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Abundant energy. Negative emissions.
The world needs energy—and it also needs to address climate change by reducing carbon emissions. Enhanced Oil Recovery (“EOR”) is a proven solution that meets both goals. EOR dramatically increases oil recovery, while simultaneously offsetting emissions by capturing and storing carbon dioxide (“CO2”) underground.
Denbury is a leading producer of carbon-negative oil, with more than 20 years of EOR experience. In 2020 and 2021, the storage of industrial-sourced CO2 used in our EOR operations more than offset Denbury’s Scope 1 and Scope 2 emissions. We are working to fully offset our scope 1, 2, and 3 CO2 emissions by 2030, enabling global emissions reductions while providing the most environmentally friendly oil possible.
Operations Highlights
22.7 MMBoe
1,700 pounds of industrial-sourced CO2
Net negative Scope 1 and Scope 2
22.7 MMBoe
1,700 pounds of industrial-sourced CO2
Net negative Scope 1 and Scope 2
What is CO2 flooding?
CO2 flooding is a proven Enhanced Oil Recovery (“EOR”) process used to increase oil production by injecting CO2 into an existing underground oil reservoir. Here’s how it works:
Step 1
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Step 5
Step 1
Step 2
Step 3
Step 4
Step 5
Stages of Oil Recovery
Conventional oil recovery methods can leave up to 70% of the original oil in place. EOR can deliver almost as much oil as primary and secondary recovery. Denbury’s experience has shown that EOR can recover an additional 10% to 20% of the original oil in place.
Oil and gas fluids flow and produce naturally or with the assistance of artificial lift such as rod pump or electrical submersible pumps.
Water is injected into the oil and gas reservoir for pressure support and to recover additional reserves.
CO2 is injected to sweep remaining oil and increase production.
Over 20 Years of Leadership in EOR
Denbury began EOR operations in 1999, and today sources CO2 from both naturally-occurring underground reservoirs, and industrial sources. The CO2 we utilize from industrial sources would otherwise be released into the atmosphere. Denbury has been using industrially-sourced CO2 since 2013, and we are currently working to replace the naturally sourced CO2 in our operations with industrially-sourced CO2, to contribute to the decarbonization efforts of our world and increase our percentage of carbon-negative blue oil production.
The Denbury Carbon Solutions team was formed to advance Denbury’s leadership in the high-growth CCUS industry. We believe our EOR operations provide significant long-term production growth potential at reasonable return metrics, with relatively low risk.
In 1999, Denbury acquired its first EOR field in Little Creek, Mississippi. Shortly thereafter, Denbury acquired the naturally-occurring CO2 source, Jackson Dome, and the 20-inch, 183-mile NEJD Pipeline, which has the capacity to transport approximately 11 million metric tonnes per annum (“MMTPA”).
In 2003, Denbury initiated its first greenfield CO2 EOR development in the McComb Field in Mississippi.
The U.S. Treasury enacted the original 45Q tax credit program, with incentives to capture CO2, providing $10/metric ton for CO2 used in EOR. Based on the emissions in the US Gulf Coast, Denbury began the construction of the Green Pipeline, a 24-inch, 16 MMTPA-capacity, 320-mile pipeline, with the intent to transport industrial-sourced CO2 to EOR fields and to permanent storage.
Denbury began transporting the first industrial CO2 on the Green Pipeline.
In January 2021, the U.S. Treasury amended and expanded the 45Q tax credit, providing a $35/ton incentive for CO2 capture and use in EOR operations and $50/ton incentive for captured CO2 that is permanently stored.
Denbury began executing agreements for potential permanent storage capacity (now totaling in excess of 1.5 billion metric tons) as well as agreements with customers to transport and store industrial-captured CO2 in EOR or in direct sequestration sites.
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