INTEGRATION OF CO2 SEQUESTRATION AND CO2EOR:

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INTEGRATION OF CO2 SEQUESTRATION AND CO2-EOR
Experience from Canada and the U.S.
Prepared for Energy Foresight Symposium EFS
2007 Presented by Vello A. Kuuskraa,
President Advanced Resources International vkuuskr
aa_at_adv-res.com Bergen, Norway March 22-23, 2007

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Outline

• Background and Outlook for CO2-EOR
• Todays Best Practices
• Game Changer Technology
• Integrating CO2 Sequestration and CO2-EOR
• Making CO2 Capture Affordable
• The Weyburn Project
• Expanding Storage Capacity
• Summary

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Background
The U.S. has a rich history of productively using
CO2 for increasing oil recovery. Large-scale CO2
floods were started in the 1970s and 1980s,
including at famous oil fields such as SACROC,
Seminole and Wasson, in the Permian Basin of West
Texas. The first of these large-scale CO2-EOR
projects, at SACROC, transported and used
industrial CO2 captured from a series of natural
gas separation plants. Today, over 40 million
metric tons of CO2 is purchased and injected for
oil recovery in the U.S., with about 10 million
of these tons from industrial sources. Importantly
, because of recycling, essentially all of the
CO2 injected to date still remains in the oil
reservoir.
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U.S. CO2-EOR Activity
82
Number of CO2-EOR Projects Natural CO2
Source Industrial CO2 Source CO2
Pipeline Proposed CO2 Pipeline Commercial CO2-EOR
Fields
Dakota Coal Gasification Plant
Antrim Gas Plant
LaBarge Gas Plant
9
3

• Currently, 82 CO2-EOR projects provide 237,000
  B/D of production
• Affordable natural CO2 launched CO2-EOR activity
  in the 1980s
• Federal tax credits (Sec.43) and state severance
  tax relief still encourage CO2-EOR

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1
Enid Fertilizer Plant
1
McElmo Dome Sheep Mountain Bravo Dome
6
Jackson Dome
57
Val Verde Gas Plants
6
5
Growth of CO2-EOR Production In The U.S.
JAF2006016.XLS
250,000
Gulf Coast/Other
Mid-Continent
200,000
Rocky Mountains
Permian Basin
150,000
Enhanced Oil Recovery (barrels/day)
100,000
50,000
0
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
Source Oil and Gas Journal, 2002.
Year
6
Volumes Of CO2 Injected For EOR
Source Advanced Resources International, 2006
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Outlook for CO2-EOR

• Recently completed basin studies of applying
  state-of-the-art CO2-EOR in the U.S. indicate

• Nearly 89 billion barrels of technically
  recoverable resource,
• Up to 47 billion barrels of economically
  recoverable resource.

Results are based on applying streamline
reservoir simulation to 1,581 large oil
reservoirs (two thirds of U.S. oil production).
Available on the U.S. DOE web site.
http//www.fe.doe.gov/programs/oilgas/eor/Ten_Basi
n-Oriented_CO2-EOR_Assessments.html
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Large Volumes Of Domestic Oil Remain Stranded
After Primary/Secondary Oil Recovery
Original Oil In-Place 582 B BarrelsStranded
Oil In-Place 390 B Barrels
Future Challenge 390 Billion Barrels
Cumulative Production172 Billion Barrels
Proved Reserves20 Billion Barrels
All domestic basins except the Appalachian
Basin. Source Advanced Resources Intl. (2005)
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A Large Market For CO2 Is Offered By Enhanced
Oil Recovery
Traditional CO2-EOR Technology
State of the Art CO2-EOR Technology
50
46.8
40
30
Billion Barrels of Additional, Economically
Recoverable Oil
24.1
20
10
3.8
0
Oil Price 30/B CO2 Cost 1.35/Mcf
(25/mt) High Risk
Oil Price 30/B CO2 Cost 1.35/Mcf
(25/mt) Low Risk
Oil Price 40/B CO2 Cost 0.80/Mcf
(15/mt) Low Risk
Source Advanced Resources International (2006)
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Market For Purchased CO2 (TEN BASINS/AREAS)
Source Advanced Resources Intl, 2006.
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Game Changer CO2-EOR Technology
The DOE report, Evaluating the Potential for
Game Changer Improvements in Oil Recovery
Efficiency from CO2-Enhanced Oil Recovery

