Title: An Updated Perspective on CO2 Enhanced Oil and Gas Recovery and CO2 Storage Potential in the Appalachian Basin
Authors: B. Roth, M. Wallace, L. Fritz, F. Cash, and J. Leierzapf, Advanced Resources International, Inc.
Abstract:
The Appalachian basin has a long history of conventional oil and gas production, prior to a more recent boom in unconventional shale gas development. Technological advances with proven demonstration could extend the life of many mature conventional oil and gas reservoirs for both incremental resource production and carbon storage. As legacy conventional resources become depleted, CO2-enhanced oil recovery (CO2 EOR) could extend the economic life of oil reservoirs in the Appalachian basin. Additionally, depleted gas fields could be used to storage captured CO2 emissions from industrial sources. Technological innovations, along with economic incentives for permanent geological CO2 storage through the IRS 45Q tax credit could facilitate the continued use of these legacy assets.
Despite having reservoirs amenable to CO2 EOR and CO2 storage, and numerous industrial sources that could supply captured CO2, the technology has not yet been utilized in Appalachian states. Access to capital for project funding, developing a network of CO2 transportation pipelines, and reworking legacy wells are all major requirements for CO2 EOR and commercial carbon storage projects. However, in order to understand the potential scale of this industry it is important to study the technical and economic viability of CO2 EOR and permanent carbon storage in depleted gas fields in the Appalachian basin.
The study includes an economic evaluation of CO2 EOR potential for oil reservoirs in the Appalachian basin including portions of Virginia, West Virginia, Kentucky, Ohio, Pennsylvania, and New York. The CO2-EOR Prophet finite difference streamtube model provided technically viable CO2 storage and oil production based on reservoir characteristics for existing oil reservoirs. Economic viability for each reservoir was then calculated using the CO2 EOR Cost and Economics Model. Three price cases were used including: (1) a base case with market prices for oil and CO2, (2) a base oil price case with 45Q credit for CO2, and (3) a high oil price case with 45Q credit for CO2.
The study determined overall economically viable oil production and CO2 storage for the three price cases. CO2 EOR reservoirs with an overall project rate of return greater than 10% were considered economically viable. Fields with the most potential were highlighted, including those reservoirs with the greatest potential for incremental oil production and CO2 storage, and reservoirs with favorable project rates of return. Additionally, the top producing gas fields were analyzed for permanent CO2 storage potential. The total depleted pore space available for CO2 storage was calculated, which was then used to calculate the total static CO2 storage volume potential.
The Appalachian Basin has favorable geology for CO2 storage, as well as numerous industrial sources of CO2 emissions that could be captured for CO2 transport and storage. However, the technical and economic viability of this CO2 EOR program with potential permanent CO2 storage in this region has not been studied extensively in recent years, despite the added economic benefit of 45Q tax credits. It is critical to identify reservoirs viable for CO2 EOR near industrial CO2 sources given the cost and complexity of installing CO2 transportation pipelines. This study provides a refreshed look at the economic viability of CO2 EOR and the potential for carbon storage in depleted gas fields in Appalachia.
Biography:
Mr. Benjamin L. Roth is a Project Manager with Advanced Resources International, Inc. He has over 15 years of experience working in the oil and gas, carbon capture and storage, and mining industries. His background is heavily rooted in geologic characterization, operations geology, and project development and implementation.
He currently oversees the development and execution of federal and privately funded contracts related to the organization’s activities in carbon capture and energy resources sectors. Specifically he has led the efforts in developing Class VI applications for clients along with conducting evaluations of unconventional reservoirs. Prior to working with ARI, he worked as an exploration and operations geologist in the oil and gas and mining industries with a focus on subsurface characterization, development of geomodels, and overseeing field operations and personnel.
Mr. Roth holds M.S. and B.S. degrees in Geology from Virginia Tech and is currently an active member in the SPE and AAPG professional societies. He is also actively involved in the SEG Evolve and SEG Exploration Mentorship groups.
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