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Abstract

Storing carbon dioxide (CO2 ) in oil reservoirs as part of CO2 -based enhanced oil recovery (CO2 -EOR) can be a cost-effective solution to reduce emissions into the atmosphere. In this paper, we analyze the economics of this option in order to estimate the amount of CO2 that could be profitably stored in different regions of the world. We consider situations in which the CO2 -EOR operator either purchases the CO2 supplied or is paid for its storage. Building upon extensive data sets concerning the characteristics and location of oil reservoirs and emission sources, the paper focuses on opportunities outside North America. Using net present value (NPV) as an indicator for profitability, we conduct a break-even analysis to relate CO2 supply prices (positive or negative) to economically viable storage potential.

Authors

Colin Ward

Colin Ward

Research Fellow Colin is the interim director of the Markets and Industrial Development program. He has worked in the energy industry for…

Expertise

  • Energy cost (CAPEX/OPEX)
  • economics
  • environment and labour

Publications See all Colin Ward’s publications

A Short-Term Forecasting Model for Brent Oil Prices

A Short-Term Forecasting Model for Brent Oil Prices

Storing carbon dioxide (CO2 ) in oil reservoirs as part of CO2 -based enhanced oil…

October 20, 2019
Enhanced Oil Recovery and CO2 Storage Potential Outside North America: An Economic Assessment

Enhanced Oil Recovery and CO2 Storage Potential Outside North America: An Economic Assessment

Storing carbon dioxide (CO2 ) in oil reservoirs as part of CO2 -based enhanced oil…

January 29, 2018
Wolfgang Heidug

Wolfgang Heidug

Senior Research Fellow Wolfgang is an expert on low-carbon energy technology policy with in-depth knowledge of the science and technology of CO2 capture…

Expertise

  • Low-carbon energy technology and policy

Publications See all Wolfgang Heidug’s publications

A Mechanism for CCS in the Post-Paris Era

A Mechanism for CCS in the Post-Paris Era

Storing carbon dioxide (CO2 ) in oil reservoirs as part of CO2 -based enhanced oil…

April 7, 2019
Policy Lessons From China’s CCS Experience

Policy Lessons From China’s CCS Experience

Storing carbon dioxide (CO2 ) in oil reservoirs as part of CO2 -based enhanced oil…

July 2, 2018
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