Small CO2 EOR Primer

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    Carbon DioxideEnhanced Oil Recovery

    Untapped Domestic Energy Supply

    and Long Term Carbon Storage Solution

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    Introduction

    As the United States grapples with the twin challenges

    o reducing dependence on oreign energy sources and

    reducing emissions o greenhouse gases, the topic o

    carbon dioxide (CO2) enhanced oil recovery (EOR) has

    received increased attention. In order to help inorm

    the discussion, the Department o Energys National

    Energy Technology Laboratory has published this

    primer on the topic. Hopeully, this brie introduction

    to the physics o CO2

    EOR, the undamental engineering

    aspects o its application, and the economic basis on

    which it is implemented, will help all parties understand

    the role it can play in helping us meet both o the

    challenges mentioned above.

    Disclaimer

    Reference herein to any specific commercial product, process, or service by trade

    name, trademark, manufacturer, or otherwise does not necessarily constitute or imply

    its endorsement, recommendation, or favoring by the United States Government or

    any agency thereof. Neither the United States Government nor any agency thereof,

    nor any of their employees, makes any warranty, express or implied, or assumes any

    legal liability or responsibility for the accuracy, completeness, or usefulness of any

    information, apparatus, product, or process disclosed, or represents that its use would

    not infringe privately owned rights.

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    Table of Contents

    The Basics of Carbon Dioxide EOR 4

    Why It works 4

    How It Works 6

    How Much Extra Oil Gets Produced 8

    Where Its Being Done 9

    Screening Reservoirs for CO2

    EOR 9

    CO2

    Availability 10

    Anthropogenic CO2

    Sources 11

    US CO2

    EOR Demographics 12

    CO2

    EOR Economics 13

    Its Future Potential 14

    Production Outlook 14

    Tax Incentives 17

    CO2

    EOR and Sequestration 17

    Sequestration Potential in Oil Reservoirs 18

    What DOE is Doing 21

    Whats Next? 23

    Glossary 26

    Contacts 30

    Carbon Dioxide Enhanced Oil Recovery

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    The Basics of Carbon Dioxide EOR

    Why It Works

    Why does injecting carbon dioxide (CO2) into the pore spaces o a rock help

    move crude oil out? CO2

    has two characteristics that make it a good choice

    or this purpose: it is miscible with crude oil, and it is less expensive thanother similarly miscible uids. What does it mean to be miscible? Imaginethat you get oil on your tools while working on your cars engine. Water willget a little o the oil o, soap and water will do a better job, but a solventwill

    remove every trace. This is because a solvent can mix with the oil, orm ahomogeneous mixture, and carry the oil away rom the tools surace. Fluidpairs like ethanol and water, vinegar and water, and engine degreasersand motor oil exhibit miscibility, that is, the ability o luids to mix in all

    proportions (see page 26 or a glossary). As we know, oil and water dontmix, as they are immiscible; and as a result, completely removing oil romtools or engine parts requires a solvent.

    We could use similar miscible solvents to clean the oil rom undergroundreservoirs, but since these products are rened rom crude oil and thereorerelatively expensive, it does not make economic sense to do so, regardless

    o their eectiveness. The same goes or natural gas enriched with heavierhydrocarbons like propane; it is miscible with oil but it is also a valuablecommodity. However, underground deposits o CO

    2are relatively inexpensive,

    naturally occurring sources o the gas that can be extracted in large quantities,

    making it a more sensible choice. I CO2produced by human activities can becaptured inexpensively, it could become

    a source as well.

    When we inject CO2

    into an oil reservoir,it becomes mutually soluble with the

    residual crude oil as light hydrocarbonsrom the oil dissolve in the CO

    2and CO

    2

    dissolves in the oil. This occurs mostreadily when the CO

    2density is high

    (when it is compressed) and when the oil

    contains a signicant volume o light(i.e., lower carbon) hydrocarbons (typically

    a low-density crude oil). Below someminimum pressure, CO

    2and oil will no

    longer be miscible. As the temperatureincreases (and the CO

    2density decreases),

    or as the oil density increases (as thelight hydrocarbon raction decreases),the minimum pressure needed to attain

    Carbon Dioxide Enhanced Oil Recovery

    Oil and water orm separate

    phases when mixed.

    Oily suraces can be cleaned i a solvent is used

    that is completely miscible with the oil.

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    oil/CO2

    miscibility increases. For this reason, oil eldoperators must consider the pressure o a depletedoil reservoir when evaluating its suitability or CO

    2

    enhanced oil recovery. Low pressured reservoirs may

    need to be re-pressurized by injecting water (seepage 6 sidebar on waterooding).

    When the injected CO2

    and residual oil are miscible,the physical orces holding the two phases apart(interacial tension) e ectively disappears. This

    enables the CO2

    to displace the oil rom the rockpores, pushing it towards a producing well just as acleaning solvent would remove oil rom your tools.

    Cross-section illustrating how carbon dioxide and water can be used to ush residual oil rom a subsurace rock ormation between wells

    As CO2

    dissolves in the oil it swells the oil and reducesits viscosity; aects that also help to improve theefciency o the displacement process.

    Oten, CO2 oods involve the injection o volumeso CO

    2alternated with volumes o water; water

    alternating gas or WAG oods. This approach helpsto mitigate the tendency or the lower viscosity CO

    2

    to nger its way ahead o the displaced oil. Once theinjected CO

    2breaks through to the producing well,

    any gas injected aterwards will ollow that path,reducing the overall efciency o the injected uidsto sweep the oil rom the reservoir rock.

    Carbon Dioxide Enhanced Oil Recovery

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    How It Works

    The physical elements o a typical CO2

    lood operation can be used toillustrate how the process works. First, a pipeline delivers the CO

    2to

    the ield at a pressure and density high enough or the project needs(>1200 pounds per square inch [psi] and 5 pounds per gallon; or comparisonwater density is 8.3 pounds per gallon), and a meter measures the volumeo gas purchased. This CO

    2is directed to injection wells strategically placed

    within the pattern o wells to optimize the areal sweep o the reservoir. Theinjected CO

    2enters the reservoir and moves through the pore spaces o

    the rock, encountering residual droplets o crude oil, becoming misciblewith the oil, and orming a concentrated oil bank that is swept towards the

    producing wells.

    At the producing wellsand there may be three, our or more producers per

    injection welloil and water is pumped to the surace, where it ows to a

    centralized collection acility. The pattern o injectors and producers, whichcan change over time, will typically be determined based on computersimulations that model the reservoirs behavior based on dierent design

    scenarios. A well maniold allows or individual wells to be tested to seehow much oil, gas and water is being produced at each location and i theconcentration o oil is increasing as the oil bank reaches the producing wells.

    The produced uids are separated and the produced gas stream, whichmay include amounts o CO

    2as the injected gas begins to break through

    at producing well locations, must be urther processed. Any produced

    CO2

    is separated rom the produced natural gas and recompressed orreinjection along with additional volumes o newly-purchased CO

    2. In

    some situations, separated produced water is treated and re-injected,oten alternating with CO

    2injection, to improve sweep efciency (the WAG

    process mentioned earlier).

