Investment Strategy of CO2-EOR in China: Analysis Based on Real Option Approach

2021 ◽  
Author(s):  
Jianfei Bi ◽  
Jing Li ◽  
Zhangxin John Chen ◽  
Yanling Gao ◽  
Yishan Liu ◽  
...  
Keyword(s):  
Oil Recovery ◽  
Technological Progress ◽  
Large Scale ◽  
Real Option ◽  
Financial Burden ◽  
Investment Strategy ◽  
Investment Value ◽  
Real Option Approach ◽  
Co2 Eor ◽  
The Government

Abstract As the most potential Carbon Capture, Utilization, and Storage (CCUS) technology, CO2-enhanced oil recovery (CO2-EOR) can both improve oil recovery and relieve the pressure of reducing CO2 emission. However, CO2-EOR projects have not been substantially deployed in China due to the significant investment and high uncertainties of technology, market, and policy. Therefore, identifying potential bottlenecks, and developing effective investment strategies are of great necessity at present. In this work, a real option approach combined with reservoir simulation technologies is proposed, which can investigate the optimal deployment timing and the investment value of the CO2-EOR projects. Meanwhile, a sensitivity analysis is conducted to examine the effects of different uncertainties. The results show that real option approach is suitable for the evaluation of CO2-EOR projects because it can fully take the flexibility of investment time into account. And it is found that under the current investment environment, it is difficult for China to deploy CO2-EOR projects on a large scale before 2030. High oil prices, low CO2 purchase prices, and transportation of CO2 by pipeline can bring forward the investment time and increase the investment value. Besides, government subsidies and technological progress are also favorable for the deployment of the project. Compared with technological progress, the effect of subsidies is more obvious, while it should be noted that huge subsidies will bring a financial burden to the government. In a word to launch CO2-EOR projects earlier and make it play a more important role in China's carbon emission reduction, a compound strategy should be made based on consideration of all these influencing factors.

Financial and Economic Support of Innovation Processes in the Russian Fuel and Energy Complex

2019 ◽  
Vol 12 (3) ◽  
pp. 77-85
Author(s):  
L. D. Kapranova ◽  
T. V. Pogodina
Keyword(s):  
Oil Recovery ◽  
Large Scale ◽  
Oil And Gas ◽  
New Technologies ◽  
Innovative Development ◽  
Oil Reserves ◽  
Energy Complex ◽  
Innovation Activities ◽  
Substantial Investment ◽  
The Government

The subject of the research is the current state of the fuel and energy complex (FEC) that ensures generation of a significant part of the budget and the innovative development of the economy.The purpose of the research was to establish priority directions for the development of the FEC sectors based on a comprehensive analysis of their innovative and investment activities. The dynamics of investment in the fuel and energy sector are considered. It is noted that large-scale modernization of the fuel and energy complex requires substantial investment and support from the government. The results of the government programs of corporate innovative development are analyzed. The results of the research identified innovative development priorities in the power, oil, gas and coal sectors of the fuel and energy complex. The most promising areas of innovative development in the oil and gas sector are the technologies of enhanced oil recovery; the development of hard-to-recover oil reserves; the production of liquefied natural gas and its transportation. In the power sector, the prospective areas are activities aimed at improving the performance reliability of the national energy systems and the introduction of digital technologies. Based on the research findings, it is concluded that the innovation activities in the fuel and energy complex primarily include the development of new technologies, modernization of the FEC technical base; adoption of state-of-the-art methods of coal mining and oil recovery; creating favorable economic conditions for industrial extraction of hard-to-recover reserves; transition to carbon-free fuel sources and energy carriers that can reduce energy consumption and cost as well as reducing the negative FEC impact on the environment.

scholarly journals Enabling Large-Scale Carbon Capture, Utilisation, and Storage (CCUS) Using Offshore Carbon Dioxide (CO2) Infrastructure Developments—A Review

