Monday, 11 August 2014

CO2 EOR Market



carbon dioxide produced from industries is used to extract crude oil from the earth’s crust. Hence, it saves the environment from getting polluted. Earlier disposal of greenhouse gas such as carbon dioxide was a huge area of concern, but with the advancements in technology carbon dioxide is easily utilized to extract crude oil, thereby protecting the environment from getting harmed. Carbon dioxide injection technology is expected to increase for two reasons which are: disposal of greenhouse gas and increase in oil recovery through miscibility. Easily available large quantities of CO2 reduces down the cost of crude oil extraction as raw material is available in plenty and accessibility for carbon capture storage are also easier for exploration and production (E&P) companies. Therefore, an extensive CO2 supply pipeline network has been developed in this region. This extensive network helps to meet the upward CO2 demand from CO2 EOR sub-industry and in future it is expected that CO2 injection will be the dominant technology of all the three EOR technologies. Other gases such as nitrogen and hydrogen are also used for the extraction of crude oil but to a lesser extent than CO2.

Permian Basin has strong support from local and state government that drives the development of the CO2 supply network thus the CO2 EOR market. These norms and regulations provide tax benefits and incentives for carbon capture and storage plants. Easily available large quantities of CO2 in the U.S makes Permian basin a preferred choice for oil exploration companies to extract crude oil from a field in Permian region. It is estimated that in the future Permian basin will be one of the most reliable sources of crude oil supply. Considering the global CO2 EOR market, Permian Basin CO2 EOR market has dominated the global CO2 EOR market in terms of oil production due to the high number of projects. Hence, U.S is projected to be a net exporter of crude oil in the coming years.


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