- The document discusses regional perspectives on CO2-enhanced oil recovery (CO2-EOR) in the United States. It provides an overview of CO2-EOR potential from US coal resources and utilization opportunities. It also summarizes existing CO2 pipeline infrastructure and annual CO2-EOR production in the US. The document concludes with a discussion of major US CCUS projects and the possible role of carbon markets and CO2-EOR under proposed EPA regulations.

1. “Regional Perspectives on CO2-EOR:
The US”
Michael E. Moore
Executive Director
NACCSA
VP Energy Commodities and Advisory Services
FearnOil, Inc. a division of Astrup-Fearnleys
November 6, 2014 GCCSI Annual Meeting-Abu Dhabi

2. North American Carbon Capture
Storage Association

3. NACCSA Participants
• American Petroleum Institute
• Anadarko Petroleum Corporation
• BP Alternative Energy North America Inc.
• C12 Energy
• Denbury Resources, Inc.
• Kinder Morgan
• Occidental Petroleum Corporation
• Peabody Energy
• Sasol
• Schlumberger Carbon Services
• Shell
Affiliated participants
• SSEB-Ken Nemeth
• WRI-Sarah Forbes
• EERC-John Harju
• IEA CCS –Sean McCoy

4. • The Astrup Fearnley group represents over a century of history, growth and excellence in the area of shipping
services. This fascinating legacy is a success story created by generation after generation of the Astrup Fearnley
family. We believe it is a story worth telling.
• Fearnleys traces its history back to the year 1869 when its founder, Thomas Fearnley, established a shipbroking
and agency business in Christiania, as the city of Oslo was known in those days. The little company soon prospered
and engaged in, among others, the trade in lumber, wine, pitch and ice.
• In connection with its trading activities the company bought shares in vessels and chartered vessels. Although the
company began by chartering sailing vessels, by 1880 the age of the steamship had clearly begun. By 1881 the
partnership of Fearnley & Eger established the Christiania Steamship Company which contracted two
newbuildings at the the Kockums Shipyard in Malmø, the 1235 deadweight ‘Oslo’ and the 1215 deadweight
‘Bygdøy’.
• By the end of the 1880s the company had contracted a further six units. In the beginning of the 1900s Fearnley &
Eger became, more or less, a shipowning company and invested in ever larger units. The company engaged in both
liner and tramp activities and survived the two world wars. In addition to these shipowning activities, the firm
continued to engage in developing its skills in the area of shipping services and was engaged primarily in the area
of dry cargo shipbroking. As the tanker industry started to develop at the beginning of the 20th century, Fearnleys
became enthusiastically involved in this new field of endeavour. Later on, when the transportation of gas by sea
became an important area of commerce, Fearnleys developed a broking department which specialized in this new
commodity. All in all, the history of the company has been closely focused on the concept of innovation; whenever
new ideas and new industries developed which required seaborne transportation, Fearnleys was quickly on the
scene.
• As the 20th century progressed, the need for brokerage services for the transportation industry became so great
that Fearnleys began to develop these (along with related ancillary services) as its principal business area. Always
on the cutting edge of new trends, the company became involved in car carrier transportation in the 1960s,
offshore and rig broking in the 1970s, coinciding with the onset of the development of the Norwegian continental
shelf offshore oil fields, and energy trading and financial services in the 1980s. Fearnleys was also a pioneer in the
development of transportation industry research and consultancy services, and has been involved in monitoring
and analysing shipping markets since the early 1960s when Fearnresearch was first established. Now at the dawn
of the 21st century the little company which started in Christiania in 1869 is firmly established in every corner of
the world and assumes a global perspective on transportation much to the benefit of its worldwide customer
base.

