CO2 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
Prepared For:
World Bank CCS Training Session

Prepared By:
Vello Kuuskraa, President
ADVANCED RESOURCES INTERNATIONAL, INC.
Arlington, VA

Hosted by:
World Bank CCS Trust Fund

Conducted by:
SECARB-Ed

World Bank ▪ Washington, DC ▪ September 6, 2011

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

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.
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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

What is CO2-EOR?
P u rc h a s e d C O R e c y c le d
2
A n th r o p o g e n ic a n d /o r
In je c te d CO2
N a tu ra l S o u rc e s CO2 fro m
P r o d u c t io n W e ll

Zone of
E ffic ie n t S w e e p

Im m o b ile O il

C O 2 D is s o lv e d (S e q u e s te r e d ) CO 2
in th e Im m o b ile S to re d
O il a n d G a s P h a s e s in P o r e A d d it io n a l
Space D r iv e r M is c ib le O il
CO2 W a te r CO2 Zone O il
W a te r B ank R ec o v e ry

Im m o b ile O il
J A F 0 1 9 8 1 .C D R

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

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

114 Number of CO2-EOR

Dakota Coal
Dakota Coal Projects
Gasification
Gasification Natural CO2 Source
Plant
Plant Industrial CO2 Source
Antrim Gas
Antrim Gas Existing CO2 Pipeline
Plant
Plant CO2 Pipeline Under
LaBarge
LaBarge Encore Pipeline 6 Development
Gas Plant
Gas Plant
11 Lost
Lost Cabin
Cabin Gas
Gas Plant
Plant  Most CO2-EOR activity
2 currently in North America
1
Enid Fertilizer
Enid Fertilizer Plant
Plant  Currently, 114 projects
McElmo Dome
McElmo Dome 1 provide 281,000 B/D in U.S.
Sheep Mountain
Sheep Mountain 8
Bravo Dome
Dome  Additional projects planned to
Bravo Jackson
Jackson
Dome help increase CO2 supply to
Dome
68 1 CO2-EOR
16 – Natural & anthropogenic
Val Verde
Val Verde
Denbury/Green Pipeline
Gas Plants
Gas Plants –New CO2 pipelines

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

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

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

JAF2010_031.XLS
300,000
Significant further growth in production
GULF COAST/OTHER constrained by available supplies of CO2
250,000 MID-CONTINENT
Incremental Oil Recovery (barrels/day)

ROCKY MOUNTAINS
PERMIAN BASIN
200,000

150,000

100,000

50,000

0
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Year
Source: Advanced Resources Int’l., based on Oil and Gas Journal, 2010.

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

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.)

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

Significant Volumes of CO2 Are Already

Being Injected for EOR in U.S. (Year 2011)
CO2 Supply (MMcfd/million mt)
State / Province
for EOR / Storage CO2 Source Type and Location Geologic Anthropogenic
Texas-Utah- Geologic (Colorado-New Mexico)
1,575 340
New Mexico-Oklahoma Gas Processing (Texas)
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

* 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)

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 CO2 and
Storing CO
2 Storage in Depleted
Producing Oil Fields:
Domestic CrudeThe
OilWorldwide Potential
with “Next OfferedCCS
Generation” by CO
2
andEnhanced
CO2-EOR Oil Recovery
Technology

Advanced Power Plants Using EOR for Storage

Summit’s Texas Clean Energy

IGCC Project
• 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.
Source: Siemens Energy

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

CO2- EOR Activity Outside of U.S.

Area Oil
(Acres) Formation Depth Gravity Viscosity
Canada
Weyburn Unit 9,900 LS/Dolo 4,660’ 28o 3 cp
Joffre 6,625 Sand 4,900’ 42o 1 cp
Trinidad
Forest Reserve 500 Sand 2,000-4,200’ 17-25o 10-100+ cp
Oropouche 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.

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

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

• 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
Canada Regina – 55 MMt with EOR/sequestration
Weyburn (compared to 60 MMt from incremental oil
USA
from CO2-EOR)
Saskatchewan Canada Manitoba
• A 200 mile CO2 pipeline connects the Coal
USA
Gasification Plant at Beulah, ND with the
Montana North Dakota Weyburn oil field in Canada.

