The National Enhanced Oil Recovery Initiative (NEORI) was formed to help realize CO2-EOR’s full potential as a national energy security, economic, and environmental strategy.
Organized by the Center for Climate and Energy Solutions (C2ES) and the Great Plains Institute (GPI), the Initiative brings together a broad and unusual coalition of executives from industry; state officials, legislators and regulators; and environmental and labor representatives.
NEORI was launched on July 17, 2011 in Washington, D.C., with bipartisan support from four U.S. Senators and a member of Congress. Project participants met on three occasions to define the scope and expectations of the project, provide feedback on technical matters, and provide policy guidance. They gathered in Washington, DC with the launch of the project on July 17, 2011; in Traverse City, MI on September 21-22; and in Houston, TX, on November 1-2. The latter two meetings included field visits to commercial EOR operations and to a CO2 capture facility.
NEORI released recommendations on February 28, 2012, to boost domestic oil production and reduce CO2 emissions through the expanded use of EOR. Senator Kent Conrad (D-ND) and Congressman Mike Conaway (R-TX) welcome the group’s recommendations at an event on Capitol Hill. Sens. Max Baucus (D-MT), Kent Conrad (D-ND), John Hoeven (R-ND), Richard Lugar (R-IN), and Congressmen Mike Conaway (R-TX) and Rick Berg (R-ND) released written statements. In September 2012, Sens. Conrad, Enzi (R-WY), and Rockefeller (D-WV) introduced legislation (S.3581) adopting NEORI’s consensus recommendations to modify the existing federal Section 45Q Tax Credit for Carbon Sequestration.
In May 2014, Sen. Rockefeller introduced the Expanding Carbon Capture through Enhanced Oil Recovery Act of 2014 (S. 2288) that adopts NEORI’s centerpiece recommendations for expanding and reforming the Section 45Q tax credit.
According to NEORI’s analysis, a more robust federal tax credit would increase U.S. oil production from EOR by billions of barrels over time, while storing billions of tons of CO2 from man-made sources underground. The program would pay for itself within 10 years through increased federal revenues generated by boosting domestic oil production, with an estimated net return of $100 billion over 40 years. In addition, the improved incentive also would reduce the trade deficit by saving the United States billions in expenditures on imported oil over the same period.
For more information, please contact:
Brad Crabtree (firstname.lastname@example.org) or Fatima Ahmad (email@example.com)