• Reviews performance of past CO2-EOR floods.
• Sets forth theoretically and scientifically
  possible advances in technology for CO2-EOR.
• Examines how much game changer CO2-EOR
  technology would increase oil recovery and CO2
  storage capacity.

Available on the U.S. DOE web site.
http//www.fe.doe.gov/programs/oilgas/publications
/eor_co2/Game_Changer_Document.pdf
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Game Changer CO2-EOR Technology (Contd)

• Innovative Flood Design and Well Placement
• Viscosity and Miscibility Enhancement
• Increased Volume of CO2 Injection
• Flood Performance Diagnostics and Control
• Inter-disciplinary technical teams
• 4-D seismic
• Instrumented observation wells
• Zone-by-zone performance information

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Are Higher Oil Recovery Efficiencies Achievable?

• Example Carbonate Field Oil Recovery Efficiencies

80
Jay
Salt Creek
Means
Recovery Factor
2003 Recovery
Time
Source Three ExxonMobil Oil Fields, SPE 88770
(2004)
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Question
How Much Might Integration of CCS with CO2EOR
Reduce Costs and Facilitate Early Action?

• Productive Use of CO2 is Already Underway.
  CO2-EOR already uses 40 million metric tons of
  CO2 per year, with 10 million metric tons of this
  from industrial sources.
• The U.S. has Numerous Mature Domestic Fields
  Holding 400 Billion Barrels of Stranded Oil
  In-Place. CO2-EOR could economically recover up
  to 47 billion barrels, depending on oil prices
  and availability of CO2.1 Next Generation
  CO2-EOR technology would significantly increase
  these oil volumes.2
• Sufficient CO2 Supply is a Major Constraint.
  CO2-EOR could readily use 8 to 12 billion metric
  tons of affordable, EOR-Ready CO2.

Source 1 Advanced Resources International, Ten
Basin-Oriented CO2-EOR Assessments Examine
Strategies for Increasing Domestic Oil
Production, Alaska, California, Onshore Gulf
Coast, Mid-Continent, Illinois and Michigan,
Permian Basin, Rocky Mountains, East and Central
Texas, Offshore Louisiana, and Williston Basin,
February 2006, U.S. Department of Energy, Office
of Fossil Energy. http//www.fe.doe.gov/programs/o
ilgas/eor/Ten_Basin-Oriented_CO2-EOR_Assessments.h
tml 2 Advanced Resources International,
Evaluating the Potential for Game Changer
Improvements in Oil Recovery Efficiency from CO2
Enhanced Oil Recovery, U.S. Department of Energy,
Office of Oil and Natural Gas, Office of Fossil
Energy, August 2005. http//www.fe.doe.gov/program
s/oilgas/eor/Game_Changer_Oil_Recovery_Efficiency.
html
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Combining the Benefits A Win-Win Solution for
Affordable CCS
Coal-Fired Power Sector (2020-2050)
U.S. Petroleum Sector (2020-2050)

• Develop Lower Cost, Publicly Accepted CCS
  Technology
• 30 Commercial-Size Demos of CO2 Capture Plus
  RDD Investment
• Numerous Large-Scale Demos of CO2 Storage Options
  
• Sell Captured CO2 for Oil Recovery
• 8 to 12 Gt of CO2 for CO2-EOR
• Avoid Cost of Storage (10/mt CO2)
• Gain Additional Revenues (0 to 25/mt of CO2 0
  to 300 billion)

