Is There a �New Dawn� for CO 2 -EOR? by Ek5sa4i


									Is There a “New Dawn” for CO2-EOR?

      Presented at WY EOR task force meeting
                  July 25, 2006
                   Casper, WY

                Dag Nummedal
        Colorado Energy Research Institute
             Colorado School of Mines
                   Golden, CO
View of the SPE Forum, Broomfield,
            June 30, 06
 Consensus is yes!
     Large amounts of CO2 will be generated in
      the future (GTL, coal gasification, coal to
      liquids, heavy oil SAGD, gas fields, oil
      shale); supply for EOR will increase
     CO2 is valuable commodity for EOR
      purposes. Now scarce in the US
     CO2 is waste for sequestration folks –
      resource to EOR (different ‘drivers’)
     Costs/Fiscal regimes will evolve to make
      CO2 EOR attractive; e.g. cap and trade
CO2 for EOR in the Rocky Mountains

 Present: use
 CO2 for EOR
 Goal: use
 power plant
 CO2 for EOR
 and sequestration
    Wyoming CO2 Budget (’03)

CO2 Production
   LaBarge: 9.7 MM tons/yr
   Madden: 1.2 MM tons/yr
   Power plant release: 58 MM tons/yr

CO2 Requirements
   OOIP in WY candidate reservoirs: 8 BBO
   CO2 flooding recovers 10 -15% of OOIP
   EOR potential: 0.8 – 1.2 BBO
   CO2 required: 460 – 700 MM tons total
           A Glimpse of the Future:
          Coal Burning Power Plants
              w/ Carbon Capture
British Consortium to Generate Clean Electricity from Hydrogen
BP press release, June 30, 2005.
   BP, ConocoPhillips, Shell and Scottish and Southern Energy (SSE), have
   announced that they are to commence engineering design of the world's first
   industrial scale project to generate 'carbon-free' electricity from hydrogen.
Raw material: natural gas.
Main product: H2 as fuel for turbine for electricity.
CO2: Pipeline to Miller oil field, 240 km offshore.

Pet Coke for H2 and CO2-EOR
BP press release, February 14 2006. Carson, CA
BP and Edison Mission Group (EMG), a subsidiary of Edison International, plan on
   building a new $1 billion, 500 MW hydrogen-fueled power plant in California,
   which, while not using renewable energy, will generate clean electricity and
   sequester its carbon dioxide (CO2) emissions.
Raw material: petroleum coke.
Main product: H2 to fuel gas turbine for electricity.
CO2: Capture 90% of emissions; pipeline to an oil field for CO2-EOR.
         Global Growth in
         CO2-EOR Projects                 Announced Feb. 9, 2006

     Shell and Statoil have
     started developing the
     world’s largest project to
     date using carbon dioxide
     (CO2) for enhanced oil
     recovery (EOR) offshore.

