Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice...

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Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services NARUC Mar 31 2008

Transcript of Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice...

Page 1: Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services.

Schlumberger Carbon Services

Economics & Risk of Scaling Up for Carbon Storage

John TombariVice President North & South AmericaSchlumberger Carbon ServicesNARUC Mar 31 2008

Page 2: Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services.

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Schlumberger Carbon Services

Storage fundamentals

CO2

?

Post injectionSaline Formation

Caprock

• Capacity: (match to source & estimate plume shape)• bulk volume (seismic) X porosity (logs) X “storage factor”

• Injectivity (how many wells)• permeability from core, log & well test

• Containment (caprock integrity, fractures, wellbore integrity, faults)

5 miles

3000 ft

3500 ft

Page 3: Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services.

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Schlumberger Carbon Services

CO2 Technology

Seismic Services

Wellbore Integrity Evaluation

Drilling & Completion

Cementing

Logging, Testing & Sampling

Lab Analysis

Data Processing

Modeling & Prediction

Data Management

Monitoring

What resources will be needed?

People + Technology

&

People

Geology Geophysics

Reservoir Engineer Drilling Engineer

Petrophysics Completion Engineer

Geomechanics Geochemistry

Hydrogeology Economics

HSE Injection

Project Management

People

Geology Geophysics

Reservoir Engineer Drilling Engineer

Petrophysics Completion Engineer

Geomechanics Geochemistry

Hydrogeology Economics

HSE Injection

Project Management

Tools for Team Integration

Page 4: Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services.

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Schlumberger Carbon Services

Country

300 miles

3000

ft.

300 miles

3000

ft.

How can uncertainty be reduced?

.

Page 5: Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services.

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Schlumberger Carbon Services

Country

300 miles

3000

ft.

300 miles

3000

ft.

How can uncertainty be reduced?

.300 miles

3000

ft.

300 miles

3000

ft.

Regional

sand sandsandsandsand sandsand sandsand sandsandsand sandsandsandsand sandsand sandsand sandsand

10 miles

sand sandsandsandsand sandsand sandsand sandsandsand sandsandsandsand sandsand sandsand sandsand

10 miles

Page 6: Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services.

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Schlumberger Carbon Services

Country

300 miles

3000

ft.

300 miles

3000

ft.

How can uncertainty be reduced?

.300 miles

3000

ft.

300 miles

3000

ft.

Regional

sand sandsandsandsand sandsand sandsand sandsandsand sandsandsandsand sandsand sandsand sandsand

10 miles

sand sandsandsandsand sandsand sandsand sandsandsand sandsandsandsand sandsand sandsand sandsand

10 miles

sandsand

sandsand sandsand sandsand

sandsand sandsand

sandsand sandsand sandsand

Local

10 miles

Page 7: Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services.

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Schlumberger Carbon Services

sandsandsandsand sandsand sandsand

sand

sand sandsandsandsand sandsand sandsand sandsand

How can uncertainty be reduced?

Page 8: Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services.

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Schlumberger Carbon Services

How will technology be valued?

We can see millions of years in the past

Page 9: Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services.

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Schlumberger Carbon Services

low resolution baseline data high resolution data

Overlay of 1992 & 2001 data Overlay of 2001 & 2003 data

Technology Planning is important (4-D Seismic)

Page 10: Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services.

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Schlumberger Carbon Services

How can we reduce costs?

Performance & Risk(Functions) Capacity, Injectivity, Containment >>>> (Stakes) HSE, Cost, Image

Uncertainty

Possible site Probable site Appoved site

Time

Tota

l cos

t & u

ncer

tain

ty

1 yr 2-3 yrs

High

Low

Prelim.study

30 yrs

Total cost

ConstructionIncludes time

for plant construction

ConstructionIncludes time

for plant construction

Detailedcharacterization

Detailedcharacterization

Data acquisition

Data acquisition

DesignDesign

Model driven Monitoringplan

Monitoringplan

50 yrs 100+

Equalization

Long termEnvironmentalmonitoring

Long termEnvironmentalmonitoring

Living model

Prediction

Model update

Injection &monitoring

Injection &monitoring

Performance & Risk(Functions) Capacity, Injectivity, Containment >>>> (Stakes) HSE, Cost, Image

Performance & Risk(Functions) Capacity, Injectivity, Containment >>>> (Stakes) HSE, Cost, Image

UncertaintyUncertainty

Possible site Probable site Appoved site

Time

Tota

l cos

t & u

ncer

tain

ty

1 yr 2-3 yrs

High

Low

Prelim.study

30 yrs

Total cost

ConstructionIncludes time

for plant construction

ConstructionIncludes time

for plant construction

ConstructionIncludes time

for plant construction

ConstructionIncludes time

for plant construction

Detailedcharacterization

Detailedcharacterization

Data acquisition

Data acquisition

Detailedcharacterization

Detailedcharacterization

Data acquisition

Data acquisition

Detailedcharacterization

Detailedcharacterization

Data acquisition

Data acquisition

DesignDesign

Model driven Monitoringplan

Monitoringplan

50 yrs 100+

Equalization

Long termEnvironmentalmonitoring

Long termEnvironmentalmonitoring

Long termEnvironmentalmonitoring

Long termEnvironmentalmonitoring

Living model

Prediction

Model update

Injection &monitoring

Injection &monitoring

Living model

Prediction

Model update

Injection &monitoring

Injection &monitoring

Living model

Prediction

Model update

Living modelLiving model

Prediction

Model update

Injection &monitoring

Injection &monitoring

Injection &monitoring

Injection &monitoring

• Area of review estimate• Ownership?

• Area of review refined• Permit application?

• Periodic review? • Closure?• Release of Liability?

Page 11: Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services.

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Summary

• Non-technical factors are the key to progress• Clear regulatory guidelines & and long term liability protection are

needed for commercial involvement.• Resource requirements will be large• Uncertainties can be managed with technology.• Technology must be valued• Proper baseline characterization is the key to reducing cost:

• number of wells, frequency of monitoring, public acceptance