We Serve and Support Our Communities

Investing

GRI:
G4-EC1
& EC8
Economic
Investments
& Impacts

Denbury’s strong desire and commitment to invest in our communities has many positive economic, environmental and social impacts. Our activities reinvigorate labor markets, businesses and the local environment. Our projects are generational, and our long-term investments will generate millions of dollars in tax revenue and other economic activity for our states and communities.

State and community investment

Denbury is unique among domestic oil and gas companies, because our primary corporate strategy and focus is aimed at developing significant stranded reserves of American oil from depleted reservoirs through carbon dioxide enhanced oil recovery (“CO2 EOR”). During the CO2 EOR process, we reinvest in our areas of operation by cleaning up legacy fields, making possible future growth and long-term community development.

Facility development and field improvements provide a significant economic injection to both state and local economies. Well work, field infrastructure improvements, land acquisition, CO2 recycle facility construction, power installation and other capital expenditures can be in the hundreds of millions of dollars per field. Direct and indirect impacts include new job creation and growth in labor income and gross regional product, resulting in added value to the area through state and local tax revenue, royalty income and product sales. Our projects generally can span between 10-20 years of consistent investment.

Our process rejuvenates fields as we install equipment with cutting-edge technology to ensure identification of age-related problems and modernization of facilities to prepare them for CO2 injection. CO2 EOR operations require specialized equipment that replaces and consolidates older equipment and facilities, resulting in a smaller environmental footprint from production operations. Areas of field improvement routinely include:

  • mechanical integrity review of wellbores and surface production facilities;
  • pressure testing of existing casing and replacement (if necessary) of old tubing;
  • installation of new wellhead equipment;
  • installation of emissions reduction equipment;
  • installation of remote telemetry field monitoring equipment that reduces vehicle traffic;
  • installation of sound barriers, silencers and landscaping;
  • reclamation of land after removal of old and unneeded equipment;
  • replacement of old production flow lines with new flow lines; and
  • installation of other updated technical equipment to assist with 24/7 operations and safety monitoring activities.

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Positive economic impact

Our operations have a positive economic impact on many groups inside and outside our local communities. Denbury’s royalty interest owners share in the benefits of our projects and their interests are closely aligned with ours. Local employees also benefit by receiving competitive salary and benefits, which in turn support their families and allows them to invest in their communities. Millions of dollars in tax revenue are generated annually by our activities in our states and communities. Additionally, the groups and individuals that finance our business through the purchase of Denbury bonds earn a share of the value we create in the form of interest payments.

A Look at Denbury’s Investment in Mississippi

~$5.0 billion Since 1999, it is estimated that Denbury has made over $5.0 billion in capital investments in the state of Mississippi.

Denbury has a strong, long-term commitment to Mississippi through our growing oil production, operations and investments in our CO2 development and transportation projects. For the fiscal year ending December 31, 2014, it is estimated that our actives had the following direct economic impact in the state of Mississippi:

Annual
Maintenance &
Severance Taxes
~$37 million
Annual
Royalty
Payments
~$273 million
Annual
Payroll &
Benefits
~$45 million
Average
Employee Annual
Salary & Benefits
~$119 thousand 

Employees
375

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Reduction of dependence on foreign oil

The U.S. Department of Energy has estimated that 83 billion barrels of technically recoverable oil may be produced utilizing CO2 EOR. It has been estimated that it may be feasible to expand U.S. production from EOR to as much as four million barrels of oil per day if conditions permit. Should this occur, that would represent roughly one-third of current U.S. daily oil production. The impact of this expansion would have substantial benefits for U.S. energy independence and for our balance of trade. Denbury is positioned to play a critical role in this expansion. Our two operating areas, the Gulf Coast and Rocky Mountain regions, are strategically located in areas in which the DOE estimates there are up to 16 billion barrels of oil that could be recovered through CO2 EOR. As EOR grows to contribute significant and stable U.S. oil supplies from existing fields within our borders, it will positively impact all sectors of the U.S. economy and substantially contribute to American energy security.

If total U.S. CO2 EOR opportunity is produced, it could represent 1/3 of current U.S. daily production

Bbls 83 billion Technically recoverable U.S. oil produced utilizing CO2 EOR

Bbls 16 billion CO2 EOR oil potential in Denbury’s regions

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Message From Our CEO

Phil Rykhoek President and Chief Executive Officer

Download Our 2015 Corporate Reponsibility Report

report
Denbury Resources Inc. | 5320 Legacy Drive Plano, TX 75024 | LEGAL NOTICE | © 2015 Denbury Resources Inc.
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