Is There a “New Dawn” for CO2-EOR?

Presented at WY EOR task force meeting

July 25, 2006

Casper, WY

Dag NummedalColorado Energy Research Institute

Colorado School of Mines

Golden, CO

View of the SPE Forum, Broomfield, June 30, 06

Consensus is yes! Large amounts of CO2 will be generated in

the future (GTL, coal gasification, coal to liquids, heavy oil SAGD, gas fields, oil shale); supply for EOR will increase

CO2 is valuable commodity for EOR purposes. Now scarce in the US

CO2 is waste for sequestration folks – resource to EOR (different ‘drivers’)

Costs/Fiscal regimes will evolve to make CO2 EOR attractive; e.g. cap and trade

Present: use‘natural’CO2 for EOR

Goal: usepower plantCO2 for EORand sequestration

CO2 for EOR in the Rocky Mountains

Wyoming CO2 Budget (’03)

CO2 RequirementsOOIP in WY candidate reservoirs: 8 BBOCO2 flooding recovers 10 -15% of OOIPEOR potential: 0.8 – 1.2 BBOCO2 required: 460 – 700 MM tons total

CO2 ProductionLaBarge: 9.7 MM tons/yrMadden: 1.2 MM tons/yrPower plant release: 58 MM tons/yr

A Glimpse of the Future: Coal Burning Power Plants

w/ Carbon CaptureBritish Consortium to Generate Clean Electricity from HydrogenBP press release, June 30, 2005.

BP, ConocoPhillips, Shell and Scottish and Southern Energy (SSE), have announced that they are to commence engineering design of the world's first industrial scale project to generate 'carbon-free' electricity from hydrogen.

Raw material: natural gas.Main product: H2 as fuel for turbine for electricity.CO2: Pipeline to Miller oil field, 240 km offshore.

Pet Coke for H2 and CO2-EOR BP press release, February 14 2006. Carson, CABP and Edison Mission Group (EMG), a subsidiary of Edison International, plan on

building a new $1 billion, 500 MW hydrogen-fueled power plant in California, which, while not using renewable energy, will generate clean electricity and sequester its carbon dioxide (CO2) emissions.  

Raw material: petroleum coke.Main product: H2 to fuel gas turbine for electricity.CO2: Capture 90% of emissions; pipeline to an oil field for CO2-EOR.

• 860 MW gas-fired power plant and methanol facility in Mid-Norway.

• The plant will be fueled by gas from offshore fields – Draugen and Heidrun.

• The project will depend on a government funding and involvement.

• The US Department of Energy projects that carbon-dioxide capture EOR could more than quadruple US domestic oil production.

Global Growth in CO2-EOR Projects Announced Feb. 9, 2006

Shell and Statoil have started developing the world’s largest project to date using carbon dioxide (CO2) for enhanced oil recovery (EOR) offshore.

2 to 2.5 million tonnes of CO2 annually in two different fields

Questions?

Japan’s CO2 Storage Commitment CLIMATE: Japan to establish underground CO2 storage Japan plans to set up facilities around the world to capture carbon

dioxide from industrial operations and store it underground, the Japanese Ministry of Economy, Trade and Industry announced yesterday.

The ministry said it aims to use a CO2 capture and storage technology called CCS that reduces CO2 emissions into the atmosphere by 200 million tons per year, a sixth of current domestic CO2 emissions. Japan would store half of the CO2 in country and the other half abroad.

Not only does Japan hope to reduce its own emissions from CCS, it hopes to employ the same technology outside of Japan alongside natural gas production. The ministry said it hopes to start obtaining carbon credits from developing countries with CCS technology by 2010.

Pending international rules should establish how to count developed nations' CO2 reduction using CCS technology in developing countries along with developed nations' own reductions (Japan Times, June 20).

Japan’s Major Storage Comitment - 2

Burying CO2 not 'silver bullet' to combating global warming, expert says While energy firms around the world are heavily investing in projects to bury

carbon dioxide, it is a costly venture that has the overall effect of a pinprick in the world's total emissions, an International Energy Agency expert said yesterday.

