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Modeling the Transition from Enhanced Oil Recovery to Geologic Carbon Sequestration
Author(s) -
Bandza Alexander J.,
Vajjhala Shalini P.
Publication year - 2014
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.2603
Subject(s) - carbon sequestration , revenue , software deployment , enhanced oil recovery , natural resource economics , carbon capture and storage (timeline) , fossil fuel , environmental science , environmental economics , carbon dioxide , petroleum engineering , business , computer science , economics , waste management , geology , climate change , engineering , chemistry , finance , oceanography , organic chemistry , operating system
Policy debates suggest a future role for geologic carbon sequestration. As geologic sequestration (GS) evolves from enhanced oil recovery operations to an emissions‐mitigation option, regulations must evolve to manage the risks of carbon dioxide (CO 2 ) migration. We develop an engineering‐economic model to understand the key deployment pathways in this transition. Major results reveal that dedicated CO 2 storage in aquifers is associated with the greatest net revenues under only a limited number of scenarios. This finding suggests that regulators should anticipate GS operations in reservoirs that were not initially intended as GS operations and, therefore, may have higher leakage rates. Copyright © 2013 John Wiley & Sons, Ltd.