ANoteonSourcesofCO2Supplyfor EnhancedOilRecoveryOperations

PhilDiPietroandPeterBalash,NationalEnergy TechnologyLaboratory Joseph.dipietro@netl.doe.gov 412.386.5853 December2011

Summary Thispaperpresentscompiledinformationonsourcesofcarbondioxide(CO2)forenhancedoilrecovery (EOR)operationsinthelower48states.CO2supplyin2010was60MMmtCO2.Productionfromnatural sourcesaccountedfor84%ofthe2010CO2supply,andreserveestimatesarelargeenoughtosupport levelorgrowingCO2productionratesforseveraldecades.Naturalgasprocessingaccountedfor14%of 2010supplyandisdominatedbytwolargefacilities,LabargeinWyomingandCenturyinTexas.Ten hydrocarbonconversionfacilitieswithCO2capturearenewlydeployed,underconstruction,orinfinal designandareexpectedtobeonlineby2015.Theywillprovideanadditional25.5MMmtCO2/yrof supply. Background In2010CO2EORprovided280,000barrelsperdayofcrudeoilor5%ofdomesticsupply(Moritis2010; EIA2012).SourcesofCO2areorganizedintothreecategories. 1. Naturalsourcesnaturallyoccurringundergroundaccumulationswheretheproducedgasis primarilyCO2(90%orhigher). 2. Naturalgasprocessingnaturallyoccurringundergroundaccumulationswheretheproduced gascontainssignificantamountsofmethane. 3. Hydrocarbonconversionindustrialprocessesinwhichahydrocarbonfeedstock(coal,crude oil)isconvertedintoahighervalueproductorslateofproductsandexhaustCO2iscaptured. Figure1showsthesupplyfromthethreesourcetypesin2000and2010.Figure1alsopresentsa projectionforsupplyin2015basedonknownprojects.TotalCO2supplynearlydoubledbetween2000 and2010;mostoftheincreasecamefromnaturalsources.CO2supplywilllikelyincreasebyanother 70%overthenextfewyearsbasedontheCenturyandRileyRidgenaturalgasprocessingplantsandten

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hydrocarbonconversionprojectswithCO2capturethatarenewlydeployed,underconstruction,orin finaldesign. NaturalSources Table1presentssummarydataonninemajorCO2bearingsourcefieldsinthelower48states.Itisan updateandexpansionofanearlier,similarcompilationofnaturalCO2sources(Stevenset.al.,2001). FourofthereservoirsareestablishedandaresupplyingCO2toEORfloods,andfiveareintheinitial, exploratorystages. TheproductionratefromSheepMountainandBravoin2010islessthanitwasin2000,butproduction fromtheothersourcesissteadyorincreasing.TherateofproductionfromJacksonDomeincreased twentyfoldbetween2000and2010andisnowapproachingMcElmo. ThefuturelevelofsupplyfromnaturalsourcesofCO2isdifficulttopredict.Thesumofthereserve estimatesfortheninereservoirsis2.1billionmetrictons,equivalentto39yearsofsupplyatthecurrent rateofproduction.However,athirdofthereserveestimatesarefromthefivefieldsthatareinthe initialstagesofdevelopment.Andfourofthedevelopmentalfields,Kevin,St.Johns,Escalante,and GordonCreekwillrequirepipelineinfrastructuretoaccessEORtargets.Twoformations,BravoandSt. Johns,areshallowandwilltendtohavelowerwellheadpressureandhigherplantgateproductioncost thanothernaturalsources.Counterbalancingthesefactorsisthepossibilityofnewdiscoveriesor upwardlyrevisedreserveestimatesatknownreservoirs. NaturalGasProcessing Table2showssourcesofCO2fromnaturalgasprocessingandsetsforthaforecastforCO2production ratein2015.Productionfromnaturalgasprocessingin2010was8.2MMmtCO2or14%oftotalCO2 supply.TheexpandedcapturefacilityatLabargesuppliedapproximately5.8MMmtCO2in2010and drawsfromanenormousreserveof2.9BmtCO2.SandridgeEnergyandOccidenalPetroleumrecently deployedtheCenturyPlantinPecosCountyTexas(OccidentalPetroleum2011).Whenbothtrainsat theCenturyPlantareoperational,itwillprovide8.7MMmtperyearofcapturedCO2.Denbury ResourcesisbuildinganaturalgasprocessingplantatRileyRidge,justnorthofLabargeinWyoming. TheRileyRidgefacilitywilladd2.5MMmtCO2/yrofsupplybeginningin2012andmayprovideupto12 MMmtCO2/yrwhenfullydeployed.Thethreefacilities,LaBarge,Century,andRileyRidge,accountfor 88%oftheCO2supplyestimatefor2015fromthiscategoryofsources.Allthreefacilitiesprocessagas streamthatcontainsroughly65%CO2. Figure2isamapoftheCO2sourcescontainedinTables1and2.TwosourcesofrecentgrowthinCO2 supply,theJacksonDome(#2)andtheCenturynaturalgasprocessingplant(#10)areinideallocations relativetooilbearingformations.DoeCanyon(#5),StJohns(#6),andEscalante(#8)areinthesame generalregionasSheepMountainandBravoandcouldplausiblymakeupfordeclineinproduction ratesfromthosetwofields.TheLaBargeexpansionandtheRileyRidgedeploymentindicategrowthin CO2EORproductionfromtheRockyMountainregion.

