The 25 Leading Companies in Enhanced Oil Recovery (EOR) 2014

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The 25 Leading Companies in Enhanced Oil Recovery (EOR) 2014

A Competitive Analysis

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Contents 1. Executive Summary

1.1 The Enhanced Oil Recovery (EOR) Market Overview

1.2 Benefits of This Report

1.3 Who is This Report For?

1.4 Methodology and Enhanced Oil Recovery Market Definition

2. Introduction to the Enhanced Oil Recovery (EOR) Market 2.1 Stages of Oil Extraction

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 In-Situ Combustion

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

2.5 Unconventional Oil and Gas

2.5.1 Extra Heavy Oil

2.5.2 Oil Sands

2.5.3 Oil Shale

2.5.4 Tight Oil

2.5.5 Shale Gas

3. Key Issues in the Enhanced Oil Recovery (EOR) Market 3.1 Developments Affecting Companies in the Thermal Oil Sands Market Space

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Contents 3.1.1 Oil Sands Resources

3.1.2 Western Canadian Select (WCS) Continuing to Trade at a Discount to West Texas Intermediate (WTI)

3.1.3 How Important is Keystone to the Thermal Oil Sands Market?

3.2 Developments Affecting Companies in the Thermal Heavy Oil Market Space

3.2.1 Global Heavy Oil Resources

3.2.2 Prospects for Solar EOR

3.2.3 Heavy Oil versus Oil Sands in the Thermal EOR Market

3.3 Developments Affecting Companies in the CO2 EOR Market Space

3.3.1 Current Production Centres and Future Growth Opportunities

3.3.2 Prospects for Offshore CO2 EOR

3.3.3 The Importance of Government Funding

3.3.4 Competition from Rival Technologies

3.4 Developments Affecting Companies in the Chemical EOR Market Space

3.4.1 Improving Polymers and Surfactants

3.4.2 Current Production Centres and Future Growth Opportunities

3.4.3 Potential Challenges for Chemical EOR

4. Competitor Positioning in the Enhanced Oil Recovery (EOR) Market

4.1 The Leading 25 Companies in the EOR Market 2013 – Market Share Analysis

4.2 The Leading 25 Companies in the EOR Market 2014 – Market Share Analysis

4.3 Comparison of the EOR Methods Being Undertaken by Each Company

4.4 The Location of the Leading 25 Companies’ EOR Operations

5. Leading 25 Companies in the Enhanced Oil Recovery (EOR) Market 5.1 BP

5.1.1 Overview and EOR Operations

5.1.2 SWOT Analysis

5.1.3 Future Outlook

5.1.3.1 BP’s EOR Research and the Prospects for Low Sal® Technology

5.1.3.2 BP’s Entry into the Oil Sands Business

5.1.3.3 BP’s Potential Investments in CO2 EOR and Polymer Flooding

5.2 Canadian Natural Resources Limited (CNRL)


5.2.2 SWOT Analysis

5.2.2.1 CNRL’s Oil Sands Operations

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Contents 5.2.2.2 CNRL in the Thermal Heavy Oil Market


5.2.3.1 Kirby South to Ramp up Production in 2014

5.2.3.2 Other Potential Oil Sands Developments

5.2.3.3 The Importance of Keystone XL to CNRL

5.3 Cenovus Energy Inc.


5.3.2 SWOT Analysis


5.3.3.1 Low Costs and Impressive Results at Oil Sands Operations

5.3.3.2 Prospects for Oil Sands Growth

5.3.3.3 CO2 EOR Developments

5.3.3.4 Potential Chemical EOR Growth

5.4 Chevron Corporation


5.4.2 SWOT Analysis

5.4.2.1 Chevron in the Duri Field – The Largest EOR Operation in the World

5.4.2.2 Chevron’s Thermal EOR Operations in California

5.4.2.3 Chevron’s Pilot Steamflood at the Wafra Field

5.4.2.4 Chevron’s Involvement in the CO2 EOR Market

5.4.2.5 Chevron in the Tengiz Field


5.4.3.1 Chevron Supporting EOR Research and Development Efforts

5.4.3.2 Chemical EOR at the Minas and Captain Fields

5.4.3.3 Potential for Solar EOR

5.5 China National Offshore Oil Corporation (CNOOC)


5.5.2 SWOT Analysis


5.5.3.1 CNOOC Increasing Its Investments in Canada’s Oil Sands

5.5.3.2 Opportunities for CNOOC within China

5.6 China National Petroleum Corporation (CNPC)


5.6.2 SWOT Analysis


5.6.3.1 Opportunities for CNPC within China

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Contents 5.6.3.2 Opportunities for CNPC Outside of China

