SPE 113975

The Potential For Additional Carbon Dioxide Flooding Projects in the United States

SPE 113975

April 23, 2008

Hitesh Mohan – INTEK, Inc.Marshall Carolus – INTEK, Inc.

Khosrow Biglarbigi – INTEK, Inc.

INTEK

Presented at the 2008 SPE/DOE Symposium on Improved Oil Recovery

2SPE 113975

CO2 EOR: A Proven and Established Technology

• Technology applied for nearly 30 years

• In 2006, 80 projects in the United States

• Daily production reached 234 MBbl/Day

0

20

40

60

80

100

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

Year

No

. of

Pro

ject

s

Active CO2 EOR Projects

0

50

100

150

200

250

1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

Year

Pro

du

cti

on

(M

Bb

l/D

ay

)

Daily CO2 EOR Production

3SPE 113975

How Can It Become More Widespread?

Two Constraints

CO2 Sources&

Candidate Fields

4SPE 113975

Existing CO2 Sources

Annual CO2 Produced:

1094 Bcf/yr (60.81 MMtn/yr)

Or ~ 3 BCF/Day

Daily Rate

MMCF/D

Wyoming

Colorado

Jackson Dome Denbury-Jackson Mississippi 220

Cortez Texas 1,300

McElmo Creek Utah 60

Sheep Mountain

DomeSheep Mountain Texas 480

Bravo Dome Bravo Texas 482

Val Verde Gas Plants Val Verde Texas 70

Oklahoma

Fertilizer Plant

Total Daily Rate 2,997

LaBarge LaBarge 350

Source Pipeline States Supplied

35

McElmo Dome

Local Pipeline Oklahoma

Oil and Gas Journal

5SPE 113975

Delivered CO2 Costs

• Cost is dependant upon oil price

• Capture costs are minimal

• Mostly transportation

• Regional prices range from $1.41 to $2.82

6SPE 113975

Potential CO2 Sources: Industrial

60

70

80

90

100

110

1990 1993 1996 1999 2002 2005

Year

Tril

lion

Cub

ic F

eet

CO

2

Source: EIA Historical Data

• Industrial CO2 emissions have grown more than 20% since 1990

• In 2006, the U.S. industrial CO2 emissions were more than 100 Tcf

• Significant volumes can be captured and used for EOR

Industrial CO2 Emissions

20% Increase

7SPE 113975

Industrial Sources of CO2

RefineriesAmmonia PlantsCement PlantsHydrogen Plants

Ethanol Plants > 50 Bcf/YrEthanol Plants > 1 Bcf/Yr

Fossil Fuel Power PlantsOther Industrial Sources

RefineriesAmmonia PlantsCement PlantsHydrogen Plants

Ethanol Plants > 50 Bcf/YrEthanol Plants > 1 Bcf/Yr

Fossil Fuel Power PlantsOther Industrial Sources Source:

Natcarb, RFA, INTEK

8SPE 113975

Not Every Source Can Be Used for EOR

• Sources need to be screened according to– Concentration

– Emission Volume

– Proximity to candidate fields

• A database of screened sources was developed

• Approximately 25 Tcf could be captured and transported annually -

Can we meet the CHALLENGE ?

9SPE 113975

Screened Industrial Sources

RefineriesAmmonia PlantsCement PlantsHydrogen Plants

Ethanol Plants > 50 Bcf/YrEthanol Plants > 1 Bcf/Yr

Fossil Fuel Power Plants

RefineriesAmmonia PlantsCement PlantsHydrogen Plants

Ethanol Plants > 50 Bcf/YrEthanol Plants > 1 Bcf/Yr

Fossil Fuel Power Plants

10SPE 113975

How Much Will Industrial CO2 Cost?

CO2 Price = Cost of Capture + Pipeline Tariff

• Capture cost is dependent upon technology

• Pipeline Tariff depends upon distance of candidate fields to source

11SPE 113975

Cost of Capturing Industrial CO2

Capture technology are source specific

low high low high average

Fossil Fuel Power Plants 38 63 2.11 3.50 2.81

Refineries 35 55 1.95 3.06 2.50

Cement Plant 35 55 1.95 3.06 2.50

Hydrogen Plants 6 12 0.33 0.67 0.50

Ammonia Plants 6 12 0.33 0.67 0.50

Ethanol Plants 6 12 0.33 0.67 0.50

New IGCC Plants 25 40 1.39 2.22 1.81

Technology$/Ton CO2 $/mcf CO2

Capture Cost Sources: Global Energy Technology Strategy Program, NETL, and others

12SPE 113975

Where are the CO2 EOR Candidate Fields?

1,673 Candidate Reservoirs

Technical Recovery18.6 Billion Barrels over 40 Years

1,673 Candidate Reservoirs

Technical Recovery18.6 Billion Barrels over 40 Years

13SPE 113975

How Close are the Sources to the Fields?

