CO2 Utilization for Enhanced Oil and Gas ProductionCO 2 Utilization for Enhanced Oil and Gas Production Presented to: Gasification Technologies 2001 San Francisco, CA Presented by:

COCO22 Utilization for Utilization forEnhanced Oil and Gas ProductionEnhanced Oil and Gas Production

Presented to:

Gasification Technologies 2001San Francisco, CA

Presented by:

Scott StevensJeffrey Eppink

Advanced Resources InternationalArlington, VA

(703) 528-8420 – [email protected]

October 9, 2001

Advanced Resources International

VLG0045.PPT

How oil companies respondto global warming.

www.greenpeace.org

JAF0

1694

.CD

R


VLG0045.PPT

COCO22 Injection Can Boost Injection Can BoostOil and Gas RecoveryOil and Gas Recovery

1. Oil Fieldsw/CO2-EOR:

Currently performed on large scale inUnited States. Widespread potential indepleted oil fields.

2. EnhancedGas Recovery:

3. CoalbedMethane:

Not currently performed, but large CO2storage potential available. Requiresemissions credits.

One commercial pilot underway in the U.S.,second planned. Shows some potential butstill in its early days.


VLG0045.PPT

Enhanced Oil RecoveryEnhanced Oil Recovery

JAF01530.PPT

Reservoir

COPurchases

2 CO Injected

2

Immobile Oil

Recycled CO2

COSequesteredin Reservoir

andImmobile Oil

2


VLG0045.PPT

0

50,000

100,000

150,000

200,000

250,00019

86

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000E

nh

ance

d O

il R

eco

very

(b

arre

ls/d

ay)

0

5

10

15

20

25

30

COCO22 –EOR Production in the U.S. –EOR Production in the U.S.

U.S

. Ave

rag

e C

rud

e O

il P

rice

$/B

O

Oil Price

GULF COASTMID-CONTINENTALASKA (22% CO2)ROCKY MOUNTAINSPERMIAN BASIN


VLG0045.PPT

COCO22–EOR Projects In The USA–EOR Projects In The USA

6

74

538

2 5

Number of CO -EOR ProjectsNatural CO SourceIndustrial CO SourceCO PipelineProposed CO PipelineCommercial CO -EOR Fields

2

2

2

2

2

2

Canada

RockyMountains

PermianBasin

GulfCoast

Mid-Continent

JAF01657.CDR

*

*22% CO2


VLG0045.PPT

Most COMost CO22-EOR Production Takes Place-EOR Production Takes Placein U.S., But Potential Exists Worldwidein U.S., But Potential Exists Worldwide

145,000

18,64026,880

8,000 7,010313

(30,000By 2009)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

U.S.Permian

Basin

U.S.Alaska*

U.S. Rocky

Mountains

Turkey U.S. Mid-Continent/Gulf Coast

Trinidad Canada

En

han

ced

Oil

Pro

du

ctio

n(B

OP

D)

*22% of hydrocarbon miscible flood injectant is CO2 Source:Oil and Gas Journal Survey, March 20, 2000; operator data

m3 /

day

0

3,180

6,360

9,540

12,720

15,900

19,080

22,260

25,440


VLG0045.PPT

Permian Basin COPermian Basin CO22 – EOR Projects – EOR ProjectsMost Use “Geologic CO2”Most Use “Geologic CO2”

##

# #

#

#

# # #

##

#

#

##

#

#Y

#Y

Brushy D raw

Jess Bu rner

Ford W

Chapm an D eep

Ken Regan

mason

V erm ej o

Barstow

Gom ez

Fort St ock ton

McCom b

Oat es

El s i nore

Sand H il ls

Runnin g W

Pecos Val ley

Shi pley

Wards

Mohans

Arenosohal l ey

Em peror

K eyst on

Kermi t

Hendri ck

Rhodes

Jal m at

Toborg

Ti ppet t

McCaney

Univ Waddel l

Dune LeoT hom pson

Wilsh ire

Ama cker- Ti ppett

Jordan

Sweet ie Peck

Dora R obert s

H eadlee

Fost er

Harper

Johnson

TXL

Gold smi th E

Parks

Pegasu s

Ben edu m

Ol son

H alf e

Shannon

WorldWorl d W

Big Lake

Farm er

Ami go

Ketch um Mt

Sugg R anch

Cong er

Calvi nSpra berry

Tren d

David son Ranch

Ozona

Sout h B ranch

In dian Bas in

D agger Draws S

D agger Draw N

At oka

Red L ak e Em pi re

Art es ia

Whit e Ci t y

Carlsbad

Cul eb ra Bl uff s

High Lon esom e

Lo co H ill s

Turkey T rack

Mi ll man E.

