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Title: Assessment of CO2 Storage Resources in Depleted Oil and Gas Fields in the Ship Shoal Area, Gulf of Mexico

Abstract

The Gulf of Mexico is one of the most important regions in the United States for energy resources and infrastructure. Gulf of Mexico federal offshore oil and gas production accounts for 17% of total U.S. crude oil production and 5% of total U.S. gas production (EIA Gulf of Mexico Fact Sheet). This region presents an excellent combination of high need and significant opportunity for large scale geologic storage of CO2. The Ship Shoal Area is located about 20 miles offshore Louisiana within the Gulf Coast federal waters. Miocene and Pliocene sediments in the Ship Shoal Area are proven to provide excellent and secure traps for oil and gas. The Ship Shoal Area contains a large number of depleted oil and gas fields either currently abandoned, or planned for abandonment by 2025, which may provide very significant potential CO2 storage capacity. GeoMechanics Technologies conducted a comprehensive research project to better characterize Neogene sediments in the Ship Shoal Area for high volume CO2 storage. The data generated from literature, well data, well log, and formation evaluation were input into Rockwork 16 geologic software to create a detailed geologic model for the Ship Shoal study area. The geologic grids were then fed intomore » TOUGH2, the gas migration model software and FLAC 3D, the geomechanical model software. The fluid flow modeling for both the Miocene and Pliocene simulation from both Block 107 and Block 84 indicated that Pliocene and Miocene are a good reservoir for the CO2 sequestration. Thirty years of CO2 injection (at a rate of 1 million metric tons CO2 per year) and 30 years of observation simulations were run with the fluid flow modeling. The 3D geomechanical modeling for Ship Shoal Block 107 and Block 84 were developed to evaluate induced surface deformation and potential fault reactivation after 30 years CO2 injection at base of Pliocene and at upper Miocene injection locations. Evaluation results indicate low to no risks for fault slips or fault reactivation. Twelve well bores and 76 well bores for Ship Shoal Blocks 84 and 107 respectively were reviewed for their cement history. Most wells (57 out of 76 and 7 out of 12 wells in Ship Shoal Block 107 and 84 respectively) have good integrity. Nineteen and 5 wells (in Ship Shoal Block 107 and 84 respectively) with no top plug, incomplete cement or Plug and Abandonment information are given yellow cautionary indicators. These cautionary wells may provide leakage paths of CO2 through the well bores to the USDWs. Using our Quantitative Risk & Decision Analysis Tool (QRDAT) for caprock integrity evaluation, we compared Ship Shoal’s risk to that of In Salah, Sleipner, Kevin Dome, Loudon, Illinois Industrial CCS and Wilmington Graben. We found the risk at the Ship Shoal Blocks 84 and 107 fields are similar to the known CO2 active sequestration sites, but lower than the Wilmington Graben turbidities offshore California studied site. The risk of natural seismicity in the Gulf of Mexico is relatively low. Geomechanics Technologies has documented the top 25 CO2 emission sources within the close proximity of the Ship Shoal Block 84 and 107 fields. All the offshore and onshore pipelines have been digitized and can be viewed in an interactive website (http://www.geomechanicstech.com/shipshoal.html). We also performed a feasibility study on the potential for converting existing oil or gas pipelines for CO2 transport. There are abandoned, idled and retired onshore and offshore pipelines. However, there is no standard specification for maximum pipeline pressures needed for CO2 transport. It is a function of design, materials, and testing provided; thus it will be the responsibility of the pipeline operator to correctly determine, maintain and operate within the limits of the pipelines. There are a few transit corridors extending from onshore Louisiana (Cailou Bay) to offshore trunk-lines. The cost for constructing a pipeline has increased about 46% from 2015 to an average cost of $5,064,046 per mile in 2016. We use the NETL CO2 storage resource mass estimate to calculate the potential resources for Ship Shoal Block 84 and 107 fields using the depleted oil and gas reservoir volume and sand volume generated from our geologic modeling. The estimated storage resource results are greater when using the sand volumes derived through geologic modeling than the oil and gas reservoir data. The difference is due to the depleted oil and gas reservoir information not accounting for the water-flooded sand located below the oil/gas-water contact or unproductive sand units. Resource calculation using the sand volume obtained through geologic modeling overestimate the storage capacity as the model accounts for all sand within the formation, not just the interconnected sand.« less

Authors:
 [1];  [1];  [1];  [1];  [1];  [1];  [1];  [1]
  1. GeoMechanics Technologies
Publication Date:
Research Org.:
Geomechanics Technologies
Sponsoring Org.:
USDOE
OSTI Identifier:
1433850
Report Number(s):
DOE-GMT-0026041-F
DOE Contract Number:  
FE0026041
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
02 PETROLEUM; CO2 sequestration, Ship Shoal

