Enhanced Oil Recovery Industry – Likely to Become a Friend of Coal-Powered Industries
On 31.12.11, In Legal Industry, by Blake Houser
December 31, 2011
The United States and China, two of the largest consumers of fuel in the world, are hoping that answers to limiting the emissions that contribute to global warming may be found in the past, considering that projects meant to capture the carbon emissions of industries that burn coal and store them underground have all failed.
Policy makers, coal miners and power generators have put their faith in projects that will pump carbon dioxide directly into the ground the moment that they are emitted by coal fired power plants. However, the said project has failed in the three locations where the projects were being conducted, namely, Germany, Scotland and West Virginia. The reasons for the collapse of the projects were expensive technology cost and the bleak possibility that the world would embrace the high price for lessening the emission of greenhouse gases.
For those who are looking for means to diminish coal emissions, one industry was able to profit at being able to sock carbon dioxide emissions, and that is the enhanced oil recovery industry.
Denbury Resources and Kinder Morgan, utilize carbon dioxide as a means to bring out crude. They pipe the gas into the oil fields, where traditional drilling could not reach.
Natural carbon dioxide sources may run dry, thereby many companies like the Denbury and Morgan are looking into industrial sources for the gas. Coal-burning companies may find it better to link with this industry rather than looking for their own means to capture and store carbon dioxide.