Abstract

Presently, 3+ BCF of CO2 are processed daily in the Permian Basin. In addition to the 1+ BCF of daily re-cycle CO2 utilized in the EOR projects in the basin, an additional 2 BCF of ‘new’ CO2 are imported into the basin. It is estimated that a volume of CO2 equal to the new CO2 or ~2 BCF a day in our EOR projects is incidentally sequester. Since 1986, the number of CO2 EOR projects in the basin has grown from <20 to 62, including 9 projects where CO2 is being injected into the Residual Oil Zones beneath the Main Pay. This total volume of new CO2 is estimated to have a value near $700 million per year and is currently restricted by the sources or, in the case of the Cortez line from Cortez, CO to Denver City, Tx, by pipeline capacity. CO2 from the Marathon Thrust Belt and expansions at McElmo Dome and Doe Canyon, in Colorado, have the potential for adding additional supplies but a significant backlog of EOR projects remains. Two CO2 capture equipped coal fired power plants are being permitted in the basin; however, additional long term supplies of anthropogenic CO2 will be needed.

With the addition of Residual Oil Zone EOR projects and the long term potential for Greenfield CO2 EOR ROZ projects, significant additional supplies of CO2 will be necessary in the long term. With the potential for CO2 utilization in the Permian Basin, and the long term potential for CO2 utilization in existing fields and Greenfield ROZ projects, it is critical that CO2 be treated as a commodity and not as a waste product from an industrial source. All CO2 EOR projects have incidental CO2 Storage and long term potential for CO2 Storage in conjunction with additional oil production. For energy security and environmental reasons, these types of projects should be the first place industry and government look to store anthropogenic CO2.