Pipeline Transport

and
Full-Field CO2 Flood Economics
in the Hall-Gurney Field

Motivation
Size

Oil

(acre)

(MM bbl)

> 4,000 bbl/ac

134,320

744

> 3,500 bbl/ac

42,400

165

> 3,000 bbl/ac

198,040

624

> 2,500 bbl/ac

54,400

143

> 2,000 bbl/ac

66,200

149

Interesting Areas

146,300

130

641,660

1,955

Group

Totals

Field

Gross Area

Flood

Hall-Gurney

78 mi2

39 mi2

Trapp

89 mi2

45 mi2

Thats nearly 2
BILLION bbl Oil

CO2
Source

Compress

Recycle
Transport

Inject

if Cap & Trade is enacted ...

Rex Buchanan & Tim Carr, Kansas Geological Survey

CO2
Source

Compress

Recycle
Transport

Inject

$ $ $ - Costs
Oil & Gas Journal, Sep 1, 2008 issue (Vol 106.33)
Cost Category

Compressor Estimate =
$2.4 MM

Net %

$$$

3/4 to Compressor

39.75%

1,789,900

1/4 to Other

13.25%

596,600

1/2 to Compressor

13.55%

610,100

1/2 to Other

13.55%

610,100

19.35% Misc

19.35%

871,300

0.55% Land

0.55%

24,800

100.00%

4,502,800
100,000

53.0% Materials

27.1% Labor

Assumed Split

Dehydration

Total

$ 4.603 MM

This is $1,917/HP. O&GJ reports 2008 US Land average of $1,899/HP.

CO2
Source

Compress

Recycle
Transport

Inject

Pipeline Transport
Right-of-Way and Route Selection
Population

Size (Pressure Drop)

Materials & Construction (Corrosion)
Operation
Monitoring
Maintenance
Regulation

$ $ $ - Costs
Cost estimates vary dramatically !

Kinder Morgan

2001

$20,000 / in / mi + $150,000

M.I.T. study

Jan 2007

$33,853 / in / mi

TORP estimate

$40,000 / in / mi

Coffeyville Resources

May 2008

$45,000 / in / mi

Oil & Gas Journal

Sep 2008

$65,109 / in / mi (overall)
$37,000 / in / mi (WY & OK)

Oil & Gas Journal, Sep 1, 2008 issue (Vol 106.33)

CO2
Source

Compress

Recycle
Transport

Inject

Inject
Model uses 432 Mscf/d per injection well
Tapers off as CO2 is produced
Allows for expansion of the area

6.8 MMscf/d is available at either ethanol

plant
Design to use 85% of that (5.78 MMscf/d)

Year
1

10

11

12 13

14

15

16

17

18

19

20

Wells

15
add 3
10
5
7
5
6
7
5
7
Lose 15 here => 6
Lose 3 here => 7
Lose 10 here => 6
Lose 5 here => 6
Lose 7 here => 6
Total Injectors In Service
15 18

28

33

40

45

51

58

63

70

61

65 61

62

61

62

62

61

63

62

Oil

CO2

CO2

CO2

Production

Injected

Purchased

Recycle

(bbl)

(mscf)

(mscf)

(mscf)

Year

20,216

2,334,973

1,984,727

350,246

81,304
198,808

2,801,968
3,214,716

2,031,427
1,947,816

770,541
1,266,900

2
3

357,537
407,487

3,740,675
4,063,011

2,044,281
1,949,742

1,696,394
2,113,269

4
5

469,937

4,444,311

1,959,451

2,484,860

476,285

4,790,751

1,982,197

2,808,554

481,862

4,991,805

2,066,582

2,925,223

471,200

4,869,206

1,957,621

2,911,585

468,723

4,800,470

1,964,963

2,835,507

10

461,118

4,797,254

2,040,786

2,756,468

11

458,783

4,835,035

2,073,929

2,761,106

12

466,384

4,829,437

2,061,249

2,768,188

13

470,901

4,763,939

1,971,523

2,792,416

14

474,432

4,739,630

1,952,895

2,786,735

15

Year
1

10

11

12 13

14

15

16

17

18

19

20

Wells
15
add 3
10
5
7
5
6
7
5
7
Lose 15 here => 6
Lose 3 here => 7
Lose 10 here => 6
Lose 5 here => 6

Lose 7 here => 6

Total Injectors In Service
15 18

28

33

40

45

51

58

63

70

61

65 61

62

61

62

62

61

63

62

Oil

CO2

CO2

CO2

Production

Injected

Purchased

Recycle

(bbl)

