In the past, CO2 floods could be expensive for several reasons:
- Uncertainty about the reservoir increased the chance for failures and lost
investments;
- Operators over-engineered CO2 projects due to inexperience
and fear of corrosion;
- The large slugs of CO2 used for early floods required
greater investments in compression, recapture and separation - and CO2 was considerably more costly than it is today;
- Most CO2 floods were financed 100% from equity, with
the result that only majors with deep pockets and the patience to wait up
to 11 years or more for a payout could play.
Today, Kinder Morgan CO2 can help to make CO2 floods potentially profitable.
Please click the following topics for details.