     2 to 2.5 million tonnes of
     CO2 annually in two different

•   860 MW gas-fired power plant and methanol facility in Mid-Norway.
• The plant will be fueled by gas from offshore fields – Draugen and Heidrun.
• The project will depend on a government funding and involvement.
• The US Department of Energy projects that carbon-dioxide capture EOR
  could more than quadruple US domestic oil production.
  Japan’s CO2 Storage Commitment
 CLIMATE: Japan to establish underground CO2 storage
 Japan plans to set up facilities around the world to capture carbon
  dioxide from industrial operations and store it underground, the
  Japanese Ministry of Economy, Trade and Industry announced
 The ministry said it aims to use a CO2 capture and storage
  technology called CCS that reduces CO2 emissions into the
  atmosphere by 200 million tons per year, a sixth of current domestic
  CO2 emissions. Japan would store half of the CO2 in country and the
  other half abroad.
 Not only does Japan hope to reduce its own emissions from CCS, it
  hopes to employ the same technology outside of Japan alongside
  natural gas production. The ministry said it hopes to start obtaining
  carbon credits from developing countries with CCS technology by
 Pending international rules should establish how to count developed
  nations' CO2 reduction using CCS technology in developing
  countries along with developed nations' own reductions (Japan
  Times, June 20).
Japan’s Major Storage Comitment - 2
 Burying CO2 not 'silver bullet' to combating global warming,
    expert says
   While energy firms around the world are heavily investing in projects to
    bury carbon dioxide, it is a costly venture that has the overall effect of a
    pinprick in the world's total emissions, an International Energy Agency
    expert said yesterday.
   "It's expensive ... this can be one solution among many to global
    warming [but] it's not going to be a silver bullet," Kelly Thambimuthu
    said during a carbon dioxide conference in Trondheim, Norway.
   Projects in Norway, Australia, Scotland and the United States tout
    goals of burying as much as 15 million metric tons of CO2 per year, a
    fraction of the 25 billion metric tons of emissions globally every year. A
    500-megawatt coal-fired power plant emits about 3 million metric tons
    per year.
   Additionally, the high cost of storing CO2 underground, when
    compared with the cost of carbon credits, does not make storage cost-
    effective. Thambimuthu said that in Europe for storage to be
    economically viable the cost for a carbon credit would have to rise from
    its current $18.99 per metric ton of CO2 to at least $30 per metric ton
    or higher (Alister Doyle, Reuters/New Zealand Herald, June 20).
Principles Behind
Miscible CO2 Flooding
  CO2 flooding works: History of
CO2 – EOR at two Wyoming Oil Fields
Weyburn Time-Lapse (2002-2000)


                                    RMS Amplitude
                     CO2 fingering   % Difference
  Edge of salt                       (2002-2000)
  dissolution                      Tom Davis, CSM
Global and US Capacity for
Global: 120 GtCO2
US: 12 GtCO2
Current rates of CO2 release:
World: 26 GtCO2

Carbon Dioxide Capture
and Geologic Storage; Battelle, April 2006
JJ Dooley (Lead Author), RT Dahowski, CL Davidson,
MA Wise, N Gupta, SH Kim, EL Malone
Why we need to do this:    Today

CO2 from 400,000 – 0 ybp   375 ppm
CO2 _EOR projects in pipeline
   Gas Injection & Environmental Driven Projects?
   Most New Projects in North America – 15+, But projects in the pipeline in many areas:
    Oman, North Sea, North Slope, Brazil, Malaysia, Tengiz, etc
   Several pure sequestration projects coming
   Source gas limitations. Projects occurring where there is gas, geologic gas, cheap

    waste gas, no market for produced gas: How do we increase available gas?
   Permian Basin successful due to concentration of large fields, low reservoir temperature and
    good residual oil target
   Pipeline and infrastructure built during “irrational exuberance” of 1980’s (could we use some
    “rational” exuberance?)
   CO2 can be successfully contained – no leaks to surface.
                    Oil Production
                                               Base Waterflood
                                                Horizontal Infill

                    7000                         Miscible CO2
Production (m³/d)






                       1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025
   CO2 Injection Operation - Weyburn

                   Hz Producers
Midale                                  Hz CO2 Injector

Marly          CO2 & Oil          CO2
            Oil & CO2


             Vertical                   Vertical Water
             Producer                   Injector
    The Economics of Adding Reserves by
               CO2 Flooding

A: Average finding and
development cost from
1995 to 1999, on different
B: Average finding,
development, and
production cost in the US
from 1995 to 1999 ($10,
left column), compared to
cost per barrel of reserves
developed for CO2
flooding ($6, right
column). From Bradley,
   Weyburn Field


                    EDMONTON                PRINCE

   CANADA                                                                            WINNIPEG
                                             WEYBURN                   BRANDON

                U.S.A.                                      NORTH DAKOTA


                                                                SOUTH DAKOTA

      The Source of CO2
   Dakota Gasification Company

   250 mmscfd CO2 by-product of
                                       Weyburn                 Manitoba

    coal (lignite) gasification
                                   Saskatchewan   Estevan
   95 mmscfd (5000 tonnes/day)
    contracted and injected at     Montana
                                                            North Dakota
   EnCana currently injects 120
    mmscfd (i.e. 21% recycle)


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