Economics show CO2 EOR potential in central Kansas

Carbon dioxide (CO₂) enhanced oil recovery (EOR) may be the key to recovering hundreds of millions of bbl of trapped oil from the mature fields in central Kansas. Preliminary economic analysis indicates that CO₂ EOR should provide an internal rate of return (IRR) greater than 20%, before income tax, assuming oil sells for \$20/bbl, CO₂ costs \$1/Mcf, and gross utilization is 10 Mcf of CO₂/bbl of oil recovered. If the CO₂ cost is reduced to \$0.75/Mcf, an oil price of $17/bbl yields an IRR of 20%. Reservoir and economic modeling indicates that IRR is most sensitive to oil price and CO₂ cost. A project requires a minimum recovery of 1,500 net bbl/acre (about 1 million net bbl/1-mile section) under a best-case scenario. Less important variables to the economics are capital costs and non-CO₂ related lease operating expenses.