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Title: Economic evaluation on CO₂-EOR of onshore oil fields in China

Carbon dioxide enhanced oil recovery (CO₂-EOR) and sequestration in depleted oil reservoirs is a plausible option for utilizing anthropogenic CO₂ to increase oil production while storing CO₂ underground. Evaluation of the storage resources and cost of potential CO₂-EOR projects is an essential step before the commencement of large-scale deployment of such activities. In this paper, a hybrid techno-economic evaluation method, including a performance model and cost model for onshore CO₂-EOR projects, has been developed based on previous studies. Total 296 onshore oil fields, accounting for about 70% of total mature onshore oil fields in China, were evaluated by the techno-economic method. The key findings of this study are summarized as follows: (1) deterministic analysis shows there are approximately 1.1 billion tons (7.7 billion barrels) of incremental crude oil and 2.2 billion tons CO₂ storage resource for onshore CO₂-EOR at net positive revenue within the Chinese oil fields reviewed under the given operating strategy and economic assumptions. (2) Sensitivity study highlights that the cumulative oil production and cumulative CO₂ storage resource are very sensitive to crude oil price, CO₂ cost, project lifetime, discount rate and tax policy. High oil price, short project lifetime, low discount rate, low CO₂ cost, and lowmore » tax policy can greatly increase the net income of the oil enterprise, incremental oil recovery and CO₂ storage resource. (3) From this techno-economic evaluation, the major barriers to large-scale deployment of CO₂-EOR include complex geological conditions, low API of crude oil, high tax policy, and lack of incentives for the CO₂-EOR project.« less
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  1. Chinese Academy of Sciences (CAS), Wuhan (China). Institute of Rock and Soil Mechanics.
  2. Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
  3. China National Petroleum Corporation, Beijing (China). Drilling Research Institute.
Publication Date:
OSTI Identifier:
Grant/Contract Number:
AC05-76RL01830; XDA07040300; G-1211-17275
Accepted Manuscript
Journal Name:
International Journal of Greenhouse Gas Control
Additional Journal Information:
Journal Volume: 37; Journal Issue: C; Journal ID: ISSN 1750-5836
Research Org:
Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
Sponsoring Org:
USDOE Office of Science (SC); Chinese Academy of Sciences
Country of Publication:
United States
20 FOSSIL-FUELED POWER PLANTS; 02 PETROLEUM; CO₂-EOR; performance model; cost model; CO₂ storage resource; onshore oil fields