Can the O&G Industry Leverage Geothermal Energy Production?

Transcription

1 Can the O&G Industry Leverage Geothermal Energy Production? SPE November Meeting Stavanger Classification: Internal Statoil ASA 10 november 20

2 2 Classification: Internal 10 november 2017 Statoil ASA

3 Building a profitable new energy business 3 Classification: Internal 10 november 2017 Statoil ASA

4 OUTLINE Can the O&G Industry Leverage Geothermal Energy Production? What is it? Challenges & opportunities What Statoil is doing 4 Classification: Internal 10 november 2017 Statoil ASA

5 Utility power from geothermal resources GEOTHERMAL RESOURCES ( Source: DOE GTO, energy.gov/eere/geothermal POWER PRODUCTION CONCEPTS ( Source: DOE GTO, energy.gov/eere/geothermal Conventional hydrothermal contain heat, fluid and permeability Flash Steam plants High temperature >150 C EGS (enhanced geothermal systems) need to add fluid and/or permeability Binary Cycle plants Low temperature <150 C 5 Classification: Internal 10 november 2017 Statoil ASA

6 Geothermal power production - mature baseload technology Mature business 1 st commercial geothermal power plant in Lardarello in 1911 A niche technology in the renewable energy space Baseload, but non-dispatchable High capacity factor for well-run plants Worlds First Geothermal Power Station Capacity factors Solar PV 25% Wind 37% Offshore wind 50 % Geothermal >90% Geothermal power station in the Philippines 6 Classification: Internal 10 november 2017 Statoil ASA

7 13 GW current installed - opportunities for growth! 32,200 4,447 Installed High temperature regions Current installed capacity 6,447 Resources North America 522 Installed Resources Cent. America & Caribbean Projects & inferred resources 27, Hydrothermal Resource estimates 48 Installed 30, Resources South America 1,642 3,400 1,271 Installed Resources Europe ,550 1,022 Installed Resources Middle East 11,600 2,249 Installed Resources Africa 3,997 Installed 70,900 5,836 Resources Asia Installed 7,700 1, Resources Aus., NZ & Pacific Sources: ThinkGeoEnergy, Geothermal Energy Association, IGA, Chevron Note: Installed Capacity of 2017 [2015], resource estimates combined ( ) IGA estimates a conservative total potential of 70,000 MW and with technology improvements (extended use of low heat and EGS resources) at around 140,000 MW in power generation capacity. 7 Classification: Internal 10 november 2017 Statoil ASA

8 Competitive LCOE Source: IGA: Geothermal Energy and its role in the future energy mix, GEORG Geoghermal Workshop Nov Classification: Internal 10 november 2017 Statoil ASA

9 What did NOT happen to geothermal the last 15 years? From: Geothermal Development: Mission impossible? or possibly possible. Árni Magnússon, Mannvit, IGC 2016 Steady but limited development - even with competitive LCOE Cost reductions for solar PV and wind threat to the future of geothermal energy Cost efficiency measures are required! CAN THE O&G INDUSTRY LEVERAGE? 9 Classification: Internal 10 november 2017 Statoil ASA

10 Main barrier - upfront risk? Risk picture similar to O&G industry Source: World Bank/ ESMAP, TGE Research (2017) 10 Classification: Internal 10 november 2017 Statoil ASA

11 Project characteristics are familiar to the O&G industry Project break-down (*) Typical cost breakdown Pre-Survey Exploration Test Drilling Feasibility/ Planning Drilling Construction Start-up O&M (*) World Bank / ESMAP 11 Classification: Internal 10 november 2017 Statoil ASA

12 Key geothermal players (>100 MW of capacity) Per company Per industry segment Energy Development Corporation Enel/ Enel Green Power CFE (Comisión Federal de Electricidad) Ormat Calpine AP Renewables Corporation/ Aboitiz Chevron PLN Pertamina/ Pertamina Geothermal Energy KenGen Contact Energy Reykjavik Energy Terra-Gen Cal Energy (Mid American) Tohoku Electric Power Co., Inc. Star Energy Mercury Energy Northern California Power Agency Kyushu Electric Power ICE/ Instituto Costarricense de Electricidad La Geo HS Orka Guris Holding Sarulla Operations Limited Zorlu (1) Utilities & IPP Pure-Play Developer & Geothermal IPP Oil & Gas Players Not considered ? MW installed (1) Chevron has divested their assets MW installed Source: TGE Research (2017) Classification: Internal 10 november 2017 Statoil ASA

