Economics

• We think of CO2 as the greenhouse gas (GHG) causing global warming.
• The Stern Report and the several IPCC (Intergovernmental Panel on Climate Change) reports are gaining acceptance.
• In its most recent report (AR4 Synthesis Report November 17, 2007) the IPCC has written: Warming of the climate system is unequivocal, as is now evident from observations of increases in global average air and ocean temperatures, widespread melting of snow and ice, and rising global average sea level.
• The report goes further to say: Most of the observed increase in globallyaveraged temperatures since the mid-20th century is very likely due to the observed increase in anthropogenic GHG concentrations.
• The Supreme Court on April 2, 2007 in a 5 to 4 decision decided that CO2 was a pollutant and the EPA could regulate auto emissions of the GHG (Chemical & Engineering News, April 3, 2007).

The results of EORI’s sponsored test of Viper Drill’s ultrashort radius (USR) drilling technology could be a sound investment for Wyoming operators.

Ultrashort radius drilling technology was successfully tested in two wells (an injector and a producer) at Thompson Creek Field in northeastern Wyoming that were experiencing problems due to near-wellbore formation damage.  Both wells exhibited marked improvement in performance after the drilling of four short (<30’ long) USR laterals from each borehole, indicating that this method should be considered in other wells throughout the state that are experiencing similar problems.

Reservoir characterization and predictive modeling has provided options for enhancing production in a recently discovered trend in the Muddy Formation near Hirsch Field, in northeastern Campbell County, Wyoming. This report outlines the procedures followed to develop a detailed 3-D geologic model of the Muddy Formation in the Hirsch area and provides the results of simulations run on 73 different scenarios for developing the reservoir. This study can serve as a template for operators interested in exploring possible ways to improve production in their own fields.

The primary objective of the study is to assess the possible implications to GHG emissions associated with this proposed ban and to do so, estimate the drilling and production losses from policies to restrict oil and gas development on federal lands. From that estimate, the emissions impacts are assessed by examining the difference in emissions associated with possible makeup production, compared to the production loss resulting from the ban, or from higher natural gas drilling levels that may be required to make up for lost supplies.

This study estimates the investment and production losses from policies to restrict oil and gas development on federal lands. The first policy is a moratorium on all new federal leases. The second involves an outright drilling ban on all onshore federal lands. The scope of this inquiry includes a study region that includes eight states: Wyoming, New Mexico, Colorado, Utah, Montana, North Dakota, California, and Alaska. These lost opportunities are estimated by first projecting how drilling and production activity is likely to evolve from 2021 through 2040 and then identifying what portion would be affected by the two policies.

The Institute predicts unconventional drilling will become less important while improved and enhanced recovery methods in conventional reservoirs will be of critical importance to Wyoming’s oil and gas sector due to expected oil prices. The Institute offers immediate changes be considered to the Wyoming Oil and Gas Conservation Commission (WOGCC) policies regarding the approval of idle well bonds to initiate construction.

EORI Offers Imperative and Immediate changes to WOGCC Policies that May Improve Production in Wyoming:

The Institute predicts unconventional drilling will become less important while improved and enhanced recovery methods in conventional reservoirs will be of critical importance to Wyoming’s oil and gas sector due to expected oil prices. The Institute offers immediate changes be considered to the Wyoming Oil and Gas Conservation Commission (WOGCC) policies regarding the approval of idle well bonds to initiate construction.

EORI Offers Imperative and Immediate changes to WOGCC Policies that May Improve Production in Wyoming:

• Eliminate the Idle Well Bond Policy
• Consider establishing a tiered Blanket Bond
• Incentivize EOR activity
• Establish a maximum 60-day time limit for reviewing and actioning water flood and disposal well applications
• Extend the time period of inactivity before a well is considered “Idle” to consecutive 24 months.
• Before the state demands that a well should be plugged, it should be evaluated to determine if it has any remaining recoverable reserves.

Is CCUS Feasible in WY? Wyoming’s Unique Position in the World’s CCUS Arena - The Cowboy Unicorn.

Summary of Executive Orders Actions taken by the Biden administration in January 2021 which will have a direct impact on Wyoming’s economy. 

In their study, Open Water Capital Partners highlights solutions to mitigate the long-term effects of a sustained downturn in coal, oil and natural gas and introduces strategies to limit the downturn’s impact while supporting Wyoming’s energy industry.

Open Water Capital Partners introduce strategies to curtail this impact to Wyoming’s economy with a three-pronged approach providing “immediate financial relief to operators, access to longer term liquidity amidst the volatility, and establishes a platform to more broadly diversify state revenue streams. 

Polymer-augmented waterflooding of the Minnelusa in Wyoming has proven to be a successful method for improving production in most cases compared to normal waterfloods. Polymer is a lowcost, low-risk option when considering a method for enhancing production of a particular field. Its primary function is to improve the mobility ratio of the injected water by increasing its viscosity, thereby improving the volumetric sweep and conformance within the reservoir.

Advantages of using polymer include: (1) low cost, (2) preventing early water breakthrough, (3) improving volumetric sweep and conformance, (4) increasing oilwater ratios, (5) mobilizing oil that would likely have been bypassed under normal waterflood conditions, (6) mitigating heterogeneous permeabilities within the reservoir, and (7) other enhanced oil recovery injection technologies can still be applied after the polymer flood. Most, but not all, Minnelusa fields examined exhibited improved recoveries using polymer compared to fields under conventional waterfloods. Uneconomical polymer floods can be caused by a variety of factors, chief of which is the failure to properly understand the internal architecture of the reservoir prior to initiating the flood.

Presentation October 2010 by Brian Jeffries.  Topics include Wyoming natural gas price compared to Louisiana gas price and more.

Presentation October 2010 by Andy Finley.  Topics include Niobrara Overview and more.

Presentation October 2010 by Bob Cornelius.  Topics include Transferring Gulf Coast CO 2 Success to the Rockies and more.

Presentation October 2010 by Tad True.  Topics include Logistical Constraints for Rockies’ Production, Getting Barrels out of the Rockies and more.

Presentation October 2010 by Gaylen Haag.  Topics include Questar Pipeline Updates, Expansion Projects and more.