The use of CO2 Enhanced Oil Recovery techniques in the oilfield has experienced a renaissance over the last 10 years, but many longtime fans of EOR also are focused on monetizing their innovations in the burgeoning carbon capture, use and storage industry. Houston-based Occidental for years has employed EOR, specifically in the Permian where the company injects more than 950 BCF per year of carbon dioxide to recover between 10 and 25% more oil. Oxy is developing several projects to capture emissions from its EOR operations, as well as using manmade CO2, which the company says has the potential to substantially reduce greenhouse gases. Plano, Texas-based Denbury Resources also has emerged a leader in EOR, whose tertiary operations now generate the majority of its production. Denbury injects more than 3 million tons a year of industrial CO2 and owns the Gulf Coast region’s largest, only significant, naturally occurring source of carbon dioxide. With more than 750 miles of CO2 pipelines, Denbury plans to further leverage its EOR expertise and assets for what is undoubtedly a growing market to reduce carbon emissions.
Posted on March 10, 2020