PILOT Miscible-Gas EOR WorkshopUKCS Experience and Revised

Offshore CO2 EOR as Part of a National CCS
Programme: Opportunities and Challenges
David S Hughes
Principal Reservoir Engineer/CCS and EOR Specialist
Senergy
18th February 2014
Introduction
• Substantially material prepared for a new SPE
Distinguished Lecture (from September 2014)
• Include more detail of recent UK CO2 EOR screening
exercise undertaken for DECC (report available)
• DECC/ PILOT/ Oil & Gas UK initiative
• Presented to industry 1 October 2013
• For copy of ‘DECC Miscible Flooding’
report (8 MB) email
[email protected]
Opening remarks: Geological Storage of
CO2
• New business stream for oil industry
• Store liquid/supercritical CO2 in depleted oil and gas fields
and also in saline aquifers
• Synergies with existing operations through reuse of
infrastructure etc. and opportunity to increase hydrocarbon
recovery
• Contributes to the fight on climate change
• Has value through Cap and Trade arrangements or
through avoiding carbon taxes
• But comes with regulations and liabilities
• Uses all our skills
Outline of Talk
• Worldwide requirement for CO2 emissions reductions
and role of carbon capture and storage (CCS)
• Specific UK targets
• Expected amounts and locations of captured CO2
from national CCS programme
• Types and locations of storage sites including estimate
of UK CO2 enhanced oil recovery (EOR) potential
• Challenges of implementing CO2 EOR offshore
• Discussion
Worldwide CO2 Equivalent Emissions and
Reduction Requirement
Source: Adapted from UNDP, 2007
• Emissions reductions pathway consistent with limiting
temperature rise to 2°C (1990 baseline)
• 85% reduction in developed countries
• 50% reduction overall
Inter-governmental Panel on Climate
Change (IPCC) Fifth Assessment Report
• From second order draft of the IPCC Working Group III
contribution to the IPCC's Fifth Assessment Report
(published in Economist 20th July 2013)
• Compares with 445-490 ppm giving likely rise of 2.0-2.4°C
in Fourth Assessment Report
IPCC 2005 Prediction of Requirement for
Carbon Capture and Storage (CCS)
• From ~2030 amount of CO2
that requires to be stored is
~4 billion tonnes/year, rising
to ~18 billion tonnes/year in
2095
• c.f. 4.0 billion tonnes/year oil
production and 3.0 billion
tonnes oil equivalent/year
gas production in 2011
•
2030
From IPCC Special Report on Carbon Dioxide Capture and Storage 2005 and BP Statistical Review, 2012
European Union (EU) 2007 Prediction of
Requirement for CCS
• EU prediction suggests requirement for ~3 billion tonnes
per year of CO2 storage
CO2 Flooding is a Major Enhanced Oil
Recovery (EOR) Process in USA
USA CO2 EOR and CO2 Supply
• ~120 projects
• ~300,000 stb/d
• ~75 million tonnes
per year
•10 (CO2 capture)
UK Commitment to Reduction in CO2
Emissions
• Under Kyoto Protocol, UK committed to reducing
greenhouse gas emissions by 12.5% from their 1990
levels by 2012 – actually achieved 25.7% (provisional
figure)
• UK implemented legal requirement for 80% reduction in
1990 emissions by 2050, with interim target of ~34% by
2020
• Capture of CO2 emitted from fossil fuelled power plants
seen as one means of reducing emissions, with geological
CO2 storage in depleted oil and gas fields, and saline
aquifers
Contribution to UK CO2 Emissions From
Power Sector
• UK CO2 emissions 2012
479 million tonnes
• About 1/3 from fossil
fuelled power stations
• Many coal-fired power
stations due to close
•12
UK Power Generation Prediction by Fuel
(DECC, September 2013)
400
350
300
TWh/year
250
200
150
