Assessing Climate Mitigation Benefits of Public Support to CCS-EOR: An Economic Analysis

Assessing Climate Mitigation Benefits of Public Support to CCS-EOR: An Economic Analysis 4 Impact of CCS-EOR Projects on the Global Oil Market: An Analytical Approach The oil market’s equilibrium is given by the By adding new oil production, the implementation of intersection of global supply and demand the policy results in reshaping the oil supply curve, curves, with the supply curve indicating. [...] It offers a compact formulation of the result, with clarity on Consider now the emissions related to the CO -EOR the role of the various parameters and the effects 2 part of the projects. [...] In such a case, the public support for project is to capture and store b tonnes of CO2 a CCS-EOR project has no effect on the global (implicitly viewing the EOR oil as a by-product), oil market, and the CO2-EOR oil is not a source of we can compute the impact on global emissions incremental emissions since it displaces the same of capturing a tonne of CO2 and storing it through oil from the same o. [...] We can conclude that considering the impact of the EOR oil on the global market equilibrium substantially We can determine the total amount of oil that the influences the results. [...] Interestingly, due to the oil-displacement effect, the higher the volume of The interpretation of this calculation is that, in EOR oil produced per tonne of CO2 stored, the larger theory, the oil producer can sell α + γ barrels of oil the volume of oil that can be decarbonized.