Underground CO2 credits planned
The Carbon Council of Oklahoma (CCO2) assisted the Oklahoma Conservation Commission in establishing a procedure for issuing carbon credits for underground injection of carbon dioxide (CO2) and other emission reduction activities. As a result, the State of Oklahoma becomes the first state in the union to formally authorize issuance of carbon credits for underground injection of CO2.
The action by the government authorizes the Oklahoma Conservation Commission to issue carbon credits for specific qualifying forestry and agricultural activities, such as no-till farming. In addition, carbon credits can now be issued for underground injection of man-made carbon dioxide.
Oklahoma became the nation’s leader in continuously injecting anthropogenic (man-made) CO2 for enhanced oil recovery (EOR) in the early 1980s. Since 1982, carbon dioxide from Enid has been captured, compressed, and piped to southern Oklahoma, where the CO2 is injected into mature oil fields to produce more Oklahoma crude.
“Even though the price of oil has recently skyrocketed, only a handful of other fields have been flooded with man-made CO2 in Oklahoma in the past 25 years,” said Keith Tracy, founder and executive director of the Carbon Council of Oklahoma (CCO2). “These carbon credits will help make many more CO2-EOR projects economical in this state.”
The Carbon Council of Oklahoma (CCO2) points to federal government estimates showing that Oklahoma has between 9 and 20 billion additional barrels of oil reserves that could be produced by injecting carbon dioxide into depleted reservoirs.
“Hundreds of billions of tons of carbon dioxide will need to be captured and injected so we can attempt to produce all of that Oklahoma oil,” Tracy said.
“Environmentally-conscious people are trying to find a home for carbon dioxide emissions. CCO2 is promoting the capture, compression and transportation of that man-made carbon dioxide in Oklahoma. Injecting the CO2 underground to produce more Oklahoma oil secures local jobs, increases the tax base, and helps sustain our economy. Otherwise, that 100-200 billion dollar market will be left untapped, and imported foreign oil will continue to push up prices at the pump,” Tracy said.
For additional information on injecting CO2 for enhanced oil recovery and associated carbon credits, or the Carbon Council of Oklahoma, contact Tracy at keith@cco2.org.
Carbon Council of Oklahoma (CCO2) is a non-profit trade association promoting the economic development of the carbon industry in Oklahoma by encouraging carbon capture and storage of CO2 for enhanced oil recovery (EOR), assisting government officials in developing proper CO2-related policies, aiding EOR operators in obtaining carbon credits, and facilitating educational efforts regarding carbon dioxide.