CO2 Sequestrations: Environmental Best Practices in Light of EPA/World Bank/Equator Principles, EPA Findings About Releases From Injection Zone and Applications to Enhanced Oil Recovery and Gas Development in Mexico

Abstract

Abstract

Author reviews environmental, health, and social best practices identified by EPA, the World Bank and in Equator Principles relative to CO2 Sequestration and Oil and Gas Production Operations. Author also reviews the EPA's findings regarding alleged “blowouts”. These practices are particularly relevant to expanded oil and gas production in Mexico as the oil and gas reforms are implemented and investors support expanded development of shale oil and gas in Mexico and enhanced oil recovery made possible by CO2 injection. This paper and presentation provides an example of the data required and relevant technological developments for finding and replugging old wells and advanced grouts that withstand the attack of acid gases and higher pressures associated with CO2 injection. Author also addresses related protocols recommended for permitting H2S and CO2 injection wells in Mexico.

Power companies, as well as oil and gas companies, are facing increased pressure from the public, governments, and stockholders and investors to find ways of reducing the carbon footprint of electric power and oil and gas production. EPA and the World Bank have developed regulatory programs and guidelines intended to facilitate CO2 sequestration and protect natural resources. Many see the opportunity for enhanced oil recovery (EOR) from CO2 injection as the best and most economical way to fund CO2 sequestration, since about 2/3 of the CO2 injected to encourage oil to flow and enhance production remains sequestered in the pay zone.

Author reviews the science and data that support EOR, the history of EOR especially in Texas, the state of the Market Place for CO2 for EOR, based on the updated economics of various Texas Projects and the opportunities for Mexico to become a World Leader in EOR and CO2 sequestration. Example economics are presented in the paper and presentation.

Use of the summary protocol recommended for both EOR and CO2 can serve as an economic feasibility tool and gate-keeper for identifying the best projects to fund in Mexico as the oil and gas reforms are implemented.

AAPG Datapages/Search and Discovery Article #90260 © 2016 AAPG/SEG International Conference & Exhibition, Cancun, Mexico, September 6-9, 2016