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

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

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.

Suggested Citation

  • Zhang, Xin & Liao, Qi & Wang, Qiang & Wang, Limin & Qiu, Rui & Liang, Yongtu & Zhang, Haoran, 2021. "How to promote zero-carbon oilfield target? A technical-economic model to analyze the economic and environmental benefits of Recycle-CCS-EOR project," Energy, Elsevier, vol. 225(C).
    • Handle: RePEc:eee:energy:v:225:y:2021:i:c:s0360544221005466
    DOI: 10.1016/j.energy.2021.120297
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