EOR Economic Analysis - Midwestern Governors Association

More documents

Recommendations

Info

ILLINOIS 38 CO2-EOR Potential in MGA Region – February 2012
Illinois/Indiana area is likely to have economically viable CO2-EOR opportunities • Screening process suggests that the region has 500M+ bbls of miscible EOR potential – The five largest fields alone have nearly 250 million bbls of EOR potential – Using different methodology, MGSC estimated Basin (including KY) potential of 0.8-1.3B bbls – We chose two representative fields for our analysis: • New Harmony, which straddles Illinois and Indiana, was chosen given technical data in public domain; it is typical of large fields in Illinois Basin (ILB) • Concord and Herald represent small field opportunity, with potentially local CO2 source – Potential net CO2 demand estimated at 160 - 250 MMT • The region has an abundance of low cost CO2 – There is more than 17 MMT CO2 emitted annually by ethanol fermentation process in Illinois, Indiana and Iowa – CO2 that can be captured at an estimated cost around $25/MT – ADM is currently injecting 1MMT of CO2 from their Decatur plant into the Mt. Simon formation, as part of a 3 year DOE project testing geological storage, CO2 may be available for EOR when project completes – CO2 from future gasification projects, currently planned to be transported south by the proposed Denbury pipeline, could also be used locally for regional CO2-EOR • Representative field economics suggest reasonable profitability for larger fields and potentially marginal results for smaller fields – New Harmony project, with reference case assumptions, produces after tax IRR of 21% – Concord and Herald lead to smaller returns of after tax IRR of 9%. We believe returns could be better given field age and close proximity to low price CO2 source • State economy would benefit, adding 1,550-3,100 direct jobs 39 CO2-EOR Potential in MGA Region – February 2012
Page 1 and 2: CO2-EOR POTENTIAL IN THE MGA REGION
Page 3 and 4: EXECUTIVE SUMMARY 3 CO2-EOR Potenti
Page 5 and 6: CO2-EOR could be commercially viabl
Page 7 and 8: Ohio’s large resource potential c
Page 9 and 10: APPROACH & ASSUMPTIONS 9 CO2-EOR Po
Page 11 and 12: Reference case assumes US EIA 2011
Page 13 and 14: Midwest is rich in ethanol based CO
Page 15 and 16: Initial capital costs are significa
Page 17 and 18: Pipeline costs are a small componen
Page 19 and 20: Summary • MGA region has large oi
Page 21 and 22: Thousand Barrels per Day Regional c
Page 23 and 24: …with an abundance of stationary
Page 25 and 26: Oil and gas basins were screened fo
Page 27 and 28: MICHIGAN 27 CO2-EOR Potential in MG
Page 29 and 30: Michigan state overview CO2 Emissio
Page 31 and 32: The area is attractive for CO2-EOR
Page 33 and 34: Eastern Leg: Kalkaska & Otsego Coun
Page 35 and 36: State could benefit through additio
Page 37: Next Steps • Given relatively sma
Page 41 and 42: Illinois, Indiana and Iowa have an
Page 43 and 44: Representative field economics sugg
Page 45 and 46: Smaller fields could benefit from d
Page 47 and 48: Next Steps • Utilize data from sm
Page 49 and 50: Ohio’s large resource potential c
Page 51 and 52: East Canton economics suggest great
Page 53 and 54: State economy would benefit from ad
Page 55 and 56: KANSAS 55 CO2-EOR Potential in MGA
Page 57 and 58: Kansas state overview CO2 Emissions
Page 59 and 60: State has access to high volume of
Page 61 and 62: Our financial modeling suggests pos
Page 63 and 64: Next Steps • More characterizatio
Page 65 and 66: Abbreviations, acronyms and units o
Page 67 and 68: Abbreviations, acronyms and units o
Page 69: 69 CO2-EOR Potential in MGA Region

EOR Economic Analysis - Midwestern Governors Association

Create successful ePaper yourself

Delete template?

Save as template?