Operations research and systems analysis of geopressured/geothermal resources in Texas. Final report

A preliminary resource assessment, based on the best available parameters, was made to identify potentially suitable fairways. Of those examined only the Brazoria Fairway in the Frio Formation was able to produce sufficient fluid to meet the minimum requirements. These requirements are based upon the need for a well to produce an initial flow rate of 40,000 bbl/day with a 6% decline rate over a 30 year production period. Next, a development planning analysis was done to determine the number of wells that would have to be drilled in the fairway, considering the probability of success, and the number of drilling rigs available. The results of this analysis provided a time phased scenario and costs of developing the fairway. These were next used in an economic analysis. The economic analysis was performed to determine the present worth of using the resource under a range of values for the key economic parameters. The results of this study indicate that the commercial development of geopressured, geothermal resource is highly dependent upon the pricing of natural gas in the US, the development of tax incentives to spur development, and a better understanding of the nature of the resource through additional well tests.