American Oil and Gas Reporter - September 2023 - 85

SpecialReport: CCS Feasibility Studies
Carbon Sequestration Drives Surveys
By Colter Cookson
The 45Q tax credit for carbon capture
and storage has increased substantially
since its introduction in 2008. Now at
$85 for every metric ton, it is helping
drive a search for storage sites that are
close to emission sources and have the
right geology to contain carbon.
" Since 2020, we have seen an increase
in seismic acquisitions related to identifying
carbon storage sites, " says Erick
Erwin, chief financial officer of Paragon
Geophysical Services Inc., a seismic acquisition
company based in Wichita, Ks.
" In 2022, CCS accounted for about 40%
of the square miles we surveyed. "
Erwin says the company has performed
more than 30 CCS surveys. " These surveys
are comparable in size and scope to the
ones we do for oil and gas, " he comments.
" The smallest project was about two
square miles, but we have acquired one
that was 250 square miles. As with oil
and gas surveys, the parameters change
based on the depth and situation the client
is looking at. "
The smaller surveys may be for individual
plants that want to capture the
carbon dioxide they produce nearby, while
the larger ones may be for a site that will
connect to several sources by pipeline,
Erwin says.
" Many of the surveys we have done
are in North Dakota and Wyoming, "
Erwin mentions. " These states, as well
as Louisiana, have primacy over the permitting
process for Class VI wells, the
ones that are used to inject CO2 for
storage rather than for enhanced oil recovery
or some other purpose. "
In other states, the U.S. Environmental
Protection Agency handles permitting for
Class VI wells.
" Everybody is still trying to figure
out the regulations and what companies
will be required to do to monitor the injected
CO2, but for now, the assumption
is that they will need to take a baseline
survey and periodically repeat it to see
what has changed. Whether that needs to
happen every 18 months or every five
years is still up in the air, " he says.
The work for time lapse surveys resembles
baselines, Erwin notes. " For the
most part, we would be starting from
scratch. We may know of some hazards
from the previous survey, but we still need
to do hazard mapping again in case new
pipelines, houses, water wells, power lines
or other infrastructure has been built. "
Even today, CCS has helped Paragon
persevere through dips in demand for oil
field seismic acquisition, Erwin says. He
cautions that whether it continues to account
for significant activity depends on the
longevity of the underlying tax credits.
" We went through a cycle with geothermal
where it became a sizable portion
of our business but it lost popularity once
the tax credits ran out, " Erwin recalls.
" Geothermal is an extremely expensive
process that requires several wells to produce
hot water and equipment to inject
that water back into the ground, which
means that building a geothermal plant
of any scale requires millions of dollars
up front. On top of that, even developers
who shoot seismic and do other due diligence
run the risk of discovering the
water is too cool.
" CCS also requires an upfront investment, "
he notes. " If support for CCS
fades and the tax credits go away, that investment
may be hard to justify. "
Oil Field Surveys
Although seismic shoots focusing on
hydrocarbon production still account for
most of Paragon's business, Erwin says
the surveys have become more focused.
" The bids we see are for smaller-scale
projects that are designed to get more
detailed information on specific areas, "
he clarifies. " There is enough data already
shot across the country that many people
purchase existing data and put their spin
on it rather than getting new data. "
When new data is acquired, it's often
because efficiency gains have enabled
more thorough surveys, Erwin says. " In
2010, our crews had to set up lines of
geophones connected by 50-pound cables.
Cows, rodents and other animals loved
chewing on the cables, so we had to
replace them constantly during the shoot, "
he recalls. " Today, our receivers are Bluetooth-enabled
nodes that weigh only two
pounds. They are much faster to deploy
and easier to maintain. "
The node-based surveys have reduced
impacts on landowners significantly, Erwin
adds. " With cables, we had to run UTVs
down each line to check for damage and
perform repairs, " he says. " The nodes
check themselves and send alerts to a
tablet or recording trailer if there is an issue.
Sometimes an animal kicks over a
node, but that is less common than it
used to be. In fact, we may only need to
access the field twice: when we lay the
nodes down and when we pick them up. "
Over time, it has become much easier
to transport equipment, Erwin continues.
Interest in carbon capture and storage is driving many seismic surveys, Paragon
Geophysical Services Inc. reports. The CCS-oriented surveys the company has performed
range in size from two square miles to 250 square miles.
SEPTEMBER 2023 85
American Oil and Gas Reporter - September 2023

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