Denbury is unique among domestic oil and gas companies in that its primary corporate strategy and focus are aimed at developing significant stranded reserves of American oil from depleted reservoirs through CO2 EOR. Today, we use our natural source of CO2 at Jackson Dome, located near Jackson, Mississippi, to increase oil production with CO2 EOR in the Gulf Coast region of the U.S. In the future, CO2 EOR provides a promising method to sequester large volumes of industrial CO2 that would otherwise be vented into the atmosphere.
Every decision at Denbury requires teamwork. It is at the team level that ideas are formed, decisions are discussed and solutions are presented. At Denbury, we pride ourselves on being a team-driven company as we work to enhance effectiveness and ultimately our performance.
Denbury believes that a good relationship with landowners and residents of the communities where we operate is good business. We strive to go the extra mile to establish a solid working relationship in the areas where we conduct our operations. More than simply "doing the right thing", we listen to our constituents and seek to anticipate issues so that we may offer solutions and options to resolve problems and minimize impacts.
How we do this is important. That is why our commitment to health, safety and the environment is critical to achieving our business objectives. Our employees, the natural environment, and how we impact the communities in which we operate come first and foremost. As we move ahead with our planning and execution, we strive to make these obligations a part of Denbury’s culture by focusing on training, preparedness and also by measuring our performance. Communication of our expectations and regular assessment of our performance targets are key tools to achieving results. In addition, we have sought to meet this goal by adding environmental value to numerous aspects of our operations. By improving the fields where we operate and the buildings we work in, undertaking recycling and renewable energy programs, giving community support and partnering in scientific research programs, we believe we build a better company and a higher standard for achievement.
Denbury recognizes that reduction of carbon emissions is an important issue, and we take the responsibility of protecting our environment seriously. Part of our obligation is to report greenhouse gas (“GHG”) emissions and develop procedures and methods to collect data critical for calculating these emissions. Our company is taking steps to measure and record GHG emissions in accordance with the EPA’s mandatory GHG reporting rule. We are also making progress by evaluating and implementing emissions reduction programs within the Company.
CO2 EOR has the potential to store billions of metric tons of CO2 and produce 39 to 48 billion barrels of American oil that are not recoverable today, representing twice the current U.S. proven reserves. This would partially offset oil supplies from foreign countries, which currently represent over one-half of U.S. consumption. The Department of Energy (“DOE”) estimates that there are up to 7.5 billion barrels of recoverable oil in the Gulf Coast region (not including offshore basins) and up to 3.2 billion barrels of recoverable oil in the Rocky Mountain region that could be recovered through CO2 EOR. As policy makers search for ways to capture and sequester CO2 from industrial sources, it is clear that utilizing depleted American oil reservoirs is the best proven opportunity to safely make carbon capture and sequestration (“CCS”) a reality in the near-term.
Recent federal government research quantifies the potential for storing CO2 utilizing EOR. Denbury is advancing its program of CO2 pipeline development to expand its CO2 transportation network capability to reach our network of oil fields. Denbury’s business model is an excellent example of how to combine technology, economics, and science to take a proven, safe process to a new level. We believe our private energy sector model will be a leader in this arena for years to come.