NEORI asks House leaders to include provision in tax legislation

Members of the National Enhanced Oil Recovery Initiative (NEORI) coalition asked US House Ways and Means Committee leaders to include a provision to extend and strengthen the Section 45Q Tax Credit for Carbon Dioxide Sequestration as part of any comprehensive tax reform package that the 115th Congress considers.

Members of the National Enhanced Oil Recovery Initiative (NEORI) coalition asked US House Ways and Means Committee leaders to include a provision to extend and strengthen the Section 45Q Tax Credit for Carbon Dioxide Sequestration as part of any comprehensive tax reform package that the 115th Congress considers.

“Based on 4 decades of experience, the US independent oil and gas industry is the world leader in [carbon dioxide-enhanced oil recovery] and could produce billions of barrels of additional oil from existing fields while safely storing billions of tons of additional C02. However, the available CO2 supply falls short of the much larger potential demand by the industry,” they said in a Feb. 6 letter to Chairman Kevin Brady (R-Tex.) and Ranking Minority Member Richard Neal (D-Mass.).

“The right incentives for innovation and deployment will help drive technology costs down, and many industries—coal and gas electric power generation, coal gasification, ethanol, fertilizer, refining, and natural gas processing—can significantly expand their role in supplying that additional CO2,” said Occidental Petroleum Corp. Chief Executive Officer Vicki A. Halloub and the coalition’s 29 other members.

Contact Nick Snow at nicks@pennwell.com.

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