Estimating Crude Oil Production Carbon Intensity

May 6, 2010California Air Resources Board

2

Challenges in Quantifying Carbon Intensity for Crude Oil Production

• Wide variation in production GHG emissions for crude oils– Crude oil properties– Reservoir characteristics

• Depth • Water to oil ratio• Gas to oil ratio• Gas composition

– Flaring and venting of produced gas– Treatment of produced water and gas– Production method and technology

• primary, secondary, tertiary• Reservoir characteristics change

over time• Less gas• More water• Less production

Higher CI

3

Wide Range in Reservoir Characteristics

0 2 4 6 8 10 12

World

US

Mars

Canada

China

Mexico

Venezuela

Saudi

Water to Oil Ratio

• Crude oil density varies from < 15 API to over 45 API

• Water to oil varies widely – WOR in some older fields over 50 bbl/bbl

• Gas to oil: 0 to over 10,000 SCF/bbl

• CO2 in associated gas: over 10% in some wells in the North Sea

• Enhanced oil recovery (EOR)– Nitrogen injection in Cantarell field

(Maya) from world’s biggest N2plant (500 Mw power plant)

– Steam assistance for heavy oils in Venezuela; CA; Canada

• Flaring: near zero in Saudi Arabia; as high as 20% of the crude energy content in Nigeria

Water to Oil Ratio

4

Nigeria

Iraq

Saudi ArabiaMexicoUSA

Venezuela

0 5 10 15 20

CO2e, g/MJ of Crude

Saudi ArabiaMexicoUSAVenezuelaChinaUKKuwaitMalaysiaEgyptIndonesiaLibyaRussiaIranAlgeria QatarOmanIraqKazakhstanAngolaNigeriaGabonUzbekistan

GREET DefaultFor Flaring

Worldwide Flaring of Associated Gas

A Twelve Year Record of National and Global Gas Flaring Volumes Estimated Using Satellite Data - Final Report to the World Bank - May 30, 2007 – Table 4

5

Address Key Issues by Modeling Crude Oil Production

FIGURE: RESERVOIR PRODUCTION PROCESS FLOW DIAGRAM

ENERGY CONSUMERS FOR RECOVERY OF: Gas Re-injection CompressorOILOIL + WATEROIL + WATER + GAS

ReboilerReboilerReboiler

Water Re-injection PumpDeaeration Water Re-injection PumpDeaeration

Downhole Pump

Dehydration

Separator

Stabilizer

Filtration / Bacteria Removal

Water Re-injection

To LNG Plant

Gas Re-injection

To Stock Tanks

From Oil Reservoir

H2S Processing Claus Plant

CO2 Removal Flare

Sulfur

CO2

SalesFuelEngines

Deaeration

Desalination

Disposal

Gas Lift

Lifing

Separation

Treating

Treating

Reinjection

Reinjection

Disposal

Disposal

FIGURE: RESERVOIR PRODUCTION PROCESS FLOW DIAGRAM

ENERGY CONSUMERS FOR RECOVERY OF: Gas Re-injection CompressorOILOIL + WATEROIL + WATER + GAS

ReboilerReboilerReboiler

Water Re-injection PumpDeaeration Water Re-injection PumpDeaeration

Downhole Pump

Dehydration

Separator

Stabilizer

Filtration / Bacteria Removal

Water Re-injection

To LNG Plant

Gas Re-injection

To Stock Tanks

From Oil Reservoir

H2S Processing Claus Plant

CO2 Removal Flare

Sulfur

CO2

SalesFuelEngines

Deaeration

Desalination

Disposal

Gas Lift

Lifing

Separation

Treating

Treating

Reinjection

Reinjection

Disposal

Disposal

Lifing

Separation

Treating

Treating

Reinjection

Reinjection

Disposal

Disposal

Crude Description

Crude Name Generic

Production Rate bpd 545

Properties

API 30.0SG 0.8762

Sulfur wt% 2.0

Heating value LHV

Crude Heating Value GJ/Bbl 5.82

Reservoir CharacteristicsReservoir Pressure psi 3,000Reservoir Temperature °F 200Reservoir Depth ft 5,000

Production CharacteristicsGas/Oil Ratio scf/bbl 1,000Water/Oil Ratio bbl/bbl 10.0Gas Lift NoGas Lift Rate SCFB 0.0Diluent Lift - Use if API below: 25.0

Produced Gas Composition (mol%)Source for Gas Composition DefaultInput Gas Compositon

