Gary Teletzke

1. Society of Petroleum Engineers
Distinguished Lecturer Program
www.spe.org/dl
1

2. Primary funding is provided by
The SPE Foundation through member donations
and a contribution from Offshore Europe
The Society is grateful to those companies that allow their
professionals to serve as lecturers
Additional support provided by AIME
Society of Petroleum Engineers
Distinguished Lecturer Program
www.spe.org/dl

3. Society of Petroleum Engineers
Distinguished Lecturer Program
www.spe.org/dl
3
Gary Teletzke
CO2 in the Subsurface – From EOR to Storage

4. Outline
Background
− CO2 in the subsurface
− What is Carbon Capture and Storage (CCS) and why is it needed?
− Current status of CCS
CO2 Storage
− Subsurface lessons learned
− Impact of dynamic injectability factors on storage capacity estimates
CO2-EOR
− History and current status
− Learnings for CO2 storage
Summary

5. CO2 in the Subsurface
5
CO2 is a dense supercritical fluid at typical
reservoir T and P
• Miscibility with oil for enhanced oil recovery
• Efficient storage of CO2 from atmospheric
conditions
• Buoyant and mobile compared to water
• Soluble in water, reduces pH
Source: “Strategic Analysis of the Global Status of Carbon Capture and Storage Report 1:
Status of Carbon Capture and Storage Projects Globally,” Global CCS Institute, 2009

6. CCS – a Key GHG Mitigation Technology
6
Source: IEA, “Energy Technology Perspectives 2017,” Paris: OECD/IEA, 2017

7. What is CO2 Capture and Storage
(CCS)?
7
Storage
Store CO2 in a safe
location for 100’s of
years
Capture
Extract CO2
from
flue gas
Transport

8. Is CO2 Storage at Required Scale
Feasible?
• Global CO2 emissions 35 Gt/y, 13 Gt/y from large point sources
• Need to sequester 120 Gt CO2 to achieve 450 ppm (2°C)*
• Requires >4 Gt/y by 2050 (comparable to global HC liquid production)
• 22 projects in operation/under construction; capture capacity 40
Mt/yr
8
*IEA estimate for 2015-2050
1 Gt = 1 billion tons
1 Mt = 1 million tons
1 ton CO2 ≈ 9 reservoir bbl

9. Large-Scale CCS Operational Milestones
• 21 large-scale CCS projects in operation or under construction globally with CO2 capture
capacity of 40 million MTA
• Storage dominated by EOR: 16 projects and 32 MTA
• Additional 6 large-scale projects are at Define stage, with capture capacity of around 8 MTA.
A further 11 large-scale projects are at Evaluate and Identify stages with capture capacity of
around 21 MTA (1/2 involve EOR)
9
Source: Global Status of CCS 2017 – Summary Report, Global CCS Institute
Boundary Dam
CCS Project
Over two million
tonnes of CO2
captured and used
mainly for
enhanced oil
recovery
Petrobras Santos Basin
Pre-Salt Oil Field CCS
Project
Four million tonnes of CO2
injected into producing reservoirs
Quest
Over three
million tonnes
of CO2
captured and
stored in a
deep saline
formation
Sleipner CO2
Storage Project
20 years of successful
operations, over 18
millions tonnes of CO2
stored
Jilin Oil Field EOR
Demonstration Project
Over one million tonnes of
CO2 injected
Air Products Steam
Methane Reformer EOR
Project
Four million tonnes of CO2
captured and used for enhanced
recovery
• Capture dominated by natural gas processing: 10 projects and 25 Mt/yr
• Storage dominated by EOR: 16 projects and 32 Mt/yr

10. Large-Scale CCS Project Startups
10
Source: Global Status of CCS 2017 – Summary Report, GCCSI
Illinois Industrial
CCS Project
Online 2Q 2017
Petra Nova
Carbon
Capture
Project
Online 4Q 2016
Gorgon Carbon Dioxide
Injection Project
Operations anticipated in 2018
Abu Dhabi CCS Project
World’s first operational CCS
project in the iron and steel
sector; online 4Q 2016
Norway Full
Chain CCS
Project
2017 budget
supports full-chain
CCS project Tomakomai CCS
Demonstration
Project
Japan’s first fully integrated
CCS Project
Yangchang Integrated CCS
Demonstration Project
2020 startup
ACTL
Capturing CO2
from multiple
industrial
sources for
EOR; 2019
startup
• 22 projects in operation or under construction with capture capacity of 40 Mt/yr

