1. SPE 113975 The Potential For Additional Carbon Dioxide Flooding Projects in the United States SPE 113975 April 23, 2008 Hitesh Mohan – INTEK, Inc. Marshall Carolus – INTEK, Inc. Khosrow Biglarbigi – INTEK, Inc. INTEK Presented at the 2008 SPE/DOE Symposium on Improved Oil Recovery

2. SPE 113975 2 CO 2 EOR: A Proven and Established Technology Technology applied for nearly 30 years In 2006, 80 projects in the United States Daily production reached 234 MBbl/Day Active CO 2 EOR Projects Daily CO 2 EOR Production

3. SPE 113975 3 How Can It Become More Widespread? Two Constraints CO 2 Sources & Candidate Fields

4. SPE 113975 4 Existing CO 2 Sources Annual CO 2 Produced: 1094 Bcf/yr (60.81 MMtn/yr) Or ~ 3 BCF/Day Daily Rate MMCF/D Wyoming Colorado Jackson DomeDenbury-JacksonMississippi220 CortezTexas1,300 McElmo CreekUtah60 Sheep Mountain Dome Sheep MountainTexas480 Bravo DomeBravoTexas482 Val Verde Gas PlantsVal VerdeTexas70 Oklahoma Fertilizer Plant Total Daily Rate2,997 LaBarge 350 SourcePipelineStates Supplied 35 McElmo Dome Local PipelineOklahoma Oil and Gas Journal

5. SPE 113975 5 Delivered CO 2 Costs Cost is dependant upon oil price Capture costs are minimal Mostly transportation Regional prices range from $1.41 to $2.82

6. SPE 113975 6 Potential CO 2 Sources: Industrial Industrial CO 2 emissions have grown more than 20% since 1990 In 2006, the U.S. industrial CO 2 emissions were more than 100 Tcf Significant volumes can be captured and used for EOR Industrial CO 2 Emissions 20% Increase

7. SPE 113975 7 Industrial Sources of CO 2 Source: Natcarb, RFA, INTEK

8. SPE 113975 8 Not Every Source Can Be Used for EOR Sources need to be screened according to –Concentration –Emission Volume –Proximity to candidate fields A database of screened sources was developed Approximately 25 Tcf could be captured and transported annually - Can we meet the CHALLENGE ?

9. SPE 113975 9 Screened Industrial Sources

10. SPE 113975 10 How Much Will Industrial CO 2 Cost? CO 2 Price = Cost of Capture + Pipeline Tariff Capture cost is dependent upon technology Pipeline Tariff depends upon distance of candidate fields to source

11. SPE 113975 11 Cost of Capturing Industrial CO 2 Capture technology are source specific Capture Cost Sources: Global Energy Technology Strategy Program, NETL, and others

12. SPE 113975 12 Where are the CO 2 EOR Candidate Fields?

13. SPE 113975 13 How Close are the Sources to the Fields?

14. SPE 113975 14 Identifying source to sink distances GIS was developed to locate source to sink Average distances for various source to a group of sinks were calculated Pipeline tariffs were estimated based on: –Distance –Volume of CO2 –Compression

15. SPE 113975 15 Industrial CO 2 Could Cost… CO 2 Price = Cost of Capture + Pipeline Tariff Capture cost is dependent upon Source –$0.50 to $2.81 per Mcf Pipeline Tariff depends upon distance of candidate fields to source –$0.39 to $0.51 per Mcf

16. SPE 113975 16 Total Wellhead CO 2 Prices & Volumes 3,082 Bcf/Yr ($3.2-$3.2 Mcf) 961 Bcf/Yr ($0.9-$3.2 Mcf) 1,178 Bcf/Yr ($1.0-$3.2 Mcf) 13,739 Bcf/Yr ($0.9-$3.2 Mcf) 5,557 Bcf/Yr ($0.9-$3.2 Mcf) 223 Bcf/Yr ($1.0-$3.2 Mcf) 1,034 Bcf/Yr ($1.0-$1.0 Mcf) Total Volume of CO 2 Available Wellhead Prices (Capture + Transportation) Industrial CO 2 : 25 Tcf/Yr Natural CO 2 : 1 Tcf/Yr 3,082 Bcf/Yr ($2.8-$3.2 Mcf) 961 Bcf/Yr ($0.9-$3.2 Mcf) 1,178 Bcf/Yr ($1.0-$3.2 Mcf) 13,739 Bcf/Yr ($0.9-$3.2 Mcf) 5,557 Bcf/Yr ($0.9-$3.2 Mcf) 223 Bcf/Yr ($1.0-$3.2 Mcf) 1,034 Bcf/Yr ($1.0-$1.50 Mcf) Total Volume of CO 2 Available Wellhead Prices (Capture + Transportation) Industrial CO 2 : 25 Tcf/Yr Natural CO 2 : 1 Tcf/Yr

17. SPE 113975 17 When Will the CO 2 Be Available? Availability and ultimate market penetration depends on : –Source –Technology –Location Sample Market Development Curve

18. SPE 113975 18 Incremental Production 25 Year Cumulative Production: 4.7 Billion Bbl Daily Oil Production from Additional CO 2 EOR

19. SPE 113975 19 Impact of Injection Volume on Production 0.4 HCPV 1.0 HCPV Daily Oil Production from Additional CO 2 EOR

20. SPE 113975 20 Additional benefit: CO 2 Storage Daily CO 2 Stored in Projects 0.4 HCPV 1.0 HCPV

21. SPE 113975 21 Summary CO 2 EOR is a mature technology Widespread application is constrained by availability of CO 2 and candidate fields Nearly 25 Tcf of Industrial CO 2 can be captured and transported to nearby fields There are 1,673 candidate fields in Onshore Lower 48 Prices at the wellhead could range between $1 and $3 per Mcf Up to 1.2 MMBbl/Day of incremental production could be realized in all regions of the U.S. Up to 5.5 Bcf/Day of CO 2 could be stored at the same time