonesian EOR Market and Submarkets Forecast 2014-2024 5.6.1 The Indonesian EOR Market Overview 5.6.2 Current Projects 5.6.3 Future Outlook

5.6.3.1 Upcoming Projects in the Indonesian EOR Market 5.6.3.2 Drivers and Restraints in the Indonesian EOR Market

5.7 The Russian EOR Market and Submarkets Forecast 2014-2024 5.7.1 The Russian EOR Market Overview 5.7.2 Current Projects 5.7.3 Future Outlook

5.8 The Mexican EOR Market and Submarkets Forecast 2014-2024 5.8.1 The Mexican EOR Market Overview 5.8.2 Current Projects 5.8.3 Future Outlook

5.8.3.1 Pemex’s Upcoming EOR Projects 5.8.3.2 The Potential Impact of Mexican Constitutional Changes

5.9 The Brazilian EOR Market and Submarkets Forecast 2014-2024 5.9.1 The Brazilian EOR Market Overview 5.9.2 Current Projects

5.9.2.1 The Lula Project 5.9.3 Future Outlook

5.9.3.1 Brazil’s Growing Opportunities for CO2 EOR 5.9.3.2 Opportunities for Chemical EOR 5.9.3.3 Petrobras’ Stretched Financial Position

5.10 The Norwegian EOR Market and Submarkets Forecast 2014-2024 5.10.1 The Norwegian EOR Market Overview 5.10.2 Current Projects

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Contents 5.10.3 Future Outlook

5.10.3.1 CO2 EOR Development Continues to Move Slowly 5.10.3.2 Opportunities in Chemical and Microbial EOR 5.10.3.3 Drivers and Restraints in the Norwegian EOR Market

5.11 The Indian EOR Market and Submarkets Forecast 2014-2024 5.11.1 The Indian EOR Market Overview 5.11.2 Current Projects

5.11.2.1 Thermal EOR Production at the Balol and Santhal fields 5.11.2.2 Pilot Experience with Chemical EOR

5.11.3 Future Outlook 5.11.3.1 Opportunities for Chemical EOR in India

5.12 The United Kingdom EOR Market and Submarkets Forecast 2014-2024 5.12.1 The United Kingdom EOR Market Overview 5.10.2 Current Projects 5.12.3 Future Outlook

5.12.3.1 Opportunities for Chemical EOR 5.12.3.2 Increasing Interest in North Sea CO2 EOR 5.12.3.3 Potential Projects in the UK CO2 EOR Market 5.12.3.4 Joint Research Ventures and Partnerships Attempting to Promote CO2 EOR in the UK 5.12.3.5 Why is CO2 EOR Failing to Attract the Necessary Support in the UK? 5.12.3.6 Opportunities for Chemical EOR

5.13 The Kuwaiti EOR Market and Submarkets Forecast 2014-2024 5.13.1 The Kuwaiti EOR Market Overview 5.13.2 Current Projects

5.13.2.1 Chevron’s Project in the Wafra Field 5.13.3 Future Outlook

5.13.3.1 KOC to Develop the Lower Fars Heavy Oil Field 5.13.3.2 EOR Opportunities in the Burgan Field 5.13.3.3 Challenges to Meeting Kuwait’s Ambitious Production Goals

5.14 The Saudi Arabian EOR Market and Submarkets Forecast 2014-2024 5.14.1 The Saudi Arabian EOR Market Overview 5.14.2 Current Projects

5.14.2.1 Chevron’s Project in the Wafra Field 5.14.2.2 CO2 EOR Pilot at the Ghawar Field

5.14.3 Future Outlook 5.15 The United Arab Emirates (UAE) EOR Market and Submarkets Forecast 2014-2024

5.15.1 The United Arab Emirates (UAE) EOR Market Overview 5.15.2 Current Projects

5.15.2.1 What are the Factors Driving CO2 EOR Development in the UAE? 5.15.2.2 Progress of the Masdar Initiative

5.15.3 Future Outlook 5.15.3.1 Upcoming Projects in the UAE CO2 EOR Submarket 5.15.3.2 Future Potential of the UAE CO2 EOR Market 5.15.3.3 Are there Opportunities for Chemical EOR in the UAE?