13 The geothermal tool box Challenges & opportunities DE-RISKING RESOURCES WELL COST RESERVOIR MANAGEMENT DESIGN & OPERATIONS G&G ISSUES ASSESSMENT OF RESOURCES TEMPERATURE PREDICTION DRILLING EFFICIENCY WELL DESIGN INSTRUMENTATION CHARACTERIZATION DYNAMICS FLOW ASSURANCE CORROSION HSE Potential for customizing technologies and applying O&G practices PROJECT EXECUTION LARGE COMPLEX PROJECTS COUNTRY RISK 13 Classification: Internal 10 november 2017 Statoil ASA

14 Building a technology position for Statoil Build on core O&G compentence Short-term opportunities Driving cost efficiency Ultra-high temperature geothermal Exploration excellence «The perfect well» concept Developing «Geothermal toolbox» Game change technology Production well Injection well C >5 times energy intensity per well Magma Reservoir with hot water IDDP2 field test SUCCESS FACTORS Partnering with world leading industry players Active engagement in Iceland Deep Drilling Project (IDDP) 14 Classification: Internal 10 november 2017 Statoil ASA

15 GEOMAGMA - Going deeper and hotter GOAL Cost reductions (>20%) Increased resource base NEEDS Exploration regional and prospect Reservoir characterization Drilling and well design Reservoir stimulation HT instrumentation Geo-chemistry Materials for supercritical service Systems integration HOW Building on core O&G competence Partnering for success with commercial operators Field pilot in Iceland IDDP2 15 Classification: Internal 10 november 2017 Statoil ASA

16 Geothermal technology development program Partnering for success IDDP2 DeepEGS / GeoWell Technology projects HotCaSe (IPN) DeepVision EU Horizon 2020 MIT Energy Initiative NFR ENERGIX 16 Classification: Internal 10 november 2017 Statoil ASA

17 IDDP our key enabler DeepVision partners: HS Orka, Landsvirkjun, Reykjavik Energy, Orkustofnun, Statoil Financial support from H2020 DEEPEGS and ICDP Drilling and testing IDDP2 at Reykjanes -> Key enabler for qualifying Geomagma technology! Drilling operation completed January 2017: Drilled to 4650 meters MD Reached supercritical reservoir conditions Successful core sampling Next phases harnessing the high-enthalpy energy resource Stimulation Flow test SUCCES CRITERIA Proof-of-concept Successful test period No HSE incidents 17 Classification: Internal 10 november 2017 Statoil ASA

18 Example of Statoil «tool» Temperature prediction by multi-geophysical approach MT CUBE W/ SEISMIC INCIDENTS TEMPERATURE PREDICTION Multi-geophysical approach (MT, GravMag, sesmic) 18 Classification: Internal 10 november 2017 Statoil ASA

19 Main take-aways: Geothermal a competitive resource Global opportunities in emerging markets Cost reductions are required O&G industry can provide competitive Can the O&G Industry Leverage Geothermal Energy Production? leverage Contacts: Hanne Wigum Manager renewables hawig@statoil.com Carsten F Sørlie Project leader geothermal cso@statoil.com Statoil ASA This presentation, including the contents and arrangement of the contents of each individual page or the collection of the pages, are owned by Statoil. Copyright to all material including, but not limited to, written material, photographs, drawings, images, tables and data remains the property of Statoil. All rights reserved. Any other kind of use, reproduction, translation, adaption, arrangement, any other alteration, distribution or storage of this presentation, in whole or in part, without the prior written permission of Statoil is prohibited. The information contained in this presentation may not be accurate, up to date or applicable to the circumstances of any particular case, despite our efforts. Statoil cannot accept any liability for any inaccuracies or omissions.