CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
JAF028360.PPT August 31, 20111
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
Prepared For:
World Bank CCS Training Session
Prepared By:
Vello Kuuskraa, PresidentADVANCED RESOURCES INTERNATIONAL, INC.
Arlington, VA
Hosted by:
World Bank CCS Trust Fund
Conducted by:
SECARB-Ed
World Bank ▪ Washington, DC ▪ September 6, 2011
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
JAF028360.PPT August 31, 20112
Discussion Outline
1. Introduction to CO2 Enhanced Oil Recovery (CO2-EOR)
2. Two Key ARI Reports Prepared for U.S. DOE/NETL:
• Storing CO2 and Producing Domestic Crude Oil with “Next Generation” CO2-EOR Technology (January, 2009)
• Improving Domestic Energy Security and Lower CO2 Emissions with “Next Generation” CO2-Enhanced Oil Recovery (June, 2011)
3. Worldwide Assessment of CO2-EOR Oil Recovery and CO2 Storage
We would like to acknowledge the valuable support provided by U.S. DOE/NETL for this presentation and its foundation reports.
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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JAF01981.CDR
Zone o fEfficient S w eep
Purchased CO 2Anthropogenic and/or
Natural Sources
InjectedCO 2
Im m obile Oil
Im m obile Oil
Recycled CO 2 from
Production Well
COStored in P oreSpace
2 CO Dissolved (Sequestered)in the Im m obile
O il and G as Phases
2
DriverWater
WaterMiscible
ZoneOil
Bank
AdditionalOil
RecoveryCO2 CO2
What is CO2-EOR?
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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LaBargeGas PlantLaBarge
Gas Plant
Val VerdeGas PlantsVal Verde
Gas Plants
Enid Fertilizer PlantEnid Fertilizer Plant
JacksonDome
JacksonDome
McElmo DomeSheep Mountain
Bravo Dome
McElmo DomeSheep Mountain
Bravo Dome
11
8
1668
6
Dakota CoalGasification
Plant
Dakota CoalGasification
Plant
Antrim GasPlant
Antrim GasPlant
21
1
Most CO2-EOR activity currently in North America
Currently, 114 projects provide 281,000 B/D in U.S.
Additional projects planned to help increase CO2 supply to CO2-EOR
–Natural & anthropogenic–New CO2 pipelines
1
Source: Advanced Resources International, Inc., based on Oil and Gas Journal, 2010 and other sources.
Number of CO2-EOR Projects
Natural CO2 Source
Industrial CO2 Source
Existing CO2 Pipeline
CO2 Pipeline Under Development
114
Encore Pipeline
Denbury/Green Pipeline
U.S. CO2-EOR Activity – Oil Fields and CO2 Sources
Lost Cabin Gas PlantLost Cabin Gas Plant
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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Growth Of CO2-EOR Production in the U.S.
0
50,000
100,000
150,000
200,000
250,000
300,000
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Year
Enh
ance
d O
il R
ecov
ery
(bar
rels
/day
)
GULF COAST/OTHERMID-CONTINENTROCKY MOUNTAINSPERMIAN BASIN
JAF2010_031.XLS
Source: Advanced Resources Int’l. and Oil and Gas Journal, 2010.
Source: Advanced Resources Int’l., based on Oil and Gas Journal, 2010.
Incr
emen
tal O
il R
ecov
ery
(bar
rels
/day
)
Significant further growth in production constrained by available supplies of CO2
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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A Major CO2 Pipeline
Exists in the
Permian Basin, West Texas
Over 3,000 miles of large diameter CO2 pipelines have been installed and operated in the Permian Basin of West Texas linking natural gas processing plant CO2 supplies with oil fields.
The large volume (30-inch), long distance (502-mile) Cortez Pipeline from McElmo Dome to Denver City was constructed by Shell Oil in the early 1980s. It has a current throughput capacity of 1.3 Bcfd (25 MMmt/yr.)
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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Significant Volumes of CO2 Are Already Being Injected for EOR in U.S. (Year 2011)
* Source: Advanced Resources International, 2011**MMCfd of CO2 can be converted to million metric tons per year by first multiplying by 365 (days per year) and then dividing by 18.9 * 10 3
(Mcf per metric ton)
State / Provincefor EOR / Storage CO2 Source Type and Location
CO2 Supply (MMcfd/million mt)
Geologic Anthropogenic
Texas-Utah-New Mexico-Oklahoma
Geologic (Colorado-New Mexico)Gas Processing (Texas) 1,575 340
Colorado-Wyoming Gas Processing (Wyoming) - 340
Mississippi Geologic (Mississippi) 1,100 -
Michigan Ammonia Plant (Michigan) - 15
Oklahoma Fertilizer Plant (Oklahoma) - 30
Saskatchewan Coal Gasification (North Dakota) - 150
TOTAL (MMcfd) 2,675 875
TOTAL (million mt) 52 17
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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Advanced Power Plants Using EOR for Storage
Storing CO2 and Producing Domestic Crude Oil with “Next Generation” CCS and CO2-EOR Technology
• 400 MW IGCC with 90% capture
• Located near Odessa in Permian Basin
• Sell 3 million tons of CO2 per year to EOR market
• Expected cost $1.75 B; $350 MM award under CCPI Round 3.