Beulah
CO2
Source: EnCana, 2005

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

Potential of “Next Generation” CO2-EOR Technology

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

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

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*

Future Challenge
393 Billion Barrels

Cumulative Production
182 Billion Barrels

Proved Reserves
22 Billion Barrels

Source: Advanced Resources Int’l. (2009)

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

“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.

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery
Integrating CO2-EOR and CO2 Storage Could Increase Storage Potential

CO22 Source
Oil to Production Well
Market

CO22
Injection

CO22
Recycled

Swept Area

Current Water Oil Bank Stage #1

Oil Contact
Stage #2
Unswept Area
Original
Water
Oil Contact Stage #3
TZ/ROZ

Saline Reservoir
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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

Oil Recovery Performance From Permian Basin

San Andres Formation

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

Updated Typical Permian Basin CO2-EOR Project Cost

Structure (Occidental Petroleum)

*$100/Bbl Marker Price

Source: Occidental Petroleum Corporation, May 2011

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

Domestic Oil Supplies and CO2 Demand (Storage)

Volumes from “Next Generation” CO2-EOR Technology

Potential Oil Recovery CO2 Demand**

150 60
137
Billion Barrels of Recoverable Oil

125 45 50

Billion Tons of CO2 Storage

100 40

75 67 30

20
50 20

25 10

0 0
Technical Economic* Technical Economic*

*At an oil price of $85/B, a CO 2 market price of $40/mt and a 20% ROR, before tax.
**Includes 2,300 million metric tons of CO 2 provided from natural sources and 2.6 billion barrels already produced or being
developed with miscible CO 2-EOR.
Source: Advanced Resources Int’l (2011).

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

Volumes of Anthropogenic CO2 Storage Capacity Available

from “Next Generation” CO2-EOR Technology

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

Total CO2 Anthropogenic CO2 Total CO2 Anthropogenic CO2
300
Number of 1 GW Size Coal-Fired Power Plants*

240
228

200

105
100 93

*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 CO 2 market price of $40/mt and a 20% ROR, before.
Source: Advanced Resources Int’l (2011).

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

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.

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

World Potential from CO2 Enhanced Oil Recovery

Region Name Basin

Count
Asia Pacific
Central and South America
Europe
Former Soviet Union
Middle East and North Africa
North America/Other
North America/United States
South Asia
S. Africa/Antarctica
Total
8
7
2 Assessed 54 large world oil basins,
6 including 14 in the U.S., for CO2-based
11 Enhanced Oil Recovery.
3 • High level, 1st order assessment of CO2-
14 EOR and associated storage potential,
1 using U.S. experience as analog.
2 • Tested basin-level estimates with detailed
54 modeling of 47 large oil fields in 6 basins.

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

CO2 Storage Potential with CO2-EOR

(Including Reserves Growth)

Number of CO2-EOR Potential CO2 Storage Potential

Region
Fields (Billion Barrels) (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

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Large Oil Fields with CO2-EOR Potential Near Jordan

Text

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

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

Ultimate
Primary/Secondary Average Maximum Minimum
Distance and Number of Oil Recovery Depth Depth Depth
Geologic Province Fields (MMBbls) (Ft) (Ft) (Ft)
Fields Within 500 Miles (800km)
Mesopotamian Foredeep Basin 1 16,000 10,000 10,000 10,000
Red 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 3,900
Zagros Fold Belt 16 103,468 7,152 15,420 3,500
Greater Ghawar Uplift 5 98,270 7,618 13,500 5,550
Interior Homocline-Central Arch 7 22,529 8,352 13,720 4,760
Widyan Basin-Interior Platform 7 5,950 9,873 10,760 8,200
Totals 92 585,771
J AF2011_ 050.XLS

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

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.

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 CO2 Storage in Depleted Oil Fields: The Worldwide Potential Offered by CO 2 Enhanced Oil Recovery

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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Office Locations
Washington, DC
4501 Fairfax Drive, Suite 910
Arlington, VA 22203
Phone: (703) 528-8420
Advanced Fax: (703) 528-0439

Resources Houston, Texas

International 11490 Westheimer, Suite 520
Houston, TX 77042
www.adv-res.com Phone: (281) 558-6569
Fax: (281) 558-9202

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