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Economics show CO2 EOR potential in central Kansas

Oil and Gas Journal

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Abstract

Carbon dioxide (CO2) enhanced oil recovery (EOR) may be the key to recovering hundreds of millions of bbl of trapped oil from the mature fields in central Kansas. Preliminary economic analysis indicates that CO2 EOR should provide an internal rate of return (IRR) greater than 20%, before income tax, assuming oil sells for $20/bbl, CO2 costs $1/Mcf, and gross utilization is 10 Mcf of CO2/bbl of oil recovered. If the CO2 cost is reduced to $0.75/Mcf, an oil price of $17/bbl yields an IRR of 20%. Reservoir and economic modeling indicates that IRR is most sensitive to oil price and CO2 cost. A project requires a minimum recovery of 1,500 net bbl/acre (about 1 million net bbl/1-mile section) under a best-case scenario. Less important variables to the economics are capital costs and non-CO2 related lease operating expenses.

Additional Publication Details

Publication type:
Article
Publication Subtype:
Journal Article
Title:
Economics show CO2 EOR potential in central Kansas
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:
40
Number of Pages:
4