The BLM has recently announced its support to build 2,000 miles of carbon dioxide pipelines across Wyo., which would connect existing coal-fired power plants that emit CO2 with oil field operators that use CO2 to produce more oil from their fields. Read, a network of sorts that will essentially connect emitters with energy producers and serve both.
The State of Wyo., has initiated a plan just for this reason, but is concerned it will get little if any offers with coffers in the current oil and gas environment to construct CO2 pipeline projects that also could offer storage for producers to stimulate their wells. See https://www.eenews.net/stories/1062920197
So, let’s take a step back and see what’s going on with the new carbon capture sector.
Houston-based Occidental Petroleum, one of the largest operators in the West Texas Permian, inked its name more than 40 years ago on Enhanced Oil Recovery (EOR) techniques to recover 10-25%–and as much as 50%–more crude oil. The company has since become the largest E&P using EOR processes that capture and reuse CO2 instead of releasing it into the atmosphere.
Then there’s Denbury Resources, an E&P and midstream operator headquartered in Plano, Texas, which exclusively uses EOR at its reserves in Miss., Texas, La., Mont., N.D., and Wyo. The company injects more than 3 million tons a year of industrial CO2 and sources the Gulf Coast region’s largest, naturally occurring source of carbon dioxide—the Jackson Dome.
With more than 750 miles of CO2 pipelines, Denbury owns and operates:
- The 183-mile DEJD pipeline that runs from the Gulf Coast’s Jackson Dome to Donaldsonville, La.;
- The 320-mile Green Pipeline that extends from southeast Baton Rouge to south of Houston;
- The NEJD CO2 Pipeline from Jackson Dome to Donaldsville, La.;
- Free State Pipeline that transports CO2 from Denbury’s tertiary fields in east Miss.,
- Delta Pipeline between Jackson Dome from the Tinsley Field to Dehli Field;
- The 50-mile West Gwinfield Pipeline, which Denbury converted from natural gas to CO2 to service the Cranfield Field.
- The 232-mile Greencore Pipeline that originates at ConocoPhillips-operated Lost Cabin gas plant in Wyo., to Bell Creek Field, Mont.
In the interim, energy heavyweights like ExxonMobil hold working interests in approximately one-fifth of the world’s total carbon capture capacity, claiming 7 million TPY of CO2 capture.