11. CCS Challenges
Cost is mostly in the CO2 capture step
• CO2 sources are at low pressure and low concentration, while storage
demands high pressure and high concentration
Subsurface Challenges
• Capacity
• Injectivity
• Containment
11
Industry Capture Cost,
$/ton
Nat. gas processing, hydrogen, ethanol 20 - 30
Power gen., iron and steel, cement 60 - 200
Source: Global Status of CCS 2016 – Summary Report, GCCSI

12. 0
5000
10000
15000
Estimated Storage Capacity, Gt CO2
Low
100s of Years Potential Storage Capacity?
12
Source: IPCC SRCCS, 2005 – other than the O&G Reservoirs, the numbers are very approximate
??

13. Pioneering Large-Scale Projects
Saline Formations
13
Source: Eiken et al., “Lessons Learned from 14 years of CCS Operations: Sleipner, In Salah and Snøhvit,” Energy Procedia 4 (2011) 5541–5548
Sleipner
(North Sea)
Snøhvit
(Barents Sea)
In Salah
(Algeria)
Thick, laterally
continuous,
high NTG sand (> 1 D)
Thin, fractured sands
(10 mD matrix)
Thinner, laterally discontinuous,
lower NTG sands (100s mD)

14. Sleipner Subsurface Lessons Learned
14
Source: Ringrose, et al., “Leveraging Infrastructure, Storage and EOR to Get Significant CCS Scale-Up,: Norway Case,” SCCS Workshop, May 26, 2017
Time-Lapse Seismic
• More that 18 Mt
injected since 1996
• Good injectivity, CO2
plume movement
dominated by gravity

15. In Salah Subsurface Lessons Learned
15
Source: Eiken et al., “Lessons Learned from 14 years of CCS Operations: Sleipner, In Salah and Snøhvit,” Energy Procedia 4 (2011) 5541–5548
• 3.8 Mt injected 2004-2011
• Low injectivity, evidence of fracture activation and surface uplift
InSAR Surface Elevation Map
Thin, fractured sands
(10 mD matrix)

16. Snøhvit Subsurface Lessons Learned
16
Source: Ringrose, et al., “Leveraging Infrastructure, Storage and EOR to Get Significant CCS Scale-Up,: Norway Case,” SCCS Workshop, May 26, 2017
• Rapid build-up of pressure during CO2 injection into Tubåen Formation
– Attributed to injection into confined fluvial-deltaic channel system
• Injection then diverted into Stø Formation (shoreface depositional environment)
• More than 4 Mt injected since 2008 (1.1 Mt into Tubåen)

17. N. American Storage Capacity Estimates
• Largest potential storage volume in saline aquifers
• Wide variations in estimates
• “Static” estimates – dynamic injectability factors not considered
• Potential storage in oil and gas reservoirs < 10% of total
17
0
500
Low Mean High
GtofCO2Storage
CO2 Storage Capacity in
O&G
DOE O&G USGS O&G
0
50000
Low Mean High
GtofCO2Storage
Total CO2 Storage
Capacity
DOE Total USGS Total
Sources: DOE 2015 Carbon Storage Atlas, USGS 2013 National Assessment of Geological CO2 Storage Resources

18. Impact of Dynamic Injectibility Factors
Lower estimate – correlation of reservoir
simulation estimates with formation
volume – 6X lower than upper estimate
18
Source: Kearns et al., “Developing a consistent database for regional geologic CO2 storage capacity worldwide,” GHGT-13,
2016
Upper
Estimate
Lower
Estimate
Upper estimate – correlation of
USGS static capacity estimates with
formation volume

19. Global Storage Prospectivity
19
Source: Kearns et al., “Developing a consistent database for regional geologic CO2 storage capacity worldwide,” GHGT-13, 2016

20. Adequate Capacity in Most Regions
20
Source: Kearns et al., “Developing a consistent database for regional geologic CO2 storage capacity
worldwide,” GHGT-13, 2016
Lower Estimate of Storage Capacity Supply Compared with
Potential Demand for CCS, Gt

