The MDEQ publishes full year numbers for hydrocarbon production about 4 to 5 months lagging behind calendar date. That means these 2016 full year numbers are a little late, but better late than never. The good news is 2017 results will be ready in May of this year so full year results for 2017 will be just around the corner.
The lead story in RMP’s December 2016 Michigan Oil & Gas Monthly is the MDEQ’s Office of Oil, Gas & Minerals (OOGM) funding woes. But first, it should be noted that the MDEQ announced plugging instructions for the Word of Faith 16-27 on December 19, 2016 which means the well does not look like it’s going to become a long term producer. RMP predicted last month the possible potential of the well producing oil for years to come but this latest bit of news dashes that prediction for the well to be an oil producer. RMP will file a Freedom of Information Act request for the initial production report to get the numbers as soon as they’re available. The public must wait 90 days subsequent to the completion of testing before requesting information. Now on to RMP’s lead story for December 2016…
The OOGM’s funding has taken a big hit in the past two years with the decline of oil & gas prices. The OOGM’s funding is a function of oil & gas sold to market in Michigan. We have seen entire countries whose funding is singularly tied to oil & gas production take massive Continue reading Michigan Oil & Gas Monthly – December 2016→
The Word of Faith oil well in Southfield, Michigan is RMP’s top story this month. This November 2016 Michigan Oil & Gas Monthly is the “what to expect when you’re expecting” edition for Southfield residents. This is because RMP is expecting to find out that the Word of Faith 16-27 oil well is going to be a long-term oil producer. One year year ago today the top story was that Jordan Development had filed an application to drill an oil well in Southfield, Michigan at the old Duns Scotus property now owned by Keith Butler’s Word of Faith Ministries. It was a big story because many people in the City of Southfield did not want the well and protested it. Keith Butler, however, who owns the mineral rights to the property, wanted to exercise Continue reading Michigan Oil & Gas Monthly – November 2016→
Jordan Development’s Word Of Faith 16-27 Niagaran oil well has been completed and is flow testing as of today November 8, 2016. By the size of that flare, it looks like this well will be a long term producer. The well was completed in October of 2016 which means the well completion report can be FOIA requested in January of 2017. RMP will get the initial production report and well completion reports as soon as they’re available to get the numbers, but I can tell you this much… based on that flare, this well is going to be a long term producer.
Check out the video below and let me know what you think? RMP feels pretty safe making the prediction this well will produce for the next 30 years and Keith Butler is going to make some $$$. Check back to RMP on November 30, 2016 when RMP publishes our Michigan Oil & Gas Monthly magazine. On November 30, 2016 RMP will have a report on what Southfield residents can expect to see happen over the next year and next 30 years with a Niagaran oil well in such a heavily populated area. RMP will post more pictures & videos of the Word of Faith 16-27 well on November 30, 2016 along with pictures of well pad equipment that you’re likely to see arriving in Southfield over the next couple of months if RMP speculation is correct.
In June of 2015, the MPSC was challenged to determine the appropriate regulatory response to applications filed pursuant to R 460.867 (Rule 17) for operation of Antrim Shale Formation (ASF) wells under vacuum on Michigan Public Service Commission Case# U-16230. RMP wrote about this story in our August 2015 MOGM. Prior to June 2015, battles had been fought over the issue of operating ASF wells on a vacuum for years. Administrative Law Judge Mark D. Eyster held a pre-hearing on June 15, 2010 to officially get the Continue reading Michigan Oil & Gas Monthly – October 2016→
It’s that time of year again to report production numbers in Michigan for oil, natural gas, and natural gas liquids for the first six months of 2016. As stated many times here, the production data lags behind real time so we have to wait until just about this time of year to get all of the data from January to June. After compiling the data for the first six months of 2016 we see a couple of Continue reading 2016 Michigan Hydrocarbon Production Results January – June→
Respectmyplanet.org (RMP) is a Michigan based 501(c)3 organization dedicated to water conservation through smarter energy production & waste management logistics. RMP, like many environmental groups, advocates for the increased adoption of wind energy and solar energy to meet the world’s energy needs. RMP advocates for the adoption of fuel cell electric vehicles for cleaner air, a stronger economy, and energy independence. RMP seeks common sense energy solutions to wean ourselves off of oil & coal and to improve our economy and national security. To read RMP’s thesis post on the responsible migration away from crude oil as an energy source you can click here.
