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

  • Focus Area Climate Change Policies and Governance Climate Change Policies and Governance
  • Type Discussion paper
  • Date 29 January 2018
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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 Mr. Ward has worked in all aspects of the energy industry from summer jobs on seismic rigs, to designing refineries,… Mr. Ward has worked in all aspects of the energy industry from summer jobs on seismic rigs, to designing refineries, upstream field development, consulting and strategy work, and now high-impact academic analysis of issues facing the energy system. Much of Mr. Ward’s work in recent years has focused on CCUS-related topics including upstream carbon intensity, CO2-EOR, blue hydrogen, hydrocarbon producer strategy in a carbon-constrained world, and blockchain-based carbon tracking and trading.

Expertise

  • Oil Markets
  • Upstream
  • Carbon
  • CCUS
  • Hydrogen
  • Technology
  • Strategy and Consulting

Publications See all Colin Ward’s publications

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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