(mscf)

(mscf)

(mscf)

Year

20,216

2,334,973

1,984,727

350,246

81,304
198,808

2,801,968
3,214,716

2,031,427
1,947,816

770,541
1,266,900

2
3

357,537
407,487

3,740,675
4,063,011

2,044,281
1,949,742

1,696,394
2,113,269

4
5

469,937

4,444,311

1,959,451

2,484,860

476,285

4,790,751

1,982,197

2,808,554

481,862

4,991,805

2,066,582

2,925,223

471,200

4,869,206

1,957,621

2,911,585

468,723

4,800,470

1,964,963

2,835,507

10

461,118

4,797,254

2,040,786

2,756,468

11

458,783

4,835,035

2,073,929

2,761,106

12

466,384

4,829,437

2,061,249

2,768,188

13

470,901

4,763,939

1,971,523

2,792,416

14

474,432

4,739,630

1,952,895

2,786,735

15

Year
1

10

11

12 13

14

15

16

17

18

19

20

Wells
15
add 3
10
5
7
5
6
7
5
7

Lose 15 here => 6

Lose 3 here => 7
Lose 10 here => 6
Lose 5 here => 6
Lose 7 here => 6
Total Injectors In Service
15 18

28

33

40

45

51

58

63

70

61

65 61

62

61

62

62

61

63

62

Oil

CO2

CO2

CO2

Production

Injected

Purchased

Recycle

(bbl)

(mscf)

(mscf)

(mscf)

Year

20,216

2,334,973

1,984,727

350,246

81,304
198,808

2,801,968
3,214,716

2,031,427
1,947,816

770,541
1,266,900

2
3

357,537
407,487

3,740,675
4,063,011

2,044,281
1,949,742

1,696,394
2,113,269

4
5

469,937

4,444,311

1,959,451

2,484,860

476,285

4,790,751

1,982,197

2,808,554

481,862

4,991,805

2,066,582

2,925,223

471,200

4,869,206

1,957,621

2,911,585

468,723

4,800,470

1,964,963

2,835,507

10

461,118

4,797,254

2,040,786

2,756,468

11

458,783

4,835,035

2,073,929

2,761,106

12

466,384

4,829,437

2,061,249

2,768,188

13

470,901

4,763,939

1,971,523

2,792,416

14

474,432

4,739,630

1,952,895

2,786,735

15

Year
1

10

11

12 13

14

15

16

17

18

19

20

Wells
15
add 3
10
5
7
5
6
7
5
7

Lose 15 here => 6

Lose 3 here => 7
Lose 10 here => 6
Lose 5 here => 6
Lose 7 here => 6
Total Injectors In Service
15 18

28

33

40

45

51

58

63

70

61

65 61

62

61

62

62

61

63

62

Oil

CO2

CO2

CO2

Production

Injected

Purchased

Recycle

(bbl)

(mscf)

(mscf)

(mscf)

Year

20,216

2,334,973

1,984,727

350,246

81,304
198,808

2,801,968
3,214,716

2,031,427
1,947,816

770,541
1,266,900

2
3

357,537
407,487

3,740,675
4,063,011

2,044,281
1,949,742

1,696,394
2,113,269

4
5

469,937

4,444,311

1,959,451

2,484,860

476,285

4,790,751

1,982,197

2,808,554

481,862

4,991,805

2,066,582

2,925,223

471,200

4,869,206

1,957,621

2,911,585

468,723

4,800,470

1,964,963

2,835,507

10

461,118

4,797,254

2,040,786

2,756,468

11

458,783

4,835,035

2,073,929

2,761,106

12

466,384

4,829,437

2,061,249

2,768,188

13

470,901

4,763,939

1,971,523

2,792,416

14

474,432

4,739,630

1,952,895

2,786,735

15

Year
1

10

11

12 13

14

15

16

17

18

19

20

Wells
15
add 3
10
5
7
5
6
7
5
7

Lose 15 here => 6

Lose 3 here => 7
Lose 10 here => 6
Lose 5 here => 6
Lose 7 here => 6
Total Injectors In Service
15 18

28

33

40

45

51

58

63

70

61

65 61

62

61

62

62

61

63

62

Oil

CO2

CO2

CO2

Production

Injected

Purchased

Recycle

(bbl)

(mscf)

(mscf)

(mscf)

