POTENTIAL FOR LONG TERM USES OF ANTHROPOGENIC CO2 IN THE PERMIAN BASIN

Presently, close to 4 BCF of CO₂ are processed daily in the Permian Basin. In addition to the 2 BCF of daily re-cycle CO₂ utilized in the EOR projects in the basin, an additional 2 BCF of CO₂ are imported into the basin. It is estimated that we incidentally sequester .5 BCF of CO₂ a day in our EOR projects. Since 1986, the number of CO₂ EOR projects in the basin has grown from less than 20 to more than 60, including 7 projects where CO₂ is being injected into the Residual Oil Zone’s beneath the Main Pay. This total volume is currently restricted only by the source to field pipeline capacity. CO₂ from the Marathon Thrust Belt and expansion of Doe Canyon, in southwestern Colorado, and West Bravo Dome in New Mexico have the potential for adding additional supplies. A new CO₂ and Helium source, the St. Johns CO₂ Field in eastern Arizona and western New Mexico has been delineated and awaits the construction of a pipeline, but a significant backlog of projects still remains. Two CO₂ capture coal fired power plants are being permitted in the basin; however, additional long term supplies of CO₂ will be needed.

With the addition of Residual Oil Zone EOR projects and the long term potential for Greenfield CO₂ EOR 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 ROZ and Greenfield projects, it is critical that CO2 be treated as a commodity and not a toxic waste. All CO₂ EOR projects have incidental CO₂ Storage and the long term potential for CO₂ Storage in conjunction with additional oil production. With the recent DOE change in focus to Carbon Capture Utilization and Storage (CCUS), these projects should be the first place industry and government look to for long term storage of CO₂.