CO2 and Its Impact on Oil Production
Arkadiusz Galat, Oil & Gas Analyst
Technical Insights
August 27, 2008
2
Focus Points
• Enhanced Oil Recovery operations – Why do we need it?
• Snapshot of different EOR methods
• CO2 flooding in EOR operations; advantages and restraints
• Drivers and challenges for CO2 application in EOR operations
• Capture and Storage of CO2
• Future technical improvements expected
3
Enhanced Oil Recovery Importance in Oil Production
• What is recovery ?
• What is the enhanced oil recovery process?
• What are some of the main challenges for oil production?
4
Snapshot of Different EOR Methods
3 groups of the EOR methods:
• Gas injection methods
• Nitrogen injection
• Hydrocarbon injection
• CO2 injection
• Water injection methods
• Micellar/polymer plus alkaline/surfactant/polymer
• Polymer flooding
• Thermal/mechanical methods
• Combustion
• Steam
• Surface mining
• Selecting EOR method
• Technical screening guide
EOR production by EOR method
5
• Mechanism description
• Advantages of CO2 flooding
• Restraints for CO2 application
CO2 Flooding in EOR Operations
6
Main factors for Successful CO2 Flooding
• Minimum miscibility pressure MMP
• Oil gravity
• Reservoir properties
• Integrated reservoir management
CO2 Sources and Transportation Networks
7
Drivers for CO2 Application in EOR Operations
• Large importance of the fossil fuels in
energy consumption
• Higher consumption laverage higher
CO2 emmisions
• Price importance
• Cheap supply of CO2
Natural sources of CO2• Geological sources
• Deep basin sources
• Coalbed origin
No signs of reduction in energy consumption
8
CO2-EOR – Profits from CO2 Injection
• Income from extra oil production to pay for CO2 infrastructure
• Free up natural gas resources by using CO2 as injection gas
• Climate change is happening – CCS an important solution coexistence with storage necessary
• Additional oil reserves
Commercial oil reserves January 2007
Economic price US$Billion barrels of O
il
Commercial oil reserves January 2007
Economic price US$Billion barrels of O
il
9
Current Status of CO2 EOR Projects
• Great importance in oil production in the U.S.
• Permian Basin the best place for CO2 EOR
• Joint operation of CO2 EOR and CO2 sequestration
• However, more incentives needed Weyburn oil field CO2 EOR
US CO2 EOR production outlook
Production 1,000 bls/d
US CO2 EOR production outlook
Production 1,000 bls/d
10
Capture and Storage of CO2
• Capture and Store CO2 seen as a
solution to decrease its impact on the greenhouse gas emissions
• Techniques for CO2 capture
• Post-Combustion
Scrabbing/Capture
• Pre–Combustion Decarbonisation (Hydrogen)
• Oxyfuel or Oxygen-Fired Combustion
• CO2 Removal from Natural Gas
• Potential of the CCS
• Potential impact of CCS on reduction of CO2 emmisions
• Restrictions
11
Future technical improvements expected
• Direct CO2 viscosifiers
• Electromagnetic surveys
• Cross – well surveys
• Behind – casing logging
12
Major Industry Participants
• Kinder Morgan, TX, USA
• EnCana, Calgary, Can
• Schlumberger, Pittsburgh,
• ElectroMagnetic Instruments Inc., USA
• Advanced Resources Inc., USA
• Fugro Co., TX, USA
• Occidental Petroleum Corporation, TX, USA
• Italian National Agency for New Technologies, ENEA, Italy
13
Conclusion
• Pipeline infrastructure will have a major influence on project
economics.
• It is anticipated the initial geographical focus will be primarily
restricted to the Permian Basin since the pipeline infrastructure is
already in place.
• Approach a producer/operator to determine whether it is
interested in exploring the feasibility of an EOR project.
• CO2 is a valuable commodity for enhancing the recovery of oil
and natural gas and some (but maybe not all) infrastructure costs
can be carried by successful projects.
• Importance of cheap CO2 supply.
14
Your Feedback is Important to Us
Growth Forecasts?
Competitive Structure?
Emerging Trends?
Strategic Recommendations?
Other?
Please inform us by taking our survey.
What would you like to see from Frost & Sullivan?
15
For Additional Information
• To leave a comment, ask the analyst a question, or receive the
free audio segment that accompanies this presentation, please contact Stephanie Ochoa, Analyst Briefing Coordinator, at (210)
247-2421 or via email, [email protected].
Top Related