100
50
0
Coal
Coal and Gas CCS
Oil
Gas
Nuclear
Renewables
Storage
From DECC – Updated Energy and Emissions Projections 2013, September 2013 (Reference Scenario)
CO2 Captured from CCS in UK Power
Generation Prediction
18
Captured CO2 (million tonnes/year)
16
14
12
10
Late 2020s
Average ~12 mill te/y
8
6
4
2
0
Derived from DECC – Updated Energy and Emissions Projections 2013, September 2013 (Reference Scenario)
More Bullish Outlook for CCS in UK from
Energy Technology Institute (ETI)
• ETI predicts 35 million tonnes/year 2025-30
• Rising to 110 million tonnes/year 2035-50
Source: A Picture of CO2 Storage in the UK – learnings from ETI’s UKSAP and derived Projects, ETI, June 2013
ETI Appraisal of Sources and Potential Sinks of
CO2 Around North Sea (Amounts in late 2020s)
10 mill te/y
15 mill te/y
10 mill te/y
Source:
www.co2stored.co.uk
:
Southern North Sea (SNS) Gas Fields CO2
Storage Potential
• 53 fields most Permian
Leman Sandstone
• Proven geological trap for
hydrocarbon gas
• Near to CO2 sources
• Existing infrastructure
• Well and pressure depletion
may have compromised trap
• Aquifer influx may reduce
capacity
• CO2 capacity ~2.8 billion
tonnes
SNS Bunter Sandstone CO2 Storage
Potential
• 29 closed structures (2 under
appraisal)
• Good porosity (average
18.7%) and permeability
• 650-9800 ft deep
• Near to CO2 sources
• Good seal (mudstones and
evaporites) - gas bearing in
places proves trap (or not!)
• Some existing infrastructure
• Cut by faults which may leak
• CO2 capacity ~14.3 billion
tonnes
Material on SNS gas field and aquifer storage from: An assessment of
carbon sequestration potential in the UK – SNS case study, Michele
Bentham, January 2006, Tyndall Centre
ETI Appraisal of Sources and Potential Sinks of
CO2 Around North Sea (Amounts in late 2020s)
10 mill te/y
15 mill te/y
10 mill te/y
Source:
www.co2stored.co.uk
:
UK Oil Production and the EOR Prize
Cumulative oil (billion stock tank barrels)
70
60
50
Some fraction of remaining oil
Say 5 billion barrels
40
30
43%
20
37%
10
0
0
25
50
75
100
125
150
Oil field (largest to smallest STOIIP)
Cum STOIIP (billion stb)
Cum ultimate oil recovery (billion stb)
175
Cum oil produced (billion stb)
200
225
How does CO2 EOR work?
• CO2 acts as a solvent flushing oil from rock
• Most efficient above the so called minimum miscibility
pressure (MMP)
• CO2 may be more or less dense than the oil, but always
less dense than water
• Efficiency of displacement is limited by heterogeneity and
gravity override
• Expected incremental recovery 5-15% of oil initially in
place
• Between 2 and 5 incremental barrels per net tonne of CO2
injected, but significant recycling of CO2 required
Screening for CO2 EOR Potential
• All 119 UK fields with oil initially in place >100 MMstb
screened (database made available by DECC)
• Screening parameters considered include:
•
•
•
•
Ratio operating pressure/CO2 MMP
Ratio oil density/CO2 density
Ratio oil viscosity/CO2 viscosity
CO2 efficiency (stb/tonne)
• Results are aggregated into overall score
• Best candidates, 2nd rank candidates and 3rd rank
candidates identified
• Potential incremental recovery calculated
Estimated Incremental Recovery Potential and
CO2 Stored by Category
• Leading Operators (best and second rank candidates)
•
•
•
•
•
BP
Apache
Nexen
Talisman
Taqa
Source: PILOT Miscible Gas EOR Workshop, October 2013 (DECC)
Incremental Recovery Factor Distribution
77 fields
47 leading candidates
9 2nd rank candidates
21 3rd rank candidates
14
12
Number of Fields
10
8
6
4
2
0
1%
2%
3%
4%
5%
6%
