Jackson School of Geosciences
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Browsing Jackson School of Geosciences by Subject "45Q"
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Item Carbon capture, utilization, and storage hub development on the Gulf Coast(2021) Meckel, Tim A.; Bump, Alexander P.; Hovorka, Susan D.; Treviño, R. H.The Gulf Coast of the United States hosts diverse power generation, refining, and petrochemical processing facilities, resulting in the nation’s largest volumetric concentration of industrial CO2 emissions, rivaled only by the Ohio River Valley. These emissions sources are concentrated in specific industrial clusters that allow combining emissions streams to achieve economies of scale. The region is currently undergoing globally significant industrial expansion and investment as a result of abundant and inexpensive regional unconventional natural gas availability, and is a growing exporter of liquefied natural gas (LNG). Opportunities to integrate CO2 emission management within the diverse energy chains in the region are volumetrically significant and include both concentrated and dilute sources. Significant examples of capture, transport, and storage exist. Offshore storage is particularly attractive, as it provides simplified land leasing models (single governmental land owner), proven reservoir quality, and presents fewer risks to both protected groundwater and populated areas. Projects can now take advantage of recently expanded opportunities under section 45Q of the Internal Revenue Service tax code. The region continues to evolve as an active carbon-handling hub, and is uniquely suited to justify additional investment in carbon capture, utilization, and storage (CCUS) technologies via a large-scale integrated project development. Continued development of integrated projects will allow the region to continue to grow economically within its strong fossil-fuel handling competence focus while advancing low-carbon energy technologies that maintain globally competitiveness.Item Screening and assessing the CO₂ storage potential of CO₂-EOR in onshore oil fields in Louisiana(2021-07-24) Aluge, Arnold Oseiy; Hovorka, Susan D. (Susan Davis); Nuñez-López, VanessaCO₂ enhanced oil recovery (CO₂-EOR) is a form of carbon storage that has the potential to minimize CO₂ emissions while also increasing energy output from newly recovered oil. Louisiana is the 5th largest emitter of energy-related CO₂ in the United States, with about 200 million metric tonnes of CO₂ emitted annually. Louisiana has over 20,000 oil and gas reservoirs and 287 CO₂ point sources. This study used a screening methodology at the reservoir level to identify appropriate CO₂-EOR candidate reservoirs in Louisiana and their CO₂-EOR reserve estimates. Also, an economic analysis of CO₂-EOR was carried out in this thesis, which included sensitivity and scenario analysis. In Louisiana, this study identified 217 reservoirs across 86 oil fields as potential CO₂-EOR candidates. According to the Louisiana assessment, the 217 candidate reservoirs have a total of 1.4 billion STB of OOIP and a 205 million STB incremental oil potential worth $12.3 billion. The CO₂ storage capacity of these reservoirs is projected to be 100 million metric tons. There are several other suitable candidate reservoirs in Louisiana that were not taken into account in this analysis. When combined with the reservoirs described in this thesis, the incremental oil recovered potential and CO₂ reservoir storage capacity will reach 1.5 billion STB and 2.6 billion metric tons, respectively. In Haynesville, Bayou Segnette, and Paradis, case studies were conducted for suitable CO₂-EOR candidate reservoirs. The sensitivity studies revealed that the net income and economic viability of a CO₂-EOR project are highly dependent on oil price, CO₂ cost, and tax policy. CO₂-EOR would benefit greatly from the high oil price, low CO₂ cost, and low tax policy. Given the current economic situation, the economic analysis indicates that operating successful CO₂-EOR projects would be difficult. However, the study also shows that CO₂-EOR projects can be made economically feasible by combining 1. tax reductions/exemptions in areas such as royalties, income tax, and severance tax. 2. negotiating lower CO₂ prices 3. Increase in tax credit for capturing facilities to lower CO₂ prices for storage parties