Shu gart N.

Lusk

G rayb urg -Jackson

Square L al e

Corbi n

Young N

Shu gart N.

Pearl e

Lea

Hat Mesa

Bi lbrey

Li vin gst on Rid ge

Sand D unesLos Medanos

San d Du nes W.

Gram R idge

A nt el ope R id ge

Kem ni t z

t ownsend

Lo vi ngt on W.

Lovi ngto n

Lovin gt on N

Hobbs

Brow n-B asset tR ussel l N

Monum ent

Eum ont

Euni ce Monum ent

Arrowh ead

Pen Rose S kelleyEu ni ce S. Paddock

Dri nkardTu br

Bli nebery

WantzEu nice N

Hare

Warren

Foul erLangl ie- Matt i x

Langl ey

Dent on

Anderson R anch

Saund ers

Baum

Caprock

Ba gley N

Bagl ey

INBE

Pecos Slop e S

Pecos S lope

Pecos Sl op e W

Tw in Lakes

Cato

Tom ahaw kChaverl oo

Tobac

Fl ying M

Mesca lero

Mi ln esand

To dd

Al lison

Buckshot

Y ellow house

I l lus ion Lak e

Li t t lefi el d

Bi l ly

Sm yer Edm issi on

Pren ti ce

Reeves

Semi nol e W

Robert son N

Robert son

Fla nagan

U nion

Full ert onShaf t er Lake

N ol ley

McFarl and

Magut exH ut ex

Fuhrm an -Mascho

Em ma

U niv Bl ock

Andrews S

Midl and Farms

Andrews NDeep Ro ck

Mart i n

Emb ar

Lowe

Breed love

Tex- H um on Ackerly

Jo- Mil l

Vealm oorOceani c

Moore

Buckw heat

Varel

Lut her SE

Wel ch

Lee Harri son

Sti nnett

Lea

Pecos

C hav es

Ed dy

Reeves

Cul berson

Terrel l

Crocket t

De B aca

R oosevelt

Jeff D avis

Gain es

Iri on

Hale

Upt on

Flo yd

Lynn

La mb

A ndrews

Ect or

Terry

Reagan

Mot l ey

Scurry

Crane

Bai ley

Marti n

C rosby

Bo rden

Di cken s

Sterl i ng

Hock ley

Howa rd Mit ch ell

Midl and

Winkl er

Lubbock

Lovin g

Yoak um

Cochran

Gl asscock

Hob bs

Pecos

Lam esa Snyder

OD ESSA

Lubbock

Roswel l

Artes i a

And rew s

MID L AND

Port ales

Carl sba d

Pl ai nv iew

Lev ell an d

Bi g Spri ng

West Odessa

W ad de ll *

New MexicoTex as

De nver Ci ty

Pucket t F iel dPikes Pea k

El Ma r

Ant o n Ir i sh

We ll man

S. C ros set t

C ord ona L ake

E. P enw el l

N. C ow den

M ean s

E . Fo rd

Se mi no l e

Do l larh id e

Sab le

Han f ord

G M K S ou th

Mi d C ross ett

N. Cro sse t t

E. H un t ley

S alt Cre ek

Re i nec ke

Sla ug ht er

L evel l and *

Ki n gdo m*

B enn et t R an ch

Wa sso n

We st B raha ney

Ada i r

C eda r L ake

Wel c h*

G arza*

Sac roc

M al j amarV acuu m

Fo rd Ger ald in e

N . Ward Est es *

G ol dsm it h

Wad de ll*

M cE lro y

Y at es*

Tw o F reds *

S . C ow den

OklahomaNew Mexico

Texas

MexicoGulfof

Mexico Source: Shell CO2 Company

0

5

10

15

20

25

30

Yea

r

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

CO

2 D

eliv

erie

s (1

06 t/y

)

