Residual Oil Zone “Fairways” and Discovered Oil Resources: Expanding the Options for Carbon Negative Storage of CO2

Abstract

Recently completed geophysical and reservoir engineering-based investigations have identified the presence of large Residual Oil Zone (ROZ) “fairways” in the Permian and numerous other U.S. and international oil basins. These ROZ “fairways” offer a third geologically viable option, in addition to saline formations and mature oil fields, for storing CO2 captured from industrial sources.The benefits of pursuing ROZ “fairways” as a third geologic option for storing CO2 are many. First, the ROZ “fairways” offer a carbon negative option for storing CO2, where the carbon content of the injected CO2 significantly exceeds the carbon content of the by-product oil recovered as part of injecting CO2. Second, the “fairways” are extensive and continuous, with an established upper seal and have a massive volume of reservoir space for secure, long-term CO2 storage. Third, for much of the ROZ resource, the production of by-product oil will cover the costs of installing and operating the CO2 storage system while also providing revenues for covering a portion of the costs of capturing CO2. Finally, the ROZ “fairways” are located outside and beyond the structural closure of existing oil fields, providing new, accessible geologic settings for storing CO2.In summary, the identification and characterization of ROZ fairways adds a significant new option for efficiently and economically storing CO2. Our discussions with scientists from numerous other countries, namely Australia, Colombia, Kuwait, Lithuania, Norway and Saudi Arabia, confirm that ROZ “fairways” are not unique to U.S. oil basins, but are likely a major international phenomena that can support expanded application of CO2 capture, utilization and storage.