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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

Former Research Fellow Colin was the interim director of the Markets and Industrial Development program. He has worked in the energy industry for… Colin was the interim director of the Markets and Industrial Development program. He has worked in the energy industry for 10 years in various capacities including seismic field work, refinery design and consulting for major international oil companies and national oil companies worldwide. Colin played a major role in several KAPSARC projects, primarily focusing on cost estimation for energy projects and environmental impacts of the global energy industry.

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… Wolfgang is an expert on low-carbon energy technology policy with in-depth knowledge of the science and technology of CO2 capture and storage, Prior to joining KAPSARC he was a senior adviser at the International Energy Agency in Paris. Wolfgang also has over 20 years of experience working with Shell International.

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