United States Energy Association
Promoting Domestic and International Consensus on Fossil Energy Technologies (CONSENSUS)
Cooperative Agreement #DE-FE-002415-19
REQUEST FOR PROPOSALS (RFP)
DE-FE-002415-19-01
Potential to Increase Oil Production and Hydrocarbon Liquids Using CO2 in US Shales in the Following Geological Formations: Permian, Utica, Marcellus, Bakken, Eagleford.
Questions Due: September 13, 2019
Proposals Due: October 4, 2019
Background
The potential to produce oil and related hydrocarbon liquids from shale formations is vast. The amount currently produced is typically between 5 - 10% of the known resource, varying by the shale characteristics, operator processes, and original well completion. Improvements will result in significant increases in production and reserves.
Work has been underway for several years using mixed gas, including CO2, for enhanced oil recovery (EOR) in shale formations. Experience and knowledge gained from this work indicates that CO2, for use in EOR, has significant potential to increase oil production in shale formations.
The use of Carbon Capture, Utilization and Storage (CCUS) technologies could be deployed on coal fueled power generation plants or industrial facilities to provide large scale, reliable sources of CO2 for EOR in shale formations. Policies to mitigate CO2 and increase US oil production are expected to drive higher demand for captured CO2 and new incentives under the modified 45Q Tax Credit are expected to make the business case for the use of CO2 for EOR in shale formations more attractive.
The use of CO2 derived from CCUS technologies for EOR in shale formations is virtually untapped as a tool to increase oil/hydrocarbons production. The objective of this study is to estimate the:
Scope of Work
The United States Energy Association (USEA), in cooperation with the U.S. Department of Energy Office of Fossil Energy (DOE), seeks proposals for a contractor to complete a study on the potential of CO2 utilization volumes to increase oil and hydrocarbon liquids production in US shales. The study should focus on the potential in the following undeveloped (with regards to CO2) basins: Permian, Utica, Marcellus, Bakken, and Eagleford. The study is expected to be between 75-175 pages in length, excluding appendices and references.
In preparing the study, the Contractor will:
It is understood that information related to ongoing CO2-EOR in shale is proprietary, has not yet started in some areas, and large sections of the study will be based on hypothetical outcomes.
The contractor will designate a primary contact to coordinate and provide monthly updates on the status via written high-level reports and conference calls between the contractor and USEA to commence within the 15 days after the initial award is formally accepted and contracted.
Deliverables
The contractor will be required to submit the following deliverables:
Proposal Preparation
Interested parties are requested to submit a cost proposal and a brief technical proposal of no more than 10 pages, including the following:
Primary requirements: Demonstrate a technical understanding of CO2-EOR-storage, CO2-Shale EOR, CO2-mixed gas with CO2-EOR and/or mixed gas-EOR, with an emphasis on the following:
Offers must include an expected timeline with agreed milestones and proposed workflow leading to the deliverable.
Collaborations or consortiums set up to pursue this work are acceptable as long as one entity is the primary contractor.
The sub-agreement between USEA and the winning offer will be structured as a fixed sub-agreement for labor, fringe benefits and overhead. USEA will fund other direct costs, including travel (transportation, lodging and a U.S. Government approved daily meals and incidental allowance) directly. The cost proposal should include an estimate of the number of trips required to organize and conduct this study. DO NOT include travel costs, as USEA will fund this directly.
Labor costs should include a level of effort for each person proposed to work on this assignment, their daily loaded rate, and the total estimated charge for each individual proposed.
CVs of each person proposed to work on this project must be included as an appendix and will not count toward the technical proposal page limit.
Selection Criteria
The following criteria will be used to evaluate proposals:
40% -- Proven experience in, and knowledge of CO2-EOR-Storage, CO2-Shale EOR and/or Mixed gas with CO2-EOR and Mixed gas EOR.
30% -- Proven expertise in reserves estimation in CO2-EOR, CO2-Shale EOR and/or Mixed gas with CO2-EOR, and mixed gas EOR.
10% -- Proven experience in infrastructure and commercial development of CO2-EOR related production.
20% -- Price
Schedule
Interested parties are requested to register their interest prior via email to the following mailbox: [email protected] [1]. Registering interest will ensure you receive all questions submitted by interested parties and the corresponding responses from USEA.
Questions on the terms of this request for proposals must be submitted prior to September 13, 2019 by email to the following mailbox: [email protected] [1]. All questions received and their corresponding responses and other RFP related announcements will be posted on the USEA website and distributed to parties registering interest in this RFPs.
Final proposals must be submitted by email by 5:00 pm on October 4, 2019 to the following mailbox: [email protected] [1].
The review process will take up to 60 days. Notification will be sent to the selected offeror, at which point, contract negotiations, including setting milestones and deliverable due dates, will commence.
END OF RFP
Links:
[1] mailto:[email protected]
[2] https://usea.org/energy-category/all
[3] https://usea.org/energy-category/coal
[4] https://usea.org/energy-category/oil-gas