Economic analysis of CO2-enhanced oil recovery in Ohio: Implications for carbon capture, utilization, and storage in the Appalachian Basin region

A cost-benefit analysis is presented to evaluate the economic feasibility of carbon dioxide (CO2)-enhanced oil recovery (EOR) in Ohio. Ohio-specific data is integrated with reservoir performance and economic models to define the analysis framework. The analysis is applied to two Ohio oil fields to illustrate how the methodology can be used to constrain project economics and profitability. The regression derived from the CO2 break-even price calculated for a range of oil prices indicates that the change in the unit value of CO2 for EOR is approximately four times the corresponding change in the unit value of oil. A similar correlation observed in other oil fields suggests differences in reservoir properties may not significantly alter the price elasticity of CO2 relative to the prevailing oil price. The break-even correlation presented here represents a standalone metric that can be applied for project screening purposes to determine the price conditions at which CO2 becomes a viable purchase for EOR and a marketable asset for power plants with capture technology. (C) 2016 Elsevier Ltd. All rights reserved.