5.7 China Petroleum & Chemical Corporation (Sinopec)


5.7.2 SWOT Analysis


5.7.3.1 Sinopec’s EOR Opportunities within China

5.7.3.2 Sinopec’s EOR Investments Outside of China

5.8 Connacher Oil & Gas


5.8.2 SWOT Analysis


5.9 ConocoPhillips


5.9.2 SWOT Analysis


5.9.3.1 Expansion Plans in Place for ConocoPhillips’ Thermal Oil Sands Operations

5.9.3.2 EOR Opportunities Outside of the Canadian Oil Sands

5.10 Denbury Resources


5.10.2 SWOT Analysis


5.10.3.1 Denbury Continues its Expansion in the Rockies

5.10.3.2 Denbury Strongly Positioned in the CO2 EOR Market Space

5.11 Devon Energy Corporation




5.11.3.1 Third Phase of Jackfish on Course, Pike to Follow

5.12 ExxonMobil Corporation




5.12.3.1 ExxonMobil’s Investments in New EOR Technologies

5.12.3.2 ExxonMobil’s Thermal Oil Sands Expansion Plans

5.12.3.3 ExxonMobil’s Involvement in the Malaysian EOR Market

5.13 Husky Energy

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Contents 5.13.1 Overview and EOR Operations



5.13.3.1 First Phase of Sunrise Oil Sands Project to Begin in Late 2014

5.13.3.2 Husky Pressing Ahead with Thermal Heavy Oil Projects as Prices Surge for Western Canadian

Heavy Oil

5.14 Kinder Morgan




5.15 Lukoil




5.16 MEG Energy




5.16.3.1 Further Production Increases at Christina Lake Project

5.16.3.2 Opportunities in the Surmont Leases

5.17 Occidental Petroleum Corporation



5.17.2.1 Occidental’s Leading Position in the CO2 EOR Market

5.17.2.2 Occidental’s SAGD Operation at the Mukhaizna Field in Oman


5.17.3.1 Continued CO2 EOR Growth in the Permian Basin

5.17.3.2 Potential to Expand the Mukhaizna Project and Opportunities in the Neighbouring Kahmah

Reservoir

5.17.3.3 Streamlining Plans and the Impact on EOR Production

5.18 Pemex




5.18.3.1 Pemex’s Upcoming EOR Projects

5.18.3.2 The Potential Impact of Mexican Constitutional Changes

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Contents 5.19 Petrobras



5.19.2.1 The Lula Project


5.19.3.1 Further CO2 EOR Opportunities for Petrobras

5.20 Petroleum Development Oman (PDO)




5.20.3.1 PDO’s Ambitious Expansion Plans

5.20.3.2 The Prospects for Solar EOR in Oman

5.21 PDVSA




5.21.3.1 Political Problems and the Need for Investment

5.21.3.2 PDVSA Focusing on Short-Term EOR Production Increases at Mature Fields

5.21.3.3 Long-Term Opportunities for EOR Production in the Orinoco Belt

5.22 Royal Dutch Shell




5.22.3.1 Shell Investing Heavily in Chemical EOR

5.22.3.2 Shell Expanding Thermal EOR Operations and Investing in Solar EOR

5.22.3.3 Shell’s Potential Involvement in the CO2 EOR Market

5.23 Statoil



5.23.2.1 Uncertainty in Statoil’s Oil Sands Programme Following Recent Developments

5.23.2.2 Statoil’s Success with Gas Injection


5.23.3.1 Statoil Experimenting with Chemical EOR

5.23.3.2 CO2 EOR Unlikely to be a Strong Growth Area for Statoil

5.24 Suncor Energy


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Contents 5.24.2 SWOT Analysis

