misterno wrote:I watched this documentary where a well is shown with %99 water and %1 oil. The well was still producing so I assume it was profitable.
How is this possible?
http://www.eco-tube.com/v/KNOW/Peak_Oil ... ggett.aspx
pstarr wrote:It's simple misterno. It is about energy return on energy invested. EROEI.
If the oil is near the surface or there is still pressure left in the reservoir (though I doubt it at 99% water cut) then the energy (calories) to needed to process the oil (extract it from the ground, remove the water, refine it into gasoline, etc.) may in fact be less than the energy left in the remaining oil. That is a positive EROEI. It is therefore profitable.
Now some cornucopians, republicans, etc. may have a different answer. They will talk about the God of Money and Mr. Demand etc. making it all okay. But do not listen to them. They are wrong
misterno wrote: So the question is how come only the %1 of the stuff coming out of that well makes the operation profitable?
misterno wrote:
All I am trying to say; is an oil well with %99 water cut being profitable usual? The reason I am asking; I have seen discussions about wells in Saudi Arabia and people were saying when you hit %50 water cut, operation is no longer profitable or not feasible. I think it was Ghawar that they were talking about.
What am I missing here?
There is an entire thread why Simmons and his "water cut in Ghawar" theories are bogus.
Jahnsen told Energy: "Everyone knows now that the only way to increase oil production worldwide near-term is to get rid of the water. Environmental objectives are being achieved by default ... it has nothing to do with clear-headed management of the problem. This has become a water industry. Oil&gas is just a small part of it.
"For example, I'm working a lot with Saudi Aramco. Their problem is that they have four or five fields that are more than 50 years old. Process plant is designed for a water-cut of maybe up to 30%, but they have 70% and 90% water-cut in some places.
"If they are not able to handle the water, then they have to reduce oil&gas production. The driver is economic. It's all about money. The environmental benefit is a spin-off."
Repent wrote:These types of subsidies will all end when one of several possiblilities occurs: oil volumes can't be maintained even with enormous subsidies and the fraud is revealed. That foreign banks become wise to the fact that they are being imbezzled (unlikely but possible), or there is a class revolt, where the over taxed and impovershed lower classes rise up to throw out the ruling elites. The first thing the new revolutionary government would do would be to eliminate the oil subsidies to lower taxes on the poor and middle classes, which would immediately lower or end oil production.
Voice_du_More wrote: Wyoming will probably has gasoline, and NGL after the US is gone and Wyoming is fighting for it's national sovereignty against rogue tribes coming in from the hinterlands.
If the EROEI of an entire project is something absurdly poor or (god forbid! NEGATIVE) it will never be started in the first place. Rocdoc could give you many examples of such jobs. You just don't drill at all. period.
rockdoc123 wrote:If the EROEI of an entire project is something absurdly poor or (god forbid! NEGATIVE) it will never be started in the first place. Rocdoc could give you many examples of such jobs. You just don't drill at all. period.
wrongo I'm afraid. No one goes and figures out EROEI when we make decisions in the oil patch we look at point forward economics.
rockdoc123 wrote:If you can find me someone in the patch who actually has a column in their economics spreadsheet called EROEI I will be completely gobsmacked. It just isn't done.
Maddog78 wrote:rockdoc123 is correct.
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