Saskatchewan Carbon Dioxide Enhanced Oil Recovery (EOR) and Storage Initiative
Saskatchewan presently has two successful commercial scale enhanced oil recovery projects at the Weyburn and Midale oilfields. Both of the projects purchase carbon dioxide from a coal gasification facility in North Dakota and inject the carbon dioxide into the oilfields. Significant economic benefit is accrued since the carbon dioxide increases oil production, and at the same time a significant environmental benefit is occurring in that the carbon dioxide is permanently stored underground in the oil reservoirs.
The Weyburn field has experienced a significant increase in oil production due to the injection of carbon dioxide. Together, these projects dispose of enough carbon dioxide to offset 100% of the carbon dioxide emissions from all of the homes in Saskatchewan. The capture of carbon dioxide, its use to enhance the recovery of crude oil, and its ultimate long-term storage deep underground collectively are an excellent example of an economic and environmental win-win situation.
The Saskatchewan Carbon Dioxide EOR and Storage Initiative will provide funding toward the replication of these successful and profitable multi-hundred million dollar EOR investments at other oilfields. This initiative will also assist SaskPower's proposed clean coal electric generating plant and TransCanada Energy's proposed polygeneration project by establishing a new market for carbon dioxide that would be captured from these proposed facilities and other potential sources of carbon dioxide.
The Saskatchewan Carbon Dioxide EOR and Storage Initiative has two distinct components:
a. Internal evaluation phase: Preparation of engineering, economic, administrative, and legal information required to assess the different barriers to implementing carbon dioxide EOR in oil fields in Saskatchewan.
Engineering information will include parameters such as the thickness and extent of the reservoir, the quality of the oil, reservoir pressure, reservoir porosity and permeability, and current oil and water production rates. The engineering information can be used to forecast the potential increase in production that would result from implementing a carbon dioxide EOR project and the associated costs, revenues, and payback period associated with the investment.
Legal information will be prepared to assist in the assessment of the options that are available to encourage diverse mineral and working interest owners within an oil field to collaborate and co-operate (including sharing the costs) in the implementation of a carbon dioxide EOR project.
b. Field pilot stage: Energy and Resources will work with industry and the federal government to jointly cost-share the design and implementation of new pilot projects in two or more Saskatchewan oil fields. The pilot projects would be undertaken to demonstrate the technical and economic potential of EOR in these reservoirs.
The pilot projects would include reservoir characterization studies, pilot project design, the drilling and injection of carbon dioxide in a small number of test wells with these smaller reservoirs for a suitable period of time, monitoring of performance of the EOR projects, and evaluation of the technical and economic feasibility of proceeding with full scale EOR projects based on the results of the pilots.
For further information about the Saskatchewan Carbon Dioxide Enhanced Oil Recovery (EOR) and Storage Initiative please contact:
Howard Loseth, P.Eng.
Director, Energy Development and Climate Change Branch
Ministry of Energy and Resources
300, 2100 - 11th Avenue
REGINA SK S4P 3Z8
Phone: 787-3379
Email:
hloseth@ir.gov.sk.ca