Economic Evaluation of CO2 Capture, Transportation, and Storage Potentials in Oklahoma

Oklahoma is known for having ample sources of CO2, pipelines and sinks where for many decades, oil and gas operators were injecting CO2 into geological formations for EOR purposes. We utilized SimCCS, an economic-engineering software tool (DOE-NETL), to integrate infrastructure related to CO2 sources, pipeline, and geological formations. The approved tax incentive program by IRS (45Q) has motivated many oil and gas operators to participate in reducing CO2 concentration and minimizing global warming effect by collecting CO2 from various sources, select the best pipeline route and the safest location to inject into geological formation for EOR purpose or deep saline aquifer for sequestration. This paper presents an economic evaluation of CO2 capture, utilization, storage (CCUS) into geological formation in the state of Oklahoma. Under this comprehensive approach, the process of capturing, transporting, and storing CO2 into geological or saline formations has been economically evaluated for different sites and routes utilizing an ad hoc simulation software (SimCCS) for integrated modeling of CCUS. The outcome of this paper determines the most optimal scenario using optimization algorithms embedded in SimCCS. This case study will mitigate the CO2 sequestration approval process when operator apply for tax credit under 45Q program. Our work will assist oil and gas operators by comparing different scenarios based on utilizing existing infrastructure, making decision in building new transportation system or new injection well to benefit the approved tax incentive program at its maximum capacity. Moreover, the outcome of this work will shed lights into future legislation demands (locally and nation-wide) to maintain CCUS momentum after its initial implementation phase is concluded.