CO2 and Its Impact on Oil Production

Arkadiusz Galat, Oil & Gas Analyst

Technical Insights

August 27, 2008

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Focus Points

• Enhanced Oil Recovery operations – Why do we need it?

• Snapshot of different EOR methods

• CO2 flooding in EOR operations; advantages and restraints

• Drivers and challenges for CO2 application in EOR operations

• Capture and Storage of CO2

• Future technical improvements expected

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Enhanced Oil Recovery Importance in Oil Production

• What is recovery ?

• What is the enhanced oil recovery process?

• What are some of the main challenges for oil production?

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Snapshot of Different EOR Methods

3 groups of the EOR methods:

• Gas injection methods

• Nitrogen injection

• Hydrocarbon injection

• CO2 injection

• Water injection methods

• Micellar/polymer plus alkaline/surfactant/polymer

• Polymer flooding

• Thermal/mechanical methods

• Combustion

• Steam

• Surface mining

• Selecting EOR method

• Technical screening guide

EOR production by EOR method

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• Mechanism description

• Advantages of CO2 flooding

• Restraints for CO2 application

CO2 Flooding in EOR Operations

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Main factors for Successful CO2 Flooding

• Minimum miscibility pressure MMP

• Oil gravity

• Reservoir properties

• Integrated reservoir management

CO2 Sources and Transportation Networks

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Drivers for CO2 Application in EOR Operations

• Large importance of the fossil fuels in

energy consumption

• Higher consumption laverage higher

CO2 emmisions

• Price importance

• Cheap supply of CO2

Natural sources of CO2• Geological sources

• Deep basin sources

• Coalbed origin

No signs of reduction in energy consumption

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CO2-EOR – Profits from CO2 Injection

• Income from extra oil production to pay for CO2 infrastructure

• Free up natural gas resources by using CO2 as injection gas

• Climate change is happening – CCS an important solution coexistence with storage necessary

• Additional oil reserves

Commercial oil reserves January 2007

Economic price US$Billion barrels of O

il

Commercial oil reserves January 2007

Economic price US$Billion barrels of O

il

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Current Status of CO2 EOR Projects

• Great importance in oil production in the U.S.

• Permian Basin the best place for CO2 EOR

• Joint operation of CO2 EOR and CO2 sequestration

• However, more incentives needed Weyburn oil field CO2 EOR

US CO2 EOR production outlook

Production 1,000 bls/d

US CO2 EOR production outlook

Production 1,000 bls/d

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Capture and Storage of CO2

• Capture and Store CO2 seen as a

solution to decrease its impact on the greenhouse gas emissions

• Techniques for CO2 capture

• Post-Combustion

Scrabbing/Capture

• Pre–Combustion Decarbonisation (Hydrogen)

• Oxyfuel or Oxygen-Fired Combustion

• CO2 Removal from Natural Gas

• Potential of the CCS

• Potential impact of CCS on reduction of CO2 emmisions

• Restrictions

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Future technical improvements expected

• Direct CO2 viscosifiers

• Electromagnetic surveys

• Cross – well surveys

• Behind – casing logging

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Major Industry Participants

• Kinder Morgan, TX, USA

• EnCana, Calgary, Can

• Schlumberger, Pittsburgh,

• ElectroMagnetic Instruments Inc., USA

• Advanced Resources Inc., USA

• Fugro Co., TX, USA

• Occidental Petroleum Corporation, TX, USA

• Italian National Agency for New Technologies, ENEA, Italy

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Conclusion

• Pipeline infrastructure will have a major influence on project

economics.

• It is anticipated the initial geographical focus will be primarily

restricted to the Permian Basin since the pipeline infrastructure is

already in place.

• Approach a producer/operator to determine whether it is

interested in exploring the feasibility of an EOR project.

• CO2 is a valuable commodity for enhancing the recovery of oil

and natural gas and some (but maybe not all) infrastructure costs

can be carried by successful projects.

• Importance of cheap CO2 supply.

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For Additional Information

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