    CO2

    injection wellheadProduction well pump jack

    CO2

    pipeline metering

    Waterooding and

    Residual Oil

    When an oil reservoir is rst

    produced, the pressure that exists

    in the subsurace provides the

    energy or moving the oil, gas

    and water that is in the rock to the

    surace. Ater a while, the pressure

    dissipates and pumps must

    be used to remove additional

    volumes o oil. Depending on

    the characteristics o the rock

    and the oil, a considerable

    amount o the original oil

    in place may be let behind

    (perhaps 60 percent or more) as

    residualoil. Waterlooding is aprocess whereby water is pumped

    down selected wells to push a

    portion o the remaining oil out

    o the rock towards the producing

    wells. In most cases, CO2

    enhanced

    recovery operations take place in oil

    reservoirs where this less expensive

    waterooding option has already

    been implemented, although the

    remaining oil saturation in the

    post-waterood reservoir is still

    signicant, perhaps 50 percent o

    the original oil in place.

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    Compressor or compressing gas prior to re-injection

    Well production maniold to allow

    individual testing o wells

    Separator or separating

    produced uids (oil, water,

    and gas)

    In WAG injection, water/CO2

    injection ratioshave ranged rom 0.5 to 4.0 volumes o water

    per volume o CO2 at reservoir conditions.The sizes o the alternate slugs range rom0.1 percent to 2 percent o the reservoir porevolume. Cumulative injected CO

    2volumes

    vary, but typically range between 15 and

    30 percent o the hydrocarbon pore volumeo the reservoir. Historically, the ocus in CO

    2

    enhanced oil recovery is to minimize the

    amount o CO2

    that must be injected perincremental barrel o oil recovered, especiallysince CO

    2injection is expensive. However, i

    carbon sequestration becomes a driver or

    CO2 EOR projects, the economics may beginto avor injecting larger volumes o CO

    2per

    barrel o oil recovered, i.e., i the cost o theCO

    2is low enough.

    CO2

    processing plant where the gas is collected or re-injection

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    How Much Extra Oil Gets Produced

    The production plot shown below illustrates how a eld can respond to CO2

    injection. This example, or Shell Oils Denver Unit in the Wasson Field in WestTexas, shows oil and water production, and water and CO

    2

    injection, oversixty years. The primary production portion o the elds lie lasted rom 1938through about 1965. The oil production rate peaked in the mid-1940s andthen began to decline as reservoir pressure depleted. The operator initiatedpressure maintenance with water injection (waterooding) in 1965 and oilproduction rates responded quickly.

    As the injected water began to break through at the production wells, thevolume o water produced also rose rapidly in the 1970s. By the end o 1982,the volumes o water injected and produced were considerably more thanthe volume o oil produced. About two years ater the operator initiated CO

    2

    injection in 1983, the oil production decline began to slow and eventuallyleveled o. At the end o 1998, one could determine the incremental oilattributable to CO

    2EOR by calculating the cumulative dierence between the

    projected decline rate without CO2

    injection and the actual production rate.

    In this example, the volumes o oil produced are signicant because theDenver Unit ood is large, with more than 2 billion barrels o oil originally inplace (OOIP) and a residual oil saturation ater waterooding o 40 percent.The typical well pattern is ten producing wells or every three injectors.Currently, the Denver Unit produces about 31,500 barrels o oil per day, owhich 26,850 is incremental oil attributable to the CO

    2ood. The Wasson

    Fields Denver Unit CO2

    EOR project has resulted in more than 120 millionincremental barrels o oil thru 2008.

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    Plot showing oil production versus

    time or primary, secondary

    (waterood) and tertiary (CO2

    EOR)

    oil production periods or the Denver

    Unit o the Wasson Field in West

    Texas. Incremental oil production

    due to EOR is represented by the

    green area under the curve at right.

    The Wasson Fields

    Denver Unit CO2

    EOR

    project has resulted

    in more than

    120 million

    incremental barrels

    o oil thru 2008.

    Carbon Dioxide Enhanced Oil Recovery

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    Where Its Being Done

    The United States leads the world in both the number o CO2

    EOR projects and in the volume o CO2

    EOR oilproduction, in large part because o avorable geology. The Permian Basin covering West Texas and southeasternNew Mexico has the lions share o the worlds CO

    2

    EOR activity or two reasons: reservoirs there are particularlyamenable to CO

    2ooding, and large natural sources o high purity CO

    2are relatively close. However, a growing

    number o CO2EOR projects are being launched in other regions, based on the availability o low cost CO

    2.

    Screening Reservoirs for CO2

    EOR

    What kinds o reservoirs are most suitable or CO2

    EOR? In theory, any type o oil reservoir, carbonateor sandstone, could be suitable

    provided that the

    minimum miscibility pressure can be reached, there isa substantial volume o residual crude oil remaining,

    and the ability o the CO2 to contact the crude oil isnot hindered by geological complexity. Typically, areservoir that has undergone a successul wateroodis a prime candidate or a CO

    2ood.

    Most o the large reservoirs in the Permian Basinare carbonate ormationstypically limestone ordolomitethat produce rom depths o 3,000 to 7,000 eet, and have undergone extensive waterooding. Post-waterood recovery could be 30 to 45 percent o the OOIP, with relatively high residual oil saturation. A successulCO

    2EOR project could add another 5 to 15 percent o OOIP to the ultimate recovery.

    In addition, the Permian Basin reservoirs tend to eature

    a low geothermal gradient (i.e., rate o increase intemperature with depth), which makes the pressurerequired or CO

    2miscibility with the crude oil lower.

    Geologically, these reservoirs also exhibit a high degreeo continuity between wells, and rock that is laterally andvertically uniorm, and has relatively high permeability.Operators interested in enhancing recovery through CO

    2

    EOR will screen their reservoirs to determine the bestcandidates based on rock and uid characteristics, pastproduction behavior and response to waterooding, anddetailed geological assessments. The screening criteriaused to identiy avorable reservoirs are reservoir depth, oil gravity, reservoir pressure, reservoir temperature, and oilviscosity. A number o analysts have developed ranges or these screening criteria (see table), which operators canuse to high-grade their reservoirs or urther detailed technical and economic assessments. Perhaps the most criticalactor or selecting candidates or CO

    2EOR is a growing consensus among experts that more detailed geophysical

    mapping o the remaining oil in a reservoir is needed, particularly in geologically heterogeneous ormations.In the 1980s the Department o Energy (DOE) helped develop sotware screening tools designed to quickly identiyhow key variables might inuence CO

    2project perormance and economics prior to perorming a detailed numerical

    simulation. One such tool, CO2-Prophet, was developed by DOE and Texaco. A number o other commercial screening

    tools are now available.

