co 2 storage in depleted oil fields: the worldwide potential offered by co 2 enhanced oil recovery...

CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO2 Enhanced Oil Recovery

JAF028360.PPT August 31, 20111


Prepared For:

World Bank CCS Training Session

Prepared By:

Vello Kuuskraa, PresidentADVANCED RESOURCES INTERNATIONAL, INC.

Arlington, VA

Hosted by:

World Bank CCS Trust Fund

Conducted by:

SECARB-Ed

World Bank ▪ Washington, DC ▪ September 6, 2011



Discussion Outline

1. Introduction to CO2 Enhanced Oil Recovery (CO2-EOR)

2. Two Key ARI Reports Prepared for U.S. DOE/NETL:

• Storing CO2 and Producing Domestic Crude Oil with “Next Generation” CO2-EOR Technology (January, 2009)

• Improving Domestic Energy Security and Lower CO2 Emissions with “Next Generation” CO2-Enhanced Oil Recovery (June, 2011)

3. Worldwide Assessment of CO2-EOR Oil Recovery and CO2 Storage

We would like to acknowledge the valuable support provided by U.S. DOE/NETL for this presentation and its foundation reports.



JAF01981.CDR

Zone o fEfficient S w eep

Purchased CO 2Anthropogenic and/or

Natural Sources

InjectedCO 2

Im m obile Oil

Im m obile Oil

Recycled CO 2 from

Production Well

COStored in P oreSpace

2 CO Dissolved (Sequestered)in the Im m obile

O il and G as Phases

2

DriverWater

WaterMiscible

ZoneOil

Bank

AdditionalOil

RecoveryCO2 CO2

What is CO2-EOR?



LaBargeGas PlantLaBarge

Gas Plant

Val VerdeGas PlantsVal Verde

Gas Plants

Enid Fertilizer PlantEnid Fertilizer Plant

JacksonDome

JacksonDome

McElmo DomeSheep Mountain

Bravo Dome

McElmo DomeSheep Mountain

Bravo Dome

11

8

1668

6

Dakota CoalGasification

Plant

Dakota CoalGasification

Plant

Antrim GasPlant

Antrim GasPlant

21

1

Most CO2-EOR activity currently in North America

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

Additional projects planned to help increase CO2 supply to CO2-EOR

–Natural & anthropogenic–New CO2 pipelines

1

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

Number of CO2-EOR Projects

Natural CO2 Source

Industrial CO2 Source

Existing CO2 Pipeline

CO2 Pipeline Under Development

114

Encore Pipeline

Denbury/Green Pipeline

U.S. CO2-EOR Activity – Oil Fields and CO2 Sources

Lost Cabin Gas PlantLost Cabin Gas Plant



Growth Of CO2-EOR Production in the U.S.

0

50,000

100,000

150,000

200,000

250,000

300,000

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Year

Enh

ance

d O

il R

ecov

ery

(bar

rels

/day

)

GULF COAST/OTHERMID-CONTINENTROCKY MOUNTAINSPERMIAN BASIN

JAF2010_031.XLS

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

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

Incr

emen

tal O

il R

ecov

ery

(bar

rels

/day

)

Significant further growth in production constrained by available supplies of CO2



A Major CO2 Pipeline

Exists in the

Permian Basin, West Texas

Over 3,000 miles of large diameter CO2 pipelines have been installed and operated in the Permian Basin of West Texas linking natural gas processing plant CO2 supplies with oil fields.

The large volume (30-inch), long distance (502-mile) Cortez Pipeline from McElmo Dome to Denver City was constructed by Shell Oil in the early 1980s. It has a current throughput capacity of 1.3 Bcfd (25 MMmt/yr.)



Significant Volumes of CO2 Are Already Being Injected for EOR in U.S. (Year 2011)

* Source: Advanced Resources International, 2011**MMCfd of CO2 can be converted to million metric tons per year by first multiplying by 365 (days per year) and then dividing by 18.9 * 10 3

(Mcf per metric ton)

State / Provincefor EOR / Storage CO2 Source Type and Location

CO2 Supply (MMcfd/million mt)

Geologic Anthropogenic

Texas-Utah-New Mexico-Oklahoma

Geologic (Colorado-New Mexico)Gas Processing (Texas) 1,575 340

Colorado-Wyoming Gas Processing (Wyoming) - 340

Mississippi Geologic (Mississippi) 1,100 -

Michigan Ammonia Plant (Michigan) - 15

Oklahoma Fertilizer Plant (Oklahoma) - 30

Saskatchewan Coal Gasification (North Dakota) - 150

TOTAL (MMcfd) 2,675 875

TOTAL (million mt) 52 17



Advanced Power Plants Using EOR for Storage

Storing CO2 and Producing Domestic Crude Oil with “Next Generation” CCS and CO2-EOR Technology

• 400 MW IGCC with 90% capture

• Located near Odessa in Permian Basin

• Sell 3 million tons of CO2 per year to EOR market

• Expected cost $1.75 B; $350 MM award under CCPI Round 3.

