Commercial SequestrationCommercial Sequestration

Dwight PetersDwight PetersNorth America Business Manager

Mar 9, 2011

Acknowledgements

Some graphics in this material is based upon work supported by the U.S. g p p pp yDepartment of Energy (DOE) National Energy Technology Laboratory (NETL). This work is managed and administered by the Regional Carbon Sequestration Partnerships and funded by DOE/NETL and Carbon Sequestration Partnerships and funded by DOE/NETL and cost-sharing partners.

2

The Commercial CO2 Storage WorkflowPost-Operation Phase20+ years

Operation Phase10-50 years

PrePre--Operation PhaseOperation Phase2-5 years

MonitoringConstruction Preparation

Certification at start

Monitoring

CO2 InjectionDesign

Performance Management & Risk Control

DecommissioningTransfer of

Liability

Characterization

Risk Control

SurveillanceSite Selection

Current Knowledge

• Scientific work has identified many potential storage sites in the US and rest of world• Only some of these sites can provide low risk, low cost commercial storagey p g• Injection pilots build acceptance but leave many unknowns about commerciality• Today’ s best practices manuals have been derived from small scale experiences • Many important pilot project experiences are not completely understood• Many important pilot project experiences are not completely understood• Scale-up will require commercial processes adapted from the oil and gas industry.

Important Variables

Construction Injection Equalization ClosurePossible site Probable site Appoved site

?$500M – $1B

Cume Cost

ton)

ate)

monitor

models

Property rights?

es

(pen

nies p

er

ost ?

( su

cces

s ra

gatherdata

updatemodelswells and seismic

Ownership,Liability ?

$50M

$150M

Design andPermit UncertaintyDe

sktop

Stud

ie

Explo

ratio

n Co

EnvironmentalMonitoring

( pennies / ton )

Operate Site3 Mton/yr( dollars / ton )

Collect DataBuild Models BuildPermit

(<10 cents / ton)

Risk Control & Performance Assessment5 yrs 100+0 30 yrs 35 yrs

Uncertainty$1M

Build Models(~50 cents / ton)

Build(~$1 / ton)

* Per ton estimates and total costs (in current day $USD) are based on 100 Mton lifetime storage volume

NATCarb Data “Blobs”

An Oil and Gas Analogy

Decades ago, potential oil & gas fields were mapped i i il th t t ti l t it b i in a similar way that potential storage sites are being mapped today

The Importance of Data

Here’s what we learned after decades of oil & gas related data collection

Scale Up Challenges for CO2 Storage

• Data integrationg• Risk management• Monitoring and validation• Operational challenges and HSE

Data Integration

• Pilot projects have followed hypothesis driven scientific experimentation• Subsurface models should represent a range of possibilities not a best estimate.• Integration enables us to continually restrict possible scenarios and lessen risk• Multiple disciplines must converge on a shared earth modelMultiple disciplines must converge on a shared earth model• New information must be rapidly added into the decision process

Schlumberger Petrel Model

CCS Full System Integration

Capture plant plot sCapture plant plot s

Capture Island

Transport

CO2 Source

• CO2 quality matched to reservoir • Fluid behavior through network• Operational integration

• alarming• shut downs• back up• back up Storage

CO2 Injection – Simple Schematic

Pipeline Inlet

From Oxy-fuel Combustion Plant - Purified CO2

Compressor Aftercooler

Injection Well y miles

Pipeline Outlet

Geologic Formation

x miles

y miles

z miles

Surface Pipeline

CO2

Surface Pipeline – Effect of Pipeline Diameter200 miles long, 10 miles elevated, 190 miles buried. Inlet temperature 100 °F, inlet pressure 1200 psia, ambient temperature 60 °F, pure carbon dioxide, one million tonnes per year, 18” pipeline

100 100

80 80

60 60

40 40

or F

ract

ion,

%

100

90°F

35

°C

20 20

0 0

Vapo

OLGA S, 2000, V5.3

ΔP 4.1%90

80

70

60

Tem

pera

ture

,

30

25

20 Tem

pera

ture

,

Lower Heat Transfer Coefficient

ΔP 4.1%

1200

1190

1180

1170

ress

ure,

psi

a 8.2

8.1

8 0 ress

ure,

MP

a

OLGA S, 2000, V 5.3

Beggs and Brill

60

300250200150100500

Pipeline length, km

1160Pr 8.0 Pr

Surface Pipeline – Effect of Pipeline Size200 miles long, 10 miles elevated, 190 miles buried. Inlet temperature 100 °F, inlet pressure 1200 psia, ambient temperature 60 °F, pure carbon dioxide, one million tonnes per year, 12” pipeline

100

80

60

40

or F

ract

ion,

%

100

80

60

40

Beggs and Brill

100

90°F

35

°C

20

0

Vapo

20OLGA S, 2000, V5.3

ΔP 26.3%80

70

60

Tem

pera

ture

,

30

25

20 Tem

pera

ture

,

Beggs and Brill

OLGA S, 2000, V5.3

ΔP 26.3%

1200

1100

1000

ress

ure,

psi

a 8.0

7.5

7.0

6

ress

ure,

MP

a

Beggs and Brill

OLGA S, 2000, V5.3

300250200150100500

Pipeline length, km

900

P 6.5 P

Surface Pipeline – Effect of Temperature200 miles long, 10 miles elevated, 190 miles buried. Inlet temperature 100 °F, inlet pressure 1200 psia, ambient temperature 75 °F, pure carbon dioxide, one million tonnes per year, 12” pipeline