• Purchase CO2 for CO2-EOR
• Purchase 8 to 12 Gt of CO2 (_at_ price of 0
  to 25/mt)
• Produce an Extra 40 Billion Barrels of Domestic
  Oil
• Provide up to 300 Billion for Captured CO2
  Emissions

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Learning By Doing and CO2-EOR Can Make CCS
Affordable IGCC Example
Benefits of Commercial-Scale Plants Plus RDD
Benefits of Integrating CCS with CO2-EOR
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(13/mt)
10
Sale of CO2 for EOR
0
Storage (10)
Storage (10)
Storage (10)
Costs/Revenues of CCS (2005/mt CO2 Avoided)
Capture (12)
-10
(12/mt)
Capture (12)
-20
Capture (23)
(22/mt)
Capture (25)
-30
Next 60 to 100 CCS Systems (Sale of CO2 _at_ 0 to
25/mt)
(33/mt)
(35/mt)
-40
Next 28 CCS Systems (Learning)
First 4 CCS Systems (Reliable Costs)
Based on U.S. Department of Energy, Energy
Information Administration, Assumptions to the
Annual Energy Outlook 2006 Report
DOE/EIA-0445(2006), March 2006
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Weyburn Enhanced Oil Recovery Project

• Largest CO2 EOR project in Canada
• OOIP 1.4 Bbbls
• 155 Mbbls incremental
• Outstanding EOR response
• Worlds largest geological sequestration project
• 2.4 MMt/year (current)
• 23 MMt with EOR
• 55 MMt with EOR/sequestration

Regina
Weyburn
Saskatchewan
Manitoba
Canada
USA
North Dakota
Montana
Beulah
CO
2
Source EnCana
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Weyburn Unit Oil Production Forecast
Bbls/Day (gross)
50,000
45,000
Cumulative Production 389 MMbbl Current RF 28
40,000
35,000
30,000
Latest forecast
25,000
Vertical Infills
20,000
CO2
Inj
15,000
Waterflood
Hz Infills
10,000
MB97-03
5,000
Forecast
0
Jan-55
Jan-58
Jan-61
Jan-64
Jan-67
Jan-70
Jan-73
Jan-76
Jan-79
Jan-82
Jan-85
Jan-88
Jan-91
Jan-94
Jan-97
Jan-00
Jan-03
Jan-06
Jan-09
Jan-12
Jan-15
Jan-18
Jan-21
Jan-24
Jan-27
Jan-30
Date
Source EnCana
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CO2 Storage Capacity and Mechanisms
CO2-EOR
CO2-EOR/Sequestration
CO2 Inventory (tonne)
30,000,000
70,000,000
Total CO2 Stored 54.85 MT
Total CO2 Stored 23.21 MT
25,000,000
End of CO2 EOR
30.5
20,000,000
35,000,000
15,000,000
59.7
59.7
44.2
44.2
10,000,000
25.9
25.9
5,000,000
25.3
25.3
14.4
14.4
0
1/1/00
1/1/02
1/1/04
1/1/06
1/1/08
1/1/10
1/1/12
1/1/14
1/1/16
1/1/18
1/1/20
1/1/22
1/1/24
1/1/26
1/1/28
1/1/30
1/1/32
1/1/34
1/1/00
1/1/05
1/1/10
1/1/15
1/1/20
1/1/25
1/1/30
1/1/35
1/1/40
1/1/45
1/1/50
1/1/55
Time (Date)
Time (Date)
Solubility Trappingin Water, 28.0
Ionic Trapping in Water 0.3
Mineral Trapping27.5
Dissolution in Oil44.2
Source EnCana
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Helping overcoming hurdles to using carbon
capture and storage as a climate change strategy
Weyburn Worlds Largest CO2 Geological
Sequestration Project
Affordable and Competitive Costs
Phase 1
Sufficient Capacity
Safe and Reliable Storage
Regulatory Framework
F I N I S H
Reliable and Safe Geologic Storage of CO2
Public Perception
Final
Phase

• Developing protocols for other CO2
  geo-sequestration projects

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Increasing or Reducing Global CO2 Emissions?