RMP understands, however, coal and crude oil will be around years to come even if we try our best to adopt better alternatives for producing energy. RMP takes a rational, common sense, & global approach about energy feed stocks like crude oil & coal. We have to do our best to mitigate adverse effects from fossil fuels as long as we continue to use them.
This post is about Carbon Capture & Sequestration (#CCS) in Michigan and RMP’s exclusive new map of all #CCS wells in Michigan. Even as RMP advocates for the responsible migration away from crude oil as an energy source, RMP supports #CCS oil production as a means to keep our American workers working as we wean ourselves off of oil and work to build clean and sustainable hydrogen infrastructure for future generations. Michigan is well poised to produce secondary recovery oil by sequestering CO2. Michigan can be a leader in this technology’s research and development. #CCS technology learned and proven in Michigan can be exported to help poorer countries that will be burning coal for a long time to come. India, for example, on October 2, 2016 signed the Paris Climate Agreement which is almost fully ratified. Indian President Narendra Modi called on fully developed countries like ours to export technology like Michigan’s #CCS tech to help India product cleaner energy. Later in this post we will go over why Michigan is well suited to truly be a global leader in R&D for #CCS technology, but first let’s go over the basics of #CCS.
What is Carbon Capture & Sequestration (#CCS)?
If you’ve been following RMP, like you should be on either Twitter or facebook, you already know what Carbon Capture & Sequestration is. Carbon Capture & Sequestration (also known as #CCS) is the capture of Carbon Dioxide from anthropogenic sources like power plants, cement manufacturing, and fertilizer manufacturing where the CO2 is piped to an abandoned oil well and pumped underground rather than being released to atmosphere. CO2 is a greenhouse gas (GHG) and there is broad consensus amongst scientists that our planet’s climate is being impacted in a negative way by human activities like producing energy using fossil fuels that emit CO2 when burned. You’ll often hear the term anthropogenic CO2, which means CO2 produced by human activities as opposed to naturally occurring CO2.
The Midwest Regional Carbon Sequestration Partnership (MRCSP) is a great place to start if you want to learn about #CCS in Michigan or other Midwestern states. The US Department of Energy has divided North America into seven different Regional Carbon Sequestration Partnerships (RCSPs) and Michigan falls into the MRCSP. RMP encourages you to check out the MRCSP website and to read about the many things going on in our region. You can also check out the US Dept of Energy’s Carbon Capture & Storage Resource Center’s webpage by clicking here. I also encourage you to read Senate Bill S.3179 which is new legislation being sponsored by Heidi Heitkamp that incentivizes #CCS by offering up to a $20 per metric ton credit of CO2 sequestered into a secure geologic formation.
An estimated 1.2 billion barrels of potential oil recovery by CO2-EOR was calculated for our MRCSP region based on available data for 265 oil fields in the Midwest. Oil and gas reservoirs within the MRCSP region have an estimated storage resource capacity of 8,511 million metric tons (MMt). Based on an estimated 850 MMt per year of CO2 emissions, these reservoirs could sequester approximately 10 years worth of CO2 in our region.(1) Detailed reservoir characterization, geologic mapping, and modeling and simulation at the field-scale level are the next steps required to delineate prospective areas for future pilot floods and to plan successful CO2-EOR and sequestration projects within our region.
In addition to geological considerations, other factors that come into play when evaluating CO2-EOR potential in a region include (1) location and availability of CO2 sources (e.g., power plants, steel mills, cement plants) and proximity to oil reservoirs, (2) well spacing, (3) unitization issues, (4) location of improperly plugged wells and well-bore integrity, and (5) economic considerations.
The Department of Energy has divided the process of #CCS into three distinct phases which have been ongoing for years now. Phase 1 was the characterization phase which led to the Carbon Sequestration Atlas of the US & Canada which was last updated in 2012. Phase 2 was the validation phase where 20 small scale geologic storage tests were completed to validate reservoir simulation models, demonstrate accounting methods, and develop guidelines for future projects. Phase 3 is the development phase which is where we are now. Currently there are only six sites throughout the US & Canada that are undergoing Phase 3 long-term CO2 injection projects to validate the science on storage of large volumes of CO2. Michigan is home to one of those six sites. The Dover 2-33 well in Otsego County, which is pictured as the featured image on this post (photo credit: MCRSP) is a well in this small cadre of exclusive projects in North America. As of August 31, 2016 Michigan’s Dover 33 EOR Unit (as it’s called) has sequestered 580,687 tons of CO2, produced 515,284 barrels of oil, provided 170 jobs yielding more than $7.1 million dollars of income, generated $1.3 million in severance & sales taxes, and provided $3.6 million of other taxes & royalties(2). We’ll talk more about what’s going in Michigan with #CCS later in this post.
