A partnership between oilfield operators and the federal government in the coupled CO2 enhanced oil recovery (EOR) and storage projects may bring long-term benefits for both. This paper describes the field-scale design optimization of coupled CO2-EOR and storage operations from the viewpoint of oilfield operators. We introduce two categories of EOR-storage design optimization problems: the fixed storage requirement and integrated asset optimization. The first problem follows an environmental-driven objective by giving priority to the storage element of CO2-EOR and storage; the second prioritizes the oil recovery to the storage and adjusts the storage volume commitment based on the economic benefits. Each problem is elaborated through a set of common but specific technical and economic assumptions, which are mainly based on the USA circumstances. The results quantitatively describe the relations between the design parameters, reservoir properties, asset size, and the economic parameters. With appropriate economic conditions and fiscal incentives, specifically in the form of storage tax credit, coupled CO2-EOR and storage could be attractive for both the oilfield operators and the government. In addition, CO2-EOR and storage is not the ultimate solution to the industrial-scale CO2 storage requirements. A medium-size industrial capture and storage for 25 years through EOR requires an asset size greater than the current field-scale EOR operations in the USA. Finally, the reservoir properties significantly affect the economic benefits for both the oilfield operators and the government. The proposed workflow may serve as a screening tool to rank the EOR-storage candidates and prioritize the most promising prospects for both the oilfield operators and the government.
- Integrated asset optimization
- Storage tax credit