US Sen. John D. Rockefeller IV (D-W.Va.) introduced legislation that would increase tax credits for using carbon dioxide in enhanced oil recovery, and establish a certification process to help future projects obtain financing. Growth of the CO2 EOR industry depends upon capturing substantially more CO2 from manmade sources, the senator said on May 5. “Authorized to only provide tax credits for 75 million tons of CO2, the existing 45Q program is insufficient to take advantage of CO2-EOR’s potential,” he maintained. “Already, tax credits have been claimed for 21 million tons, and the remaining pool of tax credits likely will be exhausted in the next several years.” The bill also would establish periodic reviews of the CO2 sequestration credit under Section 45Q of the federal tax code and provide the US Treasury Secretary authority to ensure that new tax credits would be revenue positive to the federal government over time when taking into account the revenue produced from increased oil recovery resulting from the credit compared with tax revenue lost from credits being claimed, Rockefeller said. According to the National Energy Technology Laboratory (NETL), increasing the supply of CO2 captured from manmade sources has the potential to increase American oil production by tens of billions of barrels, while safely storing billions of tons of CO2 underground, the senator added. He introduced his Expanding Carbon Capture through Enhanced Oil Recovery Act alongside another bill, the Carbon Capture and Sequestration Deployment Act, which would authorize $1 billion over 15 years for a cooperative industry-government research and development program in the US Department of Energy’s Fossil Energy Office. Other provisions It also would modify Section 45Q by allowing projects to apply for a guaranteed allocation of credits for future use, and authorize $20 billion in loan guarantees to be used for the construction of new commercial-scale electric generation units or industrial facilities utilizing carbon capture and storage (CCS) technology; the retrofit of existing commercial-scale electric generation units or industrial facilities utilizing CCS technology; and the construction of CO2 transmission pipelines. “The reality for West Virginia and the rest of the country is that we need coal; we can’t meet our energy needs without it,” Rockefeller said. “It is simply unrealistic to think that we can stop burning coal and shift to cleaner sources of energy instantly. And it is equally unrealistic to think that coal is as clean as it could be, or that it will be around forever. Either way, we have to prepare for the future.” The National Enhanced Oil Recovery Initiative, a coalition organized by the Center for Climate and Energy Solutions (formerly the Pew Center on Global Climate Change), and the Great Plains Institute, said the tax credit program in Rockefeller’s CO2-EOR bill would pay for itself within 10 years through the federal revenue generated from new domestic oil production. “This tax incentive will boost domestic oil production, generate net federal revenue, encourage the development of much-needed carbon capture technology, and safely store carbon dioxide underground,” said Brad Crabtree, vice-president for fossil energy at the Great Plains Institute. “[CCS] is a critical technology to cut carbon emissions while coal and natural gas remain part of our energy mix,” said Eileen Claussen, president of the Center for Climate and Energy Solutions. “Providing incentives to capture CO2 for use in enhanced oil recovery will help bring more commercial-scale projects on line, which will help advance carbon capture technology and lower costs.” Contact Nick Snow at firstname.lastname@example.org.
WILLISTON, N.D. — Natural gas that is flared today could one day be used to extract more oil from the Bakken. The Energy and Environmental Research Center at the University of North Dakota is in the early stages of studying enhanced oil recovery using natural gas. “We’re actually very encouraged...
The government of Alberta has budgeted $144 million (Can.) this year for two projects it is supporting for carbon capture and sequestration (CCS) related to oil sands development (OGJ Online, Feb. 26, 2013). The province plans to invest almost $1.3 billion over 15 years in the projects, the Alberta Carbon Trunk Line and Quest project, which are to start up in 2015 and store 2.76 million tonnes/year of carbon dioxide. The 240-km Alberta Carbon Trunk Line will collect CO2 from Industrial Heartland upgraders and carry the gas to fields for use in enhanced oil recovery. The Quest project, led by Shell Canada, will capture and sequester in the subsurface CO2 from the Scotford upgrader near Fort Saskatchewan.
Increasing enhanced oil recovery (EOR) activities in the Permian Basin are driving up demand for carbon dioxide (CO2), which Kinder Morgan Energy Partners LP plans to help meet with a new 213-mile, 16-inch diameter pipeline.
The Petroleum Technology Research Centre (PTRC) now has close to $2 million to study the long-term impact of carbon-dioxide storage in enhanced oil recovery (EOR) projects, according to the newly appointed CEO of the Regina-based research facility.
This week the environmental movement suffered its biggest defeat since Climategate. And at the hands of its most hated enemy: Big Oil. Here are the reasons why the court ruling by a US federal judge that Chevron should not have to pay $9.5 billion in damages to victims of oil pollution in Ecuador is a victory for common sense and justice which we should all be celebrating.
Muscat, Petroleum Development Oman (PDO) announced on Monday that it is executing 16 enhanced oil recovery (EOR) field developments and trials. The initiative follows its record production and safety figures in 2013.
Scientists from the Canadian Light Source and Alberta Innovates Technology Futures have embarked on a research project that is changing what we know about oil recovery and could result in more environmentally efficient methods of getting oil.
Press Release May 5, 2014 Contact: Laura Rehrmann, C2ES, 703-516-0621, email@example.com Brad Crabtree, GPI, 701-647-2041, firstname.lastname@example.org Coalition Welcomes Bill to Encourage US Oil Production Using Captured CO2 Tax incentive could spur additional 8 billion barrels of US oil production while safely […]
Kinder Morgan Partners (KMP, KMI) says it will invest ~$671M to grow its carbon dioxide infrastructure in southwest Colorado and New Mexico for use in enhanced oil recovery projects. KMP plans to expand its CO2 production op
In order to maintain the viability of the oil and gas industry, the Saskatchewan government is planning to invest in carbon capture and storage research.The Saskatchewan Ministry of the Economy has announced a new funding agreement with the Petroleum Technology Research Centre (PTRC) to support the Saskatchewan CO2 Oilfield Use for Storage and EOR
Denbury Reports 2013 Fourth Quarter and Annual Results MarketWatch We plan to drill six additional infill horizontal wells at Hartzog Draw this year and have identified over 30 additional locations that we plan to drill over the next few years to...