Occidental Petroleum and White Energy to Study Feasibility of Capturing CO2 for Use in Enhanced Oil Recovery Operations
June 19 2018 - 9:00AM
Business Wire
Occidental Petroleum Corporation (NYSE:OXY) and White Energy
announced today that they have agreed to evaluate the economic
feasibility of a carbon capture, utilization and storage project.
The project would capture carbon dioxide (CO2) at White Energy’s
ethanol facilities in Hereford and Plainview, Texas, and transport
it to the Permian Basin, where Occidental would use it in its
enhanced oil recovery (EOR) operations. Occidental injects
CO2 into oil reservoirs, causing trapped oil to flow more
easily and efficiently.
“The collaboration between Occidental and White Energy is a
direct result of the passage of the FUTURE Act,” said Occidental
Petroleum President and CEO Vicki Hollub. “Carbon capture
technologies have the potential to play a critical role in reducing
global emissions, and this project is an important first step in
cross-industry collaboration to make these efforts economic,
practicable and scalable.”
“White Energy is committed to the development of clean,
renewable fuels. This project would enable us to capture the CO2
produced at our plants and redeploy it in an environmentally
responsible way,” said White Energy President and CEO Greg
Thompson. “We’re excited about partnering with a diversified energy
company like Occidental Petroleum. This project has the potential
to provide strong environmental and economic benefits for everyone
involved.”
The engineering study, expected to last six months, will examine
the costs of building a carbon capture facility. If Occidental and
White Energy determine the project is economically feasible,
operations could begin as soon as 2021. The carbon capture project
would be designed to be eligible for 45Q tax credits and
California’s Low Carbon Fuel Standard Carbon Capture and Storage
protocol, both currently in development, demonstrating that these
important incentives result in near-term investment, reduced CO2
emissions and jobs.
Occidental is an industry leader in applying CO2 EOR technology.
This technology can increase oil recovery by 10 to 25 percent in
the fields where it is employed, while at the same time permanently
sequestering the CO2 in the reservoir. The U.S. Environmental
Protection Agency (EPA) approved Occidental’s two Monitoring,
Reporting and Verification (MRV) plans for CO2 EOR fields in its
Permian Basin operations. These plans, which were the first-ever
approved by EPA, demonstrate that the captured CO2 is safely and
permanently stored and establish a framework to quantify the amount
of CO2 sequestered.
The FUTURE Act, which became law in February 2018, supports the
conversion of CO2 emissions from industrial sources, including
ethanol and coal- or gas-fired power plants, to a commodity product
that can be stored in a secure geological formation through
EOR.
About Occidental Petroleum
Occidental Petroleum Corporation is an international oil and gas
exploration and production company with operations in the United
States, Middle East and Latin America. Headquartered in Houston,
Occidental is one of the largest U.S. oil and gas companies, based
on equity market capitalization. Occidental’s midstream and
marketing segment gathers, processes, transports, stores, purchases
and markets hydrocarbons and other commodities. The company’s
wholly owned subsidiary OxyChem manufactures and markets basic
chemicals and vinyls. Occidental posts or provides links to
important information on its website at www.oxy.com.
About White Energy
White Energy, headquartered in Plano, Texas, is fueling
America’s investment in renewable energy. It is one of the nation’s
leading producers of biofuels, animal feed and food ingredients,
with the capacity to produce approximately 300 million gallons of
ethanol per year. White Energy owns and operates state-of-the-art
grain processing facilities in Texas and Kansas. Learn more at
www.white-energy.com/.
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version on businesswire.com: https://www.businesswire.com/news/home/20180619005792/en/
White EnergyRobert Brown,
919-810-1901robert@rbpr.comorOccidental PetroleumMedia:Melissa E.
Schoeb, 713-366-5615melissa_schoeb@oxy.comorInvestors:Jeff Alvarez,
713-215-7864jeff_alvarez@oxy.com
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