Recent research shows that CCS technology will significantly extend the life of oil fields-oil and gas giants further increase investment

In the past few years, major oil companies have been investing heavily in carbon capture and storage (CCS) technology, mainly to offset carbon dioxide emissions from the bulk energy commodities they produce. CCS technology not only reduces carbon but also displaces oil, but new research shows that CCS technology can even extend output from nearly depleted oil fields for decades. This is bound to further increase the interest of oil and gas giants in CCS technology.

CCS can significantly increase oilfield life

Recently, Mengwei, senior geological consultant from Calgary, Canada Zhao conducted a study on the use of CCS in enhanced oil recovery (EOR) and published it in the Bulletin of the American Association of Petroleum Geologists. He analyzed Weyburn, Saskatchewan, Canada More than 22 years of production data from the Midale field, which has been injecting carbon dioxide since 2000, is the world's longest-running EOR project. Zhao said that without carbon dioxide injection, the field would have stopped producing oil in 2016, but enhanced oil recovery could extend the life of the field to 39 or even 84 years. Although Zhao emphasized that he was focusing on a specific project in Canada, he also said he would like to see similar results in large CCS projects around the world.

Zhao's statement may not be an exaggeration. Data shows that crude oil production of the Denver Unit CO2 EOR project in the Wasson Oilfield in Texas also increased nearly 7 times after carbon dioxide injection. The U.S. Department of Energy is currently studying new technologies that could significantly improve economic efficiency and expand the scope of carbon dioxide injection to a wider range of reservoirs. The U.S. Department of Energy estimates that next-generation CO2 EOR technology has the potential to produce more than 60 billion barrels of oil.

Carbon dioxide EOR already exists

Crude oil production in U.S. oil fields usually consists of three different stages, namely primary oil recovery, secondary oil recovery and tertiary oil recovery. In the primary oil recovery stage, gravity, reservoir natural pressure and artificial lifting technology are used to drive oil into the well, and the recovery rate is usually only about 10% of the original petroleum geological reserve (OOIP) of the reservoir. Secondary oil recovery technology is used to extend the production life of oil fields, usually by injecting water or gas to replace oil and drive it into the well. The recovery factor of secondary oil recovery can usually reach 20% to 40% of OOIP. After the end of secondary oil recovery, producers turned to tertiary oil recovery, using EOR technology to achieve oil recovery ratios of 30% to 60% of reservoir OOIP.

There are three main commercially successful EOR technologies: gas injection, chemical injection and thermal recovery. Gas injection is the most common EOR technology in the United States, accounting for nearly 60% of the United States 'oil production using EOR technology. Gas injection technology uses gases such as carbon dioxide, natural gas or nitrogen that expand in reservoirs and push additional oil into production wells, while other gases dissolve in the oil, helping to reduce the oil's viscosity and increase its flow rate. Carbon dioxide injection technology has been successfully used in the Permian Basin in western Texas and eastern New Mexico, as well as in Kansas, Mississippi, Wyoming, Oklahoma, Colorado, Utah, Montana, Alaska and Pennsylvania.

Oil and gas companies add additional CCS investment

Oil and gas producers are also increasingly investing in CCS technology, mainly to reduce carbon dioxide emissions, and such high displacement efficiency is an unexpected surprise. At present, CCS technology is welcomed by all countries, and many countries have introduced preferential policies. Recently, the governments of Canada and Alberta provided more than $15.3 billion in tax credits to the country's largest oil sands producer for CCS projects. The British government has promised to provide £ 20 billion in CCS subsidies, while U.S. oil and gas producers will receive a $85 tax credit for burying 1 ton of carbon dioxide in underground geological formations. If carbon dioxide is used for EOR, the credit will be reduced to $60 per ton.

Last year, U.S. oil and gas exploration and production giant ExxonMobil acquired CCS solutions developer Denbury in a $4.9 billion all-stock deal. Denbury recovers carbon dioxide through EOR operations and uses it to produce environmentally friendly, carbon-negative blue oil. Denbury now has the largest carbon dioxide pipeline network in the United States, with a total length of 1300 miles, including nearly 925 miles of carbon dioxide pipelines in Louisiana, Texas and Mississippi, and 10 onshore storage sites.

Last year, ExxonMobil signed a long-term contract with industrial gases company Linde on carbon dioxide emissions related to Linde's clean hydrogen project in Beaumont, Texas. ExxonMobil will transport and permanently store up to 2.2 million tons of carbon dioxide each year from Linde's plants.

U.S. oilfield services company Schlumberger recently established SLB New Energy, investing in five segments, including CCS. According to Gavin, President of SLB New Energy Company According to Rennick, the potential market size for each market segment is at least $10 billion per year.