    Criteria or Screening Reservoirs or CO2

    EOR Suitability

    Depth, t < 9,800 and > 2,000

    Temperature, F < 250, but not critical

    Pressure, psia > 1,200 to 1,500

    Permeability, md > 1 to 5

    Oil gravity, API > 27 to 30

    Viscosity, cp 10 to 12

    Residual oil saturation aterwaterood, raction o pore space

    > 0.25 to 0.30

    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    Carbon Dioxide Enhanced Oil Recovery

    Depiction o reservoir model used or simulation o CO2

    ooding

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    CO2

    AvailabilityAlthough the large Permian Basin reservoirs were readily recognized asideal candidates or miscible looding through CO

    2injection, it was the

    ready availability o a low-cost source o CO2 that drove the Permian BasinsEOR boom in the 1970s and 1980s. The irst commercial lood occurredin Scurry County, Texas, in 1972, in what was known as the SACROC Unit(SACROC stands or Scurry Area Canyon Ree Operators Committee). For this

    project, the operator (Chevron) recovered CO2

    rom natural gas processingplants in the southern part o the basin (that would have otherwise beenvented) and transported the gas 220 miles or injection at SACROC.

    The technical success o this project, coupled with the high oil prices o thelate 1970s and early 1980s, led to the construction o three major CO

    2pipelines

    connecting the Permian Basin oil elds with natural underground CO2

    sources

    located at the Sheep Mountain and McElmo Dome sites in Colorado and

    Bravo Dome in northeastern New Mexico (see map). Construction o thepipelines spurred an acceleration o CO

    2injection activity in Permian Basin

    elds. Today, operators inject more than 1.6 billion cubic eet per day o

    naturally-sourced CO2

    into Permian Basin oil elds to produce 170,000 barrelso incremental oil per day rom dozens o elds.

    Carbon Dioxide Enhanced Oil Recovery

    Location o Current CO2

    EOR Projects and Pipeline Inrastructure

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    But even with CO2

    sources just a ew hundred miles away, the cost o delivering and injecting the CO2

    is signicant.Industry has spent more than $1 billion on 2,200 miles o CO

    2transmission and distribution pipeline inrastructure

    in support o CO2

    ooding in the Permian Basin. Typically, it costs $0.25-0.75 per thousand cubic eet to transportCO

    2to West Texas elds rom the sources to the north. With a substantial CO

    2pipeline and distribution inrastructure

    in place, Permian Basin operators have spread the costs among several large elds, and the inrastructure in these

    anchor elds in turn has helped reduce the cost o delivered CO2 to smaller elds in the basin. Still, analysts haveestimated that there is as much as 500 million cubic eet (25,974 metric tons) per day o pent-up demand or CO2

    inthe basin rom oil eld operators seeking to implement economic CO

    2EOR projects. Additional natural CO

    2resource

    has been discovered in the Arizona-New Mexico region and may be developed i the economics remain avorable.To the east, Denbury Resources, a Plano, Texas-based independent, is developing a similar inrastructure inMississippi, Louisiana, and southeastern Texas. Denbury owns a large natural CO

    2resource at Jackson Dome,

    Mississippi, which it describes as the largest CO2

    resource east o the Mississippi River. Jackson Dome already eedsCO

    2to EOR projects Denbury operates in Mississippi and Louisiana. Denbury plans to build a major extension rom

    the southern terminus o its existing CO2

    pipeline in Louisiana to deliver CO2

    or injection at the Hastings Field inTexas. The company is also negotiating with industrial plants along the pipeline route, including our proposedgasiication plants ed by coal or petroleum coke, to secure additional supplies o captured anthropogenic

    (man-made) CO2 or EOR projects in all three states.

    Anthropogenic CO2

    SourcesMuch discussion has centered on methods to reduce or eliminate CO

    2emissions rom industrial sources due to

    concerns over CO2

    as a greenhouse gas. Prominent in this discussion are concepts to capture and saely andpermanently store anthropogenic CO

    2in underground ormations, a process known as sequestration. In CO

    2EOR

    projects, all o the injected CO2

    either remains sequestered underground or is produced and re-injected in asubsequent project, making the notion o using captured anthropogenic CO

    2or EOR in places ar removed rom

    natural sources o CO2

    a likely possibility. Companies have already launched several examples o this approach.

    For years, ExxonMobil Corp. has sold CO2 rom its La Barge, Wyoming gas processing acility to area oil producers or usein CO

    2EOR projects (see map). The company currently captures 4 million metric tons o CO

    2per year or this purpose.

    Another major CO

    2EOR project using industrially sourced CO

    2is located at Weyburn oil eld, a Williston basin reservoir

    just across the U.S. border in Saskatchewan, Canada. EnCana Corp., a Canadian company, injects about 95 million cubiceet (4,935 metric tons) per day o CO

    2into Weyburn, a 55-year-old eld, to recover an incremental 130 million barrels o

    oil via miscible or near-miscible displacement. The CO2

    is sourced rom the lignite-red Dakota Gasication Companysynthetic uels plant in North Dakota, and delivered via a 205-mile pipeline. EnCana estimates that as much as 585 billioncubic eet (30 million metric tons) o CO

    2will be permanently sequestered underground through the project, while

    boosting the synuels plants revenues by about $30 million per year and extending the Weyburn elds lie by20 to 25 years.

    Other industrially sourced CO2 EOR projects are in the ofngas well. Independent producers Sandridge Energy Inc. andOccidental Petroleum Corp. are developing a $1.1 billionnatural gas processing plant in West Texas that will captureabout 265 billion cubic eet (13.5 million metric tons) o CO

    2

    per year or use in CO2

    EOR operations. Proposals to captureCO

    2rom coal-red power plants, ethanol plants and other

    industrial processes, and use it to supply EOR projects, arebeing considered or unding in a number o states.

    Carbon Dioxide Enhanced Oil Recovery

    Conversions

    1 metric ton o CO2

    equals 545 cubic meters at standardconditions o 14.7 psi and 70 F

    1 metric ton o CO2

    equals 19.25 thousand cubic eet (Mc)at standard conditions o 14.7 psi and 70 F

    The average American car emits about seven metric tonso CO

    2per year

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    US CO2

    EOR DemographicsProduction rom all United States CO

    2EOR projects grew to 240,000 barrels

    per day in 2008, according to the Oil & Gas Journals biennial survey. CO2

    EOR production has jumped signicantly since the early 1980s (see graph).At the same time, the demographics o CO2

    EOR operators have changed.Prior to the early 1990s, almost all CO

    2injection was undertaken by a small

    group o major oil companiesAmerada Hess, Amoco, ARCO, Chevron,

    Exxon, Mobil, Shell, and Texaco. A proactive technology transer programled by DOEs National Energy Technology Laboratory in the 1990s helpedto transer their CO

    2development concepts to the rest o the industry. That

    eort, together with a shit in major company investment overseas, led to

    the current situation where independent producers dominate the roster oCO

    2EOR operators (see table).

    The SACROC Unit, where commercial CO2

    EOR got its start, is now in the

    hands o an independent. Kinder Morgan CO2 Company, which is thesecond largest producer o oil in Texas and one o the nations largestowners and transporters o CO

    2, has more than tripled SACROC production

    since acquiring a majority interest in the unit in 2000.

    One o the most active CO2

    EOR operators is another independent producer,

    Occidental Petroleum (Oxy). Oxy operates more than hal o the current CO2

    oods in the Permian Basin and is one o the dominant producers o CO2

    EORoil, and the largest oil producer in Texas.

