1. Schlumberger Carbon Services Economics & Risk of Scaling Up for Carbon Storage John Tombari Vice President North & South America Schlumberger Carbon Services NARUC Mar 31 2008

2. 2 Schlumberger Carbon Services Storage fundamentals CO 2 ? Post injection Saline Formation Caprock Capacity: (match to source & estimate plume shape) bulk volume (seismic) X porosity (logs) X “ storage factor” Injectivity (how many wells) permeability from core, log & well test Containment (caprock integrity, fractures, wellbore integrity, faults) 5 miles 3000 ft 3500 ft

3. 3 Schlumberger Carbon Services CO2 Technology Seismic Services Wellbore Integrity Evaluation Drilling & Completion Cementing Logging, Testing & Sampling Lab Analysis Data Processing Modeling & Prediction Data Management Monitoring What resources will be needed? People + Technology & Tools for Team Integration

4. 4 Schlumberger Carbon Services Country How can uncertainty be reduced?.

5. 5 Schlumberger Carbon Services Country How can uncertainty be reduced?. Regional

6. 6 Schlumberger Carbon Services Country How can uncertainty be reduced?. Regional Local 10 miles

7. 7 Schlumberger Carbon Services sand How can uncertainty be reduced?

8. 8 Schlumberger Carbon Services How will technology be valued? We can see millions of years in the past

9. 9 Schlumberger Carbon Services low resolution baseline data high resolution data Overlay of 1992 & 2001 dataOverlay of 2001 & 2003 data Technology Planning is important (4-D Seismic)

10. 10 Schlumberger Carbon Services How can we reduce costs? Area of review estimate Ownership? Area of review refined Permit application? Periodic review? Closure? Release of Liability?

11. 11 Schlumberger Carbon Services Summary Non-technical factors are the key to progress Clear regulatory guidelines & and long term liability protection are needed for commercial involvement. Resource requirements will be large Uncertainties can be managed with technology. Technology must be valued Proper baseline characterization is the key to reducing cost: number of wells, frequency of monitoring, public acceptance