Michigan eor studyI found a very interesting study that explains the potential for co2 eor in MIchigan. Interesting information for Michigan can be found in pages 55-59 and in Appendix E where they explain costs associated with drilling and other related expenses for traditional and eor oil production in Michigan.
https://fossil.energy.gov/programs/oilgas/publications/eor_co2/Illinois_&_Michigan_Basin_Document.pdf
Interesting excerpt from the study:
Future CO2-EOR Potential. Michigan contains 11 large oil reservoirs that are
candidates for miscible or immiscible CO2-EOR technology. The potential for
economically developing these oil reservoirs is examined first under Base Case
financial criteria that combine an oil price of $30 per barrel, CO2 supply costs
($1.50/Mcf), and a high risk rate of return (ROR) hurdle (25% before tax).
Under “Traditional Practices” (involving a small volume of high cost CO2 injection
and high risk financial conditions), miscible CO2 flooding would not be economically
attractive in the large Michigan oil fields. Applying “State-of-the-art Technology”
(involving higher volume CO2 injection, immiscible EOR, and lower risk), one large oil
reservoir in Michigan becomes economically feasible, providing 80 million barrels of
additional oil recovery,
In order to be economically viable (using $30 oil), co2 flooding must be done using "state-of-the-art technology" providing higher volume co2 injection. The study was done in 2006 and I wonder what they considered to be "state of the art" thechnology for co2 injection at that time. WEE's client has been able to double the injection rate using Powerwave. If the client was using what was tought to be the best injection technology, what would this increase in injection volume mean for the financial evaluation of co2 projects in Michigan?