    Major U.S. CO2

    Operators (OGJ Biennial EOR Survey 2008)

    CompanyMiscibleProjects

    LocationsIncrementalProduction(MBO/D*)

    Occidental 29 TX, NM 90.2

    Hess 6 TX 25.3

    Kinder Morgan 1 TX 24.2

    Chevron 4 CO, TX, NM 21.3

    Denbury Resources 13 MS, LA 17.8

    Merit Energy 7 WY, OK 13.6

    ExxonMobil 2 TX, UT 11.7

    Anadarko 4 WY 9.0

    Whiting Petroleum 3 TX, OK 6.9

    ConocoPhillips 2 TX, NM 5.5

    12 otherindependents

    28 TX, OK. UT, KS, MI 14.9

    Total 99 240.4

    * thousand barrels o oil per day

    A proactive technology

    transer program led by

    NETL in the 1990s helped

    to transer their CO2

    development concepts to

    the rest o the industry.

    Carbon Dioxide Enhanced Oil Recovery

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    CO2

    EOR Economics

    Implementing a CO2

    EOR project is a capital-intensive undertaking. It involves drilling or reworking wells to serve as

    both injectors and producers, installing a CO2

    recycle plant and corrosion resistant eld production inrastructure, andlaying CO

    2gathering and transportation pipelines. Generally, however, the single largest project cost is the purchase

    o CO2. As such, operators strive to optimize and reduce the cost o its purchase and injection wherever possible.

    Higher oil prices in recent years have signicantly improvedthe economics o CO

    2EOR. However, oil eld costs have

    also increased sharply, reducing the economic margin

    essential or justiying this oil recovery option to operatorswho still see it as bearing signicant risk. Both capitaland operating costs or an EOR project can vary over arange, and the value o CO

    2behaves as a commodity,

    priced at pressure, pipeline quality, and accessibility, so it is

    important or an operator to understand how these actorsmight change. Total CO

    2costs (both purchase price and

    recycle costs) can amount to 25 to 50 percent o the costper barrel o oil produced. In addition to the high up-rontcapital costs o a CO

    2supply/injection/recycling scheme,

    the initial CO2

    injection volume must be purchased well in

    advance o the onset o incremental production. Hence,the return on investment or CO

    2EOR tends to be low,

    with a gradual, long-term payout.

    Illustrative Costs and Economics o a CO2

    EOR Project

    Oil Price ($/Barrel) $70

    Gravity/Basis Dierentials, Royalties andProduction Taxes

    ($15)

    Net Wellhead Revenues ($/Barrel) $55

    Capital Cost Amortization ($5 to $10)

    CO2

    Costs (@ $2/Mc or purchase;$0.70/Mc or recycle)

    ($15)

    Well/Lease Operations and Maintenance ($10 to $15)

    Economic Margin, Pre-Tax ($/Barrel) $15 to $25

    U.S. CO2

    EOR Production

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    Given the signicant ront-end investment in wells, recycle equipment, andCO

    2, the time delay in achieving an incremental oil production response,

    and the potential risk o unexpected geologic heterogeneity signicantlyreducing the expected response, CO

    2EOR is still considered to be a risky

    investment by many operators, particularly in areas and reservoirs where it

    has not been implemented previously. Oil reservoirs with higher capital costrequirements and less avorable ratios o CO

    2-injected-to-incremental-oil-

    produced will not achieve an economically justiable return on investmentwithout advanced, high-efciency CO

    2EOR technology and/or scal/tax

    incentives or storing CO2.

    Its Future Potential

    While CO2

    EOR has demonstrated signiicant success over nearly our

    decades, signicant potential remains or additional growth in productionrom this process. This potential is urther enhanced by the possibility o

    using captured anthropogenic CO2

    in elds that are good candidates orCO

    2EOR but ar rom natural CO

    2source reservoirs.

    CO2

    EOR has increased recovery rom some oil reservoirs by an additional4 to 15 percentage points over primary and secondary recovery eorts thatcan account typically or about 30 to 35 percent o OOIP. However, some pilotprojects have reported incremental recovery o as much as 22 percent, and

    studies have suggested that new game-changing technology innovationsthat bolster the efciency o CO

    2oods or enhance geophysical mapping o

    residual oil pockets could push total ultimate oil recovery in some reservoirsto more than 60 percent o OOIP. CO

    2EOR currently is responsible or about

    4 percent o U.S. oil production, displaying a long-term growth trendthat stands in stark contrast to the long-term decline trend or U.S. oilproduction overall.

    Production Outlook

    In its 2009 Annual Energy Outlook the Department o Energys EnergyInormation Administration (EIA) notes that the long-term decline in U.S.

    crude oil production has slowed over the past ew years as drilling activityresponded to higher oil prices. Looking out to 2030, EIA orecasts thatoverall U.S. onshore oil production will increase to 3.8 million barrels perday rom 2.9 million barrels per day in 2007, due in part to the increased

    application o CO2

    EOR (see graph). This increase helps boost Lower 48oil production high enough to oset a attening o the growth curve rom

    Signicant potentialremains or additional

    growth in oil production

    rom this process.

    Carbon Dioxide Enhanced Oil Recovery

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    deepwater oil production. EIAs assessment assumesthat anthropogenic CO

    2will be available at a cost

    rom just under $1 to just over $3 per Mc, deliveredto the eld.

    The projected rapid take-up o new technology,coupled with higher oil prices, could make a big

    dierence in the outlook or CO2EORs contribution

    to uture U.S. oil production. Certainly, the volumeo stranded oil let behind in U.S. reservoirsater conventional primary and second recovery

    techniques is massiveas much as two-thirds oall the oil discovered in the United States resides inthis category (see remaining oil pie chart). However,laboratory tests, and a ew selected eld projects

    show that signiicant increases in CO2

    EOR oilrecovery efciency are possible.

    Domestic crude oil production by source 1990-2030

    (million barrels per day)

    Large volumes o domestic oil remain stranded ater primary/secondary recovery.

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    A 2009 study by Advanced Resources International (ARI) or DOE assessedthe role that best practices CO

    2EOR technologies could play in U.S. oil

    recovery. ARI noted that introducing best practices technology to regionswhere it is currently not yet applied, lowering risks by conducting research,

    pilot tests and ield demonstrations in geologically challenging ields,

    providing state production tax incentives, ederal investment tax credits,and royalty relie, and establishing low-cost, reliable, CO

    2supplies, could

    result in an additional 85 billion barrels o technically recoverable oil romthe 400 billion barrels o oil remaining in large reservoirs across 11 basins.

    However, many actors play a role in the suitability and economics o

    CO2

    EOR applicationsnot the least o which are the price o oil and thecost and availability o CO

    2. Consequently, there can be a substantial gap

    between a technically recoverable resource and a proven reserve volumebooked to an oil companys balance sheet. Still, the study points to the

    signiicant potential o CO2 EOR to contribute to the nations uture oilsupply. Increasing the volume o technically recoverable domestic crude oilcould help reduce the Nations trade decit and enhance national energysecurity by reducing oil imports, add high-paying domestic jobs rom the

    direct and indirect economic eects o increased domestic oil productionand help to revitalize state economies and increase ederal and staterevenues via royalties, and corporate income taxes.

