Carbon dioxide-enhanced oil recovery in Australia – techno-economic evaluation, carbon dioxide source/sink networks and current policy landscape
David Bason A * , Hadi Nourollah A , Vello Kuuskraa B , Matt Wallace B , Tim Duff C and Matthias Raab AA CO2CRC, Melbourne, Vic., Australia.
B Advanced Resources International, Washington, DC, USA.
C National Energy Resources Australia, Perth, WA, Australia.
The APPEA Journal 63 S341-S346 https://doi.org/10.1071/AJ22113
Accepted: 24 February 2023 Published: 11 May 2023
© 2023 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of APPEA.
Abstract
This paper presents the results of a techno-economics analysis to quantify the potential for storing CO2 and producing lower carbon intensity oil from mature, onshore Australian oil fields located in the Cooper/Eromanga and Surat/Bowen Basins. The work explores the impact of incentivisation, identifies possible sources of CO2 to support CO2-EOR (enhanced oil recovery) deployment, and discusses global CO2-EOR policy. The hypothetical ‘carbon incentive’ assessed in this study resulted in unlocking an additional 40 million metric tons (Mt) of CO2 storage and 73 million barrels (MMBO) of domestic oil production compared to the base case scenario that most closely represent Australia’s current policy and economic settings. Further, the results of this study indicated that, with incentivisation, net-negative carbon dioxide emissions could be achieved by deploying CO2-EOR practices in certain mature oil fields. The study found that there are currently sufficient industrial sources of CO2, particularly from black coal-fired power generation and hard-to-abate industries such as cement and steel production, to support this deployment. An opportunity to explore the co-development of ‘stacked storage’ using both CO2-EOR and concurrent geologic storage of CO2 in adjacent, unconnected reservoirs is proposed. This may significantly reduce development costs compared to stand-alone geologic storage projects, providing more favourable techno-economics, and accelerating the physical connection of CO2 sources and sinks.
Keywords: carbon dioxide, carbon intensity, emissions reduction, energy policy, enhanced oil recovery, net zero, techno-economics, utilisation.
David Bason is a Reservoir Engineer with CO2CRC in Melbourne, Victoria with 15 years of experience in the Energy industry. David is currently developing the latest research program for Stage 4 CO2 experiments at the Otway International Test Centre. David also consults through CO2Tech on various CCUS-focussed projects. He holds an MPhys from the University of Manchester, UK and an MSc in Petroleum Engineering from Heriot-Watt University in Aberdeen, UK. David has previously worked as a Reservoir Engineer for Woodside Energy and as a Consultant with EY. |
Dr. Hadi Nourollah is a Senior Geophysicist with 20 years of international experience in Petroleum and CCS industries. Hadi received his Master’s degree in Petroleum Geosciences at Imperial College, London and completed his PhD in Geophysics at Curtin University. He has worked for National Oil Companies in the Middle East, operators in SE Asia and directed an international consultancy in Australia for a decade prior to joining the global CCUS leader CO2CRC. |
Vello A. Kuuskraa, President of ARI, has over 40 years of experience in energy resources development, technology, and economics. He is an internationally recognised expert on the technologies of unconventional gas and enhanced oil recovery and their adaptation for CO2 sequestration. Vello is Chairman of the Advisory Board for Carbon Capture Project, a major industry/government partnership involving BP, Chevron and Petrobras, working on advanced CO2 capture and storage technologies. Mr. Kuuskraa holds a M.B.A., Highest Distinction from The Wharton Graduate School. |
Matthew Wallace is a Project Manager with ARI specialising in unconventional oil and gas resources and carbon storage. He has over 15 years of experience in energy and environmental consulting including carbon management, reservoir modelling, and resource assessment. Mr. Wallace is a member of the National Capital Section of SPE and holds a B.S. degree in Environmental Studies from Washington & Lee University. |
Tim Duff is a Project Portfolio Manager at NERA who ensures the effective delivery of programs and designated projects. This includes managing key stakeholder relationships, promoting project outcomes, and identifying opportunities for collaboration in the energy resources sector. Tim holds a Bachelor of Engineering and a Master of Business Administration. |
Dr. Matthias Raab is the CEO of CO2CRC, a well-respected research organisation globally recognised for innovative carbon capture, utilisation, and storage solutions. Dr Raab is committed to Australia’s energy transition as a leader in the global scientific, engineering, energy, and resources sectors. Passionate about finding innovative solutions to energy, climate, and resource challenges, Dr Raab’s 25+ year career has spanned academia, government, industry, and the not-for-profit sectors and involved collaborating with international leaders and experts in their fields. |
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