Energies ◽  
2019 ◽  
Vol 12 (10) ◽  
pp. 1945 ◽  
Author(s):  
Lars Ingolf Eide ◽  
Melissa Batum ◽  
Tim Dixon ◽  
Zabia Elamin ◽  
Arne Graue ◽  
...  
Keyword(s):  
Carbon Dioxide ◽  
Oil Recovery ◽  
Carbon Capture ◽  
Large Scale ◽  
Business Models ◽  
Reservoir Performance ◽  
High Investment ◽  
Co2 Eor ◽  
Carbon Dioxide Co2 ◽  
And Storage

Presently, the only offshore project for enhanced oil recovery using carbon dioxide, known as CO2-EOR, is in Brazil. Several desk studies have been undertaken, without any projects being implemented. The objective of this review is to investigate barriers to the implementation of large-scale offshore CO2-EOR projects, to identify recent technology developments, and to suggest non-technological incentives that may enable implementation. We examine differences between onshore and offshore CO2-EOR, emerging technologies that could enable projects, as well as approaches and regulatory requirements that may help overcome barriers. Our review shows that there are few, if any, technical barriers to offshore CO2-EOR. However, there are many other barriers to the implementation of offshore CO2-EOR, including: High investment and operation costs, uncertainties about reservoir performance, limited access of CO2 supply, lack of business models, and uncertainties about regulations. This review describes recent technology developments that may remove such barriers and concludes with recommendations for overcoming non-technical barriers. The review is based on a report by the Carbon Sequestration Leadership Forum (CSLF).

scholarly journals Conservative or Aggressive? The Dynamic Adjustment of the Feed-in Tariff Policy for Photovoltaic Power Generation in China

2021 ◽  
Vol 9 ◽  
Author(s):  
Yi Fu ◽  
Chang-hao Hu ◽  
Dong-xiao Yang
Keyword(s):  
Power Generation ◽  
Technological Progress ◽  
Financial Burden ◽  
Evolutionary Analysis ◽  
Dynamic Adjustment ◽  
Strategic Stability ◽  
Initial Preference ◽  
The Government ◽  
D Investment ◽  
Feed In Tariff

With the technological progress of photovoltaic (PV) enterprises, the subsidy standard of PV power generation in China is declining. However, the conservative adjustment of feed-in tariff (FIT) policy is considered to increase the financial burden of the government, while the aggressive adjustment will have a serious impact on the PV enterprises and may reduce the research and development (R&D) investment of them. By constructing a game model between the government and PV enterprises, this article analyzes the relationship between the adjustment of government subsidy policy and R&D investment of PV enterprises. The evolution path and strategic stability of the system have been studied through evolutionary analysis and numerical simulation. Results show that three strategies may become the evolutionary stability strategy (ESS) of the system under certain conditions. Firstly, the investigation of these conditions reveals the strategy that the government chooses conservative adjustment and enterprises choose to increase R&D investment is more likely to be an ESS. Secondly, the initial preference of the government and enterprises cannot change the final result of system evolution, but only changes the speed of reaching it. Finally, the research on the interaction between government and enterprises illustrates that when the degree of influence is small, the ESS is that the government chooses aggressive adjustment and enterprises choose to increase R&D investment. But when the degree of influence is large enough, the government is more inclined to choose conservative adjustment and enterprises choose to increase R&D investment. The decision-making of the government should be focused on the interaction between the government and enterprises. The encouraging cooperation among PV enterprises, universities, and research institutions can promote the technological progress of the PV industry, so as to achieve the purpose of subsidy policies more effectively.

scholarly journals Significance of Enhanced Oil Recovery in Carbon Dioxide Emission Reduction

2021 ◽  
Vol 13 (4) ◽  
pp. 1800
Author(s):  
Karolina Novak Mavar ◽  
Nediljka Gaurina-Međimurec ◽  
Lidia Hrnčević
Keyword(s):  
Carbon Dioxide ◽  
Enhanced Oil Recovery ◽  
Oil Recovery ◽  
Energy Demand ◽  
Large Scale ◽  
Carbon Dioxide Emission ◽  
Mitigation Strategies ◽  
Climate Mitigation ◽  
Special Focus ◽  
Co2 Eor

