A commercial technology established in North America in 1972, CO2-EOR could more than double economically recoverable U.S. oil reserves.
Increasing EOR production by using captured CO2 is a compelling and largely unheralded example of American private sector innovation that supports several urgent national priorities:
• Increase U.S. oil production from already developed fields with reduced risk and impact;
• Strengthen America’s national security by reducing our dependence on unstable and/or hostile regimes for our oil supply;
• Create new, high-paying American jobs, and retain and attract private sector investment in our economy;
• Reduce trade deficits by keeping petroleum expenditures at home and at work in the U.S. economy; and
• Achieve significant net carbon reductions by providing oil, natural gas, coal, ethanol and other industries a commercially proven option for lowering the CO2-intensity of their products.
The U.S. needs to capture more CO2 to increase domestic oil production. CO2-EOR projects use CO2 to access and mobilize oil that otherwise would not be produced using conventional technologies. One study states that with an increase in CO2 supply and by applying existing best practices CO2-EOR has the potential to add 26 – 60 billion barrels of oil to U.S. domestic oil production.
CO2 capture projects and pipeline infrastructure are needed to meet this demand.
Significant amounts of CO2 captured and transported from power plants and industrial sources are urgently needed to boost U.S. oil production through CO2-EOR.
This requires private investment, and federal and state policies and incentives to support additional deployment of CO2 capture projects and infrastructure. These projects will provide jobs and economic benefits for local and state governments. At a time when federal and state officials are struggling to reduce deficits, tax revenues generated from new projects can offset the additional cost of state and federal incentives and even increase government revenue over time.