5.24.2.1 Firebag

5.24.2.2 MacKay River

5.24.2.3 Dover Demonstration Plant


5.25 Total S.A.




5.25.3.1 Opportunities for the Dalia Field Chemical EOR Project

5.25.3.2 Potential for CO2 EOR Projects in Various Locations

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

7. Expert Opinion 7.1 GlassPoint

7.1.1 The Current Status of GlassPoint’s Pilot Projects

7.1.2 Prospects for Solar EOR in California and the Gulf Region

7.1.3 Other Potential Regions where Solar EOR can be Applied

7.1.4 Higher Upfront Costs. But Lower Operating Costs

7.1.5 Similarities and Differences between Solar and Gas

7.1.6 GlassPoint’s Relationship with Royal Dutch Shell

7.1.7 GlassPoint’s Aims for the Future

8. Conclusions 8.1 Global EOR Market Outlook

8.2 The Best Positioned Companies in the Thermal Oil Sands Market Space

8.3 The Best Positioned Companies in the Thermal Heavy Oil Market Space

8.4 The Best Positioned Companies in the CO2 EOR Market Space

8.5 The Best Positioned Companies in the Chemical EOR Market Space

9. Glossary

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Contents List of Tables Table 3.1 Original Heavy Oil in Place by Nation (Billion Barrels)

Table 3.2 Top Ten Thermal EOR Projects (Company, Name, bpd, Resource)

Table 4.1 The Leading 25 Companies in the EOR Market 2013 (Rank, Value $Bn, Market Share %)

Table 4.2 The Leading 25 Companies in the EOR Market 2014 (Rank, Value $Bn, Market Share %)

Table 4.3 Methods of EOR Production Among the Leading 25 Companies (Thermal, Gas and Chemical)

Table 4.4 Location of EOR Projects Among the Leading 25 Companies (United States, Canada, Latin America, Asia,

Middle East, Russia and Central Asia, Europe, Africa)

Table 5.1 BP Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global EOR

Market Size 2013 ($Bn), Global EOR Market Share 2013 (%), Global EOR Market Rank 2013, Forecast EOR

Production 2014 (bpd), Global EOR Market Size 2014 ($Bn), Global EOR Market Share 2014 (%), Global EOR

Market Rank 2014, Five-Year Outlook

Table 5.2 SWOT Analysis of BP in the EOR Market

Table 5.3 CNRL Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global

EOR Market Size 2013 ($Bn), Global EOR Market Share 2013 (%), Global EOR Market Rank 2013, Forecast EOR



Table 5.4 SWOT Analysis of CNRL in the EOR Market

Table 5.5 Cenovus Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global




Table 5.6 SWOT Analysis of Cenovus in the EOR Market

Table 5.7 Chevron Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global




Table 5.8 SWOT Analysis of Chevron in the EOR Market

Table 5.9 CNOOC Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global




Table 5.10 SWOT Analysis of CNOOC in the EOR Market

Table 5.11 CNPC Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global


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Contents Production 2014 (bpd), Global EOR Market Size 2014 ($Bn), Global EOR Market Share 2014 (%), Global EOR


Table 5.12 SWOT Analysis of CNPC in the EOR Market

Table 5.13 Sinopec Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global




Table 5.14 SWOT Analysis of Sinopec in the EOR Market

Table 5.15 Connacher Oil & Gas Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013

(bpd), Global EOR Market Size 2013 ($Bn), Global EOR Market Share 2013 (%), Global EOR Market Rank 2013,

Forecast EOR Production 2014 (bpd), Global EOR Market Size 2014 ($Bn), Global EOR Market Share 2014 (%),

Global EOR Market Rank 2014, Five-Year Outlook

Table 5.16 SWOT Analysis of Connacher Oil & Gas in the EOR Market

Table 5.17 ConocoPhillips Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd),

Global EOR Market Size 2013 ($Bn), Global EOR Market Share 2013 (%), Global EOR Market Rank 2013, Forecast

EOR Production 2014 (bpd), Global EOR Market Size 2014 ($Bn), Global EOR Market Share 2014 (%), Global EOR


Table 5.18 SWOT Analysis of ConocoPhillips in the EOR Market

Table 5.19 Denbury Resources Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013

