Potential of CO2-EOR for Near-Term Decarbonization

Vanessa Núñez-López,Emily Moskal

doi:10.3389/fclim.2019.00005

Abstract

This paper provides an overview of carbon dioxide enhanced oil recovery (CO2-EOR) and its ability to reduce greenhouse gas (GHG) emissions (even to the point of negative emissions), the role it needs to play in the challenge of decarbonization, and the need to scale up implementation and deployment in order to meet climate goals. Limitations in current legal and regulatory frameworks for CO2 injection are explored for both economic and environmental purposes, as well as the economic implications of combining CO2-EOR with geologic carbon storage. Results from a recent study, which demonstrate that all CO2-EOR operations produce negative emissions oil during the first several years of production, are analyzed in the context of the urgency of climate change mitigation. Acknowledging that fossil fuels currently provide the energy foundation upon which global societies function, and that a sudden shift in the composition of that foundation can potentially destabilize the global economy and key elements of modern society, we bring CO2-EOR to the fore as it can supply reduced carbon oil to support the current energy foundation as it steadily transitions toward decarbonization. In order to meet this urgent transition, greater fiscal and regulatory incentives are needed to begin scaling CO2-EOR with storage around the globe. A viable and large-scale CO2-EOR/storage industry depends upon significant capital investments for CO2 capture and transportation infrastructure. Policy consistency and predictability, combined with targeted subsidies, will help to achieve this goal.

Highlights

Carbon capture and sequestration (CCS), a technology where carbon emissions are captured at a point source, transported, and injected deep underground into a safe, permitted geologic site for long term storage, was included in the portfolio of climate change mitigation options released in 2005 by the Intergovernmental Panel on Climate Change (IPCC) (IPCC, 2005)
As opposed to carbon storage generally being seen as a waste disposal activity when done in isolation of market activities, carbon storage paired with EOR can be a profitable activity that reduces greenhouse gas emissions
The Work Group recommends that Congress establish federal price stabilization contracts, or contracts for differences (CfD) to reduce price volatility between capture facilities and EOR operators, to make carbon capture eligible for tax-exempt private activity bonds (PABs), and master limited partnerships (MLPs) to provide debt and equity on more favorable terms

Summary

Introduction

Carbon capture and sequestration (CCS), a technology where carbon emissions are captured at a point source, transported, and injected deep underground into a safe, permitted geologic site for long term storage, was included in the portfolio of climate change mitigation options released in 2005 by the Intergovernmental Panel on Climate Change (IPCC) (IPCC, 2005). Carbon dioxide enhanced oil recovery (CO2-EOR) has historically used more captured CO2 than any other industrial process, and is the only commercially established carbon utilization option that provides large-scale permanent storage for captured CO2.

Results

Conclusion