    Carbon Dioxide Enhanced Oil Recovery

    Potential Technically

    Recoverable

    Incremental Oil

    with best practices

    CO2

    EOR Technology

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    Tax IncentivesIt is important to recognize that much o the CO

    2EOR development that has

    occurred in the U.S. might not have happened (or might not have happenedas quickly) without the introduction o tax credits and other scal incentivesto help oset the large nancial risks. As a means to help boost domestic oilproduction, the ederal tax code has had some sort o incentive or tertiaryrecovery since 1979, when crude oil was still under ederal price controls.Incentives were codied with the U.S. Federal EOR Tax Incentive in 1986, andCO

    2EOR production growth subsequently grew rapidly. This incentive is a

    15 percent tax credit that applies to all costs associated with installing a CO2

    ood, the purchase cost o CO2, and CO

    2injection costs.

    In addition, eight states have introduced some orm o tertiary oil productiontax incentives related to the value o the incremental oil produced. Texas,which produces more than 80 percent o all U.S. CO

    2EOR oil, provides a

    severance tax exemption on all the oil produced rom a CO2-ooded reservoir.

    CO2

    EOR and SequestrationBeyond its potential to augment U.S. oil production, CO

    2EOR is getting

    intensive scrutiny by industry, government, and environmental organizationsor its potential or permanently storing CO

    2. The thinking goes that CO

    2EOR

    can add value by maximizing oil recovery while at the same time oering abridge to a reduced carbon emissions uture. CO

    2EOR eectively reduces the

    cost o sequestering CO2

    by earning revenues or the CO2

    emitter rom sales

    o CO2 to oil producers.

    Many experts look to geologic sequestration as one o the best alternativesor dealing with carbon emissions. The CO

    2EOR industry is an industry

    with a proven track record o saely injecting CO2

    into geologic ormations.EOR operations account or 9 million metric tons o carbon, equivalent toabout 80 percent o the industrial use o CO

    2, every year. Although about

    20 percent o CO2

    used in EOR comes rom natural gas processing plants,the majority used or EOR comes rom natural underground sources anddoes not represent a net reduction in CO

    2emissions. However, industrial

    carbon capture and storage (CCS) oers the potential to signicantly alterthis situation.

    Because o the cost o naturally sourced CO

    2roughly $10-15 per metric

    tona CO2

    ood operator seeks to recycle as much as possible to minimizeuture purchases o the gas. All o the injected CO

    2is retained within the

    subsurace ormation ater a project has ended or recycled to subsequentprojects. Ater years o experience with CO

    2oods, oil and gas operators

    are condent that the CO2

    let in the ground when oil production ends andwells are shut in will stay permanently stored there, assuming the wells areproperly plugged and abandoned.

    The CO2EOR industry

    is an industry with

    a proven track record

    o saely injecting

    CO2

    into geologic

    ormations.

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    EOR could be an enabling

    catalyst or large-scale

    sequestration eforts.

    18

    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    One major oil industry operation that provides an example o suchpermanence is StatoilHydros Sleipner CO

    2project in the North Sea o

    Norway. The company is developing a large gas eld and must strip outCO

    2rom the produced gas stream that is about 9 percent CO

    2by volume.

    Norways imposition o a tax on emitted carbon o $200 per metric

    tonlater reduced to $140 per metric tonled StatoilHydro to compressthe captured CO

    2and inject it into a deep saltwater ormation below the

    seabed. The project, initiated in 1996, required an $80 million investmentbut has resulted in a tax savings o $55 million per year. Regular monitoringo the subsurace shows that the ormation is retaining the injected CO

    2.

    CO

    2EOR technology and equipment needs parallel those envisioned

    or sequestration, with similar surace inrastructure and wells, similarhandling o supercritical (high pressure/low temperature) CO

    2, and

    comparable subsurace simulation and characterization tools (well logs,three-dimensional (3-D) seismic, petrophysical analysis, etc.). The biggestdierences between the two are intent (minimizing CO

    2use in EOR vs.

    maximizing it or sequestration) and regulatory concerns (monitoring,verication, and accounting o the CO

    2over the very long term).

    Sequestration Potential in Oil ReservoirsWhat is the potential or sequestration o CO

    2rom EOR operations? The

    total volume o CO2

    consumed by U.S. CO2

    EOR to date has been about11 trillion cubic eet (560 million metric tons). That pales in comparison withtotal U.S. CO

    2emissions rom industrial sources alone o about 100 trillion

    cubic eet (5,090 million metric tons) per year. However, that does not mean

    that the potential demand or CO2 or EOR will be insignicant; EOR couldbe an enabling catalyst or larger scale sequestration eorts.For example, a study by Montana Tech University ound that CO

    2ooding o

    Montanas Elm Coulee and Cedar Creek oil elds could result in the recoveryo 666 million barrels o incremental oil and the storage o 2.1 trillion cubiceet (109 million metric tons) o CO

    2. All o the CO

    2required or the ood

    could be supplied by a nearby, coal-red power plant, and would equateto 7 years o the plants CO

    2emissions. Furthermore, installation o a

    pipeline and CO2

    capture equipment or the project could provide the basicinrastructure or subsequent storage o CO

    2in other oil elds and in saline

    ormations and unmineable coal seams elsewhere in the state.

    A comparison o two maps in the National Energy Technology LaboratorysCarbon Sequestration Atlas o the United States and Canada showsconsiderable overlap o the respective regional capacities or CO

    2storage

    in oil and natural gas elds and the major sources o CO2

    emissions.

    DOEs Regional Carbon Sequestration Partnership Initiative is the worlds mostcomprehensive eld program dedicated to the assessment and validationo carbon sequestration technologies in saline ormations, oil elds and

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    CO2

    Storage Resource Estimates

    by Regional Carbon Sequestration

    Partnership (RCSP) orOil and Gas Reservoirs

    RCSPBillion

    Metric Tons

    Trillion

    Cubic Feet

    BSCSP* 1.5 29

    MGSC* 0.4 8

    MRCSP* 8.4 165

    PCOR* 24.1 473

    SECARB* 31.1 611

    SWP* 65.0 1,277

    WESTCARB* 7.7 151

    TOTAL 138 2,714

    North American oil feld distribution and calculated capacities

    North American CO2

    source distribution

    Source: Carbon Sequestration Atlas o theUnited States and Canada, DOE/Ofce o

    Fossil Energy/NETL, November 2008.

    Carbon Dioxide Enhanced Oil Recovery

    * RCSPs:

    BSCSPBig Sky Carbon SequestrationPartnership

    MGSCMidwest Geological SequestrationConsortium

    MRCSPMidwest Regional CarbonSequestration Partnership

    PCORPlains CO2

    Reduction Partnership

    SECARBSoutheast Regional CarbonSequestration Partnership

    SWPSouthwest Partnership on CarbonSequestration

    WESTCARBWest Coast Regional CarbonSequestration Partnership

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    coals seams. DOE has been leading the eorts o the RCSPs to identiy thevolumes o carbon dioxide that could be stored in oil felds throughout theUnited States and Canada (see table).

    The RCSPs are carrying out DOE-unded R&D ield projects designed to

    validate and develop the potential or carbon capture and storage withintheir respective areas. A number o these projects combine CO2

    storage withEOR. Ten feld projects are being supported throughout the United Statesand Canada. Seven o the projects have completed injection operationswhile three are injecting with plans to complete injection by the end o 2010.

