The carbon footprint of CCS-EOR projects

For years, experts have debated a controversial climate solution: capturing carbon emissions and pumping them into oilfields to boost production. This technique, known as carbon capture and storage with enhanced oil recovery (CCS-EOR), promises to reduce emissions while extending the life of oil reserves. 

Now, KAPSARC researchers Hossa Almutairi and Axel Pierru are bringing fresh insights to the debate, introducing a new way to evaluate how government support for CCS-EOR projects affects global CO₂ emissions. Unlike previous complex models, their approach offers clear formulas that quantify how CCS-EOR affects the global oil market, making it easier to understand its overall environmental impact. 

The researchers found that supporting CCS-EOR technology can help reduce global emissions, but the extent depends on the specific technique used. For example, storing a ton of CO₂ through EOR can reduce global emissions by 0.05 to 0.60 tons. This calculation takes into account the need to offset the emissions from the extra oil produced through EOR. 

“CCS-EOR remains a mitigation technology since capturing and storing a ton of CO₂ reduces global emissions, even after the full decarbonization of the additional EOR oil produced.”  

Hossa Almutairi

The study also evaluated the carbon footprint when CO₂ is stored through EOR. For every ton of CO₂ stored using conventional EOR, approximately 3.4 barrels of oil can be labelled carbon-free when considering all emissions from production to consumption. This number rises to 14.4 barrels if only oil production emissions are considered. 

Comparing their findings to the tax credits offered by the 2022 US Inflation Reduction Act (IRA) for CCS-EOR projects, they found that the IRA’s incentives are slightly higher than what their calculations suggest is necessary, providing useful information for future policy decisions. 

“CCS-EOR remains a mitigation technology since capturing and storing a ton of CO₂ reduces global emissions, even after the full decarbonization of the additional EOR oil produced,” says Almutairi. “This underscores its role in helping countries meet their net-zero emissions targets.” 

This research provides important insights for policymakers, industry leaders, and environmental advocates. It highlights the need for a comprehensive economic assessment of how government support for CCS-EOR can contribute to fighting climate change. It also shows that CCS-EOR could be instrumental in achieving net-zero emissions, while emphasizing the importance of careful analysis in creating effective policies for carbon capture technologies. 

Reference

Almutairi, H. & Pierru, A. Mitigating climate change while producing more oil: Economic analysis of government support for CCS-EOR. Energy J. 45, SI1 (2024).