"It's expensive ... this can be one solution among many to global warming [but] it's not going to be a silver bullet," Kelly Thambimuthu said during a carbon dioxide conference in Trondheim, Norway.

Projects in Norway, Australia, Scotland and the United States tout goals of burying as much as 15 million metric tons of CO2 per year, a fraction of the 25 billion metric tons of emissions globally every year. A 500-megawatt coal-fired power plant emits about 3 million metric tons per year.

Additionally, the high cost of storing CO2 underground, when compared with the cost of carbon credits, does not make storage cost-effective. Thambimuthu said that in Europe for storage to be economically viable the cost for a carbon credit would have to rise from its current $18.99 per metric ton of CO2 to at least $30 per metric ton or higher (Alister Doyle, Reuters/New Zealand Herald, June 20).

Principles Behind Miscible CO2 Flooding

CO2 flooding works: History of CO2 – EOR at two Wyoming Oil Fields

Weyburn Time-Lapse (2002-2000)

RMS Amplitude % Difference (2002-2000)

N

Tom Davis, CSM

Edge of salt

dissolution

CO2 fingering

Global and US Capacity for CO2-EOR

Global: 120 GtCO2US: 12 GtCO2Current rates of CO2 release:World: 26 GtCO2

Carbon Dioxide Captureand Geologic Storage; Battelle, April 2006JJ Dooley (Lead Author), RT Dahowski, CL Davidson,MA Wise, N Gupta, SH Kim, EL Malone

Today375 ppm

Why we need to do this:CO2 from 400,000 – 0 ybp

CO2 _EOR projects in pipeline Gas Injection & Environmental Driven Projects? Most New Projects in North America – 15+, But projects in the pipeline in many

areas: Oman, North Sea, North Slope, Brazil, Malaysia, Tengiz, etc Several pure sequestration projects coming Source gas limitations. Projects occurring where there is gas, geologic gas, cheap

waste gas, no market for produced gas: How do we increase available gas? Permian Basin successful due to concentration of large fields, low reservoir temperature

and good residual oil target Pipeline and infrastructure built during “irrational exuberance” of 1980’s (could we use

some “rational” exuberance?) CO2 can be successfully contained – no leaks to surface.

Oil ProductionBase WaterfloodHorizontal Infill

Miscible CO2 Flood

0

1000

2000

3000

4000

5000

6000

7000

8000

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Year

Prod

uctio

n (m

³/d)

CO2 Injection Operation - Weyburn

MidaleAnhydrite

Oil & CO2CO2

CO2 & Oil

Frobisher

Hz CO2 Injector

Marly

Vuggy

VerticalProducer

Vertical WaterInjector

Hz Producers

Water

CO2

The Economics of Adding Reserves by CO2 Flooding

A: Average finding and development cost from 1995 to 1999, on different ‘continents’.

B: Average finding, development, and production cost in the US from 1995 to 1999 ($10, left column), compared to cost per barrel of reserves developed for CO2 flooding ($6, right column). From Bradley, 2001.

Weyburn Field

CANADA

U.S.A.

ALBERTAMANITOBA

MONTANA

WYOMING SOUTH DAKOTA

NORTH DAKOTA

EDMONTON

SASKATOON

PRINCEALBERT

WINNIPEGBRANDON

REGINA

HELENABISMARCK

PIERRE

CALGARY

SEDIMENTARY BASIN

HUDSONBAY

WEYBURN

SASKATCHEWAN

The Source of CO2

Dakota Gasification Company

250 mmscfd CO2 by-product of coal (lignite) gasification

95 mmscfd (5000 tonnes/day) contracted and injected at Weyburn

EnCana currently injects 120 mmscfd (i.e. 21% recycle)

ReginaRegina

EstevanEstevan

BismarckBismarck

North DakotaNorth Dakota

MontanaMontana

ManitobaManitoba

SaskatchewanSaskatchewan CanadaCanada

USAUSA

WeyburnWeyburn

BeulahBeulah