Brussels, 11 Aug 2006

A report by the European Commission's Joint Research Centre (JRC) Directorate-General highlights a new process that could increase the recovery of European oil resources while simultaneously reducing the emission of carbon dioxide (CO2) and encouraging the development of cleaner and more efficient fossil fuel energy technologies.

The JRC report 'Enhanced Oil Recovery Using Carbon Dioxide (CO2-EOR) in the European Energy System' says annual oil production could reach an additional 180 million barrels (~18% of EU production, or equivalent of €9 billion in savings), with a concomitant reduction of 60 million tonnes of CO2 emissions.

The report focuses on 15 active North Sea oilfields, representing the most important oil-producing region in Europe. These deliver some four million barrels of oil daily, nearly 73% of crude oil production in the European Economic Area. In simple terms, the new technique involves injecting an oil reservoir with CO2, which then 'interacts' with the oil or surrounding reservoir rock, allowing increased oil recovery. The CO2 is then stored in the reservoir.

Until now, the barriers to greater use of CO2-EOR have been financial rather than technical, including the lack of availability of low-cost CO2 and the high cost of undertaking the process offshore. However, the urgent need to curb CO2 emissions in line with the Kyoto agreement has now led to improved CO2 capture and storage. Higher oil prices have also made technologies that maximise oil extraction more attractive. Many North Sea oilfields, now under consideration for dismantling, could also be maintained if improved oil recovery methods were available.

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Key players onboard

The report, which according to a statement has been well received by key players in the oil sector, examines how CO2-EOR could dovetail with the objectives of European energy, environmental and research policies. It reviews current knowledge about CO2-EOR, identifies potential barriers for implementation, and highlights areas for further research and development.

It concludes that, while CO2-EOR could be economically viable in several oilfields studied, there are still many potential impediments. Among these, the high cost of investing in new technologies, securing financial support (e.g. via emissions trading), competition with other less risky oil recovery methods, and concerns about the permanence and safety of CO2 storage underground.

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The report also suggests that existing knowledge about CO2-EOR techniques might not be directly applicable to the specific geological characteristics of European oilfields (oil recovery rates might be lower than those observed in the USA, for example).

Joint Research Centre