Reservoir-model-based scenarios for assessing the viability of greenhouse gas mitigation strategies through CO2 enhanced oil recovery

This study aims to show that utilization of captured carbon dioxide from the power and industrial sectors for enhanced oil recovery (CO2-EOR) can be a key means of supporting global climate change ambitions. Normative business scenarios are developed to support the economic evaluation of CO2-EOR under different contexts. A reservoir simulation model provides a realistic basis for economic input parameters and has been developed to support the determination of scenarios in which energy price variations, production tax rates and carbon dioxide prices will make CO2-EOR economically viable. The scenarios are used to test CO2-EOR project economics under a variety of oil prices. Projects are shown to be resilient and profitable investments, though arguably not all projects may lead to long-term CO2 storage. Through the scenarios it is shown that stakeholders, particularly the global citizen, have the ability to significantly impact CO2-EOR project investments.