5. US Coal Resources
Source: http://pubs.usgs.gov/of/1996/of96-092/Comp/main.gif

6. Coal Utilization
CO2
Above picture source: The CURC-EPRI Tech Roadmap pg. 24

7. CO2 Utilization
Source: www.netl.doe.gov/research/coal/carbon-storage/research-and-development/co2-utilization

8. Source: The CO2-EOR Oil Recovery and CO2 Utilization “Prize”. Prepared for: Global Technology Exchange Session: Subsurface
and EOR Task Area Challenge Prepared By: Mr. Vello A. Kuuskraa, CEO, Advanced Resources International, Inc. April 2014

9. Size of the CO2-EOR Prize
• Note: Current
work is going on
to quantify the
areas NOT below
oilfield – but
rather in the
fairways-or
“greenfields”.
• A study expected
out this winter
covers only four
counties in
Texas—estimates
are 100 billion
bbls of OOIP
additional oil not
in previous
studies of the
ROZ.
• Catch is: Need
CO2 to produce
the oil.. Chart Source: Kuuskraa 4-2014 GOTIA Presentation
9

10. Residual Oil Zone (“ROZ”)

11. Next Frontier for CO2-EOR -- Shale
Oil/Bakken---and Globally?
11
Source: EERC presentations 2014

12. US Shale Plays - Unconventional Oil &Gas

13. CO2 Supply

14. Appendix C: Existing CO2 Transport
Infrastructure in the United States
• Extensive networks of pipelines already exist around the world. In
the US alone, there are about 800,000 km of natural gas and
hazardous liquid pipelines, and 3.5 million km of natural gas
distribution lines.
• Some 6,500 km of pipelines actively transport CO2 today. In the US,
around 50 CO2 pipelines are currently operating, which transport
approximately 68 Mtpa of CO2. These onshore pipelines cross six
provincial/state boundaries and one international border (into
Canada). Much of the existing CO2 pipeline infrastructure in the US
was built in the 1980s and 1990s and delivers mainly naturally
sourced CO2 for EOR purposes.
• See Appendix for listing of each individual CO2 pipeline for details.
• http://decarboni.se/publications/global-status-ccs-2014/appendix-c-
existing-co2-transport-infrastructure-united-states
• See section 8.2 page 118 “CO2 Transportation-Status and New
Developments” for more details on projects, volumes and pipelines.
• All located in Global CCS Institute’s “Global CCS Status-2014”

15. Annual US CO2-EOR production
Source: “Near-Term Projections of CO2 Utilization for Enhanced Oil Recovery” 5/7/2014
http://netl.doe.gov/File%20Library/Research/Energy%20Analysis/Publications/Near-Term-Projections-CO2-
EOR_april_10_2014.pdf

16. Projected US Utilization and Storage of
Natural and Anthropogenic CO2 with EOR
Source: “Near-Term Projections of CO2 Utilization for Enhanced Oil Recovery” 5/7/2014
http://netl.doe.gov/File%20Library/Research/Energy%20Analysis/Publications/Near-Term-Projections-CO2-
EOR_april_10_2014.pdf

17. Projected US Utilization and Storage of
Natural and Anthropogenic CO2 with EOR
Source: “Near-Term Projections of CO2 Utilization for Enhanced Oil Recovery” 5/7/2014
http://netl.doe.gov/File%20Library/Research/Energy%20Analysis/Publications/Near-Term-Projections-CO2-
EOR_april_10_2014.pdf

18. US CCUS Projects

19. Mississippi Power Kemper IGCC Project
http://www.mississippipower.com/kemper/docs/Q4_2013KemperProgressReport.pdf
• 582-megawatt integrated gasification combined-cycle (IGCC)
power plant in Kemper County monetizing lignite
• Nearly complete-largest commercial scale CCUS power
project in the US
• CO2 going to Denbury and Tellus for EOR and utilization
• Power block is operational and running delivering power to
the grid http://mississippipowernews.com/2014/09/15/un-climate-official-calls-
kemper-hope-for-future/

