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Title: Gas Storage And Enhanced Oil Recovery
Author: Rudy Weisel
Source: American Gas Association 1990
Year Published: 1990
Abstract: Converting the 20-year-old Honor Rancho oil field to gas storage gave the oil production operations a new life. Each year, the reservoir is returned to discovery pressure by the injection of storage gas. The facilities and the reservoir maintenance technique needed for the gas storage operation combine to enhance oil production. The unique aspects of oil production economics in a regulated utility are considered. Gas storage in southern California began in 1941. Gas storage in depleted southern California oil fields began in 1942. That first venture into an oilfield was at the Playa del Rey field near Los Angeles International Airport. The project was under the direction of the War Department to meet urgent needs of the defense industry and war effort. Later, two other significant oil fields were developed for storage- Montebello in 1954 and Aliso Canyon in 1973. In both cases, however, oil reserves were owned by others. Finally, Honor Rancho field was developed in 1975, and here the Gas Company owned the oil reserves. This ownership gave SoCal Gas Company an opportunity to not only manage the reservoir as we saw fit, but also gave access to oil revenues to help offset operating costs.

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