An Eight-County Appraisal of the San September 1, 2020 Andres Residual Oil Zone (ROZ) DOE/NETL-2020/2629 “Fairway” of the Permian Basin Disclaimer This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference therein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed therein do not necessarily state or reflect those of the United States Government or any agency thereof. All images in this report were created by NETL, unless otherwise noted. An Eight-County Appraisal of the San Andres Residual Oil Zone (ROZ) “Fairway” of the Permian Basin An Eight-County Appraisal of the San Andres Residual Oil Zone (ROZ) “Fairway” of the Permian Basin Vello A. Kuuskraa,1 Robin Petrusak,1 and Matthew Wallace1 1Advanced Resources International, Inc. (ARI) Contacts David Morgan National Energy Technology Laboratory (NETL) [email protected], 412-386-7405 Donald Remson National Energy Technology Laboratory (NETL) [email protected], 412-386-5379 Timothy Grant National Energy Technology Laboratory (NETL) [email protected], 412-386-5457 Derek Vikara KeyLogic Systems, Inc. [email protected], 412-386-7409 Allison Guinan Leidos [email protected], 412-386-6855 This report was prepared by Mission Execution and Strategic Analysis (MESA) for the U.S. DOE NETL. This work was completed under DOE NETL Contract Number DE-FE0025912. This work was performed under MESA Activity 205.003. An Eight-County Appraisal of the San Andres Residual Oil Zone (ROZ) “Fairway” of the Permian Basin This page intentionally left blank. An Eight-County Appraisal of the San Andres Residual Oil Zone (ROZ) “Fairway” of the Permian Basin TABLE OF CONTENTS List of Exhibits ........................................................................................................................vii Acronyms and Abbreviations .............................................................................................. xii Executive Summary............................................................................................................... 1 1 The Eight-County San Andres Residual Oil Zone Fairway Study Area .......................... 6 1.1 Introduction ............................................................................................................. 6 1.2 The Permian Basin.................................................................................................... 7 1.2.1 Geologic Setting .............................................................................................. 7 1.2.2 Prograding Shelf Margins During San Andres Deposition ............................. 10 1.3 Permian Basin ROZ................................................................................................. 11 1.3.1 The San Andres ROZ Resource ....................................................................... 11 1.3.2 Characteristics of the San Andres ROZ.......................................................... 12 1.4 Estimating ROZ Fairway Resources ....................................................................... 13 1.4.1 Overview of Methodology............................................................................. 13 1.4.2 Data Sources and Published Studies ............................................................. 17 1.4.3 Computing Porosity in the ROZ ...................................................................... 19 1.4.4 Computing Oil Saturation in the ROZ ............................................................ 20 1.4.5 Comparing Log Derived Characterization with Published Data ................. 20 1.4.6 Computing OIP and High-Grading the ROZ Resource ................................. 21 1.4.7 Highgrading the ROZ Resources .................................................................... 21 1.5 Size and Quality of the San Andres ROZ Fairway Resource................................. 21 1.5.1 Areal Coverage of the ROZ Fairway Resource Assessment ......................... 21 1.5.2 OIP of the ROZ Fairway Resource Assessment .............................................. 22 1.6 Technically Recoverable ROZ Resources ............................................................. 24 1.6.1 Applying CO2 Enhanced Oil Recovery to the ROZ ....................................... 24 1.6.2 Technically Recoverable ROZ Resources and Demand for Purchased CO2 25 1.7 Estimating Commercially Viable Oil Recovery..................................................... 26 1.7.1 Cost and Economics Models ......................................................................... 26 1.7.2 Commercially Viable Oil Recovery with By-Product CO2 Storage ............... 27 1.8 Geologically Viable CO2 Storage with By-Product Oil Recovery........................ 28 2 Andrews County .......................................................................................................... 29 2.1 Geologic Setting of the Andrews County San Andres ROZ Fairway ................... 29 2.1.1 Example Andrews County Cross-Sections ..................................................... 30 i An Eight-County Appraisal of the San Andres Residual Oil Zone (ROZ) “Fairway” of the Permian Basin 2.1.2 Interpretation of Andrews County Cross-Sections ........................................ 32 2.1.3 Andrews County Type Log ............................................................................. 33 2.2 Partitioning the Andrews County San Andres ROZ Fairway Resource ................ 33 2.3 Size and Quality of the Andrews County San Andres ROZ Fairway Resource .... 34 2.4 Technically Recoverable Andrews County ROZ Fairway Resource .................... 35 2.4.1 Methodology for Estimating Technically Recoverable Resources ............... 35 2.4.2 Summary of Technically Recoverable Resources ......................................... 35 2.5 Viability of Oil Recovery and CO2 Storage in the Andrews County ROZ Fairway Resource .......................................................................................................................... 36 2.5.1 Commercially Viable Oil Recovery with By-Product CO2 Storage............... 36 2.5.2 Geologically Viable CO2 Storage with By-Product Oil Recovery................. 36 2.6 Partition #1. Western Andrews County................................................................. 37 2.6.1 Geologic Setting ............................................................................................ 37 2.6.2 Analytic ROZ Reservoir Properties .................................................................. 38 2.6.3 ROZ OIP ........................................................................................................... 38 2.6.4 Technically Recoverable Resources ............................................................. 38 2.6.5 Commercially Viable Oil Recovery with By-Product CO2 Storage ............... 39 2.6.6 Geologically Viable CO2 Storage with By-Product Oil Recovery................. 39 2.7 Partition #2. Central Andrews County ................................................................. 39 2.7.1 Geologic Setting ............................................................................................ 39 2.7.2 Analytic ROZ Reservoir Properties .................................................................. 40 2.7.3 ROZ OIP ........................................................................................................... 41 2.7.4 Technically Recoverable Resources ............................................................. 41 2.7.5 Commercially Viable Oil Recovery with By-Product CO2 Storage ............... 41 2.7.6 Geologically Viable CO2 Storage with By-Product Oil Recovery................. 42 2.8 Partition #3. Eastern Andrews County .................................................................. 42 2.8.1 Geologic Setting ............................................................................................ 42 2.8.2 Analytic ROZ Reservoir Properties .................................................................. 43 2.8.3 ROZ OIP ........................................................................................................... 44 2.8.4 Technically Recoverable Resources ............................................................. 44 2.8.5 Commercially Viable Oil Recovery with By-Product CO2 Storage ............... 44 2.8.6 Geologically Viable CO2 Storage with By-Product Oil Recovery................. 44 3 Martin County .............................................................................................................. 46 3.1 Geologic Setting of the Martin County San Andres ROZ Fairway ....................... 46 3.1.1 Example Martin County Cross-Sections ......................................................... 47 ii An Eight-County Appraisal of the San Andres Residual Oil Zone (ROZ) “Fairway” of the Permian Basin 3.1.2 Interpretation of Martin County Cross-Sections ...........................................