The CO Enhanced Oil Recovery Story - Home | Environmental Defense Fund
Transcript of The CO Enhanced Oil Recovery Story - Home | Environmental Defense Fund
The COThe CO22 Enhanced Oil Recovery Enhanced Oil Recovery SSStoryStory
Tim BradleyTim BradleyPresident Kinder Morgan CO2 CompanyPresident Kinder Morgan CO2 Company
OutlineOutlineOutlineOutline
11 COCO22 Enhanced Oil Recovery OverviewEnhanced Oil Recovery Overview1.1. COCO22 Enhanced Oil Recovery OverviewEnhanced Oil Recovery Overview–– Oil Field Development SequenceOil Field Development Sequence–– US: Current and Future US: Current and Future
2.2. A Deeper LookA Deeper Look–– How it worksHow it works–– How its doneHow its done
3.3. Safety and EnvironmentalSafety and EnvironmentalO T k R dO T k R d–– Our Track RecordOur Track Record
A Representative Oil Field Development Sequence
Primary Secondary CO2 EOR
121416
81012
468
15-25% OOIP
10-15% OOIP
024
10-20% OOIP
00 5 10 15 20 25 30 35 40 45 50
US Active CO2 EOR Projects
75100125 Domestic CO2 EOR Achievements
US EOR CO2 D li i MMCF/d
0255075
1984 1988 1992 1996 2000 2004 2008Over the past 30+ years, the oil and gas
industry has:US EOR CO2 Deliveries, MMCF/d
3000
W i MississippiN. Dakota
– Produced and injected more than 10.8 TCF of CO2 from 7 sources.
• 1.2 TCF of which came from sources that otherwise
1000
2000
Permian Supplies
Wyoming Mississippiwould have been vented.
– Constructed over 3100 miles of CO2 mainline pipeline systems.
US EOR Oil Production, B/D
800000
01972 1977 1982 1987 1992 1997 2002 2007 – Produced in excess of 1.2 billion barrels of
incremental oil.
200000
400000
600000
Chemical
Other Gas
Thermal
– Secured operating practices of:• Corrosion management, Metallurgies, Elastomers• Separation, Dehydration and Hydrocarbon extraction• Compression/pumping• Injection and production well completion and
0
200000
1984 1988 1992 1996 2000 2004 2008
CO2
Injection and production well completion and operation
Sources: Oil & Gas Journal, Personal Knowledge
U.S. CO2 EOR Business
Rockies potential demand: 0-1.7 BCF/DIlli i t ti l d d 0 0 4 BCF/D
Currently injecting 2.5 BCF/d
MaineMaine
MassachusettsMassachusetts
MinnesotaMinnesota
MontanaMontana New HampshireNew Hampshire
N Y kN Y kOregonOregon
VermontVermont
WashingtonWashington
Wi iWi i
North DakotaNorth DakotaGreat Plains Coal Plant
Illinois potential demand: 0-0.4 BCF/D
Potential U.S. EOR CO2 Consumption:
ColoradoColorado
ConnecticutConnecticut
DelawareDelaware
IdahoIdaho
IllinoisIllinois IndianaIndiana
IowaIowa
MarylandMaryland
MassachusettsMassachusetts
MichiganMichigan
NebraskaNebraskaNevadaNevada
New JerseyNew Jersey
New YorkNew York
OhioOhio
PennsylvaniaPennsylvania
Rhode IslandRhode IslandSouth DakotaSouth Dakota
UtahUtah
W Vi i iW Vi i i
WisconsinWisconsin
WyomingWyomingLaBarge
2 p
13.5 Bcf/dor
0 26 GT CO /yr
AlabamaAlabama
ArizonaArizonaArkansasArkansas
CaliforniaCalifornia KansasKansas KentuckyKentuckyMissouriMissouri
New MexicoNew Mexico
North CarolinaNorth CarolinaOklahomaOklahoma
South CarolinaSouth CarolinaTennesseeTennessee
VirginiaVirginiaW. VirginiaW. Virginia
MississippiMississippi
McElmo Dome Sheep Mountain
Bravo Dome
0.26 GT CO2/yr
Domestic EOR could reduce U.S.
