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An integrated technical-economic model for evaluating CO2 enhanced oil recovery development

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  • Jiang, Jieyun
  • Rui, Zhenhua
  • Hazlett, Randy
  • Lu, Jun

Abstract

Carbon dioxide enhanced oil recovery (EOR) has been proved to effectively reduce CO2 emissions by storing industrial CO2 underground while increasing oil production. An integrated assessment model was developed to evaluate the technical and economic performance of CO2-EOR based on data from more than 40 historical field projects. Unlike previous models, the model comprehensively assesses economic potential and greenhouse gases (GHG) emission of CO2-EOR together and is based on a large amount of field data. The technical model estimates incremental oil production based on CO2 injection. The model also estimates the net CO2 emissions by considering the emissions from oil production and CO2 utilization. The economic model simulated the net present value (NPV) of six scenarios under different design requirements. The breakeven oil price for small scale CO2 pipeline project was $46.4/barrel. The porosity, net pay, CO2 injection, depth, oil formation factor, and oil saturation are the critical parameters affecting the economic performance based on the sensitivity analysis. The breakeven price of carbon tax scenario was $64.10/barrel, of which CO2 injection and carbon tax contributed 52% of the NPV variations. The study provides operators, investors, and even policymakers the sufficient and important information to fully understand CO2-EOR developments with various external and internal parameters before making the right decisions.

Suggested Citation

  • Jiang, Jieyun & Rui, Zhenhua & Hazlett, Randy & Lu, Jun, 2019. "An integrated technical-economic model for evaluating CO2 enhanced oil recovery development," Applied Energy, Elsevier, vol. 247(C), pages 190-211.
    • Handle: RePEc:eee:appene:v:247:y:2019:i:c:p:190-211
    DOI: 10.1016/j.apenergy.2019.04.025
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    References listed on IDEAS

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    13. Oghare Victor Ogidiama & Tariq Shamim, 2021. "Assessment of CO2 capture technologies for CO2 utilization in enhanced oil recovery," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 11(3), pages 432-444, June.
    14. Yanqing Wang & Liang Zhang & Shaoran Ren & Bo Ren & Bailian Chen & Jun Lu, 2020. "Identification of potential CO2 leakage pathways and mechanisms in oil reservoirs using fault tree analysis," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 10(2), pages 331-346, April.
    15. Ren, Bo & Male, Frank & Duncan, Ian J., 2022. "Economic analysis of CCUS: Accelerated development for CO2 EOR and storage in residual oil zones under the context of 45Q tax credit," Applied Energy, Elsevier, vol. 321(C).
    16. Shenghao Feng & Xiujian Peng & Philip Adams, 2021. "Energy and Economic Implications of Carbon Neutrality in China -- A Dynamic General Equilibrium Analysis," Centre of Policy Studies/IMPACT Centre Working Papers g-318, Victoria University, Centre of Policy Studies/IMPACT Centre.
    17. Yang, Renfeng & Zhang, Jinqing & Chen, Han & Jiang, Ruizhong & Sun, Zhe & Rui, Zhenhua, 2019. "The injectivity variation prediction model for water flooding oilfields sustainable development," Energy, Elsevier, vol. 189(C).
    18. Zhang, Xin & Liao, Qi & Wang, Qiang & Wang, Limin & Qiu, Rui & Liang, Yongtu & Zhang, Haoran, 2021. "How to promote zero-carbon oilfield target? A technical-economic model to analyze the economic and environmental benefits of Recycle-CCS-EOR project," Energy, Elsevier, vol. 225(C).
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