Summit’s Texas Clean Energy IGCC Project

Source: Siemens Energy



CO2- EOR Activity Outside of U.S.

Area(Acres) Formation Depth

Oil Gravity Viscosity

Canada

Weyburn Unit 9,900 LS/Dolo 4,660’ 28o 3 cpJoffre 6,625 Sand 4,900’ 42o 1 cp

Trinidad

Forest Reserve 500 Sand 2,000-4,200’ 17-25o 10-100+ cpOropouche 175 Sand 2,400’ 29o 5 cp

Turkey

Bati Raman 12,890 LS 4,260’ 13o 590 cp

Hydrocarbon miscible and nitrogen EOR projects exist in Canada, Libya, UAE, Mexico and Venezuela that would be favorable and convert to CO2-EOR

In addition, CO2-EOR has been discussed for fields in North Sea and China.


JAF028360.PPT August 31, 201110

“Poster Child” for Integrating CO2-EOR and CO2 Storage

Regina

Weyburn

CO2

Beulah

North Dakota

Saskatchewan

Montana

ManitobaCanada

USA

Canada

USA

Source: EnCana, 2005

• Largest CO2 EOR project in Canada:

– OOIP 1.4 Bbbls – 200 MMB incremental oil from CO2-EOR

• World’s largest geological CO2 storage project:– 2.4 MMt/year (current)– 13 MMt to date– 30 MMt with EOR– 55 MMt with EOR/sequestration

(compared to 60 MMt from incremental oil from CO2-EOR)

• A 200 mile CO2 pipeline connects the Coal Gasification Plant at Beulah, ND with the Weyburn oil field in Canada.


JAF028360.PPT August 31, 201111

Potential of “Next Generation” CO2-EOR Technology

Two key reports prepared by Advanced Resources Int’l for U.S. DOE/NETL:


JAF028360.PPT August 31, 201112

Large Volumes Of Domestic Oil Remain “Stranded” After Traditional Recovery Operations

Original Oil In-Place: 597 B Barrels*

“Stranded” Oil In-Place: 393 B Barrels*

Proved Reserves22 Billion Barrels

Future Challenge393 Billion Barrels

Cumulative Production182 Billion Barrels

Source: Advanced Resources Int’l. (2009)


JAF028360.PPT August 31, 201113

“Next Generation” CO2-EOR Technology

• Innovative Flood Design and Well Placement. Adding horizontal production wells and vertical CO2 injection wells, enabling CO2 to contact residual oil from poorly swept portions of the reservoir.

• Viscosity and Miscibility Enhancement. Adding mobility control with viscosity enhancers and lowering MMP with miscibility enhancers.

• Increased Volume of CO2 Injection. Injecting up to 1.5 HCPV of CO2 compared to 1.0 HCPV under “best practices”.

• Flood Performance Diagnostics and Control. Instrumented observation wells and downhole sensors to monitor progress. Periodic 4-D seismic and pressure plus zone-by-zone flow tests (among others) to “manage and control” the CO2 flood.



CO2Injection

CO2Injection

CO2 SourceCO2 SourceOil to MarketOil to Market

Production WellProduction Well

CO2Recycled

CO2Recycled

Current Water Oil Contact

Current Water Oil Contact

Original Water

Oil Contact

Original Water

Oil Contact

Stage #1Stage #1

Stage #2Stage #2

Stage #3Stage #3TZ/ROZTZ/ROZ

Unswept AreaUnswept Area

Oil BankOil Bank

Swept AreaSwept Area

Saline ReservoirSaline Reservoir

Integrating CO2-EOR and CO2 Storage Could Increase Storage Potential



Oil Recovery Performance From Permian Basin San Andres Formation



*$100/Bbl Marker PriceSource: Occidental Petroleum Corporation, May 2011

Updated Typical Permian Basin CO2-EOR Project Cost Structure (Occidental Petroleum)



Domestic Oil Supplies and CO2 Demand (Storage) Volumes from “Next Generation” CO2-EOR Technology

Bill

ion

Bar

rels

of R

ecov

erab

le O

il

0

50

75

100

125

25

150137

45

67

20

Potential Oil Recovery CO2 Demand**

Source: Advanced Resources Int’l (2011).

*At an oil price of $85/B, a CO2 market price of $40/mt and a 20% ROR, before tax.**Includes 2,300 million metric tons of CO2 provided from natural sources and 2.6 billion barrels already produced or being developed with miscible CO2-EOR.

