TOGY talks to Pan Weiguo, Dano (Beijing) Oilfield Services (Dano Oil) chairman about the efficacy of the company’s technology in maximising oil output and minimising operating costs and environmental damage. Since its foundation, the company has focused on working out integrated solutions for oil and natural gas producers, by providing professional services and specialised equipment and materials.
Could you elaborate on your oily sludge treatment technology?
We re-inject the oily sludge pretreated by our innovative method into the “mined-out areas” of oil reserves and it would solidify underground.
Are you planning to promote your technology on a global level?
At present, we focus on China as we are more familiar with the market. Moreover, both the complicated attributes of the oil reservoirs and the new implementation of environmental regulation in China make our technology greatly appealing to the Chinese oil producers. Part of our strategy for next five years is to promote the adoption of our technology worldwide, especially in areas that are politically stable and economically healthy.
How would you increase the adoption of your technology in the Chinese market?
We choose to conduct pilot projects in Daqing Oilfield, in consideration of the fact that this old oilfield has the urgent need for good-performing EOR methods. After the first decade of development, Daqing Oilfield entered the secondary and tertiary recovery, and became the first in the world that encountered the high water-cut problem. Hence, Daqing Oilfield has a strong motive to reduce the water-oil ratio in order to maintain production target.
Therefore, once our trials succeeded in Daqing, due to the field’s exemplary role, our technology would have the great chance to get access to the other oilfields in China, even in the world.
What are the advantages to operators of a comprehensive method of treating oily sludge in a low oil price environment?
The traditional treatment methods are thermal treatment, hydro-cleaning treatment, biodegradation, extraction, separation, and combustion, for example. These alternatives all deal with the waste at a considerable cost. By contrast, our method is able to perform the permanent disposal of oily sludge in a cost-efficient way, through reducing the use of energy, water, chemicals and bio-chemcials. As a result, oil operators would lower production cost if they apply our technology.
How can the application of Dano Oil’s technologies be utilised to lower operator’s costs?
First, as an effective EOR method, [the technology’s] proper and thorough application would result in the extension of the oilfield’s lifetime and the increase of gross output. In other words, the overall cost could be reduced under the same conditions. Then, because our technologies are efficient at enlarging the volume of oil reserves, oil producers could expect to see the improvement of productivity and production in addition to cost savings. Last but not least, they could also decrease environmental expenses by adopting our technologies.
What does the technology do to address the third problem that you mentioned: minimising environmental damage?
Our treatment method is a permanent solution to the oily sludge problem. The solidified oily sludge is in a stable state, unlike fluid mixture, it would never resurface to the ground.
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