THE TRANSITION FROM ENHANCED OIL RECOVERY (EOR) TO CARBON CAPTURE AND SEQUESTRATION (CCS)

Transcription

1 THE TRANSITION FROM ENHANCED OIL RECOVERY (EOR) TO CARBON CAPTURE AND SEQUESTRATION (CCS) Dana M Abdulbaqi, Saudi Aramco Carol Dahl, Colorado School of Mines & Luleo Technical University Mohammed AlShaikh, Saudi Aramco November 2017

2 2 Outline Motivations Workflow and Objectives Methodology Reservoir Simulation Model Dynamic Optimization Model Results Conclusions Future Work 2

3 Motivation 3 CO 2 -EOR s commercial viability as a sequestration option: Industry s Expertise Existing Infrastructure Technical estimates of CO 2 sequestration potential Opportunity for development of CO 2 Market Carbon Capture Facilities = Suppliers CO 2 -EOR Projects = Demanders How CO 2 -EOR producer s will co-optimize: Oil Recovery & CO 2 Sequestration 3

4 4 Motivation Leach, Mason and van t Veld, 2011 Co-Optimization of Enhanced Oil Recovery and Carbon Sequestration. Only study found that uses a dynamic optimization model to address the co-optimization issue. Analysis is limited to the productive life of the field. van t Veld, K, Wang, X, Alvarado, V, 2014 Economic Cooptimization of Enhanced Oil Recovery and CO 2 Sequestration. Make use of dynamic reservoir simulation model to enhance technical assumptions. 4

5 5 Stage-2: CO 2 Sequestration Maximizing NPV of the operator during CO 2 sequestration activities subject to resource constraints. Stage-1: CO 2 -EOR Maximize NPV of the operator during CO 2 -EOR subject to resource constraints and tax policy. Reservoir Simulation Dynamic Reservoir Simulation Model was built to mimic CO 2 -EOR process using WAG injection and estimate sequestration capacity. δ(c(t)) Equations Reservoir simulation model output was used to construct equations used in the dynamic optimization model. Dynamic Optimization A 2-stage dynamic optimization model was developed to track total carbon movements during the CO 2 -EOR and beyond oil production activities.

6 6 Optimal Control: Stage 1 CO 2 -EOR T max π = න e rt 0 p βτ q o p t + τq c s (t) [ w NR + τ q c NR (t) c w CAP q CAP (t) w r q c r (t) F dt p βτ q p o ( t) Revenues from Oil Production τq c s (t) Revenues From Sequestration w NR + τ q c NR (t) Costs of Natural CO 2 Usage c w CAP q CAP (t) Costs of Captured CO 2 Usage w r q c r t Costs of Recycling CO 2 F Costs not related to CO 2 purchase and handling 6

7 ሶ 7 Optimal Control: Stage 1 CO 2 -EOR Constraints: T max π = න e rt 0 p βτ q o p t + τq c s (t) [ w NR + τ q c NR (t) c w CAP q CAP (t) w r q c r (t) F ሶ Oil(t) = q p o t Natural CO 2 (t) = q NR t Sequestration(t) ሶ = q c s t c dt 7

8 8 Optimal Control: Stage 2 CO 2 Seq. T max π = න e rt p p q c s c t w INJ c t F 2 dt t 1 (p p )q s c c t Revenues from selling pore space w INJ c t Costs of CO 2 injection F 2 All other costs Constraint: ሶ Sequestration(t) = q s c c t Sequestration T 1. 2 q o p t t 1 0 8

9 9 Results Using various combinations of oil price (P) and tax levels (τ) to solve for the optimal time paths of: CO 2 usage from each source q c c NR (t) & q CAP CO 2 injection rate c t CO 2 sequestration q s c (t) Oil production q p o (t) Timing of the switch from Stage 1 to 2 Termination Time Tax Threshold = w CAP w NR = $20 tco 2 (Stage 1) t 9

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13 14 Conclusions Our model assists in Tracking total carbon movements under a tax policy. We observe Transition from usage of natural to captured CO 2. Incentive to continue CO 2 sequestration beyond oil production. Reduce net CO 2 emissions resulting from oil production. Minimal Impact on Oil Production 14

14 15 Future Work Co-manage of oil production and reservoir capacity while varying: Market Parameters Reservoir Parameters Upscale to regional modeling effort Allocation of natural and captured CO 2 volumes across a portfolio of producing assets Impacts on co-management of reservoir capacity & oil production Mechanics of supply and demand of CO 2 15

15 THE TRANSITION FROM ENHANCED OIL RECOVERY (EOR) TO CARBON CAPTURE AND SEQUESTRATION (CCS) Dana M Abdulbaqi, Saudi Aramco Carol Dahl, Colorado School of Mines & Luleo Technical University Mohammed AlShaikh, Saudi Aramco November 2017

16 17 How CO 2 -EOR Works? 17

17 18 Profits Total Profits Over Both Stages Tax Level Price Level