Oil & Gas
In This Section
Responsibly Meeting the World’s Energy Needs
Denbury is not your ordinary oil and gas producer. Our strategic focus on Enhanced Oil Recovery (“EOR”) and the emerging Carbon Capture, Utilization, and Storage (“CCUS”) industry sets us apart as a company committed to making a positive impact on our world, while also creating substantial value for our shareholders.
Our operations are based in the Gulf Coast and Rocky Mountain regions, with 202.2 million barrels of oil equivalent (“MMBOE”) in proved reserves as of December 31, 2022, of which 97% is oil. Our portfolio of current CO2 EOR projects provides us significant oil production today, with reserve growth potential for the future. Denbury has already achieved Net Negative Scope 1 and Scope 2 carbon emissions, and our goal is to reach Net Zero for our Scope 1, Scope 2 and Scope 3 CO2 emissions by 2030.
We target specific areas where we either have, or believe we can create, a competitive advantage as a result of our ownership or use of CO2 reserves, oil fields and CO2 infrastructure. Our goals include increasing the value of our assets through applying our technical expertise in CO2 tertiary recovery, together with a combination of other exploration, development, exploitation and marketing skills and practices, seeking to expand the use of industrial-sourced CO2 in our tertiary recovery operations, with an ultimate objective of producing oil with a negative carbon footprint. We are continuously pursuing acquisitions of fields that are a strategic fit for our core EOR focus and proximity to our existing infrastructure.
Denbury’s operations are anchored in the Gulf Coast, where we have been conducting and expanding EOR operations since 1999. In addition to currently producing EOR fields, we also have future tertiary development opportunities in the Gulf Coast. This region is home to the heart of our CO2 pipeline network, located in the heavy emissions corridor.
Denbury has been operating in the Rocky Mountain region since 2010. Our assets in this region include currently producing waterflood (secondary recovery) and EOR (tertiary recovery) fields, along with substantial new tertiary flood development. All of our Rocky Mountain EOR operations utilize CO2 captured from industrial sources which would otherwise be released into the atmosphere. Our Cedar Creek Anticline (“CCA”) Field is the largest EOR project we have ever executed on, and tertiary production is estimated to start up in the second half of 2023.
Blue Oil (Carbon-Negative Oil)
Utilizing CO2 in EOR operations is a critical element to the successful development of the CCUS industry in the U.S. In our EOR operations, we are injecting more CO2 to produce each barrel of oil than that oil barrel’s combined Scope 1, 2, and 3 emissions. These barrels are carbon negative when we utilize industrial sourced CO2, and this carbon-negative or Blue Oil is an important energy transition fuel. Approximately 28% of our total production is Blue Oil, and we anticipate the scale of our Blue Oil operations to increase substantially in 2023 as the CCA project comes online. Earlier in 2022, we received third-party verification of the carbon-negative balance of the oil barrels in our West Hastings and Bell Creek fields, and we are pursuing third-party verification on all of our fields that utilize industrial-sourced CO2. Ultimately, we believe that our Blue Oil is some of the most environmentally-friendly oil produced on the globe today.