Summit’s Texas Clean Energy IGCC Project
Source: Siemens Energy
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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CO2- EOR Activity Outside of U.S.
Area(Acres) Formation Depth
Oil Gravity Viscosity
Canada
Weyburn Unit 9,900 LS/Dolo 4,660’ 28o 3 cpJoffre 6,625 Sand 4,900’ 42o 1 cp
Trinidad
Forest Reserve 500 Sand 2,000-4,200’ 17-25o 10-100+ cpOropouche 175 Sand 2,400’ 29o 5 cp
Turkey
Bati Raman 12,890 LS 4,260’ 13o 590 cp
Hydrocarbon miscible and nitrogen EOR projects exist in Canada, Libya, UAE, Mexico and Venezuela that would be favorable and convert to CO2-EOR
In addition, CO2-EOR has been discussed for fields in North Sea and China.
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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“Poster Child” for Integrating CO2-EOR and CO2 Storage
Regina
Weyburn
CO2
Beulah
North Dakota
Saskatchewan
Montana
ManitobaCanada
USA
Canada
USA
Source: EnCana, 2005
• Largest CO2 EOR project in Canada:
– OOIP 1.4 Bbbls – 200 MMB incremental oil from CO2-EOR
• World’s largest geological CO2 storage project:– 2.4 MMt/year (current)– 13 MMt to date– 30 MMt with EOR– 55 MMt with EOR/sequestration
(compared to 60 MMt from incremental oil from CO2-EOR)
• A 200 mile CO2 pipeline connects the Coal Gasification Plant at Beulah, ND with the Weyburn oil field in Canada.
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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Potential of “Next Generation” CO2-EOR Technology
Two key reports prepared by Advanced Resources Int’l for U.S. DOE/NETL:
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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Large Volumes Of Domestic Oil Remain “Stranded” After Traditional Recovery Operations
Original Oil In-Place: 597 B Barrels*
“Stranded” Oil In-Place: 393 B Barrels*
Proved Reserves22 Billion Barrels
Future Challenge393 Billion Barrels
Cumulative Production182 Billion Barrels
Source: Advanced Resources Int’l. (2009)
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“Next Generation” CO2-EOR Technology
• Innovative Flood Design and Well Placement. Adding horizontal production wells and vertical CO2 injection wells, enabling CO2 to contact residual oil from poorly swept portions of the reservoir.
• Viscosity and Miscibility Enhancement. Adding mobility control with viscosity enhancers and lowering MMP with miscibility enhancers.
• Increased Volume of CO2 Injection. Injecting up to 1.5 HCPV of CO2 compared to 1.0 HCPV under “best practices”.
• Flood Performance Diagnostics and Control. Instrumented observation wells and downhole sensors to monitor progress. Periodic 4-D seismic and pressure plus zone-by-zone flow tests (among others) to “manage and control” the CO2 flood.
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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CO2Injection
CO2Injection
CO2 SourceCO2 SourceOil to MarketOil to Market
Production WellProduction Well
CO2Recycled
CO2Recycled
Current Water Oil Contact
Current Water Oil Contact
Original Water
Oil Contact
Original Water
Oil Contact
Stage #1Stage #1
Stage #2Stage #2
Stage #3Stage #3TZ/ROZTZ/ROZ
Unswept AreaUnswept Area
Oil BankOil Bank
Swept AreaSwept Area
Saline ReservoirSaline Reservoir
Integrating CO2-EOR and CO2 Storage Could Increase Storage Potential
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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Oil Recovery Performance From Permian Basin San Andres Formation
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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*$100/Bbl Marker PriceSource: Occidental Petroleum Corporation, May 2011
Updated Typical Permian Basin CO2-EOR Project Cost Structure (Occidental Petroleum)
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
JAF028360.PPT August 31, 2011
Domestic Oil Supplies and CO2 Demand (Storage) Volumes from “Next Generation” CO2-EOR Technology
Bill
ion
Bar
rels
of R
ecov
erab
le O
il
0
50
75
100
125
25
150137
45
67
20
Potential Oil Recovery CO2 Demand**
Source: Advanced Resources Int’l (2011).
*At an oil price of $85/B, a CO2 market price of $40/mt and a 20% ROR, before tax.**Includes 2,300 million metric tons of CO2 provided from natural sources and 2.6 billion barrels already produced or being developed with miscible CO2-EOR.
