Importance of Economic and Risk Analysis on Today's Petroleum Engineering
Education

Cunha, José C.

doi:10.2523/109638-ms

Cited by 1 publication

(1 citation statement)

References 8 publications

(10 reference statements)

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“…In this study, Monte Carlo simulations on the NPV objective function were done to analyse the related risk of failure or success of the flooding project under economic uncertainty and to provide a basis for the CO2 flooding project. The Monte Carlo simulation (MCS) is a simple yet effective method for dealing with stochastic uncertainty (Cunha, 2007). It uses a random sampling of the uncertainty or uncertainties within its or their set ranges to provide the user or engineer with multiple outcomes.…”

Section: Parametric Studies Sensitivity and Uncertainty Analysismentioning

confidence: 99%

Techno-economic evaluation of the potential of CO2 storage and Enhanced Oil Recovery in the Niger-Delta Hydrocarbon Basin using reservoir simulation: Case Study

Ogbeiwi¹,

Stephen²

2023

Preprint

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The constant dependence on fossil fuel combustion for energy and industrial activities results in global warming and climate change due to the increased atmospheric concentration of greenhouse gases such as CO2. CO2 storage in mature petroleum reservoirs is considered one of the most viable ways to reduce CO2 concentrations in the atmosphere. The Niger-Delta hydrocarbon basin holds significant volumes of petroleum and is, therefore, a prime candidate for CO2 storage. This study uses a case study of a mature oil reservoir to assess the techno-economic potential for CO2-enhanced oil recovery and storage in the Niger Delta. The methodology used a suitable screening criterion to assess the feasibility of the case study reservoir for CO2 EOR and storage. The reservoir’s carbon storage and incremental oil recovery potentials were then estimated. A new economic model for the CO2 storage project in the Niger-Delta petroleum basin was developed and applied to establish the commercial viability of the CO2 flooding project. Sensitivity and uncertainty analyses were then performed to assess the economic risks associated with the project. Our results showed that the properties of the reservoir make it suitable for miscible CO2 injection and that the reservoir has huge potential for enhancing oil production by CO2 injection while storing a vast amount of the injected carbon in the subsurface. The economic study and uncertainty analysis results also revealed that CO2-enhanced oil recovery and storage in the Niger-Delta basin is economically viable even under economic uncertainties, and a relatively low oil price.

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Section: Parametric Studies Sensitivity and Uncertainty Analysismentioning

confidence: 99%