Why is #CCS Important?
We must face the reality that fossil fuels will be in use for years to come. We must mitigate damaging effects of producing energy from fossil fuels while we work earnestly to move away from them. RMP uses data and science to support our work and we are hoping folks will educate themselves about the ugly truths regarding energy production and why it’s important to face facts. RMP hopes that impassioned environmentalist types against fossil fuels will do more than just cheerlead wind & solar. Supporting wind & solar are great initiatives, but we have to give consideration to the reality of fossil fuels in our lives, our dependency on them, and how we can reduce pollution from them while we work to get off of them.
If fossil fuels were eliminated overnight there would be big problems because of disruptions to our energy needs. This is because crude oil and coal have become an entrenched part of our economy and energy mix over decades. Crude oil and coal didn’t come about overnight and they’re not going to disappear overnight. RMP is a leading non-profit research & watchdog organization of oil production in Michigan and we take on the API on a regular basis with regard to avarice, ignobility, and their misleading ad campaigns. RMP understands, however, that ending the use of crude oil for energy will be a migration that takes time and we must protect the workers who will need new jobs as we make a transition to smarter forms of energy production. RMP will never give the API or their cohorts a free pass for misleading the public, but we have to be realistic about our own culpability in the energy infrastructure that surrounds us today. RMP advocates for education and understanding with regard to our own complicity of oil usage in our economy; pots calling kettles black will get us nowhere. We all must work together to learn geology and energy science to make real progress.
#CCS is a must for becoming GHG Negative and keeping American oil field workers employed while we ramp up new and less volatile jobs in a sustainable hydrogen economy. Producing oil from the sequestration of CO2 is one of the ways environmentalists and an oil industry in its winter years should be able to find common ground.
#CCS is important right now to help us make an impact on reducing anthropogenic GHG emissions to atmosphere. Not only is coal going to continue to be an part of providing energy for American consumers for years to come, it is integral to bringing energy to developing countries around the world. Coal is also used in the manufacture of cement all over the world. Fertilizer production is also a large contributor of CO2. There is no magic wand to wave when it comes to a creating a carbon neutral or GHG negative economy.
RMP recently blogged about how ExxonMobil is poised to be one of the biggest difference makers in reducing GHG emissions because of their partnership with Fuel Cell Energy using #CCS & molten carbonate fuel cells.
#CCS is an immediate concern. We must reduce GHGs from established sources that currently produce a majority percentage of our energy and will continue to persist for the foreseeable future. The longer term concern is developing new energy infrastructure that does not produce GHGs like wind & solar coupled with the production of hydrogen for fuel cells. Making H2 for storage from wind and solar is important for using renewable sources for base load energy for those times when the sun isn’t shining or the wind isn’t blowing.
Michigan can be a leader for #CCS technology in the world. Developing and proving out the processes of capturing and sequestering CO2 can be shared with countries like India, China, and many other countries that will be using coal for decades to come.
What Is Going On With #CCS In Michigan?
RMP has been publishing our Michigan Oil & Gas Monthly watchdog magazine for two years now and we have been writing about a Michigan company named Core Energy LLC. Core Energy LLC is a leader in Michigan #CCS and is one of the only operators in Michigan currently capturing and sequestering CO2 into secure geologic formations. Core is the only operator in Michigan currently executing a US Department of Energy Phase 3 long term high-volume CO2 sequestration project. Merit Energy & Jordan Development are also pursuing #CCS in Michigan to a lesser extent.
In EOR using CO2, one or more wells are the injection wells and one or more wells are the producing wells. The idea is that the injection well is being used to push the oil over to the other well. Think of two straws poked vertically through the lid on either end of a shoebox where the shoebox is the hydrocarbon reservoir and the straws are the well bores. You inject something, in this case CO2, down the one straw into this closed loop system and that injection forces something out the other straw.