    The Midwest Geological Sequestration Consortium (MGSC) has evaluatedthe potential or CO

    2storage in a sandstone oil reservoir in the Loudon

    feld o Fayette, Co., Illinois, and is currently conducting another test in theSugar Creek feld near Madisonville, Kentucky and a third injection test inMumord Hills, Indiana. The Southeast Regional Sequestration Partnership(SECARB) is testing the potential or CO

    2storage in Denburys Cranfeld Unit

    near Natchez, Mississippi. The Plains Carbon Dioxide Reduction Partnership(PCOR) continues to carry out research associated with monitoring the ateo CO

    2in a pinnacle ree in Northeastern Alberta. Other RCSPs projects

    are in the Aneth Field in Utah; Permian Basin in Texas; the Williston Basinin North Dakota. The DOE also supports Encanas Weyburn project inSaskatchewan, Canada. Details about these feld projects can be oundonline at (http://www.netl.doe.gov/technologies/carbon_seq/index.html).A 2008 study by INTEK or DOE sought to test the economics o a potentiallinkage between the most likely candidate CO

    2EOR reservoirs and their most

    likely matching industrial CO2

    sources. The study concluded that as much as30 trillion cubic eet o CO

    2or 5 billion cubic eet per day at peak rates o

    injectioncould ultimately be stored under this scenario, with a resulting

    incremental increase in U.S. oil production o 5.5 billion barrels over 25 years.

    Another study carried out by Advanced Resources International (ARI) orDOE-NETL concluded that CO

    2EOR could provide a large, value-added

    market or the sale o CO2

    emissions rom new coal-fred power plantsabout 7.5 billion metric tons between now and 2030. It puts the value othat market at $260 billion.

    Sales o captured CO2

    emissions would help deray some o the costs oinstalling and operating CCS technology. These sales, in turn, could supportearly market entry o as many as 49 one-gigawatt installations o CCStechnology in the coal-fred power sector, according to the ARI study.

    At the same time, concluded ARI, the ensuing CO2

    EOR boom would unlockan additional 39-48 billion barrels o oil prior to 2030, while building aCO

    2transportation inrastructure suitable or subsequent transport o

    CO2

    or sequestration in deep saline ormationswhich are likely to havethe biggest ultimate CO

    2storage potential o all underground options.

    The synergies between CO2

    EOR and CO2

    sequestration may be strongenough to help both eorts happen aster. And there are clear energy,environmental, and economic benefts or America in that kind o uture.

    Carbon Dioxide Enhanced Oil Recovery

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    R&D Objective (Perormer)

    Evaluate and enhance carbon

    dioxide ooding through sweepimprovement (Louisiana State).

    ImproveCO2

    ooding sweep using

    CO2

    gels (SBIR-RTA Systems Inc.)

    ConductCO2

    injection tests in

    the Citronelle oileld in Mobile

    County, AL to improve the

    reliability o computer simulations

    o oil yield rom CO2-EOR and

    calculations o sequestration

    capacity (University o Alabama

    at Birmingham).

    Determinetheeconomicandtechnical easibility o using CO

    2

    miscible ooding to recover oil in

    a Lansing-Kansas City ormation

    oileld in central Kansas (U. Kansas).

    Employmolecularmodeling

    and experiments to design

    inexpensive, environmentally

    benign, CO2-soluble compounds

    that can decrease the mobility

    o CO2

    at reservoir conditions

    (U. Pittsburgh).

    Developaneuralnetworkmodelor CO

    2EOR (University o Louisiana

    at Laayette).

    Developanovel,lowcost

    method to install geophones

    or CO2

    monitoring (SBIR-Impact

    Technologies).

    21

    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    What DOE is Doing

    The Department o Energys Petroleum R&D Program aims to reducethe technology and cost barriers to increasing recovery rom mature

    conventional oil reservoirs. There is also a signiicant e ort targetingunconventional oil resources such as extra heavy oil, oil and tar sands,oil shale, and oil in unconventional reservoirs (like the ractured BakkenShale o North Dakota).

    Several trends highlight the need or continued research into ways toimprove recovery rom conventional domestic oil reservoirs.

    Energydemandcontinuestogrow,andtheneedtoslowthegrowthinoil

    imports or economic and energy security reasons remains strong.

    Onshoredomesticoilproductionisdeclining,buttherearesignicantamounts

    o oil let in conventional reservoirs in mature oil elds.

    Economicextractionoftheseresourceswillrequireresearchtoprovidefora

    better understanding o the geologic nature o these reservoirs as well as newtechnologies or cost-eectively producing the oil. Yet the operators that are

    largely responsible or onshore domestic oil production are or the most partindependent producers who do not invest in R&D.

    NETL is investigating the potential or recovering incremental oil

    rom the Citronelle Field in Alabama using carbon dioxide EOR.The irst stage is developing an improved understanding o the

    geology using state-o-the-art interpretation techniques. Fields like

    Citronelle can demonstrate the potential or recovering domestic oil

    using carbon dioxide captured rom industrial sources.

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    The need or ederal investment in scientic data collection and technologydevelopment is driven by the ollowing acts:

    Whileenhancedoilrecoveryhasbeensuccessfullyappliedinsomeareaswhere

    circumstances are avorable (e.g., Permian Basin), in many other areas perceived

    risk keeps it just beyond reach. The development and demonstration o newEOR technologies and new ways to apply existing EOR technologies can help

    to accelerate its application.

    InmatureeldsthatarethetargetsofEOR,smallproducersfacechallengesthat

    are unique to their situationlow productivity wells, high water cuts, aginginrastructure and tight regulatory constraints. These operations are oten low

    margin and are not targeted by the larger service companies R&D eorts.

    Currently there are 26 unded projects in petroleum R&D portion o NETLsprogram that have either just been completed or are scheduled to continue

    through 2012. O these, seven projects are directed at problems relatedspecically to CO

    2

    EOR. In addition to these extramural projects, an eortunded through the program instituted by Section 999 o the Energy PolicyAct o 2005 aims to evaluate the potential or near-miscible CO

    2ooding

    in midcontinent reservoirs where circumstances preclude re-pressuring tominimum miscibility pressure. Another project is looking at ways to increasethe viscosity o injected CO

    2to improve sweep efciency.

    Together, these projects orm a portolio that is balanced and responsive to theissues acing operators. The data, technologies and tools developed throughthis portolio will help industry make decisions and optimize operations in

    ways that will advance the goal o environmentally sustainable CO2

    EOR.

    NETL is demonstrating carbon dioxide

    ooding EOR in the Hall-Gurney feld in

    Russell, Kansas, using carbon dioxide

    recovered rom a nearby ethanol plant.

    Carbon Dioxide Enhanced Oil Recovery

    Cross-section through the pilot test area o the Citronelle Field shows the challenge o geologiccomplexity in felds where CO

    2ooding is being considered. Well B-19-10 #2 is the CO

    2injection well.

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    The potential o

    CO2

    EOR is not so

    much a matter o

    whether but o

    when.

    Carbon Dioxide Enhanced Oil Recovery

    Whats Next?

