CSLF/ADB Financing CCS Workshop -

View from the sub-surface

Dr Geoffrey Ingram,
Singapore
7th April 2011
Agenda

1. What is commercial CO2 storage?

2. What has worked before?
3. What hasn’t worked before?

Schlumberger Public
4. What would it take for commercial investment?
 Global CO2 Storage Projects / Studies
with Schlumberger Activity
Weyburn Sleipner For CCS to be
effective, it
needs to be big,
with hubs and
large scale

Schlumberger Public
storage

Illinois Basin - Decatur Project Gorgon

In Salah Callide
CO2CRC – Otway Project
Currently >60 CO2 storage projects/studies
 CCS works (on an industrial scale …)

In Salah each
Sahara desert, ~1 M-tonne
Algeria of CO2 per
year
Weyburn

Schlumberger Public
Canada, at end Sleipner
of 200km Norwegian
pipeline North Sea
Remote
Remote
regions
regions have
have
fewer
fewer public
public
awareness
awareness
issues
issues

CO
CO22 can
can be
be Carbon
Carbon
transported
transported taxes
taxes
long
long distances
distances work!
work!
by
by pipeline
pipeline

Courtesy of IEA Weyburn CO 2 Storage and Monitoring Project , BP, Sonatrach, and Statoil
4
Skill sets needed for Storage Implementation
Governm Power Oil & Gas Oil & Gas Petroche Pipeline Smelters/ General Independ
ent/ Gener Indust Servic mical comp Refine indust ent
Public ators ry e indust anies ries/ ry certifi
Stage of geosequestration Secto Comp ry ceme cation
r anies nt comp
kilns, anies
etc.

CO2 Capture -     - - - -

CO2 Transport - -     - - -

Schlumberger Public
Regional Exploration
 -   - - - - -

Location Specific Exploration - -   - - - - -

Field appraisal - -   - - - - -

Detailed computer based reservoir

simulations
- -   - - - - -

Field development - -   - - - - -

Injection - -   - - - - -

Verification
 -   - - - - 
Monitoring
 -   - - - - -

Closure - -   -  - - -

Post-closure
 -   - - - - -

Courtesy Eris O’Brien

 The EP Business Learned to Diversify Front End Risks
- Find & Develop a combination of specific sub-surface conditions

Studies, models, risk assessment

& campaign drilling

Explore

Schlumberger Public
Explore
Explore
Explore
Explore Appraise Develop Produce
Explore
Explore Volume
• Seismic
• Logs
Diverse Risks Across • Pressures
• Plays & Prospects
• Joint Ventures Rate
• Logs Thanks to A J Garnett
• Technology / Costs
• Samples
• Scale
• Tests
• Extended Well Tests
 But .. what’s happening in the CO2 world
- too early narrowing down to single options

Studies, models, site selection & - less drilling,

one “best shot” - more & more complex modelling,
- no EWT equiv.
Explore - more reliance on lab-tests
- no long term field calibration (yet)
Explore
(but natural analogues)

Schlumberger Public
Explore
Explore
Explore & Appraise Develop Inject
Explore

Containment ? Complex modelling

Diversify • “Sealing” ModelsReactive flow
Risks ? No.
Goodof to
“prospect
see Carbon tests”Storage
requiredTaskforce
for 90%
• Lab studies Coupled processes
Rate
confidence in atexploration
plans for a real least one getting
phase.to FID ?
• flow,
• Logs • mechanical, •EP Prospects 6–8
• Models • chemical
• Samples & lab CO2plans
•Also “sites”for Hubs
2 – 4 ??
Capacity Extensive modelling
• Seismic Full-earth
• Logs Emissions (source terms)
 What has worked before?

Schlumberger Public
Apologies for the Australia bias!
 CO2CRC Participants

Schlumberger Public
Established & supported under the Australian Government’s Cooperative Research Centres Program

Supporting Partners: The Global CCS Institute | The University of Queensland | Process Group | Lawrence Berkeley National Laboratory | Government of South Australia | CANSYD Australia
 Callide Oxyfuel Project – Participants

Schlumberger Public
Supporting Collaborators

Thank you
for more information: www.callideoxyfuel.com

Also CGI in QLD – DEEDI (ACALET/QLD/FED) – SCS Project Manager

 What hasn’t worked before?

Schlumberger Public
No apologies for the Australia bias!
 What does not work…(part 1)
CCS Project Owner

Appraisal Project Manager

G&G Consultant QHSE Consultant Logistics

Schlumberger Public
FEED Manager Operation Manager Site Assessment Manager

Procurement consultant Civil Works Company

Drilling Company Data Processing Contractor

Technical Consultant Seismic Company

Well Engineering Company Data Processing Contractor

Cementing Company

Seismic Consultant
Drilling Fluids Company
Modeling Contractor
Permitting Consultant Logging Company
Economist
Casing provider Slickline Company
Contract Risk Consultant
Well Head provider Well Testing Company

Liner Hanger provider Completion Company Performance Assessment

Reporting/Information
Contractor
Casing Running Company

Coring Company
What can be learnt? What would it take for
investment?
1. Private capital into CCS competes against other projects in a multinationals
portfolio
2. No business case for CCS in majority of jurisdictions (other than EOR in
limited circumstances) plus liability a major issue (all risk/no reward at
present)

Schlumberger Public
3. Need to deal with the oil and gas industry – expertise (but we’re all busy
with oil and LNG and shale……..)
4. Consortium approach works well IF INDUSTRY LED with good PM and
QHSE practices – bring together O&G, power, coal etc. around a common
goal
5. Government (by and large) cannot develop projects on their own and risk
wasting taxpayer $$ if attempting to do so – stay within financing and
regulatory domain but don’t get hung up on monopolies or esoteric risk
allocations (& PS – don’t believe capacity estimates!!)
6. CCS will be the domain of the large companies for technology, people and
likely financing
7. Need to incentivise early movers for projects & build on that momentum