The cost of carbon dioxide, CO2, is the principal component of the cost of miscible flooding for enhanced oil recovery, EOR. This paper presents an engineering-economic framework that shows how to estimate the amount an EOR project can afford to pay for delivered CO2, This amount (here called "permissible cost"), depends on many factors, both geologic and financial. We show how the effects of these factors combine to produce the permissible cost, with the emphasis on its sensitivity to flooding efficiency, oil price, and internal rate of return. We use parameters given in the National Petroleum Council's Enhanced Oil Recovery reports (1976 and 1984) to illustrate the results for two hypothetical reservoirs. These results display variability that should be expected from different fields.

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