000			02916cam a22003617 4500
001			w15035
003			NBER
005			20211020111500.0
006			m o d
007			cr cnu||||||||
008			210910s2009 mau fo 000 0 eng d
100	1		_aLeach, Andrew.
245	1	0	_aCo-optimization of Enhanced Oil Recovery and Carbon Sequestration / _cAndrew Leach, Charles F. Mason, Klaas van't Veld.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2009.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w15035
500			_aJune 2009.
520	3		_aIn this paper, we present what is to our knowledge the first theoretical economic analysis of CO2- enhanced oil recovery (EOR). This technique, which has been used successfully in a number of oil plays (notably in West Texas, Wyoming, and Saskatchewan), entails injection of CO2 into mature oil fields in a manner that reduces the oil's viscosity, thereby enhancing the rate of extraction. As part of this process, significant quantities of CO2 remain sequestered in the reservoir. If CO2 emissions are regulated, oil producers using EOR should therefore be able to earn sequestration credits in addition to oil revenues. We develop a theoretical framework that analyzes the dynamic co-optimization of oil extraction and CO2 sequestration, through the producer's choice at each point in time of an optimal CO2 fraction in the injection stream (the control variable). We find that the optimal fraction is likely to decline monotonically over time, and reach zero before the optimal termination time. Numerical simulations, based on an ongoing EOR project in Wyoming, confirm this result. They show also that cumulative sequestration is positively related to the oil price, and is in fact much more responsive to oil-price increases than to increases in the carbon tax. Only at very high taxes does a tradeoff between oil output and sequestration arise.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aQ32 - Exhaustible Resources and Economic Development _2Journal of Economic Literature class.
690		7	_aQ40 - General _2Journal of Economic Literature class.
690		7	_aQ54 - Climate • Natural Disasters and Their Management • Global Warming _2Journal of Economic Literature class.
700	1		_aMason, Charles F.
700	1		_aVeld, Klaas van't.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w15035.
856	4	0	_uhttps://www.nber.org/papers/w15035
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w15035
942			_2ddc _cW-PAPER
999			_c333086 _d291648