20. NRG/Petra Nova WA Parish Carbon
Capture Utilization Project
• Company/Alliance: Petra Nova Holdings: a
50/50 partnership between NRG Energy and JX
Nippon Oil & Gas Exploration Corp.
• Location: Unit 8, W.A. Parish plant,
Thompsons, 60KM from Houston, Texas, USA
• Feedstock: Coal
• Size: 250 MW slip stream from 610 MW unit.
• Capture: 1.4 Mt of CO2 captured annually
(90% capture)
• Capture Technology: Post-combustion: KM-CDR
amine scrubbing CO2 developed by MHI
and KEPCO
• CO2 Fate: 82 mile pipeline for onshore EOR in
the West Ranch Oil Field in Jackson County,
Texas
• Timing: Project is scheduled to start at the end
of 2016
• http://sequestration.mit.edu/tools/projects/w
a_parish.html
www.nrg.com/sustainability/strategy/enhance-generation/carbon-capture/wa-parish-ccs-project/

21. Air Products Texas Carbon Capture
Demonstration Project
• Port Arthur Fact Sheet: Carbon Dioxide
Capture and Storage Project
• Company/Alliance: Air Products and
Chemicals, Denbury Onshore LLC,
University of Texas Bureau of Economic
Geology and Valero Energy Corporation
• Location: Port Arthur, Texas, US
• Start Date: January 2013
• End Date: September 2015
• Size: 1 Mt/yr
• Capture Type: Post-combustion (90%
capture) using vacuum swing
adsorption technology
• CO2 Source: Existing steam-methane
reformers
• Storage: EOR in West Hasting's and
Oyster Bayou oil fields, Texas
• https://sequestration.mit.edu/tools/pr
ojects/port_arthur.html

22. Summit’s Texas Clean Energy Project
• Company/Alliance: Summit Power
Group Inc, Siemens, Fluor, Linde, R.W.
Beck, Blue Source and Texas Bureau
of Economic Geology –Chinese
Partners TBA
• Location: Penwell, Ector County,
Texas, USA
• Feedstock: Coal
• Size: 400 MW Gross, 245 MW
Commercial output ( 2-3 Mt/yr
captured)
• Capture Technology: Pre-
Combustion: Siemens IGCC
technology and Linde Rectisol acid-gas
capture technology (90% CO2
capture)
• CO2 Fate: EOR in the Permian Basin
• Start: Construction should start early
2015
• Operational-TBA
• http://sequestration.mit.edu/tools/p
rojects/tcep.html
• http://www.texascleanenergyproject.
com/project/

23. North Dakota Vision “EPIC”:
Lignite Gasification, Power Generation
and CO2-EOR- in Shale and Conventional

24. Other Considerations

26. Norwegian Visit to Navajo Nation
• Dr. Jostein added that Norway
has a strong interest in working
with the Navajo Nation and
hopes to aid in the
development of a more efficient
avenue of clean coal burning,...
• One of those techniques is an
Integrated Gasification
Combine Cycle Power
Generation Unit, which would
utilize coal and preserve
remaining resources acquired
from the purchase of Navajo
Mine from BHP Billiton near
Farmington, NM.
• Note: Captured CO2 would
move to the Permian Basin for
EOR.

27. CO2 and Methane Hydrates
• Data from Innovative Methane Hydrate Test on Alaska's North Slope
Now Available on NETL Website. March 11, 2013
• Data from an innovative test conducted last year that used carbon dioxide
(CO2) and nitrogen (N2) injection to release natural gas from methane
hydrates at a well on the Alaska North Slope is now available to
researchers and the public on the National Energy Technology Laboratory
(NETL) website.
• NETL, the research laboratory of DOE’s Office of Fossil Energy (FE),
participated in gas hydrate field production trials in early 2012 in
partnership with ConocoPhillips and the Japan Oil, Gas and Metals
National Corp. (JOGMEC). This test well (known as Iġnik Sikumi, Inupiat
for “Fire in the Ice”) represented the first test of a CO2 exchange
technology that was developed by ConocoPhillips and the University of
Bergen, Norway. In the test, a small volume of CO2 and nitrogen was
injected into the well and then the well was produced back to
demonstrate that this mixture of injected gases could promote
production of natural gas.
• http://energy.gov/fe/articles/data-innovative-methane-hydrate-test-alaskas-
north-slope-now

