For enhancing oil recovery, Whiting Petroleum Corp. signed a 15-year agreement to buy carbon dioxide from a planned Permian basin coal-fueled power plant at Penwell, Texas, near Odessa.
The sellers of the CO2 are Summit Power Group LLC and Blue Strategies LLC. Summit expects to start construction of the plant by yearend and commence operations in late 2014 or early 2015.
Whiting plans to purchase 80 MMcfd of compressed the CO2 during the first 5 years of the plant's operation, which is about 60% of the CO2 that the plant will capture. After 5 years, Whiting will gradually buy less CO2 although it has an option to extend purchases.Data point:
- In the Permian basin fields, each 6 Mcf of CO2 injected can recover about 1 bbl of oil, according to the companies selling the CO2.
I know it's because I am always looking through my oily-covered glasses, but it certainly seems if this administration a) had the optimism of Ronald Reagan; b) believed in America's greatness; c) understood the importance of the private sector; d) embraced big business, including Big Oil, Big Pharma and all the rest; e) really did fund shovel-ready jobs; f) really did have a balanced approach when it came to environmental protection; the US would not have the problems we are experiencing today, nor would our credit rating have been downgraded.
But I digress. But it seems all the positive news these days is coming out of the US energy business; here's another great story for the folks who live in Ohio -- Chesapeake is beginning to ramp up activity in the Utica. Tell me that Ohioans shouldn't be getting excited once they start seeing those jobs. Hey, even some jobs cleaning up industrial waste, some planned, some not planned, but all part of industry.
Feel free to comment on Whiting's news story but I generally don't get into discussions revolving around my rants and raves.
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