schlumberger carbon services economics & risk of scaling up for carbon storage john tombari vice...
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Schlumberger Carbon Services
Economics & Risk of Scaling Up for Carbon Storage
John TombariVice President North & South AmericaSchlumberger Carbon ServicesNARUC Mar 31 2008
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Schlumberger Carbon Services
Storage fundamentals
CO2
?
Post injectionSaline Formation
Caprock
• Capacity: (match to source & estimate plume shape)• bulk volume (seismic) X porosity (logs) X “storage factor”
• Injectivity (how many wells)• permeability from core, log & well test
• Containment (caprock integrity, fractures, wellbore integrity, faults)
5 miles
3000 ft
3500 ft
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Schlumberger Carbon Services
CO2 Technology
Seismic Services
Wellbore Integrity Evaluation
Drilling & Completion
Cementing
Logging, Testing & Sampling
Lab Analysis
Data Processing
Modeling & Prediction
Data Management
Monitoring
What resources will be needed?
People + Technology
&
People
Geology Geophysics
Reservoir Engineer Drilling Engineer
Petrophysics Completion Engineer
Geomechanics Geochemistry
Hydrogeology Economics
HSE Injection
Project Management
People
Geology Geophysics
Reservoir Engineer Drilling Engineer
Petrophysics Completion Engineer
Geomechanics Geochemistry
Hydrogeology Economics
HSE Injection
Project Management
Tools for Team Integration
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Schlumberger Carbon Services
Country
300 miles
3000
ft.
300 miles
3000
ft.
How can uncertainty be reduced?
.
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Schlumberger Carbon Services
Country
300 miles
3000
ft.
300 miles
3000
ft.
How can uncertainty be reduced?
.300 miles
3000
ft.
300 miles
3000
ft.
Regional
sand sandsandsandsand sandsand sandsand sandsandsand sandsandsandsand sandsand sandsand sandsand
10 miles
sand sandsandsandsand sandsand sandsand sandsandsand sandsandsandsand sandsand sandsand sandsand
10 miles
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Schlumberger Carbon Services
Country
300 miles
3000
ft.
300 miles
3000
ft.
How can uncertainty be reduced?
.300 miles
3000
ft.
300 miles
3000
ft.
Regional
sand sandsandsandsand sandsand sandsand sandsandsand sandsandsandsand sandsand sandsand sandsand
10 miles
sand sandsandsandsand sandsand sandsand sandsandsand sandsandsandsand sandsand sandsand sandsand
10 miles
sandsand
sandsand sandsand sandsand
sandsand sandsand
sandsand sandsand sandsand
Local
10 miles
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Schlumberger Carbon Services
sandsandsandsand sandsand sandsand
sand
sand sandsandsandsand sandsand sandsand sandsand
How can uncertainty be reduced?
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Schlumberger Carbon Services
How will technology be valued?
We can see millions of years in the past
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Schlumberger Carbon Services
low resolution baseline data high resolution data
Overlay of 1992 & 2001 data Overlay of 2001 & 2003 data
Technology Planning is important (4-D Seismic)
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Schlumberger Carbon Services
How can we reduce costs?
Performance & Risk(Functions) Capacity, Injectivity, Containment >>>> (Stakes) HSE, Cost, Image
Uncertainty
Possible site Probable site Appoved site
Time
Tota
l cos
t & u
ncer
tain
ty
1 yr 2-3 yrs
High
Low
Prelim.study
30 yrs
Total cost
ConstructionIncludes time
for plant construction
ConstructionIncludes time
for plant construction
Detailedcharacterization
Detailedcharacterization
Data acquisition
Data acquisition
DesignDesign
Model driven Monitoringplan
Monitoringplan
50 yrs 100+
Equalization
Long termEnvironmentalmonitoring
Long termEnvironmentalmonitoring
Living model
Prediction
Model update
Injection &monitoring
Injection &monitoring
Performance & Risk(Functions) Capacity, Injectivity, Containment >>>> (Stakes) HSE, Cost, Image
Performance & Risk(Functions) Capacity, Injectivity, Containment >>>> (Stakes) HSE, Cost, Image
UncertaintyUncertainty
Possible site Probable site Appoved site
Time
Tota
l cos
t & u
ncer
tain
ty
1 yr 2-3 yrs
High
Low
Prelim.study
30 yrs
Total cost
ConstructionIncludes time
for plant construction
ConstructionIncludes time
for plant construction
ConstructionIncludes time
for plant construction
ConstructionIncludes time
for plant construction
Detailedcharacterization
Detailedcharacterization
Data acquisition
Data acquisition
Detailedcharacterization
Detailedcharacterization
Data acquisition
Data acquisition
Detailedcharacterization
Detailedcharacterization
Data acquisition
Data acquisition
DesignDesign
Model driven Monitoringplan
Monitoringplan
50 yrs 100+
Equalization
Long termEnvironmentalmonitoring
Long termEnvironmentalmonitoring
Long termEnvironmentalmonitoring
Long termEnvironmentalmonitoring
Living model
Prediction
Model update
Injection &monitoring
Injection &monitoring
Living model
Prediction
Model update
Injection &monitoring
Injection &monitoring
Living model
Prediction
Model update
Living modelLiving model
Prediction
Model update
Injection &monitoring
Injection &monitoring
Injection &monitoring
Injection &monitoring
• Area of review estimate• Ownership?
• Area of review refined• Permit application?
• Periodic review? • Closure?• Release of Liability?
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Schlumberger Carbon Services
Summary
• Non-technical factors are the key to progress• Clear regulatory guidelines & and long term liability protection are
needed for commercial involvement.• Resource requirements will be large• Uncertainties can be managed with technology.• Technology must be valued• Proper baseline characterization is the key to reducing cost:
• number of wells, frequency of monitoring, public acceptance