JAF20013.XLS

Anthropogenic CO2 Natural CO2

Bravo DomeSheep MountainMcElmo Dome

Val Verde BasinGas ProcessingPlants


VLG0045.PPT

Several COSeveral CO22-EOR Projects Sequester-EOR Projects SequesterAnthropogenic Waste COAnthropogenic Waste CO22

Texas Gas Processing 75 4,000 Sharon ExxonRidge, MobilOthers

Colorado Gas Processing 60 3,200 Rangely Chevron

Oklahoma Fertilizer 35 1,900 Purdy AnadarkoSho-Vel-Tum Henry Petroleum

Wyoming Gas Processing 30 1,600 Lost Soldier, Merit EnergyWertz

Alberta Ethylene Plant 25 1,300 Joffre Viking Numac Energy

Saskatchewan Coal Gasification 95 5,100 Weyburn Pan Canadian

Total 320 17,100

State/Province

PlantType

CO2 Supply

MMcfd Tons/DayEOR

Fields Operator

Cf: Sleipner Aquifer Project Injects 2,700 t/day


VLG0045.PPT

Petroleum Production Offers “Off-The-Shelf”Petroleum Production Offers “Off-The-Shelf”Technologies for Geologic SequestrationTechnologies for Geologic Sequestration

EnhancedOil

Recovery

UndergroundGas

Storage

NaturalCO2

Fields

CO2 SequestrationTechnologies

•Capture•Processing•Distribution• Injection

•Field Design•Simulation•Monitoring•Verification


VLG0045.PPT

1. CO2-EOR: Sequestration at Rangely Field, Colorado

Sources: Operator data, ARI estimates

Net CO2Purchases

136 MMBO @ 3.5 Mcf/BO

472 Bcf

25 Mt CO2

136 MMBO @ 8.6 Mcf/BO

1,167 Bcf

62 Mt CO 2

Gross CO2 Inj

472 Bcf

25 Mt CO 2

CODissolved (Sequestered

in Immobile Oil)

2

Net Purchases

Immobile Oil

Immobile Oil

Rangley WeberSandstoneReservoir

Cap RockCO

Emissions2

Unknown VolumeEstimated at

<1% of net CoPurchases

2

Recycled from

Production Wells

695 Bcf

37 Mt CO 2

Vented CO2 from

Production Wells

Unknown VolumeEstimated at <1%

of net COPurchases

2


VLG0045.PPT

“Early Action Credits” May be Important in Future“Early Action Credits” May be Important in Future

U.S. Landfill Concern, Ontario Utility Agree to Swap Gas-Emissions Rights

In a private exchange, anticipating aninternational emission trading system:

Ontario Power Generationbought rights to emit CO2 from

Zahren Alternative Power Corp.

2.5 MMt CO2 Equivalent$25 MM Total Deal$10/ton CO2 Equivalent


VLG0045.PPT

2. CO2 Injection for Enhanced Gas Recovery2. CO2 Injection for Enhanced Gas Recovery



3. CoalbedMethane:

• Inject CO2 into depleted natural gasfields to drive out remaining CH4.

• Contamination of CH4 is major risk.

• No field demos to date, no firm plans.

• Large 800 Gt worldwide sequestrationcapacity, but will need emissions credits.


VLG0045.PPT

•• CO2 Injection forCO2 Injection forEnhanced Enhanced Coalbed Coalbed Methane RecoveryMethane Recovery



3. CoalbedMethane:

• Promising new method

• One large pilot underway since 1996

• Second pilot gearing up

• International pilots planned


VLG0045.PPT

3. Enhanced Coalbed Methane Recovery Using CO2:Burlington Resources Allison Unit CO2-ECBM Pilot, San Juan Basin

#142CO2 Injector

3200

3400

TD=3149'

TD=3390'

TD=3148'Fruitland Coal Seam

N80EN05E3000ft3500ft

3149'

3328'

3059'3049'

3078'3092'3104'

3038'

3124'

#112Production Well

#114Production Well

3077'

3385'

3030'

Note: Depths, elevations, thicknesses expressed in feet

CO2CO2 CH4

CH4

2965'2965'

