Carlos Calad

Schlumberger Public

The Role of Technology in CCS-Schlumberger Carbon ServicesInstitute of the Americas – Buenos Aires Round Table

Carlos Calad S.VP Marketing Oilfield Services Latin America

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Facts

Emissions of greenhouse gasses (GHG) will increase the average global temperature by 1.1 to 6.4 ºC by the end of the 21st century, according to the Intergovernmental Panel on Climate Change (IPCC).

A global warming of more than 2 ºC increase in global average temperature will lead to serious consequences, and IPCC have therefore stated that global GHG emissions should be reduced by 50 to 80 percent by 2050.

CO2 is the most important greenhouse gas, and anthropogenic CO2 emissions are mainly a consequence of fossil fuels being the most important global energy sources.

Enhanced energy efficiency and increased renewable energy production will reduce CO2 emissions, but according to the International Energy Agency (IEA), energy efficiency and renewable energy do not have the potential to reduce global CO2 emissions as much as IPCC’s target, i.e. 50 to 80 percent by 2050.

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Domination of Fosil Fuels

Source: IEA reference scenario

• Demand rises by 13.6 mb/d between 2006 and 2015 compared to 11 mb/d between 2001 and 2010

• Assuming no change in modeled rate, 23.9 mb/d will be lost to decline between 2006 and 2015

• Planned OPEC and non –OPEC additions total 25 mb/d over the same period – 12.5 mb/d need to be found.

• These figures are very sensitive to future declines rates

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Global Oil Resources

Already produced

OPEC ME

Other conventional

oil

EOR

Heavy oil Bitumen

Oil shales

Available oil in billion barrels

01020304050607080

1000 2000 3000 4000 5000 60000

Econ

omic

price

2005

, US$

Deep water

Super deep

Arctic

Source: IEA 2005

Cumulative demand at 2030

Cumulative demand at 2050

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The Challenge

IEA 2003 CO2 emissions from fuel combustion Emissions MTCO2/yr %

Public electricity & heat production 8236 35%Other energy industries 1228 5%Manufacturing & construction 5257 22%Transport 5656 24%Other sectors 3307 14%2003 emissions 23684CO2 emission growth rate = 1.8%/yr2030 emissionsIncreases come fromPower generation 6400 43%Transport 3300 23%Industry 2100 15%

38000 160%

Global CO2 Emissions

Source: IEA

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CO2 Capture and Storage System in a Nutshell

Fuels

Processes

Storage options

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Geological Storage Applications

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Global Storage Capacity Estimates

• Plants = 600 GTCO2 ; Soil = 1,600 GTCO2• Underground Storage Capacity approximately 11,000GTCO2

• USA=3900GT• Russia=2100GT • Canada=1300GT• Australia=700GT• Middle East=460GT• Africa=430GT• China=390GT• India=380GT• South America=310GT• Western Europe=260GT• Japan/Korea=2GT

• Maximum demand < than 2200GT within 100 years• 8100 large point sources (>100,000 tons/yr) worldwide

Source: IPCC

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Carbon Capture and Storage Cost Chain

CO2 export terminal and pipeline transportation or shipment

Power & Industrial processes with CO2capture and conditioning

Injection for Geological storage in producing or depleted oil and gas fields & aquifers

Cost

$30 – 50 /t $1 - 5/t* $2 - 10/t*= $ 33 – 65/t **

Monitoring:$0.1-1/t

** Variability is key* Cost principally distance dependant ($2M per Mile)

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Storage Fundamentals

CO2

?

Post injectionSaline Formation

Caprock

• Capacity: (match to source & estimate plume shape)• bulk volume (seismic) X porosity (logs) X “storage factor”

• Injectivity (how many wells)• permeability from core, log & well test

• Containment (caprock integrity, fractures, wellbore integrity, faults)

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Risk of Storage

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Operational Monitoring• CO2 injection control• Cap rock integrity

Verification Monitoring• CO2 location and tracking• Cap rock integrity• Well Integrity

Environment Monitoring• Aquifers• Surface• Atmosphere

Westbay

Storage Program Lifecycle

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CO2 Technology All Seismic ServicesWellbore Integrity EvaluationDrilling & CompletionCementing Logging, Testing & SamplingLab AnalysisData ProcessingModeling & Plume PredictionData ManagementOperational MonitoringVerification MonitoringEnvironmental Monitoring

What Capabilities are Needed?

