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Residual oil zones (ROZs) have large potential for CO2 enhanced oil recovery (EOR) and geologic storage. During CO2 injection, the migration of CO2 in ROZs controls the performance of both EOR and storage. However, it has not been clearly visualized and understood that how geological heterogeneity factors control the transport of CO2 in ROZs. In this study, the oil recovery performance and geologic storage potential during continuous CO2 injection in a representative ROZ are studied based on geostatistical modelling and high-fidelity three-phase flow simulation. We examined the influence of autocorrelation length of permeability, global heterogeneity (Dykstra–Parsons coefficient), and permeability anisotropy on cumulative oil recovery and CO2 retention fraction. Simulation results indicate that, as the permeability autocorrelation length increases, the cumulative oil recovery and CO2 storage efficiency decrease. This results from the accelerated migration of CO2 along high permeability zones (i.e., gas channeling). The increase in global heterogeneity and permeability anisotropies can lead to low oil recovery and poor CO2 sequestration performance, depending on the degree of CO2 channeling. The net utilization ratio of CO2 (CO2 retained/oil produced) unfavorably increases with both autocorrelation length and Dykstra–Parsons coefficient, but decreases with the increase in kv/kh. Such a decrease is attributed to enlarged swept volume induced by gravity override. The study provides important implications for field-scale CO2 EOR and storage applications in ROZs. [ABSTRACT FROM AUTHOR]