(bpd), Global EOR Market Size 2013 ($Bn), Global EOR Market Share 2013 (%), Global EOR Market Rank 2013,

Forecast EOR Production 2014 (bpd), Global EOR Market Size 2014 ($Bn), Global EOR Market Share 2014 (%),

Global EOR Market Rank 2014, Five-Year Outlook

Table 5.20 SWOT Analysis of Denbury Resources in the EOR Market

Table 5.21 Devon Energy Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd),




Table 5.22 SWOT Analysis of Devon Energy in the EOR Market

Table 5.23 ExxonMobil Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd),




Table 5.24 SWOT Analysis of ExxonMobil in the EOR Market

Table 5.25 Husky Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global


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Table 5.26 SWOT Analysis of Husky in the EOR Market

Table 5.27 Kinder Morgan Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd),




Table 5.28 SWOT Analysis of Kinder Morgan in the EOR Market

Table 5.29 Lukoil Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global




Table 5.30 SWOT Analysis of Lukoil in the EOR Market

Table 5.31 MEG Energy Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd),




Table 5.32 SWOT Analysis of MEG Energy in the EOR Market

Table 5.33 Occidental Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd),




Table 5.34 SWOT Analysis of Occidental in the EOR Market

Table 5.35 Pemex Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global




Table 5.36 SWOT Analysis of Pemex in the EOR Market

Table 5.37 Pemex’s Upcoming Pilot EOR Projects (Location and EOR Method)

Table 5.38 Petrobras Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd),




Table 5.39 SWOT Analysis of Petrobras in the EOR Market

Table 5.40 PDO Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global


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Table 5.41 SWOT Analysis of PDO in the EOR Market

Table 5.42 PDVSA Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global




Table 5.43 SWOT Analysis of PDVSA in the EOR Market

Table 5.44 Shell Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global




Table 4.45 SWOT Analysis of Shell in the EOR Market

Table 5.46 Statoil Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global




Table 5.47 SWOT Analysis of Statoil in the EOR Market

Table 5.48 Suncor Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global




Table 5.49 SWOT Analysis of Suncor in the EOR Market

Table 5.50 Total Overview: Headquarters, Employees, Stock Exchange, Total EOR Production 2013 (bpd), Global




Table 5.51 SWOT Analysis of Total in the EOR Market

Table 6.1 PEST Analysis of the EOR Market

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Contents List of Figures Figure 3.1 World Map of Bitumen Reserves (Million Barrels of Bitumen)

Figure 3.2 USGS Survey Of Global Heavy Oil Resources by Region (Billion Barrels)

Figure 3.3 Oil Sands & Heavy Oil Thermal EOR Market Share 2013 & 2023 (% Share)

Figure 4.1 The Leading 25 Companies in EOR Market Share 2013 (%)

Figure 4.2 The Leading 25 Companies in EOR Market Share 2014 (%)

Figure 4.3 The Leading 25 Companies in EOR Market Share Change Forecast 2013-2014 (%)

Figure 5.1 BP EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.2 Location, Type and Production (bpd) of BP’s EOR Operations

Figure 5.3 BP’s EOR Production Split (%) Gas and Chemical

Figure 5.4 CNRL EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.5 Location, Type and Production (bpd) of CNRL’s EOR Operations

Figure 5.6 CNRL’s EOR Production Split (%) Thermal and Chemical

Figure 5.7 Cenovus EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.8 Location, Type and Production (bpd) of Cenovus’ EOR Operations

Figure 5.9 Cenovus’ EOR Production Split (%) Thermal, Gas and Chemical

Figure 5.10 Chevron EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.11 Location, Type and Production (bpd) of Chevron’s EOR Operations

Figure 5.12 Chevron’s EOR Production Split (%) Thermal and Gas

Figure 5.13 CNOOC EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.14 Location, Type and Production (bpd) of CNOOC’s EOR Operations

Figure 5.15 CNPC EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.16 Location, Type and Production (bpd) of CNPC’s EOR Operations

Figure 5.17 CNPC’s EOR Production Split (%) Thermal, Gas and Chemical

Figure 5.18 Sinopec EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.19 Location, Type and Production (bpd) of Sinopec’s EOR Operations

