Plains CO 2 Reduction (PCOR) Partnership Update

Transcription

1 Plains CO 2 Reduction (PCOR) Partnership Update New Horizons Oil and Gas Conference Rapid City, South Dakota October 7, 2011 Darren Schmidt Senior Research Advisor

2 Presentation Outline BC AB SK MB Key results of PCOR Partnership Activities thus far MT ND MN Current and planned activities WI SD NE IA MO

3 U.S. Department of Energy Regional Carbon Sequestration Partnerships (RCSPs)

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5 PCOR Partnership What are we doing? The PCOR Partnership is assessing and validating the technical and economic feasibility of capturing and storing (sequestering) carbon dioxide (CO 2 ) emissions from stationary sources in the central interior of North America.

6 Sources 927 stationary sources Total CO 2 emissions: million tons/yr 9% of U.S. and Canada population 8% of U.S. and Canada gross domestic product (GDP) 12% of U.S. and Canada anthropogenic CO 2

7 Field Validation Tests

8 Key Results Unminable lignite may represent CO 2 sequestration targets in the PCOR Partnership region, but more research needs to be done prior to large-scale demonstration and commercialization. Early exploration efforts do not support commercially viable coalbed methane potential in North Dakota lignite seams.

9 Key Results (cont.) The pinnacle reef structures employed in the Zama project represent significant opportunities for both enhanced oil recovery (EOR) and CO 2 storage. Monitoring, verification, and accounting (MVA) programs can be developed that are unobtrusive to commercial operations and are both technically and cost effective.

10 Key Results (cont.) Small--type) CO 2 injection into deep carbonate systems is technically feasible and has the potential to result in commercially viable EOR operations in the future. Tertiary-phase EOR is the primary near-term opportunity for managing CO 2 in the PCOR Partnership region.

11 Key Results (cont.) EOR demand for CO 2 exceeds near-term supply. Natural gas-processing facilities represent a key nearterm source of CO 2. If CO 2 supply surpasses EOR demand, saline aquifers are available throughout the region to meet sequestration demand.

12 Key Results (cont.) Outreach activities are critical to the success of CO 2 storage projects and must be conducted at every level, from local communities to nationwide venues. Five videos Over a dozen fact sheets Public Web site with monthly updates 65-page regional atlas Over 20 technical reports

13 Key Results (cont.) Outreach activities are critical to the success of CO 2 storage projects. Outreach activities must be conducted at every level, from local communities to nationwide venues. Regulatory and legal issues are constantly changing in this topic area and represent key challenges to CO 2 storage technologies.

14 Commercial-Scale Demonstration Tests Saline Formation Demonstration Sequestration/EOR Demonstration

15 Fort Nelson Carbon Capture and Storage (CCS) in a Deep Saline Formation Drill rig and camp site near Fort Nelson, British Columbia, Canada

16 Fort Nelson Current Status An exploration well was drilled spring The well was reentered and additional logs were collected in the winter drilling season The PCOR Partnership has provided a preliminary risk management plan (RMP), and we are developing an integrated RMP, modeling, and MVA program.

17 Bell Creek EOR Project Bell Creek

18 Bell Creek Field Expected to yield ~35 million incremental bbl ~240 Bcf of CO 2 sequestered

19 PCOR Partnership Status We are moving ahead with both the Bell Creek and the Fort Nelson demonstrations.

20 Regional Characterization Activities Detailed investigation into the CO 2 storage and EOR potential of the Rival Field in north-central North Dakota Joint U.S.Canada assessment of the basal Cambrian aquifer units of the Western Canadian Sedimentary Basin and Williston Basin. Investigation of potential CO 2 storage capacity of the Cedar Hills Formation in western Nebraska.

21 PCOR Partnership Outreach Support 65-page regional sequestration atlas Fact sheets on key topics and projects A variety of PowerPoint presentations Public Web site with streaming and downloadable materials Sequestration documentaries (television broadcasts, Web streaming, and DVDs) Video clips Technical reports

22 Monitoring Regulatory Developments Staying abreast of the latest regulatory developments is of the utmost importance for the PCOR Partnership. Examples: Facilitated legislative action and subsequent rule making by state of North Dakota. Underground Injection Control (UIC) Program. Geological CO 2 Sequestration Task Force and Pipeline Transportation Task Force. Participate in the Presidential Interagency Task Force on CCS.

23 New Report Current Status of CO 2 Capture Technology Development and Application Provides an overview of the current status of carbon capture technology development and application. Provides an overview of the technical basis for each separation technique and information on nearly 100 technologies and/or research efforts.

24 Click Carbon to edit Master Management title style A carbon management strategy is often required and always desirable for permitting major industrial sources of CO 2 emissions. Carbon management options vary significantly based on plant type, economics, geography, and geology.

25 Carbon Management Other Considerations Regulatory uncertainty Legal issues, chain of custody Pending legislation Public acceptance Carbon markets

26 Conclusion BC AB SK MB The PCOR Partnership region has huge CCS potential! MT ND MN WI SD NE IA MO

27 Thanks!! Darren Schmidt Senior Research Advisor Ed Steadman Deputy Associate Director for Research