The CO2 Enhanced Oil Recovery Story Tim Bradley President Kinder Morgan CO2 Company
Outline 1. CO2 Enhanced Oil Recovery Overview Oil Field Development Sequence US: Current and Future 2. A Deeper Look How it works How its done 3. Safety and Environmental Our Track Record
A Representative Oil Field Development Sequence Primary Secondary CO2 EOR 16 14 12 1 8 6 4 2 15-25% OOIP 1-15% OOIP 1-2% OOIP 5 1 15 2 25 3 35 4 45 5
1 75 5 25 US Active CO2 EOR Projects 125 Domestic CO2 EOR Achievements Over the past 3+ years, the oil and gas 1984 1988 1992 1996 2 24 28 industry has: US EOR CO2 Deliveries, i MMCF/d 3 2 Wyoming N. Dakota Mississippi Produced and injected more than 1.8 TCF of CO2 from 7 sources. 1.2 TCF of which came from sources that otherwise would have been vented. 1 Constructed over 31 miles of CO2 Permian Supplies mainline pipeline systems. 1972 1977 1982 1987 1992 1997 22 27 Produced in excess of 1.2 billion barrels of US EOR Oil Production, B/D incremental oil. 8 Other Gas 6 4 Chemical Thermal 2 CO2 1984 1988 1992 1996 2 24 28 Secured operating practices of: Corrosion management, Metallurgies, Elastomers Separation, Dehydration and Hydrocarbon extraction Compression/pumping Injection and production well completion and operation Sources: Oil & Gas Journal, Personal Knowledge
U.S. CO2 EOR Business Currently injecting 2.5 BCF/d Rockies potential demand: -1.7 BCF/D Illinois i potential ti demand: d -.4 BCF/D Washington Oregon California Nevada Idaho Utah Montana LaBarge Wyoming Colorado Great Plains Coal Plant North Dakota South Dakota Nebraska McElmo Dome Sheep Mountain Arizona New Mexico Kansas Oklahoma Bravo Dome Texas Minnesota Iowa Wisconsin i Missouri Arkansas Louisiana Illinois Michigan Indiana Kentucky Tennessee Mississippi Alabama Ohio Georgia New York Maine Potential New U.S. Hampshire EOR Vermont CO 2 Consumption: Pennsylvania W. Virginia i i Jackson Dome 2 p Massachusetts Rhode Island Connecticut 13.5 New Bcf/d Jersey Delaware or Maryland 26GTCO/yr.26 2 Virginia North Carolina Domestic EOR could reduce U.S. emissions by 4% South Carolina CA potential demand: -2.9 BCF/D Florida Source: ARI/DOE Feb 26 PETRA 12/1/99 1:1:2 AM TX, LA potential demand: 1.3-8.5 BCF/D
CO2 EOR Expected to be ~25% of US Oil Production by 23 Million Barrels per Day 7 6 5 4 3 2 1 CO2 EOR 26 211 216 221 226 Source: AEO 28
- EOR Process Diagram CO2 is produced from 8,5 wells in SW Colorado 7 FEET High Pressure & High Purity CO2 is di dried dand dfurther compressed until in supercritical phase ( liquid ) CO2 is then pumped to 22 lbs pressure into a 3 pipeline system CO2 is re-injected into the oil bearing formation ~ 35 9 Below the surface CO2 and the entrained oil from producer wells in the oil field CLOSED SYSTEM - Oil is separated and the CO2 is returned to the injection wells CO2 is metered into the oil field -
CO 2 Enhanced Oil Recovery: Process Schematic CO 2 mixes with oil much like turpentine cleans paint from a brush Inter-phase mass transfer typically yields NGL rich gas production CO2 produced with the oil is captured, dehydrated, and reinjected - a closed system Chase water injection helps control mobility and gas recycle
CO 2 Enhanced Oil Recovery: Animation
A Representative* Permian Basin CO2 EOR Project 3 25 2 15 1 5 CO2 Purchases Recycled CO2 Water W/G ~ 1.4 ~16 Mcf/b ~6 Mcf/b 5 1 15 2 25 3 Volumetric Summary Original Oil In Place: 6 MMB 67 MMB EOR 11% 4 BCF purchased Net CO2 Utilization 6 Gross CO2 Utilization 15.8 Economic Summary Capex: 8% of oil price per bbl CO2 Cost: 2.5% of oil price per MCF Payout: 5 years IRR: 2% 16 14 12 1 8 6 4 2 Oil Production 5 1 15 2 25 3 12 1 8 6 4 2-2 -4 Cum. Cash Flow Cum. Disc. Cash Flow Annual Cash Flow 2 4 6 8 1 12 14 16 18 2 22 24 Year Not necessarily typical
Environmental, Health, and Safety: Myths: CO2 is toxic Its in the air we breathe and does not explode The operating risks include corrosion, high pressure, and asphyxiation all of which have been successfully controlled by the industry for nearly 4 years CO2 EOR results in significant releases to the environment Our EOR operations emitted.3% of the total volume of CO2 we handled in 28 Key causes for releases: Routine maintenance and power outages caused by storms Our source operations emitted.4% of the volume we produced in 28 Key cause for releases: Routine maintenance Our reportable emissions on our 13 miles of pipe in 28 was.35% (equivalent to emissions from 2 vehicles during the same time frame)
CO2 Enhanced Oil Recovery - Recap It has reduced oil imports, and could generate ~25% of domestic production in 2 decades Uses existing footprint versus green-field developments The environmental and safety track record in source, pp pipeline and EOR operations is commendable CO2 releases to the atmosphere represent a tiny percent of the total volume involved The operating practices to drill and complete wells, install needed piping, and construct required gas processing facilities has been successfully deployed by the industry for nearly 4 years The technologies developed since the 7 s have paved the way for CCS