21. Cost of CO2 Transportation and Storage
• Wide range of cost estimates: $10 – 30/ton
• Cost components are site-specific and have large range of uncertainty:
– Site Characterization
– Wells
– Pipelines and Facilities
– Opex
– Monitoring
– Land Use
– Legacy Well Remediation
– Post-Injection Site Care

22. CO2-EOR History and Status
• Began in Permian Basin in 1970s
• Majority of projects in North America
• Active pilot programs in Middle East, China, and elsewhere
• Over 1 billion bbl oil produced to date
• Over 1 Gt of CO2 injected, > 90% from natural sources
• Estimated 480 billion bbl oil recovery potential with 139 Gt of
storage with “best practice” CO2-EOR*
22
* IEAGHG, “CO2 Storage in Depleted Oilfields: Global Application Criteria for CO2 EOR,” IEA/CON/08/155, 2009

23. North American CO2-EOR
23
Source: “A Review of the CO2 Pipeline Infrastructure in the U.S.,” DOE/NETL-2014/1681, 2015

24. • Phased development initiated in 1984
• CO2 miscibly displaces trapped oil
• Closed-loop – injection balances production
• Goal: Minimize CO2 injected/bbl oil produced
Means CO2 EOR Project
24

25. EOR project improves recovery and stores CO2
• Incremental EOR recovery of 12+% OOIP at 80% HCPV CO2
injected
• All of purchased CO2 (18 million tons) retained in reservoir
CO2 Injection
Means CO2 Injection Results
25
Means Tertiary Oil Recovery
0%
2%
4%
6%
8%
10%
12%
0% 10% 20% 30% 40% 50% 60%
HCPVi CO2
%OOIPfromCO2
Means (San Andres)
Other West Texas CO2 Floods
12%
10%
8%
6%
4%
2%
0%
0% 10% 20% 30% 40% 50% 60%
HCPVI CO2
%OOIPfromCO2
Means
Other PB CO2 Floods
Oil Recovery
Recycle

26. Implications of
CO2-EOR for CO2 Storage
• Four decades of CO2-EOR experience provides confidence in feasibility of safe
and secure CO2 storage
– > 1 Gt injected with no measurable leakage to surface
• CO2 replaces oil that has been trapped over geologic time
• Closed-loop process maintains steady pressure
• Well-established industry practices for well construction, operation, and abandonment
– Pipeline networks provide model for linking CO2 sources and sinks
– Adaptive reservoir management provides model for dealing with subsurface
uncertainties
• Similarity in relevant skills/technology required
26

27. Transitioning from
CO2-EOR to Storage
• CO2-EOR can be an important stepping stone to large-scale CO2 storage:
− Majority of existing and planned CCS projects involve EOR
− Envision transitioning to anthropogenic sources
− Oil sales provide revenue source to offset cost of capture
• Challenges:
− EOR projects aim to minimize the amount and cost of CO2 purchased
and left in the reservoir
− Storage projects aim to maximize the amount of CO2 left in the
reservoir
− Aligning CO2 supply and demand
27

28. Summary
• Dynamic injectability factors reduce CO2 storage capacity estimates
− Hundreds of years of CO2 storage capacity is potentially available, even after
accounting for dynamic limitations
− Areal distribution of potential storage capacity is widely varied
• Industry has a long history with CO2-EOR that provides a strong experience
base for CO2 storage
− CO2-EOR alone likely will be insufficient to meet emission reduction targets
• Geologic and reservoir engineering studies are essential for identifying
storage sites having adequate capacity, containment, and injectivity
− Similarity in relevant skills and technology to O&G development
28

29. For More Information
• Howard J. Herzog, “Carbon Capture,” MIT Press Essential Knowledge Series (2018)
• F. M. Orr, Jr. “Carbon Capture, Utilization, and Storage: An Update,”
SPE Journal invited paper SPE 194190-PA (December 2018)
• Global CCS Institute, “Global Status of CCS: 2018,”
https://www.globalccsinstitute.com/

30. Society of Petroleum Engineers
Distinguished Lecturer Program
www.spe.org/dl 30
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