Lifecycle Energy Accounting of Three Small Offshore Oil Fields

Grassian, David; Olsen, Daniel B.

doi:10.3390/en12142731

Cited by 2 publications

References 40 publications

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Effect of CO2 tax on energy use in oil production: waterflooding optimization under different emission costs

et al. 2022

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Tackling emissions from hydrocarbon production is a necessity because hydrocarbon production will last for a prolonged time. As a popular hydrocarbon production method, waterflooding operation is energy-intensive and accounts for significant CO2 emissions. This article investigates the effect of CO2 tax level on recovery process of already producing fields with waterflooding. Our methodology is waterflooding optimization in reservoir simulation models, specifically optimizing well-controls. Unlike traditional studies, our optimization objective comprises two components: the profitability of hydrocarbon production and an additional tax proportional to CO2 emissions. The associated CO2 emissions is estimated using a scheme developed upon an integrated model of reservoir, surface network, and topside facility. We examine our methodology on two cases with heterogeneous reservoir models. In each case, we optimize multi-scenarios enforcing different CO2 tax rates. The solutions indicate that imposing a higher CO2 tax rate reduces both emissions and hydrocarbon production. The fractional reduction of oil produced is however smaller than the emission reduction. While an increased tax rate drives the topside equipment to operate at higher efficiencies, the main effects of a higher tax rate are reduced water injection and more efficient subsurface drainage. There is a non-linear relationship between the reduced production and emissions. For increasing tax levels there are diminishing returns on lower emissions, reflecting reduced opportunities for emission reduction by changes in the drainage strategy. Some increments on the tax rate will therefore have negligible impacts on the optimal drainage strategy, and hence an adverse effect on the profitability with negligible emission reduction.

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Effect of CO2 tax on energy use in oil production: waterflooding optimization under different emission costs

et al. 2022

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Application of Techno-Economic Energy Intensity Ratios in the Oil and Gas Industry

Grassian

Bahatem

2020

Day 1 Mon, November 09, 2020

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Net Energy Analysis (NEA) provides essential information and insight that can be used to support field level decision making by oil and gas owner/operators. It contains important information that compliments traditional field level analytical methods that take into account operational and capital expense (OPEX and CAPEX) estimates, discounted cash flows, production volumes and recoverable reserves. The objective of this research is to describe practical methods of conducting field-level NEA and demonstrate the benefits via thought-provoking hypothetical case studies. One way to integrate NEA and economics is through the use of Energy Intensity Ratios (EIR) at the field level, which focuses on the ratio of the energy costs to the energy intensity of a field, two critical factors affecting both a field's economics and environmental impact. To begin with, this ratio is developed for a number of diverse hypothetical fields and provides an insightful comparison of the underlying economic drivers of different production schemes. Sensitivities on the underlying energetic drivers of a field are explored, taking into account the following recovery methods: (1) water flooding with downhole pumps for production; (2) water flooding with gas lift for production; and (3) steam injection with downhole pumps for production. Additionally, the EIR concept is applied to three small oil fields located in the Gulf of Thailand, with differing energy intensities and fuel sources. The three actual fields all employ water flooding, or water disposal, with downhole pumps for production, which makes for an interesting comparison with the first hypothetical case. The field level EIR provides an interesting perspective on the economic drivers of the field and clearly differentiates between a production scheme in which the fuel is inexpensive, e.g. from unmarketable production fluids, and the energy intensity of production is low, to a field with higher fuel costs, e.g. imported power or liquid fuels, and a corresponding high energy intensity of production. This research also describes how deviations in operational expectations can have a substantial impact on the energetics, environmental impact and economics of an oil extraction development.

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Lifecycle Energy Accounting of Three Small Offshore Oil Fields

Cited by 2 publications

References 40 publications

Effect of CO2 tax on energy use in oil production: waterflooding optimization under different emission costs

Effect of CO2 tax on energy use in oil production: waterflooding optimization under different emission costs

Application of Techno-Economic Energy Intensity Ratios in the Oil and Gas Industry

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