The Economics of Enhanced Oil Recovery: Estimating Incremental Oil Supply and CO_2 Demand in the Powder River Basin

摘要

Expanding the use of CO_2-enhanced oil recovery (EOR) promises to both significantly increase recovery from existing U.S. oil reserves and possibly form a bridge to large-scale CO_2 capture and sequestration. An important input into planning for such expansion are estimates of how both the supply of incremental oil and the derived CO_2 demand from EOR are likely to vary with the prices of oil and CO_2. We demonstrate how the "analog" method of predicting oil and CO_2 flows can be used to readily generate such estimates, and apply the method to Wyoming's Powder River Basin.