FISCAL MECHANISMS TO PROMOTE CO_2 FOR ENHANCED OIL RECOVERY IN THE NORTH SEA: UNDERSTANDING THE CO_2 VALUE CHAIN

摘要

The use of carbon dioxide (CO_2) for enhanced oil recovery (EOR) in the maturing oil reservoirs of the North Sea offers adjacent countries a unique opportunity for improved use of existing oil & gas infrastructure. It also provides an opportunity to develop sustainable solutions in response to the challenge of continued use of fossil fuels, climate-change and compliance with international commitments to reduce greenhouse gas (GHG) emissions.rnHowever implementation of such projects requires alignment of commercial interests along a complete CO_2 value chain (from "conception to grave") and also needs to transcend international boundaries. Such barriers to implementation are difficult to overcome when there is no commodity market for CO_2 in the North Sea arena. The purpose of the present paper is to discuss some of the benefits of creating incentives so that industry develops the North Sea potential for EOR using CO_2. This would also ensure a commercial CO_2-sink for North Europe and could substantially reduce the economic cost of GHG-mitigation.