2900'

0

200

2800

Dep

th (

ft)

3000

JAF01665.CDR


VLG0045.PPT

Location of COLocation of CO22-ECBM Pilots-ECBM Pilots

JAF016

63.C

DR

CH4CH4

CO2CO2

McElmo DomeCO Field2

West TexasCO -EOR2

Los Angeles

Burlington Resources

BP ECBM Pilotsand


VLG0045.PPT

Location of ECBM PilotsLocation of ECBM PilotsSan Juan Basin, USASan Juan Basin, USA

Farmington

Aztec

Dulce

Durango PagosaSprings

COLORADO

NEW MEXICO

LA PLATA CO. ARCHULETA CO.

La Pl a

t a Ri v

e r

An ima s

S an

Juan

Ri v er

Ri v

er

JAF01664.CDR

Burlington Allison

Unit Pilot

BP TiffanyUnit Pilot

McElmo Dome

CO Field2

CO Pipeline

2

F AI R

WA

Y30

mile

s

FloridaGas

Plant


VLG0045.PPT

0

5000

10000

15000

20000

25000

Jul-89 Aug-90 Sep-91 Oct-92 Nov-93 Jan-95 Feb-96 Mar-97 Apr-98

Mcf

/d

0

250

500

750

1000

Bb

l/d

JA

F9

90

57

.X

LS

Gas

Water

Allison Unit 9-Well Total ProductionAllison Unit 9-Well Total Production

CO2 Injection


VLG0045.PPT

U.S. ECBM PotentialU.S. ECBM Potential

Potential ECBM Basin

CBM Basin

CBM Reserve Additions (Tcf)

ECBM Potential (Tcf)

CO2 Pipeline

CO2 Pipeline (proposed)

135-10

Western Washington

Wind River

GreaterGreen River

Uinta0.42-3

Piceance0.1

San Juan13

5-10Raton

0.42-3

ArkomaWarrior

1.8

CentralAppalachia

1.6

Northern Appalachian

IllinoisPowder River0.5

ForestCity

Cherokee0.1


VLG0045.PPT

International COInternational CO22- Enhanced- EnhancedCoalbedCoalbed Methane Recovery Pilots (Planned) Methane Recovery Pilots (Planned)

• ShanxiProvince nearBeijing

• Major coal andpowerproducingregion

China

• U. Silesian Basin,southern Poland

• Major coal andpower producingregion

Poland

• Bowen Basin,SW of Brisbane

• Major coal/powerproducingregion

Australia


VLG0045.PPT

COCO22-ECBM Costs-ECBM CostsInjectant Costs (CO2) $0.25 to $0.35/Mcf(CO2)

CO2/CH4 Ratio (by volume) 2:1

CO2 Costs (40% incremental recovery) $0.50 to$0.70/Mcf

Incremental Capital (undiscounted) $0.13/McfIncremental Operating Costs $0.01/Mcf

Total Costs (undiscounted) $0.64 to$0.84/Mcf

Total Costs (discounted) $0.84 to$1.04/Mcf


VLG0045.PPT

Conclusions: Can Petroleum Industry Use COConclusions: Can Petroleum Industry Use CO22??

§ 1.5 Bcf/day of CO2 consumed in EOR projects – will rise.§ Need to compete with natural geologic CO2 supplies at

$0.50 to $0.70/Mcf, with much lower incr prod costs.§ Many areas haven’t yet been flooded because they are too

far from geologic CO2.

§ Contamination of CH4 reserves by CO2 is major issue.

§ Needs field demo but no firm sites yet.

§ Takes unusually favorable geologic conditions, so far only foundin Rocky Mountain coal basins.

§ New pilots in Poland, China, Australia, and Appalachia planned.

1. Large, Growing and Proven EOR Industry

2. EGR: Unproven and Uncertain Economics

3. Enhanced CBM Looks Promising But Still Early


VLG0045.PPT

AdvancedResources

Internationalwww.adv-res.com

Documents

CO2 Utilization for Enhanced Oil and Gas ProductionCO 2 Utilization for Enhanced Oil and Gas Production Presented to: Gasification Technologies 2001 San Francisco, CA Presented by: