ENHANCED OIL RECOVERY (EOR) AS A
STEPPING STONE TO CARBON CAPTURE
AND SEQUESTRATION (CCS)
Dana M Abdulbaqi, Saudi Aramco
Carol Dahl, Colorado School of Mines
& Luleo Technical University
Mohammed AlShaikh, Saudi Aramco
June 2016
Outline
• Motivations
• Workflow and Objectives
• Methodology
• Reservoir Simulation Model
• Dynamic Optimization Model
• Results
• Conclusions
• Future Work
2
Motivation
•
CO2-EOR’s commercial viability as a sequestration
option:
• Industry’s Expertise
• Existing Infrastructure
• Technical estimates of CO2 sequestration potential
•
Opportunity for development of CO2 Market
•
•
•
Carbon Capture Facilities = Suppliers
CO2-EOR Projects = Demanders
How CO2-EOR producer’s will co-optimize:
•
Oil Recovery & CO2 Sequestration
3
Motivation
•
•
Leach, Mason and van’t Veld, 2011 Co-Optimization of
Enhanced Oil Recovery and Carbon Sequestration.
•
Only study found that uses a dynamic optimization
model to address the co-optimization issue.
•
Analysis is limited to the productive life of the field.
van’t Veld, K, Wang, X, Alvarado, V, 2014 Economic Cooptimization of Enhanced Oil Recovery and CO2
Sequestration.
•
Make use of dynamic reservoir simulation model to
enhance technical assumptions.
4
Stage-2: CO2 Sequestration
Reservoir Simulation
Maximizing NPV of the
producer during CO2
sequestration activities subject
to resource constraints.
Dynamic Reservoir
Simulation Model was built
to mimic CO2-EOR process
using WAG injection and
estimate sequestration
capacity.
Stage-1: CO2-EOR
Maximize NPV of
the producer during
CO2-EOR subject to
resource
constraints and tax
policy.
δ(c(t))
Equations
Reservoir simulation
model output was used
to construct equations
used in the dynamic
optimization model.
Dynamic Optimization
A 2-stage dynamic optimization model was developed to track total carbon
movements during the CO2-EOR and beyond oil production activities.
Optimal Control: Stage 1 CO2-EOR
𝑻
𝒆−𝒓𝒕
𝒎𝒂𝒙 𝝅 =
𝟎
•
•
•
•
•
•
𝒑 − 𝜷𝝉 𝒒𝒐𝒑 𝒕
+ 𝝉𝒒𝒄𝒔 (𝒕)
−[ 𝒘𝑵𝑹 + 𝝉 𝒒𝒄𝑵𝑹 (𝒕) 𝒅𝒕
−𝒘𝑪𝑨𝑷 𝒒𝒄𝑪𝑨𝑷 (𝒕)
−𝒘𝒓 𝒒𝒄𝒓 (𝒕)
−𝑭
𝑝 − 𝛽𝜏 𝑞𝑝𝑜 ( 𝑡) – Revenues from Oil Production
𝜏𝑞𝑠𝑐 (𝑡) – Revenues From Sequestration
𝑐
𝑤𝑁𝑅 + 𝜏 𝑞𝑁𝑅
(𝑡)– Costs of Natural CO2 Usage
𝑐
𝑤𝐶𝐴𝑃 𝑞𝐶𝐴𝑃
(𝑡) – Costs of Captured CO2 Usage
𝑤𝑟 𝑞𝑟𝑐 𝑡 – Costs of Recycling CO2
𝐹 – Costs not related to CO2 purchase and handling
6
Optimal Control: Stage 1 CO2-EOR
𝑻
𝒆−𝒓𝒕
𝒎𝒂𝒙 𝝅 =
𝟎
𝒑 − 𝜷𝝉 𝒒𝒐𝒑 𝒕
+ 𝝉𝒒𝒄𝒔 (𝒕)
−[ 𝒘𝑵𝑹 + 𝝉 𝒒𝒄𝑵𝑹 (𝒕) 𝒅𝒕
−𝒘𝑪𝑨𝑷 𝒒𝒄𝑪𝑨𝑷 (𝒕)
−𝒘𝒓 𝒒𝒄𝒓 (𝒕)
−𝑭
Constraints:
𝑶𝒊𝒍(𝒕) = −𝒒𝒐𝒑 𝒕
𝑵𝒂𝒕𝒖𝒓𝒂𝒍 𝑪𝑶𝟐(𝒕) = −𝒒𝒄𝑵𝑹 𝒕
𝑺𝒆𝒒𝒖𝒆𝒔𝒕𝒓𝒂𝒕𝒊𝒐𝒏(𝒕) = 𝒒𝒄𝒔 𝒕
7
Optimal Control: Stage 2 CO2 Seq.
