The modular design of the MRU provides a broad range of solutions for economic and environmental challenges in the oil and gas industry.
Reduction In Flaring and Enhanced Oil Operations
- Oil companies are being forced to shut-in oil production or flare Natural Gas
- Example: Companies producing in Saskatchewan will soon have a restrict flaring with limited gas gathering infrastructure. Until it makes economic sense to spend the capital for pipelines, the MRU can be used to convert the NG into synthetic crude to be mixed into the existing production; and power and heat used to offset oil production costs.
- Example: Heavy oil production in Northern Alberta have sources of undervalued gas. The requirements in these remote locations are power, heat, and diluent in order to make the oil flow.
The World Bank estimates that $50 billion dollars of Natural Gas is flared each year.
Extended Well Testing and Immediate Oil Production
- Flaring associated with Well Testing is currently limited in time or production. This creates poor well assessments as there is not enough data to accurately assess the viability of production from that well. After the well is drilled and completed the operator must hold off oil production until the gas pipelines are constructed.
- Example: In a situation of a Gas to Oil ratio of 1 bbl to 1 mcf, the company could be losing 250 bbls/day ($10,000 @ $40/bbl) towards payback of initial drilling capital for up to 18 months.
There are hundreds of drilling rigs in operation in North America.
Enhanced Oil Recovery (EOR)
The MRU can be marketed to areas where there is Flared gas; EOR is required to maintain or increase oil production; and water is a restricted, environmentally sensitive commodity.
Once an oil reservoir is initially pressurized, the MRU generates heat and water that could be used for void replacement to keep up the pressure lost from oil production. The added value of the hydrocarbons and power will offset the cost of the EOR and create an environmental benefit in reducing GHG emissions and conserving water.
There are thousands of existing wells that would benefit from EOR.
Undervalued Gas Conversion to Higher Valued Refined Products
In remote locations with flaring and undervalued gas, the MRU can produce various types of hydrocarbons, water, and power turning an environmental liability into an economic benefit.
With further refinements, the MRU has the potential to produce drop in fuels such as drop in diesel, cooking/heating fuels, fertilizers and specialty hydrocarbons.
The solution has the potential to monetize over 10,000 stranded gas reservoirs.