How to promote zero-carbon oilfield target? A technical-economic model to analyze the economic and environmental benefits of Recycle-CCS-EOR project

Xin Zhang, Qi Liao, Qiang Wang, Limin Wang, Rui Qiu, Yongtu Liang and Haoran Zhang

Energy, 2021, vol. 225, issue C

Abstract: Nowadays, environmental problems caused by petroleum industries need to be alleviated urgently for the transit to low-carbon oilfields. Carbon Capture & Storage-Enhanced Oil Recovery (CCS-EOR) is effective to increase oil production while reducing carbon emissions, but few studies evaluated the cyclic projects that connect capture and injection inside the oilfield. Aiming at Recycle-CCS-EOR (RCE) project, this study proposes a comprehensive technical-economic model to analysis the economic and environmental benefits, considering the uncertainties of geological conditions, prices, and CO2 injection volume. Taking six blocks in real-world oilfields as the example, this model simulates four scenarios under different CO2 acquisition methods and carbon taxes. The results show that the breakeven oil price of RCE is 29.4 $/barrel for carbon tax and 25.6 $/barrel for no tax. The recommendable CO2 injection volume of RCE is higher than 33.5% HCPV for tax and 22.8% HCPV for no tax. Under the current range of CO2 market price, RCE is more profitable when the capture investment is less than 80.9 M$ for carbon tax and 40.7 M$ for no tax. Compared with traditional EOR production, RCE project reduces carbon emissions by about 54.7%, indicating its technical feasibility, economic and environmental advantages in practical engineering.

Keywords: Recycle-CCS-EOR; Technical-economic evaluation; Zero-carbon oilfield (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:225:y:2021:i:c:s0360544221005466

DOI: 10.1016/j.energy.2021.120297

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