Abstarct: One of the most important challenges in human life on earth is global warming phenomenon which causes increasing the average temperature of Earth. Increasing greenhouse gases in atmosphere over the current century has resulted in considerable increase of temperature and environmental concerns. With increasing the population growth and industrial development, the greenhouse gases emissions is increased. Due to the increase of the gas in the Earth's atmosphere, the management of the gas emission is required. The carbon capture and storage (CCS) process is a solution for gas emission management. Storage of CO2 in underground structures and in particular, among the potential options for storing the gas, storage in oil and gas reservoir due to advantages such as increase of hydrocarbon production and the storage facility, are presented. To safely store carbon dioxide in enhanced oil recovery/CO2 sequestration projects it is important to ensure the integrity of the caprock during and after production and injection. A change in fluid pressure within a porous reservoir will generally induce stress distribution within the reservoir and the rocks which surround it. Amongst the potential hazards resulting from these induced stresses may breach the hydraulic integrity of the caprock which bounds the reservoir. The Mohr - Coulomb failure criterion has been used to study the probability of induced fracture within the reservoir. Sensitivity analysis has been performed to study the effects of different parameters such as porosity, permeability, injection pressure, injection rate, and water saturation.