CHEYENNE – A multi-state group co-convened by Wyoming Governor Matt Mead and Montana Governor Steve Bullock has identified several opportunities to increase the capture of carbon dioxide (CO2) for use in enhanced oil recovery (EOR) processes.
Representatives of 14 states, as well as industry leaders, collaborated on the review and have released their report – “Putting the Puzzle Together: State and Federal Policy Drivers for Growing America’s Carbon Capture and CO2-EOR Industry.”
Efforts to capture CO2 in the enhanced oil recovery process are seen as a key to providing a long-term, low-carbon path to the production of fossil energy resources.
“We have the resources in this country to become truly energy independent,” Governor Mead said. “I have advocated for an all-inclusive energy mix and believe that the responsible development of hydrocarbons is critically important. This report makes recommendations that will enhance our nation’s energy and economic security.”
Governor Mead commended the report, noting it is consistent with his continuing effort to provide incentives to CO2-EOR work. He encouraged the United States Senate to address one specific recommendation – passage of the Carbon Capture, Utilization and Storage Act (S.3179) – by the end of the year. The bill would improve and expand an existing tax credit for storage of CO2, known as 45Q.
Other federal incentives for CO2-EOR identified in the report include:
- Deploying a revenue neutral mechanism to stabilize CO2 purchase price; and
- Options that would provide project proponents better opportunities for project financing.
Mead noted the bipartisan cooperation underscoring the group’s recommendations. Mead said he and Governor Bullock will continue to work to implement the opportunities identified in the report.
The full report can be viewed here: http://www.betterenergy.org/EORpolicy