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HydrocarbonConversion ThethirdcategoryofCO2supplyishydrocarbonconversionfacilitieswithCO2capture.Table3shows thataftera30yearhiatuswithnonewfacilities,therearenineprojectseitherunderconstructionorin design.Ifthetenprojectsaredeployedasplannedtheywillprovide21.5millionmetrictonsperyearof capturedCO2,anamountequivalentto36%ofthe2010supply.Twomarqueeprojectarenotincludedin Table3:theDakotaGasificationfacilitysuppliesCO2toafloodinCanada(scopeistheUnitedStates) andtheHECAprojectinCaliforniaisnotscheduledtosupplyCO2until2017or2018(beyondthe2015 forecast). Figure3isthemapshowninFigure2withthehydrocarbonconversionsourcesadded.The hydrocarbonconversionsourcestendtobelocatednearestablishedundergroundsources,apparently takingadvantageofexistingpipelineinfrastructure.

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Table 1. Natural Sources of CO2 in the United States

General Reservoir Characteristics Reserves and Production Information Standard Cubic Foot Basis Formation name State Discover year Depth of producing zone, ft CO2 purity vol % Other species Operator Original CO2 in Place (TCF) Current CO2 Reserves (TCF) Production Rate, MMscfD Cum. CO2 prodn thru 2010 (TCF) Metric Ton Basis Current CO2 Reserves (MMmt) Production Rate, MMmt/yr in 2010

2000

2010

InProduction

McElmo Dome Jackson Dome Bravo Dome Sheep Mountain

CO MS NM CO

1944 ~1960 1916 1971

8,000 16,000 2,300 3,500 6,000 9,000 1,600 4,000 11,000 13,000

98% 7099% 99% 97%

N2 H2S N2 N2,CH4

Kinder Morgan, ExxonMobil Denbury KM, Occidental, AmeradaH. Occidental

30 30 15

10 10 8 Nearly depleted 0.75* 8.2 0.7 ~1 1.5 40

840 55 350 70

1,150 930 290 35

7.2 1.8 2.9 1.3

530 530 420 0

22 18 5.8 0.7

UnderDevelopment

Doe Canyon Deep St.Johns Kevin Dome Gordon Creek Escalante Anticline

CO
NM

1994 ~1960 1947 1960

95% 93% 99%+ 9399%

He 0.75%

Kinder Morgan Kinder Morgan

1.5 16

0 0 0 0 0 1,300

100 100 0 0 0 2,600

0.09 0.09 0 0 0 13

40 430 37 53 80 2,100

1.9 1.9 0 0 0 50

MO UT UT

N2,CH4, He N2,CH4

VectaOil& Gas Thunderbird Energy

6 1.4 Total
o

Conversionfactors:53millionmetrictonsCO2pertrillioncubicfeet,51.69MMscfd/MtCO2/yr (15 Cand14.5psi) *estimatedat50%ofCO2inplace Informationsources(Bradley2010;Broadhead1998;DenburyResources2011;Gloyn1997;Hargrove2010;KinderMorgan2011;Lasker2011;Oil&GasJ.2001;Roth

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1983;Schwochow1983;ThunderbirdEnergy2011,VectaEnergyCorporation2011;andZimmerman1979

Table 2. Natural Gas Processing Facilities with CO2 Capture

GeneralFacilityInformation CO2 conc.in source gas CO2ProductionRates StandardCubicFeetBasis Facilityname (owner) Owner Capture Location Year online CO2 reserve estimate, TCF 55 ProductionRate(MMscf/d) MetricTonBasis CO2 reserve estimate, MMmtCO2 2,900 Production ratein2015, MtCO2/yr

2000

2010

2015

LaBarge Century Plant Terrell, Grey Ranch, Mitchell, and Puckett Turtle Creek Lost Cabin

Exxon Mobil Oxy/ Sandridge Sandridge Energy Inc.

