Managing guncertainty in Geologic Storage. Dwight Peters Schlumberger Carbon Services

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1 Managing guncertainty in Geologic Storage Dwight Peters Schlumberger Carbon Services

2 Schlumberger 2 Oilfield Services Drilling & Completion Seismic Evaluation Services Modeling & Interpretation Project Management Founded Revenue $23B 2007 R&D > $619M Jan 2008 Market Cap: $95B Headcount: 70,000 in 80 countries Carbon Services CO2 storage planning Storage design & construct Storage operations Started 2001, U.S. in 2005 An Investment US Locations

3 DOE Regional Partnerships 3

4 National Carbon Atlas 4

5 Stationary Emissions by Partnership 5

6 North American CO2 Sources 6

7 Potential Storage Reservoirs 7 Depleted oil & gas 84 Gt Unmineable coal Gt Basalts?? Gt Saline aquifers Gt

8 Mt. Simon Thickness IL Basin Mt. Simon Thickness, Regional Thickness in feet Less than t to ,000 1,000 to 1,500 1,500 to 2,000 Greater than 2,

9 Geological Monitoring and Verification 9

10 Location of Geological Risks 10

11 Risk Management in all Phases 11 Characterization Design Construction Operation Old wells Verification Injection

12 Storage Fundamentals Capacity: (match to source & estimate plume shape) bulk volume (seismic) X porosity (logs) X storage factor Injectivity (how many wells) permeability from core, log & well test Containment (caprock integrity, fractures, wellbore integrity, faults) 3000 ft 12? CO 2 Post injection 5 miles 3500 to 9000 ft 500MW ~ 100MT ~ 100square miles

13 Storage Fundamentals The Big Picture 13 Capture plant plot s 500MW ~ 100MT ~ 100square miles 10 Miles

14 Oilfield Activity in North America 14 Inject 41 MtCO2/yr for enhanced oil recovery Output of six 1000-Mw coal-fired plants Moved safely hundreds of miles via pipeline 50 oilfields that produce >150,000 bbl fluid per day Output of a 1000-Mw coal-fired plant No huge technical barriers to geological storage of CO2. But...monitoring in EOR is for the oil, not the CO2.

15 Managing Uncertainty 15 Country Regional 00 ft ft. Local miles 10 miles 10 miles 300 miles. 10 miles

16 Using Data From Wells 16

17 Commercial Scale Storage Timeline with Cost & Uncertainty 17 Possible site Probable site Proven site High Uncertainty $5-$10 / ton? rtainty Tota al cost & unce Prelim. study Data acquisition Total cost Detailed characterization Model driven Design Monitoring plan Validation cents / ton Construction Includes time for plant construction Injection & monitoring Model update Living model Prediction Closure Equalization Long term Environmental monitoring Low 1 yr Time 2-3 yrs 5-7yrs Performance & Risk (Functions) Capacity, Injectivity, Containment >>>> (Stakes) HSE, Cost, Image 30 yrs 50 yrs 100+

18 What Resources Will Be Needed? 18 People & Technology People Geology Geophysics Reservoir Engineer Drilling Engineer Petrophysics Completion Engineer Geomechanics Geochemistry Hydrogeology Economics HSE Injection + CO2 Technology Seismic Services Wellbore Integrity Evaluation Drilling & Completion Cementing Logging, Testing & Sampling Lab Analysis Data Processing Modeling & Prediction Data Management Monitoring Project Management Tools for Team Integration

19 Early Success 19 Pick the Right Site Non-complex, depth, porosity, perm, extent, structure, caprock Some existing wells, but not many Access and capability for: 3-D seismic acquisition, logs, core, fluids, background Use the Right Technology Proper density, resolution, noise limits, area of review Value equivalent uncertainty reduction Has impact on performance and risk Properly Integrate t the Data Requires an experienced, skilled, multi-disciplinary team. Unified modeling environment Shared earth model, easily updatable - Living i

20 Summary 20 Non-technical factors are the key to progress Clear regulatory guidelines and and long term liability protection are needed for commercial involvement. Resource requirements will be large Uncertainties can be managed with technology Technology must be valued Proper baseline characterization ti is the key to reducing cost number of wells, frequency of monitoring, public acceptance