• Would wide-scale use of integrated CO2-EOR and
  CO2 sequestration further contribute to or help
  solve global CO2 emissions problems?
• Since additional liquid fuel consumption (and
  thus production), will be needed to support the
  economy, the real question is - - What will be
  the CO2 emissions footprint of alternative
  sources?

• Some alternatives such as coal-to-liquids, oil
  shale and oil sands, will likely have a much
  larger CO2 emissions footprint than CO2-EOR.
• Other alternatives, such as corn-based ethanol or
  hydrogen, involve major energy inefficiencies and
  have less visible but still substantial CO2
  emissions.

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Integrating CO2-EOR and CO2 Storage

• Expanding CO2 Storage Capacity A Case Study.
  Large Gulf Coast oil reservoir with 340 million
  barrels (OOIP) in the main pay zone.
• Another 100 million barrels (OIP) in the
  underlying 130 feet of residual oil zone and an
  underlying saline reservoir 195 feet thick.

• Main Pay Zone
• Depth - - 14,000 feet
• Oil Gravity - - 33oAPI
• Porosity - - 29
• Primary/Secondary Oil Recovery 153 million
  barrels (45 of OOIP)

• Net Pay - - 325 feet
• Initial Pressure - - 6,620 psi
• Miscibility Pressure - - 3,250 psi

Theoretical CO2 storage capacity 2,710 Bcf (143
million tonnes)
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Integrating CO2-EOR And CO2 Storage (Contd)

• State-of-the-Art. Vertical wells 1 HCPV of CO2
  (purchased and recycled CO2) _at_ 11 WAG.
• Alternative Design.

• Gravity-stable CO2 injection with horizontal
  production wells.
• Targeting main pay zone, plus residual oil zone
  and underlying saline reservoir.
• Injecting continuous CO2 (no water) continuing
  to inject CO2 after completion of oil recovery.
• Instituting rigorous diagnostic and monitoring.

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Integrating CO2-EOR and CO2 Storage (Contd)
CO2 Source
Oil to Market
Production Well
CO2 Injection
CO2 Recycled
Swept Area
Stage 1
Current Water Oil Contact
Oil Bank
Stage 2
Unswept Area
Original Water Oil Contact
Stage 3
TZ/ROZ
Saline Reservoir
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Integrating CO2-EOR and CO2 Storage (Contd)

• With alternative CO2 storage and EOR design, much
  more CO2 can be stored and more oil becomes
  potentially recoverable.
• The additional oil produced is GREEN OIL.

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CO2-EOR as a Bridge to Carbon Management

• In addition to offering markets and secure
  locations for storing CO2, CO2-EOR could serve as
  a most valuable near-term bridge toward
  longer-term CO2 management.

• Help build portions of the essential CO2 storage
  and transportation infrastructure for
  facilitating larger-scale, longer-term storage of
  CO2.
• Help establish protocols, experience and public
  confidence on safely and securely storing CO2 in
  geological formations.

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SUMMARY

• CO2 enhanced oil recovery, while still an
  emerging industry, has the potential to add
  significant volumes of future oil supply, in the
  U.S. and worldwide.
• Thirty years of experience shows that CO2-EOR is
  a technically sophisticated and challenging
  process, but one that can be successful if
  managed and controlled, not just operated.
• Game Changer CO2-EOR technologies,
  incorporating scientifically possible but not yet
  fully developed advances, could significantly
  increase oil recovery efficiency and CO2 storage
  capacity offered by oil fields.

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SUMMARY (Contd)

• Wide-scale application of CO2-EOR is constrained
  by lack of sufficient EOR-Ready CO2 supplies.
  A mutually beneficial link exists between CO2-EOR
  and new industrial sources of CO2.
• Early application of CO2-EOR technology can
  significantly increase the economic value of the
  remaining oil resource.
• Under a carbon constrained world, productively
  using industrial CO2 emissions for CO2-EOR will
  become a winning strategy.

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