28. US Becomes World Scale LPG and
Ethane Exporter-(and Backhaul CO2?)
• GPA ’14: US exports of LPG poised to
skyrocket. 4-15-14
• A near-doubling of US propane
exports occurred from 2012 to 2013.
This paradigm shift looks likely to
continue.
• At least 77 projects to build or
expand LPG processing capacity are
in the works, Ms. Anderson said.
These projects will bring online 13
billion cubic feet per day (Bcfd) of
additional capacity in US by the end
of 2015.
• Bentek anticipates US LPG supply
from gas plants to reach 2 MMbpd by
2019
• http://www.hydrocarbonprocessing.c
om/Article/3331124/GPA-14-US-exports-
of-LPG-poised-to-skyrocket.
html
• Enterprise Building Ethane Export
Terminal to Cut Glut . 4-22-14
• The operator of the largest U.S.
storage hub for natural gas liquids,
plans to reduce an oversupply of
ethane by exporting the plastics
ingredient from the Texas coast.
• The refrigerated export facility is
expected to begin operating in the
third quarter of 2016.
• It will have the capacity to load
240,000 barrels a day, making it the
largest such facility in the world, the
company said.
• U.S. ethane supply currently exceeds
demand by about 300,000 barrels a
day, a figure that may reach 700,000
barrels by 2020.
• http://www.bloomberg.com/news/2
014-04-22/enterprise-building-ethane-
export-terminal-to-cut-glut.
html

29. US Carbon Markets and CCUS/CO2-EOR
Possible Role under Proposed EPA Regs
• PEW/C2ES CCS Protocols-released
2012
• ACR CCS CO2-EOR Offsets-final
stages of review
http://www.c2es.org/docUploads/CCS-framework.pdf

30. Significant Carbon Events
• November 7th 2013'Unburnable' carbon fuels investment concerns-
Investors group with €7.3tn of assets asks energy giants about their
exposure and response to the risk of falling demand for oil and coal.
http://www.theguardian.com/sustainable-business/unburnable-carbon-
investment-agenda
• June 12th 2013 President Obama quietly raises 'Carbon Price' as
costs to deal with climate changes increase. The increase of the so-called
social cost of carbon, to $38 a metric ton in 2015 from
$23.80, adjusts the calculation the government uses to weigh costs
and benefits of proposed regulations. The figure is meant to
approximate losses from global warming such as flood damage and
diminished crops. http://www.bloomberg.com/news/2013-06-
12/tougher-regulations-seen-from-obama-change-in-carbon-cost.
html

31. Questions & Thank You!
Michael E. Moore
• VP Energy Commodities and Advisory Services
• FearnOil Inc. (a division of Astrup-Fearnleys)
• www.fearnleys.com
• Executive Director
• North American Carbon Capture Storage Association
• www.naccsa.org
• mmoore@fearnoil.com Tel: 281-759-0245

33. Map of Basins with assessed Shale Oil and
Shale Gas Formations, as of May 2013
Source: Technically Re coverable Shale Oil and Shale Gas Resources: An Assessment of 137 Shale Formations
in 41 Countries Outside the United States EIA June 13th 2013

34. Major Shale (Gas/Oil) Basin Wells
Rapid Declining Production Curve

35. US and CCUS Policy Shift
As a follow on to
DOE Chuck
McConnell’s CCUS
move driven by the
value proposition of
CO2-EOR in 2011,
Atlantic Council
issued its Policy
Brief on US CCUS in
2012
www.atlanticcouncil.org/publications/issue-briefs/us-policy-shift-to-carbon-capture-utilization-
and-storage

36. Current CCS/CCUS Legislation that
Pertains to CO2-EOR
• Senator Rockefeller. May 6 2014 introduced two bills
— the “Carbon Capture and Sequestration Deployment
Act of 2014” and the “Expanding Carbon Capture
through Enhanced Oil Recovery Act of 2014”
www.timeswv.com/westvirginia/x360419567/Rockefelle
r-introduces-carbon-capture-bills — that would invest in
federal carbon capture and sequestration (CCS) research
and development; expand tax credits for innovative
companies investing in CCS technologies; create loan
guarantees for construction of new CCS facilities, and
retrofits of existing facilities that utilize CCS, among
other provisions
• Carbon Capture & Sequestration Innovation Program
• Modification to the Carbon Dioxide Sequestration Credit
(45Q)
• Carbon Capture & Sequestration Tax Credits and Loan
Guarantees
• Expanding the 45Q Tax Credit
• Reforming the 45Q Tax Credit
www.neori.org/NEORI_45Q.pdf
Note: This legislation is a result of the
NEORI 45(Q) recommendations

