CO2 - EOR and its role in CCS

GLOBAL CCS INSTITUTE

CO2-EOR and its role in CCSGlobal CCS Institute Member’s Meeting

Bergen, Norway, May 2012

WWW.GLOBALCCSINSTITUTE.COM


OUTLINE

What CO2-EOR is, and what it isn’t

– Is it abatement?

– Is it the business case needed for CCS?

Global CCS Institute activities

– Thematic Program

– Workshops

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REGIONAL BIAS TOWARDS STORAGE SELECTION

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IEAGHG PROGRAMME LARGE CCS PROJECTS

EOR

EOR

SALINE


OIL PRODUCTION VOLUMESWeyburn Unit Oil Production

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05

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10

Date

BO

PD

(g

ros

s)

Primary & Waterflood

Pre CO2 Hz Infills

Vertical Infills

CO2 EOR

Production through YE 2010

Courtesy Cenovus Energy


RESERVOIR SCHEMATIC

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STORAGE SITE OPERATIONS

Weyburn Unit 55,000 acres (85mi2)

1.4 Billion bbls OOIP

• Sour crude 25-43 API

• 160 million bbls incremental

~ 300 injector wells

• 160 water only

• 110 WAG

• 17 CO2 only

700 producers

~50% wells are Hz and 50% vertical


OPTIMIZING STORAGE AT WEYBURN

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IEA Potential Storage Capacity

Latest Forecast

Gro

ss C

O2

Sto

rag

e (m

illio

n t

on

nes

) IEAGHG Estimated CO2 Storage = ~55 MT

Total CO2 Stored = 23.2 MT

Expected EOR usage > 30 MT

EOR Operations

Potential Storage Operations

~19 Million Tonnes Stored to Date

equivalent to removing more than 9 million cars off the road for 1year


IS CO2-EOR ABATEMENT?

Maybe...if

– Anthropogenic CO2

– Recycled

– Monitored

CO2 Life Cycle Analyses (maximize storage)

Transition to dedicated storage site possible or likely

CDM

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CO2-EOR PROJECT (THEMATIC)

Institute develop an integrated framework around CO2-EOR

– Technical

– Legal / Regulatory

– Economic / Commercial

Have technical, legal/regulatory, economic, and commercial skills in house

International perspective – based largely upon US experience but includes elsewhere

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TECHNICAL

CO2-EOR established process

CO2-EOR strives to minimize CO2 usage – at odds with maximizing storage

Life Cycle – project boundaries important

MMV implementation

– Accounting, verification

– Can this start mid-stream in operations

Closure (abandonment) of legacy wells

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TECHNICAL

“next-generation”

– Residual Oil Zone (ROZ)

– Infield drilling

– Methods to improve miscibility

– Conformance control

ARI (2011) suggests employing advanced CO2-EOR methods over 30 years could require over 650 Mt/yr – or about 10% of US emissions

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COMMERCIAL

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2010 2015 2020 2025 2030 2035

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EIA - Reference

Bloomberg

Mt/

yr

2010 2015 2020 2025 2030 2035

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EIA - Reference Case

Bloomberg

000

bbl/

day

CO2-EOR Oil production in the U.S U.S. CO2 demand for EOR

Currently 5 % of US production is from CO2-EOR.

2011 data

2012 predictions much lower


Source of CO2 for EOR in the U.S.

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Captured sources

Natural Sources

Mt/yr

Source: Annual Energy Outlook 2011, U.S. Energy Information Administration, Issues in Focus, web link: http://www.eia.gov/forecasts/aeo/IF_all.cfm , (accessed on February 24, 2012)

http://www.eia.gov/forecasts/aeo/IF_all.cfm


ADDITIONAL CO2

Capture projects in construction will increase A-CO2 supply soon

– 3.5 Mt/yr from coal

– 12.4 Mt/yr from gas plants

– 1.8 Mt/yr from fertilizer/hydrogen plants

Natural CO2 supply will also increase by 14.8 Mt/yr (under construction)

Limited need for additional projects to provide captured CO2 before 2020.

Significant requirement/demand for captured CO2 after 2020

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LEGAL & REGULATORY

Considers the relationship between existing regimes for EOR activities with the nascent regulatory regimes for Carbon Capture and Storage (CCS).

Examines the ‘gap’ between these regimes and the potential for a project to transition from EOR to full-scale storage (CCS).

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LEGAL & REGULATORY

Approach considers various storage scenarios

– Study identified five potential storage scenarios, their component activities and types of CO2 utilised

Operational legal and regulatory frameworks in US and Canada demonstrate elements exist that can accommodate A-CO2 in EOR

Integration of A-CO2 into operations that are part of a storage regime is feasible; however several issues will need to be resolved.

– Pore ownership, long-term liability, status of re-use of stored CO2

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BARRIERS TO CO2-EOR

Lack of readily available, high quality CO2

Requires a long-term commitment

– Strategic versus opportunistic outlook required

Economies of scale required

– Need an “anchor” reservoir with material oil in-place

– Ownership fragmentation must be addressed (e.g. Unitization)

Difficult to get multiple partners to agree to upfront capital investment

Limited technical expertise

Certain corporate structures less suited to take on CO2-EOR risks

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INSTITUTE WORKSHOPS & ACTIVITIES

CO2-EOR workshop in China (March 2012)

– Over 120 attendees day 1

CO2-EOR module as part of workshop associated with International Geological Congress, Brisbane, August 2012

EOR Project complete mid-year

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SUMMARY

CO2-EOR can provide a business case for injection and associated storage of CO2

Commercial drivers suggest demand for captured CO2 will increase

Legal and regulatory hurdles can, and are, being addressed

Does provide avenue for mitigating GHG emissions to atmosphere

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www.globalccsinstitute.com21

Technology

CO2 - EOR and its role in CCS