SPE Distinguished Lecturer Program - Society of Petroleum Engineers

SPE Distinguished Lecturer Program
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lecturers.
Special thanks to the American Institute of
Mining, Metallurgical, and Petroleum
Engineers (AIME) for its contribution to
the program.
Society of Petroleum Engineers
Distinguished Lecturer Program
www.spe.org/dl
www.senergyltd.com

The Strategic Significance and
Practicalities of CO2 EOR and Storage
David S Hughes
(david.hughes@senergyworld.com)
Carbon Storage Specialist
USA, April 2009
Society of Petroleum Engineers
Distinguished Lecturer Program
www.spe.org/dl
www.senergyltd.com

Geological Storage of CO2
• New business stream for oil industry
• Store liquid CO2 in depleted oil and gas fields
and also saline aquifers
• Synergies with existing operations through
reuse of infrastructure etc. and possibility of
increasing hydrocarbon recovery
• Contributes to the fight on global warming
• Has value through Cap and Trade
arrangements such as the EU emissions trading
scheme
• But comes with regulations and liabilities
• Uses all our skills

IPCC Prediction of Requirement for
Carbon Capture and Storage (CCS)
• From ~2030 amount of
CO2 that requires to be
stored is ~4 billion
tonnes/year, rising to
~18 billion tonnes/year
in 2095
• c.f.3.9 billion
tonnes/year oil
production and 2.5
billion tonnes oil
equivalent/year gas
production in 2005
2030
From IPCC Special Report on Carbon Dioxide Capture and Storage 2005 and BP Statistical Review, 2006

CO2 Flooding is a Major Enhanced Oil
Recovery (EOR) Process in USA
CO2 to Canada
Weyburn
25,000 bbl/d
En Cana
2006 statistics
• 45 million tonnes fresh
CO2 injected per year
(USA)
• 53 projects USA (80
worldwide)
• ~180,000 b/d USA
(~260,000 b/d
worldwide)
• 1/3 of one percent of
world production
Rockies
5 Fields – Additional 2
Proposed (Anadarko)
19,520 Gross Bbls/d
Operators:
Exxon/Chevron/Merit
CO 2 Source:
Natural/Manufacturing
LeBarge
McElmo
Dome
Ridgeway CO 2
Discovery
Permian Basin
42 Fields
155,000 Gross
Bbls/d
Operator: Multiple
(16)
CO 2 Source:
Natural
Sheep
Mountain
CO2 supply
network
Bravo
Dome
Great Plains
Coal
Gasification
Plant
Gas
Plants
Mid-Continent
4 Fields
9,800 Gross Bbls/d
Operators:
Exxon/Anadarko/Chaparral
CO 2 Source: Manufacturing
Ammonia
Plant
Jackson
Dome
Eastern Gulf Gulf Coast
3 Fields
8,000 Gross Bbls/d
Operator: Denbury
CO 2 Source: Natural

World Coal Resources

Contribution to UK CO2 Emissions
From Power Sector
• UK CO2 emissions 2008
532 million tonnes*
• About 1/3 from fossil
fuelled power stations
• 23 million tonnes at Drax
in England
• 10 million tonnes at
Longannet in Scotland
*UK DECC, 26 March 2009

UK Commitment to Reduction in CO2
Emissions
• Under Kyoto Protocol UK committed to reducing greenhouse
gas emissions by 12.5% from their 1990 level by 2008-2012
(achieved 23% to 2008*)
• 2008 Climate Change Act has set legally binding targets for
the UK to reduce greenhouse gas emissions by at least 80%
by 2050, and CO2 emissions by at least 26% by 2020, from
1990 base (achieved 13% CO2 reduction to 2008*)
• Also requires the Government to set five year carbon budgets,
in order to set out a trajectory for emissions reductions to
2050
• Government sees Carbon Capture and Storage
(Sequestration) making a significant contribution towards
achieving these targets
• Principal funding mechanism issuing allowances and allowing
them to be traded (EU Emissions Trading Scheme)
*UK Department of Energy and Climate Change, 9 February and 26 March 2009

Fighting Climate Change (a year ago)
We’re fighting
climate
change with
techna-ology
We’re
legislating

Fighting Climate Change (now)
We’re
legislating
We’ve
legislated

Decarbonisation of UK Fossil Electricity
Supply
PetaJoule (10 15 Joule)
1 MWh = 3.6 10 9 Joules
UK Power Generation – Scenario
with 80% cut in CO2 Emissions
• Plan for UK fossil power supply
to be decarbonised (coal) by
2030
• CO2 Capture rates (million
tonnes per year)
2020-
25
2025-
30
2030-
35
2035-
40
2040-
45
2045-
50
18 82 145 180 202 206
From Heather Haydock, AEA, City and Financial CCS
Summit, 2 and 3 December 2008

Proposed New Power Stations with CO2
Capture and Storage
CO2 (mill te/y)
21
15
5
CO2 Captured
• Proposed programme would
capture up to 80 million tonnes
per year at 90% load factor
• So in 50 years 2 - 4 billion
tonnes needs to be stored
depending load factor
3 6
3
8
6
10
CO2 Storage Options
• Oil fields including enhanced
oil recovery (EOR)
• Depleted gas fields
• Saline aquifers
Map: ENDS Report July 2007

