Citadel Exploration is weighing the use of conventional techniques for oil extraction – instead of long-planned steam injections – at the Project Indian site in southern San Benito County, a company spokesman confirmed to the Free Lance.
If Citadel Exploration averts the highly debated use of steam injections, it would progress on plans for “several hundred” wells without concerns over a proposed, countywide ban against enhanced recovery methods.
Citadel last week announced successful oil production from its Project Indian exploratory well and that the company is planning to move ahead on an environmental review for the possibility of drilling a full field of wells on the site. In the announcement, the company stressed that oil from its exploratory well is mobile, while Citadel included a bullet-point timeline with various data involved in the production and follow-up lab work.
Lab work dated July 17 in a company press release showed that oil from the exploratory well had density and temperature figures – with an 11.6 API gravity number and a “pour point” of 58 degrees Fahrenheit – which have prompted Citadel Exploration to reconsider its steam injection plans.
When asked what those numbers mean, Citadel spokesman Robert Parry said they could indicate the oil is mobile without needing the use of steam – and that it could prompt a change of direction toward conventional extraction at Project Indian.
“We’re evaluating all the options where standard recovery techniques apply,” Parry told the Free Lance, declining to answer further questions on the likelihood of either direction.
The recent well production at Project Indian occurred despite a judge last month ruling that the San Benito County board failed to properly weigh potential impacts through a full environmental impact review – officials bypassed the process in favor of a mitigated negative declaration – when supervisors in June 2013 approved the Project Indian well site. The ruling is from a lawsuit filed by the Center for Biological Diversity, which contends the oil project could have negative environmental impacts relating to water use, greenhouse gas emissions, threats to the California condor and runoff into the Salinas River.
Citadel’s controversial use of steam injections is included among methods listed in a proposed ban against enhanced petroleum-pumping practices – including hydraulic fracturing, or fracking – before voters on the November ballot.
Andy Hsia-Coron, a county resident and a leader in the San Benito Rising group that proposed the petroleum regulations for the ballot, said the change of tone reflects “credibility issues” with Citadel.
“They’ve been saying all along that there was no way to the get the oil out of the ground without a steam injection,” said Hsia-Coron, pointing out that the company has reported the same information to decision makers. “To suddenly say the might do this other thing, it seems kind of far-fetched. … It seems to counter everything they’ve been saying all along.”
Citadel estimates its 688-acre site includes 100 million barrels of original oil in place. The company noted in its recent statement that historically, thermal recovery methods in California have proven to recover 20 percent to 60 percent of the oil in place.
Hsia-Coron acknowledged that if Citadel goes forward on possible plans to use conventional drilling, the proposed ban would not affect the Project Indian site.
“I think that would be a lot less worrisome,” Hsia-Coron said.
