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156 comments on DrumBeat: March 21, 2007

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alistairC on March 22, 2007 - 8:47am

The huge increase in smart well installations and MRC well completions from 2004 to 2005 strongly indicate that Saudi Arabia is now extracting its last remaining oil reserves

That's one interpretation. An alternative interpretation is that

the use of smart wells can increase ultimate recovery by 53%

i.e. the payback more than justifies the extra expense, and therefore the use of smart wells, in itself, tells us nothing at all about the amount of remaining oil.

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ace on March 22, 2007 - 7:09pm

Both interpretations can be true: Saudi Arabia is extracting its last remaining oil reserves and ultimate recovery may increase by 53%.

Smart MRC wells are required for thinning oil columns. These thin oil columns may be able to produce for a long period of time but it's difficult to reach oil. These fields need to produced very carefully.

Who knows, next the Saudi's will be using in situ steam flooding as they do in Alberta tar sands. The tar sands reserves are huge but converting them to production is tough.

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