𝑻
𝒆−𝒓𝒕 (𝒑𝒑 )𝒒𝒄𝒔 𝒄 𝒕
𝒎𝒂𝒙 𝝅 =
− 𝑭𝒄 𝒕
𝒅𝒕
𝒕𝟏
•
(𝒑𝒑 )𝒒𝒄𝒔 𝒄 𝒕 – Revenues from Selling Pore Space
•
𝑭𝒄 𝒕 – costs for CO2 purchase and handling
•
Constraint:
𝑺𝒆𝒒𝒖𝒆𝒔𝒕𝒓𝒂𝒕𝒊𝒐𝒏(𝒕) = 𝒒𝒄𝒔 𝒄 𝒕
𝒕𝟏
𝒒𝒐𝒑 𝒕
𝑺𝒆𝒒𝒖𝒆𝒔𝒕𝒓𝒂𝒕𝒊𝒐𝒏 𝑻 ≤ 𝟏. 𝟐 ∗
𝟎
8
Results
•
Using various combinations of oil price (P) and tax
levels (𝜏) to solve for the optimal time paths of:
𝑐
𝑐
• CO2 usage from each source 𝑞𝑁𝑅
(𝑡) & 𝑞𝐶𝐴𝑃
• CO2 injection rate 𝑐 𝑡
• CO2 sequestration 𝑞𝑠𝑐 (𝑡)
• Oil production 𝑞𝑝𝑜 (𝑡)
• Timing of the switch from Stage 1 to 2
• Termination Time
•
Tax Threshold = 𝑤𝐶𝐴𝑃 − 𝑤𝑁𝑅 =
$20
𝑡𝐶𝑂2
𝑡
(Stage 1)
9
Stage 2: Total Profits Over Both Stages in Millions of Dollars
Tax Level
Price Level
50
100
150
200
0
42
90
138
187
19
38
86
133
182
20
37
85
133
181
21
37
85
134
181
40
33
80
128
176
80
21
68
117
165
120
10
57
106
155
Conclusions
•
Our model assists in
•
•
Tracking total carbon movements under a tax
policy.
We observe
•
•
Transition from usage of natural to captured CO2.
Incentive to continue CO2 sequestration beyond
oil production.
•
•
Reduce net CO2 emissions resulting from oil
production.
Minimal Impact on Oil Production
14
ENHANCED OIL RECOVERY (EOR) AS A
STEPPING STONE TO CARBON CAPTURE
AND SEQUESTRATION (CCS)
Dana M Abdulbaqi, Saudi Aramco
Carol Dahl, Colorado School of Mines
& Luleo Technical University
Mohammed AlShaikh, Saudi Aramco
June 2016
Future Work
• Co-manage of oil production and pore volume
capacity while varying:
• Market Parameters
• Reservoir Parameters
• Upscale to regional modeling effort
• Allocation of natural and captured CO2
volumes across a portfolio of producing
assets
• Impacts on co-management of pore volume
& oil production
• Mechanics of supply and demand of CO2
16
How CO2-EOR Works?
18