Friedmann, S. Julio1, Susan D. Hovorka2
(1) University of Maryland, College Park, MD
(2) The University of Texas at Austin, Austin, TX
ABSTRACT: Just Do It! Large-Scale Storage of Greenhouse Gas in the United States and Abroad
We are entering a carbon-constrained world, and it is widely anticipated that in the
United States and many countries abroad, a limitation or cost will be placed on greenhouse
gas (GHG) emissions, especially carbon dioxide. Geological storage of carbon dioxide is
likely to emerge as a critical technology pathway to GHG reduction. Our industry has
effectively deployed this technology in the form of CO2 floods for enhanced oil recovery
(EOR), and the only active large-scale anthropogenic CO2 storage projects are driven by
industry needs (Sleipner and Weyburn). These projects are currently profitable. If cost
for venting CO2 increases (e.g., a tax or cap and trade system), many marginal projects
may become economic through the trading of storage credits on an open market. Such markets
exist today in Europe, and a test market exists in the United States through the Chicago
Climate Exchange. In addition, as the costs of CO2 capture decrease, many additional areas
will become prospects for EOR. In the near term, however, Federal support is needed to
incubate large-scale projects through field experiments and demonstration projects.
The essential tools for geological carbon storage come from the petroleum industry’s
EOR practices, and we already know a great deal about the processes involved in safe CO2
shipping, handling, injection, and disposal. Carbon storage presents a potentially large
new market for this geoscience and engineering expertise. The industry should use the
knowledge it has at hand to help shape policy that will best serve both industrial and
environmental goals. Rapid evolution of regulatory frameworks for engineering, monitoring,
and long-term efficacy will allow industrial competitors to rapidly determine the economic
viability of any potential project. Aggressive development of demonstration projects will
improve the industry’s overall competitiveness and is worth pursuing as a
risk-management strategy independent of any specific policy rubric (e.g., Kyoto)
AAPG Search and Discovery Article #90026©2004 AAPG Annual Meeting, Dallas, Texas, April 18-21, 2004.