5.16 The Malaysian EOR Market and Submarkets Forecast 2014-2024 5.16.1 The Malaysian EOR Market Overview 5.16.2 Current Projects

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Contents 5.16.2.1 Tapis Project on Course for 2014 Start-up

5.16.3 Future Outlook 5.16.3.1 Petronas Cancels its Angsi CEOR Vessel Project; Seeking Onshore Options 5.16.3.2 Baram Delta / Sabah Projects Moving Ahead 5.16.3.3 Significant Opportunities in the Malaysian EOR Market

5.17 The Rest of the World EOR Market and Submarkets Forecast 2014-2024 5.17.1 The Angolan EOR Market – Chemical EOR at the Dalia Field 5.17.2 The Argentinean EOR Market – Opportunities for Chemical EOR 5.17.3 The Dutch EOR Market – Limited CO2 EOR Potential 5.17.4 The Ecuadorian EOR Market – Companies Bid for EOR Projects 5.17.5 The Egyptian EOR Market – Thermal, CO2 and Chemical Opportunities, though Major Challenges

Remain 5.17.6 The German EOR Market – Profitable Thermal Projects and Chemical EOR Potential 5.17.7 The Kazakh EOR Market – Limited Opportunities 5.17.8 The Qatari EOR Market – Early Stages of EOR Development 5.17.9 The Syrian EOR Market – Political Turmoil Curtailing Opportunities 5.17.10 The Trinidadian EOR Market – Long History of Thermal EOR 5.17.11 The Turkish EOR Market – Continued Production at Bati Raman

6. PEST Analysis of the Enhanced Oil Recovery (EOR) Market

7. Expert Opinion 7.1 BP

7.1.1 Differences Between Bright WaterTM and Polymer Flooding 7.1.2 Regulations on Chemicals in the North Sea 7.1.3 The Advantages of Low Salinity Water Flooding 7.1.4 Defining Enhanced Oil Recovery 7.1.5 The Prospects for Retrofitting Low Sal® to Existing Fields 7.1.6 The Outlook for CO2 EOR in the North Sea 7.1.7 The Importance of Joint Research Partnerships

7.2 GlassPoint 7.2.1 The Current Status of GlassPoint’s Pilot Projects 7.2.2 Prospects for Solar EOR in California and the Gulf Region 7.2.3 Other Potential Regions where Solar EOR can be Applied 7.2.4 Higher Upfront Costs, but Lower Operating Costs 7.2.5 Similarities and Differences Between Solar and Gas 7.2.6 GlassPoint’s Relationship with Royal Dutch Shell 7.2.7 GlassPoint’s Aims for the Future

7.3 Huntsman 7.3.1 Huntsman’s Role in the EOR Market 7.3.2 How Falling Oil Production is Driving the Chemical EOR Market 7.3.3 The Role of Different Chemical EOR Techniques 7.3.4 Can There Be a Greater Deployment of Large-Scale Chemical EOR Projects? 7.3.5 Is Cost an Important Consideration for Chemical EOR? 7.3.6 Growth in the Chemical EOR Market Going Forward

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Contents 8. Leading Companies in the Enhanced Oil Recovery Market 8.1 Leading 10 Companies in the Thermal Oil Sands EOR Market – Market Shares and Profiles

8.1.1 Cenovus 8.1.2 Canadian Natural Resources Limited (CNRL) 8.1.3 China National Offshore Oil Corporation (CNOOC) 8.1.4 ConocoPhillips 8.1.5 Devon Energy 8.1.6 Imperial Oil 8.1.7 MEG Energy 8.1.8 Royal Dutch Shell 8.1.9 Statoil 8.1.10 Suncor Energy

8.2 Leading 10 Companies in the Thermal Heavy Oil EOR Market – Market Shares and Profiles 8.2.1 Aera Energy 8.2.2 Chevron Corporation 8.2.3 CNPC 8.2.4 Husky Energy 8.2.5 Lukoil 8.2.6 Occidental 8.2.7 PDO 8.2.8 PDVSA 8.2.9 Petrobras 8.2.10 Sinopec

8.3 Leading 10 Companies in the CO2 EOR Market – Market Shares and Profiles 8.3.1 Anadarko Petroleum Corporation 8.3.2 BreitBurn Energy Partners 8.3.3 Cenovus 8.3.4 Chevron 8.3.5 Denbury Resources 8.3.6 Hess Corporation 8.3.7 Kinder Morgan 8.3.8 Merit Energy 8.3.9 Occidental Petroleum Corporation 8.3.10 Whiting Petroleum

8.4 Leading 5 Companies in the ‘Other Gas’ EOR Market – Market Shares and Profiles 8.4.1 BP 8.4.2 ConocoPhillips 8.4.3 PDO 8.4.4 PDVSA 8.4.5 Pemex

8.5 Leading 10 Companies in the Chemical EOR Market – Market Shares and Profiles 8.5.1 BlackPearl Resources 8.5.2 Cenovus 8.5.3 Chevron Corporation 8.5.4 China National Offshore Oil Corporation (CNOOC) 8.5.5 CNPC

