1. 1 Kern River Oil Field Miriam Jasso, Matthew Kurtz, and Anood Meerza California State University, Bakersfield MKTG 606 Term Presentation May 14, 2008

2. 2 Agenda  History of Kern River  Impact of Steam Flooding/EOR  EOR Process – The Water Map  Cogeneration  Operational Excellence  Environmental/Ecological Concerns and Initiatives  For Fun  Questions

3. 3 History of Kern River

4. 4 Steam Flooding Unlocked Kern River’s Potential

5. 5 Enhanced Oil Recovery

6. 6 EOR Process Diagram Kern River Field

7. 7 The Water Map Kern River from the air

8. 8 Sycamore Cogeneration Company

9. 9 Kern River Cogeneration Company

10. 10 What is Cogeneration? Webster’s Dictionary defines Cogeneration as… The use of waste heat (as in steam) from an industrial process to produce electricity or the use of steam from electric power generation as a heating source

11. 11 What is Cogeneration? In general, Cogeneration can be defined as… The combined generation of two or more usable energy products from a single fuel source

12. 12 The Cogeneration Process… Involves the following basic equipment:  Gas Turbine  Generator  Heat Recovery Steam Generator

13. 13 COGENERATION – SIMPLE CYLCE Turbine Compressor Air Heat Recovery Steam Generator Exhaust Fuel Electricity Gas Turbine Steam Water Generator

14. 14 GAS TURBINE  Similar to a jet engine  Air is drawn into the machine and compressed by an axial flow compressor  Fuel is mixed with the compressed air and the resulting air-fuel mixture is ignited in the combustion section  Combustion gases pass through the turbine section and mechanical work is extracted

15. 15 GAS TURBINE General Electric MS7001FB

16. 16 GENERATOR  Mechanical energy extracted by the turbine is transferred to the generator rotor by a mechanical coupling  Mechanical energy is converted to electricity (3-phase, AC, 60 Hz)  Each MS7001EA gas turbine generates ~ 80,000 KW

17. 17 HEAT RECOVERY STEAM GENERATOR  Turbine exhaust gases enter the HRSG and pass over finned tubes  Water passes through the inside of finned tubes  Heat is transferred from the hot exhaust gases to the colder water in the tubes, ultimately producing steam

18. 18 Conventional Steam and Electric Generation Electricity 0.3 BTU Overall Efficiency = 0.3+ 0.8 2.0 = 55% Generator Steam 0.8 BTU Fuel 1.0 BTU Feedwater Steam Turbine Boiler Condenser Boiler Fuel 1.0 BTU Exhaust BWB3-001

19. 19 Steam and Electric Cogeneration Electricity 0.6 BTU Gas Turbine Generator Fuel 2.0 BTU Heat Recovery Boiler Steam 1.0 BTU Exhaust Overall Efficiency = 1.0 + 0.6 2.0 = 80% Exhaust Feedwater BWB3-001

20. 20 Operational Excellence  On-time/Availability  Reliability  Maximize life of components  Maximize oil production  DO NOT OPERATE… DO NOT GET PAID!!!

21. 21 How Does Technology Tie In?  LACT Meters are attached to the wells  Measure oil production and steam injection  SCADAs are attached to the LACT Meters which are systems that read the LACT Meters.  Data retrieved from the SCADAs automatically populate SOR  SOR populates Minerva (production/safety portal) that leadership utilizes to track oil production and steam injection against B-Plan

22. 22 Environment  Natural habitat protection  Kit fox  Bakersfield cactus  Emissions compliance  Federal, state and local  Wastewater minimization

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34. 34 Questions?