CO2 - EOR and its role in CCS
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Transcript of 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
GLOBAL CCS INSTITUTE
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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GLOBAL CCS INSTITUTE
REGIONAL BIAS TOWARDS STORAGE SELECTION
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GLOBAL CCS INSTITUTE
IEAGHG PROGRAMME LARGE CCS PROJECTS
EOR
EOR
SALINE
GLOBAL CCS INSTITUTE
OIL PRODUCTION VOLUMESWeyburn Unit Oil Production
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Date
BO
PD
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Primary & Waterflood
Pre CO2 Hz Infills
Vertical Infills
CO2 EOR
Production through YE 2010
Courtesy Cenovus Energy
GLOBAL CCS INSTITUTE
RESERVOIR SCHEMATIC
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GLOBAL CCS INSTITUTE
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
GLOBAL CCS INSTITUTE
OPTIMIZING STORAGE AT WEYBURN
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IEA Potential Storage Capacity
Latest Forecast
Gro
ss C
O2
Sto
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illio
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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
GLOBAL CCS INSTITUTE
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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GLOBAL CCS INSTITUTE
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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GLOBAL CCS INSTITUTE
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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GLOBAL CCS INSTITUTE
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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GLOBAL CCS INSTITUTE
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
GLOBAL CCS INSTITUTE
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)
GLOBAL CCS INSTITUTE
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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GLOBAL CCS INSTITUTE
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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GLOBAL CCS INSTITUTE
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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GLOBAL CCS INSTITUTE
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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GLOBAL CCS INSTITUTE
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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GLOBAL CCS INSTITUTE
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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GLOBAL CCS INSTITUTE
www.globalccsinstitute.com21