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

Principal Fellow- Oil & Gas 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

Visiting Researcher- Climate & Sustainability Wolfgang Heidug is an expert in low-carbon energy technology policy, with a specialized focus on the science and technology of…

Wolfgang Heidug is an expert in low-carbon energy technology policy, with a specialized focus on the science and technology of carbon capture and storage (CCS). He currently serves as a Visiting Researcher at KAPSARC, having previously been a Senior Research Fellow there from 2015 to 2020. Before joining KAPSARC, Wolfgang was a Senior Adviser at the International Energy Agency (IEA) in Paris, where he contributed to policies related to CCS. Wolfgang’s career spans over two decades with the upstream sector of Shell International in The Hague, where he held various roles, including General Manager for CO2 Policy. He holds a Ph.D. in Engineering from Brown University, along with M.A. degrees in Physics and Economics from German universities.

Expertise

  • Low-carbon technology incentives and regulatios
  • Climate change policy
  • Carbon capture and storage

Publications See all Wolfgang Heidug’s publications

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