What are the best practices and standards for CO2 EOR project design and evaluation?

I believe with the current tax credit that generally ranges from $40 to $80 per metric ton in US, the cost of gathering CO2 from a distant source can be economical.

CO2 capture cost key drivers: - Purity of CO2 (for example direct-air-capture is low purity, and very expensive, ammonia, bio-ethanol, or natural gas processing are high purity and relatively inexpensive. - Scale, below a certain scale, costs per tonne increase dramatically CO2 Transportation cost key drivers: - Onshore vs Offshore, offshore is much more challenging and expensive - Distance, a longer pipeline is more expensive - Terrain, challenging terrain increases pipeline costs

CO2 sources and transportation are critical for CO2 EOR projects. Best practices include identifying cost-effective CO2 sources, designing efficient transportation infrastructure, conducting economic assessments, implementing monitoring systems, ensuring regulatory compliance, and optimizing CO2 injection rates. These practices aim to enhance project performance and environmental benefits, with consideration for potential transition to full CCS projects.

For a CCUS project, the first step should be, what is mentioned here as the second. If there is no proper rock (reservoir) characterization, we may not need to spend time and money looking for a source of CO2. A proper static model should always be one fo the main requirements for an EOR project. We need to make sure that the expensive fluids and facilities required to flood a reservoir with CO2, will deliver a positive cash flow!

Optimizing a CO2 EOR project involves finding the balance between maximizing revenue from incremental oil, and carbon credits, the optimal solution depending on your geographical setting. Key CO2 EOR considerations include: - Technical analysis: miscibility, injectivity, material balance, mobility - Ensuring constant CO2 handling capacity, as shutting in a CO2 capture source can be expensive (take-or-pay, startup/shutdown costs). - Development planning, contingency planning - Over-injecting relative to CO2-EOR best-practices can be a good strategy if economic analysis suggests maximizing carbon credit revenue is optimal - However CO2 may "break-through" causing higher recycle costs, and lower recovery on a per-tonne-injected basis

The miscibility of the CO2 with the reservoir oil is very important which is a function of oil composition and reservoir pressure. The reservoir pressure must be above the minimum miscibility pressure to obtain the maximum recovery. In general, 6%-10% of incremental oil recoveries have been reported for a miscible CO2 flood. However, in some cases a near-miscible flood with 3% incremental oil recovery has been reported. In this case the flood was economical because of nearby CO2 source. I believe with the current carbon tax credit, the CO2 flood does not have to achieve complete miscibility with the reservoir oil, an immiscible or near-miscible can be economical.

As mentioned in Mr. Lafreniere's post (below), CO2 sources most often require constant take-away volumes. But CO2 usage for CO2-EOR projects often have variable CO2 needs. Pairing a CO2-EOR project with an appropriate and nearby saline aquifer CO2 storage project may offer advantages when considering the constant take-away volume issue. When CO2 is needed less for a CO2-EOR project, the excess can be added to a paired saline aquifer storage project without causing any problems if the paired projects are sized appropriately.

CO2 injection and storage strategies are critical for optimizing EOR projects, requiring a delicate balance between maximizing oil recovery and ensuring long-term CO2 sequestration. Comprehensive reservoir characterization, simulation, and field pilot testing are essential to understand reservoir dynamics and CO2 behavior. Key factors influencing strategy include reservoir properties such as type, pressure, temperature, heterogeneity, and fluid characteristics. The ultimate goal is to design an injection approach that enhances oil production while maintaining reservoir integrity and maximizing CO2 storage potential.

Robust Monitoring and Verification (M&V) systems are crucial for CO2 EOR projects, ensuring accurate tracking of injected CO2 and reservoir changes. These systems must adhere to industry standards like SPE SRMS, ISO 27916:2019, or U.S. EPA Subpart RR. Effective M&V employs a multi-faceted approach, integrating seismic, geophysical, geochemical, and well-based methods. This comprehensive monitoring strategy enables precise measurement of CO2 injection parameters, plume migration, potential leakage, and environmental impacts, ultimately supporting project optimization and regulatory compliance.

A preliminary economic analysis should be done early in the scoping process, to determine under what set of conditions a project could be economically viable. If a project appears viable, the evaluation team can then focus on the key uncertainties and refining the technical analysis to drive a go/no-go decision.

CO2-Enhanced Oil Recovery (EOR) projects require comprehensive evaluation due to their complex technical, economic, and environmental aspects. Integrated assessment models have been developed to analyze these projects, incorporating historical data and considering potential carbon market benefits. These models include life cycle and techno-economic analyses, providing insights into greenhouse gas savings and economic viability across global hydrocarbon regions. Careful consideration of costs, prices, production profiles, and regulations is crucial, necessitating sophisticated economic modeling to assess project feasibility amid changing environmental policies and market conditions.

CO2 EOR project management requires a robust governance structure that clearly defines roles, communication channels, and decision-making processes. The framework must integrate quality assurance, performance evaluation, and conflict resolution mechanisms while aligning with legal, regulatory, and ethical standards. An effective model balances technical, economic, and environmental objectives, adapting to the dynamic CO2 EOR landscape. Success depends on transparent reporting, stakeholder engagement, and addressing social and environmental responsibilities throughout the project lifecycle.