100 100

80 80

60 60

40 40

or F

ract

ion,

%

100

90°F

35

30

°C

20 20

0 0

Vap

o

ΔP 42.5%80

70

60

Tem

pera

ture

, 30

25

20

15

Tem

pera

ture

, ΔP 42.5%

1200

1100

1000

900

800ress

ure,

psi

a

8

7

6

ress

ure,

MP

a

Beggs and Brill

300250200150100500

Pipeline length, km

800

700

Pr

5

Pr

Surface Pipeline – Effect of 4 mole% Argon Addition

200 miles long, 10 miles elevated, 190 miles buried. Inlet temperature 100 °F, inlet pressure 1211 psia, ambient temperature 60 °F, one million tonnes per year, 12” pipeline

1.0

0.8

0.6

0 4apor

Fra

ctio

n

0.4

0.2

Va

300x103250200150100500Distance, m

3020C

100

80

eg. F ΔP 82.2%20

100

-10-20-30Te

mpe

ratu

re, d

eg. 60

40

20

0

-20

Tem

pera

ture

, de ΔP 82.2%

300x103250200150100500Distance, m 1200

1000

800

600 ssur

e, p

sia

87654su

re, M

Pa

600

400 Pres

300x103250200150100500Distance, m

432

Pre

s

Full Integration

Economics Model Petrel

Integrated Asset ModelGeologic Model

gFacilities Model

Pipeline Model

Wellbore Model

GeoChemicalModel

Reservoir Simulators

GeoMechanicsModel

W ll d tE i t d t

Seismic data (characterization)

Well dataEnvironment data

Monitoring data (all types)

HSE risk evaluation

Monitoring data (all types)

Leakage risk evaluation

The Risk Management Matrix

ResponsesRED

YELLOWINTOLERABLE: Do not take this risk

UNDESIRABLE: Demonstrate ALARP before proceeding

-16 to -10

-9 to -5

BLACK NON-OPERABLE: Evacuate the zone and or area/country-25 to -20

p• reduce likelihood (PREVENT)• reduce severity (MITIGATE).P

ossible

Unlikely

Improbab

Probable

Likely

MITIGATION

ControlM

BLUEGREEN ACCEPTABLE: Proceed carefully, with continuous improvement

NEGLIGIBLE: Safe to proceed

-4 to -2

-1

Tasks:• Intelligently construct “Scenarios”

that can be modeled.Effi i tl l i l ti

-11L

-22L

-33L

-44L

-55L

-1Light

321

ble

54

LIKELIHOODPREVENTION

Measures

• Efficiently apply simulation resources.SEVER

I

-21S

-31M

-41S

-62M

-63S

-93M

-84S

-124M

-105S

-155M

-2

-3

Serious

Major

Hazard Analysis and Risk ControlSt d d SLB QHSE S020

ITY

-41C

-51MC

-82C

-102MC

-123C

-153MC

-164C

-204MC

-205C

-255MC

-4

-5

Catastrophic

Multi-Catastrophic

Standard SLB-QHSE-S020White arrow indicates decreasing risk

Risk Management Tools

Rank by Risk

CO2 Monitoring – 3 objectives

#3 M it th i t

ContainmentContainment #2: Watch possible leakage paths

#3: Monitor the environmentWell Integrity

S l d f lt

Freshwateraquifer

BoundariesBoundaries#1: Watch stored CO2

Sealed fault

Monitoringwell

Abandonedwell

Monitoringwell

CO2injectionwell

Operational Challenges and HSE

• The ability to execute a plan in real-time is as important as the plan itself• A proven methodology for decision making, in a dynamic environment, is critical.• When we drill and inject into the subsurface we create:

• predictable events that we can validate• Indicators for unpredicted events that could lead toward negative consequences

• Our ability to anticipate scenarios and respond, prior to incident, is crucial• Response capability is the key ingredient in overall cost minimizationp p y y g• All of the above impact HSE

What is Needed for Project Success

CO2 Technology

People + TechnologyPeoplePeople CO2 Technology

All Seismic ServicesWellbore Integrity EvaluationD illi & C l ti&

p

Geology Geophysics

Reservoir Engineer Drilling Engineer

p

Geology Geophysics

Reservoir Engineer Drilling Engineer Drilling & CompletionCementing Logging, Testing & SamplingL b A l i

&g g g

Petrophysics Completion Engineer

Geomechanics Geochemistry

g g g

Petrophysics Completion Engineer

Geomechanics GeochemistryLab AnalysisData ProcessingModeling & Plume PredictionD t M t

y

Hydrogeology Economics

HSE Injection

y

Hydrogeology Economics

HSE InjectionData ManagementOperational MonitoringVerification MonitoringC li M it i

Project ManagementProject Management

Tools for Team IntegrationCompliance Monitoring

The Operational Team Needs:

Significant commercial e perience ith field operations and asset de elopment• Significant, commercial experience with field operations and asset development• CO2 specific experience• Organizational alignment and motivation – culture, training, HSE• Understanding of and access to key technologies and tools• Support infrastructure, HSE

Lessons Learned Through Demonstrations

● Geologic uncertainty is scary to some (esp. engineers)g y y ( p g )● CO2 moves farther, faster, and with fingering● CO2 stands out from brine on most monitoring techniques―No chance of 100% accounting

● Old wells will need special focusL bl i d l t d il fi ld―Large problem in depleted oil fields

● Need to consider the entire system or suffer the consequences