7% 8% 9% 10% 11% 12% 13% 14% 15% 16%
Incremental Recovery Factor
Source: PILOT Miscible Gas EOR Workshop, October 2013 (DECC)
UK Potential for CO2 EOR
(potential proportional to area of circles)
62
61 204
205
210
211
2
3
206
60
9
Latitude
59
11
12
13
58
10
14
15
16
20
21
22
23
28
29
30
57
56
55
113
42
43
44
54
110
47
48
49
53
-5
-4
-3
3rd rank technical candidates
-2
-1
Longitude
2nd rank technical candidates
0
Best technical candidates
1
2
Blocks
Source: PILOT Miscible Gas EOR Workshop, October 2013 (DECC)
coastline
3
Initial CO2 Import Rate at 3% HCPV per
year (No Hub Constraint, All Candidates)
30
25
77 fields
47 leading candidates
9 2nd rank candidates
21 3rd rank candidates
Number of Fields
20
15
10
5
0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12
Initial CO2 Rate at 3% HCPV per year (million tonnes)
Source: PILOT Miscible Gas EOR Workshop, October 2013 (DECC)
Decline in Potential in Operating Fields as
Fields Reach their COP Dates
• ~2/3rds of potential is in fields that will have ceased
production by late 2020s
3500
2500
2000
1500
1000
500
0
total
<2013
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
Incremental Recovery (MMstb)
3000
Best candidates
Best and 2nd rank
Best, 2nd and 3rd rank candidates
Source: PILOT Miscible Gas EOR Workshop, October 2013 (DECC)
Map Showing Agreements for Lease for CO2
Storage Granted by Crown Estate
59
11
12
13
14
15
Aspen (Petrofac)
58
20
St Fergus
Goldeneye (Shell)
Latitude
57
16
Brae/Miller
MacCulloch (Progressive)
Balmoral area (Premier)
Maureen (Progressive)
21
22
23
28
29
30
Grangemouth
Mid NS High (Progressive)
56
55
Teesside
113
42
43
Humberside
54
110
44
Bunter 5/42 (NGC)
47
Bunter 3/44 (NGC)
48
49
53
-4
-3
-2
-1
0
1
Longitude
Offshore hubs
Onshore hubs
Blocks
coastline
Source: PILOT Miscible Gas EOR Workshop, October 2013 (DECC)
2
3
UK Potential for CO2 EOR
(Hub Constrained)
62
61
205
210
211
2
3
206
60
Latitude
59
9
11
12
13
58
10
14
15
16
20
21
22
23
28
29
30
57
56
55
-4
-3
-2
-1
0
1
2
3
Longitude
3rd rank technical candidates
2nd rank technical candidates
Best technical candidates
Hubs
Blocks
Source: PILOT Miscible Gas EOR Workshop, October 2013 (DECC)
coastline
Estimated Incremental Recovery Potential
and CO2 Stored by Category (Hub
Constrained)
• Leading Operators (best and second rank candidates)
• Nexen
• Talisman
45 fields
15 leading candidates
13 2nd rank candidates
17 3rd rank candidates
Source: PILOT Miscible Gas EOR Workshop, October 2013 (DECC)
CO2 EOR Onshore - Advantages
• Mature CO2 supply network
• High well density, pattern flood, relatively cheap to
redrill/refurbish
• Relatively low secondary recovery (35-45%)
• Phased implementation
• Large surface area available for facilities
CO2 EOR Offshore - Challenges
• Limited CO2 supply at present but significant quantities
likely to become available on 5-10 year timescale (i.e.
early to mid 2020s)
• Fewer wells, peripheral floods, expensive new wells and
workovers
• High secondary recovery (up to 70%) therefore smaller
target
• Single implementation (i.e. no chance to introduce the
project in phases or to undertake pilot)
• Existing facilities mainly incompatible with high CO2
content in fluids
• Limited weight and space for new facilities
Well Density – Onshore vs. Offshore
• Onshore high well density
• ~2 million barrels per well
• Offshore fewer wells
• ~30 million barrels per well
70%
120000
60%
100000
50%
Oil Production Rate - Waterflood (stb/d)
80000
40%
Oil Production Rate - CO2 Injection (stb/d)
60000
Recovery Factor (%)
40000
20000
30%
20%
Delay?