Year

20,216

2,334,973

1,984,727

350,246

81,304
198,808

2,801,968
3,214,716

2,031,427
1,947,816

770,541
1,266,900

2
3

357,537
407,487

3,740,675
4,063,011

2,044,281
1,949,742

1,696,394
2,113,269

4
5

469,937

4,444,311

1,959,451

2,484,860

476,285

4,790,751

1,982,197

2,808,554

481,862

4,991,805

2,066,582

2,925,223

471,200

4,869,206

1,957,621

2,911,585

468,723

4,800,470

1,964,963

2,835,507

10

461,118

4,797,254

2,040,786

2,756,468

11

458,783

4,835,035

2,073,929

2,761,106

12

466,384

4,829,437

2,061,249

2,768,188

13

470,901

4,763,939

1,971,523

2,792,416

14

474,432

4,739,630

1,952,895

2,786,735

15

Year
26 27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

Injectors

Oil

CO2

CO2

CO2

Production

Injected

Purchased

Recycle

(bbl)

(mscf)

(mscf)

(mscf)

Year

458,122

4,801,464

2,045,683

2,755,782

34

462,865
459,912

4,710,964
3,767,843

1,956,568
1,158,393

2,754,396
2,609,450

35
36

425,052

2,833,853

504,600

2,329,253

37

353,531

2,357,424

385,493

1,971,931

38

244,370

1,887,372

291,482

1,595,890

39

159,476

1,387,903

183,129

1,204,774

40

96,532

900,408

89,730

810,678

41

52,333

437,520

437,520

42

23,340

176,160

176,160

43

7,374

45,360

45,360

44

45

7
6
Lose 6 here => 6
Lose 7 here. Stop adding new injectors => 0

Lose 6 here => 0

Lose 6 here => 0
Lose 6 here => 0
Lose 6 here => 0
Lose 6 here => 0
Lose 6 here =>

Lose 7 here =>

Lose 6 here =>

Lose 6 here => 0

16,811,598
Total Injectors In Service
62 62

62

61

61

61

61

62

62

62

55

49

43

37

31

25

19

12

Injection Wells In Service

80
70
60
50
40
30
20
Injection Wells In Service
10

0
0

10

15

20

25

30

35

40

45

50

CO2
Source

Compress

Recycle
Transport

Inject

Recycle
CO2 Handling
3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

CO2 Recycled
CO2 Purchased

500,000

0
0

10

15

7.8 MMscf/d steady recycle amount

20

25

30

35

40

45

50

Recycle
Modular, distributed recycle compression
7.8 MMscf/d total capacity

$$$

Method
Use a 70 acre pattern (Dubois, KGS)
9 patterns are pictured

Production Model
per well
"Base Case" Production and CO2 Inj
BOO High PPV, 70 Acre Pattern

Projected Annual Oil Production

and CO2 Injected

18,000

Oil Production

16,000

CO2 Injected

14,000

CO2 Recycled

140,000
120,000

12,000

100,000
10,000

80,000
8,000

60,000
6,000

40,000

4,000

20,000

2,000

Year

Bill Flanders

10

11

Gas

(fixed)

Produced Injected Recycle

160,000

CO2 Injected (MCF)

Oil Porduced (BO)

Oil

180,000

20,000

CO2
Recycle

Year

(bbl)

(m scf)

(m scf)

1,348

155,665

15%

23,350

5,151

155,665

30%

46,699

11,325

79,405

75%

59,554

17,688

77,832

80%

62,266

13,732

77,832

80%

62,266

10,163

77,832

80%

62,266

7,128

74,775

80%

59,820

4,627

42,300

100%

42,300

2,661

21,800

100%

21,800

10

1,229

7,560

100%

7,560

75,052

770,667

447,880

Capital Investments
Base Case

Item

Amount

Compression at the Source

4.603 MM

Pipeline to the Leases

4.8 MM

30 mi of 4
Drill, Complete, & Equip new Injectors

300,000 each

Re-work existing Producers

50,000

Recycle Facility

6.336 MM

3 or 4 units @ 1/3 or 1/4 of the Total, +20%

Water Injection Plant with Injection Lines (6)

500,000 each

Tank Battery (3-phase separation) (6)

100,000 each

On-going Expenses
Base Case

Item

Amount (per year)

Compression @ Plant

Electricity - $425/day/MMscf

1.055 MM

Maintenance 5% of Total Cost

230,200

Pipeline Inspection, etc. - $5,000/mi

150,000

Recycle Compression
Electricity - $425/day/MMscf

1.210 MM

Maintenance 5% of Total Cost

316,800

Purchase CO2

1.00 / Mscf

On-going Expenses
Base Case

Item

Amount (per year)

