Carbon dioxide (CO2) enhanced oil recovery (EOR) is considered one of the technologies to help promote larger scale deployment of geologic CO2 storage because of associated economic benefits through CO2 storage, associated benefits of oil recovery, and the 45Q tax credit (a tax incentive that would reduce CO2 emission in the United States) as well as potential for utilization of existing infrastructure. The objective of this study is to demonstrate how optimal operation strategies (including well completions and controls) can be used to optimize both CO2 storage and oil recovery. The optimization problem was focused on joint estimation of well completions (i.e., fraction of injection/production well perforations in each reservoir layer) and CO2 injection/oil production controls [i.e., rates or bottomhole pressures (BHPs)] that maximize the net present value (NPV) in a combined CO2-EOR and CO2 storage operation. We used the newly developed stochastic simplex approximate gradient (StoSAG), one of the most efficient optimization algorithms in the reservoir optimization community, to solve the optimization problem. The performance of the joint optimization approach was compared with the performance of the well-control-only optimization approach. The superiority of joint optimization was demonstrated with two examples. In addition, the performance of co-optimization of CO2 storage and oil recovery approach was compared with the performances of maximization of only CO2 storage and maximization of only oil recovery approaches.

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