110406 GI Presentation to CSLF ADB Financing CCS Workshop

8/7/2019 110406 GI Presentation to CSLF ADB Financing CCS Workshop

1/13

Schlumberger

Public

CSLF/ADB Financing CCSWorkshop -

View from the sub-surface

Dr Geoffrey Ingram,

Singapore

7th April 2011


2/13

Schlumberger

Public

Agenda

1. What is commercial CO2 storage?

2. What has worked before?

3. What hasnt worked before?

4. What would it take for commercial investment?


3/13

Schlumberger

Public

o a 2 torage ro ects

Studieswith Schlumberger Activity

>C u rre n tly 6 0 C O 2storage/ro e cts stu d ie s

S le ip n e r

In S a la h

C O 2 C R C O tw a yPro je ct

G org o n-Illin o is B a sin D e ca tu rPro je ct

W eyburn

, ,Fo r C C S to b e e ffe ctive it n e e d s to b e b ig w ith h u b s a n d

C a llide


4/13

Schlumberger

Public

CCS works (on an industrial scale )

y of IEA W e ybu rn C O 2 , , ,Storage and Monitoring Project BP Sonatrach and Statoil

W e y b u rn

,Canada atend of 200km

pipeline

Sleipne

rNorwegian

North Sea

InSalahSahara,desert

Algeria

each~ -1 M tonne of CO2per year

CO2can be transported long distances by pipeline

Carbontaxes

!work

Remote regions have fewer public awareness issues


5/13


6/13

Schlumberger

Public

The EP Business Learned to Diversify Front EndRisks- Find & Develop a combination of specific sub-surface conditions

Produce

Explore

Explore

Explore

Explore

Explore

Explore

Appraise

, ,Studies models risk

assessment& campaign drilling

Diverse Risks Across &Plays Prospects Joint Ventures /Technology CostsScale

DevelopExplore

Volume

SeismicLogsPressuresRateLogsSamplesTests Extended Well Tests

Thanks to A J Garnett


7/13

Schlumberger

Public

But .. whats happening in the CO2 world- too early narrowing down to single options

In je ct

E xp lo re

E xp lo re

E xp lo re

E xp lo re

E xp lo re

, ,Studies models siteselection & one bestshot

ersifyks ?

Develop&Explore Appraise

Containment? Sealing Models

Lab studiesRateLogsModels &Samples labCapacitySeismicLogs

C o m p l e xmodellingReactive flowCoupled processes

,flow ,mechanicalchemical

- ,less drilling- & ,more more complex modelling- .no EWT equiv- -more reliance on lab tests- ( )no long term field calibration yet ( )but natural analogues

E x t e n s i v emodelling-Full earth

( )Emissions source terms

. No of prospect tests

%required for 90 confidence inat least one getting to FID ?

EP Prospects 6 8 CO2 sites 2 4 ??

Good to see Carbon Storage

Taskforce plans for a real.exploration phase

Also plans for Hubs


8/13

Schlumberger

Public

Schlumb

ergerPublic

What has workedbefore?

Apologies for the Australia bias!


9/13

Schlumberger

Public

CO2CRC Participants

& E sta bli sh ed s up po rt ed u nd er t he A us tr al ia n G ov er nm en t s C oo per at iv e R es ear ch C en tre s P ro gr am:Supporting Partners The Global CCS Institute | The University of Queensland | Process Group | Lawrence Berkeley National Laboratory | Government of South Australia |

CANSYD Australia


10/13

Schlumberger

Public

Thank you

for more information:www.callideoxyfuel.com

Supporting Collaborators

( / / ) Also CGI in QLD DEEDI ACALET QLD FED SCS Project Manager

Callide Oxyfuel Project Participants


11/13

Schlumberger

Public

Schlumb

ergerPublic

What hasnt workedbefore?

No apologies for the Australia bias!


12/13

Schlumberger

Public

Coring Company

Casing Running Company

Completion Company

Well Testing Company

Slickline Company

Logging Company

Drilling Fluids Company

Cementing Company

What does not work(part 1)

A p p ra isal Pro je ct M a n a g e r

C C S Pro je ct O w n e r

Well Engineering Company

Seismic Consultant

&G G Consultant

Permitting Consultant

Technical Consultant

Operation Manager

Drilling Company

Casing provider

Well Head provider

Liner Hanger provider

Civil Works Company

Data ProcessingContractor

Data ProcessingContractor

Site Assessment Manager

Modeling Contractor

Economist

Risk Consultant

Performance AssessmentContractor

Procurement consultant

LogisticsQHSE Consultant

FEED Manager

Seismic Company

Contract/Reporting Information


13/13

Schlumberger

Public

What can be learnt? What would ittake for investment?

.1 Private capital into CCS competes against other projectsin a multinationals portfolio

.2 No business case for CCS in majority of jurisdictions( )other than EOR in limited circumstances plus

( / )liability a major issue all risk no reward at present.3 Need to deal with the oil and gas industry expertise( ..)but we re all busy with oil and LNG and shale

.4 Consortium approach works well IF INDUSTRY LED with good & , ,PM and QHSE practices bring together O G power coal.etc around a common goal

.5 ( )Government by and large cannot develop projects ontheir own and risk wasting taxpayer $$ if attempting

to do so stay within financing and regulatory domain

but don t get hung up on monopolies or esoteric risk(& !!)allocations PS don t believe capacity estimates.6 CCS will be the domain of the large companies for

,technology people and likely financing.7 &Need to incentivise early movers for projects build

on that momentum8.

Documents

110406 GI Presentation to CSLF ADB Financing CCS Workshop