Limiting the increase in CO2 concentrations in the atmosphere, and at the same time, meeting the increased energy demand can be achieved by applying carbon capture, utilization and storage (CCUS) technologies, which hold potential as the bridge for energy and emission-intensive industries to decarbonization goals. At the moment, the only profitable industrial large-scale carbon sequestration projects are large-scale carbon dioxide enhanced oil recovery (CO2-EOR) projects. This paper gives a general overview of the indirect and direct use of captured CO2 in CCUS with a special focus on worldwide large-scale CO2-EOR projects and their lifecycle emissions. On the basis of scientific papers and technical reports, data from 23 contemporary large-scale CO2-EOR projects in different project stages were aggregated, pointing out all the specificities of the projects. The specificities of individual projects, along with the lack of standardized methodologies specific for estimating the full lifecycle emissions resulting from CO2-EOR projects, pose a challenge and contribute to uncertainties and wide flexibilities when estimating emissions from CO2-EOR projects, making the cross-referencing of CO2-EOR projects and its comparison to other climate-mitigation strategies rather difficult. Pointing out the mentioned project’s differentiations and aggregating data on the basis of an overview of large-scale CO2-EOR projects gives useful information for future work on the topic of a CO2-EOR project’s lifecycle emissions.

scholarly journals A Review of CO2 Storage in View of Safety and Cost-Effectiveness

Energies ◽  
2020 ◽  
Vol 13 (3) ◽  
pp. 600 ◽  
Author(s):  
Cheng Cao ◽  
Hejuan Liu ◽  
Zhengmeng Hou ◽  
Faisal Mehmood ◽  
Jianxing Liao ◽  
...  
Keyword(s):  
Co2 Emissions ◽  
Oil Recovery ◽  
Carbon Capture ◽  
Large Scale ◽  
Oil And Gas ◽  
Coal Fly Ash ◽  
Co2 Storage ◽  
Carbon Capture And Storage ◽  
Current Status ◽  
The Government

The emissions of greenhouse gases, especially CO2, have been identified as the main contributor for global warming and climate change. Carbon capture and storage (CCS) is considered to be the most promising strategy to mitigate the anthropogenic CO2 emissions. This review aims to provide the latest developments of CO2 storage from the perspective of improving safety and economics. The mechanisms and strategies of CO2 storage, focusing on their characteristics and current status, are discussed firstly. In the second section, the strategies for assessing and ensuring the security of CO2 storage operations, including the risks assessment approach and monitoring technology associated with CO2 storage, are outlined. In addition, the engineering methods to accelerate CO2 dissolution and mineral carbonation for fixing the mobile CO2 are also compared within the second section. The third part focuses on the strategies for improving economics of CO2 storage operations, namely enhanced industrial production with CO2 storage to generate additional profit, and co-injection of CO2 with impurities to reduce the cost. Moreover, the role of multiple CCS technologies and their distribution on the mitigation of CO2 emissions in the future are summarized. This review demonstrates that CO2 storage in depleted oil and gas reservoirs could play an important role in reducing CO2 emission in the near future and CO2 storage in saline aquifers may make the biggest contribution due to its huge storage capacity. Comparing the various available strategies, CO2-enhanced oil recovery (CO2-EOR) operations are supposed to play the most important role for CO2 mitigation in the next few years, followed by CO2-enhanced gas recovery (CO2-EGR). The direct mineralization of flue gas by coal fly ash and the pH swing mineralization would be the most promising technology for the mineral sequestration of CO2. Furthermore, by accelerating the deployment of CCS projects on large scale, the government can also play its role in reducing the CO2 emissions.

scholarly journals Application of Machine Learning Techniques to Predict the Impact of Health Insurance on the Wellbeing of an Individual

2019 ◽  
Vol 9 (2) ◽  
pp. 3065-3070
Keyword(s):  
Machine Learning ◽  
Health Insurance ◽  
Large Scale ◽  
Insurance Industry ◽  
Financial Burden ◽  
Machine Learning Algorithms ◽  
Machine Learning Techniques ◽  
Insurance Companies ◽  
The Government ◽  
The Impact

