Dec. 02–Several changes impacting carbon capture, utilization and storage have occurred in the 12 months since the 2017 CO2 EOR Conference.
Those changes will be discussed at this year’s conference, set for Monday through Thursday at the Horseshoe. Topics include advancements in developing residual oil zones and changes to the 45Q federal tax credit for developing carbon capture and storage projects.
“The 45Q is a big deal,” said Steve Melzer, director of the annual conference. “Our Tuesday seminar is dedicated to that” and will feature speakers who are expert in the tax credit.
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“There are a lot of unknowns” about the changes to the tax credit, such as how to qualify for the credits and requirements for monitoring carbon capture and storage, he said.
The opening session will focus on carbon management and include an overall update on the residual oil zones, enhanced oil recovery using CO2 and storing CO2. The impact of the mid-term elections on government policies and regulations will also be a topic. Also, a status report will be represented on international activities.
“There’s foreign interest, too,” said Melzer, noting that several international visitors will be attending the conference.
The Wednesday session will focus on the rapidly advancing Horizonal San Andres play, in which 30 operators are active in a six-county area. The morning field trip will be to Kinder-Morgan’s greenfield enhanced oil recovery project in a residual oil zone, the world’s first such project.
Melzer said the Horizontal San Andres has been overshadowed by the Wolfcamp play but could turn into another huge development area for the Permian Basin. He said that in six years, production has gone from zero to more than 37,000 barrels a day today from 450 horizontal wells in the San Andres and Yeso formations.
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“It’s an impressive play that doesn’t get a lot of attention because of the shales,” he said.
The final day of the conference will offer a variety of case histories on CO2-EOR projects, not only in the Permian Basin and other basins in the Lower 48 states but Canada as well.
Melzer said the focus remains on capturing and utilizing CO2.
“We’re pitching that it needs to come to the Permian Basin,” he said. “We could use four or five McElmo Domes” — the carbon dioxide field in Colorado. “We don’t have enough CO2.
“if I were on the capture end of the business, an ethanol plant or an even bigger plant, I’d want to go where I knew the CO2 would be in demand,” Melzer said.
Mella McEwen is the Oil Editor and covers the latest business and energy news. You can read more from her here. |email@example.com|
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