0
10%
0%
Recovey Factor (%)
140000
Ye
ar
Ye 1
ar
Ye 3
ar
Ye 5
ar
Ye 7
a
Ye r 9
ar
Ye 11
ar
Ye 13
ar
Ye 15
ar
Ye 17
ar
Ye 19
ar
Ye 21
ar
Ye 23
ar
Ye 25
ar
Ye 27
ar
Ye 29
ar
Ye 31
ar
Ye 33
ar
Ye 35
ar
Ye 37
ar
Ye 39
ar
Ye 41
ar
Ye 43
ar
45
Oil Production Rate (stb/d)
Typical CO2 EOR Response in North Sea
Oil Field
Offshore CO2 EOR Implementation (Capital
Expenditure)
• Additional ~20 years from existing facilities
• CO2 reception facilities and controls
• Flow lines to injectors (CO2 and water) and
control valves
• Gas/liquid separation facilities capable of
handling high content CO2 in produced
fluids
• Separation of CO2 and hydrocarbon gas (or
just separate enough for fuel gas)
• Dehydration and compression of produced
gas for reinjection (increasing CO2 content
in produced gas)
• Start-up CO2 pumps
• Production well tubing needs replacing with
stainless steel (to deal with produced CO2)
• Baseline measurements for subsequent
monitoring
Assure Storage of Injected CO2 in EOR
Project (to meet regulations)
• Measure amounts injected and
produced to maintain inventory
• Keep average reservoir pressure below
initial pressure
•Produced gas
• Assess CO2 seal capacity and seismic
risk over storage period
• Model long-term migrations and
reactions, if any
• Monitor for potential leakage via wells or
geological pathways during injection
period
• Abandon wells in a manner consistent
with long-term secure CO2 storage
To conclude: So what does the future hold
for CO2 EOR in the North Sea?
• Supply of CO2 will (in all probability) develop from CCS
• Initial CCS projects will plan for storage only, but proximity and
availability of CO2 likely to provide opportunities for EOR
initially possibly in the smaller/medium sized fields
• If successful, redevelopment of larger mature fields may occur
• New specialist CO2 operators may emerge
• Once EOR phase complete some extra opportunity to store
additional CO2
• Adjustment of tax regime may be needed to make offshore
EOR economic
• Regulation around CO2 storage (over and above O&G
regulations) may be a significant burden
Big Decision
• Bulk of CO2 captured in
south (2035-50 numbers
from ETI)
• Saline aquifer storage
nearby
• but EOR opportunity in
oil fields in north
• Trunk pipeline required
• Who should pay?
• Up to £1 billion?
15 mill te/y
95 mill te/y
Source: www.co2stored.co.uk
Discussion
• That concludes my talk
• Thank you to Senergy (www.senergyworld.com) for
allowing me to make this presentation
• Discussion
UK Competition Projects
• Shell/SSE – Peterhead, existing 340 MW CCGT, postcombustion capture, 1 million tonnes per year, stored in
Goldeneye (Blocks 14/29a, 20/4b and 20/3b)
• Alstom/Drax/BOC/National Grid – White Rose, Selby, 450
MW (gross), Oxyfuel, 2 million tonnes per year, stored in
Bunter Block 5/42
• Other projects
• 2Co Energy/National Grid – Don Valley, Hatfield
• Summit Power/Petrofac/National Grid/Siemens – Captain
Clean Energy Project, Grangemouth
• Progressive Energy/GDF SUEZ/Premier Oil/BOC –
Teesside Low Carbon Project

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