GOPideas... ideas done right

The same carbon dioxide (CO2) that is being blamed for climate change can be used to produce more energy --- and innovative companies are doing just that, with the help of state and local governments. CO2 can be pumped into oil wells that are near the end of their “expected” life to stimulate additional oil production, thus reducing our dependence on foreign oil and creating American wealth --- all while reducing pollution.

The rationale behind using CO2 to increase oil production is based on the geology of oil production and the abundance of coal. When an oil well is drilled and hits a “pay zone” (the rocks that contain oil) natural pressure exists that push the oil to the well bore and out of the ground (think of a bottle of soda --- when you shake it up, it still looks stable --- but then take off the cap). Over time, the pressure is relieved and the amount of oil exiting the well decreases. This is the primary recovery stage. The secondary recovery stage begins when a stimulant is added, specifically, pumps to bring the oil to the surface or other substances are injected into the well to increase the pressure, pushing more oil to the wellbore. Common secondary recovery techniques include waterflooding --- injecting water into the well --- and this is why many oil wells need special facilities to separate oil from water. This will cause a rise in production (normally not to original levels), but this production will also decline over time.

The final stage of the process is tertiary recovery --- the first two stages focused on pushing oil that was moving freely in a resevior to the wellbore, tertiary recovery focuses on getting more oil moving freely. (Oil does not form “pools” underground, instead oil is trapped in the holes of porous rocks. Oil is viscous, so it will stick to rocks, making it difficult to extract. (Normally, only 30-35% of oil in the formation is extracted before the well is shut-in --- the remaining oil is too difficult to extract). Many substances can be used to decrease the viscosity of the oil, CO2 being one of the primary ones. See how the process works.

Denbury Resources is the industry leader in using CO2 to extract additional oil from wells thought to be at the end of their natural life. The company’s original source of CO2 was Jackson Dome, an underground formation of rocks that contained CO2. Denbury drilled wells into the formation, extracted the CO2 into a pipeline, transported the CO2 to oilfields and then injected it into those fields.

However the full benefits to all stakeholders are discussed here --- note the presence of corporate, academic and environmental groups all advocating for using CO2 to produce oil. Mississippi and Governor Haley Barbour are going even further: Mississippi power is building a coal-fired plant with carbon sequestration technology --- and the CO2 that would normally be emitted as a pollutant is going to be captured and used by Denbury to extract more oil. Thus, innovation breeds benefits for all: more power in Mississippi, more American oil and a cleaner planet --- all using traditional means of power generation and oil production.

(Ed note: Denbury is also planning on building additional pipelines that will allow power plants and factories to capture their CO2 and sell it to Denbury --- turning a cost center (CO2 as pollution) into a revenue opportunity (CO2 for oil fields). See the description of their “green pipeline” here: http://www.denbury.com/greenpipelineproject.htm