WY Pecos County, TX Terrell and Pecos Counties, TX Ostego, MI

1963 2011

65% 65%

233 0

300* 0

360 450

7.0 8.7

1998

75

75 40 50

75 40 50

1.5 0.4 1.0

Conoco Phillips Denbury

Fremont County, WY WY 2012 65% Total 2.4 57.4 0 308

Riley Ridge

0 465

130** 1,105

130 3,030

2.5 21

Conversionfactors:53millionmetrictonsCO2pertrillioncubicfeet,51.69MMscfd/MtCO2/yr(15oCand14.5psi) *Expansionimplementedduring2010,fullcapturecapacitynotrealized **FullprojectplansfortheRileyRidgefacilityarefor580630MMscf/dofCO2production,notpredictedtobecompletedby2015.

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InformationSources(BlueSource2011;Campbell1978,Collings2008;Denbury2011,Dooley2009;Melzer2009;Moritis2009;OccidentalPetroleum 2011;Parker2009;SandridgeE&P2008)

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Figure2.CO2fromNaturalSources andNaturalGasProcessing

Natural Sources Natural Gas Processing Oil & Gas Fields*

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Table 3. Hydrocarbon Conversion Facilities with CO2 Capture

FacilityCharacteristics Primary Product Fertilizer Fertilizer Ethanol Fertilizer Hydrogen Power Power /Urea Ammonia Methanol Power Liquidfuel Owner CaptureLocation DOEcost share* No No No No Yes Yes Yes No Yes Yes No Year online 1980 1982 2011 2013 2013 2014 2014 2014 2015 2015 2015 Total
o

CO2CaptureRates StandardCubicFeet (MMscf/d) 2000 2010 2015 26 35 61 26 35 61 26 35 8 40 52 141 123 208 208 72 200 1,112 MetricTons (MMmtCO2/yr) 2015 0.5 0.68 0.15 0.8 1.0 2.7 2.4** 4.0 4.0 1.4 3.9 21.5

Agrium,Inc. KochNitrogen BonanzaEnergy CVREnergy AirProducts* Mississippi Power* SummitTexas CleanEnergy* GreenRock Energy,L.L.C. LeucadiaEnergy* NRG* DKRWAdvanced FuelsLLC

Borger,TX Enid,Oklahoma GardenCity,KS Coffeyville,KS PortArthur,TX KemperCounty,MS EctorCounty,TX Donaldsville,LA (Faustina) LakeCharles,LA Thompson,TX MedicineBow,WY

Conversionfactor:51.69MMscfd/MtCO2/yr(15 Cand14.5psi) *ProjectsreceivingcostsharefinancialassistancefromtheU.S.DOE **SomeportionofthecapturedCO2isutilizedtomanufactureurea.ShownistheamountsuppliedtoEOR. ThepowerandureaprojectinKernCounty,Californiaisnotincludedastheprojectedstartupdata,2017/18isbeyondthe2015forecast.The projectisownedbySCSEnergy/HECAandisdesignedtosupply23MMmtCO2/yrorCO2EORattheElkHillsfield. InformationSources:(Ahmed2010;ChaparralEnergy,2011;GlobalCCSInstitute2011;MississippiPower2011;NETL2010a;NETL2010b; Oil&GasJ.2008;RTTNews2011;

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Figure3.SourcesofCO2 forDomesticEORFloods

1. McElmo 2. Jackson 3. Bravo 4. Sheep 5. Doe Canyon 6. St. Johns *7. Kevin *8. Escalante 9. Gordon Creek 10. LaBarge
Natural Sources Natural Gas Processing Hydrocarbon Conversion
Oil & Gas Fields*

15. Koch Nitrogen 16. Agrium, Inc. *17. Green Rock Energy *18. Bonanza Energy *19. ZEEP/Eastman *20. CVR Energy *21. Air Products *22. Leucadia Energy *23. Mississippi Power *24. DKRW *25. Summit Texas *26. NRG *27. HECA

*11. Century 12. TGRMP 13. Lost Cabin 14. Riley Ridge

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