    The potential impact o CO2

    EOR is not so much a matter o whetherbut o when. The process works, there is plenty o residual oil in many

    reservoirs, and there is plenty o carbon dioxide available rom a varietyo sources. The speed with which CO

    2EOR is applied to recover the oil

    in U.S. oilelds, will depend on economic decisions that in turn dependprimarily on the:

    Priceofoil

    Costofcapital(interestrates)andcapital

    inrastructure construction (drilling, gasprocessing, pipelines)

    Costofcarbonemissiontaxes,orconversely,

    the value o carbon sequestration credits

    Costofcarbondioxidecapturefromanthropogenic sources

    Pilotprojectresults

    Speedoftechnologyadvancementand

    dissemination

    These actors can be hard to predict.Nevertheless, as the regulatory picture begins

    to become clearer, more CO2

    EOR projects arelikely to be implemented.

    There is also an important public relations and regulatory aspect to thespeed with which CO

    2ooding spreads beyond its current boundaries.

    Although the places CO2

    ooding will be applied are by denition placeswhere oil has already been produced and people are amiliar with oil

    production activities, in some o these areas the concept o carbon dioxideinjection is not well understood. It is important that stakeholders (citizens,investors, regulators, landowners, elected representatives) understand the

    science behind CO2

    ooding, so that decisions can be made based on acts.Some potential stakeholder questions are listed below.

    Wont the carbon dioxide be released when the oil is produced?

    No. Any CO2 that is produced along with oil and natural gas is captured andre-injected. The company operating the EOR project bought the CO

    2and

    expects to re-inject it i any is produced, to maximize its value. It only hasvalue when it is used to remove oil rom the rock ormation underground,

    so there is a strong economic motivation to collect it or re-injection, eitherin the current project or another. When a CO

    2EOR ood is nished, the CO

    2

    that remains underground, stays there. Monitoring eorts can be put into

    place to make sure that is true.

    Insulated CO2

    source

    wellhead

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    Carbon Dioxide Enhanced Oil Recovery

    Wont the carbon dioxide leak rom underground and causeproblems?

    No, this is very unlikely. For well-selected, designed and managed geologicalstorage sites, experts calculate that the rock ormations are likely to retainover 99 percent o the injected CO

    2

    or over 1000 years. At the Weyburn

    Project in Weyburn, Saskatchewan, Canada has determined that thelikelihood o any CO

    2release is less than one percent in 5,000 years. There is a

    strong economic motivation or the operating company to ully understandthe geology o the subsurace reservoir beore it makes a multi-million

    dollar investment in inrastructure and pumps millions o dollars o CO2

    underground. The investors want to know where it is going more thananyone does.

    How about the pipelines on the surace, cant they leak?

    Yes, any pipeline can leak. But just as with natural gas pipelines (whichcriss-cross the nation and are commonplace in practically every residential

    neighborhood), there is a strong economic (and regulatory) motivation oroperators to keep them rom leaking.

    How about the old wells in an old oileld, cant they leak?

    Yes, but again there is a strong economic (and regulatory) motivationto make sure that the casing in these wells is still strong, that it is wellcemented in place, and that there is no opportunity or communication

    between the deep ormation being ooded and any shallower ormationsat lower pressure. The loss o CO

    2

    to unintended places costs money andreduces the efciency o the process. Every year, natural gas is reinjectedat high pressure into gas storage elds around the country, particularly in

    northeastern states. These elds, many o which are located in populatedareas, are developed in the same way that CO

    2projects are developed,

    by careully checking old wells to prevent leakage, monitoring them aterinjection has begun, and repairing or replacing them i necessary.

    But isnt the carbon dioxide that is being injectedsupercritical? That sounds dangerous.

    Supercritical is a term physicists use to dene the physical state o a substance;

    it has no negative connotation. Carbon dioxide can exist as a gas (what youexhale with each breath), as a liquid (similar to the liquid nitrogen that youremember rom science class experiments), and as a solid (the dry ice thatyou sometimes nd keeping ice cream cold), depending on its temperature

    and pressure. At high pressure and low temperatureas a supercriticaluidCO

    2has properties midway between a gas and a liquid. I the conditions

    changed to room temperature and pressure, the supercritical CO2

    uid would

    shit to the gas phase and dissipate, just as dry ice does.

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    Carbon Dioxide Enhanced Oil Recovery

    Cant injecting carbon dioxide into the old oil elds causeearthquakes?

    No. Oil companies have been injecting CO2

    in West Texas or decades andhave not caused any earthquakes. Large volumes o water have beenre-injected into oil ields all over the country without any evidence o

    the injection having caused earthquakes.

    There are a number o places online where additional inormation can beobtained about CO

    2EOR and CO

    2sequestration.

    Some useful links:National Energy Technology Laboratory (http://www.netl.doe.gov/index.html)

    Natural Resources Deense Council (http://www.nrdc.org/energy/eor.pd)

    Kinder Morgan (http://www.kne.com/business/co2/)

    Oxy (http://www.oxy.com/Pages/deault.aspx)

    Denbury Resources (http://www.denbury.com/)

    Enhanced Oil Recovery Institute (http://eori.gg.uwyo.edu/)

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    Carbon Dioxide Enhanced Oil Recovery

    Glossary

    API gravity Crude oil is commonly reerred to in terms o its API

    gravity, a reerence established by the American Petroleum Institute

    that relates the density o a crude to the density o water at standardconditions. The API scale inverts and increases the numerical value ospecic gravity (e.g., oil with a specic gravity o 0.93 relative to water

    has an API gravity o 20, while an oil with a specic gravity o 0.83 hasan API gravity o 40). A light, less dense crude with lighter weighthydrocarbons has a higher API number than a heavy crude oil. I acrudes API gravity is less than 10, it is heavier than water and will not

    loat. Mathematically API gravity has no units, but is reerred to asdegrees API.

    areal sweep Percentage o the total oil reservoir geographical area

    which is within the area being swept o oil by a displacing uid, as inthe case o a water ood or carbon dioxide ood. Combined with the

    verticalsweep, it provides a measure o the total volumetricsweep othe reservoir.

    carbonate rock Sedimentary rock ormed primarily rom calciumcarbonate (CaCO

    3) deposited in a marine environment; most

    commonly limestone. Many o the carbon dioxide oods ound in

    the Permian Basin o West Texas are in oil reservoirs in carbonateormations deposited during the Permian Period.

    casing The tubular steel pipe that is used to line the wellbore as a wellis drilled. Casing is cemented in place by pumping cement down theinside o the casing and up the annulus between the outside o the

    casing and the wall o the hole. It comes in a variety o diameters andas a well is drilled, smaller and smaller diameter strings o casing areplaced concentrically into the well and cemented in place, orming aprotective barrier between deep and shallow rock ormations.

    density A measure o how much mass is contained in a unit volume o

    a substance. It can be expressed in kilograms per cubic meter, grams

    per cubic centimeter, pounds per gallon, or other units. Oil densityexpressed relative to that o water, and natural gas density expressedrelative to that o air, at standard pressure and temperature conditions,

    is termed oil specic gravity and gas specic gravity.

