Senators offer bill to boost use of carbon dioxide in EOR

US Sens. Kent Conrad (D-ND), Mike Enzi (R-Wyo.), and Jay Rockefeller (D-W.Va.) introduced a bill on Sept. 20 designed to expand the use of carbon dioxide for enhanced oil recovery. S. 3581 would modify a federal carbon capture and storage tax incentive that provides a $10/tonne credit for CO2 used in EOR and $20/tonne for CO2 placed directly into secure geological storage.

“I am confident many of my colleagues will recognize the incredible potential of taking carbon dioxide that would otherwise be released into the atmosphere and sending it underground to produce far more oil than we otherwise could,” Conrad said.

The bill would adopt the National Enhanced Oil Recovery Initiative’s (NEORI) February recommendations to modestly improve the federal tax code’s Section 45Q CO2 sequestration provision, which is authorized to provide credits for up to 75 million tonnes of CO2.

The change would make modest, functional improvements in the tax code provision at little or no additional cost, according to NEORI, which the Great Plains Institute in Minneapolis and the Center for Climate & Energy Solutions (C2ES) in Arlington, Va., organized to help realize CO2-EOR’s energy, economic, and environmental potential.

The recommendations also would help several significant CO2-EOR projects secure private financing and operate commercially, NEORI said. CO2-EOR accounts for 6% of US crude oil production, it noted.

“This legislation will help innovative companies attract the private investment they need to get key carbon capture technology projects across the finish line,” suggested Brad Crabtree, the Great Plains Institute’s policy director and NEORI’s codirector.

C2ES Pres. Eileen Claussen called the bill an important step toward expanding captured CO2’s use in EOR to boost US oil production, create jobs, spur economic growth, and reduce carbon emissions.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

Judge bars Anadarko e-mails as evidence in Macondo blowout hearing

03/21/2014 A federal district judge in New Orleans refused to accept e-mails between Anadarko Petroleum Corp. and BP PLC as evidence in a hearing to determine...

Industry group welcomes most UK budget moves

03/21/2014 Oil & Gas UK voiced support for all but one of several measures affecting the offshore producing industry announced in the UK government’s annu...

MARKET WATCH: Crude oil, gas futures prices slide entering spring

03/21/2014

The first day of spring in the northern hemisphere was marked by lower crude oil and natural gas futures prices.

OMV acquires West of Shetland licenses from Hess

03/21/2014 OMV AG has reached an agreement with Hess Corp. to acquire four licenses in West of Shetland, UK, including Cambo field and the Blackrock prospect,...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected