• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 12 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 hours Reality catching up with EV forecasts
  • 19 hours Famous author Michael Crichton talks about the "Climate Change Religion" aka Feudalism 2.0
  • 6 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 12 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 12 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Solar and Big Oil Join Forces in Middle East

Solar technology can use heat from the sun to extract heavy crude from aging fields—and the idea is gaining ground and investment from big oil companies like Shell.

Last week, Royal Dutch Shell Plc. (RDSA), RockPort Capital and a few others invested a total of $26 million in California-based GlassPoint Solar Inc. The investment will spur the company’s expansion in the Middle East--and it’s all about crude oil extraction.

What the energy majors are eyeing in particular is GlassPoint’s Enclosed Trough Concentrating Solar Power (CSP) enhanced oil recovery (EOR) process. In less acronymic terms, it is technology that uses solar to tap into wells that have already been “played out” but in which at least one-third of their potential heavy oil is not recoverable by conventional drilling and pumping means.

Related Article: Is the US in the Middle of a Solar Boom?

ADVERTISEMENT

Typically, tapping into “played out” wells is done by using natural gas to boil water into pressurized steam to flood the well and make the oil more fluid for pumping.

And recent studies show that solar EOR may be better than natural gas EOR. Specifically, solar EOR can produce 16% more oil from a played-out well than natural gas processes—and there is no fuel cost. So the process works better and is more economically viable.

GlassPoint, though, is not the pioneer of this technology. ARCO came up with it in the early 1980s, but it wasn’t cost-effective. But since then, BrightSource Energy (BSE) has taken the technology to new heights and taps into aging wells for Chevron (NYSE:CVX) in the Coalinga oil field. BSE has spent $67.3 million on this project, which began in earnest last year.

ADVERTISEMENT

Related Article: Long-Term Oil Forecasts - Merely Guesses

GlassPoint already has a 300 kilowatt solar EOR project in Kern County, California, and another project close to completion in an oil field south of Oman. It is now seeking to expand to Kuwait and Bahrain where its technology will reduce oil production costs. GlassPoint also notes that this technology will save on gas used in the Middle East to produce oil. That gas can instead be exported.

Along with Shell and RockPort, Nth Power, and Chrysalix Energy Venture Capital also chipped in for the GlassPoint investment.

The lesson in all of this: There is a confluence of interests between the fossil fuel big boys and renewable energy—who are anything but eternal enemies. When you can calculate that renewable energy can improve big oil’s bottom line, that’s when you’re half way to a feasible energy future.

By Charles Kennedy for Oilprice.com


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News