Coal
Oil
Natural Gas
Capture Options (~90%)
H 2 +CO 2 H 2 +CO
• Coal 900 kg CO2 per MWh
• Gas 400 kg CO2 per MWh
Exhaust, 0.3 - 0.5% CO 2
Power Plant
Conventional
CO 2
Capture
2H 2 + O 2 2H 2 O
Gasification
Reforming
Water-
Shift
CO 2
Capture
Power Plant
Hydrogen-rich fuel
CO 2
storage
Post Combustion Capture
Pre-combustion Capture
Oxyfuel Combustion
H 2 for other uses
Exhaust,
0.1 - 0.5% CO 2
CH 4 + O 2
Power Plant
Oxy-fuel
combustion
CO 2 + 2H 2 O
Air
Separation
Water
Removal

Sources and Potential Sinks of CO2
Around North Sea
Geographical
Information System
– Decision Support
System
Part of EU
GESTCO Project
British Geological
Survey, February 2005

SNS Gas Fields CO2 Storage Potential
• 53 fields most Permian
Leman Sandstone
• Proven geological trap for
hydrocarbon gas
• Near to CO2 sources
• Existing infrastructure
• Well and pressure depletion
may have compromised trap
• Aquifer influx may reduce
capacity
• CO2 capacity ~2.8 billion
tonnes

SNS Bunter Sandstone CO2 Storage
Potential
• A number of potentially
suitable saline aquifers have
been identified with
cumulative capacity maybe
10s billions tonnes
• For example SNS Bunter
sandstone
– 29 closed structures
– Good porosity (average 18.7%)
and permeability
– 650-9800 ft deep
– Near to CO2 sources
– Good seal (mudstones and
evaporites) - gas bearing in
places proves trap (or not!)
– Some existing infrastructure
– Cut by faults which may leak
Material on SNS gas field and aquifer storage from: An assessment of
carbon sequestration potential in the UK – SNS case study, Michele
Bentham, January 2006, Tyndall Centre

CO2 EOR Onshore - Advantages
• CO2 supply network
• High well density, pattern flood, relatively
cheap to redrill/refurbish
• Relatively low secondary recovery (35-45%)
• Phased implementation
• Large surface area available for facilities
• Currently economic

CO2 EOR Offshore - Challenges
• Limited CO2 supply (at least at present)
• Fewer wells, peripheral flood, expensive new
wells and workovers
• High secondary recovery (55-70%)
• Single implementation (i.e. no chance to
introduce the project in phases)
• Existing facilities mainly incompatible with
high CO2 content in fluids
• Limited weight and space for new facilities
• Estimated UK North Sea EOR-related CO2
capacity 0.5-1.9 billion tonnes (1-2.8 billion
barrels incremental oil)
• But probably need $100 barrel for offshore EOR
to be economic

Well Density – Onshore vs. Offshore
10 acre spacing (660ft sq) 600 acre spacing (5500ft sq)
http://www.opec.org/home/Press%20Room/EU-OPEC%20presentations/Iain%20Wright%20-%20Presentation.pdf

UK Carbon Capture, Transport and
Storage Competition
• Single CCS project up to 100% funding
(around £1 billion)
• Offshore disposal of CO2
• Coal (including oxyfuel) with post-combustion
capture (i.e. using technology that can be
retro-fitted and capable of being deployed in
China etc.)
• 300 - 400 MW (~ 2 million tonnes/y of CO2)
• First CO2 capture and storage by 2014
• Discussions ongoing with three consortia to
close contract in September 2009
• One of 10 - 12 demonstration projects in EU
by 2015

Sleipner CO2 Storage Project
Images: Alligator film /BUG / Øyvind Hagen StatoilHydro
• Natural gas in Sleipner
contains 9 mol% CO2
• Offshore chemical capture
plant reduces CO2 content
of gas for export to

Weyburn CO2 EOR, Saskatchewan,
Canada
200 mile pipeline - 2 million tonnes/year (~100 million scf/d)
130 mill barrel
30 mill te CO2

Weyburn - 4D Seismic Monitoring

CCS Activity Map
Canada
USA
Norway
UK
Europe
Algeria
UAE
India
Japan
China
South Africa
Australia

USA CO2 Emissions and Reduction Targets
• GHG emissions in 2005 were 7206 million (metric)
tonnes CO2 equivalent (actual CO2 emissions were
6032 million tonnes or 84% of total)
• Compared with 1990, 2007 CO2 emissions were
20% higher (34% higher from electricity generation)
• Kyoto target (non- signatory) was a reduction of 7%
• Reduction targets in Henry Waxman (House
Energy and Commerce Chairman) bill are 3% by
2012, 20% by 2020, 42% by 2030 and 83% by
2050 compared with 2005 base
• Note that the 2050 figure is 66% reduction
compared with 1990 base
http://www.eia.doe.gov/oiaf/1605/ggrpt/carbon.html
American Clean Energy and Security Act of 2009 (Draft), 30 March 2009

