Trouble in the World's Largest Oil Field
Ghawar - SAUDI ARABIA
Monday, 16 August 2004
By G.R. Morton
From: http://home.entouch.net/dmd/ghawar.htm


There are four oil fields in the world which produce over one million barrels per day. Ghawar in Saudi Arabia, which produces 4.5 million barrels per day, Cantarell in Mexico, which produces nearly 2 million barrels per day, Burgan in Kuwait which produces 1 million barrels per day and Da Qing in China which produces 1 million barrels per day. Ghawar is, therefore, extremely (very) important to the world's economy and well being. Today the world produces 82.5 million barrels per day (2004) which means that Ghawar produces 5.5 percent of the world's daily production. Should it decline, there would be major problems. Its production was restricted (limited) during the 1980s but by 1996 with the addition of two other areas to the south of Ghawar brought on production, Hawiyah and Haradh, the production went back up above 5 million per day. In 2001 it was producing around 4.5 million barrels per day. There have been 3400 wells drilled into this reservoir (the pool of oil underground).
Others have noted how the percentage (%) of water brought up with the oil has been growing (increasing) on Ghawar. There are published reports that Ghawar has from 30-55% water cut. This means that about half the fluids brought up the well are water. Today the decline rate is 8%. “At Ghawar, they have to inject water (put in by pressure) into the field to force the oil out. By contrast, Shayba's oil contained only trace (very small amounts) amounts of water. At Ghawar, the engineer said, the 'water cut' was 30%."
Most new oilfields produce almost pure oil (almost 100%) or oil mixed with natural gas--with little water. Over time, however, as the oil is drawn (taken) out, operators (company pumping the oil out of the ground) must replace it with water to keep the oil flowing until eventually (finally) what flows is almost pure water and the field is no longer worth operating (it turns into an energy sink, remember EROEI)
Saudi Aramco is injecting (putting into) a staggering 7 million barrels of sea water per day back into Ghawar, the world's largest oilfield, in order to prop up pressure (continue same pressure). It accounts for 30% of Saudi oil reserves and up to 70% of daily output. It seems a growing number of analysts are falling into line (saying the same thing) with the Simmons & Company International view that Saudi Arabia may be running out of steam and may not be able to perform the role of global swing producer (country that can produce extra in case oil cannot be produced from another place) for many more years, despite being credited (documented) with oil reserves in the order of 260 billion barrels. The Centre for Global Energy Studies hinted at the beginning of the year that the kingdom appeared to be heading for difficulties. Now one of its analysts has said that having reserves does not equate (equal) to production capacity. Citing the Haradh field, he said “it required 500,000 barrels per day of water injection to get out 300,000 bpd of oil. Moreover the problem is even more serious in the Khurais field.” With 100 billion bbl of crude oil produced so far, Saudi Arabia should not be far from the midway point of its proved reserves of 260 billion bbl-that means just 10 years at the going rate of roughly 3 billion bbl/year. Bearing in mind the [spurious revision] (higher new numbers) of 1990 that boosted proved Saudi reserves to 257 billion bbl from 170 billion bbl, the midway point could happen even sooner than that." “Doubts grow about Saudi as Global Swing Producer,” Aberdeen Press & Journal Energy, April 5, 2004, p.15
"Furthermore, the 35 billion bbl produced during 1990-2002 has not been accounted for (subtracted from the total yet), as Saudi "proved reserves" were still being reported at 260 billion bbl by the close of 2001." [Original Saudi reserves at 170 Billion barrels, they pumped 100 Billion so we have left 35 billion. Do the math using original estimate, not revised estimate of 257.] A. M. Samsam Bakhtiari, "Middle East Oil Production to Peak within next decade." Oil and Gas Journal, July 7, 2003, p. 24
Continue to: Saudi Aramco boosts drilling efforts to offset declining fields
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