The CO2 Enhanced Oil Recovery
Story
Story
Tim Bradley
President Kinder Morgan CO2 Company
Outline
1 CO2 Enhanced Oil Recovery Overview
1.
–
–
Oil Field Development Sequence
US: Current and Future
2. A Deeper Look
–
–
How it works
How its done
3. Safety and Environmental
–
O Track
Our
T k Record
R
d
A Representative Oil Field Development Sequence
Primary
Secondary
CO2 EOR
16
14
12
10
8
15-25% OOIP
6
4
2
10-15% OOIP
10-20% OOIP
0
0
5
10
15
20
25
30
35
40
45
50
US Active CO2 EOR Projects
Domestic CO2 EOR Achievements
125
100
75
50
25
0
1984
1988
1992
1996
2000
2004
2008
US EOR CO2 D
Deliveries,
li i MMCF/d
– Produced and injected more than 10.8 TCF
of CO2 from 7 sources.
• 1.2 TCF of which came from sources that otherwise
3000
N. Dakota
Mississippi
W
Wyoming
i
2000
Over the past 30+ years, the oil and gas
industry has:
would have been vented.
– Constructed over 3100 miles of CO2
mainline pipeline systems.
1000
Permian Supplies
0
1972
1977
1982
1987
1992
1997
2002
2007
US EOR Oil Production, B/D
– Produced in excess of 1.2 billion barrels of
incremental oil.
800000
– Secured operating practices of:
Other Gas
600000
400000
Chemical
•
•
•
•
Thermal
200000
0
1984
CO2
1988
1992
1996
2000
2004
Sources: Oil & Gas Journal, Personal Knowledge
2008
Corrosion management, Metallurgies, Elastomers
Separation, Dehydration and Hydrocarbon extraction
Compression/pumping
Injection and production well completion and
operation
U.S. CO2 EOR Business
Currently injecting 2.5 BCF/d
Rockies potential demand: 0-1.7 BCF/D
Illi i potential
Illinois
t ti l demand:
d
d 0-0.4
0 0 4 BCF/D
Maine
Washington
Potential U.S. EOR
p
CO2 Consumption:
Great Plains Coal Plant
Montana
North Dakota
New Hampshire
Vermont
Minnesota
Oregon
Wi
Wisconsin
i
Idaho
N
New
Y
York
k
South Dakota
LaBarge
Massachusetts
Rhode Island
Connecticut
Michigan
Wyoming
13.5 Bcf/d
or
0 26 GT CO2/yr
0.26
Pennsylvania
New Jersey
Iowa
Nevada
Ohio
Nebraska
Utah
Illinois
Colorado
California
McElmo Dome Sheep Mountain
Delaware
Maryland
Indiana
W Virginia
W.
Vi i i
Kansas
Virginia
Missouri
Kentucky
North Carolina
Oklahoma
Bravo Dome
Arizona
Arkansas
New Mexico
Tennessee
Mississippi Alabama
Louisiana
Texas
Domestic EOR
could reduce U.S.
emissions by 4%
South Carolina
Georgia
Jackson Dome
CA potential demand: 0-2.9 BCF/D
Florida
TX, LA potential demand: 1.3-8.5 BCF/D
Source: ARI/DOE Feb 2006
PETRA 12/1/99 10:10:02 AM
CO2 EOR Expected to be ~25% of US
Oil Production by 2030
7
6
Million
Barrels
per Day
CO2 EOR
5
4
3
2
1
0
2006
006
Source: AEO 2008
2011
0
2016
0 6
2021
0
2026
0 6
-
EOR Process Diagram
7000 FEET
7
CO2 is produced from 8,500’
wells in SW Colorado
CO2 and the
entrained oil
from
producer
wells in the
oil field
High Pressure & High Purity CO2 is
d i d and
dried
d further
f th compressed
d until
til
in supercritical phase (“liquid”)
CO2 is re-injected
into the oil bearing CLOSED
SYSTEM
formation
CO2 is then pumped to 2200 lbs
pressure into a 30” pipeline
system
~ 3500’ – 9000’
Below the surface
CO2 is
metered into
the oil field
-
Oil is
separated and
the CO2 is
returned to the
injection wells
CO2 Enhanced Oil Recovery: Process Schematic
• CO2 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
captured, dehydrated
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
CO2 Purchases
Recycled CO2
Water
Volumetric Summary
300
Original Oil In Place: 600 MMB
67 MMB EOR 11% 400 BCF purchased
Net CO2 Utilization 6 Gross CO2 Utilization 15.8
2 0
250
200
W/G ~ 1.4
Economic Summary
150
Capex:
CO2 Cost:
Payout:
IRR:
~16 Mcf/b
100
50
~6 Mcf/b
8% of oil price per bbl
2.5% of oil price per MCF
5 years
20%
0
0
5
10
15
20
25
30
1200
16
1000
14
Cum. Cash Flow
800
12
600
10
400
8
Cum. Disc. Cash Flow
200 Annual Cash Flow
6
0
4
Oil Production
-200
2
0
2
4
6
8
10 12 14 16 18 20 22 24
-400
0
Year
0
5
10
15
20
25
30
•Not necessarily typical
Environmental, Health, and Safety:
Myths:
CO2 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 EOR
CO2
O results in significant
f
releases to the environment
•Our EOR operations emitted 0.3% of the total volume of CO2 we handled in 2008
•Key
Key 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
y track record in source, p
pipeline
p
and EOR
operations is commendable
•CO2 releases to the atmosphere represent a tiny percent of the total
volume involved
The operating practices to drill and complete wells, install needed piping,
and 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
CCS