Citation Formats

Bruno, Mike, Young, Jean, Oliver, Nicky, Lao, Kang, Wang, Wenli, Diessl, Julia, Ramos, Juan, and Xiang, Jing. Assessment of CO2 Storage Resources in Depleted Oil and Gas Fields in the Ship Shoal Area, Gulf of Mexico. United States: N. p., 2018. Web. doi:10.2172/1433850.
Bruno, Mike, Young, Jean, Oliver, Nicky, Lao, Kang, Wang, Wenli, Diessl, Julia, Ramos, Juan, & Xiang, Jing. Assessment of CO2 Storage Resources in Depleted Oil and Gas Fields in the Ship Shoal Area, Gulf of Mexico. United States. https://doi.org/10.2172/1433850
Bruno, Mike, Young, Jean, Oliver, Nicky, Lao, Kang, Wang, Wenli, Diessl, Julia, Ramos, Juan, and Xiang, Jing. 2018. "Assessment of CO2 Storage Resources in Depleted Oil and Gas Fields in the Ship Shoal Area, Gulf of Mexico". United States. https://doi.org/10.2172/1433850. https://www.osti.gov/servlets/purl/1433850.
@article{osti_1433850,
title = {Assessment of CO2 Storage Resources in Depleted Oil and Gas Fields in the Ship Shoal Area, Gulf of Mexico},
author = {Bruno, Mike and Young, Jean and Oliver, Nicky and Lao, Kang and Wang, Wenli and Diessl, Julia and Ramos, Juan and Xiang, Jing},
abstractNote = {The Gulf of Mexico is one of the most important regions in the United States for energy resources and infrastructure. Gulf of Mexico federal offshore oil and gas production accounts for 17% of total U.S. crude oil production and 5% of total U.S. gas production (EIA Gulf of Mexico Fact Sheet). This region presents an excellent combination of high need and significant opportunity for large scale geologic storage of CO2. The Ship Shoal Area is located about 20 miles offshore Louisiana within the Gulf Coast federal waters. Miocene and Pliocene sediments in the Ship Shoal Area are proven to provide excellent and secure traps for oil and gas. The Ship Shoal Area contains a large number of depleted oil and gas fields either currently abandoned, or planned for abandonment by 2025, which may provide very significant potential CO2 storage capacity. GeoMechanics Technologies conducted a comprehensive research project to better characterize Neogene sediments in the Ship Shoal Area for high volume CO2 storage. The data generated from literature, well data, well log, and formation evaluation were input into Rockwork 16 geologic software to create a detailed geologic model for the Ship Shoal study area. The geologic grids were then fed into TOUGH2, the gas migration model software and FLAC 3D, the geomechanical model software. The fluid flow modeling for both the Miocene and Pliocene simulation from both Block 107 and Block 84 indicated that Pliocene and Miocene are a good reservoir for the CO2 sequestration. Thirty years of CO2 injection (at a rate of 1 million metric tons CO2 per year) and 30 years of observation simulations were run with the fluid flow modeling. The 3D geomechanical modeling for Ship Shoal Block 107 and Block 84 were developed to evaluate induced surface deformation and potential fault reactivation after 30 years CO2 injection at base of Pliocene and at upper Miocene injection locations. Evaluation results indicate low to no risks for fault slips or fault reactivation. Twelve well bores and 76 well bores for Ship Shoal Blocks 84 and 107 respectively were reviewed for their cement history. Most wells (57 out of 76 and 7 out of 12 wells in Ship Shoal Block 107 and 84 respectively) have good integrity. Nineteen and 5 wells (in Ship Shoal Block 107 and 84 respectively) with no top plug, incomplete cement or Plug and Abandonment information are given yellow cautionary indicators. These cautionary wells may provide leakage paths of CO2 through the well bores to the USDWs. Using our Quantitative Risk & Decision Analysis Tool (QRDAT) for caprock integrity evaluation, we compared Ship Shoal’s risk to that of In Salah, Sleipner, Kevin Dome, Loudon, Illinois Industrial CCS and Wilmington Graben. We found the risk at the Ship Shoal Blocks 84 and 107 fields are similar to the known CO2 active sequestration sites, but lower than the Wilmington Graben turbidities offshore California studied site. The risk of natural seismicity in the Gulf of Mexico is relatively low. Geomechanics Technologies has documented the top 25 CO2 emission sources within the close proximity of the Ship Shoal Block 84 and 107 fields. All the offshore and onshore pipelines have been digitized and can be viewed in an interactive website (http://www.geomechanicstech.com/shipshoal.html). We also performed a feasibility study on the potential for converting existing oil or gas pipelines for CO2 transport. There are abandoned, idled and retired onshore and offshore pipelines. However, there is no standard specification for maximum pipeline pressures needed for CO2 transport. It is a function of design, materials, and testing provided; thus it will be the responsibility of the pipeline operator to correctly determine, maintain and operate within the limits of the pipelines. There are a few transit corridors extending from onshore Louisiana (Cailou Bay) to offshore trunk-lines. The cost for constructing a pipeline has increased about 46% from 2015 to an average cost of $5,064,046 per mile in 2016. We use the NETL CO2 storage resource mass estimate to calculate the potential resources for Ship Shoal Block 84 and 107 fields using the depleted oil and gas reservoir volume and sand volume generated from our geologic modeling. The estimated storage resource results are greater when using the sand volumes derived through geologic modeling than the oil and gas reservoir data. The difference is due to the depleted oil and gas reservoir information not accounting for the water-flooded sand located below the oil/gas-water contact or unproductive sand units. Resource calculation using the sand volume obtained through geologic modeling overestimate the storage capacity as the model accounts for all sand within the formation, not just the interconnected sand.},
doi = {10.2172/1433850},
url = {https://www.osti.gov/biblio/1433850}, journal = {},
number = ,
volume = ,
place = {United States},
year = {2018},
month = {3}
}