Deferral of asp injector conversions

With oil commodity price uncertainty, many operators of ASP floods are terminating their injection or deferring capital and operating costs. Seasickness has been developing in the industry with fluctuating oil prices.

This operator of a heavy oil ASP flood has received approval to postpone some of his ASP injector conversions for two years. Other ASP operators are terminating their floods but some SAGD operators are now adding surfactant.

Awaiting higher commodity pricing

He hopes rising oil prices will make his injector conversions more economic in the future. They intend to expedite the injector conversion program later if commodity pricing returns back to significantly higher levels. We found this information using AppIntel.

In March they were hoping that Canadian wellhead oil prices of $55 to 65 per barrel might come by 2018. When they submitted their application, oil prices for WTI were $38-41 US per barrel.

Oil companies expect to be ready for anything in this price environment. On the day oil hit $50 US, I overheard on the Plus 15: "...and now he expects me to be drilling in six weeks."

Applications are leading indicators

How can you be ready for anything? You need to be watching what other operators are doing.

Applications are leading indicators of future industry activity. They broadcast the pessimism (or optimism) of an operator. They indicate the operator's short and long term plans.

Applications are an expos� of practical technology use. They show how technology works out in the field. They indicate success and failure of each type of technology. They even offer ways to conduct look-back analysis on technology installations.

The best way to stay on top of oil field technology is to watch applications. You can get new applications within 20 miles of your operation delivered to your inbox the morning after they are submitted. AppIntel does that.

Subscribers can view this application by pasting the following link into their browser after logging into AppIntel. http://app.appintel.info/AOW.php?pxnrg=6y556n38353534363731325o46

Tags: Polymer, Flood, Cut costs

  4 Jul 2016

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