Life-Cycle Analysis of CO2 EOR on EOR and Geological Storage through Economic Optimization and Sensitivity Analysis Using the Weyburn Unit as a Case Study

Abstract

At the global, national, and subnational levels, many policies have been created or are in the process of development to deal with greenhouse gas (GHG) emissions, particularly CO2. CO2 enhanced oil recovery (EOR) is an option available to governments and industry to help meet emission reduction levels. In addition to increasing the production of oil, the CO2 can be stored in the oil reservoir for a very long period of time. However, CO2 capture and CO2 EOR operation result in significant costs and energy penalties, for example, CO2 capture from a point source, transportation to the site of use, and recycling produced CO2. This article evaluates the life cycle of CO2 storage from delivery to the oil field through the production, transportation, and refining of the oil and identifies opportunities for optimization. Information from the IEA GHG Weyburn Monitoring and Storage Project is used to provide baseline information for the storage of CO2. The value of this life-cycle study lies in the development of an understanding of the “carbon” economics of the EOR process and the impact on net storage of changes to the value of different components in the chain. These results provide a mechanism whereby environmental consequences can be evaluated within economic decision-making.