CO2 Recovery Could Unlock Billions of Barrels in Permian Basin

A new report from the University of Houston estimates that enhanced oil recovery using carbon dioxide could unlock an additional 137 billion barrels of oil, with the Permian Basin positioned to play a huge role. The report's authors, Chuck McConnell and Zhiyuan Li, point out that Texas and the Gulf Coast hold more than half of the resources favorable for carbon dioxide-enhanced recovery.

McConnell, executive director of the university's Center for Carbon Management in Energy, notes that CO2 is not a waste but an important part of the energy value chain. He highlights the opportunity presented by projects coming to West Texas that produce CO2, which could be captured and used in enhanced oil recovery projects.

The report examines the potential for carbon dioxide-enhanced oil recovery (CO2-EOR) to tap vast amounts of oil left behind in existing U.S. fields while permanently storing carbon dioxide underground. Of the estimated 624 billion barrels originally contained in conventional U.S. oil reservoirs, about 434 billion remain underground, including roughly 20 billion barrels of proven reserves.

The report estimates that 137 billion barrels could be technically recoverable through CO2-EOR, with Texas positioned to play a major role. The area has the infrastructure, natural gas supplies, favorable geology and a lot of oil in the ground, making it an ideal location for redevelopment efforts using CO2-EOR.