    API gravity = 141.5 131.5SG

    where SG = specic gravity at 60 F

    SGoil

    =density o oil

    density o water

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    heterogeneous Consisting o dissimilar elements or parts; nothomogeneous. Heterogeneous rock ormations are not uniorm interms o their properties but instead vary widely both vertically andlaterally. This variation can result in poor sweep efciency as reservoirs

    are looded with water or carbon dioxide, and less than optimal

    recovery o remaining oil.

    high water cut When an increasingly high percentage o the totalluid produced rom a well is water rather than oil (perhaps as highas 99 percent or greater). This tends to be the case as water loods

    reach the end o their economic lie.

    hydrocarbon pore volume The pore volume o a porous, sedimentaryrock is that portion o a unit volume o the rock that is pore spacerather than solid mineral constitutents (oten in the range o 10, 20 or

    30 percent). The pore volume is naturally lled with uids: water, oiland gas. The hydrocarbon pore volume is that portion that is lled withhydrocarbons, rather than water.

    interacial tension A phenomenon at the surace separating twoimmiscible liquids caused by intermolecular orces. The tendency oan interace to contract in order to minimize the interacial area leads

    to a state o tension. Reducing interacial tension allows uids to mixmore intimately and can allow a displacing uid to more eectivelymove a displaced uid.

    light hydrocarbons Lower molecular weight hydrocarbons (ewercarbons). Methane (CH

    4) is the lightest hydrocarbon. Other parafnic

    series hydrocarbons (ethane, butane, propane, etc.) each successivelyhave one additional carbon atom. High density (low gravity) crude oilstypically contain molecules with many carbon atoms.

    maniold A system o pipes and valves that allow or the comingling and/or redirection o owing uids rom many individual wells at a central

    production processing acility.

    metric ton Also reerred to as a tonne, is a measurement o mass equalto 1,000 kg or 2204.6 pounds, or approximately the mass o onecubic meter o water. A U.S. ton is a measurement o mass equal to2000 pounds. Carbon dioxide is oten measured in metric tons. One

    metric ton o carbon dioxide is equal to a volume o 556.2 cubic meterso the gas at standard conditions o temperature and pressure.

    Carbon Dioxide Enhanced Oil Recovery

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    Untapped Domestic Energy Supply and Long Term Carbon Storage Solution

    minimum miscibility pressure The minimum pressure at which a crudeoil will be miscible with carbon dioxide at reservoir temperature.

    miscibility The condition where two luids can be mixed in all

    proportions; where there is no interace between them.

    original oil in place The volume o oil originally in place in a reservoirbeore production commences, expressed as a total volume at suraceconditions o temperature and pressure (typically in stock tank barrels

    in the U.S.). Oil in place must not be conused with oil reserves, whichare the technically and economically recoverable portion o the oilvolume in the reservoir. Recovery actors or oil elds around the world

    typically range between 10 and 60 percent o the original oil in place.

    permeability The ability o a rock to allow uids (oil, water, and gas) to

    ow through it by virtue o the interconnectivity o its internal porosity.Fluids move through reservoir rock and into a well due to a pressuregradient (higher pressure out in the reservoir compared to the pressureat the bottom o the well). Higher permeability rock will allow a higher

    ow rate, all other things being equal. Permeability is a constant in theow equation or uid ow through porous media, with units known asDarcies.

    primary production Oil production that is driven by the natural pressureo the reservoir, beore any energy is added through water injection

    (secondary production or secondary recovery) or post-wateroodenhanced oil recovery processes like carbon dioxide injection (tertiaryrecovery).

    reservoir The rock ormation and its uid contents o water, oil, and gasthat make up a hydrocarbon accumulation in the subsurace. An oil

    reservoir generally is bounded by seals, either structural barriers likeaults or lithological barriers like low permeability rocks, that act to trapthe hydrocarbons and prevent their migration over geologic time.

    residual oil The oil that remains in a reservoir ater primary, secondary or

    tertiary production (or all three) has taken place. Typically expressed asa percentage o the pore volume.

    reworking wells The act o re-entering a well bore ater the well has

    been producing or some time, generally using a drilling or workoverrig, to eect repairs or otherwise enhance the ability o the well toproduce at commercial rates.

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    sandstone A sedimentary rock composed mainly o sand-size mineralor rock grains. Sandstones can result rom a variety o depositionalenvironments and can exhibit a range o values or permeabilityand porosity. Most sandstone is composed o quartz and/or eldspar

    because these are the most common minerals in the Earths crust.

    secondary recovery Oil production that is driven by water injectionin a waterood.

    supercritical conditions Combined conditions o temperature andpressure that place a substance at a point above its critical point.When in a supercritical state, a substance can exhibit properties o

    both a liquid and a gas (e.g., it may diuse through solids like a gas,and dissolve materials like a liquid).

    tertiary recovery Oil production that is post-waterood and driven byenhanced oil recovery (EOR) processes like carbon dioxide injection(other processes include chemical and thermal).

    viscosity Measure o the internal resistance o a uid to being deormedby either shear stress or extensional stress. With common uids and

    terminology, viscosity is though o as thickness (e.g., water is thin,having a lower viscosity, while honey or molasses is considered asthick, having a higher viscosity. Viscosity describes a uids internalresistance to ow and may be thought o as a measure o uid riction.

    In general, heavier crudes are highly viscous and thus more difcult todisplace using a lower viscosity uid (like water, or carbon dioxide).

    waterooding The practice o pumping (injecting) water into selectedwells in an oil ield, in order to sweep remaining oil rom the rockormation and push it towards producing wells were it can be pumped

    to the surace. Waterlooding is typically (but not always) initiatedsome time ater a ield has been signiicantly depleted under theprimary production phase.

    well pattern The pattern o wells in a eld; their location relative to each

    other and the spacing (drainage area per well) that pattern implies.In a waterood or carbon dioxide ood, the pattern can also indicatethe ratio o injectors to producers and their relative position to oneanother.

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    Contacts

    Strategic Center for Natural Gas and Oil (SCNGO), NETL

    Director, SCNGO

    John R. [email protected]

    Exploration & Production Technology Manager

    Albert B. Yost II304-285-4479

    [email protected]

    Ultradeepwater and Unconventional ResourcesTechnology Manager

    Roy [email protected]

    Department of Energy Headquaters

    Of ce o Oil and Gas Resource ConservationGuido Dehoratiis Jr.202-586-7296

    [email protected]

    Of ce o Future Oil and Gas Resources

    Olayinka (Yinka) Ogunsola

    [email protected]

    Carbon Dioxide Enhanced Oil Recovery

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    Photo credits

    Cover: wellhead (Denbury Resources), pump jack(NewsOK)

    Page 6: pipeline (Kinder Morgan), wellhead (Kinder Morgan)

    Page 7: plant (Hess Corp.), maniold (Denbury Resources), separator (Whiting Petroleum Corp.),

    compressor (Steve Melzer)

    Page 23: wellhead (Kinder Morgan)

    Page 24: pipeline construction (Denbury Resources), wellhead (Denbury Resources),

    maniold (Denbury Resources), dry ice (www.EduPic.net)

    Page 25: plant (Denbury Resources)

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    1450 Queen Avenue SWAlbany, OR 97321-2198

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    3610 Collins Ferry RoadP.O. Box 880

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