by Grasshopper » Mon 13 Sep 2004, 18:26:05
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I've heard numbers flying around that the recovery % we make today ranges anywhere from 15-20%, to 40-50%, depending on the source I'm reading. Either way, that suggests there's at least double the oil we expect existing, but that we're unable to access.
The range in recovery of original oil in place (OOIP) that you have noticed is due to different reservoir types, drive mechanisms(eg: water - drive, gas-cap drive, solution gas drive). Your uncle is right about ultimate recovery being dependent on price, higher prices will lower the economic limit of any well in barrels per day. At that stage of development, only tiny increments are possible, though. Higher prices will justify spending more on research and exploration, which will result in more discoveries and enhanced recovery techniques. A promising method is CO2 injection, wherby carbon dioxide is injected to maintain pressure in oilfields or displace methane from coalbeds.
some CO2 sequestration projects which will/are being used to enhance oil & gas production in Canada can be found here:
http://www.encana.com/operations/upstre ... stics.html
http://www.nrcan.gc.ca/es/etb/cetc/comb ... cts_e.html
North America, especially the USA, is more thoroughly explored than other parts of the world due to the presence of independent oil companies which compete for the smaller pools that are left. In the last decade, increased competition and western involvement in the former Soviet Union has increased production in many areas.
Horizontal drilling went from experimental to main-stream in just a couple of years. Production rates are generally higher, with resulting higher decline rates, but increased ultimate recovery from oil pools that are drilled up horizontally.
new enhanced recovery projects will increase ultimate recovery a lot, but much of that last 50% will probably stay underground. I have been reading some threads about diminishing returns regarding alternate energy mostly, but that would ultimately apply in oil production, of course.
The consequent price increase resulting from peak oil will tend to intensify exploration and development and thereby increase ultimate recovery, smoothing out the world-wide decline.
{edited for format error - row}