Economic evaluation on CO2-EOR of onshore oil fields in China

Abstract

a b s t r a c tCarbon dioxide enhanced oil recovery (CO 2 -EOR) and sequestration in depleted oil reservoirs is a plausible option for utilizing anthropogenic CO 2 to increase oil production while storing CO 2 underground. Evaluation of the storage resources and cost of potential CO 2 -EOR projects is an essential step before the commencement of large-scale deployment of such activities. In this paper, a hybrid techno-economic evaluation method, including a performance model and cost model for onshore CO 2 -EOR projects, has been developed based on previous studies. Total 296 onshore oil fields, accounting for about 70% of total mature onshore oil fields in China, were evaluated by the techno-economic method. The key findings of this study are summarized as follows:(1) deterministic analysis shows there are approximately 1.1 billion tons (7.7 billion barrels) of incremental crude oil and 2.2 billion tons CO 2 storage resource for onshore CO 2 -EOR at net positive revenue within the Chinese oil fields reviewed under the given operating strategy and economic assumptions. (2) Sensitivity study highlights that the cumulative oil production and cumulative CO 2 storage resource are very sensitive to crude oil price, CO 2 cost, project lifetime, discount rate and tax policy. High oil price, short project lifetime, low discount rate, low CO 2 cost, and low tax policy can greatly increase the net income of the oil enterprise, incremental oil recovery and CO 2 storage resource.(3) From this techno-economic evaluation, the major barriers to large-scale deployment of CO 2 -EOR include complex geological conditions, low API of crude oil, high tax policy, and lack of incentives for the CO 2 -EOR project.

Economic analysis of CO2-enhanced oil recovery in Ohio: Implications for carbon capture, utilization, and storage in the Appalachian Basin region

“…These previous studies are widely reviewed and accepted methods for estimating CO 2 -EOR and storage costs (Jablonowski and Singh, 2010;U.S. DOE-NETL, 2014a;Wei et al, 2015). Calculation schemes were selected from these existing studies and populated with Ohio-specific data to define the components of the reservoir performance, revenue, and cost models in this study.…”

CO2-EOR/Sequestration: Current Trends and Future Horizons

“…When the condensation/ vaporization process proceeds further downstream, the gas becomes more enriched due to contact with the oil. And the enrichment is said to occur at the point where the gas "nearly" becomes miscible with the original reservoir oil, ensuring a more efficient displacement process, even though miscibility is never fully developed (i.e., the two phases are never fully miscible in all proportions) [20,[27][28][29]. CO 2 is not miscible with most crude oils at first contact under normal reservoir conditions.…”

Optimization of CO2 injection using multi-scale reconstruction of composition transport

“…Several economic studies of CO 2 injection processes have been performed in [4,15,29,32]. McCoy and Rubin [19] proposed several regression equations for assessment of the capital cost of CO 2 injection projects, which are validated in [37] and [4]. Referring to [32], this techno-economic model uses simulation input data and oil production rate, gas injection rate, and bottom hole pressure (BHP) to define different costs and revenues of the project.…”