SPE Distinguished Lecturer Program - Society of Petroleum Engineers

SPE Distinguished Lecturer Program 

The SPE Distinguished Lecturer Program is funded principally 

through a grant from the SPE Foundation. 

The society gratefully acknowledges the companies that support 

this program by allowing their professionals to participate as 

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 


Operators: 

Exxon/Anadarko/Chaparral 

CO 2 Source: Manufacturing 

Ammonia 

Plant 

Jackson 

Dome 

Eastern Gulf Gulf Coast 

3 Fields 


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 


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 


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

SPE Distinguished Lecturer Program - Society of Petroleum Engineers

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