Figure 5.20 Sinopec’s EOR Production Split (%) Thermal and Chemical

Figure 5.21 Connacher Oil & Gas EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.22 Location, Type and Production (bpd) of Connacher Oil & Gas’ EOR Operations

Figure 5.23 ConocoPhillips EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.24 Location, Type and Production (bpd) of ConocoPhillips’ EOR Operations

Figure 5.25 ConocoPhillips’ EOR Production Split (%) Thermal and Gas

Figure 5.26 Denbury Resources EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.27 Location, Type and Production (bpd) of Denbury Resources’ EOR Operations

Figure 5.28 Devon Energy EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.29 Location, Type and Production (bpd) of Devon Energy’s EOR Operations

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Contents Figure 5.30 Devon Energy’s EOR Production Split (%) Thermal and Gas

Figure 5.31 ExxonMobil EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.32 Location, Type and Production (bpd) of ExxonMobil’s EOR Operations

Figure 5.33 ExxonMobil’s EOR Production Split (%) Thermal and Gas

Figure 5.34 Husky EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.35 Location, Type and Production (bpd) of Husky’s EOR Operations

Figure 5.36 Kinder Morgan EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.37 Location, Type and Production (bpd) of Kinder Morgan’s EOR Operations

Figure 5.38 Lukoil EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.39 Location, Type and Production (bpd) of Lukoil’s EOR Operations

Figure 5.40 Lukoil’s EOR Production Split (%) Thermal and Chemical

Figure 5.41 MEG Energy EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.42 Location, Type and Production (bpd) of MEG Energy’s EOR Operations

Figure 5.43 Occidental EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.44 Location, Type and Production (bpd) of Occidental’s EOR Operations

Figure 5.45 Occidental’s EOR Production Split (%) Thermal, Gas and Chemical

Figure 5.46 Pemex EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.47 Location, Type and Production (bpd) of Pemex’s EOR Operations

Figure 5.48 Petrobras EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.49 Location, Type and Production (bpd) of Petrobras’ EOR Operations

Figure 5.50 Petrobras’ EOR Production Split (%) Thermal, Gas and Chemical

Figure 5.51 PDO EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.52 Location, Type and Production (bpd) of PDO’s EOR Operations

Figure 5.53 PDO’s EOR Production Split (%) Thermal, Gas and Chemical

Figure 5.54 PDVSA EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.55 Location, Type and Production (bpd) of PDVSA’s EOR Operations

Figure 5.56 PDVSA’s EOR Production Split (%) Thermal, Gas and Chemical

Figure 5.57 Shell EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.58 Location, Type and Production (bpd) of Shell’s EOR Operations

Figure 5.59 Statoil EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.60 Location, Type and Production (bpd) of Statoil’s EOR Operations

Figure 5.61 Statoil’s EOR Production Split (%) Thermal and Gas

Figure 5.62 Suncor EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.63 Location, Type and Production (bpd) of Suncor’s EOR Operations

Figure 5.64 Total EOR Market Share 2013 & Market Share Forecast 2014 (%)

Figure 5.65 Location, Type and Production (bpd) of Total’s EOR Operations

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Contents Companies Mentioned in This Report

Abu Dhabi National Oil Company (ADNOC)

Aero Energy

Air Liquide

Air Products and Chemicals

Anadarko Petroleum Corporation

Apache Canada

Athabasca Oil Sands Corp. (AOSC)

Babcock & Wilcox Canada

Bapco

Beicip Franlab

Berkshire Hathaway

Berry Petroleum

BG Group

BP

BP Capital Management

Bright Source Energy

Canadian Natural Resources Limited (CNRL)

Cenovus Energy Inc.

Chevron Corporation

Chevron Technology Ventures

Chevron USA

China National Offshore Oil Corporation (CNOOC)

China National Petroleum Corporation (CNPC)

China Petroleum & Chemical Corporation (Sinopec)

Chrysalix Energy Venture Capital

CITGO Petroleum

Connacher Oil & Gas

ConocoPhillips

Cupet

Denbury Resources

Devon Canada

Devon Energy Corporation

DuPont

Elk Petroleum

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Contents El Paso Pipeline Partners

Encana Corporation

ExxonMobil Chemical

ExxonMobil Corporation

Fluor

Geogreen

GeoSouthern Energy

Gibson Energy Inc.

