COCO22 Storage in Depleted Oil Fields: Storage in Depleted Oil Fields: The Worldwide Potential for Carbon DioxideThe Worldwide Potential for Carbon DioxideThe Worldwide Potential for Carbon Dioxide The Worldwide Potential for Carbon Dioxide

Enhanced Oil RecoveryEnhanced Oil RecoveryPresenter: Michael L GodecPresenter: Michael L. GodecAdvanced Resources International

Coauthors:Vello A Kuuskraa ARIVello A. Kuuskraa, ARITyler Van Leeuwen, ARI

L. Stephen Melzer, Melzer ConsultingNeil Wildgust, IEA GHG

1

September 22, 2010

What is COWhat is CO22--EOR?EOR?

Purchased CO2Anthropogenic and/or

Natural SourcesInjected

CO2

Recycled CO2 from

Production Well

Zone ofEfficient Sweep

Immobile Oil

COCO Di l d (S t d) COStored in PoreSpace

2 CO Dissolved (Sequestered)in the Immobile

Oil and Gas Phases2

DriverWater Water Miscible

ZoneOil

BankAdditional

OilRecovery

CO2 CO2

2

JAF01981.CDR

Immobile Oil

Advanced Resources International

Study ObjectivesStudy Objectives

1. How large is the world-wide oil resource gpotential offered by CO2-EOR• Along with associated CO2 storage capacity

2. What factors have facilitated or hindered the wide-scale deployment of CO2-EOR?

3 What set of actions could significantly3. What set of actions could significantly increase storage potential from the integrated application of CO2-EOR and CO2 storage?

3

Overview of StudyOverview of Study

1. Reviewed worldwide CO2-EOR operations 2 pconducted to date (successes and failures)

2. Built database of world’s largest 54 oil basins• 95% of world’s recoverable oil potential

3. Assessed CO2-EOR oil recovery and CO2storage capacity potential in these basinsstorage capacity potential in these basins• Using the U.S. experience as analogue

4 Examined ways to expand CO2 storage4. Examined ways to expand CO2 storage capacity in conjunction with CO2-EOR

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U.S. COU.S. CO22--EOR Activity EOR Activity –– Oil Fields and COOil Fields and CO22 SourcesSources

Dakota CoalGasification

Number of CO2‐EOR Projects

Natural CO2 Source

114

LaBarge 6

Plant

Antrim GasPlant

Industrial CO2 Source

Existing CO2 Pipeline

CO2 Pipeline Under Development

Encore PipelinegGas Plant

Enid Fertilizer PlantM El D

116

21

1

Most CO2-EOR activity currently in North America

Currently, 114 projects provide 281 000 B/D i U S

Encore Pipeline

Lost Cabin Gas Plant

JacksonDome

McElmo DomeSheep Mountain

Bravo Dome8

68

1 281,000 B/D in U.S. Additional projects planned to

help increase CO2 supply to CO2-EOR1

Val VerdeGas Plants

16 Natural & anthropogenicNew CO2 pipelines

Source: Advanced Resources International Inc based on Oil and Gas Journal 2010 and other sources

Denbury/Green Pipeline

5

Source: Advanced Resources International, Inc., based on Oil and Gas Journal, 2010 and other sources.

Growth Of COGrowth Of CO22--EOR Production in the U.S.EOR Production in the U.S.22

300,000

GULF COAST/OTHER

JAF2010_031.XLS

Significant further growth in production constrained by available supplies of CO

200,000

250,000GULF COAST/OTHERMID-CONTINENTROCKY MOUNTAINSPERMIAN BASIN

(bar

rels/

day)

constrained by available supplies of CO2

150,000

Oil R

ecov

ery (

50,000

100,000

Incr

emen

tal

01986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Year

6

Source: Advanced Resources Int’l., based on Oil and Gas Journal, 2010.

Overview of Resource Assessment Overview of Resource Assessment Methodology Methodology gygy

1. Select oil basins favorable for CO2-EOR operations2. Estimate the volume of original oil in place (OOIP) in

world oil basins3 Characterize oil basins and the potential fields within3. Characterize oil basins, and the potential fields within

these basins, amenable to CO2-EOR4. Estimate CO2-EOR flood performance/recovery

efficiencyefficiency5. Estimate the volume of oil technically recoverable

with CO2-EOR6. Estimate volume of CO2 that could be stored by these

CO2-EOR operations

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World Characterization Based on Detailed World Characterization Based on Detailed Assessment of COAssessment of CO22--EOR Potential In U.SEOR Potential In U.S. .

