Solar Energy For EOR In The Oil Patch; WTI Crude Oil Closes At $107 At Iraqi Refinery Rages

Necessity if the moth of invention, they say.

Rigzone is reporting:

U.S.-based Glass Point Solar Inc.’s solar-powered enhanced oil recovery technology, the Enclosed Trough solar field, completed at the end of January its first year of operation at a field in southern Oman for Petroleum Development Oman (PDO).

The 7 MW pilot project, which began operations in December 2012, generates emission-free steam that feeds into existing thermal enhanced oil recovery operations at the Amal West oil field.

The unit exceeded all the targets set for its first year of operation – while experiencing all kinds of conditions at the site — including above contract energy output and availability, and achieving uptime of 99.8 percent. 

The corrosive atmosphere and sandstorms in the Middle East present unique challenges for the oilfield environment. These challenges have previously made it difficult for solar energy to play a role in such an environment.

Pretty interesting, huh?

Glass Point see potential for their technology in southern California. 

In 2011, Glass Point commissioned the world’s first EOR project at Berry Petroleum’s 21Z lease in Kern County, California, but shifted its focus on deploying its technology in the Middle East due to decline in U.S. natural gas prices due to the shale boom.

However, Glass Point is now in discussions with some operators to deploy its solar EOR technology, thanks to changes in the market and state regulations, John O’Donnell, vice president of business and operations for Glass Point, told Rigzone in an interview.

O’Donnell sees parallels between California and Oman, where it has successfully demonstrated its solar EOR technology. Approximately 45 percent of the crude oil consumed in California is produced in state. About half of California’s oil production comes from thermal EOR. Over 200 MMBtu are used each year to produce steam for EOR operations in California, which accounts for approximately 30 percent of California’s natural gas.

While Glass Point can’t replace 80 percent of the gas used in EOR as it can in Oman, it could replace more than 50 percent of the gas consumed in solar EOR in California under the right economic conditions. Under today’s market conditions, Glass Point’s solar steam cost corresponds to $.50/MMBtu of natural gas. O’Donnell noted that oil producers that adopt solar EOR in California can see an internal rate of return of more than 25 percent.

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Meanwhile, in another part of the desert, Rigzone is reporting the battle for the refinery rages, and oil closes at $107.

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Rigzone reports that Statoil continues to have a run of bad luck hitting a dry hole off-shore Norway. Sort of puts the Bakken in perspective.