GlassPoint

Glori Energy

Goldman Sachs

Hess Corporation

Hitachi

Husky Energy Inc.

Hyundai Heavy Industries

IESA

Imperial Oil

Japan Canada Oil Sands Limited (JACOS)

Japan Petroleum Exploration Co. Ltd. (Japex)

KBR

Kinder Morgan

Kinder Morgan Energy Partners

Kinder Morgan Management

Kuwait Gulf Oil Company

Kuwait Petroleum Corporation

Liwa Energy

Lukoil

Magellan Midstream Partners

Marathon Oil

Masdar

MEG Energy

Merit Energy Company

Mitsubishi Heavy Industries (MHI)

MMC Oil and Gas Engineering

Mubadala

Nalco

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Contents Nederlandse Aardolie Maatschappij (NAM)

Neill and Gunter Ltd.

Nexen Inc.

Nova Chemicals Corporation

N-Solv Corporation

Nth Power

Occidental Petroleum Corporation

Oman Oil Company

OMV

Partex

PDVSA

Pemex

Petrobras

Petro-Canada

Petrocedeño

PetroChina

Petroecuador

Petroleum Development Oman (PDO)

Petronas

Phillips 66

Praxair

PTT Exploration and Production

Reliance Industries Ltd (RIL)

RockPort Capital

Rosneft

Royal Dutch Shell

SaskPower

Shell Chemicals

Shell Malaysia

Shell Oman Marketing Company

Siemens

SNC Lavalin-Cansolv

SNF Group

Southern Company

Summit Power Group

Suncor Energy

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Contents Statoil

Statoil Canada

Talisman

Targa Resources

Tatweer

Tengizchevroil

TIORCO

Total

Total E&P Canada

Water Standard

Wintershall

XTO Energy

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Contents Government Agencies and Other Organisations Mentioned in This Report

Brazilian Coal Association (BCA)

Brazilian Energy and Carbon Storage Research Centre

Bureau of Land Management (BLM)

California Department of Oil, Gas & Geothermal Resources (DOGGR)

Centre for North Sea Enhanced Oil Recovery with CO2 (CENSEOR-CO2)

Centre of Excellence in Research on Carbon Storage (CEPAC)

China Export-Import Bank

École supérieure de physique et de chimie industrielles

Energy Information Administration (EIA)

Energy Resources Conservation Board

French Petroleum Institute (IFP)

Gulf Cooperation Council (GCC)

International Monetary Fund (IMF)

Max Planck Institute

National Enhanced Oil Recovery Initiative (NEORI)

Norwegian Ministry of Petroleum and Energy

Norwegian Petroleum Directorate

Organisation of Petroleum Exporting Countries (OPEC)

Pembina Institute

Scientific and Technical Centre (CSTJF)

Sustainable Development Technology Canada (SDTC)

University of Cambridge

University of Copenhagen

University of Delft

University of Houston

University of Kansas

University of Texas

University of Twente

US Department of Energy (DOE)

US Geological Survey (USGS)

World Bank

World Energy Council (WEC)

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The 25 Leading Companies in Enhanced Oil Recovery (EOR) 2014: A Competitive Analysis

5.18 Pemex

5.18.1 Overview and EOR Operations Table 5.35 provides a summary of Petróleos Mexicanos (Pemex) and their involvement in the EOR

market, while Figure 5.46 shows the company’s 2013 market share and the forecast for the

company’s 2014 market share.

Headquarters Mexico City, Mexico

Employees 138,000

Stock Exchange -

Total EOR Production 2013 (bpd) 42,000 bpd

Global EOR Market Size 2013 ($Bn) $1.501bn

Global EOR Market Share 2013 (%) 1.3%

Global EOR Market Rank 2013 19th

Forecast EOR Production 2014 (bpd) 42,000 bpd

Global EOR Market Size 2014 ($Bn) $1.501bn

Global EOR Market Share 2014 (%) 1.2%

Global EOR Market Rank 2014 20th

Five-Year Outlook Moderate Growth

Source: Visiongain 2014

Table 5.35 Pemex Overview: Headquarters, Employees, Stock Exchange, Total EOR

Production 2013 (bpd), Global EOR Market Size 2013 ($Bn), Global EOR Market Share

2013 (%), Global EOR Market Rank 2013, Forecast EOR Production 2014 (bpd), Global

EOR Market Size 2014 ($Bn), Global EOR Market Share 2014 (%), Global EOR Market

Rank 2014, Five-Year Outlook

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Mexico has had some success over the past two years in placing carbon capture and storage onto

its policy agenda, incorporating it as part of the country’s National Energy Strategy 2012–26.

