Economic and Environmental Aspects of CO2-EOR and Storage: A Case Study from the San Andreas Formation, West Texas

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Meeting ID: 932 0137 7630
Passcode: 013011

Presenter

Abouzar M. Paiaman, Ph.D.
Research Assistant Professor
Bureau of Economic Geology
Jackson School of Geosciences
The University of Texas at Austin

Description

This talk explores key questions surrounding the injection of anthropogenic CO₂ for enhanced oil recovery (EOR) and carbon storage. It examines optimal operational strategies that enhance oil production and CO₂ sequestration, and investigates how financial incentives—such as tax credits—may influence these strategies. Specifically, we ask: Do incentives for carbon storage alter traditional field operations? Can they enhance the environmental performance of CO₂-EOR projects? What characteristics define an efficient incentive system that maximizes both economic and environmental outcomes? We also assess the effectiveness and potential improvements to the current 45Q tax credit framework. In addition, we evaluate the feasibility and benefits of transitioning to post-EOR dedicated CO₂ storage. Can integrated CO₂-EOR and post-EOR storage systems be optimized for greater overall value? These questions are addressed through a case study focused on the San Andres Formation in the Permian Basin, West Texas.