FIG. 2
Gulf of
Mexico
RESIDUAL OIL ZONE FAIRWAYS, OIL FIELDS
New Mexico
MEXICO
UNITED
STATES
Lubbock
Midland
Tall Cotton
Slaughter-Levelland
Slaughter Fairway
Salt
Creek
Katz
Roswell Fairway
Texas
Vacuum Wasson
Artesia Fairway
Hobbs
SACROC Seminole
Robertson-Flanagan
Capitan Fairway North Cowden
Goldsmith-
Andector
South Cowden
Howard
Glasscock
McElroy-Dune
CONTENTS
Apr. 3, 2017 Volume 115.4
REGULAR FEATURES
NEWSLETTER 6
LETTERS/CALENDAR 16
JOURNALLY SPEAKING 22
EDITORIAL 24
SERVICES/SUPPLIERS 85
STATISTICS 87
MARKET CONNECTION 90
ADVERTISERS INDEX 91
EDITOR’S PERSPECTIVE/
WATCHING GOVERNMENT 92
OG&PE
P1
52
SPECIAL REPORT
NE W FINANCIAL STRUCTURES
SPECIAL REPORT
EOR UPDATE
COVER
Kinder Morgan injects carbon dioxide to enhance oil recovery for nearly all of its Texas
oil production. The cover shows a drilling rig
in Kinder Morgan’s Scurry Area Canyon Reef
Operators (SACROC) unit in Scurry County,
Tex. The EOR special report, beginning
on p. 52, summarizes fndings by various
companies and research groups into residual
oil zones, which underlie many felds in the
Permian basin. EOR applications are being
studied for ROZ felds. The second story
in the special report discusses how various
pore structures infuence EOR in China’s
Changqing feld. Photo from Kinder Morgan.
Residual oil zones
changing commercial
reservoir models
L. Stephen Melzer
52
Study assesses CO2 EOR potential by pore
structure in China’s
Changqing field
Yibing Yu, Moh’d Amro
Foppe Visser, Fulong Ning,
Rui Li
56
Financial trauma triggers
reinvented US onshore
E&P business
Matt Zborowski
26
GENERAL INTEREST
Trump’s executive order
emphasizes energy
more than environment
Nick Snow
34
US State Department
issues long-awaited
permit for Keystone
XL pipeline
Nick Snow
36
WoodMac: Surge in oil
hedging could worsen US
supply glut
37
Moody’s: Outlook
on North American
R&M revised to stable
38
Tesoro, Western Refining
shareholders approve
proposed merger
Robert Brelsford
39
Assala Energy to buy
Shell’s Gabon onshore
interests for $587 million
Matt Zborowski
39