Mexico is believed to have some potential for CO2 EOR, while ongoing declines from older fields

are creating an imperative to invest in new sources of oil. This could creates opportunities for

Pemex, possibly in collaboration with international oil companies, to invest is commercial-scale

CO2 EOR projects, though visiongain believes this to still be a number of years off.

Field EOR Method

Akal KL, Chac Foamy surfactant injection and surfactant

solution injection

Cunduacán Foamy surfactant injection

Poza Rica Surfactant injection

Samaria Terciario Steam injection

Chuc Hydrocarbon gas injection

Maloob CO2 injection

Agua fría CO2 injection

Coyotes CO2 injection

Soledad Air injection

Cárdenas Air injection

The Chicontepec area spanning across three states of Mexico is of priority interest to Pemex and

the southern part of the region holds substantial amounts of heavy oil with an API gravity of around

18⁰. The Chicontepec region contains 442 million barrels of proven crude oil reserves and 11

billion more barrels of probable and possible reserves. If KMZ does reach its production peak

within the next few years and follows a similar decline pattern to the Cantarell field then Pemex

could decide to switch its nitrogen injection operations to the Chicontepec region, as it previously

did when moving from Cantarell to KMZ. However, the geological nature of the reservoir -

consisting of a succession of thin shales and carbonates - makes it difficult to apply thermal steam

and SAGD techniques in the Chicontepec area.

Table 5.37 Pemex’s Upcoming Pilot EOR Projects (Location and EOR Method)


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Thermal, 26.5%

Gas, 73.5%

Figure 5.60 Location, Type and Production (bpd) of Statoil’s EOR Operations



Figure 5.61 Statoil’s EOR Production Split (%) Thermal and Gas

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7. Expert Opinion

7.1 GlassPoint

Rod MacGregor is CEO of GlassPoint, a manufacturer of solar steam generators for the oil and

gas industry. Together with Berry Petroleum, the company has a small pilot facility in Kern County,

California, and is involved with Petroleum Development Oman’s (PDO) solar enhanced oil recovery

pilot in Oman. Visiongain spoke to Mr MacGregor in September 2013 and is grateful for his input

into the report.

7.1.1 The Current Status of GlassPoint’s Pilot Projects

Visiongain: GlassPoint is involved in two Solar EOR projects, with Berry Petroleum in California

and PDO in Oman. How will these projects progress in the future and do you have other Solar

EOR projects planned?

Rod MacGregor: At this stage in our evolution these two projects are both pilots. They are

relatively small in scale for oil production but quite reasonable in scale for power productions

standards. The respective companies are operating them and gaining experience from them. We

hope that both these individual companies and their peers in the respective regions will deploy full

field EOR in the future.

7.1.2 Prospects for Solar EOR in California and the Gulf Region

Visiongain: Can you tell me a little bit about the reasons why solar EOR is being developed in

California and the Middle East and the growth prospects in these regions?

Rod MacGregor: I don’t think we will see Berry or any of the California operators switch to Solar

EOR in the short to medium term. The drivers for Solar EOR are primarily around saving gas;

either reducing the quantity of gas you burn or reducing the cost of the gas you burn. But the

abundance and low price of gas in the US at the moment is not making solar EOR attractive for

many heavy oil producers. However, the state of California has created some new laws around

CO2 emissions; it’s a range of laws under the umbrella of the Assembly Bill (AB) 32. AB 32 is all

about reducing California’s CO2 emissions and one of its main pillars is effectively a cap and trade

system, not too different from the European system, which applies to stationary emitters.

The allocation that these stationary emitters of the oil companies get will be reduced over time.

Today the market price for CO2 translates into $0.80 per MMbtu of gas burned. So whatever the