Author : Amin Ettehadtavakkol
Publisher :
Page : 728 pages
File Size : 18,50 MB
Release : 2013
Category :
ISBN :
A partnership between oilfield operators and the federal government in the coupled CO2 enhanced oil recovery (EOR) and storage projects brings long-term benefits for both. We quantify the win-win condition for this partnership in terms of an optimum storage tax credit. We describe the field-scale design optimization of coupled CO2-EOR and storage operations from the viewpoint of oilfield operators. We introduce a CO2 market model and investigate two special CO2 market problems, namely a fixed storage requirement and an integrated asset optimization. The first problem follows an environmental objective by giving priority to the storage element of CO2-EOR and storage; the second prioritizes the oil recovery and relies on the principles of a free market where CO2 is a commodity and the commitment to storage is made based on the economic benefits. We investigate the CO2 market sustainability conditions and quantitatively derive them for the fixed storage requirement and integrated asset optimization problems. Ultimately, we quantify the impact of storage tax credit on the operator benefits, the federal government benefits, and the optimum economic storage capacity of an oilfield. CO2 EOR-storage projects are long-term and capital-intensive and therefore vulnerable to the risks of the CO2 market. Two important uncertain economic parameters are investigated, the oil price and the storage tax credit. The government plays an important role in reducing the CO2 market risks because it has the leverage to regulate the storage tax credit. The stochastic optimization results show that a transparent storage tax credit reinforces the sustainability of the CO2 market and helps both the government and the oilfield operators boost their long-term benefits.