So, what’s your recovery factor?
Primary vs Secondary Recovery, a discussion.
Most of you know this but it’s worth a reminder.
Primary production is the process of extracting oil or natural gas from reservoirs that are naturally flowing to the surface or can be pumped to the surface using traditional methods. This is the initial stage of oil and gas production and usually involves drilling a well and completing it to allow the flow of hydrocarbons to the surface.
Secondary recovery, on the other hand, is a method used to increase the production of oil or natural gas from a reservoir after primary production has declined. This is done by injecting fluids, such as water, steam, or gas, into the reservoir to increase the pressure and drive more hydrocarbons to the surface. Secondary recovery is often used in conjunction with primary production and may be followed by tertiary recovery, which is the use of more advanced techniques, such as chemical injection or enhanced oil recovery (EOR), to extract oil and gas from reservoirs.
Generally speaking, for onshore properties, the average recovery factor for enhanced oil recovery (EOR) oil fields depends on various factors, including the type of EOR technique being used, the geology of the reservoir, and the quality of the oil. Some EOR techniques have higher recovery factors than others. For example, the recovery factor for thermal EOR techniques, such as steam injection, can be as high as 35-40%, while the recovery factor for chemical EOR techniques, such as polymer injection, can be in the range of 20-30%. It is important to note that the recovery factor for an EOR project can vary widely, and it is difficult to give a single "average" recovery factor.
Several examples of EOR (enhanced oil recovery) oilfields in the United States include the following:
Kern River Oil Field, California: This oil field uses steam injection as an EOR method to extract heavy oil from the ground.
Prudhoe Bay Oil Field, Alaska: This oil field uses both steam injection and CO2 injection as EOR methods to extract oil from the ground.
Williston Basin, North Dakota: This oil field uses a technique called "frac and hold" as an EOR method, which involves injecting fluids (such as water and chemicals) into the ground to create fractures that allow oil to flow more easily.
Permian Basin, Texas: This oil field uses CO2 injection as an EOR method to extract oil from the ground.
Uinta Basin, Utah: This oil field uses a combination of water flooding and CO2 injection as EOR methods to extract oil from the ground.
In summary, it’s important to know your property. Generally, EOR allows for a prolonged oil recovery life. If you own minerals in an oil field such as the Kern River oil field, it’s important to know that, relative to other primary producing oil fields, this asset will likely outlive non-EOR properties and therefor the ability to negotiate a higher sales price will be relatively easy to negotiate.