CH4 mol% 79.74%C2H6 mol% 14.95%C3H8 mol% 4.98%CO2 mol% 0.00%H20 mol% 0.33%

Gas Heating Value - LHV BTU/SCF 1,082Gas Heating Value - LHV w/o CO2 BTU/SCF 1,086

Venting of Produced GasVent Loss % 0.5%Fugitive Loss % 0.5%

Reinjection of Gas and WaterGas Reinjection: % of Gas After Vent/Fugitive % 50.00%CO2 Separaton NoCO2 Reinjection: % % 100.00%Water Reinjection: % of Produced Water % 100.00%Treatment of Reinjected Water YesTreatment of Discharged Water Yes

Disposal of Non-Reinjected GasAmount of Non-Reinjected Gas scf/bbl 500.0

Proportion of Gas to Flare % 1.0%Proportion of CO2 to Flare/Vent % 50.0%

Flaring of Produced Gas% Combusted % 99%% Non-Combusted % 1%

Fuel for Drivers and HeatersDownhole Pump Driver Natural GasWater Reinjection Pump Driver Natural GasCompressor Driver Natural GasFired Heaters Natural GasWater Treatment Natural GasAmine Treater - Fired Heaters Natural GasAmine Treater - Drivers for Motors Natural Gas

• Jacobs developed a crude oil production model to predict GHG emissions for specific crudes

• Uses fundamental unit operations

• Based on public data supplemented with Jacobs in-house knowledge

• Allows user to evaluate impact of key variables and carry out sensitivity studies

Model InputsCrude Oil Production Model

Water Reinjection

49%

Gas Reinjection

7%

Water Treatment

9%

Gas Treatment

16%

Venting10%

Flaring1%

Misc Energy8%

Lifting0%

CO2e Outputs by Category

6

0

5

10

15

20

3 10 15 3 10 15 3 10 15

Water to Oil Ratio

Tota

l CO

2e, g

/MJ

of C

rude

Misc EnergyFlaringVentingGas TreatmentWater TreatmentGas ReinjectionWater ReinjectionLifting

Impact of Depth and WOR on CO2 Emissions

5,000 ft 10,000 ft 20,000 ft

Based on Jacobs crude oil production model for a generic crude: Pressure: 1,500 psi; GOR: 1,000 SCFB; Venting: 1%; Flaring: 1%; 50% Gas Reinjection

7

0

5

10

15

20

Bachaq

uero Maya

ArabMed

MarsBonny L

tKirk

uk Blen

d

Tota

l CO

2e, g

/MJ

of C

rude

Nitrogen

Steam

Misc Energy

Venting

Gas Treatment

Water Treatment

Gas Reinjection

Water Reinjection

Lifting

Base Emissions for Crudes in AERI Study Without Flaring

GREET Default

Results for crudes evaluated in AERI study

8

0

5

10

15

20

Bachaq

uero Maya

ArabMed

MarsBonny L

tKirk

uk Blen

d

Tota

l CO

2e, g

/MJ

of C

rude

Nitrogen

Steam

Misc Energy

Flaring

Venting

Gas Treatment

Water Treatment

Gas Reinjection

Water Reinjection

Lifting

Add Gas Flaring

GREET Default

Results for crudes evaluated in AERI study

9

Include Thermally Produced Crudes

0

5

10

15

20

Bachaq

uero

Maya

Arab M

edium Mars

Bonny L

ightKirk

ukCA TE

ORBitu

men-S

AGDBitu

men-M

ining

GH

G, g

CO

2e/M

J of

Cru

de/B

it

Venting and Flaring

Production

10

Screening for Crude Oils With CI > 15 g/MJ

• Crude oils produced with high gas flaring• Crude oils with high WOR• Crude oils from great depths• Crude oils with high GOR and poor housekeeping• Crude oils produced with high CO2 content in

associated gas• Crudes produced with high steam to oil ratios• Crudes produced with EOR

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Availability of Data

• Generally not available from production companies – proprietary, incomplete, or too consolidated

• Public sources– OGJ and IHS databases on reservoirs – Journals, magazines

• OGJ• Society of Petroleum Engineers• Offshore Magazine

– World Bank/NOAA report on gas flaring– Data from govt sources: state, federal, – Crude oil producers associations– Then there is the internet…

12

Further Background

www.albertainnovates.ca/media/15753/life%20cycle%20analysis%20jacobs%20final%20report.pdf