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How to promote zero-carbon oilfield target? A technical-economic model to analyze the economic and environmental benefits of Recycle-CCS-EOR project

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  • Zhang, Xin
  • Liao, Qi
  • Wang, Qiang
  • Wang, Limin
  • Qiu, Rui
  • Liang, Yongtu
  • Zhang, Haoran

Abstract

Nowadays, environmental problems caused by petroleum industries need to be alleviated urgently for the transit to low-carbon oilfields. Carbon Capture & Storage-Enhanced Oil Recovery (CCS-EOR) is effective to increase oil production while reducing carbon emissions, but few studies evaluated the cyclic projects that connect capture and injection inside the oilfield. Aiming at Recycle-CCS-EOR (RCE) project, this study proposes a comprehensive technical-economic model to analysis the economic and environmental benefits, considering the uncertainties of geological conditions, prices, and CO2 injection volume. Taking six blocks in real-world oilfields as the example, this model simulates four scenarios under different CO2 acquisition methods and carbon taxes. The results show that the breakeven oil price of RCE is 29.4 $/barrel for carbon tax and 25.6 $/barrel for no tax. The recommendable CO2 injection volume of RCE is higher than 33.5% HCPV for tax and 22.8% HCPV for no tax. Under the current range of CO2 market price, RCE is more profitable when the capture investment is less than 80.9 M$ for carbon tax and 40.7 M$ for no tax. Compared with traditional EOR production, RCE project reduces carbon emissions by about 54.7%, indicating its technical feasibility, economic and environmental advantages in practical engineering.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:energy:v:225:y:2021:i:c:s0360544221005466
    DOI: 10.1016/j.energy.2021.120297
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    1. Chen, Siyuan & Liu, Jiangfeng & Zhang, Qi & Teng, Fei & McLellan, Benjamin C., 2022. "A critical review on deployment planning and risk analysis of carbon capture, utilization, and storage (CCUS) toward carbon neutrality," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    2. Sara Yasemi & Yasin Khalili & Ali Sanati & Mohammadreza Bagheri, 2023. "Carbon Capture and Storage: Application in the Oil and Gas Industry," Sustainability, MDPI, vol. 15(19), pages 1-32, October.
    3. Zhang, Kai & Lau, Hon Chung & Bokka, Harsha Kumar & Hadia, Nanji J., 2022. "Decarbonizing the power and industry sectors in India by carbon capture and storage," Energy, Elsevier, vol. 249(C).
    4. McLaughlin, Hope & Littlefield, Anna A. & Menefee, Maia & Kinzer, Austin & Hull, Tobias & Sovacool, Benjamin K. & Bazilian, Morgan D. & Kim, Jinsoo & Griffiths, Steven, 2023. "Carbon capture utilization and storage in review: Sociotechnical implications for a carbon reliant world," Renewable and Sustainable Energy Reviews, Elsevier, vol. 177(C).
    5. Fengyuan Yan & Xiaolong Han & Qianwei Cheng & Yamin Yan & Qi Liao & Yongtu Liang, 2022. "Scenario-Based Comparative Analysis for Coupling Electricity and Hydrogen Storage in Clean Oilfield Energy Supply System," Energies, MDPI, vol. 15(6), pages 1-28, March.

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