Bill

ion

Tons

of C

O2 S

tora

ge

0

20

30

40

50

10

60

Technical Economic* Technical Economic*



Volumes of Anthropogenic CO2 Storage Capacity Available from “Next Generation” CO2-EOR Technology

Num

ber o

f 1 G

W S

ize

Coa

l-Fire

d Po

wer

Pla

nts*

0

200

300

100

240

105

Technical Demand/Storage Capacity Economic Demand/Storage Capacity**

*Assuming 7 MMmt/yr of CO2 emissions, 90% capture and 30 years of operations per 1 GW of generating capacity.**At an oil price of $85/B, a CO2 market price of $40/mt and a 20% ROR, before.

Source: Advanced Resources Int’l (2011).

Total CO2 Anthropogenic CO2 Total CO2 Anthropogenic CO2

228

93


JAF028360.PPT August 31, 201119

Worldwide Potential for Using

CO2-EOR to Store CO2 and

Recover Additional Oil

Advanced Resources prepared for the International Energy Agency Greenhouse Gas Programme (IEA GHG) an assessment of CO2 storage and oil recovery potential offered by CO2-EOR.

CO2 supplies are primarily from new CO2 emissions capture facilities with pipeline transportation from power plants, cement plants and refineries to geologically favorable oil fields.


JAF028360.PPT August 31, 201120

World Potential from CO2 Enhanced Oil Recovery

Region Name Basin Count

Asia Pacific 8Central and South America 7Europe 2Former Soviet Union 6Middle East and North Africa 11North America/Other 3North America/United States 14South Asia 1S. Africa/Antarctica 2Total 54

Assessed 54 large world oil basins, including 14 in the U.S., for CO2-based Enhanced Oil Recovery.• High level, 1st order assessment of CO2-

EOR and associated storage potential, using U.S. experience as analog.

• Tested basin-level estimates with detailed modeling of 47 large oil fields in 6 basins.


JAF028360.PPT August 31, 201121

CO2 Storage Potential with CO2-EOR (Including Reserves Growth)

Region Number ofFields

CO2-EOR Potential(Billion Barrels)

CO2 Storage Potential (billion tonnes)

1. Asia Pacific 30 30 8

2. C. & S. America 60 60 20

3. Europe 28 28 8

4. FSU 152 152 42

5. Middle East/N. Africa 412 125

6. N. America/Non U.S 29 29 9

7. United States 121 121 34

8. South Asia 1 - -

9. S. Africa/Antarctica 49 49 15

Subtotal 881 881 261

Add’l w/ Res. Growth - 191 57

TOTAL 881 1,072 318


JAF028360.PPT August 31, 201122

Large Oil Fields with CO2-EOR Potential Near Jordan

Text


JAF028360.PPT August 31, 201123

Proximate to Jordan Oil Fields Potentially Favorable for Miscible CO2-EOR

Distance and

Ultimate

Primary/Secondary

Recovery

Average

Depth

Maximum

Depth

Minimum

Depth

Geologic Province (MMBbls) (Ft) (Ft) (Ft)

Fields Within 500 Miles (800km)Mesopotamian Foredeep Basin 1 16,000 10,000 10,000 10,000Red Sea Basin 6 4,804 8,631 12,050 5,750

Totals 7 20,804

Fields Within 500 - 1,000 Miles (800km-1,000km)Mesopotamian Foredeep Basin 57 355,554 8,032 14,609 3,900Zagros Fold Belt 16 103,468 7,152 15,420 3,500Greater Ghawar Uplift 5 98,270 7,618 13,500 5,550Interior Homocline-Central Arch 7 22,529 8,352 13,720 4,760Widyan Basin-Interior Platform 7 5,950 9,873 10,760 8,200

Totals 92 585,771J AF2011_050.XLS

Number of Oil

Fields


JAF028360.PPT August 31, 201124

Existing Regulatory Framework for CO2-EOR in the U.S.

• The U.S. and other countries have experience in regulating the transport and injection of CO2 used for CO2-EOR

• These address most – but not all – of the issues that will need to be addressed for CCS

• Efforts are underway, both in the U.S. and abroad, to address existing gaps. In the U.S., these include:

– Federal EPA Class VI well rulemaking for CO2 injection wells used for storage

– Federal EPA Class RR section of the EPA Mandatory GHG Reporting Rule on monitoring and reporting on “emissions” from CO2-EOR and CO2 storage operations

– Other efforts are underway at the state level as well in the U.S.


JAF028360.PPT August 31, 201125

Conclusions

1. CO2-EOR is not a new phenomena

• Underway > 30 years in favorable fields with access to affordable CO2

2. Worldwide, CO2-EOR has potential to produce up to 1,072 billion barrels

3. And store up to 318 billion metric tons of CO2

• Equivalent to the emissions of 1,680 one-GW size coal-fired power plants for 30 years of operation*

4. Numerous options and actions could further increase oil recovery and CO2 storage capacity – but depend on the availability of reliable, affordable CO2

*Assuming 7 MMmt/yr of CO2 emissions, 90% capture and 30 years of operation per 1 GW of generating capacity.



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co 2 storage in depleted oil fields: the worldwide potential offered by co 2 enhanced oil recovery...

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