Michigan is a great test bed for developing #CCS technology because we have all the proper ingredients to make it cost effective. Remember RMP’s philosophy: always follow the money. If things can’t be done economically, they won’t get done. Money always has a critical role in energy projects. The cost of developing new technology is always higher because there is a learning curve associated with it. Michigan has a lot going for it with regard to #CCS because we have an abundance of all the ingredients to help keep the R&D costs of #CCS projects low. Let’s look at the fundamental things needed to make a #CCS project economical:
You need formations that can accept the CO2 and produce oil which helps offset the costs of the R&D, labor costs, and CO2 infrastructure costs. Michigan has 800 known Silurian (Niagaran-Age) Pinnacle Reefs in our Niagaran formation from Manistee to Gaylord and then some.
You need oil & gas know-how, infrastructure, and regulatory agencies that can oversee the safety of the project and the protection of our most valuable natural resource: fresh water. Michigan has thousands of wells drilled into the Niagaran formation, experienced operators, and we also have the MDEQ to oversee regulatory requirements to protect our fresh water.
You need an abundant supply of anthropogenic carbon dioxide nearby to pipeline over to these Niagaran wells in order to pump the CO2 underground and sequester it. Michigan has thousands and thousands of Middle Devonian Antrim Shale gas wells very near the Niagaran wells that produce roughly 80% natural gas and 20% carbon dioxide. The Antrim makes over 1 million tons of CO2 each year that has otherwise just been vented to atmosphere.
Michigan is a prime candidate to develop #CCS technology as we meet all the main requirements very well. This is why the US Department of Energy chose Michigan as one of only six sites developing Phase 3 #CCS projects in the United States and Canada. Michigan’s Middle Devonian Age Antrim Shale generates approximately 1.2 million tons of carbon dioxide each year from six central processing facilities which is currently vented to atmosphere. One of the largest gas-processing facilities in Otsego County generates about 1 billion cubic feet of CO2 each month on average over the last 10 years that has been vented to atmosphere. The average CO2 vented to atmosphere each year from this facility is about 15 billion cubic feet and the average CO2 produced from the Antrim as a whole is about 21 billion cubic feet each year. This CO2 is high quality CO2 for pipelines at about 99% purity.(3)
Let’s do some math to put Antrim CO2 production into perspective: If we convert 21 billion cubic feet of CO2 to pounds or tons, which is how most newspapers write about CO2 emissions, we have to multiply by a factor of 0.1146 and we get about 2.4 billion pounds of CO2 per year vented from the Antrim. If we divide that figure by 2,000 lbs per ton we get about 1.2 million tons of CO2 emitted to the atmosphere from Michigan’s Antrim Shale each year.
For comparison’s sake, the Monroe Power Plant, the biggest power plant in Michigan @ 3,300MW and powered by burning coal, emits about 34.8 billion pounds of CO2 per year to atmosphere, which is about 17.4 million tons. So, the Monroe Power Plant emits about 14 to 15 times more CO2 to atmosphere than the Antrim Shale as a whole. The Monroe Plant also emits about 104k tons of Sulphur Dioxide, 32k tons of Nitrous Oxides, and 780 lbs of Mercury to atmosphere. The Monroe Plant is ranked 7th in the United States for Carbon Dioxide emissions to atmosphere according to SourceWatch. The Monroe Plant was ranked 11th in the US for GHG emissions in a September 29, 2016 @freep article you can read by clicking here.
Plants like the Monroe Power Plant and many more are what #CCS technology is really all about down the road. Companies like Core Energy can use their knowledge and expertise to help reduce the CO2 emissions of plants like the Monroe Power Plant. This is the ultimate goal of #CCS ambitions and why the Department of Energy is helping to fund projects like those undertaken by Core Energy LLC in Northern Michigan. There will be many factors in reducing CO2 emissions from large emission sources but we are closer now than ever before to making these goals safe & economically feasible.
Recently RMP wrote about ExxonMobil & Fuel Cell energy teaming up to add molten carbonate fuel cells to a natural gas power plant in our Fuel Cells 101 post. There is perhaps no greater technology to get excited about than these molten carbonate fuel cells as their CO2 capture signature is like no other diagram out there: they create energy while concentrating CO2 rather than taxing the power plant of energy to capture CO2. Furthermore, molten carbonate fuel cells are modular and can be added as necessary to the power plant depending on the size of the plant thus making their economics better too.
What’s Next for #CCS Proliferation?