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Contents 8.5.6 Canadian Natural Resources Limited (CNRL) 8.5.7 Murphy Oil 8.5.8 PDO 8.5.9 Rex Energy 8.5.10 Sinopec

8.6 Other Leading Companies in the EOR Production Market

9. Conclusions & Recommendations 9.1 EOR Market Outlook 9.2 Key Findings in the EOR Market 9.3 Recommendations for the EOR Market

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Enhanced Oil Recovery (EOR) Market Forecast 2014-2024: Prospects for Top Companies in Thermal, Gas and Chemical Production

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Venezuela 166,000 166,000 166,000 170,000 175,000 178,000 182,500 193,000 195,000 195,000 204,000 207,500

AGR (%) 0.0 0.0 2.4 2.9 1.7 2.5 5.8 1.0 0.0 4.6 1.7

United States 132,000 135,500 135,500 136,000 141,500 141,500 150,000 152,000 155,000 155,000 160,000 163,000

AGR (%) 2.7 0.0 0.4 4.0 0.0 6.0 1.3 2.0 0.0 3.2 1.9

Oman 44,000 48,000 56,000 64,000 75,000 86,000 100,000 102,000 105,000 115,000 123,000 132,000

AGR (%) 9.1 16.7 14.3 17.2 14.7 16.3 2.0 2.9 9.5 7.0 7.3

Mexico 40,000 40,000 40,000 40,000 40,000 40,000 40,000 39,500 37,000 36,000 33,500 29,500

AGR (%) 0.0 0.0 0.0 0.0 0.0 0.0 -1.3 -6.3 -2.7 -6.9 -11.9

Canada 22,000 22,132 22,500 24,000 25,000 27,500 29,200 31,000 31,000 32,500 33,000 36,000

AGR (%) 0.6 1.7 6.7 4.2 10.0 6.2 6.2 0.0 4.8 1.5 9.1

Norway 12,000 14,950 15,000 15,000 15,000 15,000 20,000 20,000 20,000 20,000 22,000 22,000

AGR (%) 24.6 0.3 0.0 0.0 0.0 33.3 0.0 0.0 0.0 10.0 0.0

UK 6,000 6,000 6,000 6,000 6,000 6,000 9,500 9,500 9,500 11,000 11,000 11,500

AGR (%) 0.0 0.0 0.0 0.0 0.0 58.3 0.0 0.0 15.8 0.0 4.5

Global 422,000 432,582 441,000 455,000 477,500 494,000 531,200 547,000 552,500 564,500 586,500 601,500

AGR (%) 2.5 1.9 3.2 4.9 3.5 7.5 3.0 1.0 2.2 3.9 2.6

0

50,000

100,000

150,000

200,000

250,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

bpd

Venezuela United States Oman Mexico Canada Norway UK

Source: Visiongain 2014

Source: Visiongain 2014

Table 4.9 Leading National ‘Other Gas’ EOR Submarkets Forecast 2014-2024 (bpd,

AGR %)

Figure 4.18 Leading National ‘Other Gas’ EOR Submarkets Forecast 2014-2024 (bpd)

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Enhanced Oil Recovery (EOR) Market Forecast 2014-2024: Prospects for Top Companies in Thermal, Gas and Chemical Production

2014 2019 2024

Table 5.50, Table 5.51 and Figure 5.50 show visiongain’s production forecast for the Brazilian EOR

submarkets over the next ten years.

Thermal

Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Production (bpd) 21,000 21,560 23,000 23,000 23,500 24,500 25,000 27,000 28,500 28,500 29,000 30,000

AGR (%) 2.7 6.7 0.0 2.2 4.3 2.0 8.0 5.6 0.0 1.8 3.4

Gas

Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Production (bpd) 1,000 1,000 1,200 1,500 1,750 2,500 3,500 5,000 12,000 13,000 16,500 17,000

AGR (%) 0.0 20.0 25.0 16.7 42.9 40.0 42.9 140.0 8.3 26.9 3.0

Chemical

Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Production (bpd) 0 0 100 200 250 550 550 700 850 1,250 1,500 1,750

AGR (%) 100.0 25.0 120.0 0.0 27.3 21.4 47.1 20.0 16.7

2014-2024 2014-2019 2019-2024

Thermal 3.4 3.0 3.7

Gas 32.8 28.5 37.2

Chemical N/A N/A 26.0

0.7%

0.6% 0.8%

Source: Visiongain 2014

Source: Visiongain 2014

Source: Visiongain 2014

Figure 5.49 Brazilian EOR Market Share Forecast 2014, 2019 and 2024 (% Share)