AlabamaAlabama
FloridaFlorida
GeorgiaGeorgia
LouisianaLouisianaTexasTexas
MississippiMississippi
Jackson Dome
CA potential demand: 0-2.9 BCF/D
emissions by 4%
PETRA 12/1/99 10:10:02 AMPETRA 12/1/99 10:10:02 AM
TX, LA potential demand: 1.3-8.5 BCF/DSource: ARI/DOE Feb 2006
CO2 EOR Expected to be ~25% of US Oil Production by 2030
67
456
Million Barrels
CO2 EOR
123
Barrels per Day
01
2006 2011 2016 2021 2026006 0 0 6 0 0 6
Source: AEO 2008
EOR Process Diagram-
CO2 is produced from 8,500’ wells in SW Colorado
CO2 and the
High Pressure & High Purity CO2 is d i d d f th d til
entrained oil from
producer wells in the
oil field-
dried and further compressed until in supercritical phase (“liquid”)
CO2 is re-injected into the oil bearing
formation
oil field
Oil is separated and70
00 F
EET
CLOSED SYSTEM
CO2 is then pumped to 2200 lbs pressure into a 30” pipeline
system
~ 3500’ – 9000’
Below the surface
separated and the CO2 is
returned to the injection wells
7
CO2 is metered into the oil field
-
CO2 Enhanced Oil Recovery: Process Schematic• CO2 mixes with oil much like turpentine cleans paint from a brushCO2 mixes with oil much like turpentine cleans paint from a brush
• Inter-phase mass transfer typically yields NGL rich gas production
• CO2 produced with the oil is captured dehydrated and reinjected - a closed systemCO2 produced with the oil is captured, dehydrated, and reinjected a closed system
• Chase water injection helps control mobility and gas recycle
CO2 Enhanced Oil Recovery: Animation
A Representative* Permian Basin CO2 EOR Project
2 0
300
CO2 Purchases Recycled CO2 WaterVolumetric Summary
Original Oil In Place: 600 MMB67 MMB EOR 11% 400 BCF purchased
150
200
250
~16 Mcf/b
W/G ~ 1.4
67 MMB EOR 11% 400 BCF purchased Net CO2 Utilization 6 Gross CO2 Utilization 15.8
Economic SummaryCapex: 8% of oil price per bbl
0
50
100
0 5 10 15 20 25 30
~6 Mcf/b
CO2 Cost: 2.5% of oil price per MCFPayout: 5 yearsIRR: 20%
0 5 10 15 20 25 30
121416
800
1000
1200
Cum. Cash Flow
468
10
Oil Production0
200
400
600
0 2 4 6 8 10 12 14 16 18 20 22 24
Annual Cash FlowCum. Disc. Cash Flow
024
0 5 10 15 20 25 30
Oil Production
-400
-200 0 2 4 6 8 10 12 14 16 18 20 22 24
Year
•Not necessarily typical
Environmental, Health, and Safety:
Myths:CO2 is toxicCO2 is toxic
•Its in the air we breathe and does not explode
•The operating risks include corrosion, high pressure, and asphyxiation – all of which have been successfully controlled by the industry for nearly 40 years
CO O fCO2 EOR results in significant releases to the environment
•Our EOR operations emitted 0.3% of the total volume of CO2 we handled in 2008•Key causes for releases: Routine maintenance and power outages caused by stormsKey causes for releases: Routine maintenance and power outages caused by storms
•Our source operations emitted .004% of the volume we produced in 2008•Key cause for releases: Routine maintenance
•Our reportable emissions on our 1300 miles of pipe in 2008 was .000035% (equivalent to emissions from 2 vehicles during the same time frame)
CO2 Enhanced Oil Recovery - Recap
It has reduced oil imports, and could generate ~25% of domestic production in 2 decades
•Uses existing footprint versus green-field developments
The environmental and safety track record in source, pipeline and EOR y p poperations is commendable
•CO2 releases to the atmosphere represent a tiny percent of the total volume involvedvolume involved
The operating practices to drill and complete wells, install needed piping, and construct required gas processing facilities has been successfullyand construct required gas processing facilities has been successfully deployed by the industry for nearly 40 years
•The technologies developed since the ‘70’s have paved the way for CCSCCS