Bill
ion
Tons
of C
O2 S
tora
ge
0
20
30
40
50
10
60
Technical Economic* Technical Economic*
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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Volumes of Anthropogenic CO2 Storage Capacity Available from “Next Generation” CO2-EOR Technology
Num
ber o
f 1 G
W S
ize
Coa
l-Fire
d Po
wer
Pla
nts*
0
200
300
100
240
105
Technical Demand/Storage Capacity Economic Demand/Storage Capacity**
*Assuming 7 MMmt/yr of CO2 emissions, 90% capture and 30 years of operations per 1 GW of generating capacity.**At an oil price of $85/B, a CO2 market price of $40/mt and a 20% ROR, before.
Source: Advanced Resources Int’l (2011).
Total CO2 Anthropogenic CO2 Total CO2 Anthropogenic CO2
228
93
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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Worldwide Potential for Using
CO2-EOR to Store CO2 and
Recover Additional Oil
Advanced Resources prepared for the International Energy Agency Greenhouse Gas Programme (IEA GHG) an assessment of CO2 storage and oil recovery potential offered by CO2-EOR.
CO2 supplies are primarily from new CO2 emissions capture facilities with pipeline transportation from power plants, cement plants and refineries to geologically favorable oil fields.
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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World Potential from CO2 Enhanced Oil Recovery
Region Name Basin Count
Asia Pacific 8Central and South America 7Europe 2Former Soviet Union 6Middle East and North Africa 11North America/Other 3North America/United States 14South Asia 1S. Africa/Antarctica 2Total 54
Assessed 54 large world oil basins, including 14 in the U.S., for CO2-based Enhanced Oil Recovery.• High level, 1st order assessment of CO2-
EOR and associated storage potential, using U.S. experience as analog.
• Tested basin-level estimates with detailed modeling of 47 large oil fields in 6 basins.
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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CO2 Storage Potential with CO2-EOR (Including Reserves Growth)
Region Number ofFields
CO2-EOR Potential(Billion Barrels)
CO2 Storage Potential (billion tonnes)
1. Asia Pacific 30 30 8
2. C. & S. America 60 60 20
3. Europe 28 28 8
4. FSU 152 152 42
5. Middle East/N. Africa 412 125
6. N. America/Non U.S 29 29 9
7. United States 121 121 34
8. South Asia 1 - -
9. S. Africa/Antarctica 49 49 15
Subtotal 881 881 261
Add’l w/ Res. Growth - 191 57
TOTAL 881 1,072 318
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Large Oil Fields with CO2-EOR Potential Near Jordan
Text
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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Proximate to Jordan Oil Fields Potentially Favorable for Miscible CO2-EOR
Distance and
Ultimate
Primary/Secondary
Recovery
Average
Depth
Maximum
Depth
Minimum
Depth
Geologic Province (MMBbls) (Ft) (Ft) (Ft)
Fields Within 500 Miles (800km)Mesopotamian Foredeep Basin 1 16,000 10,000 10,000 10,000Red Sea Basin 6 4,804 8,631 12,050 5,750
Totals 7 20,804
Fields Within 500 - 1,000 Miles (800km-1,000km)Mesopotamian Foredeep Basin 57 355,554 8,032 14,609 3,900Zagros Fold Belt 16 103,468 7,152 15,420 3,500Greater Ghawar Uplift 5 98,270 7,618 13,500 5,550Interior Homocline-Central Arch 7 22,529 8,352 13,720 4,760Widyan Basin-Interior Platform 7 5,950 9,873 10,760 8,200
Totals 92 585,771J AF2011_050.XLS
Number of Oil
Fields
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Existing Regulatory Framework for CO2-EOR in the U.S.
• The U.S. and other countries have experience in regulating the transport and injection of CO2 used for CO2-EOR
• These address most – but not all – of the issues that will need to be addressed for CCS
• Efforts are underway, both in the U.S. and abroad, to address existing gaps. In the U.S., these include:
– Federal EPA Class VI well rulemaking for CO2 injection wells used for storage
– Federal EPA Class RR section of the EPA Mandatory GHG Reporting Rule on monitoring and reporting on “emissions” from CO2-EOR and CO2 storage operations
– Other efforts are underway at the state level as well in the U.S.
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Conclusions
1. CO2-EOR is not a new phenomena
• Underway > 30 years in favorable fields with access to affordable CO2
2. Worldwide, CO2-EOR has potential to produce up to 1,072 billion barrels
3. And store up to 318 billion metric tons of CO2
• Equivalent to the emissions of 1,680 one-GW size coal-fired power plants for 30 years of operation*
4. Numerous options and actions could further increase oil recovery and CO2 storage capacity – but depend on the availability of reliable, affordable CO2
*Assuming 7 MMmt/yr of CO2 emissions, 90% capture and 30 years of operation per 1 GW of generating capacity.
CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery
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