37. Current CCS/CCUS Legislation
• Senator Heitkamp’s March 24th 2014 “Advanced Clean Coal Technology
Investment in Our Nation (ACCTION)” Bill
www.heitkamp.senate.gov/public/_cache/files/de7bf292-1fcb-4639-b592-
6670b57d824b/one-pager.pdf
• Developing large-scale carbon storage programs to support the commercial-scale
application of enhanced oil recovery and geologic storage of carbon dioxide.
• Increasing the accessibility of funds in existing federal programs by 1) directing
25% ($2 billion) of the current U.S. Department of Energy (DOE) Loan Guarantee
Program funding for fossil energy to go to coal projects, 2) enabling eligible
projects to receive DOE loan guarantees even if they have received another source
of federal assistance, and 3) streamlining the process for companies to receive
federal funds for which they have qualified.
• Revamping the existing R&D programs for advanced coal, and carbon capture and
sequestration technologies by including transformational coal-related
technologies, a cost share program, and incremental funding levels consistent with
technology goals until 2035.
• Increasing the current tax credit for carbon sequestration from coal facilities to
30% and including polygeneration facilities among the possible eligible projects.
• Creating a variable price support for companies that capture CO2 to provide long-term
certainty to the utilities that sell CO2 for enhanced oil and gas recovery,
regardless of the price of oil.
• Creating clean energy coal bonds to provide tax credits for coal-powered facilities
that sequester CO2 or meet efficiency targets relative to the current coal fleet.
• Requiring reports to Congress from the DOE on the economic and technical status
of CCS research and projects, including an evaluation of CCS projects online in
Canada and a recommendation of how the U.S. could undertake similar projects
with public-private collaboration.

38. ISO-CCS Standards for Geologic
Storage
• International Organization for
Standardization (ISO) Technical
Committee TC-265
• Title: Carbon dioxide capture,
transportation, and geological
storage-includes CO2-EOR
• Acceptance of Z-741 by
Standards Council of Canada
and American National
Standards Institute (ANSI) is
“seed document” for TC-265
• 26 countries participating and
NGOs
 International Standards
Organization - 31000, 17024,
14064, 14065
 International Performance
Assessment Centre for
Geologic Storage of CO2 – Seed
document
 Canadian Standards
Association - ISO Secretariat,
standards developer
 Bi-national agreement
between USA & Canada

39. Indiana Department of Environmental Management (IDEM) issued a final
PSD/Title V permit to Indiana Gasification, LLC in Rockport, IN
Comments by NACCSA General Counsel Kipp Coddington
• Fourth, IDEM, also in the response to public comments document,
rejected arguments that the permit had to somehow include downstream
controls on EOR to ensure sequestration: “[C]omments that related to the
control of CO2 downstream of the proposed facility (e.g., control of CO2
during transportation, storage, use, and re-use in EOR operations) are not
relevant for this permitting action.” Id. p. 21.
• Fifth, IDEM rejected suggestions that the facility be required to conduct
non-EOR sequestration. NGOs argued, for example, that work done by the
Midwest Geological Sequestration Consortium, coupled with the ADM
project and others, suggest that CCS has been “clearly demonstrated” as
an available sequestration technology. Id. p. 23. IDEM, in contrast, took
the position that CCS was technically infeasible on various grounds. Id. p.
25.
• Sixth, IDEM deflected suggestions that UIC Class II was inadequate, with
one commenter suggesting that only UIC Class VI is appropriate. Id. pp.
28-30. As above, IDEM viewed any discussion of UIC class as irrelevant in
this scenario