Carbon capture and storage could boost Sask. oil recovery revenues to $2B in 2025
Date: 27 Sep 2013
Accessibility: Publicly available
Saskatchewan could use carbon capture and storage (CCS) technology to boost revenues from enhanced oil recovery (EOR) projects from just over $500 million a year in 2015 to more than $2 billion a year by 2025, according to a study by Integrated CO2 Network (ICON). When carbon dioxide is captured from coal-fired generating stations or other industrial processes and injected into nearly depleted oil reservoirs through EOR projects, it can increase the recovery rate from those formations by five to 20 per cent. For example, the Cenovus EOR project has been injecting about one million tonnes of CO2 a year into oilfields in the Weyburn area for over a decade and producing about 16,000 barrels of oil per day. “We see the potential is in the range of 30 to 40 megatonnes (of CO2) per year for EOR production,’’ said Robert Craig, director of strategy and technology for ICON, a Calgary-based carbon capture and storage initiative supported by Canadian energy companies. “We forecast EOR revenues (from CO2 injection) in excess of $2 billion by 2025,” Craig said, adding that government also receives increased tax and royalty revenue from the incremental oil production from EOR.