Table 5.50 Brazilian EOR Submarket Forecast (Thermal, Gas and Chemical) 2014-

2024 (bpd, AGR %))

Table 5.51 Brazilian EOR Submarkets CAGR (%) Forecast

(Thermal, Gas and Chemical) 2014-2014, 2014-2019 and

2019-2024

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Enhanced Oil Recovery (EOR) Market Forecast 2014-2024: Prospects for Top Companies in Thermal, Gas and Chemical Production 7. Expert Opinion

7.1 BP Andrew Cockin is Technology Innovation Leader at BP’s Enhanced Oil Recovery technology

flagship team. The two most prominent technologies being deployed at present are Low Salinity

(LoSal® EOR) and Bright Water™. Visiongain spoke to Mr. Cockin in May 2014 and would like to

thank him for his valuable insight.

Visiongain: Can you tell me a little bit about your background at BP in the EOR market?

Andrew Cockin: I started getting involved in the EOR market in the mid-80s when we looked at

CO2 injection on the Miller field before Miller was brought on stream. After that I moved to Alaska to

work on the Prudhoe Bay miscible gas project soon after its startup. I then came back to the UK

and became involved with Wytch Farm and Ula, and to a much lesser extent Magnus; I

subsequently took over looking after the reservoir engineering section here in Sunbury, before

becoming director of Pushing Reservoir Limits™, which was the previous name of the EOR team,

developing the LoSal® EOR and Bright Water™ technologies, and have been involved with the

team in varying roles, ever since.

7.1.1 Differences Between Bright WaterTM and Polymer Flooding Visiongain: As far as I understand it, BP has been working on Bright Water™ since 1997 and it’s a

technology now being used in a number of countries. What are the essential differences between

Bright Water™ and conventional chemical EOR technologies, such as polymer flooding?

Andrew Cockin: Polymer flooding is a continuous process, so you potentially put polymer into the

well for 10, perhaps 20, years in order to improve the mobility contrast between the injection water

and the oil. Bright Water™ is a very different process, so although it is a polymer, it is not a

polymer project in the conventional sense. You put your Bright Water™ particles in as a dose

treatment, which may take 7-10 days to put it into an injection well, then it moves along with the

water that is being injected and is not active for quite a while. Then at some point it pops and thus

becomes active and creates additional resistance to the flow; but it’s a local phenomenon, it’s not

happening at the water-oil interface. It is intended to divert the flow to unswept parts on the

reservoir. So it’s a very different mechanism to conventional polymer flooding.

Visiongain: Does it require different reservoir characteristics to those required for polymer

flooding?

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Enhanced Oil Recovery (EOR) Market Forecast 2014-2024: Prospects for Top Companies in Thermal, Gas and Chemical Production 8.1.1 Cenovus

Headquarters Calgary, Alberta, Canada

Employees 5,000

Stock Exchange Toronto Stock Exchange: CVE

Current Thermal Oil Sands EOR Production (bpd)

108,300

Current Thermal Oil Sands EOR Market Share (%)

11.7%

Market Rank 5th

Cenovus has a strong position within the oil sands market with its sizeable operations in

Athabasca, Alberta. The company has an operating share in projects that together produce over

250,000 bpd and has plans to add several hundred thousand bpd over the forecast period. In

addition to its oil sands operations, Cenovus has a 50% ownership in two refineries in the United

States, located in Illinois and Texas.

Cenovus has three SAGD projects: Foster Creek, Christina Lake and the Grand Rapids Pilot. The

Foster Creek operation, which is among the best commercial and technical SAGD projects in

Canada, has been in operation for more than 10 years and currently produces 110,000 bpd, while

the Christina Lake operation currently produces 106,000 bpd. Both the projects are 50% owned by

ConocoPhillips.

Cenovus and ConocoPhillips have recently increased the level of production at the Foster Creek

and Christina Lake projects, and there are plans for further production rises for these operations

over the coming decade. The two projects are currently undergoing large-scale expansion which

will see 267,000 bpd of production added in the next four years for a total cost of CAD$4.7 billion.

The two companies are also jointly developing the Narrows Lake property, which is also located

within the South Athabasca region. Construction of the first phase is under way and is expected to

commence production in 2017. Upon completion Narrows Lake phase 1 will produce 45,000 bpd.

Source: Visiongain 2014

Table 8.2 Overview of Cenovus in the Thermal Oil Sands EOR Market:

Headquarters, Employees, Stock Exchange, Current Thermal Oil Sands EOR

Production (bpd), Current Market Share (%)