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Drilling and production - Economics show CO2 EOR potential

Oil and Gas Journal

By:
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Abstract

CO2 EOR may be the key to recovering hundreds of millions of bbl of trapped oil from the mature fields in central Kansas. A simple model aided in assessing the economics of CO2 EOR for central Kansas and the Midcontinent. The model used CO2 Prophet, a DOE freeware reservoir numerical simulation program, to determine reservoir performance, including injected and produced fluid rates, and CO2 utilization. Economic parameters, e.g., oil price, CO2 costs, capital costs, net revenue interest, production taxes, and lease operating expenses, are typical for anticipated conditions in the region and present price climate. Preliminary economic analysis shows that CO2 EOR should give an internal rate of return (IRR) > 20%, before income tax, assuming oil sells for $20/bbl, CO2 costs $1/million cu ft, and gross utilization is 10 million cu ft of CO2/bbl of oil recovered. If the CO2 is reduced to $0.75/million cu ft, an oil price of $17/bbl yields an IRR of 20%. Reservoir and economic modeling shows that IRR is most sensitive to oil price and CO2 cost.

Additional Publication Details

Publication type:
Article
Publication Subtype:
Journal Article
Title:
Drilling and production - Economics show CO2 EOR potential
Series title:
Oil and Gas Journal
Volume
98
Issue:
23
Year Published:
2000
Language:
English
Larger Work Type:
Article
Larger Work Subtype:
Journal Article
Larger Work Title:
Oil and Gas Journal
First page:
37
Last page:
41
Number of Pages:
5