We present the results of compositional reservoir simulation of a prototypical CO 2 sequestration project in a deep saline aquifer. The objective was to better understand and quantify estimates of the most important CO 2 storage mechanisms under realistic physical conditions. Simulations of a few decades of CO 2 injection followed by 10 3 to 10 5 years of natural gradient flow were performed. The impact of several parameters was studied, including average permeability, the ratio of vertical to horizontal permeability, residual gas saturation, salinity, temperature, aquifer dip angle, and permeability heterogeneity. The storage of CO 2 in residual gas emerges as a potentially very significant issue meriting further study. Under some circumstances this form of immobile storage can be larger than storage in brine and minerals. Most importantly, we find that permanent storage is feasible. That is, the storage process can be designed to place large volumes of CO 2 in forms that will not escape the aquifer any faster than fluids originally present in the aquifer. After 50 years of injection, the injector is shut in, and the simulation continues with only density differences driving the flow.Having established the base case, we conducted simulations to study the effect of the parameters influencing the distribution of CO 2 in the aquifer. These parameters include permeability, the