American Clean Energy and Security Act of
2009 (Draft)
• Act will establish Carbon Storage Research
Corporation with role to seed fund commercial
scale CCS with levy on fossil fuelled electricity
generation of $1 billion per annum for ten years
• Also establishes coordinated approach to permitting
and certifying geological storage sites including
subsurface property rights
• Establishes reporting and regulation regime for
CO2 injection sites including those associated with
enhanced hydrocarbon recovery
• Deals with liabilities for closed sites
American Clean Energy and Security Act of 2009 (Draft), 30 March 2009

Establishes US Wide Cap and Trade System
• Allowance trading system from 2012 covering
power utilities, oil companies and large
industrial sources totaling 85% of GHG
emissions (>25,000 tonnes/year)
• Number of allowances reduced each year to
meet emissions reduction targets
• 100% auctioning of allowances (23% revenue
used for clean energy investment rest returned
to people, communities and businesses)
• Trading system designed to establish and
maintain an effective, transparent, and fair
market for emissions allowances and preserve
the integrity of the cap on emissions
American Clean Energy and Security Act of 2009 (Draft), 30 March 2009

US Projected Power Generation by Fuel Type
and CO2 Emissions (Unabated)
US DOE/NETL Carbon Sequestration
Atlas of USA and Canada, 2008
American Clean Energy and
Security Act of 2009 (Draft),
30 March 2009

US CO2 Emissions from Power Sector
• From power sector
– 2.4 billion tonnes/y
CO2 (US)
– 5-6 billion tonnes/y
CO2 (worldwide)
• Growing substantially
– Expected to be by
1/3 rd in US over next
20 years without
action to reduce
emissions
CO2 emissions from electricity generation
(blue circles) and other industrial sources

US CO2 Storage Options
• Oil and gas fields 91
billion tonnes (red)
• Saline formations
3378 billion tonnes
(blue)
• Unmineable coal
seams 202 billion
tonnes (yellow)

FutureGen
(Original Project May Be Revived)
• 245 MW IGCC (gasifies coal to
produce hydrogen and CO2)
• In December 2007 awarded to
Mattoon Township, Coles
County, Illinois
• 1 million tonnes CO2 per
annum to be stored in saline
formation below site
• Funding canceled in January
2008 because of escalating
costs ($1.8 billion gross, 74%
from DOE)
• In March 2009 Secretary of
Energy Steven Chu
expressed support for
reviving FutureGen using
stimulus funds
• Part of a larger portfolio of
international demonstration
projects
• Cost now estimated at $2.3
billion

FutureGen
• Original single project program restructured mid-2008
to provide grants to multiple projects ($100-600 million
each)
• Total available around $1.3 billion
• 300-600 MW IGCC with Carbon Capture
• Goal of 90% capture (minimum 81%)
• CCS demonstration for 3-5 years with monitoring
continuing for further 2 years
• At least 1 million tonnes per year of CO2 at each
project
• Applications closed 8 th October 2008
• Start 2015

Regional Carbon Sequestration Partnerships
• Joint government and industry initiative to determine the most suitable
technologies, regulations, and infrastructure needed for CCS
• Geographical differences in fossil fuel use and sequestration sinks
across the US dictate regional approaches
• Seven partnerships:
– Big Sky Regional Carbon Sequestration Partnership (Big Sky)
– Plains CO2 Reduction Partnership (PCOR)
– Midwest Geological Sequestration Consortium (MGSC)
– Midwest Regional Carbon Sequestration Partnership (MRCSP)
– Southeast Regional Carbon Sequestration Partnership (SECARB)
– Southwest Regional Partnership on Carbon Sequestration (SWP)
– West Coast Regional Carbon Sequestration Partnership
(WESTCARB)
• Network includes 350+ state agencies, universities, and private
companies, spanning 41 states, two Indian nations, and four Canadian
provinces
http://www.netl.doe.gov/technologies/carbon_seq/partnerships/partnerships.html

Hydrogen Energy’s IGCC with CCS in
California
• Application for Certification
before the California Energy
Commission filed 31 July
2008
• Located in Kern County
(moved from Long Beach)
• Fuelled by petroleum coke or
coke/coal blends
• 390 MW gross output
• 2+ million tonnes/y CO2
captured (90%)
• Used for enhanced oil
recovery and storage in
Occidental’s nearby Elk Hills
oil field

Business Model
• Three distinct types of activity
– Power generation
– Transportation (pipelines and ships)
– Storage and EOR
• Each has their own stakeholders,
regulation regime, tax regime, subsidy
entitlement
• How are interests aligned?
• Business model(s) will evolve over next
decade

Conclusions
• CO2 storage is a substantial new business for
the oil industry
• Uses most of our skills but is a significant
challenge
• Is an absolute necessity to make significant
reductions in CO2 emissions
• Opens up the use of vast coal stocks
• Provides energy security through diversity
• Enables hydrogen to be used as energy carrier

Acknowledgements
• SPE Distinguished Lecturer Program
• Senergy for allowing me to participate
One day training course
Introduction to the Geological Storage of Carbon Dioxide (CO2)
Course outline at: www.senergyworld.com/training