Screening and assessing the CO₂ storage potential of CO₂-EOR in onshore oil fields in Louisiana

CO₂ 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