People + Technology

&

People

Geology Geophysics

Reservoir Engineer Drilling Engineer

Petrophysics Completion Engineer

Geomechanics Geochemistry

Hydrogeology Economics

HSE Injection

Project Management

People

Geology Geophysics

Reservoir Engineer Drilling Engineer

Petrophysics Completion Engineer

Geomechanics Geochemistry

Hydrogeology Economics

HSE Injection

Project Management

Tools for Team Integration – Petrel Shared Earth ModelFocused Organization

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ContainmentCapacityInjectivity

Geomechanics• Fault Stability• Sustainable fluid pressure

Well integrity• Zonal isolation

Hydrodynamics• Formation water flow systems

• 3D Cellular Geological Model• Pore Volume• Connectivity

• Reservoir quality• Geometry• Connectivity

Data Collection & QC–Geophysics / Geology

–Petrophysics / Mineralogy–Geomechanics–Fluid Properties

–Well Integrity



–Well Integrity

ModelingModeling









–Well Integrity



–Well Integrity

ModelingModeling


























–Well Integrity



–Well Integrity

ModelingModeling



–Well Integrity



–Well Integrity

ModelingModeling

Site Characterization

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Modeling a CO2 StorageSurface imaging MappingEM survey interpretationData input

Information managementGIS database

Log interpretationWell correlationSurface identificationSurface/subsurface interaction

Uncertainty analysisUpscaling processesReservoir and Aquifer property population

CalibrationHistory matchPost processingPresentation

Data analysisFacies modellingFault modellingFracture modellingHydrodynamic test analysis

3D flow simulationGeochemistryGeomechanics

Eclipse

3D Geological model3D Property model of the Reservoir and the Overburden

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Seismic for CharacterizationConventional 3-D Seismic Hi-Resolution Q Seismic

Resolution

Data Quality

FormationCharacteristics

8-40 Hz 6-80 Hz

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g y yCap Rock Integrity - Microseismicity

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Cross-Well

4D Seismic

RST Log

gCO2 Location & Tracking

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Schlumberger Participation in CO2 Sequestration

Field Demonstration Activity

Internal CO2 Research

CO2ReMoVe (EU)DYNAMIS (EU)MovEcbm (EU)CO2SINK (EU)CO2CRC (Australia)DOE RPP (US)

NACCSA (US)Stanford GCEP (US)MIT CSI (US)GCCC (US)CoalSeq (US)Weyburn II (Canada)

Consortiums

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Current locations of geological storage

Saline formation

1,6001772004United StatesFrio

EGR8,000,000100 2004NetherlandsK12B

Saline formation

20,000,0003,0001996NorwaySleipner

Gas field17,000,0003,000 - 4,0002004AlgeriaIn Salah

EOR20,000,0003,000 - 5,0002000CanadaWeyburn

Reservoir type

Total plannedstorage (tCO2)

Daily injection(tCO2/day)

Injection startCountryProject name

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CO2 is pulled from the production

stream and reinjected into a

saline aquifer

Large-scale CO2 sequestration Example

Sleipner North Sea Project (Statoil)

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200 m thick27% porosityhigh permeabilitybetween 15-36 oC – within critical rangeminimum depth 800-1200 m below mudline

Currently monitoring CO2migration with seismic

Sleipner North Sea Project

Utsira Formation: Miocene Saline Reservoir

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Conclusions

• CCS presents the only existing technology that can complement renewable and efficiency gains to achieve 50% emissions reduction by 2050.

• The Skills and Technologies needed for successful CCS can be easily exported from the E&P Industry

• Barriers to CCS projects are mainly regulatory and public awareness; • Technological advances are needed to reduce costs of capture.

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• QHSE management• Performance & risk management• Site screening & selection • Detailed site characterization• Site design• Site construction• Site operations• Measurement, Monitoring & Verification (MMV)

Trusted End to End CO2 Storage

http://www.slb.com/content/services/additional/carbon/index.asp?

Carlos Calad

Technology

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