Proceedings of the ASME 3rd International Conference on Energy Sustainability
Doi
Abstract
This paper explains the system economics of an example integrated network that uses anthropogenic CO2 from Texas Gulf Coast fossil power plants for enhanced oil recovery (EOR). These CO2 sources and sinks are connected via a pipeline network. A discounted cash flow model indicates that for all candidate oil fields that require less than an estimated 10/BBLinEORcapitalexpenditure,allthreeentities(CO2capture,pipelines,andEORoperators)canhave2055 per tonne of CO2 and $56 per barrel of oil. These results include no existing or future tax incentives, and there are some costs not yet included. However, a Monte Carlo analysis shows insight by indicating that the total system rate of return is most sensitive to oil
production parameters. Oil price and estimated amount of recoverable oil are the most positively influential factors while the EOR capital cost is the most negatively sensitive factor. The capital costs of capture and CO2 price are less sensitive, both negatively affecting rate of return.Bureau of Economic Geolog