Lease Operating

Producing Well - $1,500/mo + 25%

22,500

Injection Well - $800/mo + 25%

12,000

Water Supply Producer + 50%

27,000

one for each Water Injection Plant

Water Disposal Injector + 50%

14,400

one for each Water Injection Plant

Water Injection Plant
Electricity (per plant)

60,000

Maintenance (per plant)

25,000

Oil Production
600,000

500,000

400,000

300,000

200,000

100,000

0
0

10

15

20

25

30

35

40

45

50

The Numbers (in MM)

Base Case
ROR

Initial Cash

0.00%

38.0

10.00%

35.4

68.4

0.6

10.41%

35.3

32.44

103.9

8.2

15.00%

33.9

35.24

144.6

16.8

5.3

20.00%

32.2

40.00

213.8

31.4

14.3

6.1

28.13%

30.8

50.00

360.2

62.2

33.1

18.9

44.43%

29.3

60.00

506.6

92.9

52.0

31.8

60.33%

28.4

70.00

653.0

123.7

70.9

44.6

76.30%

27.6

80.00

799.9

154.5

89.7

57.4

92.60%

26.7

90.00

946.7

185.3

108.6

70.3

109.48%

25.8

100.00

1,093.5

216.1

127.5

83.1

127.12%

24.9

Oil Price

NPV 0

25.16

29.79

65.4

30.00

NPV 10

NPV 15

NPV 20

ROR
140.00%

120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Oil Price

Net Present Value

250,000,000
NPV 10
200,000,000

NPV 15
NPV 20

150,000,000
100,000,000
50,000,000
0
0.00

20.00

40.00

60.00
Oil Price

80.00

100.00

120.00

Another Case
CO2 constrained
Bring on Lyons plant
Make the Capital Investment numbers more
reasonable

Capital Investments
Both Ethanol Plants

Item

Amount

Compression at the Source, 2 Plants @ 3.0 MM each

6.0 MM

Pipelines @ $25,000/inmi

7.85 MM

23 mi of 4, 37 mi of 6
Drill, Complete, & Equip new Injectors

300,000 each

Re-work existing Producers

50,000

Recycle Facility

8.259 MM

6 @ 1/6 of the Total, +20%

Water Injection Plant with Injection Lines (9)

500,000 each

Tank Battery (3-phase separation) (9)

100,000 each

On-going Expenses
Both Ethanol Plants

Item

Amount (per year)

Compression @ Plants

Electricity - $425/day/MMscf

2.11 MM

Maintenance 5% of Total Cost

300,000

Pipeline Inspection, etc. - $5,000/mi

300,000

Recycle Compression
Electricity - $425/day/MMscf

2.42 MM

Maintenance 5% of Total Cost

412,800

Purchase CO2

0.20 / Mscf

On-going Expenses
Both Ethanol Plants

Item

Amount (per year)

Lease Operating

Producing Well - $1,500/mo + 25%

22,500

Injection Well - $800/mo + 25%

12,000

Water Supply Producer + 50%

27,000

one for each Water Injection Plant

Water Disposal Injector + 50%

14,400

one for each Water Injection Plant

Water Injection Plant
Electricity (per plant)

60,000

Maintenance (per plant)

25,000

Oil Production
1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
0

10

15

20

25

30

35

The Numbers (in MM)

Both Ethanol Plants
ROR

Initial Cash

0.00%

59.7

10.00%

56.0

15.00%

53.8

20.00%

51.4

22.8

10.6

29.74%

48.9

109.6

62.9

38.3

53.72%

46.9

676.1

172.5

103.0

66.0

77.42%

45.0

60.00

899.7

235.5

143.1

93.7

102.03%

43.0

70.00

1,123.4

298.4

183.3

121.4

128.33%

41.1

80.00

1,347.2

361.4

223.4

149.1

157.08%

39.1

90.00

1,571.0

424.4

263.5

176.8

189.10%

37.2

100.00

1,794.8

487.4

303.6

204.5

225.48%

35.2

Oil Price

NPV 0

NPV 10

NPV 15

19.60

22.58

65.4

24.33

103.6

10.9

26.18

144.5

22.6

7.4

30.00

229.4

46.6

40.00

452.7

50.00

NPV 20

ROR
250.00%
200.00%
150.00%
100.00%
50.00%
0.00%
0.00

20.00

40.00

60.00

80.00

100.00

120.00

Net Present Value

600,000,000
NPV 10

500,000,000

NPV 15
400,000,000

NPV 20

300,000,000
200,000,000
100,000,000
0

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Summary
CO2 will mobilize residual oil
Theres a bunch of residual oil in
Hall-Gurney
Trapp
surrounding fields
The CO2 flooding processes are moderately
complicated, but it has all been done before

Pipeline Transportation of CO2

and
Economics of a Full-Field CO2 Flood
in the Hall-Gurney Field

Mark Ballard (markt@ku.edu)

Additional Material

Compression The hard way ...

