CO2Oil

Company strategy, project advisory, consulting and training services for carbon management with a specialization in carbon capture and storage.


Areas of Expertise
  1. Carbon management in the oil & gas industry;
  2. Carbon dioxide flood enhanced oil recovery (EOR) techniques;
  3. Aquifer storage of carbon dioxide;
  4. Coal seam storage and enhanced coal bed methane methane production.
Opportunities for oil & gas companies in a carbon constrained world

In a world where carbon emissions are constrained, either through carbon taxes or cap-and-trade systems, companies which proactively position themselves can both reduce their business risks and find new sources of competitive advantage.
  

If oil and oil products are taxed on the amount of carbon dioxide generated in producing that oil, then oil is no longer just a commodity. Significant cost and marketing advantages will accrue to the company that delivers “low carbon” oil.

Specific opportunities might be:

  1. Oil produced from carbon dioxide flooding of old oil reservoirs (CO2 enhanced oil recovery – EOR). Carbon dioxide remains stored in the oil reservoir, so the net emissions from production are actually negative.
  2. Sequestering the carbon dioxide emitted by heavy oil upgrading. The synthetic crude oil would initially have higher carbon emissions associated with its production, but after CO2 capture and storage, emissions could be reduced to below those from conventional oil production.
  3. Gasifying petroleum coke and other residuals from petroleum refining that would otherwise have been burnt in power plants. The synthesis gas so produced can provide hydrogen, it can fuel efficient gas turbines or go into petrochemicals. Carbon can be captured from the synthesis gas prior to it use and stored in depleted oil and gas reservoirs or deep saline aquifers.
  4. Branding any distinctive stream, such as that coming from gas-to-liquids or coal-to-liquids conversion, as a niche or premium product.
  5. Blending biologically derived fuels (biofuels) with conventional petroleum products or using biomass in the production process.

If the carbon emissions from power plants, oil refineries and petrochemical plants are capped, companies that find a cost effective way of reducing their emissions will be able to

  1. Reassure shareholders that their business is sustainable, improving share performance and lowering their cost of capital.
  2. Avoid paying any penalties for exceeding their emissions quota.
  3. Sell any surplus emissions reductions into a market for carbon credits, thus generating additional revenue.

Effective carbon management will come only through :

  1. Having a carbon measurement and accounting system in place. This provides both management information and the necessary verification for regulatory and disclosure purposes.
  2. Anticipating market and regulatory demands.
  3. Simultaneously exploring a number of business options, likely to be in the areas of :
    • Improved energy efficiency.
    • Fuel and energy carriers.
    • Production technology.
    • Carbon capture and storage opportunities.