The healthcare domain in India has suffered considerably despite the advancement in technology. Several financing schemes are endorsed by the insurance companies to lessen the financial burden faced by the government and people. Nonetheless, Health Insurance segment in India remains underdeveloped due to various complexities that it faces. This paper exploits a heuristic sampling approach combined with the ensemble Machine Learning algorithms on the large-scale insurance business data to realize the current shape of the Health Insurance industry in India. Through the courtesy of Data Mining and Data Analytics, it is plausible to furnish insights that assist the common people in acquiring closure that helps in the process of decision making.

scholarly journals The State Value

2020 ◽  
Author(s):  
Moustafa Ahmed AbdElaal ◽  
Nesrien Mohamed Elmohamady
Keyword(s):  
Real Option ◽  
The State ◽  
Market Condition ◽  
Optimal Time ◽  
Discounted Cash Flow ◽  
Unlimited Number ◽  
Number Of Factors ◽  
Real Option Approach ◽  
Pricing Factors ◽  
The Government

Abstract This paper considers the state value using the real option approach. Our model allows adding unlimited number of factors which affects the state value. We adjusted Ornstein-Uhlenbeck stochastic process to be able to consider unlimited number of pricing factors to calculate the state value. We think this model may be useful to evaluate the performance of the government and making decision process via knowing the optimal value and the optimal time for the decision. This dynamic model differs from the traditional pricing model for evaluating the nation's wealth using the discounted cash flow model (DCF) which does not allows considering the market condition via using the risk-neutral approach. The states value determinants are divided into two classes, determinants and sub-determinants.

LARGE-SCALE SIMULATION OF OIL RECOVERY BY SURFACTANT-POLYMER FLOODING

2016 ◽  
Vol 4 (1) ◽  
pp. 12-31 ◽  
Author(s):  
D.Zh. Akhmed-Zaki ◽  
T.S. Imankulov ◽  
B. Matkerim ◽  
B.S. Daribayev ◽  
K.A. Aidarov ◽  
...  
Keyword(s):  
Oil Recovery ◽  
Large Scale ◽  
Polymer Flooding ◽  
Large Scale Simulation

Land Use Change and Commodity Frontiers

2020 ◽  
Vol 4 (1) ◽  
Author(s):  
Daniel M. Cáceres ◽  
Esteban Tapella ◽  
Diego A. Cabrol ◽  
Lucrecia Estigarribia
Keyword(s):  
Large Scale ◽  
Field Work ◽  
Dry Forest ◽  
Social Actors ◽  
Goods And Services ◽  
Fast Pace ◽  
Forest Use ◽  
The Government ◽  
Social Environmental ◽  
Management Recommendations

Argentina is experiencing an expansion of soya and maize cultivation that is pushing the agricultural frontier over areas formerly occupied by native Chaco forest. Subsistance farmers use this dry forest to raise goats and cattle and to obtain a broad range of goods and services. Thus, two very different and non-compatible land uses are in dispute. On the one hand subsistance farmers fostering an extensive and diversified forest use, on the other hand, large-scale producers who need to clear out the forest to sow annual crops in order to appropriate soil fertility. First, the paper looks at how these social actors perceive Chaco forest, what their interests are, and what kind of values they attach to it. Second, we analyze the social-environmental conflicts that arise among actors in order to appropriate forest’s benefits. Special attention is paid to the role played by the government in relation to: (a) how does it respond to the demands of the different sectors; and (b) how it deals with the management recommendations produced by scientists carrying out social and ecological research. To put these ideas at test we focus on a case study located in Western Córdoba (Argentina), where industrial agriculture is expanding at a fast pace, and where social actors’ interests are generating a series of disputes and conflicts. Drawing upon field work, the paper shows how power alliances between economic and political powers, use the institutional framework of the State in their own benefit, disregarding wider environmental and social costs. 

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