Ad anced Reso rces assessedAdvanced Resources assessed potential of applying “state-of-the-art” CO2-EOR in the U.S.: • 82 billion barrels of technically recoverable resource • 37 to 68 billion barrels of economically recoverable

resource, depending on oil price and CO2 costs.

Results are based on applying streamline reservoir simulation and economic analyses to over 6,000 large oil reservoirs (75% of U.S. oil production). g ( p )

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Basins Assessed for COBasins Assessed for CO22--EOR PotentialEOR Potential

B i Region Name Basin Count

Asia Pacific 8Central and South America 7Europe 2Former Soviet Union 6Middle East and North Africa 11

Assessed 54 large world oil basins for CO2-based Enhanced Oil Recovery

• High level 1st order assessment of CONorth America/Other 3North America/United States 14South Asia 1S Africa/Antarctica 2

• High level, 1st order assessment of CO2-EOR and associated storage potential, using U.S. experience as analog.

• Tested basin-level estimates with detailed

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S. Africa/Antarctica 2Total 54

modeling of 47 large oil fields in 6 basins.

COCO22--EOR Potential in World’s Oil Basins* EOR Potential in World’s Oil Basins* (Billions of Barrels)(Billions of Barrels)(Billions of Barrels)(Billions of Barrels)

RegionCO2-EOR, Discovered

FieldsCO2-EOR,

UndiscoveredResources

TotalPotential

L S ll ResourcesLarge Small1. Asia Pacific 18 7 5 302. C. & S. America 32 12 16 603. Europe 16 6 6 284. FSU 79 29 44 1525. M. East/N. Africa 231 85 96 4125 ast/ ca 3 85 966. NA/Other 18 7 4 297. NA/U.S.** 60 23 38 1218 South Asia8. South Asia - - - -9. S. Africa/Antarctica 15 5 29 49

TOTAL 469 174 238 881

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* Includes potential from discovered and undiscovered fields, but not estimated future growth in discovered fields

** Not including offshore & Alaska

COCO2 2 Storage Potential with COStorage Potential with CO22--EOR (inc. EOR (inc. Reserves Growth) Reserves Growth)

Region CO2-EOR Potential(Billion Barrels)

CO2 Storage Potential ( billion tonnes)

1. Asia Pacific 30 82. C. & S. America 60 203. Europe 28 8p4. FSU 152 425. Middle East/N. Africa 1256 N America/Non U S 29 96. N. America/Non U.S 29 97. United States 121 348. South Asia - -9. S. Africa/Antarctica 49 15Subtotal 881 261Add’l w/ Res. Growth 191 57

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TOTAL 1,072 318

Storage Potential Associated with COStorage Potential Associated with CO22--EOR EOR in Basins with Sufficient COin Basins with Sufficient CO SuppliesSuppliesin Basins with Sufficient COin Basins with Sufficient CO22 SuppliesSupplies

70

50

60

70

GT)

20

30

40

CO

2 S

tore

d (

0

10

20

800 Kilometers 200 Kilometers 15 KilometersMaximum Distance from Basin

CO2 Sequestered in Basins with Adequate Supplies CO2 Stored in All Basins

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Integrating COIntegrating CO22--EOR and COEOR and CO22 Storage Could Storage Could Increase Storage PotentialIncrease Storage Potential

CO2 SourceCO2 SourceOil to MarketOil to Market Production WellProduction Well

CO2Injection

CO2Injection

COCOCO2Recycled

CO2Recycled

Swept AreaSwept Area

Current Water Oil Contact

Current Water Oil Contact

Original Water

Original Water

Stage #1Stage #1

Stage #2Stage #2Unswept AreaUnswept Area

Oil BankOil Bank

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WaterOil Contact

WaterOil Contact Stage #3Stage #3TZ/ROZTZ/ROZ

Saline ReservoirSaline Reservoir

ConclusionsConclusions1. CO2-EOR is not a new phenomena

• Underway > 30 years in favorable fields with access to ff d bl CO2affordable CO2

2. CO2-EOR has potential to produce 470 - 1,070 billion barrels

3. And store up to 320 billion metric tons of CO2

• Equivalent to the emissions of 4,300 one-GW size coal-fired power plants for 40 years of operationfired power plants for 40 years of operation

4. Half the CO2 demand for CO2-EOR can be met by industrial sources within distances comparable to current CO pipelines serving EOR projectscurrent CO2 pipelines serving EOR projects

4. Numerous options and actions could further increase oil recovery and CO2 storage capacity

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