As we say repeatedly at RMP: always follow the money. The biggest hurdle with the ambitions of #CCS is and will always be cost. We are in the nascent stages of #CCS now but these are exciting times for advancements in the entire scope of #CCS technology. Michigan is demonstrating itself as a leader in CO2 sequestration with Core Energy LLC’s work in Northern Michigan at the Dover 33 EOR Unit. Fuel Cell Energy in Danbury, Connecticut is demonstrating that molten carbonate fuel cells are a potential game changer for the mass adoption of #CCS because of their cost effectiveness on the “capture” side of CO2. ExxonMobil is providing financial support to small companies like Fuel Cell Energy to take technologies like molten carbonate fuel cells to the next level of mass adoption.
RMP is Michigan’s authority on sustainable energy production and you can follow us on Twitter or like us on facebook to get regular updates as we create new energy maps and blog about sustainable energy advancements. Stay tuned as RMP continues to cover developments in #CCS and other advanced energy technologies. RMP will be writing many more posts about #CCS as news and additional information becomes available.
Check Out RMP’s Carbon Dioxide Sequestration Wells in Michigan Map
RMP has been demonstrating our watchdog oil well mapping software since High Volume Hydraulic Fracturing (HVHF) came to Michigan. We wanted to know where the HVHF wells were in our state and learn more about them but the maps just didn’t exist. We could not get straight answers to our many questions. Sure there was the MDEQ’s GeoWebFace and other mapping applications out there but we needed something more robust. That’s when RMP was born. I have been working as a watchdog regarding Michigan oil well data and writing my own software for about 7 years now and what separates RMP data from other data sources is our supplemental data table and exclusive software. By creating an RMP exclusive table that works in conjunction with MDEQ public data, has added hooks & sorting criteria to Michigan data you just can’t find anywhere else. Want to know which oils have ground water contamination issues? Want to know which wells target the Niagaran formation? Or which wells use CO2 EOR? There is no other place on the web that can match the Michigan made mapping software exclusive to RMP. Our CO2 EOR map shown below is a great example of a map you just won’t find anywhere else on the internet.
RMP’s Interactive Map of Michigan’s Carbon Dioxide Sequestration Wells
2. Michigan Phase III Project Update by MRCSP – Note this is a dynamic link and numbers are updated monthly so the numbers quoted at the time of publication will not match the link depending on when you click the link.
3. Matthias Grobe, Jack C. Pashin, Rebecca L. Dodge, Carbon Dioxide Sequestration in Geological Media: State of the Science – American Association of Petroleum Geologists (2009)
Each month respectmyplanet.org (RMP) recaps oil & gas activity in the Michigan Basin right here in our Michigan Oil & Gas Monthly (MOGM) magazine. RMP is a Michigan based 501(c)3 non-profit organization. If you want to know what’s going on with oil & gas development in Michigan, you should follow this publication each month by liking us on facebook or following @respectmyplanet on Twitter so you don’t miss a publication.
In September, we saw some interesting activity in the Michigan Basin that we will keep our eyes on as it unfolds. Delta Oil out of Oak Brook, Illinois filed numerous ACOWS to drill multiple horizontals off of their State Avery D1-32 well (PN45601) & off of their State Albert A4-1 well (PN53617). The ACOWS calls for a horizontal drainhole (HD) targeting the Upper Devonian Lachine formation. The other ACOWS calls for an HD targeting the Continue reading Michigan Oil & Gas Monthly – September 2016→
Each month respectmyplanet (RMP) recaps the past 30 days of oil & gas activity in the Michigan Basin. We cover new applications & permits to drill oil, gas, disposal, and storage wells and anything else hydrocarbon related. We recap oil & gas activity that happens in Michigan and publish this Michigan Oil & Gas Monthly (MOGM) magazine right here at the end of each month. You can follow us on Twitter by clicking here, or like us on facebook by clicking here and you won’t miss a publication. Our publications are free and always will be. Have a tip for us about a leaking tank or a spill near your house? Or, are you curious about something oil & gas related you see that you want us to dig into? Let us know by leaving a comment at the bottom of this article.
This month a group calling themselves the MICATS staged a protest at Attorney General Bill Schuette’s home in Midland, Michigan. The Detroit News has a story here.
For the record, I have never supported extremist groups or individuals like those in MICATS and neither has respectmyplanet.org. I don’t know them, affiliate with them, or in any way condone what they did. RMP supports as part of our stated mission the migration away from oil as an energy source. RMP supports ending oil pipelines that traverse our Continue reading Michigan Oil & Gas Monthly – July 2016→