National Enhanced Oil Recovery Initiative

The National Enhanced Oil Recovery Initiative [1] (NEORI) released recommendations on February 28, 2012, to boost domestic oil production and reduce carbon dioxide (CO₂) emissions through the expanded use of enhanced oil recovery (EOR). NEORI is a coalition of industry, state, environmental and labor leaders convened by the Center for Climate and Energy Solutions and the Great Plains Institute [2]. Senator Kent Conrad (D-ND) and Congressman Mike Conaway (R-TX) welcomed the group’s recommendations at an event on Capitol Hill. Sens. Max Baucus (D-MT), Kent Conrad (D-ND), John Hoeven (R-ND), Richard Lugar (R-IN), and Congressmen Mike Conaway (R-TX) and Rick Berg (R-ND) released written statements of support [3].

In CO₂-enhanced oil recovery (CO₂-EOR), oil producers inject CO₂ into wells to draw more oil to the surface. The practice helps sustain production in otherwise declining oil fields and currently accounts for 6 percent of U.S. oil production, but is constrained by limited supplies of CO₂. NEORI recommends state and federal incentives to encourage the capture of CO₂ from industrial and power facilities, which otherwise would go into the atmosphere, for use in enhanced oil recovery.

A proposed federal tax credit would quadruple U.S. oil production from EOR, to 400 million barrels a year, while reducing CO₂ emissions by 4 billion tons over the next 40 years. The program would pay for itself within 10 years through increased federal revenues generated by boosting domestic oil production, with an estimated net return of $100 billion over 40 years. The incentive also would reduce the trade deficit by saving the United States about $610 billion in expenditures on imported oil over the same period.

List of Participants [4] in the Nationatl Enhanced Oil Recovery (NEORI) Initiative

NEORI Recommendations

NEORI Report [5]
NEORI 45Q Recommendations [6]

NEORI News

NEORI praised [7] the introduction of bipartisan legislation [8] to encourage American oil production using carbon dioxide. The bill adopts NEORI’s recommendations to modify the existing Section 45Q Tax Credit for Carbon Dioxide Sequestration. It was introduced Sept. 20 by Sen Kent Conrad [9] (D-ND) with Sens. Mike Enzi (R-WY) and Jay Rockefeller (D-WV).
- C2ES blog: An Energy Solution with True Bipartisan Support [10]
Bloomberg editors [11] mention NEORI recommendations in context of 2012 elections
Eileen Claussen and Judi Greenwald have an in-depth conversation (read parts one [12] and two [13]) on the promise of carbon capture, utilization, and storage and CO_2-EOR
Judi Greenwald blogs [14] from the CCUS Conference
Judi Greenwald's Power Point presentation [15] from the Permian Basin CCUS Forum [16]
Bloomberg editors [17] endorse NEORI's production tax credit recommendations

NEORI Recommendations Release – February 28, 2012

Press Release [18] Announcing NEORI Recommendations
Statements of Support from Sens. Max Baucus (D-MT) [19], Kent Conrad (D-ND) [20], John Hoeven (R-ND) [21], Richard Lugar (R-IN) [22] and Congressmen K. Michael Conaway (R-TX) [23]and Rick Berg (R-ND) [24]
Statements of Support from Texas State Representative Myra Crownover [25], Vice-Chair, Energy Resources Committee (R) and Doug Scott [26], Chairman, Illinois Commerce Commission
The Center's Judi Greenwald and Robert Baugh of AFL-CIO discuss NEORI's recommendations on E&E TV [27].

NEORI Launch – July 17, 2011

Press Release [28] Announcing the National Enhanced Oil Recovery Initiative
Statements of Support from Sens. John Barrasso (R-WY) [29] and Richard Lugar (R-IN) [30]
Sens. Kent Conrad (D-ND) [31], John Hoeven (R-ND), and Richard Lugar (R-IN) [32] issue press releases on the EOR Initiative.
The Center's Judi Greenwald and Bob Mannes of Core Energy discuss NEORI on E&E TV [33].

Additional Resources

C2ES Climate Techbook - Carbon Capture and Storage [34]
C2ES U.S. State Policy Map - Financial Incentives for CCS [35]
Greenhouse Gas Accounting Framework for Carbon Capture and Storage Projects [36]
Carbon Dioxide Enhanced Oil Recovery (CO_2-EOR): Factors Involved in Adding Carbon Capture, Utilization and Storage (CCUS) to Enhanced Oil Recovery [37]

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