RefineriesAmmonia PlantsCement PlantsHydrogen Plants

Ethanol Plants > 50 Bcf/YrEthanol Plants > 1 Bcf/Yr

Fossil Fuel Power Plants

Candidate CO2 EOR Fields

RefineriesAmmonia PlantsCement PlantsHydrogen Plants

Ethanol Plants > 50 Bcf/YrEthanol Plants > 1 Bcf/Yr

Fossil Fuel Power Plants

Candidate CO2 EOR Fields

14SPE 113975

Identifying source to sink distances

• GIS was developed to locate source to sink

• Average distances for various source to a group of sinks were calculated

• Pipeline tariffs were estimated based on:

– Distance

– Volume of CO2

– Compression

130

Average Pipeline Length = 158 mi

130130

Average Pipeline Length = 158 mi

15SPE 113975

Industrial CO2 Could Cost…

CO2 Price = Cost of Capture + Pipeline Tariff

• Capture cost is dependent upon Source– $0.50 to $2.81 per Mcf

• Pipeline Tariff depends upon distance of candidate fields to source – $0.39 to $0.51 per Mcf

16SPE 113975

Total Wellhead CO2 Prices & Volumes

3,082 Bcf/Yr

($3.2 - $3.2 Mcf)961 Bcf/Yr

($0.9 - $3.2 Mcf)

1,178 Bcf/Yr

($1.0 - $3.2 Mcf)

13,739 Bcf/Yr

($0.9 - $3.2 Mcf)

5,557 Bcf/Yr

($0.9 - $3.2 Mcf)

223 Bcf/Yr

($1.0 - $3.2 Mcf)

1,034 Bcf/Yr

($1.0 - $1.0 Mcf)

Total Volume of CO2 Available

Wellhead Prices (Capture + Transportation)

Industrial CO2: 25 Tcf/Yr

Natural CO2: 1 Tcf/Yr

3,082 Bcf/Yr

($2.8 - $3.2 Mcf)961 Bcf/Yr

($0.9 - $3.2 Mcf)

1,178 Bcf/Yr

($1.0 - $3.2 Mcf)

13,739 Bcf/Yr

($0.9 - $3.2 Mcf)

5,557 Bcf/Yr

($0.9 - $3.2 Mcf)

223 Bcf/Yr

($1.0 - $3.2 Mcf)

1,034 Bcf/Yr

($1.0 -$1.50 Mcf)

Total Volume of CO2 Available

Wellhead Prices (Capture + Transportation)

Industrial CO2: 25 Tcf/Yr

Natural CO2: 1 Tcf/Yr

17SPE 113975

When Will the CO2 Be Available?

• Availability and ultimate market penetration depends on :– Source

– Technology

– Location

0

30

60

90

120

150

180

2008 2012 2016 2020 2024 2028

An

nu

al C

O2

Av

aila

ble

(B

CF

)

R&D Phase3 Years

Infrastructure Development

4 Years

MarketAcceptance7 Years

Maximum CO2

Available

0

30

60

90

120

150

180

2008 2012 2016 2020 2024 2028

An

nu

al C

O2

Av

aila

ble

(B

CF

)

R&D Phase3 Years

Infrastructure Development

4 Years

MarketAcceptance7 Years

Maximum CO2

Available

Sample Market Development Curve

18SPE 113975

Incremental Production

0

200

400

600

800

1,000

2008 2012 2016 2020 2024 2028

Year

Da

ily

Oil

Pro

du

cti

on

(M

Bb

l)

25 Year Cumulative Production: 4.7 Billion Bbl

Daily Oil Production from Additional CO2 EOR

19SPE 113975

Impact of Injection Volume on Production

0

200

400

600

800

1,000

1,200

1,400

2008 2012 2016 2020 2024 2028

Year

Da

ily

Oil

Pro

du

cti

on

(M

Bb

l)

0.4 HCPV

1.0 HCPV

0.4 HCPV 4.7 Billion Barrels1.0 HCVP 5.6 Billion Barrels

25 Year Cumulative Production

Daily Oil Production from Additional CO2 EOR

20SPE 113975

Additional benefit: CO2 Storage

0

1,000

2,000

3,000

4,000

5,000

6,000

2008 2013 2018 2023 2028

Year

CO

2 S

tore

d (

MM

cf/

Da

y)

Daily CO2 Stored in Projects

0.4 HCPV

1.0 HCPV0.4 HCPV 24 Tcf CO2

1.0 HCVP 30 Tcf CO2

25 Year Cumulative Storage

21SPE 113975

Summary

• CO2 EOR is a mature technology

• Widespread application is constrained by availability of CO2 and candidate fields

• Nearly 25 Tcf of Industrial CO2 can be captured and transported to nearby fields

• There are 1,673 candidate fields in Onshore Lower 48

• Prices at the wellhead could range between $1 and $3 per Mcf

• Up to 1.2 MMBbl/Day of incremental production could be realized in all regions of the U.S.

• Up to 5.5 Bcf/Day of CO2 could be stored at the same time