Carbon dioxide; bury it or use it?

Transcription

1 1 Carbon dioxide; bury it or use it? The UK s CO 2 -EOR/CCS paradox Jon Gluyas & Simon Mathias Centre for Research into Earth Energy Systems, Durham University, Durham, DH1 3LE, UK IAEEOR 33 rd Annual Symposium, Regina, Saskatchewan, Canada, August j.g.gluyas@durham.ac.uk gluyas@durham ac uk

2 Outline 2 CO 2 EOR in Texas & sourcing the CO 2 CO 2 in the UK waste or commodity UK emissions reductions & CCS Depleted fields & saline aquifers Decline of UK fossil fuel production Arresting decline CO 2 EOR & EGR Assembling the UK s CCS value chain CCS & CO 2 EOR a UK paradox? 2

3 CO 2 EOR Texas 3 Initiated 1970s in response to oil crisis Texas at forefront of technology & leads the way today Permian Basin in NW Texas is the primary injection area 1000s km 32 pipeline & associated infrastructure developed Natural & anthropogenic CO 2 sources used

4 4 CO 2 in the UK a waste! The UK has committed to reduce its emissions (largely CO 2 ) by 80% by 2050 To be achieved largely through CCS UKSAP quantified storage resource Storage resource properties well known UK CCS competition Based on 200 North Sea pressure cells

5 CO 2 in the UK a commodity? 5 CO 2 -EOR 2007 Miller 50-60mmbbl incremental not sanctioned Figure from Hughes, 2007 DEVEX MEETING Aberdeen

6 CO 2 in the UK a commodity? 6 CO 2 -EOR 2009* (Gluyas) UK potential 3-8bn bbl Each h project years over 30 year period 2012** (DECC) Technical potential WOS NNS EOR Process Incremental Recovery (MMstb) Total Recovery NNS CNS WOS IS (MMstb) CNS CO2 miscible IS *Gluyas, 7 th Annual EOR Carbon Management Workshop Houston **DECC PILOT Scheme update May 2012

7 The UK CCS Competition 7 Demonstration project by 2020 Capture > compress > transport > inject > store > monitor Cost > cost > cost > cost > cost > cost Power generators & other industry Imperative to capture CO 2 and reduce emissions Transportation companies Eager to do business Storage companies Are few (or zero!) and lack track record Are uncomfortable with remuneration process Are concerned about long-term liabilities APGTF, 2011

8 UK Continental Shelf Pore Space 8 Five major provinces 5 1 Viking Graben 2 Central Graben 3 Southern North Sea 4 East Irish Sea 2 5 Atlantic Margin & adjacent shelfal areas 4 3 1

9 UK Continental Shelf Pore Space 9

10 UK Continental Shelf Pore Space Gt of storage space (P50) ~600 potential sites (~40% depleted fields) Gas fields production history known Oil fields production & injection histories known Know much less about injection of CO 2 Injectivity Reactivity Integrity (geochem & geomechanical) Displacement efficiency etc... MONITOR, MONITOR, MONITOR

11 UK Primary Energy Production 11

12 UK Primary Energy Production 12 Coal production

13 UK Primary Energy Production 13 Coal production

14 UK Primary Energy Production 14 Coal production We are in decline!

15 15 Falling Production & Facilities Abandonment Maureen Ninian Jayasekera & Goodyear SPE 75171

16 Oil Production Shortfall 16 Shortfall in 2010 ~15 mm tonnes Equivalent to ~300,000 bopd

17 We re Doomed! 17 Petroleum production << consumption Energy prices will have CCS premium

18 CO 2 EOR Potential * (Gluyas) UK potential 3-8bn bbl Each project years over 30 year period 2012** (DECC) Technical potential WOS NNS EOR Process Incremental Recovery (MMstb) Total Recovery NNS CNS WOS IS (MMstb) CNS CO2 miscible IS *Gluyas, 7 th Annual EOR Carbon Management Workshop Houston **DECC PILOT Scheme update May 2012

19 19 EGR potential in UK SNS 19 A few gas fields Barque GIIP 3020bcf RF 45% Boulton GIIP 206bcf RF 69% Camelot GIIP 251bcf RF 90% Clipper GIIP 1171bcf RF 64% Indi GIIP 5600bcf RF 84% Leman GIIP 14020bcf RF 91%

20 The CCS & CO 2 EOR Value Chain 20 Capture > compress > transport > inject > (store) > monitor UK myths We don t capture CO 2 We don t transport long distance (& inject) fluids for EOR Our facilities have the wrong metallurgy...all are untrue

21 Capture, Transportation, Injection & Facilities Morecambe, Magnus & Miller 21

22 Balancing the Books 22 1bbl of oil contains 0.42 t CO 2 after combustion 1bbl produced by CO 2 -EOR requires between 0.4 and 0.2 t CO 2 At best the process is carbon neutral At worst the process is halving emissions

23 CO 2 EOR Heritage 23 The CO 2 production from eastern UK could power CO 2 -EOR in the North Sea for years per project, over ~30 year period It could deliver: Improved security of oil (& gas) supply Infrastructure usable for CCS Know-how throughout the value chain including cost effective monitoring i Increased tax revenues over current projections Deep aquifer storage area