Engineered From the Ground Up: Heavy Oil Production Surface Equipment for a Steam Flood Project in Missouri

Producing heavy oil from undeveloped land in rural Missouri is not a standard project. It takes a purpose-built surface facility, a fully integrated control system, and an engineering partner willing to stay involved long after equipment delivery. When Palo Petroleum, a Dallas-based independent oil and gas operator, launched its enhanced heavy oil recovery operation in western Missouri, Principal Technology Inc. (PTI) provided the complete surface systems solution – from steam generation and oil separation to produced water disposal and real-time PLC monitoring.

A Unique Heavy Oil Recovery Method That Required Purpose-Built Surface Equipment

The Palo Petroleum heavy oil production process is unconventional for the region. Rather than relying on vertical injection alone, the operation uses a combination of horizontal production wells and multi-zoned vertical steam injectors to deliver top-to-bottom and directional control of the steam front, maximizing oil recovery. That kind of precision is not achievable with off-the-shelf equipment.

The well site was rural, undeveloped, and had only one outside utility available: natural gas. PTI worked alongside Palo Petroleum to engineer a self-sufficient, fully integrated surface facility capable of generating its own electricity and steam, separating produced oil and water, and handling produced water disposal – all from a single site running on a local gas supply.

Surface System Engineering: From Steam Generation to Produced Water Disposal

PTI’s engineering division led design and integration for the majority of the surface equipment needed to support the steam flood process. That scope included:

• Storage tanks: fresh water, treated water, and produced water
• Oil/water separation systems: handling the separation and storage of produced fluids
• Steam generation equipment: fueled by natural gas to support continuous steam injection
• Pumps, flow controls, and instrumentation: covering both liquid and steam systems
• Produced water disposal systems: managing the waste process water stream generated by the operation

Working within the constraints of a remote site with limited utilities required creative engineering. PTI and Palo Petroleum co-developed the facility design to ensure every system component could operate as part of a self-sustaining field operation.

Real-Time Steam Injection Monitoring with a Modular PLC Control System

One of the most technically demanding aspects of the Palo Petroleum steam flood process is the need for operators to monitor and adjust steam injection in real time. Without live visibility into the steam front, the precision control that defines this recovery method breaks down.

To meet that requirement, PTI’s Systems and Industrial Fabrication division designed and built a modular e-house – a complete control building assembled at PTI’s Texas facility and transported to Missouri for installation. The building contained:

• Motor switchgear: controlling the field’s electrical infrastructure
• PLC monitoring and control systems: integrated with surface facilities and downhole instruments
• Operator workstation: for on-site operations and real-time process visibility
• Satellite connection: enabling remote system access and live data monitoring from off-site
• Data historian: for continuous history logging and future performance analysis

Once delivered and placed, the building required only a connection to power and field instruments to become fully operational – a direct result of the modular, pre-commissioning approach PTI took during fabrication.

Single-Source Responsibility Across Engineering and Fabrication

What made this project work was coordination across PTI’s two internal divisions – the engineering group and the Systems and Industrial Fabrication group – operating as one team under a single project scope. The result was a seamless handoff from engineering design to fabricated, tested, field-ready equipment.

“Principal Technology not only designed the surface equipment for the Palo project but we are providing support through the life of the project with technical assistance, trouble shooting and equipment changes as needed to support the evolving process. Teams from our two divisions coordinated efforts to deliver seamless service to Palo Petroleum and make this oil production site possible.” – Matthew S. Hodson, P.E. (Texas), President and CEO, Principal Technology Inc.

That commitment to lifecycle support is especially relevant for heavy oil production projects, where surface systems are expected to adapt as production expands and the process evolves. PTI’s involvement did not end at commissioning – technical assistance, troubleshooting, and equipment modifications have continued throughout the life of the project.

Reliable Operation and Measurable Upside: Results From the Field

The value of a fully integrated, single-source surface system becomes clear in day-to-day field operations. According to Palo Petroleum’s vice president of operations:

“Palo Petroleum is experiencing reliable, successful operation of the surface systems at the Missouri well site. The flexibility of the control systems and adaptability of the equipment has been a real advantage as production and operations have expanded. Principal Technology’s broad expertise in steam production and process equipment allows them to be a one-stop provider of all the surface equipment and controls a producer such as Palo needs to efficiently and economically establish field operations.” – Jace Graham, Vice President of Operations, Palo Petroleum

PTI’s work on this project spans the full surface facility scope – not just equipment supply, but integrated engineering, fabrication, controls, and ongoing operational support. For oil and gas producers evaluating heavy oil assets or planning EOR development in unconventional areas, that kind of depth matters.

Palo Petroleum has assembled an acreage block in western Missouri that engineers estimate holds between 31.5 and 45.2 million barrels of oil in place. The surface systems PTI engineered are designed to grow with that production opportunity.

Ready to Discuss Your Project?

Principal Technology has provided oil and gas engineering experience since 1997, with a project portfolio spanning upstream production, midstream processing, and downstream refining. Whether you need surface facilities engineering for a new steam flood or heavy oil development, produced water system design, or a modular control and automation solution for a remote field site, PTI brings full-scope engineering and fabrication under one roof.

Contact our team to discuss your project.