ECONOMIC EVALUATION OF PROJECTS OF CO2INJECTION INTO OIL FIELDS

Abstract

This paper reviews the economic side of such environmentally significant projects as CO 2 storage in depleted oil fields. Despite the fact that the technology of enhanced oil recovery injection of carbon dioxide already in use abroad (for example, in the United States and Canada), to date there is still no methodology for determining the economic impact of CO 2 -EOR methods. The present study proposes a model the injection of CO 2 into the oil reservoir and evaluate the cost effectiveness of such projects on the basis of the developed technique. In the article a methodology to calculate CO 2 enhanced oil recovery efficiency is presented, as well as its application to model CO 2 injection in case of two oil fields. The dynamics of cumulative oil production and CO 2 cut since the start of injection is studied. Sensitivity analysis for cumulative oil production from a number of physical and chemical properties of the reservoir is carried out. A comparative analysis of necessary changes in infrastructure equipment depending on whether CO 2 injection is the 2 nd or the 3 rd method of enhanced oil recovery is also presented in the paper. The classification and calculation methodology of emerging capital and operational costs associated with CO 2 -EOR projects are developed. For two selected projects NPV and breakeven CO 2 price subject to market oil price are estimated. General conclusion on the principal possibility of a CO 2 -EOR project to pay off is drawn, and the limits for oil and CO 2 prices that make the project economically efficient are stated.