1) Stages
& Ratio

Pd
R
Ps

1
n

100

10

4.64

3.16

2.51

2.15

1.93

K 1

Td R K 1
1
Ts
E

2) Discharge Temp
Stage
0
1
2
3
4
5

3) Horsepower Required
K 1

PT
Z
K

b s
K
HP 3.025

R 1
Tb E K 1

Pd
15
37.5
94
245
586
1465

K
1.275
1.282
1.297
1.342
1.492
2.772

Stage

HP

78.4

75.8

69.4

55.2

27.9

Total

306.7

Avg K

Avg Z

1.2785
1.2895
1.3195
1.4170
2.1320

2.91
2.82
2.60
2.20
1.53

.9965
.99325
.98
.94775
.864

Horsepower per MMscf/d

Compression The short-cut ...

1) Stages & Ratio

Pd
R
Ps

1
n

n*R

100

100

10

20

4.64

13.92

3.16

12.64

2.51

12.55

2.15

12.9

1.93

13.5

* minimum

2) the Rule of 22
HP = 22 * n * R * Q * F

Stages (n)

Factor (F)

1.00

1.08

3+

1.10

= 303.7 Horsepower per MMscf/d

Where:
HP = Horsepower
n = Stages of Compression
R = Compression Ratio
Q = Volume Flow Rate, MMscf/d
F = correction Factor

Interstage Cooling The hard way ...

Interstage Cooling The short cut ...

q = 4960* Q * C p * T
Where:
q = Cooler Duty, BTU/hr
Q = Volume Flow Rate measured at standard conditions, MMscf/d
Avg Cp = Average Heat Capacity at constant pressure, BTU/LbmR
delta T = Temperature Drop across the cooler, R

Stage

Avg Cp

.22509

223,289

.22758

225,759

.23459

232,713

.25438

252,345

.32632

323,709

Total

1,257,815

BTU/hr
per
MMscf/d

Compressible Flow Equation

5
2

1
Qb 38.77* d *
f

Tb
*
Pb

P P Elev

GZTm L

2
1

2
2

1
2

Where
Qb = Volume flow rate (at base conditions), scf/d
d = inside pipe diameter, inches
f = Fanning friction factor (at mean conditions), dimensionless
Tb = base temperature, R (520)
Pb = base pressure, psia (14.7)
P1 = upstream pressure, psia
P2 = downstream pressure, psia

Elev

0.0375 e2 e1 GPm2
ZT

= the elevation term

Where
Pm = mean pressure (by the two thirds rule)
e1 = upstream elevation, ft
e2 = downstream elevation, ft
Z = average fluid compressibility, dimensionless
Tm = mean temperature, R
G = fluid gravity with respect to dry air at standard conditions, dimensionless
L = Length, miles

CO2 Density, f(Psia, F)

Pipeline Transport
Probably regulated
KCC defers to US DOT in KS
49 CFR 192 for gas
49 CFR 196 for liquid & supercritical

Lines on the lease probably not regulated

exceptions for public safety

Pipeline Transport
Regulation severely limits use of fiberglass
850 psi before location reductions

Not all fiberglass will work

Anhydrite least expensive will not work!
Aliphatic
Aromatic

CO2 effluent from an Ethanol Plant

CO2 leaves the ethanol plant vent at nearly atmospheric pressure, 70F to 80F,
saturated with water (1,436 lb water per MMscf CO2), but otherwise relatively
pure.
CO2 Stream Specification
CO2
97% minimum
O2
6,000 ppm maximum
N2
24,000 ppm maximum
Ethanol
200 ppm maximum
Acetaldehyde
100 ppm maximum
Other Hydrocarbons
20 ppm maximum
SO2
20 ppm maximum
H2S
20 ppm maximum
Jeff Roskam, United BioEnergy
Specification for gases from Fermenter, after the water scrubber