CO Enhanced Oil Recovery 2 Quick Facts

CO

2

Enhanced Oil Recovery

NRG FACT SHEET

Quick Facts

Petra Nova is leveraging

Enhanced Oil Recovery

(EOR) to support continuing oil production at the West Ranch Oil Field in Jackson County, Texas.

CO

2

-EOR can revitalize mature oil fields, allowing them to produce significantly more oil.

CO

2

-EOR has been a safe part of oil production in

Texas for 40 years.

Use of CO

2

for EOR will increase domestic oil supply and keep CO

2

out of the atmosphere.

Background

• Significant volumes of conventional oil remaining in U.S. onshore oil reservoirs could be produced by the injection of carbon dioxide (CO

2

).

• CO

2

enhanced oil recovery (CO

2

-EOR) has been constrained by an inadequate CO

2

supply.

• Use of CO

2

-EOR in more basins and reservoirs will increase domestic oil supply and trap CO

2

in deep rock formations.

• Approximately 8% of oil produced in the U.S. is from CO

2

-EOR.

U.S. CO

2

EOR Resources

• Based on information available in the DOE/

NETL Comprehensive Oil and Gas Analysis

Model, a total of 1,673 fields/reservoirs have been identified as candidates for CO

2

flooding in the United States.

• It is estimated that large Gulf Coast oil reservoirs contain approximately 6 billion barrels of oil recoverable through Enhanced

Oil Recovery. EOR at this scale will require approximately 50 Trillion Cubic Feet of CO

2

.

• Application of CO

2

-EOR in candidate reservoirs in other basins depends on the economic availability of CO

2

from industrial sources.

Total Oil in Place in Target CO 2

EOR Reservoirs = 146 Billion

Remaining

Mobile Oil,

30 Billion

Cumulative

Production,

25 Billion

Proved

Reserves,

2 Billion

Remaining

Immobile Oil,

89 Billion

Target for

CO

2

EOR

Source: NETL COGAM Model (2004) NRG

& Associates Database (2004)

NRG FACT SHEET

WA Parish

Electrical Generating

Station

Flue Gas with CO

2

CO

2

capture system

90% CO

2

-free processed flue gas

CO

2

return

Pure CO

2 for EOR

CO

2

-Oil Separator

Oil combined with EOR CO

2

Oil sales

Naturally sealed formation (Reservoir)

CO

2

EOR Technology

• CO

2

injection in oil reservoirs can produce oil unrecovered by primary production or secondary water-flooding. CO

2

acts as a solvent that reduces viscosity and enables the oil to flow to the production well. When production is complete, the CO

2

remains trapped in deep rock formations.

CO

2

Sources and EOR Market

• Natural sources of CO

2

now supply about 950 billion cubic feet per year for

CO

2

-EOR projects. Approximately 75 percent is used in projects in West Texas

(the Permian Basin). Other states with

CO

2

-EOR projects include Colorado,

Wyoming and Mississippi.

• CO

2

-EOR can provide a significant market for “EOR-ready CO

2

” from industrial sources, such as coal-fired power plants.

• The potential market is about 380 trillion cubic feet or about 20 billion metric tons of CO

2

. Future oil prices and CO

2

cost will determine how much of this market can be economically captured.

CO

2

EOR Environmental

Factors

Environmental concerns associated with CO

2

-EOR development differ from those of other unconventional oil resources.

• Most production potential exists in already producing oil fields. So, many environmental concerns are already addressed within the existing regulatory oversight framework for these fields.

• CO

2

captured from the production well is recycled, so CO

2

emissions are negligible.

FOR MORE INFORMATION, CONTACT:

David Knox

NRG Energy

1000 Main, Houston, Texas 77002

Office: 832.357.5730

david.knox@nrgenergy.com

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